Answer:
$7,667,100
Explanation:
Step 1 : Determine Depletion Rate
Depletion Rate = Cost ÷ Estimated units
= $8,519,000 ÷ 849,300 tons
= $10.03
Step 2 : Determine the Depletion Cost
Depletion Cost = Depletion Rate x units mined
= $10.03 x 764,370 tons
= $7,667,100
Conclusion :
Parscale's cost depletion for the year is $7,667,100
On January 1, 2020, Swifty Corporation established a stock appreciation rights plan for its executives. It entitled them to receive cash at any time during the next four years for the difference between the market price of its common stock and a pre-established price of $20 on 124000 SARs. Current market prices of the stock are as follows:
January 1, 2020 $36 per share
December 31, 2020 39 per share
December 31, 2021 31 per share
December 31, 2022 34 per share
Compensation expense relating to the plan is to be recorded over a four-year period beginning January 1, 2020. On December 31, 2022,50,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2022?
a. $312,000
b. $780,000
c. $1,140,000
d. $2,340,000
Answer:
$620,000
Explanation:
The amount of compensation expense that Korsak should recognize for the year ended December 31, 2022:
= [($34-$20)*124,000*3/4] - [($31-$20)*124,000*2/4]
= [$14*124,000*3/4] - [$11*124,000*2/4]
= $1,302,000 - $682,000
= $620,000
Note: The answer is not included in the option above
Hunter Turf Equipment is a southeastern company that makes landscaping equipment. The company is looking at customer trends, its competitors, and the economy to see if there are any threats or opportunities on the horizon. It has also examined its production policies and sales histories to determine its strengths and weaknesses. Hustler Turf Equipment is conducting a(n):
Answer:
SWOT analysis
Explanation:
SWOT analysis is a strategic tool that helps an organization to identify external scenarios and adapt its internal environment. This tool allows the company to identify its strengths and weaknesses and the opportunities and threats that involve the external environment.
The SWOT matrix is very effective for organizations to identify relevant variables that can positively or negatively interfere with their positioning in the market. By identifying strengths and weaknesses, the company is able to better exploit its potential and correct problems to achieve continuous improvement of its processes. And the analysis of the external environment, threats and opportunities, helps the company to identify trends in consumption, investment and growth opportunities, planning for economic crises for example.
Company A and Company B are a duopoly, an oligopoly of only two firms. Neither company advertises its product and both firms earn $10 million in profits. Company A is considering increases to its advertising budget which would raise its profits to $12 million. Below is the payoff matrix for both companies and their decision as to whether to advertise or not.
Company A' Profits
Don't Adevertise Advertise
Don't Advertise A: $10 million A: $12 million
B: $10 million B: $6 million
Company B's Profits A: $6 million A: $8 million
B: $12 million B: $8 million
If Company A increases its advertising budget, Company B should:____.
A. Shut down.
B. Continue to not advertise.
C. Increase its advertising budget.
D. Increase the price it charges to increase profits.
Answer: C. Increase its advertising budget.
Explanation:
If Company A advertises and Company B does not, Company B profits are $6 million compared to $12 million for Company A. If both company advertise, they both have a profit of $8 million.
It is therefore important that when A advertises, B should advertise as well. This is why B should increase its advertising budget when A does because it will lead to them having a better income than they would should A advertise more.
Help please !!!
Thanks in advance.
The purchase of equity securities is classified as an investing activity.
True? or false ?
A labor crew for placing concrete consists of one labor foreman at $26.09 per hour, one cement finisher at $29.30 per hour, 6 laborers at $24.45 per hour each, and one equipment operator at $34.5 per hour. Such a crew, called a C20 crew, can place 178 cubic yards of concrete per 8-hour day. Determine the cost per day of labor for the C20 crew. The cost per day is determined to be $ _______.
Answer:
Total cost per day= $1,892.72
Explanation:
Giving the following information:
Foreman= 26.09 per hour
Cement finisher= 29.3 per hour
Labor= 24.45 per hour
Equipment operator= 34.5 per hour
To calculate the total cost for one day of work, we need to multiply the hourly rate by the total number of hours.
Total cost per day= 26.09*8 + 29.3*8 + (24.45*6)*8 + 34.5*8
Total cost per day= $1,892.72
Nelson Company experienced the following transactions during Year 1, its first year in operation. Acquired $6,200 cash by issuing common stock. Provided $2,500 of services on account. Paid $1,650 cash for operating expenses. Collected $2,000 of cash from customers in partial settlement of its accounts receivable. Paid a $110 cash dividend to stockholders. What is the balance of the retained earnings that will be reported on the balance sheet as of December 31, Year 1
Answer:
$740
Explanation:
The balance of retained earnings that would be reported on the balance sheet as of December 31 year 1 is computed as;
= Services provided on account - cash paid for operating expenses - cash dividend paid to stockholders
= $2,500 - $1,650 - $110
= $740
21. Prepare general journal entries on December 31 to record the following unrelated year-end adjustments. No explanations are needed. (30 points) a. Estimated depreciation on equipment for the year, $4,500. b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $3080 of unexpired insurance. c. The Prepaid Rent account has a $2,400 debit balance before adjustment (4 months of rent). One month of rent has been used. d. The company has three office employees who each earn $100 per day for a five-day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31. e. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account. f. The company collects rent monthly from its tenants. One tenant whose rent is $1,000 per month has not paid his rent for December.
Answer:
Journal Entries:
a. Debit Depreciation Expense $4,500
Credit Accumulated Depreciation $4,500
To record depreciation expense for the year.
b. Debit Insurance Expense $600
Credit Prepaid Insurance $600
To record expired insurance expense.
c. Debit Rent Expense $600
Credit Prepaid Rent $600
To record used rent expense.
d. Debit Wages Expense $900
Credit Wages Payable $900
To accrue wages unpaid.
e. Debit Unearned Rent $1,400
Credit Rent Revenue $1,400
To record earned rent revenue for November and December.
f. Debit Rent Receivable $1,000
Credit Rent Revenue $1,000
To record rent revenue due.
Explanation:
1) Data and Analysis:
a. Depreciation Expense $4,500 Accumulated Depreciation $4,500
b. Insurance Expense $600 Prepaid Insurance $600 ($3,680 - $3,080)
c. Rent Expense $600 Prepaid Rent $600 ($2,400/4)
d. Wages Expense $900 Wages Payable $900 ($100*3*3)
e. Unearned Rent $1,400 Rent Revenue $1,400 ($700 * 2 for Nov. and Dec.)
f. Rent Receivable $1,000 Rent Revenue $1,000
Brokers' calls:________
a. are funds used by individuals who wish to buy stocks on margin.
b. are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
c. carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.
d. are funds used by individuals who wish to buy stocks on margin and are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.
e. are funds used by individuals who wish to buy stocks on margin and carry a rate that is usually about one percentage point lower than the rate on U.S. T-bills.
Answer:
D.
Explanation:
A brokers' call can be defined as the interest rate that banks charge on loans given to brokerage firms. It is also known as call loan rates. The brokers use this loan to fund their traders' margin account.
The statements correct about brokers' calls from the given options is D. The broker's calls are funds used by both individuals and broker from the bank. Individuals use this loan to buy stocks whereas brokers borrow with an agreement to repay immediately.
Therefore, option D is correct.
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.40 per guest check-in, $21.00 per room cleaning, and $4.00 per served meal (not including food). Julie Stone visited the hotel for a 6-night stay. Julie had 3 meals in the hotel during the visit. Determine the total monthly activity-based cost for Washington during the month.
Answer:
Total allocated cost= $146.4
Explanation:
Giving the following information:
Julie Stone visited the hotel for a 6-night stay.
Julie had 3 meals in the hotel during the visit.
guest check-in= $8.40 per guest check-in
room cleaning= $21.00 per room cleaning
meal service= $4.00 per served meal
To allocate costs based on the activity, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
guest check-in= 8.40*1= 8.4
room cleaning= 21.00*6= 126
meal service= 4.00*3= 12
Total allocated cost= $146.4
Camrim Inc., experienced the following events in 2018, its first year of operation: Performed counseling services for $42,700 on account. On May 1, 2018, paid $8,800 cash to rent office space for the next 18 months.. Adjusted the accounts to reflect the amount of rent used during the year. Based on these three events, net income is $___________
Answer: $36833
Explanation:
The net income will be calculated as:
Service revenue = $42700
Less: Debt expense = $8800 × 8/12 = $5867
Net income = $42700 - $5867 = $36833.
Therefore, based on the information and the calculation solved above, we can see that the net income is $36833
Equipment costing $37,200 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,200 per year. On June 30, the company lends its chief financial officer $42,000; principal and interest at 5% are due in one year. On October 1, the company receives $12,800 from a customer for a one-year property insurance policy. Deferred Revenue is credited. Required: Indicated by how much net income in the income statement is higher or lower if the adjustment is not recorded. (Do not round intermediate calculations.)
Answer:
$16000
Explanation:
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 4.6 pounds $2.50 per pound $11.50
Direct labor 0.2 hours $18.00 per hour $3.60
During the most recent month, the following activity was recorded:
a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.
b. All of the material purchased was used to produce 4,000 units of Zoom.
c. 750 hours of direct labor time were recorded at a total labor cost of $14,925.
Required:
Compute the materials price and quantity variances for the month.
Answer:
AQ = Actual quantity = 20,000 pounds
AP = Actual price = $2.35 per pound.
SQ = Standard quantity = 4,000 units*4.6 pounds per unit = 18,400 pounds
SP = Standard price = $2.50 per unit
AH = Actual hours = 750 hours.
AR = Actual rate = Total actual cost/Actual hours = $14,925/750 hours = $19.90.
SH= Standard hours = 0.2 hours per unit*4,000 units = 800 hours.
SR = Standard rate = $18 per hour
Materials price variance = (AQ *AP) - (AQ *SP) =
Materials price variance = (20,000*$2.35) - (20,000 *$2.50)
Materials price variance = $47,000 - $50,000
Materials price variance = $3,000 (F)
Material quantity variance = (AQ*SP) - (SQ*SP)
Material quantity variance = (20,000*$2.50) - (18,400*$2.50)
Material quantity variance = $50,000 - $46,000
Material quantity variance = $4,000 (U)
ranite Slab LLC was recently formed with the following members: Capital/ Name Tax Year-End Profits % Nelson Black December 31 22.0% Brittany Jones December 31 24.0% Lone Pine LLC June 30 4.5% Red Spot Inc. October 31 4.5% Pale Rock Inc. September 30 4.5% Thunder Ridge LLC July 31 4.5% Alpensee LLC March 31 4.5% Lakewood Inc. June 30 4.5% Streamside LLC October 31 4.5% Burnt Fork Inc. October 31 4.5% Snowy Ridge LP June 30 4.5% Whitewater LP October 31 4.5% Straw Hat LLC January 31 4.5% Wildfire Inc. September 30 4.5% What is the required taxable year-end for Granite Slab LLC
Answer: December 31
Explanation:
Granite Slab should adopt the year-end of its principal partners.
A principal partner is one who owns 5% or more of a company's stock.
There are therefore two (2) principal partners here: Nelson Black and Brittany Jones as they own 22% and 24% respectively.
Both of these partners have December 31 as their year end so Granite Slab should adopt this date as well.
On January 1, 2021, Jeans-R-Us Company awarded 15 million of its $1 par common shares to key executives, subject to forfeiture if employment is terminated within three years. On the date of the grant, the stock had a market price of $3 per share.
Required:
1. Determine the total compensation cost pertaining to the restricted shares.
2. Prepare the appropriate journal entry to record the award on January 1, 2021.
3. Prepare the journal entry and record compensation expense on December 31, 2021.
Answer and Explanation:
The computation and journal entries are shown below:
1.. The total compensation cost is
= 15 million × $3 per share
= $45 million
2.
On Jan 1
Deferred compensation expense $45 million
To Common Stock $15 million
To Additional paid in capital $30 million
(Being expense is recorded)
3.
On Dec 31
Compensation expense ($45 ÷ 3) $15 million
To Deferred compensation expense $15 million
(Being expense is recorded)
Ignacio and Perla are married and both are government employees. They contribute 22) money to various organizations each year and file a joint return. Their adjusted gross income for 2018 is $100,000. They contributed to the following organizations in 2018:
$3,500 to the World Wildlife Foundation
$10,000 to the Salvation Army
$2,000 to a local city council candidate
$11,000 to a breast cancer research hospital
Donated clothing to Goodwill. (Ignacio purchased the items for $375, but the thrift shop value of the same items at a local second-hand store is equal to S60.)
How much can Ignacio and Perla deduct as charitable contributions for the year 2018?
A) $26,560.
B) $25,710
C) $26,500.
D) S24,560.
Answer: D. $24,560
Explanation:
The contributions to charity and the clothing to Goodwill can be considered charitable deductions but the goodwill clothing must be value at second-hand value.
= Donation to WWF + Salvation Army + Breast Cancer research + Goodwill
= 3,500 + 10,000 + 11,000 + 60
= $24,560
The interest rate effect of a decrease in the aggregate price level will increase which of the following?
Answer:
Investment spending.
Explanation:
Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
The interest rate effect of a decrease in the aggregate price level will increase investment spending.
New Zealand and Spain each produce apples and plums. New Zealand can produce a maximum of 60 apples or 15 plums or some combination of both. Spain can produce a maximum of 60 apples or 60 plums or some combination of both. If they decide to specialize and trade, the trade rate is 25 apples for 17 plums.a. Which nation should specialize in plums and which should specialize in apples
Answer:
New Zealand should specialize in apples.
Spain should specialize in plums.
Explanation:
As per the given production possibility tables, New Zealand must produce maximum apples in the available resources while Spain is able to produce maximum plums with the given resources. To produce 1 plum, New Zealand requires resources equivalent to 4 apples. This shows that New Zealand needs to specialize in apples for efficient utilization of resources. Although the cost of producing plum and apple is almost equivalent for Spain since, New Zealand is already involved in producing apples, It must go for Plums.
On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bonita Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.
2020 $342,000
2023 $330,700
2021 $329,700
2024 $320,000
2022 $328,700
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.
(c) Prepare the journal entry to record the recognition of fair value for 2021.
Answer:
Following are the responses to the given points:
Explanation:
For point a:
Criteria I
Date: 1-1.2020 Debt Investments [tex]\$3,44,260.74[/tex]
cash [tex]\$3,44,260.74[/tex]
For point b:
Criteria II
Date: 31.12.2020 Interest Account receivable to pay [tex]\$38,400.00 \ \ \ \ \ \ \ \ \ \ 320000\times 12\%[/tex]
Debt Investments [tex]\$3973.93[/tex]
rate of Revenue [tex]\$34,426.07(\$344,261.74 \times 0.10)[/tex]
31.12-2020 Fair Value Adjustment [tex]1713.19[/tex]
Gain or loss - equity unrealized holding [tex]1713.19[/tex]
for point c:
Criteria III
31.12-2021 Interest Account receivable to pay [tex]\$38,400[/tex]
Debt Investments [tex]\$4,371[/tex]
rate of Revenue [tex]\$34,029[/tex]
31.12-2021 Gain or loss - equity unrealized holding [tex]\$7,927.69[/tex]
Fair Value Adjustment [tex]\$7,927.69[/tex]
[tex]329700-335914.50=6214.50+1713.19 =7,927.69[/tex]
Please find the attached table.
Aggie Corporation made a distribution of $571,000 to Rusty Cedar in partial liquidation of the company on December 31 of this year. Rusty, an individual, owns 100 shares (100 percent) of Aggie Corporation. The distribution was in exchange for 50 percent of Rusty’s stock in the company. At the time of the distribution, the shares had a fair market value of $150 per share. Rusty’s income tax basis in the shares was $37 per share. Aggie had total E&P of $8,275,000 at the time of the distribution.
a. What is the amount and character (capital gain or dividend) of any income or gain recognized per share by Rusty as a result of the partial liquidation?
b. Assuming Aggie made no other distributions to Rusty during the year, by what amount does Aggie reduce its total E&P as a result of the partial liquidation?
Answer:
A. $113
B. $571,000
Explanation:
A. Calculation for What is the amount and character (capital gain or dividend)
Using this formula
Capital gain or dividend=Fair market value -Income tax basis
Let plug in the formula
Capital gain or dividend=$150 per share-$37 per share
Capital gain or dividend=$113
Therefore the amount and character (capital gain or dividend) of any income or gain recognized per share by Rusty as a result of the partial liquidation is $113
B. Calculation for the amount that Aggie reduce its total E&P as a result of the partial liquidation
Based on the information given in a situation where the liquidation is been treated as an exchange, it means that Aggie will either lower its E&P by the amount of ($571,000) or by the pro-rata amount of the E&P which is calculated as (50% × $8,275,000 = $4,137,5000).
Therefore the amount that Aggie will reduce its total E&P as a result of the partial liquidation will be the amount of $571,000.
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 700,000 units of product to finished goods. At the end of November, the work in process inventory consists of 180,000 units that are 30% complete with respect to conversion. Beginning inventory had $420,000 of direct materials and $139,000 of conversion cost. The direct material cost added in November is $2,220,000, and the conversion cost added is $3,254,000. Beginning work in process consisted of 60,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 60,000 were from beginning work in process and 640,000 units were started and completed during the period.
Required:
a. Determine the equivalent units of production with respect to direct materials and conversion.
b. Compute both the direct material cost and the conversion cost per equivalent unit.
c. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory.
Answer:
Victory Company
Materials Conversion Total
a. Equivalent units of production: 880,000 754,000
b. Cost per equivalent unit $3.00 $4.50
c. Total cost transferred out $2,100,000 $3,150,000 $5,250,000
Ending Work in Process 540,000 243,000 783,000
Explanation:
a) Data and Calculations:
Units transferred out = 700,000
Ending Work in process = 180,000
Total equivalent units:
Materials Conversion
Units transferred out 700,000 (100%) 700,000 (100%)
Ending Work-in-Process 180,000 (100%) 54,000 (30%)
Total equivalent units 880,000 754,000
Cost of production:
Materials Conversion Total
Beginning Inventory $420,000 $139,000 $559,000
Added in November 2,220,000 3,254,000 5,474,000
Total production costs $2,640,000 $3,393,000 $6,033,000
Cost per equivalent unit:
Materials Conversion
Total production costs $2,640,000 $3,393,000
Total equivalent units 880,000 754,000
Cost per equivalent unit $3.00 $4.50
Cost assigned:
Materials Conversion Total
Units transferred out 700,000 700,000
Cost per equivalent unit $3.00 $4.50
Total cost transferred out $2,100,000 $3,150,000 $5,250,000
Ending Work in Process 540,000 243,000 783,000
Total cost $2,640,000 $3,393,000 $6,033,000
Pizza Express Inc. began the Year 2 accounting period with $2,500 cash, $1,400 of common stock, and $1,100 of retained earnings. Pizza Express was affected by the following accounting events during Year 2:
a. Purchased $3,600 of supplies on account.
b. Earned and collected $12,300 of cash revenue.
c. Paid $2,700 cash on accounts payable.
d. Adjusted the records to reflect the use of supplies. A physical count indicated that $250 of supplies was still on hand on December 31, Year 2.
Required:
Show the effects of the events on the financial statements.
Answer:
Part a
Assets = Increase $3,600
Liabilities = Increase $3,600
Equity = No effect
Part b
Assets = Increase $12,300
Liabilities = No effect
Equity = Increase $12,300
Part c
Assets = Decrease $2,700
Liabilities = Decrease $2,700
Equity = No effect
Part d
Assets = Decrease (with decrease)
Liabilities = No effect
Equity = Decrease (with decrease)
Explanation:
Effects of the events on the financial statements are considered for the impart of transaction on the Assets, Liabilities and Equity as above.
According to the theory of comparative advantage, consumers in all nations can consume more if there are
Answer:
no restrictions on trade
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation." where he asserted that countries can become better off by specializing in what they do or produce best and eliminate trade barriers (restrictions).
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
Hence, according to the theory of comparative advantage, consumers in all nations can consume more if there are no restrictions on trade.
All of the following regarding accounting for Treasury Stock are true except: Multiple Choice Corporations do not record gains or losses on transactions involving their own stock. Treasury Stock receives cash dividends but not stock dividends. Purchasing Treasury Stock reduces the corporation’s assets and equity by equal amounts. Treasury Stock is presented on the balance sheet as a contra equity account. Treasury Stock does not have voting rights.
Answer:
Treasury Stock receives cash dividends but not stock dividends.
Explanation:
Shares owned by the issuing company itself are considered as Treasury Stock. Prime reason company buys their own stock to reduce dividend expense and save cash. So, it does not make any sense to pay dividends to Treasury stock.
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $31,000 at the beginning of the month and $21,500 at the end of the month. During the month, the Corporation incurred direct materials cost of $56,800 and direct labor cost of $30,700. The actual manufacturing overhead cost incurred was $53,900. The manufacturing overhead cost applied to Work in Process was $52,800. The cost of goods manufactured for June was:
Answer:
$150,900
Explanation:
Calculation for what The cost of goods manufactured for June was:
Direct materials $56,800
Direct labor $30,700
Manufacturing overhead applied to work in process $53,900
Total manufacturing costs $141,400
Add: Beginning work in process inventory $31,000
$172,400
Less: Ending work in process inventory $21,500
Cost of goods manufactured $150,900
($172,400-$21,500)
Therefore The cost of goods manufactured for June was:$150,900
The Zoe Corporation has the following information for the month of March: Cost of direct materials used in production $17,609 Direct labor 29,728 Factory overhead 33,806 Work in process inventory, March 1 24,579 Work in process inventory, March 31 20,303 Finished goods inventory, March 1 24,179 Finished goods inventory, March 31 23,367 a. Determine the cost of goods manufactured. $fill in the blank 1 b. Determine the cost of goods sold. $fill in the blank 2
Answer:
See below
Explanation:
Given the above information,
a.Cost of goods manufactured is computed as;
= Beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
= $24,579 + $17,609 + $29,728 + $33,806 - $20,303
= $85,419
b. Cost of goods sold is computed as;
= Beginning finished inventory + cost of goods manufactured - ending finished inventory
= $24,179 + $85,419 - $23,367
= $86,231
Frozen Ice-cream Corporation (FICC) has the following items for the month of December 2020. Please use this information to answer the following questions. Utilities expense $6,000 Accounts payable $40,000 Prepaid Insurance $3,000 Revenue - Ice-cream sales $180,000 Cash $9,000 Dividends $1,000 Unearned revenue $2,000 Note payable (payable in 5 years) $60,000 Ice-cream inventory $8,500 Retained earnings (December 1, 2018) $17,000 Salaries expense $160,000 Rent expense $12,000 Accounts receivable $4,500 Common stock $500 Equipment $95,000 Income tax rate 25% Question A - FICK's Income Statement (A1): What is FICK's total revenue
Question Completion:
Unearned revenue is assumed to be $1,500 and not $2,000.
Answer:
Frozen Ice-cream Corporation (FICC)
Income Statement for the month of December 2020:
Revenue - Ice-cream sales $180,000
Salaries expense $160,000
Rent expense $12,000
Utilities expense $6,000 178,000
Income before tax $2,000
Income tax (25%) 500
Net Income $1,500
Retained earnings (December 1, 2018) $17,000
Net income $1,500
Dividends $1,000
Retained earnings (December 31, 2018) $17,500
FICC's total revenue is $180,000.
Explanation:
a) Data and Calculations:
Trial Balance
Account Titles Debit Credit
Cash $9,000
Accounts receivable $4,500
Ice-cream inventory $8,500
Prepaid Insurance $3,000
Equipment $95,000
Accounts payable $40,000
Unearned revenue $1,500
Note payable (payable in 5 years) $60,000
Common stock $500
Retained earnings (December 1, 2018) $17,000
Revenue - Ice-cream sales $180,000
Salaries expense $160,000
Rent expense $12,000
Utilities expense $6,000
Dividends $1,000
Totals $299,000 $299,000
Income tax rate 25%
usiness Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the selling price per composite unit. 2. Compute the variable costs per composite unit. 3. Compute the break-even point in composite units. 4. Compute the number of units of each product that w
Answer:
1. Selling price per composite unit = Price of desk unit * (Ratio of desk unit) + Price of chair * (Ratio of chair)
= $1250*(3) + $500*(2)
= $3,750 + $1,000
= $4,750
2. Variable costs per composite unit = Variable cost per desk unit * (Ratio of desk unit) + Variable cost per chair * (Ratio of chair)
= $750*(3) + $250*(2)
= $2,250 + $500
= $2,750
3. Break even point in composite units = Fixed costs / (Composite selling price - Composite variable cost)
= $120,000 / ($4750 - $2750)
= $120,000 / $2000
= 60 units
4. Number desk units sold at break even point = 60 composite units* 3 per composite unit = 180 units
Number of chairs sold at break even point = 60 composite units * 2 per composite unit = 120 units
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.4 grams $ 2.00 per gram Direct labor 0.5 hours $ 20.00 per hour Variable overhead 0.5 hours $ 7.00 per hour The company produced 5,200 units in January using 39,310 grams of direct material and 2,380 direct labor-hours. During the month, the company purchased 44,400 grams of the direct material at $1.70 per gram. The actual direct labor rate was $19.30 per hour and the actual variable overhead rate was $6.80 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is:
Answer:
Direct labor rate variance= $1,666 favorable
Explanation:
Giving the following information:
The company produced 5,200 units in January using 2,380 direct labor-hours.
The actual direct labor rate was $19.30 per hour
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (20 - 19.3)*2,380
Direct labor rate variance= $1,666 favorable
You are asked to study the causal effect of hours spent on employee trainingâ (measured in hours per worker perâ week) in a manufacturing plant on the productivity of its workersâ (output per worker perâ hour). Required:a. Choose a random group of employees to receive ten hours per week in additional training for a period of four weeks.â Then, estimate the difference in productivity between workers who received the additional training and those that did not. Option _______ best describes this statement.b. Data on hours spent on training a group of ten different employees in a certain day. Option __________ best describes this statement. c. Data on hours spent on training the same employee for seven consecutive days. Option________ best describes this d. Data on hours spent training for a group of ten individual employees for seven consecutive days. Option________ best describes this statement. 1. an observational time series data set. 2. an observational cross â sectional data set. 3. an ideal randomized controlled experiment. 4. an observational panel data set.
Answer:
a. - 3. an ideal randomized controlled experiment
b. - 2. an observational cross a sectional data set.
c. - 1. an observational time series data set.
d. - 4. an observational panel data set.
Explanation:
a. Choose a random group of employees to receive ten hours per week in additional training for a period of four weeks. Then, estimate the difference in productivity between workers who received the additional training and those that did not.
Option 3. an ideal randomized controlled experiment best describes this statement.
b. Data on hours spent on training a group of ten different employees in a certain day.
Option 2. an observational cross â sectional data set best describes this statement.
c. Data on hours spent on training the same employee for seven consecutive days.
Option 1. an observational time series data set best describes this
d. Data on hours spent training for a group of ten individual employees for seven consecutive days.
Option 4. an observational panel data set best describes this statement.
Palpatine runs a facial cream business. He can make 100,000 bottles of facial cream per year and sell them for $3.50 each. It costs Palpatine $250,000 for the raw materials to produce the facial cream. Additionally, he must pay $30,000 annually to rent the factory needed to produce his cream. In order to start his business Palpatine withdrew $200,000 from his own savings account. The bank is currently paying a 3% interest rate on saving accounts. Before Palpatine opened his business he worked as a political consultant where he earned $80,000 per year.
What is the total revenue Palpatine earns in a year?
What are the explicit costs Palpatine incurs while producing bottles of facial cream? [2 Points]
(c) What are the implicit costs Palpatine incurs while producing bottles of facial cream? [2 Points]
(d) What is the amount of Palpatine’s accounting profit? [2 Points]
(e) What is the amount of Palpatine’s economic profit?
Answer:
a. Total revenue:
= Bottles produced * selling price
= 100,000 * 3.50
= $350,000
b. Explicit costs:
Actual costs incurred.
= Raw materials + Rent + investment
= 250,000 + 30,000 + 200,000
= $480,000
c. Implicit costs:
Opportunity costs of going into the facial cream business.
= Amount he would have earned as interest + political consultant salary
= (3% * 200,000) + 80,000
= 6,000 + 80,000
= $86,000
d. Accounting profit:
= Revenue - explicit costs
= 350,000 - 480,000
= -$130,000
e. Economic profit
= Revenue - explicit costs - implicit costs
= 350,000 - 480,000 - 86,000
= -$216,000