ou are planning to save for retirement over the next 30 years. To do this, you will invest $890 per month in a stock account and $490 per month in a bond account. The return of the stock account is expected to be 10.9 percent, and the bond account will pay 6.9 percent. When you retire, you will combine your money into an account with a return of 7.9 percent. How much can you withdraw each month from your account assuming a 25-year withdrawal period

Answers

Answer 1

Answer:

Monthly withdraw= $23,294.99

Explanation:

Giving the following information:

Stock:

Monthly deposit= $890

Number of periods= 30*12= 360

Interest rate= 0.109 / 12= 0.0091

Bond:

Monthly deposit= $490

Number of periods= 30*12= 360

Interest rate= 0.069 / 12= 0.00575

First, we need to calculate the amount of money collected at the moment of retirement. We need to use the following formula on each investment:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {890*[(1.0091^360) - 1]} / 0.0091

FV= $2,452,918.1

Bond:

FV= {490*[(1.00575^360) - 1]} / 0.00575

FV= $586,123.47

Total FV= 2,452,918.1 + 586,123.47

Total FV= $3,039,041.57

Now, the monthly withdrawal for 25 years:

Number of periods= 25*12= 300

Interest rate= 0.079 / 12= 0.0066

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (3,039,041.57*0.0066) / [1 - (1.0066^-300)]

Monthly withdraw= $23,294.99


Related Questions

Cincinnati Exporters wants to raise $40 million to expand its business. To accomplish this, it plans to sell 22-year, $1,000 face value, semiannual coupon bonds. The bonds will be priced to yield 6.85 percent and coupon rate of 5.72 percent. What is the minimum number of bonds it must sell to raise the money it needs

Answers

Answer:

Minimum number of units to be issued = 45,791.4 units

Explanation:

The units of the bonds to be sold to raise the money equals to the price of the bonds divided by the sum to be raised

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

Semi-annual coupon rate = 5.72/2 = 2.86 %

Semi-annual Interest payment =( 2.86 %×$1000)= $28.6

Semi annual yield = 6.85%/2 = 3.42%

PV of interest payment  

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield -3.42%, n- no of periods- 2 × 22 = 44 periods

= 28.6× (1-(1.0342)^(-44)/0.0342)= 645.82

 

Step 2  

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 7, r- 4.5%  

= 1,000 × (1+0.0342)^(-2×22)

= 1000 × 1.0342^(-44)= 227.7

Step 3

Price of bond = PV of interest payment + PV of RV

645.82 + 227.7= 873.525

Minimum number of units to be issued = $40 million/873.5= 45,791.4 units

 

Minimum number of units to be issued = 45,791.4 units

g Kally goes to the grocery store each week looking to purchase items that will give her as much utility as possible, given her $100 budget. Last week apples were priced at $4.50 each, and Kally purchased 3 apples. This week apples are on sale for $2.50 each, while all other prices have remained the same, and Kally chooses to purchase 7 apples. Given this information, plot Kally's demand curve for apples.

Answers

Answer:

Please check the attached image for the graph

Explanation:

The demand curve is a curve that shows the various quantities of a good that is purchased at different prices.

The demand curve is downward sloping due to the inverse relationship between price and quantity demanded. The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This is known as the law of demand.

It can be seen that the quantity demanded of apples increased from 3 to 7 when price reduced to $2.50

On the demand curve, price is on the vertical axis, while quantity demanded is on the horizontal axis

Acquired $70,000 cash from the issue of common stock. Purchased $61,000 of inventory on account. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. Sold inventory on account that cost $51,000 for $97,000. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. Collected $79,540 cash from accounts receivable. Paid $56,200 cash on accounts payable. Paid $3,020 for advertising expense. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Answers

Answer:

Net Income = $33,820

Assets = Liabilities + Stockholders' Equity = $108,620

Explanation:

Note: This question is not complete as the introductory paragraph and the numbering are omitted. The complete question is therefore provided before answering the question as follows:

The Pet Store experienced the following events for the Year 1 accounting period:

1. Acquired $70,000 cash from the issue of common stock.

2. Purchased $61,000 of inventory on account.

3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash.

4. Sold inventory on account that cost $51,000 for $97,000.

5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost.

6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320.

7. Collected $79,540 cash from accounts receivable.

8. Paid $56,200 cash on accounts payable.

9. Paid $3,020 for advertising expense.

10. Paid $4,050 cash for insurance expense.

Required:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

The explanation of the answer is now given as follows:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

Period costs are costs that include selling and asministrative costs which are not related to cost of producing a product.

Product costs can be described as costs of creating or producing a product that is meant for sale to customers.

Therefore, we have:

Event         Cost  

  1 .              NA

  2.              Product costs

  3.              Product costs

  4.              NA

  5.              NA

  6.              NA

  7.              NA

  8.              NA

  9.              Period costs

 10.              Period costs

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Note: See the attache excel file for the horizontal statements.

In the attached excel file, Retained Earnings is equal to the balance of the Net Income which is equal to $33,820.

Under the horizontal statements in the attached excel, an evidence to show that Assets is equal to Liabilities Plus Stockholders' Equity. That is:

Assets = Liabilities + Stockholders' Equity = $108,620

You have $B in your bank account. You are asked if you would like to participate in a bet in which, if you win, your bank account will become $W. However, if you lose, your bank account will contain only $L. You win the bet with probability pw. How large should pw be to accept the bet? (

Answers

Answer:

Pw = ( B - L ) / ( W-L )

Explanation:

pW  + pL = 1 ------ ( 2 )

Expected value after placing bet = W*pW + L*pL  ------ ( 2 )

pL = ( 1 - pW ) from equation 1

rewrite equation 2

W*pW + L*( 1 - pW ) ------ (3)

The condition to accept bet is ; W*pW + L*( 1 - pW ) > $B

= W*pW + L - LpW > $B  ( factorize )

= ( W - L ) * pW + L > $B

hence the value of Pw = ( B - L ) / ( W-L )

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $71,000 to an employee of the company and received back a one-year, 9 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.

Answers

Answer:

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

Dec 31, 2017

Dr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $6,390

Cr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

Explanation:

Preparation of the journal entries that Smart Solutions Inc. would record

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

(Being To record given loan to employee and receipt a note)

Dec 31, 2017

Dr Interest receivable $3,197

(71000*9%*6/12)

Cr Interest revenue $3,197

(Being To record interest accrued)

Jul 1, 2018

Dr Cash $6,390

(3197+3197)

Cr Interest receivable $3,197

Cr Interest revenue $3,197

(71000*9%*6/12)

(Being To record receipt of the interest on maturity date)

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

(Being To record receipt of the full principal)

at the best answer for the question
The selling of goods and/or services to a customer is called

A.Service Industry
B.Food Service
C.Purchasing
D.Retail

Answers

Answer:

The correct answer is D. Retail.

Explanation:

Retail is the sale to the final consumer of goods and services. It is a sector formed by different branches (such as the food industry, the fashion industry, the home industry, etc.), which constitutes the last link in the supply chain that goes from the manufacturer to the consumer, it is In other words, it is the culmination of the process of production of goods and services, when they reach the consumer. This sale is usually carried out in stores, supermarkets, pharmacies, internet platforms and any other place where goods and services can be offered to final recipients.

define hedge fund economics.​

Answers

Answer:

Hedge fund are financial partnerships that use pooled funds and employ different strategies to earn active returns for thier investors.. Hedge fund include long-short equity, market neutral, volatility arbitrage and merger arbitrage. They are generally only accessible to accredited investors

The aggregate demand aggregate supply mode is quite useful tool for us to understand the economy. So far, we saw only one change at a time, however, in reality, there can be multiple shocks at the same time. The economy was in long run equilibrium. Assuming all else equal, world scientists collaborated to invent a vaccine for everyone to be safe from deadly virus, raising productivity. This makes consumers and businesses optimist about the economy. At the same time, commodity market, namely oil market is calm, maintaining a stable supply.
1. Given above scenario, what do you think will happen to the LRAS, SRAS and AD curves in each in short run?
2. And what would happen to price level and output in the economy?
3. What about in long run?

Answers

Answer:

Explained below

Explanation:

1) From the question, we can deduce that in the short run, there will likely be news of the discovery/invention of a super vaccine which will make the consumers and the businesses to be optimistic about the future of the economy. Therefore, this will in turn lead to an increase in consumption by consumers and thus also lead to an producers making an increase in investment.

2) From answer 1 above, since there is an increase in consumption as well as investment, this will in turn also lead to an increase in the aggregate demand of the economy. Whereas, we are told that the oil market is calm and therefore we can say it does not have an effect on the supply curve.

From the first image attached, increase in the aggregate demand led to an increase in price level from point P to P1 on the y-axis while output output level increased from point Y to point Y1 on the x-axis.

3) In the long run, due to the increase in demand in the short run that makes the supply curve shift to its right, it means the producers will have more of the goods produced. This will in turn reduce the price to its initial level and also increase the output level. From the second diagram, this will lead to a shift long run aggregate supply from LRAS to LRAS1 on the x-axis.

The BX11160 company has provided its contribution format income statement for a given month. Sales (8,000 units) $ 440,000 Variable expenses 280,000 Contribution margin 160,000 Fixed expenses 103,500 Net operating income $ 56,500 If the BX11160 company sells 7,900 units next month, how much would its net operating income expected to be next month? (Do not round intermediate calculations.)

Answers

Answer:

Net operating income= $48,500

Explanation:

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= 160,000 / 8,000

unitary contribution margin= $20

Now, the net income for 7,600 units:

Contribution margin= 7,600*20= 152,000

Fixed expenses= (103,500)

Net operating income= $48,500

A company establishes a $2,050 petty cash fund on May 2. On May 30, the fund shows $868 in cash along with receipts for the following expenditures: transportation-in, $160; postage expenses, $589; and miscellaneous expenses, $440. The petty cashier could not account for a $7 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $7 and credit Cash for $1,182], and (3) June 1 entry to increase the fund to $2,400.

Answers

Answer:

Explanation:

Petty cash $2,050

Cash $2,050

Merchandise inventory $160

Postage Expense $589

Misc. expenses $440

Credit:

Cash over and short $7

Cash

Petty Cash $350

Cash $350

(2400-2050)

Please help!
Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom. According to O*NET, what are common work contexts for Film and Video Editors? Check all that apply.

(1) extremely bright or inadequate lighting
(2) spend time sitting
(3) exposed to disease or infections
(4) indoors, environmentally controlled
(5) face-to-face discussions
(6) deal with physically aggressive people

Answers

Answer:

BCD is wrong on Edge 2021.| The real Answer is BDE... (Edit)

Explanation:

Using resources from comments on the anwser above (or below) and the bad rating meant that is was wrong. And was also wrong for me.

The REAL ANWSER IS BDE..

Your welcome, have a nice day!

5/28/2021

function of the HR manager is concerned with employing people who
possess the necessary skills, knowledge, and aptitude
O Procurement
Development
O Motivation and compensation
STOS DE
TREI
O Integration​

Answers

Answer:

Integration.

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Thus, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.

The function of the HR manager that is concerned with employing people who possess the necessary skills, knowledge, and aptitude is known as integration. This is usually achieved through a recruitment process, which typically involves advertising a vacant position and accepting applications (resumes) from applicants who meet the minimum requirements.

The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Hopkinsville Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total

Answers

Answer:

Whole units 14,320

Direct materials equivalent units 13,680

Conversion costs equivalent units 13,332

Explanation:

Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.

Hopkinsville Company Number of Equivalent Units of Production

WHOLE UNITS

Inventory in process, beginning 640

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 13,600

(640+12,960)

Inventory in Process ending 720

Total 14,320

(13,600+720)

DIRECT MATERIALS EQUIVALENT UNITS

Inventory in process, beginning 0

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 12,960

Inventory in Process ending 720

Total 13,680

(12,960+720)

CONVERSION EQUIVALENT UNITS

Inventory in process, beginning 192

[640-(640*70%)]

Started and completed 12,960

(13,600-640)

Transferred to Packing Department 13,152

(192+12,960)

Inventory in Process ending 180

(720*25%)

Total 13,332

(13,152+180)

As of December 31, 2021, Purdue Corporation reported the following: Cash dividends payable $ 29,000 Treasury stock 690,000 Paid-in capital—share repurchase 29,000 Common stock and other paid-in capital accounts 4,900,000 Retained earnings 3,900,000 During 2022, half of the treasury stock was resold for $258,000; net income was $690,000; cash dividends declared were $590,000; and small stock dividends declared and distributed were $418,000. What would shareholders' equity be as of December 31, 2022?

Answers

Answer:

$8,542,000

Explanation:

Stockholder's equity is computed as seen below;

Common stock and paid in capital

$4,900,000

Retained earnings

$3,900,000

Treasury stock

($258,000)

Total stockholder's equity

$8,542,000

Therefore the shareholder equity basis as of Dec 31 2022 is $8,542,000

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

Answers

Answer:

$836.08 per month

Explanation:

In order to calculate Cindy's new monthly rent, we would simply need to divide the renter's insurance by 12 since there are 12 months in a year. and then add that product to her monthly rent like so...

565.00 / 12 = 47.08

789 + 47.08 = 836.08

Finally, we can see that Cindy's new rent after including the renters insurance would be $836.08 per month

Why are the incentives of a supplier the opposite of the incentives of a demander

Answers

Answer:

The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.

A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per year for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today

Answers

Answer: $70

Explanation:

Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price

Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)

= (3.50 * 1.30³ * 1.04) / (13% - 4%)

= $88.856

Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴

= $69.97

= $70

Lyon Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $100,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing A 1,500 $10,000 $2,500 $15,000 B 2,500 $30,000 $3,000 $35,000 C 2,000 $20,000 $4,000 $25,000 D 3,000 $40,000 $6,000 $45,000 If B is processed further, profits will: Group of answer choices

Answers

Answer:

Increase by $2,000.

Explanation:

Calculation to determine what the profit will be if B is processed further,

First step is to calculate the Inremental Revenue

Inremental Revenue,=

$35,000 - $30,000

Inremental Revenue = $5,000

Now let calculate B profit if processed further

Using this formula

B profit if processed further=Inremental Revenue- Incremental Cost

Let plug in the formula

B profit if processed further=$5,000-$3,000

B profit if processed further= $2,000 Increase

Therefore If B is processed further, profits will Increase by $2,000.

our community has a total of approximately 100,000 households. What percentage of households would be potential customers for The Shoe Hut? What percentage of households would be potential customers for Star's Coffee and Teas?

Answers

Answer:

Your community has a total of approximately 100,000 households. ... What percentage of households would be potential customers for Star's Coffee and Teas? approximately ... The Shoe Hut Star's Coffee and Teas has a lower barrier to entry

Explanation:

15. Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the year; and $500 million in assets, 40 million in debt, and 18 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.30 per share. Assuming that the fund carries no debt, and that the total expense ratio is 0.75%, what is the rate of return on the fund

Answers

Answer:

12.09%.

Explanation:

Calculation to determine the rate of return on the fund

First step is to calculate the beginning year NAV

Beginning year NAV = ($400 million assets - 50 million debt) / 15 million shares

Beginning year NAV = 23.33

Second step is to calculate the ending year NAV

Ending year NAV = ($500 million assets - (500*0.75% expense) - 40 million debt] / 18 million shares

Ending year NAV =[456.25/18 million shares]

Ending year NAV =25.35

Now let calculate the return using this formula

Return = (Ending NAV -beginning NAV + Capital gain + income) / Beginning NAV)

Let plug in the formula

Return = (25.35-23.33+0.30+0.50)/23.33

Return = 12.09%

Therefore the rate of return on the fund is 12.09%

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.

Answers

Answer:

see below

Explanation:

Given that cost incurred = $457,200

Overhead

= $457,200 - $433,200

define return( rate of return).​

Answers

Answer:

its returning the rate that was given out

i guess i jus gave it a try

Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units. Current Projected Demand 78,000 units 71,000 units Selling price $9.00 $9.75 Incremental cost per unit $6.80 $6.80 Would you recommend the 75-cent price increase

Answers

Answer:

Yes, reason been that operating profits increase

Explanation:

Calculation to determine whether

Incremental analysis you would recommend the 75-cent price

Current Projected

Incremental revenue $702,000 $692,250

(78,000 units*$9.00=$702,000)

(71,000*$9.75=$692,250)

Incremental cost -$537,200 -$482,800

(78,000 units*$6.80=$537,200)

(71,000*$6.80=$482,800)

Incremental Profit (loss) $164,800 $209,450

($702,000-537,200)

($692,250-$482,800)

Profit increase by($209,450 -$164,800)

Profit increase by= $44,650

Based on the above calculation I would recommend the 75-cent price increase reason been that operating profits increase.

An example of two way communication

Answers

Answer:

Radio, telephone, and computer-aided dispatch systems etc.

Explanation:

Hope it helps,

Pls mark me as the brainliest

Thank you

Amrik started a business on 1 January 2017 and purchased a machine costing $18 000. He decided to depreciate the machine at 20% per annum using the reducing (diminishing) balance method. No depreciation was to be charged in the year of disposal. The machine was up sold for \$13 30 300 on 1 July 2018. What was the profit or loss on the sale of the machine? A Loss $1100 B Loss $4700 C Profit $1780 D Profit $2500 ОА Ов Ос OD

Answers

Answer: A. Loss $1,100

Explanation:

Value at the end of the first year after depreciation:

= 18,000 * (1 - 20%)

= $14,400

No depreciation was charged in the year of sale which is 2018 so only a year of depreciation applies.

Profit (loss) = Sales price - Net book value

= 13,300 - 14,400

= -$1,100

Cootributions of political institutions​

Answers

Answer:

Contributions of political institutions are diverse, and very important for any society.

Explanation:

Institutions contribute to the law and order of a nation. They also help define and determine the government structure of a place. Institutions also promote economic development by incentivizing investment if certain specific institutions are in place, like property rights enforcement, and impartial laws. In fact, this last aspects has been explored at length by economists like Amartya Sen and Daron Acemoglu.

During Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. Multiple Choice, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 100,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 54% complete with respect to conversion. At the end of March, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 29% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.

Answers

Answer:

Computing the equivalent units using the weighted-average method:

                                    Materials       Conversion

Total equivalent units    129,000          108,410

Explanation:

a) Data and Calculations:

Beginning inventory = 20,000 units

Degree of completion (Materials 100%, Conversion 54%)

Units started and completed in March = 100,000

Units transferred out = 120,000

Ending inventory = 29,000 units

Degree of completion (Materials 100%, Conversion 29%)

Total equivalent units             Materials                  Conversion

Units started & completed     100,000 (100%)       100,000 (100%)

Units in Ending Inventory        29,000 (100%)            8,410 (29%)  

Total equivalent units            129,000                     108,410

b) In computing the equivalent units of production, the weighted-average method takes into account the units started and completed within the period and the ending work in process.  This is unlike the FIFO method, which considers the units completed in the beginning work-in-process during the current period, the units started and completed, and the ending work-in-process inventory based on their various degrees of completion.

The customer gives you two $100 bills, two $50 bills, and one $20 bill for a clothing purchase totaling $312.69. (this is for customer service)

Answers

Answer:

It is more than enough money

Explanation:

Swifty Hardware reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 31,000 $ 21,500 Cost of goods purchased 203,500 153,000 Cost of goods available for sale 234,500 174,500 Less: Ending inventory 35,000 31,000 Cost of goods sold $199,500 $143,500 Swifty made two errors: 1. 2021 ending inventory was overstated by $3,600. 2. 2022 ending inventory was understated by $6,550. Compute the correct cost of goods sold for each year. 2022 2021 Cost of goods sold

Answers

Answer:

See below

Explanation:

1. Correct amount of cost of goods sold 2022

= beginning inventory + cost of goods purchased - correct ending inventory

= $31,000 + $203,500 - ($35,000 - $6,550)

= $234,500 - $28,450

= $206,050

2.Correct amount of cost of goods sold 2021

= $21,500 + $153,000 - ($31,000 - $3,600)

= $139,900

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,125. Fragmental collected the entire $9,000 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:

Answers

Answer:

Debit unearned rent for $3,375

........Credit rent revenue for $3,375

Explanation:

The adjusting entry made by Fragmental Co. on December 31 is calculated as;

Number of months from October 1st to December 31st = 3 months

Rent revenue earned for 3 months = $1,125 × 3 = $3,375

Therefore, the adjusting entry would be;

Debit unearned rent for $3,375

..........Credit rent revenue for $3,375

The adjusting entry made by Fragmental Co. on December 31 would be a debit to Unearned Rent and a credit to Rent Revenue for $3,450. The correct option is d.

$3,450 in unearned rent a/c Dr.

$3,450 in rent revenue.

Unearned rent is deducted because it is the company's liability. The value of unearned rent is reduced due to the company's adjustment of unearned rent into rent income, and a fall in the value of unearned rent is always debited because it is a liability.

Rent revenue is credited since it is a company revenue/gain, and all company revenue/gains are always recognised in the books of accounts.

Learn more about rent revenue, here:

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The question is incomplete, but the complete question most probably was:

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,150. Fragmental collected the entire $9,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be:

Multiple Choice

a)A debit to Rent Revenue and a credit to Cash for $3,450.

b)A debit to Rent Revenue and a credit to Unearned Rent for $3,450.

c)A debit to Cash and a credit to Rent Revenue for $9,200.

d)A debit to Unearned Rent and a credit to Rent Revenue for $3,450.

e)A debit to Unearned Rent and a credit to Rent Revenue for $5,750

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