Answer: c. Canada, the United States, or both.
Explanation:
Here is the complete question:
Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract that does not have a forum-selection or choice-of-law clause. Litigation between Quest and Real Treks involving this contract may occur in
a. an online forum only.
b. an international, United Nations tribunal only.
c. Canada, the United States, or both.
d. Canada or the United States, but not both.
A choice of law clause means that the law of a particular jurisdiction will be used to govern a dispute that occurs without taking into consideration where the dispute take place and a forum clause has to do with the selection of venue for a case or litigation.
In this case, Quest Inc., a U.S. firm, and Real Treks, Ltd., a Canadian firm, enter into a contract which does not have a forum selection or choice-of-law clause thereby litigation can take place in Canada, the United States, or both.
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Fixed overhead 34.00
Total $163.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
Answer:
If the company buys the units, income will decrease by $1,000.-
Explanation:
Giving the following information:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.
First, we need to determine the total cost of making the units:
Total cost= total variable costs + avoidable fixed costs
Total costs= (54 + 35 + 40)*6,000 + 89,000= $863,000
Now, the cost of buying:
Total cost= 6,000*144= $864,000
If the company buys the units, income will decrease by $1,000.-
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 700,000 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated: Department 1 Department 2
Manufacturing overhead costs $3,141,500 $1,571,000
Direct labor hours 167,000 DLH 267,000 DLH
Machine hours 267,000 MH 192,000 MH
a. $10.86 per unit
b. $8.73 per unit
c. $4.22 per unit
d. $11.77 per unit
e. $10 per unit
Answer:
$7.70 per unit
Explanation:
For computing the overhead rate per unit we first need to compute the estimated amount which is as follows
Total manufacturing cost
= Department 1 + department 2
= $31,41,500.00 + $15,71,000.00
= $47,12,500.00
Total machine hours
= Department 1 + department 2
= 267,000 MH + 192,000 MH
= 459000 MH
Now predetermined overhead rate is
= Total manufacturing cost ÷ Total machine hours
= $4,712,500 ÷ 459,000 MHs
= $10.27 per MH
Now overhead per unit is
= Pre-determined overhead rate per MH × Machine Hours required per unit
= $10.27 per MH × 0.75 MHs per unit
= $7.70 per unit
This is the answer but the same is not provided in the given options
Crane Company borrowed $750000 from BankTwo on January 1, 2019 in order to expand its mining capabilities. The 5-year note required annual payments of $195327 and carried an annual interest rate of 9.5%. What is the amount of expense Crane must recognize on its 2020 income statement
Answer:
The interest expense of $59,463 must be recognize on its 2020 income statement.
Explanation:
With the given data make an amortization schedule
Hint : First determine the Future Value of the 5-year note
PV = $750,000
N = 5
Pmt = - $195,327
P/yr = 1
i = 9.5%
Fv = 0
Input the elements in a Financial Calculator.
2019
interest expense = $71,250
2020
interest expense = $59,463
Conclusion :
The interest expense of $59,463 must be recognize on its 2020 income statement.
Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $9.22 per slice, $106.00 as monthly rental and $55.00 monthly as insurance. A restaurant sells pizza at a rate of $14.22/slice. How many slices should the restaurant sell in a month to break even?
Answer:
Break-even point in units= 32 slices
Explanation:
Giving the following information:
Selling price= $14.22
Unitary variable cost= $9.22
Fixed costs= 106 + 55= $161
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 161/ (14.22 - 9.22)
Break-even point in units= 32 slices
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:a. Checks outstanding totaled $5,560.b. A deposit of $1,050 representing receipts of October 31, had been made too late to appear on the bank statement.c. The bank had collected for Coastal Bike Co. $2,120 on a note left for collection. The face of the note was $2,000.d. A check for $370 returned with the statement had been incorrectly charged by the bank as $730.e. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account.f. Bank service charges for October amounted to $25.g. A check for $880 from Bay View Condos was returned by the bank due to insufficient funds.Instructions1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
Answer:
Explanation:
Cash balance - 5,140
Add cash deposited 39,175
Deduct check written (40,520)
Cash balance 3,795
Bank reconciliation for Coastal Bile for the month ended October 31
Cash balance in bank statement - 8980
Deposit not recorded ( 1050)
Bank error on check (730-370) (360)
Outstanding check 5,560
Adjustment (4,150)
New balance 4,830
Cash balance 3,795
Note received by bank 2,120
Bank charges (25)
Returned check (880)
Error in returned check (180)
Adjustment (1,035)
New balance 2760
2
Journal entries
Description Dr Cr
Cash 2,120
Note receivable 2,000
Interest income 120
Accounts payable (Rack pro) 180
Accounts receivable (condos) 880
Bank charges 25
Cash 1,085
3
Cash in Balanced sheet = Adjusted balance in the reconciliation
2,760
1. Because of sanctions over their involvement in Ukraine in 2014, the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%. What affect does this have on the exchange rate for the Russian Rubble versus the Euro
Answer:
This would make the rubble more attractive than the euro when investing.
Explanation: The effects of this increase in interest rate, is it would make it more expensive when planning on borrowing money in Russia. Which would make the rubble more attractive than the euro from an investors or investment part, as more money can be made when euro is converted back to rubble. This would help drive up the cost of rubble.
During her lifetime, Betty accumulated a large quantity of registered gold coins totaling over $500,000 in value. Betty began to see the sun setting in the waning years of her life and began making plans to dispose of her assets among her beloved children. Part of her plans was to give her collection of coins to her favorite son, Carlos, who at the time was performing mission work deep in the jungles of South America. Betty executed and filed a registration of transfer of the coin collection to Carlos. She then attempted to contact Carlos on his satellite phone and called his last known location to advise him of the transfer, but she was unable to contact him. The best she could do was to leave Carlos multiple messages. One month later, Betty passed away without ever hearing from Carlos. Betty's will was read, and it was discovered that the language in the will bequeathed all of her coins to her daughter, Carey. Carey took possession of the registered gold coins. If you were Carlos, how would you convince Carey to give you the coins after returning from your trip
Answer:
Show the messages sent by Betty to me before her death
Explanation:
In law, believable evidence could take several forms which includes providing a written "proof of intent". Carlos can argue that the messages received from Betty explicitly shows are wishes–that he receives a collection of her coins, thus the transfer of ownership was implicitly binding.
Carey's reading of the multiple messages evidently provides convincing evidence that she has not fulfilled the will of her death mother, thus Carlos can use her emotional attachment of fulfilling mother's wishes by pressurising her to give him the coins.
Carlos can convince Carey to give him the coins after returning from trip by
showing her the multiple messages sent from Betty and confirming with
the appropriate authority.
What is Registration of transfer?Thus is a document which confirms that an asset or property has been
transferred to a new owner.
In this scenario, she was unable to reach him but left messages which is an
evidence about the transfer of the coins. The appropriate authority should
also be contacted to confirm if the transfer of the coins was appropriately
done.
Read more about Transfer here https://brainly.com/question/523607
Accounts payable are: Multiple Choice Long-term liabilities. Estimated liabilities. Amounts owed to suppliers for products and/or services purchased on credit. Always payable within 30 days. Not usually due on specific dates.
Answer: Amounts owed to suppliers for products and/or services purchased on credit.
Explanation: Account payable as a liability arises on account of credit purchases and therefore, are amounts owed to suppliers for products and/or services purchased on credit. While accounts payable can be either a short-term or a long-term liability based on the duration available to pay the same, they are typically paid within thirty or sixty days which makes them current liabilities. However, the duration of credit that is available to companies making such purchases are based on both the credibility of such companies, the history of past purchases and how timely they repay their debts.
C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A's annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time?
Answer: $6,800
Explanation:
The following can be deduced based on the information above:
The annual requirement will be the weekly demand multiplied by the number of operational weeks. This will be:
= 600 x 50
= 30,000 Bottles
Then, the number of orders will be the annual demand divided by the order size. This will be:
= 30,000 ÷ 500
= 60
Then, we calculate the ordering cost which will be the number of orders multiplied by the ordering cost per order. This will be:
= 60 x $30
= $1,800
The average inventory will be the lot size divided by 2. This will be:
= 500 / 2
= 250 Bottles
Then, the holding cost per unit will be the price multiplied by the percentage of the holding cost. This will be:
= $50 x 40%
= $50 × 0.4
= $20 per unit
Holding cost of thenverage inventory will be the average inventory multiplied by the holding cost per unit. This will be:
= 250 x $20
= $5,000
Therefore, C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time will be:
= $1,800 + $5,000
= $6,800
A rich aunt has promised you $ 3 comma 000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 2 % larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 6 %, what is her promise worth today?
Answer:
PV= $29,454.44
Explanation:
Giving the following information:
Cash flow= $3,000
Number of years= 20
Interest rate= 6%
Growth rate= 2%
To simplify calculations, we will sum the growing rate to the interest rate.
Real interest rate= 8%
To determine the present value, first, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,000*[(1.08^20)-1]} / 0.08
FV= $137,285.893
Now, the present value:
PV= FV/(1+i)^n
PV= 137,285.893/1.08^20
PV= $29,454.44
To calculate return on assets (ROA), the numerator will include which of the following? a. net income plus tax expense b. net income plus interest expense c. net income minus preferred dividends d. net income
Answer:
d. net income
Explanation:
The formula to compute the return on assets is as follows
Return on assets = Net income ÷ Total assets
Or
Return on assets = Net income ÷ Average of total assets
As the case maybe
By dividing the net income from the total assets or average of total assets we can get the return on assets and the same is to be considered
hence, the correct option is d. net income
Ronald is an assistant librarian at the local public library but hopes to be able to become a head librarian in the near future. For him to accomplish this, he must move to another location. To help him find openings in other locations, he has joined the American Library Association and will be attending their national conference next month. He is excited about meeting and talking with fellow librarians about their jobs across the United States. This is an illustration of
Answer:
Ronald, the Librarian
What Ronald is doing "is an illustration of" Networking in practise.
Explanation:
According to investopedia.com, "Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground."
The advantages of networking include, strengthening connections through information sharing, acquisition of fresh ideas, knowledge, and perspectives, avenue for career advancement and access to job opportunities, and the reception of career advice and support. It also builds one's confidence through the process of interaction with more knowledgeable professionals. Those who seek, find. And "iron sharpens iron," as people rob minds.
Networking also helps to develop and improve skill set, stay on top of the latest trends in your industry, keep a pulse on the job market, meet prospective mentors, partners, and clients, and gain access to the necessary resources that will foster your career development.
The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing activities for the year was:
Answer:
The net cash provided by (used in) investing activities for the year was: $ 0
Explanation:
Investing Activities consists of activities that result from Purchase or Sale of Capital expenditure items.
Types of Capital expenditure items are Machinery, Equipment, Plant or any Non-Current assets that is used by the company.
The question you provided does not have any purchase or sale of the Property, Plant and Equipment items. So no cash movement from Investing Activities during the period.
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. The reporting statement of a company is shown. A table with four columns is shown. The first column has no heading; the second columns heading is 20Y3; the third column heading is 20Y2; the third column heading is 20Y1. The headings, 20Y3, 20Y2 and 20Y1 are set in bold. The transactions listed are as follows: Accounts receivable, end of year is $ 725,000; $ 650,000 and $ 600,000; account are 5,637,500 and 4,687,500. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round to the nearest dollar and one decimal place. Answer Check Figure: Accounts receivable turnover, 20Y3, 8.2 Pencil What conclusions can be drawn from these data concerning accounts receivable and credit policies
Answer: For 20Y3 --8.2 times, 44.5 days
For 20Y2----7.5 times 48.7 days
Explanation:
20Y3 20Y2 20Y1
Accounts receivable, end of years $ 725,000; $ 650,000 $ 600,000'
Sales on account 5,637,500 4,687,500
For 20Y3 --
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $5,637,500
Average Account receivable
=(End of years of yr2 and 3)/ 2=($ 725,000 +$ 650,000) /2 = $1.375,000/2= $687, 500
Accounts receivable turnover = $5,637,500/ $687,500=8.2 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/8.2 = 44.5 days
For 20Y2
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $4,687,500
Average Account receivable
=(End of years of yr2 and 1)/2 = ($ 650,000 + $ 600,000') /2 = $/2= $625,000
Accounts receivable turnover = $4,687,500/ $625,000=7.5 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/7.5= 48.7 days
b. Accounts receivable in cash owed by clients to a company from the invoices the company sent to them
Also, Credit policy is a requirement that establishes the payment terms of a company to its clients so as to eliminate the risk of loss. The credit policy differs and from company and comprises of the payment terms( the duration of time) or credit period, collections, discounts and operational standard
---->The relationship between credit policy and account receivables is that is that when a company establishes that payment terms are increased and on credit, the accounts receivables increases reducing a company''s finance. A company that establishes a decrease in the credit period duration will have a reduced account receivable providing fast financial returns to the company.
From the results obtained from 20Y3 and 20Y2, We will see that
Particulars 20Y3 20Y2 Remark
Aturnover ratio 8.2times 7.5 times Increase by 0.7 times
Number of days sales
in receiviable 44.5 days 48.7days Decrease by 4.2 days
In year 20Y3, THE higher ratio of accounts receivable turnover shows that cash for sales will more likely to be collected than a 20Y2 with a lower ratio of accounts receivable turnover.
Gibson Energy Ltd.’s general ledger account for Cash in Bank showed the following at December 31, 2019:
Cash in Bank Acct. No. 101
Balance DR (CR)
Date Description Folio Debit Credit Balance
Nov. 30 Balance (overdraft) 221,000
Dec. 1-31 Cash receipts CRJ10 813,000 1,034,000
Dec. 1-31 Cash Payments CDJ21 972,000 62,000
December deposits made and checks issued were as follows:
Deposits Checks
Date Amount No. Amount
Dec. 5 30,000 232 110,000
7 210,000 233 83,000
9 85,000 234 25,000
12 32,000 235 59,000
15 26,000 236 590,000
21 420,000 237 17,000
24 16,000 238 28,000
26 51,000 239 77,000
28 21,000
31 15,000
$813,000 $972,000
The December bank statement showed:
First Chartered Bank
Gibson Energy Ltd. Bank Statement
Month Ended December 31, 2019
Date Type Out In Balance
Dec. 3 Deposit 70,000 215,000
4 NR XYZ Corp. 80,000 295,000
5 Ck. 232 110,000 185,000
6 Ck. 231 70,000 115,000
6 Deposit 30,000 145,000
7 Deposit 210,000 355,000
10 Ck. 234 25,000 330,000
12 Ck. 236 590,000 (260,000)
13 Deposit 32,000 (228,000)
14 Ck. 52094* 62,000 (290,000)
14 NSF ABC. Inc. 7,000 (297,000)
15 Deposit 26,000 (271,000)
16 Ck. 238 28,000 (299,000)
17 Deposit 420,000 121,000
18 Ck. 235 59,000 62,000
20 Ck. 237 17,000 45,000
24 Deposit 16,000 61,000
26 Deposit 51,000 112,000
28 Deposit 21,000 133,000
31 OD int 1,320 131,680
31 SC 60 131,620
*drawn in error on Gibson’s bank account
NR = note receivable collected from XYZ Corp. including interest of:
$1,951
NSF = not sufficient funds
SC = service charge
OD int = overdraft interest expense
Outstanding items at November 30, 2019 were as follows:
Nov. 30 deposit $70,000
Ck. 231 $70,000
Required:
1. Complete the bank reconciliation at December 31, 2019.
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Answer:
1. Adjusted cash balance = Adjusted bank statement balance = $133,620.
2. See the adjusting journal entries and explanation in part 2. below.
Explanation:
Note: The data in the question are merged and they are first sorted in the attached excel file before the questions are answered as follows:
1. Complete the bank reconciliation at December 31, 2019.
The bank reconciliation is presented in two ways as follows:
a) Starting with cash book balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Cash book bal. at 31 Dec. yet to be reconciled 62,000
Add:
Collected note receivable from XYZ Corp 80,000
Less:
Dishonored NSF check (7,000)
Overdraft interest expense (1,320)
Bank service charge (60)
Adjusted cash balance at Dec 31 133,620
b) Starting with bank statement balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Bank statement bal. at Dec 31 yet to reconciled 131,620
Add:
Cash deposited on December 9th yet be credited 85,000
Cash deposited on December 31 yet be credited 15,000
Check #52094 wrongly drawn 62,000
Less:
Outstanding checks 233 (83,000)
Outstanding checks 239 (77,000)
Adjusted bank statement balance at Dec. 31 133,620
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Date Accounts title & explanation DR ($) CR ($)
31 Dec 19 Cash 80,000
Note Receivable 78,049
Interest on note receivable 1,951
(To record note receivable & int. collected from XYZ)
31 Dec 19 Overdraft interest expense 1,320
Service charge 60
Cash 1,380
(To record interest expense and bank charges)
31 Dec 19 Account Receivable 7,000
Cash 7,000
(To record NSF check dishonored)
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $ 34,000 Legal fees for drawing the contract 9,000 Pro-rated property taxes for the period after acquisition 54,000 State transfer fees 5,800 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.5 and $1.5 million, respectively. Shortly after acquisition, Samtech spent $100,000 to construct a parking lot and $58,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $430,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $97,000 clearing and grading the land in preparation for the construction of a new building.
Answer:
1)
total price $4,000,000
if purchased separately, land was worth $3,500,000 and building $1,500,000.
cost of land:
70% x $4,000,000 purchase cost = $2,800,000
70% x $34,000 title insurance = $23,800
70% x $9,000 legal fees = $6,300
70% x $5,800 state transfer fees = $4,060
total cost of land = $2,834,160
cost of building:
30% x $4,000,000 purchase cost = $1,200,000
30% x $34,000 title insurance = $10,200
30% x $9,000 legal fees = $2,700
30% x $5,800 state transfer fees = $1,740
total cost of land = $1,214,640
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
2)
cost of land:
$4,000,000 purchase cost
$34,000 title insurance
$9,000 legal fees
$5,800 state transfer fees
$430,000 demolition costs
- $6,500 sale of salvaged value
$97,000 land grading
total cost of land = $4,569,300
cost of building = $0
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. $ b. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Answer:
a. $ 9,000,000
b.
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
Explanation:
The depletion expense is calculated using the formula :
Depletion expense = Cost of Asset / Estimated total contents in units × Number of units taken in the period
= $67,500,000 / 30,000,000 tons × 4,000,000 tons
= $ 9,000,000
The entry to recognize the depletion expense will be :
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
Do you agree with the Container Store’s decision to allow employees access to all kinds of company information except individual compensation? Explain your answer.
Answer:
Yes
Explanation:
Yes. It will be good to allow employees to access the data as employees will see the business as transparent.
Therefore according to the given scenario, Container Store's decision to give workers access to company details of all kinds except for individual reimbursement.
From the above explanation, the correct answer is Yes.
Answer:
Explanation:
In my opinion, the decision of the Container Store to give workers access to all kinds of company information, except individual compensation, is a good way of preserving employee loyalty and giving the employees full trust in the company.
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 36 $ 58 $ 54 Bats 29 76 82 Shoes 50 95 99 Uniforms 54 40 40 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Helmets $ 1,944
Bats $ 2,204
Shoes $ 4,750
Uniforms $ 2,000
Explanation:
We will compare between the cost and the proceeds from sale of the units. As accounting wants to represent reality it cannot value the company goods higher than it can acceess to it in the market regardless of the purchase cost.
This may generate losses to represent the decrease in the overall value of the good.
Helmets 36 $ 58 $ 54
Helmets cost is higher than market so we recognize a loss an valued at $54
36 units x $54 = $1,944
Bats 29 $76 $82
Bats productions cost is lower so we keep it.
29 units x $76 = $2,204
Shoes 50 $95 $99
Shoes also has a lower production cost
50 units x $95 = $4,750
Uniforms 54 $40 $40
As they are the same we just leave with $40
50 units x $40 = $2000
Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
Answer: The answers are provided below
Explanation:
The fixed order quantity system is an arrangement whereby the inventory level is typically continuously monitored and also the replenishment stock is ordered based on the previously-fixed quantities while for a fixed time period model, the inventory levels are checked on regular basis for the items e.g every week.
A plant manager may elect to use a fixed-order quantity model as opposed to a fixed-time period model when the holding cost is much higher. Typically, fixed order quantity model is typically used for the costly items.
The disadvantages of using a fixed-time period ordering system are:
i. It doesn't consider market structure changes
ii. There should be a high level of inventory in order to avoid stock out.
iii. It leads to rigidity in the system as it makes the decision on time period complex when there's need for urgency.
Edison has just paid an annual dividend of $3 per share. If the expected growth rate for Con Ed is 10%, and your required rate of return is 16%, how much are you willing to pay for this stock
Answer:
$55 per share
Explanation:
This can be calculated using the dividend discount model (DDM) formula as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price or the amount you are willing to pay today
D1 = Next dividend = Current dividend * (1 + Growth rate) = $3 * (1 + 0.10) = $3.30
r = required return = 16%. or 0.16
g = growth rate = 10% = 0.10
Substituting the values into equation (1), we have:
P = $3.30 / (0.16 - 0.10) = $55 per share
Therefore, you are willing to pay $55 per share for this stock.
Journalizing the entry to record the indirect labor costs incurred for general factory use would include a debit to a.Wages Expense b.Factory Overhead c.Wages Payable d.Cost of Goods Sold
Answer: b.Factory Overhead
Explanation:
Indirect Labor Costs are those costs associated with people who helped the production process but were not directly involved in the production process.
For example, machinery repair men, the guards, the Accountants for the Factory and the Quality control people amongst others.
These costs are treated as an expense and Debited to the Factory Overhead Account in a general factor setting unlike direct Labor that will be Debited to to Work in Progress.
As part of the initial investment, Jackson contributes accounts receivable that had a balance of $32,290 in the accounts of a sole proprietorship. Of this amount, $1,367 is deemed completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $848. gThe amount debited to Accounts Receivable for the new partnership is a.$31,442 b.$32,290 c.$30,923 d.$30,075
Answer: $30,923
Explanation:
From the question, we are told that as part of an initial investment, Jackson contributes accounts receivable that had a balance of $32,290 in the accounts of a sole proprietorship. Out of the amount, $1,367 is deemed completely worthless and for the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $848.
The amount debited to accounts Receivable for the new partnership will be the difference between the account receivable balance and the amount that was deemed worthless. This will be:
= $32,290 - $1,367
= $30,923
Therefore, the amount debited to Accounts Receivable for the new partnership will be $30,923
On January 2, 2021, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $50,125. The expenditures made to acquire the asset were as follows:
Purchase price $220,000
Freight charges 6800
Installation charges 10,000
Jackson's policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment's life and then switch to straight line halfway through the equipment's life.
Required:
Calculate depreciation for each year of the asset's eight-year life.
Answer:
Jackson Company
Calculation of the Depreciation for each year:
a) Using the double-declining-balance (DDB) method of depreciation:
1st year, the depreciation charge = $59,200 ($236,800 x 25%)
2nd year, the depreciation charge = $44,400 ($236,800 - 59,200) x 25%
3rd year, the depreciation charge = $33,300 ($236,800 - 103,600) x 25%
4th year, the depreciation charge = $24,975 ($236,800 - 136,900) x 25%
5th year, the usage of straight-line method commences:
Depreciation charge = $58,100/4 = $14,525
6th year, depreciation charge = $14,525
7th year, depreciation charge = $14,525
8th year, depreciation charge = $14,525
Explanation:
a) Asset's recognized cost:
Purchase price $220,000
Freight charges 6,800
Installation charges 10,000
Total cost = $236,800
b) Useful life = 8 years, with salvage value of $50,125.
c) Double-declining balance depreciation rate = 25% (100/8 * 2)
d) Accumulated Depreciation at the end of:
1st year = $59,200
2nd year = $103,600 ($59,200 + 44,400)
3rd year = $136,900 ($103,600 + 33,300)
4th year = $128,575 ($136,900 + 24,975)
5th year = $143,100 ($128,575 + 14,525)
6th year = $157,625 ($143,100 + 14,525)
7th year = $172,150 ($157,625 + 14,525)
8th year = $186,675 ($172,150 + 14,525)
e) Book value of asset at the end of the fourth year:
Cost = $236,800
Accumulated depreciation $128,575
Book value = $108,225
Salvage value = $50,125
Straight-line depreciable amount = $58,100
f) The double-declining-balance depreciation method is an accelerated depreciation method that expenses the cost of an asset more rapidly by multiplying the straight-line method's rate by 2 and applying this rate on the reducing balance. On the other hand, the straight-line depreciation method uses the same amount of depreciation each year over an asset's useful life. The double-declining balance method does not take into consideration the salvage value unlike the straight-line depreciation method until towards the end of the useful life of the asset.
Suppose you work as a manager in a firm. Your job is to hire the right number of people to maximize profit. Every worker you hire costs $150 per day, and each unit of output sells for $18 per unit. Given your current labor force, you know that if you hire another worker, that person will increase your output by 32.
1. What is the marginal product of the worker you are considering hiring?
2 What is the value of the marginal product of labor for this potential employee?
3. What is the marginal profnt or loss for hiring this employee? (Use a negative number if hiring this person results in a net loss
4. Should this additional worker be hired?
Answer: 1. 32
2. $576
3. $426
4. Yes
Explanation:
1. What is the marginal product of the worker you are considering hiring?
From the question, we are informed that given current labor force, hiring another worker will increase the output by 32. This means that the marginal product of the worker you are considering hiring is 32.
2 What is the value of the marginal product of labor for this potential employee?
The value of the marginal product of labor for this potential employee will be the product of the price of each unit of output sale and the marginal product of the employee. This will be:
= $18 × 32
= $576
3. What is the marginal profit or loss for hiring this employee?
The marginal profit or loss will be the difference between the value of the marginal product of labor for this potential employee and the hiring cost per day for every worker. This will be:
= $576 - $150
= $426
There is a marginal profit of $426.
4. Should this additional worker be hired?
Yes, the additional worker should be hired because there is a positive marginal profit.
Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 0.5 pound cans. The company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Expected Costs Cost Driver Handling materials $105,000 Number of batches made Storage costs $820,000 Weight of finished product Dog Food Cat Food Production volume 100,000 units 200,000 units Batches made 200 batches 150 batches1. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?
a. Dog food: $4.62: cat food: $4.62.
b. Dog food: $2.64; cat food: $2.64.
c. Dog food: $8.60: cat food: $0.33.
d. Dog food: $0.26: cat food: $8.60.
e. Dog food: $0.12; cat food: $3.85.
2. Which of the following would not be considered a product cost?
a. Direct material costs.
b. Factory supervisor's salary.
c. Direct labor costs.
d. Budget accountant's salary.
e. Manufacturing overhead costs.
Answer:
a. dog food
Explanation:
Answer:
Dog food: $8.60; cat food: $0.33.
Explanation:
Dog food: $860,000/100,000 units = $8.60 per unit of dog food
Cat food: $65,000/200,000 units = $0.33 per unit of cat food
Consider the following three types of airplanes: Airbus planes that seat 320 passengers and cost $200 million each, Boeing planes that seat 250 passengers and cost $125 million each, and Lockheed planes that seat 275 passengers and cost $200 million each. You are the purchasing manager of an airline company and have a spending goal of $2,900 million for the purchase of new aircrafts to seat a total of 4,480 passengers. Also, you must buy twice as many Lockheed airplanes as Airbus planes. How many of each type of airplane should you order
Answer:
9 Airbus planes, 1 Boeing plane & 4 Lockheed airplanes
Explanation:
We will develop equations from the information provided
Let the planes be tagged as seen below:
Airbus = x, Boeing = y, Lockheed = z
From the cost of the planes, we have:
200 x + 125 y + 200 z = 2900 ---Eqn 1
From the number of passenger seats, we have:
320 x + 250 y + 275 z = 4480 ---Eqn 2
Twice as many Lockheed airplanes as Airbus planes
⇒ 2z = x ---Eqn 3
Substitute x = 2z into Eqn 1, we have:
200 (2z) + 125 y + 200 z = 2900
125 y + 400 z + 200 z = 2900
125 y + 600 z = 2900 ---Eqn 4
Substitute x = 2z into Eqn 2, we have:
320 (2z) + 250 y + 275 z = 4480
250 y + 640 z + 275 z = 4480
250 y + 915 z = 4480 ---Eqn 5
Multiply Eqn 4 by 2
125 y * 2 + 600 z * 2 = 2900 * 2
⇒ 250 y + 1200 z = 5800 ---Eqn 6
(250 y + 915 z = 4480) ---Eqn 5
Subtracting Eqn 5 from Eqn 6, we have:
250 y - 250 y + 1200 z - 915 z = 5800 - 4480
285 z = 1320
z = 4.6
Substitute z to Eqn 3, x = 2z
⇒ x = 2 * 4.6 = 9.2
x = 9.2
Substitute x & z into Eqn 1
200 x + 125 y + 200 z = 2900
200 * 9.2 + 125 y + 200 * 4.6 = 2900
125 y = 2900 - (1840 + 920)
125 y = 140
y = 1.1
Since it is airplanes that are to be bought, the value of x, y & z must be integers (you cannot buy 4.6 airplanes). As such, we will round down values of airplanes to be bought sodo that we will not exceed the budget.
x = 9, y = 1, z = 4
∴That implies that I will buy 9 Airbus planes, 1 Boeing plane & 4 Lockheed airplanes
What is one of the main reasons why the need for effective communication on teams has been growing so much in the last few decades?
Different insights and opinions in a collaborative setting can open up new better methods
studoc Suppose there is uncertainty about the growth rate. With 50% probability the growth rate will be 6%, with 50% probability the growth rate will be 10%. What are the respective market values under the two growth rates
Answer:
Given there is uncertainty about the growth rate, the respective market values under the two growth rates is the weighted average rate of growth, which is: 50% x 6% + 50% x 10% = 8%.
Explanation:
During 2019, Paul sells residential rental property for $240,000, which he acquired in 1998 for $160,000. Paul has claimed straight-line depreciation on the building of $60,000. What is the amount and nature of Paul's gain on the sale of the rental property?
Answer:
$80,000 Section 1231 gain, $60,000 "unrecaptured depreciation"
Explanation:
Calculation of the amount and nature of Paul's gain on the sale of the rental property.
240,000 - 160,000 = 80,000 gain
$80,000 Section 1231 gain, $60,000 "unrecaptured depreciation"
The amount and nature of Paul's gain on the sale of the rental property will be $80,000 Section 1231 gain, $60,000 "unrecaptured depreciation" because Paul sells his residential rental property for $240,000, which was first acquired for $160,000 which is ($240,000-$160,000) making a gain of $80,000 and he has well claimed straight-line depreciation on the building of $60,000 which is the unrecaptured depreciation".