Listmann Corp. processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Product Sales Value with no further Processing Additional Processing Costs Sales Value after further processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 1,800 Basic 90 45 180 Which product(s) should not be processed further?

Answers

Answer 1

Answer:

Which product(s) should not be processed further?

Deluxe products should not be processed further because the cost of further processing is higher than the additional benefits.

Explanation:

Product    Sales value with            Additional processing   Sales value after

                no further processing   costs                               further processing

Premier         $1,350                             $900                             $2,700

Deluxe            $450                             $225                                $630

Super              $900                             $450                              $1,800

Basic                 $90                               $45                                  $180

                      further processing         added value            difference

                      costs

Premier          $900                               $1,350                      $450

Deluxe            $225                                 $180                     ($180)            

Super              $450                                $900                      $450

Basic                 $45                                   $90                        $45


Related Questions

if the only factor driving the 20y2 level of accounts receivable is the volume of sales what should the 20y2 accounts receivable be

Answers

Answer:

^2+y^2=20 y=*4

Explanation:

you add 2 + y =20 and y=4 sorry i could not do the times thing

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an X in the appropriate column.
Statement of Cash Flow Noncash Investing & Financing Activities Not Reported on Statement or in Notes
Operating Activities Investing Activities Financing Activities
a. Declared and paid a cash dividend
b. Recorded depreciation expense
c. Paid cash to settle long-term note payable
d. Prepaid expenses increased in the year
e. Accounts receivable decreased in the year
f. Purchased land by issuing common stock
g. Inventory increased in the year
h. Sold equipment for cash, yielding a loss
i. Accounts payable decreased in the year
j. Income taxes payable increased in the year

Answers

Answer:                                                                      i       ii      iii     iv      v

a. Declared and paid a cash dividend                                     X

b. Recorded depreciation expense                         X

c. Paid cash to settle long-term note payable                         X

d. Prepaid expenses increased in the year             X

e. Accounts receivable decreased in the year        X

f. Purchased land by issuing common stock                                    X

g. Inventory increased in the year                            X

h. Sold equipment for cash, yielding a loss                       X

i. Accounts payable decreased in the year             X

j. Income taxes payable increased in the year        X

Note:

i. Operating activities

ii. Investing activities

iii. Financing activities

iv. Non cash Investing & Financing

v. Not reported on statement or Notes

Based on the information given where each item would appear on its statement of cash flows are:

a. Declared and paid a cash dividend.

Statement of cash flow: Financing activities                            

b. Recorded depreciation expense.                  

Statement of cash flow: Operating activities      

c. Paid cash to settle long-term note payable.                    

Statement of cash flow: Financing activities                            

d. Prepaid expenses increased in the year.          

Statement of cash flow: Operating activities                            

e. Accounts receivable decreased in the year.    

Statement of cash flow: Operating activities                            

f. Purchased land by issuing common stock.          

Statement of cash flow: Non cash investing and financing activities                           

g. Inventory increased in the year.  

Statement of cash flow: Operating  activities                            

                     

h. Sold equipment for cash, yielding a loss.         

Statement of cash flow: Investing activities                            

i. Accounts payable decreased in the year.  

Statement of cash flow: Operating activities                            

j. Income taxes payable increased in the year.      

Statement of cash flow: Operating activities

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Use the following information to answer questions 4a.1-4a.5 Gerrell Corp. is comparing two different capital structures. Plan I would result in 18,000 shares of stock and $95,000 in debt. Plan II would result in 14,000 shares of stock and $190,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $90,000. The all-equity plan would result in 22,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans

Answers

Answer:

Gerrel Corp.

EPS (Earnings per share) = Earnings after Tax/Number of outstanding shares

Plan I:

EBIT =                    $90,000

Interest =                 $4,750 ($95,000 x 5%)

Pre-Tax Income = $85,250

Income Tax Exp.      34,100 ($85,250 x 40%)

After Tax Income  $51,150

EPS = $51,150/18,000 = $2.84 per share

Plan II:

EBIT =                    $90,000

Interest =                 $9,500 ($190,000 x 5%)

Pre-Tax Income = $80,500

Income Tax Exp.     32,200 ($80,500 x 40%)

After Tax Income  $48,300

EPS = $48,300/14,000 = $3.45 per share

Plan III:

EBIT =                    $90,000

Pre-Tax Income = $90,000

Income Tax Exp.     36,000 ($90,000 x 40%)

After Tax Income $54,000

EPS = $54,000/22,000 = $2.45 per share

Explanation:

a) Data and Calculations:

Plan I = 18,000 shares + $95,000 debt

Plan II = 14,000 shares + $190,000 debt

Difference = 4,000 shares + $95,000 debt

Share price = $95,000/4,000 = $23.75

EBIT = $90,000

Interest Rate = 5%

Corporate Tax Rate = 40%

b) Capital Structure:

Plan I: (Equity and Debt)

Shares of 18,000 x $23.75 + $95,000 debt = $522,500 in total capital

Plan II: (Equity and Debt)

Shares of 14,000 x $23.75 + $190,000 debt = $522,500 in total capital

Plan III: (All-equity plan):

Shares of 22,000 x $23.75 = $522,500 in total capital

c) The Earnings per share is the measurement of the Net Income to stockholders divided by the number of outstanding shares.  It gives an idea about the profitability of the entity, especially with regard to the profit made for common stockholders.  The EPS is also one of the metrics used in the calculation of the P/E ratio to indicate whether a company's shares are undervalued or overvalued.

Easier access to talent, markets, and sources of supply globally, forces companies to focus less on the overall worldwide operations system and more on country-specific aspects.

a. True
b. False

Answers

a. True
That is true

In 2016, Saratoga Company had the following financial data: Operating income $320,000 Interest received $50,000 Interest paid $90,000 Dividend received $100,000 Dividend paid $150,000 Dividend of $100,000 was received from Findlay Inc. which is one of the companies that Saratoga company invest. As of the end of 2016, Saratoga Company owns 35% of Findlay, Inc.

Answers

In 2016, Saratoga Company had the following financial data: Operating income $320,000 Interest received $50,000 Interest paid $90,000 Dividend received $100,000 Dividend paid $150,000 Dividend of $100,000 was received from Findlay Inc. which is one of the companies that Saratoga company invest. As of the end of 2016, Saratoga Company owns 35% of Findlay, Inc.

Using the corporate tax rate table given below, what was the company’s tax Liability (just federal corporate income tax) for the year 2008?

335,000 - 10,000,000 34% 113,900 + .34x(inc>335,000)

Answer:

$78,200

Explanation:

From the given information:

Operating income = $320,000

Interest received = $50,000

Interest paid = $90000

Dividend received = $100000

Dividend paid        = $150,000

Therefore:

Saratoga Company Total Income = Operating income + Interest Received + Dividend Received  - Interest Paid - Dividend paid

Saratoga Company Total Income = $320,000 + $50,000 + $100,000 - $90,000 - $ 150,000

Saratoga Company Total Income = $470000 - $ 240000

Saratoga Company Total Income =  $230,000

According to the table given ;

The table tax percentage = 34 %

= $230,000  × 0.34

= $78,200

You want to have $18,000 in 9 years for a dream vacation. If you can earn an interest rate of .5 percent per month, how much will you have to deposit today

Answers

Answer:

$10,503.59

Explanation:

This question requires us to find how much you have to deposit today if:

Fv = 18,000

Time = 9 years

PV= fv/(1 + i)^n

N = 9 X 12 = 108

I/y = 0.5%

PV = $18,000 / 1.005^108

= $10,503.59

Therefore what you have to deposit today is $10,503.59

Identify the trade-restraining practice that this example demonstrates.

Company A and Company B both work in the candy industry. They agree that Company A will only sell chocolate to Company C and Company B will only sell fruit candies to Company C.

Answers

it demonstrates Division of Markets

Graphical Designs is offering 10-10 preferred stock. The stock will pay an annual dividend of $10 with the first dividend payment occurring 10 years from today. The required return on this stock is 5.20 percent. What is the price of the stock today

Answers

Answer:

PV of the stock today = $115.83

Explanation:

We will use the discounted cash flows approach to calculate the price of the stock today. This approach values the stock by accumulating the present value of all the expected future cash flows from the stock/asset.

As the preferred stock pays a constant dividend after equal intervals of time and for an indefinite period, it can also be treated as a perpetuity. Thus, the formula for the present value of perpetuity will be used to calculate the price of the stock at year 10 that we will discount back to today.

Present value of perpetuity = Cash flow  / expected rate of return

PV of stock at Year 10 = 10 / 0.052

PV of stock at Year 10 = 192.3076923

The value of the today will be,

PV of the stock today = 192.3076923 / (1+0.052)^10

PV of the stock today = $115.83

Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:
Consultant Computer Programmer Administrator
Regular earnings rate $4,000 per week $60 per hour $50 per hour
Overtime earnings rate* Not applicable 1.5 times hourly rate 2 times hourly rate
Number of withholding allowances 2 1 2
* For hourly employees, overtime is paid for hours worked in excess of 40 hours per week.
For the current pay period, the computer programmer worked 50 hours and the administrator worked 48 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 2. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $75.
Determine the gross pay and the net pay for each of the three employees for the current pay period. If required, round your answers to two decimal places.
Consultant Computer Programmer Administrator
Gross pay $ $ $
Net pay $ $ $

Answers

Answer:

Gross pay:

consultant $4,000 computer programmer $3,300 administrator $2,800

Net pay:

consultant $2,767.98 computer programmer $2,295.48 administrator $1,993.98

Explanation:

                                           regular earnings     overtime    withholding  

                                                                                              allowances

Consultant                        $4,000 per week       N/A                2

Computer programmer          $60 per hour        1.5                  1

Administrator                          $50 per hour          2                  2

computer programmer worked 50 hours = ($60 x 40) + ($60 x 10 x 1.5) = $3,300

administrator worked 48 hours = ($50 x 40) + ($50 x 8 x 2) = $2,800

Social security taxes:

Consultant = 6% x $4,000 = $240                         Computer programmer = 6% x $3,300 = $198         Administrator = 6% x $2,800 = $168

Medicare taxes:

Consultant = 1.5% x $4,000 = $60                         Computer programmer = 1.5% x $3,300 = $49.50         Administrator = 1.5% x $2,800 = $42

Federal income taxes:

Consultant: amount subject to withholding = $4,000 - (2 x $75) = $3,850. Federal income taxes = $356.90 + [28% x ($3,850 - $1,796) = $932.02                         Computer programmer = amount subject to withholding = $3,300 - (1 x $75) = $3,225. Federal income taxes = $356.90 + [28% x ($3,225 - $1,796) = $757.02             Administrator = amount subject to withholding = $2,800 - (2 x $75) = $2,650. Federal income taxes = $356.90 + [28% x ($2,650 - $1,796) = $596.02  

Gross pay:

consultant $4,000 computer programmer $3,300 administrator $2,800

Net pay:

consultant $4,000 - ($240 + $60 + $932.02) = $2,767.98 computer programmer $3,300 - ($198 + $49.50 + $757.02) = $2,295.48 administrator $2,800 - ($168 + $42 + $596.02) = $1,993.98

Suppose in 2012 in New Zealand, there are deflationary pressures and prices drop by 20 percent throughout the economy. All else being equal, expectations of increasing deflation should:

Answers

Answer: B. shift the AD curve to the left

Explanation:

When people expect that deflation which is the general reduction in prices, will occur, they will try to take advantage of it by reducing their consumption in the present so that they can resume consumption when prices are lower so as to reduce their cost of consumption.

This will have the effect of reducing Aggregate Demand which will force the Aggregate Demand curve to the Left which will further exacerbate the effects because prices will then fall to the new point of intersection between AD and the Aggregate Supply curve.

When the prices are fall by  20 percent throughout the economy so here it should be shifted to AD curve to the left hand side.

Impact on deflation:

In the case when there is deflation that means reduction in the price so here there should be decreased in the consumption also it decrease the consumption cost.

Due to this the Aggregate Demand should be decreased due to this, it should be shifted to the left hand side because of the decreasing in the price

Therefore, When the prices are fall by  20 percent throughout the economy so here it should be shifted to AD curve to the left hand side.

This question is incomplete.The options for this question are;

A. Cause a movement along an AD curve or a change in quantity of AD

B. shift the AD curve to the left

C. leave the AD curve unchanged

D. shift the AD curve to the right

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Martin Company paid $900,000 for equipment. Martin uses straight-line depreciation. Currently the Accumulated Depreciation account shows a balance of $180,000. If the asset has no residual value and an estimated life of 10 years, how many years has the asset been depreciated? (Round your final answer to the nearest year.)

Answers

Answer:

2 years

Explanation:

900,000/10=90,000

180,000/90,000=2

Symon's Suppers Co. has announced that it will pay a dividend of $4.27 per share one year from today. Additionally, the company expects to increase its dividend by 4.6 percent annually. The required return on the company's stock is 10.8 percent. What is the current share price

Answers

Answer:

The price of the stock today is $65.02

Explanation:

The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.

The formula for the price of the stock today under the constant growth model is,

P0 = D1 / (r - g)

Where,

D1 is the dividend expected to be paid next periodr is the required rate of returng is the growth rate in dividends

To calculate the price today, we use the dividend for the next period. Thus, we will use D2  to calculate the price of the stock at Year 1 and will discount it back to today to calculate the price today.

P0 = [(4.27 * (1+0.046)) / (0.108 - 0.046)] / (1+0.108)

P0 = $65.017 rounded off to $65.02

The merger of two firms producing personal computers is an example of a __________ merger. Group of answer choices

Answers

Answer:

Horizontal merger

Explanation:

The merger of two firms producing personal computers is an example of a horizontal merger

A horizontal merger is a merger or business collaboration that happens between firms that operate in the same industry. The products being sold are similar and in the same market

Factory Overhead Rate, Entry for Applying Factory Overhead, and Factory Overhead Account Balance The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and total direct labor costs would be $1,800,000. During February, the actual direct labor cost totaled $160,000, and factory overhead cost incurred totaled $283,900.

Required:
a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals.
b. Journalize the entry to apply factory overhead to production for February.
c. What is the February 28 balance of the account Factory Overhead—Blending Department?
d. Does the balance in part (c) represent overapplied or underapplied factory overhead?

Answers

Answer:

a. 175%

b.

Journal Entry  to apply factory overhead to production for February.

Work In Process $280,000 (debit)

Overheads $280,000 (credit)

c. $3,900

d. Under-applied Overheads

Explanation:

Predetermined Overhead rate = Total Budgeted Overheads /Total Budgeted Activity

                                                   = $3,150,000 / $1,800,000

                                                   = $1.75 per direct labor cost.  or

                                                   = 175% (1.75 × 100)

Applied factory overhead = Predetermined Overhead rate × Actual Activity

                                           = $160,000 × 175 %

                                           = $280,000

Journal Entry  to apply factory overhead to production for February.

Work In Process $280,000 (debit)

Overheads $280,000 (credit)

over-applied or under-applied factory overhead

Over-applied Overheads = Actual Overheads < Applied Overheads

Under-applied Overheads = Actual Overheads > Applied Overheads

Actual Overheads (given) = $283,900

Applied Overheads = $280,000

Actual Overheads: $283,900 > Applied Overheads :$280,000

Thus we have an Under-application situation of $3,900 ($283,900 - $280,000)

g Unearned revenues are classified as: Group of answer choices Assets. Liabilities. Revenues. Stockholders' equity.

Answers

Answer:

Liabilities

Explanation:

Unearned revenues are written as liabilities in the balance sheet of a firm. They are regarded as liabilities because the revenue is still unearned. An example is advance rent payment.

It is a prepayment for a good or service that has not been rendered to the customer yet by the provider. The provider or seller now has a liability equal to the revenue they have received till they provide that service for which they were paid

Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022.

Answers

Answer:

Par value of bonds = $257,000

Issue price of bonds = 99

Cash receipts from issue of bonds = 257,000 x 99%  = 254,430

Discount on bonds payable = Par value of bonds - Cash receipts from issue of bonds

= 257,000-254,430

= $2,570

Date          Account Titles and Explanation          Debit           Credit

March 1                    Cash                                         $254,430  

                     Discount on bonds payable              $2,570  

                           Bonds payable                                                $257,000

                  (To record issuance of bonds)  

The entries to record cost and sale of a finished good on account is Group of answer choices debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales debit Cost of Goods Sold, credit Finished Goods debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales

Answers

Answer:

a. debit Cost of Goods sold, credit Finished Goods, debit Account Receivable, credit Sale

Explanation:

The journal entry is shown below:

For the cost of finished goods

Cost of goods sold Dr XXXXX

           To Finished goods XXXXX

(Being the cost of finished goods is recorded)

For recording this we debited the cost of goods sold as it increased the expenses and credited the finished goods as it decreased the assets

For the sale of finished goods on account

Account receivable Dr XXXXX

             To Sales XXXXX

(Being the sale of finished goods on account is recorded)

For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the revenue

The risk-free rate of return is 2.7 percent, the inflation rate is 3.1 percent, and the market risk premium is 6.9 percent. What is the expected rate of return on a stock with a beta of 1.08

Answers

Answer:

10.15%

Explanation:

Using the CAPM formula, we can calculate cost of equity or in this case, the expected rate of return:

expected rate of return = risk free rate x [beta x (market rate of return - risk free rate)]

where market rate of return - risk free rate = market risk premium

expected rate of return = 2.7% x (1.08 x 6.9%) = 10.15%

The expected rate of return is 10.15%

The calculation can be done as follows

Risk free rate= 2.7%

Inflation rate= 3.1%

Market risk premium= 6.9%

Beta= 1.08%

Therefore the expected rate of return can be calculated as follows

= Risk free rate of return₊ (Beta ×  Market risk premium)

= 2.7(1.08 × 6.9)

= 2.7  ₊ 7.452

= 10.15%

Hence the expected rate of return on the stock is 10.15%

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Which of the following is NOT an element of organizational structure? A) Well-articulated mission, vision, and value statements. B) Formal reporting relationships. C) Grouping together of individuals into departments. D) Systems designed to ensure effective communication

Answers

Answer:

A) Well-articulated mission, vision, and value statements.

Explanation:

An organizational structure can be defined as a system that states how business activities such as standard rules, task allocation or roles of employees, coordination, responsibilities and supervision of these activities are directed so as to enhance the achievement of the goals, aims and objectives of the organization.

Simply stated, an organizational structure usually defines a hierarchy, which is used to determine how information, roles and responsibilities flow from one level to another in an organization. Generally, the flow of information are usually from top to bottom.

Furthermore, the organizational structure can be divided into four (4) distinct categories and these are;

1. Matrix organizational structure.

2. Functional organizational structure.

3. Divisional organizational structure.

4. Flat organizational structure.

The following are the elements of organizational structure;

A. Formal reporting relationships. This is enhanced by assigning a hierarchy, where informations are reported to the right individual and in a timely manner as well.

B. Grouping together of individuals into departments. This is to increase the level of output and enhance building good, coordinated development through division of labor.

C. Systems designed to ensure effective communication.

Hence, a well-articulated mission, vision, and value statements isn't an element of organizational structure. It could be regarded as an organization's center of gravity.

An organizational structure is a system that specifies how business operations, such as standard norms, task distribution or personnel roles, coordination, responsibilities, and supervision, are directed in order to help the organization achieve its goals, aims, and objectives.

So, Option A is the correct option which is not true about organizational structure.

The other options are incorrect as:

Option B is incorrect as Relationships of formal reporting. This is aided by establishing a hierarchy in which information is reported to the appropriate person and in a timely manner.

Option C is incorrect as Individuals are organized into departments. This is to raise output and improve the development of good, coordinated development by dividing labor.

Option D is incorrect as yes designing system to ensure effective communication is element of organizational structure.

Thus option A isn't a part of the company's structure. It's possible to think of it as the organization's center of gravity.

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You just opened a brokerage account, depositing $4,500. You expect the account to earn an interest rate of 8.57%. You also plan on depositing $3,000 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?

Answers

Answer:

$74108

Explanation:

Solution

Given that:

Deposit = $4,500

Interest rate =8.57%

Plan to deposit =$3000 at the end of 5 years through 1

n= 20 years

Now

We apply the formula given below:

A=P(1+r/100)^n

Here

A=future value

P=present value

r=rate of interest

n=time period.

Thus

=4500(1.0857)^20+3000(1.0857)^15+3000(1.0857)^14+3000(1.0857)^13+3000(1.0857)^12+3000(1.0857)^11+3000(1.0857)^10

=$74108

Therefore the account value at 20 years (ending) is $74108

In 1998, the German auto manufacturer Daimler-Benz purchased Chrysler for $36 billion which was one of the biggest mergers of its kind back then. Both of these companies were in the automotive business. Even though they had different cultures and market focus, this merger is an example of a:

Answers

Answer:

The answer is

horizontal merger.

Explanation:

A merger is when two or more businesses join together to form a single company.

It is usually a voluntary action on the part of all companies.

It is called vertical mergers when the merger joins different businesses with the same supplier or customer base.

When mergers join similar businesses These are considered horizontal mergers.

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Tunneling Inc. fixed costs are at $100,000. The company has sales of 10,000 units with a price of $84 and variable cost per unit of $40. The depreciation is $50,000 and taxes are 21 percent. What is the degree of operating leverage

Answers

Answer:

Tunneling Inc.

Degree of operating leverage

= Contribution Margin divided by Operating Income

= $440,000/$290,000 = 1.52

Explanation:

(a) Data and Calculations:

Sales Revenue =   $840,000 (10,000 x $84)

Variable cost =           $400,000 (10,000 x $40)

Contribution =            $440,000

Fixed costs =              $100,000

Depreciation =             $50,000

Operating Income = $290,000

Tax (21%)                    ($60,900)

Net Income =             $229,100

(b) The degree of operating leverage for Tunneling Inc. is 1.52.  It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings.  Analysts usually work this ratio out to determine this important effect.

1. Do you think it is a good idea to have employers withhold
estimated taxes from paychecks? Why or why not?

Answers

Answer:

No,

Explanation:

The tax withholding system is something that most of us take for granted, but the concerned citizens, politicians and economists who have analyzed it have many criticisms of the system.

Taxpayers have no idea how much they pay and are apathetic about tax rates

If taxpayers had to make one large payment, they would know exactly how much they were forking over for federal taxes, Social Security taxes, Medicare taxes and state taxes. Since the money is taken gradually, many people never pay attention to the full amount, which makes it easier for high tax rates to persist and for the government to increase tax rates. For example, the state of California in 2009 decided to use the tax withholding system to take a large, interest-free loan from its taxpayers. It increased the withholding tax by 10%, and even journalists didn't seem to notice until the days before the rate hike was implemented. The government says it will refund the borrowed money in April.

At December 3 2018, Waco Travel Agency has an Accounts Receivable balance of $93,000. Allowance for Uncollectible Accounts has a credit balance of $870 before the year-end adjustment. Service revenue (all on account) for 2018 was $800,000. Waco estimates that its uncollectible-account expense for the year is 1% of service revenue.
Make the year-end entry to record uncollectible- account e are reported on the balance sheet at December 31,2018.
Show how Accounts Receivable and Allowance for Uncollectible Accounts.

Answers

Answer:

                          Waco Travel Agency

                              Journal entry

Date           Account and explanation                Debit        Credit

Dec 31 Bad debt expense (800,000 * 1%)       $8,000

              Allowance for uncollectible accounts                $8,000

           (To record uncollectible account expense)  

                           Waco Travel Agency

                                  Balance Sheet

Current assets

Account receivable                                        $93,000  

Less: Allowance for uncollectible account ($8,870) ---- ($8,000 + $870)

                                                                        $84,130

Interdepartment Services: Step Method

O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:

Personnel Payroll Housewares Clothing Furniture
Direct department cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750
Number of employees 5 4 8 16 4
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100

(a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.)
Answer %


(b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.)
Answer %

(c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method.

Do not round until your final answers. Round answers to the nearest dollar.

Service Departments Producing Departments
Payroll Personnel Housewares Clothing Furniture
Total costs $Answer $Answer $Answer $Answer $Answe

Answers

Answer:

O'Brian's Department Stores

a) Determination of the percentage of total personnel department services that was provided to the Payroll department

Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage.  The personnel employees are not included in this calculation.

= 4/32 x 100 = 12.5%

b) Percentage of total payroll department services provided to the personnel department.  Since the basis is the gross payroll, we can use this to calculate the percentage.  The gross payroll of the Payroll department is not included in the calculation.

= $6,000/$42,100 x 100 = 14.3%

c)                          Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

Total cost      $13,800   $6,500    $22,800     $37,400  $24,850  $105,350

Allocation of service departments costs, using the step method:

Personnel      -13,800      1,725          3,450         6,900       1,725       13,800

Payroll              0           -8,225           2,415         3,965        1,845       8,225

Total allocated 0               0          $28,665    $48,265   $28,420 $105,350

Explanation:

a) Data:

                        Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

b) Cost allocation & Calculations:

Personnel (based on the number of employees)

Rate = $13,800/32 = $431.25 per employee

Payroll (based on gross payroll)

Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments

= $8,225/$36,100 = $0.2278 per gross payroll

c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs.  Three methods exist for allocating service departments' costs to the production departments.  The first, which is the simplest, is the direct method.  With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services.  They are not allocated to other service departments.

The second method is the step method.  Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step.  The costs of the next service department with the highest costs are allocated to the remaining departments.  This step is continued until all the service departments' costs have been allocated.  Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.

The Reciprocal method, which is the last method, is the most accurate and complicated method.  This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments.  We may not discuss it further than this.

The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions. Spending category Value (millions) education $320 welfare and Social Security $890 health care $270 defense $120 payments on debt $170* other $240 *This payment covers total interest owed only. Revenue category Value (millions) income tax $800 sales tax $270 corporate tax $300 social insurance $340 GDP in 2010: $7.3 billion Total debt as of 2009: $3.5 billion How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending

Answers

Answer:

$300 million

Explanation:

The computation of debt is shown below:-

But before that we need to determine the following amounts

Total Expenditure = Spending on Education + Spending on Welfare and social security + Spending on Healthcare + Spending on Defense + Payments on Debt + Other Spending

= $320 + $890 + $270 + $120 + $170 + $240

= $2,010 million

Total Revenue = Income Tax + Sales Tax + Corporate Tax + Social Insurance

= $800 + $270 + $300 + $340

= $1710 million

Debt or borrowed amount =Total expenditure - Total revenue

= $2,010 - $1,710

= $300 million

All organizations have a collective sense of purpose, whether it's producing oil or creating the fastest Internet search engine.
A. True
B. False

Answers

Answer:

true

Explanation:

sorry if im wrong

In cell N2, enter a formula using the IF function and a structured reference to determine if Alison Simoneau is eligible for tuition remission.
a. The IF function should first determine if the staff member's Service Years 11 is greater than 1. Remember to use a structured reference to the Service Years column.
b. The function should return the text Eligible if the staff member's Service Years is greater than 1.
c. The function should return the text Not Eligible if the staff member's Service Years is not greater than 1.

Answers

Answer:

In cell N2, enter a formula using the IF function and a structured reference to determine if Alison Simoneau is eligible for tuition remission.

=IF([Service Years]>

a. The IF function should first determine if the staff member’s Service Years is greater than 1. A structured reference to the Service Years column:

=IF([Service Years]>1,

b. The function should return the text Eligible if the staff member’s Service Years is greater than 1.

=IF([Service Years]>1,"Eligible"

c. The function should return the text Not Eligible if the staff member’s Service Years is not greater than 1.

=IF([Service Years]>1,"Eligible","Not Eligible")

Determine the number of widgets that you should try to sell in order to maximize revenue. What is the maximum revenue. Be sure to answer in complete sentences and to include units. Explain how you found the results.

Answers

Answer:

Hello some important parts of your question is missing ( Table ) attached below is the table

Answer : Number of widgets = 50

Explanation:

The number of widgets that you should  sell to maximize revenue can be calculated as

=  ( demand for widgets * price per widget ) - Total cost

from the table:

i) ( 10 * 141 ) - 609 = 1410 - 609 = $801

ii) ( 20 *133 ) - 1103 = 2660 - 1103 =$1557

iii) (30 *126) - 1618 = 3780 - 1618 = $2162

iv) (40*128) - 2109 = 5120 - 2109 =$3011

v) (50*113) - 2603 = 5650 -2603 = $3047

vi) (60*97) - 3111 = 5820 - 3111 = $2709

vii) (70*90) - 3619 = 6300 - 3619 =$2681

viii) ( 80*82) - 4103 = 6560 - 4103 = $2457

ix) (90*79) - 4601 = 7110 - 4601 = $2509

From the calculation above the number of widgets that should be sold in other to maximize revenue is : 50. this is because the revenue made is $3047 which is the highest when compared to other revenues generated

Which of the following is not a remedy Sam Seller may seek under Article 2 if Barney Buyer breaches the sales contract?1. cancel the sales contract 2. damages for lost profits 3. incidental damages 4. stop shipment before Barney receives the goods 5. secured transaction

Answers

Answer:

Option D. Stop shipment before barney receives the good.

Explanation:

The reason is that Article 2 says that the claim must not exceed

The amount of profit lost due to breach of contract by the other party to contract (Option 2).The incidental damages caused by the breach of contract (Option 3).Other losses which the party to contract despite knowing has breached the contract.

This means all the options are claimable but the option 4, stopping the shipment before barney receives the good is not a remedy as it is not a loss.

Furthermore, the secured transaction is a valid claim if the other party breaches the contract. The other party is liable to return the the consideration received hence it is a valid claim (Option 5).

The cancelation of sales is valid claim for the party because it is the main cause of incidental and profit losses (Option 1).

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