Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit produced by Lambda took 5,000 hours to produce and required $250,000 worth of material, equipment usage, and supplies. The second unit took 3,500 hours and used $200,000 worth of material, equipment usage, and supplies. Labor is $30 per hour. (a) Lambda was asked to present a bid for 10 additional units as soon as the second unit was completed. Production would start immediately. What would this bid be

Answer:

A. $1,926,900

B. $2,318,400

Explanation:

(a) Calculation for What would this bid be

TOTAL LABOR COST

First step is to calculate the LR for Total labor cost

LR = 3500/5000

LR = 70%

Second step is to calculate the cumulative factor using cumulative table

12 units cumulative factor frelated to labor

=5.501

2 units cumulative factor frelated to labor = 1.700

Hence,

Cumulative factor = 5.501 – 1.700

Cumulative factor = 3.801

Third step is to calculate the Labor cost for 10 more units

Labor cost for 10 more units = 5,000(3.801)(30)

Labor cost for 10 more units = $570,150

MATERIAL

First step is to calculate the LR for Material:

LR = 200000/250000

LR= 80%

Second step is to calculate Cumulative factor

12 Units cumulative factor in case of material = 7.227

2 units cumulative factor in case of material = 1.800

Hence,

Cumulative factor = 7.227 – 1.800

Cumulative factor = 5.427

Third step is to calculate Total cost fo material for additional 10 units

Total cost fo material for additional 10 units = 250,000(5.427)

Total cost fo material for additional 10 units= $1,356,750

Now let calculate What would this bid be

Total cost = $570,150 + $1,356,750

Total cost = $1,926,900

Therefore the bid will be for $1,926,900

b. Calculation for What would be the total production costs for the additional 10 units

First step is to calculate Labor cost

Labor cost Cumulative factor using Cumulative tables =4.931

Labor cost = 4.931*(5,000)*(30)

Labor cost =$739,650

Second step is to calculate the material cost

material cost Cumulative factor using cumulative table 6.315

Material cost = 6.315*($250,000)

Material cost=$1,578,750

Now let calculate the Total cost

Total cost=$739,650+$1,578,750

Total cost= $2,318,400

Therefore What would be the total production costs for the additional 10 units is $2,318,400

Firms use economic analyses to better understand the overall outlook for the economy and how economic changes will impact the firm.

a. True
b. False

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:
Penske Stanza
Revenues $ (795,000 ) (700,000)
Cost of goods sold 283,250 175,000
Depreciation expense184,000 302,000
Investment income Not given 0
Dividends declared 80,000 60,000
Retained earnings, 1/1/18(732,000 (268,000)
Current assets 510,000 668,000
Copyrights 1,072,000 558,500
Royalty agreements 722,000 1,116,000
Investment in Stanza Not given 0
Liabilities (562,000 ) (1,631,500)
Common stock (600,000 )($20 par) (200,000 )($10 par)
Additional paid-in capital (150,000) (80,000)
Note: Parentheses indicate a credit balance.
On January 1, 2018, Penske acquired all of Stanza’s outstanding stock for $818,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $632,000 book value but a fair value of $746,000.
As of December 31, 2018, what is the consolidated copyrights balance?
For the year ending December 31, 2018, what is consolidated net income?
As of December 31, 2018, what is the consolidated retained earnings balance?
As of December 31, 2018, what is the consolidated balance to be reported for goodwill?
a. Consolidated copyrights
b. Consolidated net income
c. Consolidated retained earnings
d. Consolidated goodwill

Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on December 31, 2030 (15 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. Required: 1. Determine the price of the bonds at January 1, 2016. 2. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2016. 3. Prepare the journal entry to record interest on June 30, 2016. 4. Prepare the journal entry to record interest on December 31, 2023.

The firm was organized and the initial stockholders invested cash of $780. The company borrowed $1,170 from a relative of one of the initial stockholders; a short-term note was signed. Two zero-turn lawn mowers costing $624 each and a professional trimmer costing $169 were purchased for cash. The original list price of each mower was $793, but a discount was received because the seller was having a sale. Gasoline, oil, and several packages of trash bags were purchased for cash of $117. Advertising flyers announcing the formation of the business and a newspaper ad were purchased. The cost of these items, $221, will be paid in 30 days. During the first two weeks of operations, 47 lawns were mowed. The total revenue for this work was $917; $605 was collected in cash, and the balance will be received within 30 days. Employees were paid $546 for their work during the first two weeks. Additional gasoline, oil, and trash bags costing $143 were purchased for cash. In the last two weeks of the first month, revenues totaled $1,196, of which $488 was collected. Employee wages for the last two weeks totaled $663; these will be paid during the first week of the next month. It was determined that at the end of the month the cost of the gasoline, oil, and trash bags still on hand was $39. Customers paid a total of $195 due from mowing services provided during the first two weeks. The revenue for these services was recognized in transaction f.

Measuring Sustainable Earnings Harnishfeger Corporation was a mining machinery and equipment company based in Wisconsin. The company voluntarily changed its depreciation accounting policy from the accelerated method to the straight-line method It disclosed the cumulative effect of this accounting policy change, equal to $11.005 million (net of applicable income taxes), in its financial statements In addition, the company also voluntarily changed the estimated useful lives of certain of its U.S. plant and equipment. This estimate change increased its pretax reported profit by $3.2 million. The following are selected excerpts from the company's financial statements
(in thousands)
Income before income taxes, equity items,
and cumulative effect of accounting method change 5838
Provision for income taxes (2452)
Income after taxes 3386
Equity items 858
Cumulative effect of change in depreciation method 11005
Net income 15249
(a) Calculate Harnishfeger's sustainable earnings. Round tax rate to the nearest whole percentage for your calculation. (Example: 0.34567 = 35%) Round your answer to the nearest thousand dollar. thousand
(b) How would the capital market react to the company's decision to change its depreciation accounting policy and to change the estimated useful lives of its depreciable assets?

Give account of the political argument against outsourcing practiced by US firms.

1. XYZ Co. incurred the following costs related to the office building used in operating its sports supply company: a. Replaced a broken window. b. Replaced the roof that had been on the building 23 years. c. Serviced all the air conditioners before summer started. d. Replaced the air conditioners with refrigerated air conditioners in the customer service areas. e. Added a warehouse to the back of the building. f. Repaint the interior walls. g. Installed window shutters on all windows. Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.

A corporation had the following assets and liabilities at the beginning and end of this year.
Beginning of the year End of the year
Assets $95,500 141,000
Liabilities $40941 57,105
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $600 cash per month
c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock
d. Dividends were $600 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases (Decreases in equity should be indicated with a minus sign.)
Beginning of the year Equity
Owner investments
Dividends
Net Income (loss)
End of the year-Equity

Consider the supply and demand schedules for calzones at a local pizzeria. Use the information in the schedules to answer the five questions. Demand Price (P) $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 Quantity (Q) 20 40 60 80 100 120 140 160 180 200 Supply Price (P) $4 $5 $6 $7 $8 $9 $10 $11 $12 $13 Quantity (Q) 20 30 40 50 60 70 80 90 100 110 What is the equilibrium price

EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During 2017, the company recorded net sales of $5,300 million. Historically, about 3% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 20% of retail value. Assume that at the start of the year EZ Wheels' balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million. What was EZ Wheels Corporation's warranty expense for 2017

Firms must compete for top talent. In attracting and selecting employees, firms must strive to select the best fit for both the employee and the firm. In an attempt to reduce wasted time and effort in interviewing too many candidates while assuring a good candidate pool, a firm should run employment ads in the newspaper. only let lower-level employees interview job candidates. use a pre-interview quiz. refrain from hiring by referrals from present employees.

Use the midpoint method when applicable to calculate the price elasticity of demand.

a. Contain Yourself!, a plastic container company, raises the price of its signature Lunchbox container from $3.00 to $4.00 . As a result, the quantity sold drops from 20,000 to 15,000.
b. Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.
c. Capital Metro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.

1. Elastic
2. Perfectly elastic
3. Perfectly inelastic
4. Unit elastic
5. Inelastic

Described below are certain transactions of Sunland Company for 2021: 1. On May 10, the company purchased goods from Fox Company for $72,200, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $91,200 from Rao Company, paying $26,400 in cash and giving a one-year, 9% note for the balance. 3. On September 30, the company discounted at 11% its $200,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $180,000. Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit May 10 May 18 June 1 September 30 Prepare the adjusting entries necessary at December 31, 2021 in order to properly report interest expense related to the above transactions. Assume straight-line amortization of discounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record interest expense) Dec. 31 (To record amortization of discount) Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of Sunland Company's December 31, 2021 balance sheet. Current Liabilities $ Interest Payable $ Interest Receivable Premium on Note $ Discount on Note Note Payable-Rao Company Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of Sunland Company's December 31, 2021 balance sheet. Current Liabilities Less OF ACCOUNTS Add LINK TO TEXT

Technician A says that hazardous waste disposed of into the soil, can cause air pollution. Technician B says that disposal information is found in the product identification section of an SDS. Who is right?

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bX. 3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?

Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $107,000 tax loss for the year, Logan's tax basis in his MG stock was $153,500 at the beginning of the year, and he received $78,500 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation

J.K. Builders was incorporated on July 1. a. Received $87, 000 cash invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $77, 000 cash. As a construction site for smaller projects, it is estimated to be worth $82, 000 to J.K. Builders. c. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $27, 000. but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $24, 300 bill from the supplier d. Borrowed $42, 000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. e. One of the owners sold $27, 000 worth of his common stock to another shareholder for $28, 000. Prepare journal entries for the above transactions from the first month of business.

On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $21,060 in cash and merchandise inventory valued at $56,290. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $59,950. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

Wallace’s Ledger Agreed-Upon
Balance Valuation

Accounts Receivable $18,650 $17,770
Allowance for Doubtful Accounts 1,580 1,950
Equipment 83,230 54,190
Accumulated Depreciation 30,260 –
Accounts Payable 14,910 14,910
Notes Payable (current) 35,970 35,970

The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,660 (Keene) and $30,270 (Wallace), and the remainder equally.

Required:
a. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts.
b. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace.

On October 1, Eder Fabrication borrowed $84 million and issued a nine-month, 15% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.

Before World War​ I, $20.75 was needed to buy one ounce of gold.​ If, at the same​ time, one ounce of gold could be purchased in France for ​, what was the exchange rate between French francs and U.S.​ dollars?

The implied French​ franc/US dollar exchange rate is FF________$
The implied US​ dollar/French franc exchange rate is ​$ ________. ​(Round to four decimal​ places.)

This information relates to Novak Real Estate Agency.
Oct. 1 Stockholders invest $33,600 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,480.
3 Buys office furniture for $3,780, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,290 (not paid by Roads at this time).
10 Receives cash of $145 as commission for acting as rental agent renting an apartment.
27 Pays $670 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,040 in salary for October.
Jounalize the transactions. ( no entry is required, select "No entry" for the account titles and enter 0 for the amounts amount is entered. Do not indent manually, Record journal entries in the order presented in the problem.

The following information was drawn from the Year 1 accounting records of Ozark Merchandisers:
Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30.
Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,520. The merchandise had cost Ozark $920.
All customers paid their accounts within the discount period.
Selling and administrative expenses amounted to $4,200.
Interest expense paid amounted to $360.
Land that had cost $8,000 was sold for $9,250 cash.
Required
a. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.)
c. Where would the interest expense be shown on the statement of cash flows?
i. Operating activities
ii. Investing activities
iii. Financing activities
d. How would the sale of the land be shown on the statement of cash flows?
i. The full sales price of the land, $9,250, would be shown as a cash inflow from financing activities on the statement of cash flows.
ii. The full sales price of the land, $9,250, would be shown as a cash inflow from investing activities on the statement of cash flows.
iii. The full sales price of the land, $9,250, would be shown as a cash inflow from operating activities on the statement of cash flows

Company A shares are currently trading at $20 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2014 are $1.50 per share. Company A has 200 million diluted shares outstanding. Company A’s major competitors are trading at an average share price / 2014 Expected EPS of 15.0x.
Using the comparable company analysis valuation method, Company A shares are:_______.
a. $2.50 per share overvalued
b. $2.50 per share undervalued
c. Need more information
d. Appropriately priced

Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3200 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 2930 jackets were sold in June and $10,190 was spent on utilities. What is the planning budget for utilities in June

Freight car loadings over an 18-week period at a busy port are as follows:

Week Number Week Number Week Number
1 370 7 415 13 450
2 380 8 425 14 455
3 390 9 435 15 475
4 380 10 425 16 485
5 390 11 435 17 495
6 395 12 445 18 505

a. Determine a linear trend line for expected freight car loadings.
b. Use the above trend equation to predict expected loadings for Weeks 20 & 21.
c. The manager intends to install new equipment when the volume exceeds 950 loadings per week. Assuming the current trend continues, in which week (at the earliest) should the loading volume reach that level?

Prompt What is liability?

Simon lost $9,050 gambling this year on a trip to Las Vegas. In addition, he paid $2,550 to his broker for managing his $255,000 portfolio and $1,285 to his accountant for preparing his tax return. In addition, Simon incurred $3,420 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).

Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $25 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments:_______.
Assembly Actual results Direct labor hours used Machine hours used The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400.
How much manufacturing ovehead would be allocated to Job 603 using the departmental overhead rates?
A. $610
B. $330
C. $580
D. $740

How is the Sole Trading formed?

Jody and Benny both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee.Both have access to the same resources If Jody focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week Benny can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week 1st attempt Part 1 (1 point) ? See Hint Who has an absolute advantage in coffee production? Who has an absolute advantage in nut production? A. Benny has an absolute advantage in both coffee and nuts. B. Benny has an absolute advantage in coffee, and Jody has an absolute advantage in nuts. C. Jody has an absolute advantage in both coffee and nuts. D. Jody has an absolute advantage in coffee, and Benny has an absolute advantage in nuts.