Answer:
Debit cash for $100,000
Credit cash for $100,000
Explanation:
It should be noted that on September 1, the only transaction that occurred is the receipt of cash by Vicario, Inc. from First National Bank and no interest expenses has been accrued.
Based on this therefore, the journal entry for Vicario on September 1 will appear as follows:
Date Name of Accounts DR ($) CR ($)
Sept. 1 Cash 100,000
Notes payable 100,000
(To record borrowing from First National Bank.)
sheldon has a home valued at 108000 and an outstanding mortgage of 70000. if his lender is willing to provide a home equity loan of up to 80% of market value, howmuch could shledon borrow using a home equity loan
Answer: $16,400
Explanation:
From the question, we are informed that Sheldon has a home valued at 108000 and an outstanding mortgage of 70000 and that his lender is willing to provide a home equity loan of up to 80% of market value.
Since the lender will provide the home equity loan of up to 80%. This will be:
= 80% × $108,000
= 0.8 × $108,000
= $86,400
We are also informed that Sheldon has $70,000 outstanding mortgage. Therefore, the amount that Sheldon can borrow by using the home equity loan will be:
= $86,400 - $70,000
= $16,400
Preparing a Schedule of Cash Collections on Accounts Receivable
Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next five months, the following sales billings are expected:
May $84000
June 100800
July 77000
August 86100
September 89000
Required:
Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September
Answer:
Kailua and Company
Schedule of Cash Collections
August September
Cash collections from June $25,200 $0
Cash collections from July $38,500 $19,250
Cash collections from August $17,220 $43,050
Cash collections from September $0 $17,800
Total cash collections $80,920 $80,100
I suppose that 5% of the billings are uncollectible since 20% + 50% + 25% = 95%.
You are trying to decide how much to save for retirement. Assume you plan to save $ 6,500 per year with the first investment made one year from now. You think you can earn 6.5% per year on your investments and you plan to retire in 42 years, immediately after making your last $6,500 investment.
Required:
a. How much will you have in your retirement account on the day you retire?
b. If, instead of investing $ 6,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be?
c. If you hope to live for 26 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 26th withdrawal (assume your savings will continue to earn 11.0% in retirement)?
Answer:
a. How much will you have in your retirement account on the day you retire?
we must calculate the future value of an annuity:
future value = annuity payment x {[(1 + r)ⁿ - 1] / r} = $6,500 x {[(1 + 0.065)⁴² - 1] / 0.065} = $1,308,262.21
b. If, instead of investing $ 6,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be?
future value of lump sum = lump sum x (1 + r)ⁿ
$1,308,262.21 = lump sum x (1 + 0.065)⁴²
lump sum = $1,308,262.21 / (1 + 0.065)⁴² = $1,308,262.21 / 14.08262214 = $92,899.05
c. If you hope to live for 26 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 26th withdrawal (assume your savings will continue to earn 11.0% in retirement)?
present value of an annuity = annuity payment x {[1 - 1/(1 + r)ⁿ ] / r}
annuity payment = $1,308,262.21 / {[1 - 1/(1 + r)ⁿ ] / r} = $1,308,262.21 / {[1 - 1/(1 + 0.11)²⁶ ] / 0.11} = $1,308,262.21 / 8.48806 = $154,129.74
Christina will receive annuity payments of $1,200 a year for five years, with the first payment occurring at Year 4. What is the value of this annuity to her today at a discount rate of 7.25 percent
Answer:
The annuity is worth $3,693.99 today.
Explanation:
Giving the following information:
Cash flow= $1,200
Number of years= 5
Waiting years= 4
Discount rate= 7.25%
First, we will determine the future value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {1,200*[(1.0725^5) - 1]} / 0.0725
FV= $6,935.40
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 6,935.40/ (1.0725^9)
PV= $3,693.99
A company's board of directors votes to declare a cash dividend of $1.10 per share of common stock. The company has 22,000 shares authorized, 17,000 issued, and 16,500 shares outstanding. The total amount of the cash dividend is:
Answer:
$18,150
Explanation:
Calculation for the total amount of the cash dividend
Since A company's board of directors has votes to declare the cash dividend of $1.10 per share of common stock, this means we have to multiply the cash dividend per share of common stock by the shares outstanding which is $16,500
Using this formula
Cash dividend per share of common stock * Shares outstanding
Let Plug in the formula
$1.10*16,500
=$18,150
Therefore the total amount of the cash dividend will be $18,150
Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next period. Its expected contribution margin ratio is 69%.
Required:1. Compute the amount of total dollar sales.2. Compute the amount of total variable costs.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Fixed costs= $259,000
Pretax income= $493,100
Contribution margin ratio= 0.69
The contribution margin ratio is the percentage of sales remaining after deducting all variable components.
First, we need to calculate the total contribution margin:
Total contribution margin= pretax income + fixed costs
Total contribution margin= 493,100 + 259,000= $752,100
Now, total sales:
Total sales= total contribution margin/contribution margin ratio
Total sales= 752,100/0.69= $1,090,000
Finally, total variable costs:
Total variable costs= total sales - total contribution margin
Total variable costs= 1,090,000 - 752,100= $337,900
"An 8% corporate bond with 20 years left to maturity is currently trading at 120. The bond is callable in 4 years at 104. If a client buys the bond and then the issuer calls it in 4 years, the yield to call will be:"
Answer:
The yield to call will be 6%.
Explanation:
Yield to call (YTC) refers to the return a bondholder will receive in the event that he holds the bond until the call date which is sometime before the maturity date.
The YTC can be calculated using the following formula:
YTC = (C + (CP - P) / t) / ((CP + P) / 2) .......................... (1)
Where:
YTC = YTW = yield to call or yield to worst = ?
C = Annual coupon interest payment = Bond interest rate * Bond face value = 8% * $100 = $8.00
CP = Callable price of the bond = $104
P = Current price of the bond = $120
t = time in years remaining until the call date = 20 - 4 = 16 years
Substituting the values into equation (1), we have:
YTC = ($8 + ($104 - $120) / 16) / (($104 + $120) / 2)
YTC = $7 / $112 = 0.06, or 6%.
Therefore, the yield to call will be 6%.
LCD produces screens for use in various smartphones. The company reports the following information at December 31. LCD began operations on January 31 earlier that same year
Work in Process Wages Payable Manufacturing Finished Raw
Inventory Overhead Goods Inventory material
28,000 128,000 80,000 80,000 6,500 46,000 128,000 113,000 58,000 34,500
63,000 17,000
Balance
46,000 0 37,000
Requirement 1. What is the cost of direct materials used?
The cost of direct materials used is $ _ _ _
Requirement 2. What is the cost of indirect materials used?
The cost of indirect materials used is $ _ _ _
Requirement 3. What is the cost of direct labor?
The cost of direct labor is $ _ _ _
Requirement 4. What is the cost of indirect labor?
The cost of indirect labor is $ _ _ _
Requirement 5. What is the cost of goods manufactured?
The cost of goods manufactured is $ _ _ _
Requirement 6. What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)?
Requirement 7. What is the actual manufacturing overhead?
The actual manufacturing overhead is $ _ _ _
Requirement 8. How much manufacturing overhead was allocated to jobs?
Allocated manufacturing overhead is $ _ _ _
Requirement 9. What is the predetermined manufacturing overhead rate as a percentage of direct labor cost?
Identify the formula and then compute the percentage. (Round your answer to the nearest whole percent.)
_ _ _ / _ _ _ = Predetermined overhead rate
_ _ _ / _ _ _ = _ _ _%
Requirement 10. Is manufacturing overhead underallocated or overallocated? By how much?
Identify the formula and then compute the underallocated or overallocated overhead. (Use parentheses or a minus sign for overallocated overhead.)
Answer:
Below are the original entry of the question in tabular format
Dr. Work in Process Cr.
28,000 | 128,000
63,000 |
46,000
Dr. Wages Payable Cr.
80,000 | 80,000
0
Dr. Manufacturing overhead Cr.
6,500 | 46,000
17,000 |
37,000
Dr. Finished Goods Inventory Cr.
128,000 | 113,000
Dr. Raw material Inventory Cr.
58,000 | 34,500
1) The cost of direct materials used is $28,000
2) The cost of indirect materials used is $6,500
3) The cost of direct labor is $63,000
4) The cost of indirect labor is $17,000
5) The cost of goods manufactured is $128,000
6) Cost of goods sold-unadjusted is $113,000
7) The actual manufacturing overhead is $60,500
8) Allocated manufacturing overhead to job is $46,000
9) Predetermined manufacturing overhead rate = Manufacturing overhead / Direct labor cost
=$46,000/$63,000
=0.7301
=73%
10) Actual manufacturing overhead - Allocated manufacturing overhead =
= $60,500 - $46,000
= $14,500
Manufacturing overhead is under allocated by $14,500
Communication skills refer to a manager’s ability to effectively convey ideas and information to others and to effectively receive ideas and information from others. This exercise focuses on communication skills as they involve deciding how to best convey information to others.Exercise BackgroundAssume that you are a middle manager for a large electronics firm. People in your organization generally use one of three methods to communicate with one another. One common method is verbal communication, either face-to-face or by telephone. Surprisingly, people also still use a lot of written communication in the form of memos, reports, letters, and other documentation. And, of course, there is also a lot of digital communication such as email and direct messaging.During a typical day you receive and send a variety of messages and other communication, sometimes using only a single method of communication but often using some combination of methods. The questions that follow ask you to select one or more methods that would be most effective for communicating specific kinds of information.Use your communication skills to answer the following questions.1. You need to reprimand a staff assistant who has been coming in to work late for the last several days. Which of these options would most likely be both efficient and effective? Check all that apply.Send an emailRegardless of what you do first, follow-up with a written reprimand to the individual’s personnel fileUse social mediaReprimand the individual in public so as to deter others from being lateSchedule a meeting to discuss the problem2. You need to schedule a meeting with your boss. Which of these options would most likely be both efficient and effective? Check all that apply.Call the boss’s assistant and request a meetingEmail the boss’s assistant and request a meetingWrite a formal letter to your boss asking for a meeting3. You need to inform a supplier that your company will soon be cutting back on its purchases because you plan to shift more of your business to a supplier offering lower prices. Which of these options would most likely be both efficient and effective? Check all that apply.A telephone call to the supplier to explain the situationAn email to the supplier to explain the situationA letter to the supplier to explain the situationA personal meeting with the supplier to explain the situation
Answer:
Communication Skills:
1. Reprimanding a staff assistant for late-coming:
Schedule a meeting to discuss the problem
2. Scheduling a meeting with your boss:
Call the boss's assistant and request a meeting.
3. Informing a supplier that your company will soon be cutting back on its purchases because you plan to shift more of your business to suppliers offering lower prices:
A telephone call to the supplier to explain the situation
An email to the supplier to explain the situation
Explanation:
Communication is a two-way traffic. The central purpose is to enhance understanding. In reprimanding a staff assistant, I shall first understand the problem he or she is facing. Full understanding of a problem generates workable solutions. Responding to problems without some created solution mechanisms will not ensure lasting relationships. The main purpose in any communication situation is to achieve understanding of the challenges being faced by the other party, whether with my assistant, my boss's assistant, or my company's supplier.
An auto parts shop carries an oil filter for trucks. The annual demand for the oil filter is roughly 1200 units. The ordering cost per order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per year. The lead time is usually 12 working days. Determine the annual total relevant, including ordering and carrying, cost. g
Answer:
$480
Explanation:
The first step would be to calculate the Economic order quantity. The formula for calculating the economic order quantity is as under:
Step 1: Find Economic Order Quantity
EOQ = Square-root (2* Annual demand * Ordering cost per order / Holding cost per unit per year)
Here
Annual demand is 1200 units
Ordering cost per order is $80
Holding cost per unit per year is $1.2 and
By putting values, we have:
EOQ = Square-root (2 * 1200 Units * $80 / $1.2)
= 400 Units
Step 2: Find Total ordering cost
Now, we will find Total ordering cost by using the following equation:
Total Ordering Cost = Number of Orders * Ordering cost per order
Here
Ordering cost per order is $80
Number of orders = Annual Demand / EOQ = 1200 units / 400 units
Number of orders = 3 orders per year
By putting values in the above equation, we have:
Total Ordering Cost = 3 * 80 = $240
Step 3: Find Annual Carrying Cost
By using the following formula we will find Annual Carrying Cost
Annual Carrying Cost = (EOQ ÷ 2) * Holding cost per unit per year
By putting values we have:
Annual Carrying Cost = (400 ÷ 2) * $1.2 = $240
Step 4: Now we will find Total Annual Inventory Cost by using the following equation:
Total Annual Inventory Cost = Annual ordering cost (Step 2) + Annual carrying cost (Step 3)
By putting values, we have:
Total Annual Inventory Cost = $240 + $240 = $480
A firm issues six-month commercial paper with $500,000 face value and receives $488,000. What is the EAR the firm is paying for these funds? Group of answer choices
Answer:
5.03%
Explanation:
In order to compute the effective annual rate on the commercial paper,we need to first of all establish the interest rate in the six-month instrument
interest=($500,000-$488,000)/$488,000=2.46%
Effective annual rate=(1+2.46% /6)^12-1
By dividing by six, we are reducing the rate to monthly terms
By raising to the power of 12 we are converting from a monthly rate to yearly rate
Effective annual rate=5.03%
Quality Move Company made the following expenditures on one of its delivery trucks:
Mar. 20 Replaced the transmission at a cost of $1,970.
June 11 Paid $1,455 for installation of a hydraulic lift.
Nov. 30 Paid $56 to change the oil and air filter.
Prepare journal entries for each expenditure.
Journal
Accounting Equation
Date Description Post. Ref. Debit Credit Assets Liabilities Equity
1
2
3
4
5
6
Answer with its Explanation:
On 20th of March, The replacement of transmission is not the maintenance cost as it is the replacement of asset within the delivery truck, hence it must be capitalized.
The Double entry would be:
Dr Delivery Truck 1,970
Cr Cash $1,970
On 11th of June, the installation of hydraulic lift is an addition of upgraded asset in the delivery truck hence it must be capitalized.
The Double entry would be:
Dr Delivery Truck $1,455
Cr Cash $1,455
On 30th of November, the changing of oil and air filer is repair and maintenance cost and hence must be treated as under:
Dr Repairs and Maintenance Expense $56
Cr Cash $56
There are several ways that governments can increase or decrease the money supply. Match the descriptions below with the corresponding policy tool. It is possible that a description does not apply to any of the terms.
1. Open Market Operations
2. Reserve Requirement
3. Discount Rate
4. Quantitative Easing
A. A government printing more currency.
B. An increase in government spending.
C. An increase in the interest rate that a central bank charges commercial banks for loans.
D. A central bank purchasing existing bonds.
E. An increase in the percentage of deposits that banks must keep on hand.
F. A central bank purchasing a large quantity of longer-term Treasury bonds.
Answer:
1. Open Market Operations - A central bank purchasing existing bonds.
When the central bank purchases existing bonds, this is an expansionary monetary policy because by buying bonds they are putting money back into people's hands by paying them for the bonds.
2. Reserve Requirement - An increase in the percentage of deposits that banks must keep on hand.
When the Central bank increases the reserve requirement, it means that banks should keep a larger percentage of deposits kept with them. This is a contractionary Monetary Policy because the banks will have less money to loan out to the public.
3. Discount Rate - An increase in the interest rate that a central bank charges commercial banks for loans.
The Central bank loans money to commercial banks using the discount rate. Should they increase this rate, banks would find it more expensive to borrow from them and reduce borrowing. This means that they would then not have a lot of money to loan out making this a contractionary monetary policy.
4. Quantitative Easing - A central bank purchasing a large quantity of longer-term Treasury bonds.
Quantitative Easing refers to the Government buying a large quantity of longer-term treasury bonds to increase money supply so that rates would fall and people can borrow more money to boost the economy. This policy is not usually done and indeed is considered unconventional.
If an investment yields 6% at the same time as inflation as measured by the CPI increases by 6%, the inflation-adjusted rate of return is:
Answer: 0%
Explanation:
The inflation-adjusted rate of return removes the effects of inflation from a return to find out the real return that an investment made.
Simple formula is;
= Nominal return - Inflation rate
= 6% - 6%
= 0%
The real rate of return is 0% meaning that if inflation is taken into account, the investment did not yield anything.
The Bridal Gift Shop, Inc. has 11 units in ending merchandise inventory on December 31. The units were purchased in November for $150 each. The price lists from suppliers indicate the current replacement cost of the item to be $152 each. What would be the amount reported as Merchandise Inventory on the balance sheet?
A $1,650
B. $3.322
C. $1,672
D. $302
Answer:
A $1,650
Explanation:
The computation of amount reported as Merchandise Inventory on the balance sheet is shown below:-
Merchandise inventory = Ending merchandise inventory × Units purchased
= 11 × $150
= $1,650
Therefore for computing the Merchandise Inventory we simply applied the above formula and have not considered the replacement cost as it is not relevant.
When an HRM professional utilizes SWOT analysis, and strategic thinking about external and internal competitive issues impacting the company, including political, economic, market, social, geographic, and technological trends, this is called:
Answer:
Environmental scanning.
Explanation:
When an HRM professional utilizes SWOT analysis, and strategic thinking about external and internal competitive issues impacting the company, including political, economic, market, social, geographic, and technological trends, this is called environmental scanning.
Environmental scanning can be defined as a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment.
This simply means that, if an organization wants to succeed and remain competitive in the industry, it is necessary and utterly important that it regularly scans its environment so that it can assess its growth or developments and understand critical factors which contributed to its success.
Hence, the environmental scanning is classified into two (2) main categories and these are;
1. Internal environmental scanning: it is made up of essential elements or components that lie within an organization such as objectives, culture, value systems, mission, vision, goals, organizational structure, employees etc.
2. External environmental scanning: it is made up of essential elements or components that outside of an organization such as customers, market, rivals, politics, economic policies, demography etc.
Generally, the internal environmental scanning offers an organization Strength and Weakness while the external environmental scanning provides information about Opportunities and Threats. These four influencing environmental factors are known as the SWOT analysis (strength, weakness, opportunity and threats).
With the aforementioned four environmental factors, an organization is able to make strategic business decisions by identifying available opportunities and threats affecting the business, as well as used is strengths and improve on its weaknesses.
Mike Boyle says he has read that meeting with employees regularly is important to motivation. Despite the fact that he and Bob hold weekly staff meetings with their employees, Mike believes they should meet more often. He knows that employee meetings should have a purpose, and he asks you for advice. If the purpose of meeting with an employee is to motivate that individual, which of the following would be appropriate topics? Check all that apply.A. How the employee’s job could include more variety and be more meaningfulB. The progress the employee is making toward achieving important goalsC. What rewards the employee valuesD. Exactly how the employee should perform each task of the job
Answer:
A. How the employee’s job could include more variety and be more meaningful
B. The progress the employee is making toward achieving important goals
C. What rewards the employee values
Explanation:
In discussing how to make their jobs more meaningful and have more variety, the employees will feel like they will be given more responsibility and this will probably have the effect of motivating them because they will feel like they are more important to the company.
By speaking on progress made towards important goals, employees will feel motivated to reach the goals described.
If they were to discuss what type of rewards the employees value, it would create the impression in the minds of the employees that they are to be rewarded. This will inspire them to work harder and be more motivated so as to be eligible for the reward.
Employee motivation is key to the success of the organization. The level of dedication, motivation, and strength of the company employees who bring their role every day.
What do you mean by employee motivation?Employees will feel like they will be given more responsibility and this will likely have an impact on their motivation because they will feel more important in the company.
By talking about the progress made in achieving key goals, employees will feel motivated to achieve defined goals.
If they were to discuss what kind of rewards workers are demanding, it would create an impression in the minds of employees that they would be rewarded.
This will encourage them to work harder and be more motivated to qualify for the prize.
Hence, the correct options are A. How the employee’s job could include more variety and be more meaningful, B. The progress the employee is making toward achieving important goals and C. What rewards the employee values.
To learn more about Employee motivation, refer:
https://brainly.com/question/18852626
Suppose the Finnish government undertakes a program that relaxes immigration but only for highly skilled workers. This policy changes will result in an increase in the ________, causing _______.
Answer:
Suppose the Finnish government undertakes a program that relaxes immigration but only for highly skilled workers. This policy changes will result in an increase in the _population of immigrants_______, causing __increased economic performance resulting from increased supply of highly skilled labor, productivity, and GDP and not to forget increased diversity with its attendant benefits and costs_____.
Explanation:
Immigration is the movement of non-natives or citizens into a country from other countries. If the number of immigrants outnumber those emigrating, the population of the country will increase relatively. To boast population, increase diversity, and energize an economy, some countries deliberately embark on programed immigration and acceptance of highly skilled workers. As they come in, they come with their families, some will bear more children, and there will be increased relationships between the immigrants and the domiciled citizen population. The economy of the country will be revitalized since they are highly skilled workers, and there will be increased productivity and beneficial changes in the GDP. Human diversity has many attendant benefits and burdens. Whichever one that outweighs the other depends on factors prevalent in the particular country.
Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $193,200 in exchange for 400 shares of stock. Ethan contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000) and inventory (basis $458,240; fair market value $572,800) in exchange for 1,600 shares.
If an amount is zero, enter "0". Marie has income of $______ and $_________ basis in her 400 shares of stock and Ethan has income of $________ and $_______ basis in his 1,600 shares of stock.
Show work.
Answer:
If an amount is zero. Marie has income of $193,200 and $193,200 basis in her 400 shares of stock and Ethan has income of $0 and $533,240 basis in his 1600 shares of stock.
Explanation:
Ethan has no income and Ethan contributed the following assets and basis value of such assets will be basis for 1600 shares of stock:
Basis of Ethan:
Note Receivable = 25,000
land = 50,000
Inventory = 458,240
Total basis = 25,000 + 50,000 + 458,240 = $533,240
We can now see Ethan has a total basis of $533,240
A hedge fund charges an incentive fee of 10% of any investment returns above the T-bill rate, which currently is 1.0% but is subject to a high water mark. In the first year, the fund suffers a loss of 5.5%. What rate of return must it earn in the second year to be eligible for an incentive fee
Answer:
7.94%
Explanation:
From the given information; Let's assume that the initial fund value at the beginning of the year is $500.
And ; The loss for the first year will be ; $500 × 5.5 % = $27.5
Also The T-bill (treasury bill) will be = $500 × 1.0 % = $5
Similarly , the opening capital for the following second year will be: = ($500 - $27.5)
= $472.5.
Thus; for the second year, the hedge fund manager must invest this $472.5 and he must earn higher than the illustrated required rate of return below in order to be eligible for an free incentive:
Minimum required rate of return = ($27.5 + $5 + $5 )/$472.5 = 0.07936
Minimum required rate of return = 0.0794/100
Minimum required rate of return = 7.94 %
Therefore, for the hedge fund to be eligible for an incentive fee, he must earn more than 7.94%
_____________refers to a divestiture, spin-off, or some other means of eliminating businesses that are unrelated to a firm"s core business.
Answer:
Downscoping
Explanation:
The term that is being described in the question is known as Downscoping. Like mentioned, this term basically represents establishing a focus on the company's core businesses while at the same time getting rid of all that is not essential. This is very different from Downsizing which revolves around reducing the number of employees and operating units, thus reducing and changing the composition of the business itself. Although very different, these terms are often confused for one another.
Bramble Corp. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $23000 of materials, $15000 of direct labor costs, and $14000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $20000, and the ending balance is $14000. During the year, the company completed 25 machines. How much is the cost per machine?
Answer:
the cost per machine is $2,320.
Explanation:
Prepare a Manufacturing Schedule to determine the Cost of Goods Manufactured.
Manufacturing Schedule
Direct Materials $23,000
Direct labor costs $15,000
Manufacturing overhead applied $14,000
Add Beginning work in process $20,000
Less Closing work in process ($14,000)
Total Cost of Machines Manufactured $58,000
Therefore,
Cost per machine = Total Cost / Number of Machines completed
= $58,000 / 25 machines
= $2,320
Zahn Inc. sold 11,500 annual magazine subscriptions for $61 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. Zahn Inc. issued a $123,200, 180–day, 5% note payable on December 1, 20Y4. On March 31, 20Y5, Zahn Inc. had accounts payable of $ 22,700 and accrued wages payable of $6,700.
Required:
Prepare the Current Liabilities section of the balance sheet for Zahn Inc. on March 31, 20Y5.
Answer:
Zahn Inc.
Current Liabilities Section of the Balance Sheet
March 31, 20Y5
Current liabilities Amount
Accounts payable $22,700
Accrued wages payable $6,700
Accrued interest payable $3,080
($123,200 * 5% * 6/12)
Notes payable $123,200
Advances on magazine subscriptions $526,125
(11,500 * $61 * 9/12)
Total current liabilities $681,805
At the beginning of the current year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash to Holly, its sole shareholder.
How is Holly taxed on the distribution?
Of the $40,000 distribution, ...........................$ is taxed as a dividend and $ ....................represents a return of capital.
Answer:Of the $40,000 distribution, ....$28,000....................... is taxed as a dividend and $12,000...................represents a return of capital.
Explanation:
we will first compute dividend income for Holly
Loss from operations in the year =$36,000
Loss accrued till October 1st, since it accrues ratably
January - September= 9 months
36,000 x 9/12 = $27,000
But E&P at start of the year = $55,000
Therefore, E&P at October 1st = $55,000- $27,000 = $28,000
The remaining balance. $28,000 after the losses accrued have been deducted will be treated as dividend income
From the statement, the total cash distributed to Holly is $40,000,
$28,000 as calculated from above Is taxed as a dividend and $12,000 ( $40,000- $28,000) represents a return of capital.
The steeper the slope of the security market line the the greater the degree of risk aversion.
a. True
b. False
Answer:
true
Explanation:
the security market line is a graph that shows the relationship between the expected rate of return of a security and systemic risk.
The slope of the SML is the market risk premium. The steeper the slope, the greater the risk aversion.
If a check that was outstanding on last period's bank reconciliation was not among the cancelled checks returned by the bank this period, in preparing this period's reconciliation, the amount of this check should be: g
Answer:
If the outstanding check was not cancelled by the bank yet, then it must be subtracted from the bank account balance when you are preparing a reconciliation of the bank account.
The person or business that received the check will eventually cash it out, so there is no reason why you should consider that money in your bank account as yours. checks are basically cash payments that may or may not be delayed. Checks last 6 months before they expire, so there is still a lot of time for the person or business to cash it.
Answer:
Explanation:
The check is still outstanding (still not subtracted by bank) so add it to the book balance to obtain the bank balance.
A customer has an individual cash account, an individual margin account, a joint cash account with his wife, and a custodial account for each of his 2 children. If the firm liquidates, Securities Investor Protection Corporation covers:
Answer:
Each account separately.
Explanation:
Securities Investor Protection Corporation coverage is applied "PER CUSTOMER NAME."
Therefore, if a customer has an individual cash account and individual margin account, that is considered as one name; the joint margin account with his wife is a second name; the custodian account for each of the two children is third name; and fourth name respectively.
Hence, If the firm liquidates, Securities Investor Protection Corporation covers four accounts.
Suppose that in the small country of Sociopolis there are 6 million people in the adult population, that the labor-force participation rate is 70 percent, and that there are 3.8 million people employed. To the nearest tenth, what is the unemployment rate
Answer:
9.52%
Explanation:
The computation of the unemployment rate is shown below:-
The population can work = Participation rate × Adult population
= 0.70 × 6,000,000
= 4,200,000
Unemployed labor = 4.2 - 3.8
= 0.4 million
Now
Unemployment rate = Percentage of unemployed ÷ Total employed
= 0.4 - 4.2
=.0952
or
= 9.52%
We simply applied the above formulas
The representative firm's total revenue (TR) for selling the profit-maximizing level of output is
Answer: $787.50
Explanation:
Firms maximise their profit levels at the point where Marginal Revenue equals Marginal Cost because at this point any increase in Cost will not bring about more additional revenue.
The point where MR = MC is point A where sales are 225 units and price is $3.50.
The Total Revenue = Price * Quantity
= 225 * 3.50
= $787.50
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Department
Cutting Finishing
Direct labor-hours 7,700 43,000
Machine-hours 43,400 1,900
Total fixed manufacturing overhead cost $390,000 $496,000
Variable manufacturing overhead per machine-hour 2.00
Variable manufacturing overhead per direct labor-hour $3.75
Required:
1. Compute the predetermined overhead rate for each department.
2. The job cost sheet for Job 203, which was started and completed during the year, showed the following:
Department
Cutting Finishing
Direct labor-hours 3 13
Machine-hours 43 4
Direct materials 745 370
Direct labor costs 43 210
Using the pre-determined overhead rates that you computed in requirement 1, compute the total manufacturing overhead cost assigned to Job 203.
3. Wouid you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide pre-determined overhead rate, based on direct labor hours rather than using departmental rates?
Answer:
1. Cutting Department = $8.99 per machine hour and Finishing Department = $11.53 per direct labor hour.
2. The total manufacturing overhead cost assigned to Job 203 is $2,058.46.
3. Yes. Plant wide pre-determined overhead rate does not consider the cost driver in the departments involved.
Explanation:
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
Cutting Department = $390,000 / 43,400
= $8.99 per machine hour
Finishing Department = $496,000 / 43,000
= $11.53 per direct labor hour
Total manufacturing overhead cost assigned to Job 203.
Direct materials
Cutting Department $ 745.00
Finishing Department $ 370 .00
Direct labor costs
Cutting Department $ 43.00
Finishing Department $ 210.00
Variable manufacturing overhead
Cutting Department ($2.00 × 43) $86.00
Finishing Department ($2.00 × 4) $8.00
Variable manufacturing overhead
Cutting Department ($3.75 × 3) $11.25
Finishing Department ($3.75 × 13) $48.75
Fixed manufacturing overhead
Cutting Department ($8.99 × 43) $386.57
Finishing Department ($11.53 × 13) $149.89
Total $2,058.46