Answer:
See below
Explanation:
As a manager of a service department in an organization, I am responsible for the overall results of my employees. To make work and life easier for my employees, their job requirements would be formally documented. This is to enable them know the step by step responsibilities required of each employees. This will also reduce the time taken to ask questions from the manager as all job requirements have been clearly spelt out and documented.
Again, when job responsibilities are formally written, it will enable employees ask questions where they are in doubt as it pertains to their roles. Moreover, each employees would be held accountable for his or her performance in line with the documented job requirements.
When job roles are documented, the possibility of employees hitting into production hours will be greatly reduced because each employees already know what to do .
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.
Rent for the month $700 Monthly take-home salary $2,735
Spending for food $620 Cash in checking account $560
Savings account balance $2,000 Balance of educational loan $2,820
Current value of automobile $9,750 Telephone bill paid for the month $120
Credit card balance $290 Loan payment $190
Auto insurance $340 Household possessions $4,500
Video equipment $2,625 Payment for electricity $145
Lunches/parking at work $235 Donations $270
Personal computer $1,750 Value of stock investment $1,135
Clothing purchase $165 Restaurant spending $185
a. Total assets $
b. Total liabilities $
c. Net worth $
d. Total cash inflows $
e. Total cash outflows $
Answer: should be b
Explanation:
You purchase 150 shares for $70 a share ($10,500), and after a year the price rises to $80. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):
Answer:
57.14%
Explanation:
Missing word "25 percent."
Gain on the stock = (150*$80) - $10,500
Gain on the stock = $ 12,000 - $10,500
Gain on the stock = $1,500
If Margin requirement is 25%, The Margin = 10,500*25% = $2,625
Return on Investment = $1,500/$2,625 * 100 = 0.571429 * 100 = 57.1429% = 57.14%
Brief Exercise 22-02 Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,100 in quarter 2, 14,800 in quarter 3, and 18,800 in quarter 4. Using a sales price of $82 per unit. Prepare the sales budget by quarters for the year ending December 31, 2020.
Answer:
Paige Company
Sales budget by quarters for the year ending December 31, 2020:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
Explanation:
a) Data and Calculations:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Sales in units 10,100 12,100 14,800 18,800 55,800
Unit sales price $82 $82 $82 $82 $82
Sales value $828,200 $992,200 $1,213,600 $1,541,600 $4,575,600
b) Paige's sales budget is a financial plan which computes the expected sales revenue based on an expected selling price and sales unit. Paige uses the sales budget to forecast its future sales revenue. The preparation of the sales budget by Paige Company will ensure the efficient allocation of business resources, thereby saving time, effort, and money.
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price $2 higher per bushel. Do you think that
Answer:
Farmers will not try to reduce the supply.
Explanation:
Price elasticity of demand is the responsiveness of demand against the change in the price of the good.
As per the given data
Elasticity of demand = 0.7
Change in price = $2
It is assumed that the Price was $10
Change in price = $2 / $10 = 0.20
Use the following formula to calculate the change in quatity demand
Elasticity of demand = Change in quantity demand / Change in price
Placing values in the formula
0.7 = Change in quantity demand / 0.2
Change in quantity demand = 0.7 x 0.2 = 0.14 = 14%
As the price of the wheat increased by 20% the demand is decreased by 14%.
In this situation reducing the supply to increase the supply is not feasible because with the increase in price the demand for the wheat will fall which will conflict with their objective. It will reduce the revenue of the farmer's supply, in this case, the farmers try to reduce the supply more than will reduce their revenue more and it will make a loss for the farmers.
Johnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate, based on direct labor hours, to apply overhead to individual jobs.
For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500.
The following information is for September of the current year:
September 1, inventories:
Materials inventory $ 7,500
Work-in-process inventory (All Job A) 31,200
Finished goods inventory 67,000
Material purchases 104,000
Direct materials requisitioned:
Job A 65,000
Job B 33,500
Direct labor hours:
Job A 4,200
Job B 3,500
Labor costs incurred;
Direct labor ($8.50/hour) 65,450
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:
Factory 7,000
Administrative offices 1,800
Total equipment depreciation costs:
Factory 7,500
Administrative offices 1,600
Indirect materials used 12,000
Job A was completed during September and Job B was started but not finished.
Required:
1. What is the total cost of Job A?
2. What is the total factory overhead applied during September?
3. What is the over-applied or under-applied overhead for September?
Answer:
1. $159,200
2. $50,050
3. $4,050 overapplied
Explanation:
1. Calculation for The total cost of Job A?
TOTAL COST OF JOB A
Direct materials requisitioned $ 65,000
Add Direct labor costs $ 35,700
(4,200 hours * $ 8.50 per hour)
Add Applied overheads $ 27,300
(4,200 hours * $ 6.50 per hour)
($617,500/95,000=$ 6.50 per hour)
Add Work in process $ 31,200
Total Cost of Job A $ 159,200
Therefore Total Cost of Job A will be $ 159,200
2. Calculation for What is the total factory overhead applied during September
First step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the total factory overhead applied
Total factory overhead applied =(Job A 4,200+Job B 3,500) × ($6.50)
Total factory overhead applied =7,700×$6.50
Total factory overhead applied =$50,050
Therefore the total factory overhead applied will be $50,050
3. Calculation for What is the over-applied or under-applied overhead for September
First step is to calculate Actual factory overhead
Actual factory overhead :
Indirect labor 13,500
Supervisory salaries 6,000
Rental costs:Factory 7,000
Factory 7,500
Indirect materials used 12,000
Actual factory overhead =$46,000
Second step is to calculate Predetermined Overhead Rate
Predetermined Overhead Rate=$617,500/95,000
Predetermined Overhead Rate=$ 6.50 per hour
Now let calculate the over-applied or under-applied overhead for September
Over-applied or under-applied overhead =(Job A 4,200+Job B 3,500*$ 6.50 per )-$46,000
Over-applied or under-applied overhead =(7,700*$6.50)-$46,000
Over-applied or under-applied overhead =$50,050-$46,000
Over-applied or under-applied overhead =$4,050 overapplied
Therefore the over-applied for September is $4,050
On average, workers in Australia can produce 3 units of agriculture output or 9 units of manufacturing output per day. In Guyana, workers can produce 4 units of agriculture or 8 units of manufacturing output per day.
1. What is the opportunity cost of agricultural output in Canada? units of manufacturing output?
2. What is the opportunity cost of agricultural output in Guyana? units of manufacturing output?
Answer:
3 UNITS OF MANUFACTURING OUTPUT
2 units of manufacturing output?
Explanation:
Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.
the opportunity cost of agricultural output in Australia = manufacturing output per day / agricultural output
= 9/3 = 3
the opportunity cost of agricultural output in Guyana = manufacturing output per day / agricultural output
= 8/4 = 2
The Kreidler Kids company can produce swing sets for $1,000. Kendra wants a new swing set for her children and will pay $1,500 for it. Kendra finds the swing set she wants and pays $1,500 for it from the Kreidler Kids company. The Kreidler Kids company has
Answer:
The Kreidler Kids company has a producer surplus of $500.
Explanation:
Producer surplus can be described or calculated as the amount a producer is willing to supply or sell goods and the actual amount the supplier received.
For this question, the producer surplus can therefore be calculated as follows:
The amount Kreidler Kids company can produce swing sets = $1,000
The amount paid by Kendra for the the swing set = $1,500
Producer surplus = The amount paid by Kendra for the the swing set - The amount Kreidler Kids company can produce swing sets = $1,500 - $1,000 = $500
Therfore, the Kreidler Kids company has a producer surplus of $500.
Review the various strategies and assemble the strategies on the continuum from left to right in the order of magnitude from least to most regarding the level of commitment, amount of risk, the amount of control, and the profit potential.
1. Contract manufacturing
2. Licensing
3. Franchising
4. Foreign Direct Investment
5. Exporting
6. Joint venture/Strategic alliance
Review each example and place it under the appropriate strategy on the continuum.
1. Foreign Customers
2. Bank of America
3. Campbell's Soup
4. KFC
5. Budweiser
6. US Cellular
A. Joint venture/Strategic alliance
B. Foreign Direct Investment
C. Licensing
D. Exporting
E. Franchising
F. Contract manufacturing
Answer:
Following are the solution to this question:
Explanation:
In part A:
The following were it's less to one of the most foreign enterprises for businesses by using danger, contribution, and command.
Licenses Exports Franchises Fabrication of contracts Joint Undertaking/Strategic Arrangement Specific Foreign ProfitsIn part B:
KFC- franchise
US Bank — Foreign Direct Investment
Soup by Campbell—Joint Venture/Strategic Alignment
Budweiser Licensing
Exportation of international clients
Cell phone US —Manufacture of contracts
The following information should be considered:
For part A:
The below were it's less to one of the most foreign enterprises for businesses via using danger, contribution, and command.
Licenses Exports Franchises Fabrication of contracts Joint Undertaking/Strategic Arrangement Specific Foreign ProfitsFor part B:
KFC- franchise
US Bank — Foreign Direct Investment
Soup by Campbell—Joint Venture/Strategic Alignment
Budweiser Licensing
Exportation of international clients
Cell phone US —Manufacture of contracts
learn more: https://brainly.com/question/17429689?referrer=searchResults
Your customer purchased 100 shares of Cuesta Verde Homes at $15 per share in a margin account. How much must the customer deposit by settlement day to pay for the trade
Answer:
$1,500
Explanation:
Calculation for How much must the customer deposit by settlement day to pay for the trade
Deposit=100 shares*$15 per share
Deposit=$1,500
Therefore the amount that the customer must deposit by settlement day to pay for the trade is $1,500
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
a. Indicate the missing amount for each letter.
Case
1 2
Direct materials used $9,600 $
Direct labor 5,000 8,000
Manufacturing overhead 8,000 4,000
Total manufacturing costs 16,000
Beginning work in process inventory 1,000
Ending work in process inventory 3,000
Sales revenue 24,500
Sales discounts 2,500 1,400
Cost of goods manufactured 17,000 22,000
Beginning finished goods inventory 3,300
Goods available for sale 20,000
Cost of goods sold
Ending finished goods inventory 3,400 2,500
Gross profit 7,000
Operating expenses 2,500
Net income 5,000
b. Prepare a condensed cost of goods manaufactures schdule ffor Case1
c. Prepare an Income statement for Case 1
d. Prepare the current assets section of the balance sheet for Case1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600 and Prepaid Expenses $400.
Answer:
Cost of goods manufactured schedule for Case1
Opening Work In Process $1,000
Add Total Manufacturing Costs $16,000
Less Ending Work In Process ($3,000)
Cost of goods manufactured $14,000
Income statement for Case 1
Sales $24,500
Less Sales discounts ($2,500)
Net Sales Revenue $22,000
Less Cost of Goods Sold
Beginning Finished Goods Inventory $3,300
Add Cost of goods manufactured $14,000
Less Ending Finished Goods Inventory ($3,400) ($13,900)
Gross Profit $8,100
Less Operating expenses ($2,500)
Net Income $2,500
Current assets section :
Inventory :
Raw Materials $600
Work In Process $3,000
Finished Goods $3,400
Receivables (net) $15,000
Prepaid Expenses $400
Cash $4,000
Total Current Assets $26,400
Explanation:
Part b
Cost of Goods Manufactured = Opening Work In Process + Total Manufacturing Costs - Ending Work In Process
Part c
Income statement shows the Profit earned during the reporting period
Profit = Gross Profit - Operating expenses
Part d
The current assets section will include assets of a short term nature (not exceeding a period of 12 months). For a manufacturing company, it is important to show each inventory balance in the inventory categories of Raw Materials, Work In Process and Finished Goods among other items.
Note : Current Assets are shown in their order of liquidity in the Balance Sheet as above.
Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,600,000, or it can make annual payments of $300,000 for 15 years, each payment due on the last day of the year.
Which method of payment do you recommend, assuming an expected effective interest rate of 8% during the future period?
Answer:
Present value - Immediate payment = $2,600,000
Present value - installments = 2,567,843.61
Based on the comparison of present value for both options, Sonic Foundry Corporation should choose option 2 which is annual payments of $300000 for 15 years as it has a lower present value as compared to immediate payment.
Explanation:
We will first need to calculate the present value of the option with payments in installments for 15 years. To calculate the present value, we will use the formula for present value of annuity ordinary as the payments qualify as ordinary annuity.
The payments qualify as ordinary annuity as the payments are of equal amount, are made after equal intervals of time and are for a limited time period and made at the end of the period. The formula for present value of ordinary annuity is attached.
Present value - Option 2 = 300000 * [(1 - (1+0.08)^-15) / 0.08]
Present value - Option 2 = $2,567,843.606 rounded off to $2,567,843.61
The present value of option 1 which is immediate payment is equal to the payment amount as it is made today and it is $2,600,000.
Based on the comparison of present value for both options, Sonic Foundry Corporation should choose option 2 which is annual payments of $300000 for 15 years as it has a lower present value as compared to immediate payment.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines CDs
Price Price
Quantity (Dollars) Quantity (Dollars)
2017 20 30 40 8
2018 25 50 60 10
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is__________
Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is ____________ Which of the following statements is correct? Check all that apply.
a. The inflation rate in 2018 is not the same using the two methods.
b. The CPI allows the basket of goods and services to change.
c. The GDP deflator holds the basket of goods and services constant.
Answer:
1. 52.17%
2. 50.41%
3. a. The inflation rate in 2018 is not the same using the two methods
Explanation:
1.
We are to calculate the % change in overall price level
Market basket:
Year 2017 = (30x2) + (8x4)
= 60 +32
= $92
Year 2018 = (50x2) + (10x4)
= 100+40
= $140
Cpi in 2017 = market basket in this year/market basket in base year x 100
= 92/92 x 100
= 100
Cpi in 2018
= 140/92 x 100
= 152.17
% change = 152.17 - 100 / 100
= 0.5217 x100
= 52.17%
2.
Nominal gdp in year 2017 = (20x30) +(40x8)
= 920 dollars
Real gdp in same year = 920 dollars
Gdp deflator (2018) = nominal/real x 100
= 920/920 x 100
= 100
Real gdp (2018) = (25*30) + (60x8)
= $1230
Nominal gdp(2018) = 25x50 + 60x10
= $1850
Gdp deflator = 1850/1230 x 100
= 150.41
% change in overall price level = 150.41-100/100
= 0.5041 x 100
= 50.41%
3. Using the 2 methods inflation rate in 2018 is not the same. The cpi's rate of inflation holds basket of goods to be fixed. Gdp deflator allows a fluctuation (it changes)
During the phase of the history of U.S. government regulation called industry deregulation, government sought to a. protect competitors by creating new federal agencies to police industry activities. b. prevent chain stores from competing unethically with smaller local operators. c. prevent concentration of industrial power in the hands of a few. d. increase competition in industries such as telecommunications, utilities, and transportation. e. police the Internet and online services.
Answer:
Option d (increase.....................transportation) seems to be the right option.
Explanation:
This same fourth phase throughout the past decades of U.S. regulatory requirements started throughout the late 1970s as well as focuses primarily on industrial protectionism. Throughout that stage of development, the current regime has focused on increasing competitive advantage throughout sectors such as construction, utility services, transshipment as well as wealth management by deactivating an amount of regulation but rather allowing companies to diversify their business processes to developing companies.The interpretation of that same question has been characterized throughout the explanation paragraph below.
A company sells 500 shirts at a price of $15 each with a cost of goods sold of $2 per shirt. The company has selling and administrative expenses of $2,500, depreciation expenses of $500, interest expenses of $1,000, and a tax rate of 35%. Calculate the EBT
Answer:
EBT= $5,000
Explanation:
We need to calculate the earnings before taxes:
Sales= 500*15= 7,500
COGS= 500*2= (1,000)
Gross profit= 6,500
Depreciation= (500)
Interest= (1,000)
EBT= 5,000
Now, if we want to continue and calculate the net income:
EBT= 5,000
Tax= (5,000*0.35)= (1,750)
Depreciation= 500
Net income= 3,750
Templeton Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities. The journal entries reflecting these transactions would include:
Answer:
A Debit to manufacturing overhead for $9,000
Explanation:
Based on the information given in a situation where the Corporation recently used the amount of $9,000 of indirect materials during the production activities which means that The journal entries that will reflect these transactions would include a DEBIT to MANUFACTURING OVERHEAD of the amount of $9,000 which is the amount of indirect materials that was used during the production activities
A debit to manufacturing overhead for $9,000
Adam’s Apple Farm is a thriving orchard which grows apples that are then made into apple juice. Despite appearing to be a profitable business, Adam struggles to find the cash to pay the apple pickers each harvest, and sometimes cannot pay the monthly rent on the farm. He sells most of his apples to two big fruit juice manufacturers who have a habit of delaying payment to small suppliers.
Analyse how Adam might improve his cash-flow
Answer:
Adam needs to start a side business :D
Explanation:
In 2018 the NFL football team, the Carolina Panthers, have an owner accused of sexual harassment. The fans’ demand for team jerseys has dropped with the scandal this year. At about the same time the cost to manufacture the jerseys in China increased by 20%. Describe what the new equilibrium price and quantity is like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs?
Question Completion with Options:
1. The demand curve shifted to the right, the supply curve shifted to the left, the equilibrium price and quantity increased from 2017
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
3. The demand curve shifted to the left, the supply curve shifted to the right, the equilibrium price and quantity increased from 2017 Od.
4. Supply and demand curves have shifted to the left and the equilibrium price and quantity for Panthers' jersey market has decreased since 2017.
Answer:
This is how the new equilibrium price and quantity are like compared with the prior year’s Panthers’ jersey market before the scandal and increased manufacturing costs:
2. Supply and demand curves have shifted to the left and the equilibrium quantity has decreased from 2017 but it is impossible to determine the effect on the equilibrium price.
Explanation:
The scenario presents a decrease in supply of the jersey caused by the increase in the cost of production by 20%. This is why supply shifted to the left. Based on this factor, price is supposed to increase but this does not reflect on the data because the scandal also dampened demand. No wonder demand also shifted to the left, resulting in further decrease. These two leftward shifts caused the equilibrium quantity to decrease. However, we cannot establish whether the price decreased as well because it is supposed to increase due to the increased production cost in China.
Carlin Company, which uses net present value to analyze Investments, requires a 10% minimum rate of return. A staff assistant recently calculated a $500,000 machine's net present value to be $86,400, excluding the impact of straight-line depreciation
6.105 FV of 1 (i = 100,-5): 1.611
TV of a series of $i cash flows ( - 108, n. 5):
PV of $1 (1 - 108; n = 5) 0.621
PV of a series of $1 cash flown (1 101, n = 5) 3.791 #
If Carlin Ignores income taxes and the machine is expected to have a five-year service life, the correct net present value of the machine would be:
a) $292,700
b) $186,400
c) $86,400
Answer: c) $86,400
Explanation:
Depreciation on an asset reduces the amount of taxes that need to be paid and this is the main reason assets are depreciated.
If Carlin is going to ignore income taxes then there is no need to account for the impact of depreciation on the asset when calculating its present value.
The present value will therefore be the same as the amount calculated by the assistant at $86,400.
Cosmo Company produces its finished product in two processing departments--Assemblyand Packaging. The following information is available for the month of July:
Assembly Department:
The beginning work-in-process inventory cost was $62,744 and consisted of 4,100 units that were 40% completed as to conversion costs.
During July, an additional 16,800 units were started into production. A total of 15,600 units were completed and transferred out to the Packaging Department.
The ending work-in-process inventory consisted of 5,300 units which were 80% complete as to conversion costs.
The following costs were incurred during July: direct materials $124,320; direct labor $140,000; and factory overhead $98,420.
Direct materials are added at the beginning of the process in the Assembly Department and conversion costs are incurred evenly throughout the production process.
Packaging Department:
The beginning work in process inventory cost was $80,936 and consisted of 3 ,200 units that were 20% complete as to conversion costs.
During July, a total of 14,600 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 4,200 units which were 60% complete as to conversion costs.
The following costs were incurred during July: direct materials $207,320, direct labor $100,000; and factory overhead costs $ 162,032.
Direct materials are added at the end of the process in the Packaging Department and conversion costs are incurred evenly throughout the production process.
REQUIRED:
Prepare a production report for Jul v for the Assembly Departmen.
Answer:
Production Cost Report
INPUTS
units costs
Beginning Inventory
Units 4,100
Cost at the beginning $62,744
Incurred during the period :
Units started 16,800
Materials $124,320
Conversion costs $238,420
Total 20,900 $425,484
OUTPUTS
Completed and transferred 15,600 $302,952
Ending Work in Process 5,300 $90,185
Total 20,900 $393,137
Explanation:
Note : I will use the FIFO method for this question since the information given is only suitable for this method.
Assembly Department
First, calculate the equivalent units of production with respect to materials and conversion costs :
1.Materials
To finish Opening Work In Process (4,100x0%) = 0
Started and Completed ((15,600 - 4,100) x100%) = 11,500
Ending Work In Process (5,300x 100%) = 5,300
Equivalent units with respect to materials = 16,800
2.Conversion costs
To finish Opening Work In Process (4,100x60%) = 2,460
Started and Completed ((15,600 - 4,100) x100%) = 11,500
Ending Work In Process (5,300x 80%) = 4,240
Equivalent units with respect to conversion costs = 19,840
Next, calculate the total costs with respect to materials and conversion costs :
1. Materials
FIFO method only accounts for costs incurred during the period
Costs Incurred during the period = $124,320
Total Material costs = $124,320
2. Conversion Costs
FIFO method only accounts for costs incurred during the period
Costs Incurred during the period ($140,000 + $98,420) = $238,420
Total Conversion costs = $238,420
Next, calculate the cost per equivalent unit of materials, conversion costs and in total
1. Materials
Cost per equivalent = Total Costs / Total Equivalent Units
Therefore,
Cost per equivalent = $124,320/ 16,800
= $7.40
2. Conversion Costs
Cost per equivalent = Total Costs / Total Equivalent Units
Therefore,
Cost per equivalent = $238,420/ 19,840
= $12.02
3. Total
Total unit cost = materials unit cost + Conversion unit cost
= $7.40 + $12.02
= $19.42
Finally, calculate the total cost of units completed and transferred out and units still in process
1. units completed and transferred out
Total cost = units completed and transferred out x total unit cost
= 15,600 units x $19.42
= $302,952
2. units still in process
Total cost = material costs + conversion costs
= 5,300 x $7.40 + 4,240 x $12.02
= $90,184.80
Production Cost Report
INPUTS
units costs
Beginning Inventory
Units 4,100
Cost at the beginning $62,744
Incurred during the period :
Units started 16,800
Materials $124,320
Conversion costs $238,420
Total 20,900 $425,484
OUTPUTS
Completed and transferred 15,600 $302,952
Ending Work in Process 5,300 $90,185
Total 20,900 $393,137
Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2017 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2016 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2017. Both companies use the straight-line method to depreciate equipment. In 2018 Prince Company reported net income from its independent operations of $3,270,000, and Serf Corporation reported net income of $820,000 and declared dividends of $60,000. Prince Company uses the cost method to record the investment in Serf Company.
Required: A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2018 consolidated financial statements workpapers.
Answer:
Journal 1
At the beginning of the year
Debit : Equipment $380,000
Credit : Retained Earnings ($380,000 - $95,000) $285,000
Credit ; Accumulated Depreciation $95,000
Journal 2
During the year :
Debit : Depreciation $95,000
Credit : Accumulated depreciation $95,000
Explanation:
The sale of equipment to Prince Company is an intragroup transaction and must be eliminated from Prince Company Consolidated Financial Statements as follows :
Carrying Amount before sale :
Carrying Amount = Cost - Accumulated Depreciation
= $1,280,000 - ($1,280,000 ÷ 8)
= $1,120,000
Unrealized gain / loss =Selling Price - Carrying Amount
= $740,000 - $1,120,000
= $380,000 loss
Eliminate this loss on sale of equipment
2017
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred at the beginning of 2018
2018
Unrealized depreciation = $380,000 ÷ 4
= $95,000
Eliminate this depreciation charge deferred during 2018
The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint formula, what is the approximate change in the quantity of teenage labor supplied
Answer:
0.085
Explanation:
The computation of the expected change in the quantity of teenage is shown below:
As we know that
Price elasticity of supply = Percentage change in quantity supplied ÷ Percentage change in price
where,
Percentage change in price is
= (p1 + p2) ÷ 2 ÷ (p2 - p1)
= ($7.25 + $8.75) ÷ 2 ÷ ($8.75 - $7.25)
= 8 ÷ 0.5
= 16
Now the change in the quantity of supplied is
= 1.36 ÷ 16
= 0.085
What I learned about Joe Biden's presidential inauguration
Answer: He is trying to make better decisions than Trump and he is trying to keep the world peaceful and try his best to make sure he is doing the right thing.
Explanation:
Question 2 For an entrepreneurial team, members that are ___ internally and ___ externally tend to be the most high-performing.
Answer:
A type cohesive, B type broker
Explanation:
For an entrepreneurial team the members who belonged from Type A i.e cohesive at internally and Type B broker at externally would be classified as a the most highest performing members
So as per the mentioned situation the above depicts the answer and the same is considered and relevant too
The Federal Reserve buys $14.00 million in Treasury securities. If the required reserve ratio is 5.00%, and all currency is deposited into the banking system, and banks hold excess reserves of 10%, then the maximum amount the money supply can increase is $ ______ million. (Insert your answer in millions; if you think the answer is $30 million, just enter 30. Round your answer to two decimal places.)
Answer:
$93.33
Explanation:
The computation of the increase the maximum account in supply is shown below:
As we know that
Money multiplier = 1 ÷ (excess reserve ratio + required reserve ratio)
= 1 ÷ (0.05 + 0.10)
= 6.67
Now increase in money supply is
= $14 million ×6.67
= $93.33
The maximum amount the money supply can increase is $93.33
First step is to find the multiplier
Reserve= (Excess reserve ratio + Required reserve ratio)
Reserve = (0.05 + 0.10)
Reserve=0.15
Second step
Increase in money supply = $14 million/0.15
Increase in money supply= $93.33
Inconclusion the maximum amount the money supply can increase is $93.33
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M. Bramble Corporation has 14,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2020. No dividends were declared in 2018 or 2019. If M. Bramble wants to pay $360,000 of dividends in 2020, what amount of dividends will common stockholders receive
Answer:
Dividend - Common stock = $24000
Explanation:
The cumulative preferred stock refers to the kind of preferred stock that accrues the dividends in case the dividend on these stocks is not paid in a certain year. Such dividend is to be paid first whenever the business declares dividends in the future.
The total dividend per year on the cumulative preferred stock for M. Bramble Corporation is,
Dividend - Preferred stock = 14000 * 100 * 0.08 = $112000
The dividends in arrears at the start of 2020 = 112000 * 2 = $224000
The total dividend payable on preferred stock at the end of 2020 = 224000 + 112000 = $336000
As the dividends on preferred stock is payable before dividends on common stock, the dividends on common stocks will be,
Dividend - Common stock = 360000 - 336000 = $24000
Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates:
Assembly Packaging
Direct labor-hours 5,200 62,000
Machine-hours 68, 400 11,900
Total fixed manufacturing overhead cost $390,000 $419,000
Variable manufacturing overhead per DLH $ 3.75
Variable manufacturing overhead per MH $ 3.00 Knowledge Check 01
Required:
What is the estimated total manufacturing overhead in the Assembly Department?
a) $595,200
b) $651,600
c) $809.000
d) $1,246,700
Answer:
Total manufacturing overhead= $595,200
Explanation:
Giving the following information:
The predetermined overhead rate in the Assembly Department is based on machine hours (MHs).
Assembly
Machine-hours 68, 400
Total fixed manufacturing overhead cost $390,000
Variable manufacturing overhead per MH $ 3.00
To calculate the total estimated overhead cost for the Assembly department, we need to calculate the total variable manufacturing overhead:
Total varaible overhead= 3*68,400= $205,200
Now, the total manufacturing overhead:
Total manufacturing overhead= 390,000 + 205,200
Total manufacturing overhead= $595,200
The decision-making tool that leverages a map of alternatives with a quantifiable utility, or relative value, assigned to each is called a:_
Answer:
Decision tree
Explanation:
The decision tree provides the alternatives and allocated the value and weight for each and every alternative in order to become easier to take the decision that depend on the amount and weight allocated to each alternative
It helps in decision making
So as per the given situation the decision tree is the answer
Hence, the second option is correct
Lucas is working in ABC organization. He looks after the logical components of Active Directory which are mapped to the organizational and business requirements of an organization. Which of the following are those logical components?
a. Active Directory domains
b. OUs
c. Groups
Answer:
The logical components of Active Directory are:
a. Active Directory domains
Explanation:
Three main components are identified in the Active Directory. They are the domains, trees, and forests, with several objects like users and devices. The logical components, as administrative entities in Active Directory, assign logical systems, allowing Lucas to organize resources so that their layout in the directory reflects the logical structure of ABC organization.
Pharoah Corp. had total variable costs of $179,400, total fixed costs of $74,400, and total revenues of $260,000. Compute the required sales in dollars to break even.
Answer:
$165,333.33
Explanation:
The computation of the required sales in dollars to break even is as follow:
Break even point in dollars = Fixed cost ÷ contribution margin ratio
where,
Contribution margin ratio is
= (Sales - variable cost) ÷ (Sales)
= ($260,000 - $179,400) ÷ ($179,400)
= 45%
Now the break even point in dollar is
= $74,400 ÷ 0.45
= $165,333.33
Answer: $240,000
Explanation: Step 1
Let's understand the basics.
Break-even point is a point at which no profit no loss condition arises. In other words, it is a point at which contribution equals to a fixed cost of the company.
Break even point (In amount) = Fixed cost/Contribution margin ratio
Contribution margin ratio = ((Sales - Variable cost)/Sales) * 100
Step 2
So here in this case,
Contribution margin ratio = (($260,000 - $179,400)/$260,000) * 100 = 31%
Break even point (In amounts) = $74,400/31= $240,000
During the elaboration stage of an organization: Group of answer choices change management is the most important skill that human resource personnel contribute. functional knowledge is critical for all human resource personnel. employee advocacy is the most important role of human resources. employee compensation can be highly competitive. g
Answer:
change management is the most important skill that human resource personnel contribute.
Explanation:
Elaboration stage of an organisation is also called the maturity stage. It is characterised by different units being involved in making decisions.
This slows down speed of decision making.
At this stage there is a need for revitalisation and change in order to make the organisation more efficient.
Change management is the process by which employees in an organisation are prepared and supported when there are far reaching improvements to organisation structure.
It ensures a smooth transition by providing needed information and reducing the stress associated with organisational change.
This is a key skill needed by human resource personnel fusing the elaboration stage