Answer:
1. ROI for each division:
Division A Division B Division C
Return on investment (DuPont) = 23% 7% 11.6%
2. Residual income (loss) $469,500 ($106,950) $0
3. Divisions A and C will probably accept the opportunity while Division B will reject it.
Explanation:
a) Data and Calculations:
Division A Division B Division C
Sales $ 15,650,000 $ 35,650,000 $ 20,520,000
Average operating assets $ 3,130,000 $ 7,130,000 $ 5,130,000
Net operating income $ 719,900 $ 499,100 $ 595,080
Minimum required rate of return 8.00 % 8.50 % 11.60 %
Return on investment (ROI) (ordinary) 23% 7% 11.6%
ROI = Net operating income/Average operating assets * 100
Return on investment (DuPont ROI) :
Asset Turnover = 5 5 4
Sales/Average operating assets
Operating income margin =
Income/Sales * 100 4.6% 1.4% 2.9%
Return on investment (DuPont) = 23% 7% 11.6%
Asset Turnover * Operating income margin
Residual income =
Net income - (Equity * RRR) $469,500 ($106,950) $0
NB: Equity is approximated to the net operating asset here.
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $ 506.83 at the end of each month over years 2, 3, and 4 (first payment is in thirteenth month).
a. What nominal interest rate is Aerotron paying on the loan? %
b. What effective interest rate are they paying? %
c. How much of the fourteenth month's payment is interest? How much is principal? payment interest = $ , and principal = $
d. How much of the eighteenth month's payment is interest? How much is principal? payment interest = $ , and principal = $
e. How much of the twenty-second month's payment is interest? How much is principal? payment interest = $ , and principal= $
Answer:
a) 12.23%
b) 12.94%
c) 14th month payment interest = $157.33
14th month principal = $369.50
d) 18th month payment interest = $142.04
18th month payment interest = $384.79
e) 22nd month payment interest = $126.12
22nd month payment interest = $400.71
Explanation:
price of truck = $15000
down payment = $1000
Loan amount = $14,000
assume monthly interest rate = r%
Loan amount after 1 year will be = 14000 * (1+r%)12
next we will determine the annuity factor = [ (1/r)-[(1/r)*(1/ (1+r)t)] ]
r = periodic interest rate , t = number of payments
monthly loan payment = $14000*(1+r%)12 / [ (1/r)-[(1/r)*(1/ (1+r)36)] ]
hence r = 1.019%
a) nominal interest rate
= 1.019% *12 = 12.23%
b) effective interest rate
= (1+1.019%)^12 -1 = 12.94%
attached below is the Amortization schedule
c) 14th month payment interest = $157.33
14th month principal = $369.50
d) 18th month payment interest = $142.04
18th month payment interest = $384.79
e) 22nd month payment interest = $126.12
22nd month payment interest = $400.71
The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $23,500 Assets $121,000 Debt $31,600 Costs 16,700 Equity 89,400 Taxable income $6,800 Total $121,000 Total $121,000 Taxes (24%) 1,632 Net income $5,168 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,560 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $28,300. What is the external financing needed?
Answer:
$20,370.5
Explanation:
Net Profit Margin = Net Profit / Sales= 5,168 / 23500 = 0.219915 = 21.99%
Dividend Payout Ratio = Dividends / Net profit = $1,560/$5,168 = 0.3018576 = 30.19%
Increase in Assets = Total Assets / Current Sales * Change in Sales
Increase in Assets = 121,000 /23,500 * (28,300-23,500)
Increase in Assets = 5.1489362 * 4800
Increase in Assets = $24714.89
Increase in Current Liabilities = Current Liabilities / Current Sales * Change in Sales = 0
Earnings Retained = Revised sales * Net profit margin * (1- dividend payout ratio)
Earnings Retained = $28,300 * 21.99% * (1 - 30.19%)
Earnings Retained = $28,300 * 0.2199 * 0.6981
Earnings Retained = $4344.39497
Earnings Retained = $4344.39
External Financing Needed = Increase in Assets - Increase in Current Liabilities - Earnings Retained
External Financing Needed = $24714.89 - $0 - $4344.39
External Financing Needed = $20,370.5
Suppose there are only two producers of aircraft in the world, AirCraft in the United States and AirEurope in the European Union. The following hypothetical payoff matrices show the profits (in millions of dollars) for each company. In the absence of subsidies, if only one company makes aircraft, it receives a profit of $90 million. If both companies decide to produce, they each lose $3 million. When a company decides not to produce, it earns zero profit.
Air Europe
Produce Not produce
Aircraft Produce -3,-3 65,0
Not Produce 0,65 0,0
Suppose that the European Union considers aircraft a strategic industry gives Air-Europe a $9 million subsidy if it produces.
With a $9 million subsidy, regardless of whether Aircraft produces Or not, AirEurope _______produce if it wants to maximize its profit.
Because AirEurope will enter the market if given a $9 million subsidy, AirCraft should also produce in this industry.
a. True
b. False
Answer:
1. AirEurope should produce if it wants to maximize its profit.
2. False
Explanation:
New payoffs after subsidy:
Aircraft/ AirEurope Produce Not Produce
Produce -3 , 6 75 , 0
Not Produce 0 , 74 0 , 0
With a $9 million subsidy, regardless of whether Aircraft produces or not, AirEurope should produce if it wants to maximize its profit.
The statement is false (Aircraft would earn a negative payoff if it enters).
Which of the following is true of a central bank that employs inflation targeting? A target rate of annual inflation is maintained by increasing or decreasing tax revenues. A target rate of employment is maintained by expanding or contracting the money supply. A target rate of annual inflation is maintained by hiring or firing federal employees. A target rate of annual inflation is maintained by expanding or contracting the money supply.
Answer:
A target rate of annual inflation is maintained by expanding or contracting the money supply.
Explanation:
Inflation targeting may be defined as the monetary policy of the central bank which follows a very explicit goal for the medium term and it announces the inflation target to the general public. According to the economist, the economy would perform better if there is inflation and the price rises. For maintaining the economic growth of a country, inflation or the rise in prices is necessary.
It is done by the Central bank by managing the monetary supply in the market and also maintaining the interest rates in the market. The inflation targeting is considered as the antidote for the stop go money policy of the past.
Duncan, Inc.'s unadjusted book balance showed cash balance of $1,763 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $427, deposits in transit of $831, NSF check of $195, and interest earned on the bank account of $15, the company's up-to-date ending cash balance equals:$_____
Answer:
the up-to-date ending cash balance is $2,167
Explanation:
The computation of the up-to-date ending cash balance is shown below:
= Cash balance + deposit in transit - outstanding checks
= $1,763 + $831 - $427
= $2,167
Hence the up-to-date ending cash balance is $2,167
We simply applied the above formula
Creating a Multimedia Presentation to Demonstrate Knowledge of Agriculture, Food, and Natural Resource Careers For this assignment, you will create a multimedia presentation on Agriculture, Food,
and Natural Resources tasks and work environments to demonstrate understanding
of these careers.
Useful references for gathering this information will be listed at the end of this
document. Your presentation should include a title slide, thirteen slides representing
tasks and work environments for specific Agriculture, Food, and Natural Resource
careers, and a works cited slide.
Assignment Instructions
Step 1: Gather materials and necessary information.
a) Use resources listed at the end of this document to create your multimedia
presentation for Agriculture, Food, and Natural Resource careers.
b) Be sure to keep a list of your references so you can cite them later.
c) Ask your teacher where you should save your presentation as you work on it.
Your teacher may also have specific guidelines about the file name you
should use.
Step 2: Create your title slide.
a) Begin by creating the title slide. On this slide, include the title of your
presentation, your name, your teacher’s name, and the due date of the presentation.b) Remember to save your work as you go.
Step 3: Provide information for Farmworkers and Laborers, Crop careers.
a) Create a slide titled Common Tasks for Farmworkers and Laborers, Crop.
b) Create a bulleted list describing four tasks for Farmworkers and Laborers, Crop
that are listed as common tasks on the O*NET site. Add a picture of at least one of
these tasks to the slide.
c) Create a slide titled Common Work Activities for Farmworkers and
Laborers, Crop.
d) Create a bulleted list describing four work activities for Farmworkers and Laborers,
Crop that are listed as common work activities on the O*NET site. Add a picture of
at least one of these work activities to the slide.
e) Create a slide titled Common Work Contexts for Farmworkers and
Laborers, Crop.
f) Create a bulleted list describing work contexts for Farmworkers and Laborers,
Crop that are listed as common work contexts on the O*NET site. Add a picture of
at least one of these common work contexts to the slide.
Step 4: Provide information for Forester careers.
a) Create a slide titled Common Tasks for Foresters.
b) Create a bulleted list describing four tasks for Foresters that are listed as common
tasks on the O*NET site. Add a picture of at least one of these tasks to the slide.
c) Create a slide titled Common Work Activities for Foresters.
d) Create a bulleted list describing four work activities for Foresters that are listed as
common work activities on the O*NET site. Add a picture of at least one of these
work activities to the slide.
e) Create a slide titled Common Work Contexts for Foresters.
f) Create a bulleted list describing work contexts for Foresters that are listed as
common work contexts on the O*NET site. Add a picture of at least one of these
common work contexts to the slide.
Step 5: Provide information for Nursery and Greenhouse Managers.
a) Create a slide titled Common Tasks for Nursery and Greenhouse Managers.
Answer:
Create a bulleted list describing four tasks for Farmworkers and Laborers, Crop that are listed as
common tasks on the O*NET site.
• Harvest plants, and transplant or pot label them.
• Harvest fruits and vegetables by hand.
• Set up and operate irrigation equipment.
Create a bulleted list describing four work activities for Farmworkers and Laborers, Crop that are listed
as common work activities on the O*NET site.
the slide.
• Handling and moving objects.
• Preforming general physical activities.
• Getting information.
• Identifying objects, actions, and events.
Create a bulleted list describing work contexts for Farmworkers and Laborers, Crop that are listed as
common work contexts on the O*NET site.
to the slide.
• Spend Time Using Your Hands to Handle, Control, or Feel Objects, Tools, or
Controls
• Face-to-Face Discussions
• Outdoors, Exposed to Weather
• Spend Time Standing
Common Tasks for Foresters
Create a bulleted list describing four tasks for Foresters that are listed as common tasks on the O*NET
site.
• Monitor contract compliance and results of forestry activities to assure adherence to
government regulations.
• Plan and supervise forestry projects, such as determining the type, number and
placement of trees to be planted, managing tree nurseries, thinning forest and
monitoring growth of new seedlings.
• Establish short- and long-term plans for management of forest lands and forest
resources.
• Determine methods of cutting and removing timber with minimum waste and
environmental damage.
Create a bulleted list describing four work activities for Foresters that are listed as common work
activities on the O*NET site.
• Getting Information
• Identifying Objects, Actions, and Events
• Organizing, Planning, and Prioritizing Work
• Communicating with Supervisors, Peers, or Subordinates
Common Work Contexts for Foresters
Create a bulleted list describing work contexts for Foresters that are listed as common work contexts on
the O*NET site.
• Electronic Mail
• Face-to-Face Discussions
• Telephone
• Freedom to Make Decisions
Common Tasks for Nursery and Greenhouse Managers
Create a bulleted list describing four tasks for Nursery and Greenhouse Managers that are listed as
common tasks on the O*NET site.
• Collect and record growth, production, and environmental data.
• Manage nurseries that grow horticultural plants for sale to trade or retail customers, for
display or exhibition, or for research.
• Direct and monitor trapping and spawning of fish, egg incubation, and fry rearing,
applying knowledge of management and fish culturing techniques.
• Direct and monitor the transfer of mature fish to lakes, ponds, streams, or commercial
tanks
Common Work Activities for Nursery and Greenhouse Managers
Create a bulleted list describing four work activities for Nursery and Greenhouse Managers that are
listed as common work activities on the O*NET site.
to the slide.
• Making Decisions and Solving Problems
• Organizing, Planning, and Prioritizing Work
• Communicating with Supervisors, Peers, or Subordinates
• Scheduling Work and Activities
Common Work Contexts for Nursery and Greenhouse Managers
Create a bulleted list describing work contexts for Nursery and Greenhouse Managers that are listed as
common work contexts on the O*NET site.
to the slide.
• Face-to-Face Discussions
• Outdoors, Exposed to Weather
• Freedom to Make Decisions
• Structured versus Unstructured Work
Veterinarians
Create a bulleted list describing four tasks for Veterinarians that are listed as common tasks on the
O*NET site.
• Treat sick or injured animals by prescribing medication, setting bones, dressing wounds,
or performing surgery.
• Inoculate animals against various diseases, such as rabies or distemper.
• Examine animals to detect and determine the nature of diseases or injuries.
• Collect body tissue, feces, blood, urine, or other body fluids for examination and
analysis.
Create a bulleted list describing four work activities for Veterinarians that are listed as common work
activities on the O*NET site.
• Making Decisions and Solving Problems
• Getting Information.
• Updating and Using Relevant Knowledge
• Identifying Objects, Actions, and Events
Common Work Contexts for Veterinarians
Create a bulleted list describing work contexts for Veterinarians that are listed as common work
contexts on the O*NET site.
• Face-to-Face Discussions
• Telephone
• Indoors, Environmentally Controlled
• Contact with others
Explanation: hope this helps this is what I got
Answer:
“Architecture and Construction Workplaces and Tasks”
Four tasks for Farm workers and Laborers
• Harvest plants, and transplant or pot label them.
• Harvest fruits and vegetables by hand.
• Set up and operate irrigation equipment.
Four work activities for Farm workers and Laborers
• Handling and moving objects.
• Performing general physical activities.
• Getting information.
• Identifying objects, actions, and events.
Work contexts for Farm workers and Laborers
• Spend Time Using Your Hands to Handle, Control, or Feel Objects, Tools, or
Controls
• Face-to-Face Discussions
• Outdoors, Exposed to Weather
• Spend Time Standing
Common Tasks for Foresters
Four tasks for Foresters
• Monitor contract compliance and results of forestry activities to assure adherence to government regulations.
• Plan and supervise forestry projects, such as determining the type, number and
placement of trees to be planted, managing tree nurseries, thinning forest and
monitoring growth of new seedlings.
• Establish short- and long-term plans for management of forest lands and forest
resources.
• Determine methods of cutting and removing timber with minimum waste and
environmental damage.
Four work activities for Foresters
• Getting Information
• Identifying Objects, Actions, and Events
• Organizing, Planning, and Prioritizing Work
• Communicating with Supervisors, Peers, or Subordinates
Common Work Contexts for Foresters
Work contexts for Foresters
• Electronic Mail
• Face-to-Face Discussions
• Telephone
• Freedom to Make Decisions
Common Tasks for Nursery and Greenhouse Managers
Four tasks for Nursery and Greenhouse Managers
• Collect and record growth, production, and environmental data.
• Manage nurseries that grow horticultural plants for sale to trade or retail customers, for
display or exhibition, or for research.
• Direct and monitor trapping and spawning of fish, egg incubation, and fry rearing,
applying knowledge of management and fish culturing techniques.
• Direct and monitor the transfer of mature fish to lakes, ponds, streams, or commercial
tanks
Common Work Activities for Nursery and Greenhouse Managers
Four work activities for Nursery and Greenhouse Managers
• Making Decisions and Solving Problems
• Organizing, Planning, and Prioritizing Work
• Communicating with Supervisors, Peers, or Subordinates
• Scheduling Work and Activities
Common Work Contexts for Nursery and Greenhouse Managers
Work contexts for Nursery and Greenhouse Managers
• Face-to-Face Discussions
• Outdoors, Exposed to Weather
• Freedom to Make Decisions
• Structured versus Unstructured Work
Veterinarians
Four tasks for Veterinarians
• Treat sick or injured animals by prescribing medication, setting bones, dressing wounds,
or performing surgery.
• Inoculate animals against various diseases, such as rabies or distemper.
• Examine animals to detect and determine the nature of diseases or injuries.
• Collect body tissue, feces, blood, urine, or other body fluids for examination and
analysis.
Work activities for Veterinarians
• Making Decisions and Solving Problems
• Getting Information.
• Updating and Using Relevant Knowledge
• Identifying Objects, Actions, and Events
Common Work Contexts for Veterinarians
Work contexts for Veterinarians
• Face-to-Face Discussions
• Telephone
• Indoors, Environmentally Controlled
• Contact with others
Explanation:
this is exactly what i turned in !!!! hope it helps
Sugarland Company is using new cost drivers for its accounting system. One driver material handling for unit variable costs and number of inspections for a pool of batch-level costs. Data for the past year follow. Budget Actual Material handling 180,000 225,000 Number of inspections 6,000 6,600 Unit variable cost pool$810,000 $1,035,000 Batch-level cost pool$115,200 $126,060 What is the total flexible budget dollar amount for the actual level of material handling and actual number of inspections
Answer:
The total flexible budget dollar amount for the actual level of material handling and actual number of inspections is $1,139,220.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question as follows:
Budget Actual
Material handling 180,000 225,000
Number of inspections 6,000 6,600
Unit variable cost pool $810,000 $1,035,000
Batch-level cost pool $115,200 $126,060
The explanation of the answer is now given as follows:
These actual amounts are the flexible budget amount with two pools.
Flexible budget dollar amount for the actual level of material handling = (Budgeted Unit variable cost pool / Budgeted Material handling) * Actual Material handling = ($810,000 / 180,000) * 225,000 = $1,012,500
Flexible budget dollar amount for the actual number of inspections = Budgeted Batch-level cost pool / Budgeted Number of inspections) * Actual Number of inspections = ($115,200 / 6,000) * 6,600 = $126,720;
Total flexible budget dollar amount = Flexible budget dollar amount for the actual level of material handling + Flexible budget dollar amount for the actual number of inspections = $1,012,500 + $126,720 = $1,139,220
Therefore, the total flexible budget dollar amount for the actual level of material handling and actual number of inspections is $1,139,220.
The following selected data pertain to Flagship Corporation: Cash operating expenses July 1-31$180,000 Depreciation 60,000 Merchandise purchases in July 560,000 Estimated payments in July for June purchases 220,000 Estimated payments in July for purchases prior to June 50,000 Estimated payments in July for purchases in July 40% July's cash disbursements are expected to be: Multiple Choice $734,000. None of the answers is correct. $674,000. $464,000. $404,000.
Answer:
Total cash disbursement in July= $674,000
Explanation:
First, we must determine the cash disbursements from July purchases and expenses:
Cash disbursements from July:
Cash operating expenses July= 180,000
Merchandise purchases in July= 560,000*0.4= 224,000
Total cash from July= $404,000
Depreciation is not a cash disbursement cost.
Now, from June and before:
Estimated payments in July for June purchases 220,000
Estimated payments in July for purchases before June 50,000
Total cash disbursement in July= 404,000 + 220,000 + 50,000
Total cash disbursement in July= $674,000
Huelskamp Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: The activity rate for the Assembly activity cost pool is closest to:
Answer:
$2.85 per labor hours
Explanation:
Note: Full question is attached below as picture
Total Overhead = Wages + Depreciation + Rent
Total Overhead = (360,000*25%) + (120,000*15%) + (180,000*35%)
Total Overhead = $90,000 + $18,000 + $63,000
Total Overhead = $171,000
Activity rate = Total Overhead / Assembly
Activity rate = $171,000 / 60,000
Activity rate = $2.85 per labor hours
ecause of coronavirus, demand for Vitamin C tablets increased significantly at CVS. CVS started to observe a weekly demand of 85 boxes of Vitamin C tablets with a standard deviation of 50 boxes. The cost of placing an order is $200, and the time from ordering to receipt is 4 weeks. The procurement cost (wholesale price) of the product is $15. The annual inventory carrying cost is 10% of the procurement cost of the product. What is the reorder point if it wants to achieve a stock out probability of 5%
Answer:
505 boxes approximately
Explanation:
The weekly demand is = d = 85 boxes
Standard deviation s = 50
Cost of placing order = $200
Ordering time = lead time L = 4 weeks
Stock out probability = 5% = 1-0.05 = 0.95
The reorder point has this formula:
(D*L)+(Z*s*√L)
To get the value of Z we use this excel function NORMSINV(0.95) = 1.644853672
When we put in values into the formula we have:
(85x4)+(1.644853672x50x2)
= 340 + 164.485
= 504.5
Approximately 505 boxes
In mobilizing the economy for the war effort, the government.. virtually abandoned competitive bidding. virtually abandoned competitive bidding. instituted a wage and price freeze to protect consumers. instituted a wage and price freeze to protect consumers. insisted on annual cost-of-living wage increases for workers in war-related industries. insisted on annual cost-of-living wage increases for workers in war-related industries. rigidly enforced anti-trust laws.
Answer:
The government usually abandons the competitive bidding in war like situation.
Explanation:
The war bring destruction to the country. It is responsibility of the government to cease internal competition during war because of external destruction. When the people in the country will not be united there will be chance that external forces may intrude in the country. To avoid such situation the government minimizes the competition and saves the country by reducing cost of living.
The purpose of the equivalent-unit computation is to ________. Group of answer choices satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units convert completed units into the amount of partially completed output units that could be made with that quantity of input predict the future production capabilities of the organization use a common metric to estimate the amount of work done on units in a period
Answer:
B)assist the business in determining the cost assigned to ending inventory and work-in-process inventory
Explanation:
THIS IS THE COMPLETE QUESTION BELOW
The purpose of the equivalent-unit computation is to ________.A)convert completed units into the amount of partially completed output units that could be made with that quantity of inputB)assist the business in determining the cost assigned to ending inventory and work-in-process inventoryC)predict the future production capabilities of the organizationD)satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent unit.
, Equivalent units in cost accounting helps to know the amount of material/ laborthat are been tied up in units as far as production is concerned it can be regarded as multiplication of units in production with percentage of units which are complete or with the one that are in process. It should be noted that The purpose of the equivalent-unit computation is to assist the business in determining the cost assigned to ending inventory and work-in-process inventory
The annual demand for a product has been projected at 2000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each time an order is placed. What level of safety stock would give a reorder point of 60 units? A. 12 B. 18 C. 10 D. 14
Answer: 12
Explanation:
The level of safety stock that would give a reorder point of 60 units goes thus:
Firstly, we should note that the formula that'll be used in calculating the reorder point will be:
= dxL + Safety stock
where,
Reorder point = 60
dxL = (2000/250) x 6 = 48
Safety stock = Unknown
We then put the values gotten into the formula which will be:
Reorder point = dxL + Safety stock
60 = 48 + safety stock
Safety stock = 60 - 48
Safety stock = 12 units
The headquarters, seller, and supplier of the service or method of operation of a franchise is called the: Group of answer choices franchisee franchisor contractee provisioner direct seller
Answer:
franchisor
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as McDonald do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee.
For instance, Mr Biggs could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.
Hence, franchise is a license that allows individuals or group of people knowledge, processes, trademarks to provide a service.
The headquarters, seller, and supplier of the service or method of operation of a franchise is called the franchisor.
ost Flow Relationships The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment: Sales $1,326,700 Gross profit 358,200 Indirect labor 119,400 Indirect materials 49,100 Other factory overhead 22,600 Materials purchased 676,600 Total manufacturing costs for the period 1,464,700 Materials inventory, end of period 49,100 Using the above information, determine the following missing amounts: a. Cost of goods sold $fill in the blank 1 b. Direct materials cost $fill in the blank 2 c. Direct labor cost $fill in the blank 3
Answer and Explanation:
The computation is shown below
a . The cost of goods sold is
= Sales - cost of goods sold
= $1,326,700 - $358,200
= $968,500
b. The direct material cost is
= Material purchased - ending inventory - indirect materials
= $676,600 - $49,100 - $49,100
= $578,400
c, The direct labor cost is
= Total manufacturing overhead cost - other factory overhead - direct material cost - indirect material - indirect labor
= $1,464,700 - $22,600 - $578,400 - $49,100 - $119,400
= $695,200
Presented below are transactions related to Carla Vista Company.
1. On December 3, Carla Vista Company sold $622,200 of merchandise on account to Flint Co., terms 4/10, n/30, FOB destination. Carla Vista paid $330 for freight charges. The cost of the merchandise sold was $372,100.
2. On December 8, Flint Co. was granted an allowance of $20,300 for merchandise purchased on December 3.
3. On December 13, Carla Vista Company received the balance due from Flint Co.
Prepare the journal entries to record these transactions on the books of Carla Vista Company using a perpetual inventory system (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.)
No. Date Account Titles and Explanation Debit Credit
1. (To record credit sale) (To record cost of merchandise sold)
2.
3. Dec 13
Assume that Carla Vista Company received the balance due from Kingbird Co., on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.)
Date Account Titles and Explanation Debit Credit
Answer:
1. Dec 3
Dr Account receivable-Novak Co $622,200
Cr Sales revenue $622,200
Dec 3
Dr Cost of goods sold $372,100
Cr Inventory $372,100
Dec 3
Dr Freight out $330
Cr Cash $330
2. Dec 8
Dr Sales allowance $20,300
Cr Account receivable-Novak Co $20,300
3. Dec 13
Dr Cash 599,492
Dr Sales discount 2,408
Cr Account receivable-Novak Co 601,900
2. January 2
Dr Cash 601,900
Cr Casta Vista co 601,900
Explanation:
Preparation for the journal entries to record these transactions on the books of Carla Vista
1. Dec 3
Dr Account receivable-Novak Co $622,200
Cr Sales revenue $622,200
(To record credit Sales)
Dec 3
Dr Cost of goods sold $372,100
Cr Inventory $372,100
(To record cost of merchandise sold)
Dec 3
Dr Freight out $330
Cr Cash $330
(To record freight charges)
2. Dec 8
Dr Sales allowance $20,300
Cr Account receivable-Novak Co $20,300
(To record sales allowance)
3. Dec 13
Dr Cash 599,492
(601,900-2,408)
Dr Sales discount 2,408
[($622,200-$20,300)*4%]
Cr Account receivable-Novak Co 601,900
($622,200-$20,300)
2. Preparation of the journal entry to record the receipt of payment on January 2
January 2
Dr Cash 601,900
Cr Casta Vista co 601,900
($622,200-$20,300)
The Polaris Company uses a job-order costing system. The following transactions occurred in October:
Raw materials purchased on account, $210,000.
Raw materials used in production, $189,000 ($151,200 direct materials and $37,800 indirect materials).
Accrued direct labor cost of $50,000 and indirect labor cost of $21,000.
Depreciation recorded on factory equipment, $106,000.
Other manufacturing overhead costs accrued during October, $130,000.
The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour.
A total of 76,300 machine-hours were used in October.
Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
Jobs that had cost $448,000 to complete according to their job cost sheets were shipped to customers during the month.
These jobs were sold on account at 30% above cost.
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.
Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.
Required 2
Manufacturing Overhead Work in Process
Beg. Bal.
End. Bal.
End. Bal.
Answer:
The Polaris Company
1. Journal Entries
Debit Raw materials $210,000
Credit Accounts payable $210,000
To record the purchase of raw materials on account.
Debit Work in Process $151,200
Debit Manufacturing Overhead $37,800
Credit Raw materials $189,000
To record materials used in production.
Debit Work in Process $50,000
Debit Manufacturing Overhead $21,000
Credit Accrued Labor Cost $71,000
To record the accrual of labor costs.
Debit Manufacturing Overhead $106,000
Credit Depreciation Expense $106,000
To record depreciation expense.
Debit Manufacturing Overhead $130,000
Credit Accrued Overhead $130,000
To record other manufacturing overhead costs.
Debit Work in Process $763,000
Credit Overhead applied $763,000
To record the overhead applied at $10 per machine hour.
Debit Finished Goods $448,000
Credit Work in Process $448,000
To record the transfer of finished goods.
Debit Cost of Goods Sold $448,000
Credit Finished Goods $448,000
To record finished goods transferred to cost of goods sold.
Debit Accounts Receivable $582,400
Credit Sales Revenue $582,400
To record the sale of goods on account.
2. T-accounts for:
Manufacturing Overhead
Account Titles Debit Credit
Raw materials $37,800
Indirect labor costs 21,000
Depreciation expense 106,000
Other overhead costs 130,000
Work in Process $763,000
Ending balance $468,200
Work in Process
Account Titles Debit Credit
Beginning balance $36,000
Raw materials 151,200
Direct labor costs 50,000
Manufacturing overhead 763,000
Finished Goods $448,000
Ending balance $552,200
Explanation:
a) Data and Analysis of October Transactions:
Raw materials $210,000 Accounts payable $210,000
Work in Process $151,200 Manufacturing Overhead $37,800 Raw materials $189,000
Work in Process $50,000 Manufacturing Overhead $21,000 Accrued Labor Cost $71,000
Manufacturing Overhead $106,000 Depreciation Expense $106,000
Other Manufacturing Overhead $130,000 Accrued Overhead $130,000
Work in Process $763,000 Overhead applied $763,000
Overhead Rate = $10 per machine hour
Total machine-hours used in October = 76,300 machine-hours
Finished Goods $448,000 Work in Process $448,000
Cost of Goods Sold $448,000 Finished Goods $448,000
Accounts Receivable $582,400 Sales Revenue $582,400 ($448,000 * 1.3)
Detrich Products is planning to upgrade an aging manufacturing operation five years from now at a cost of $100,000. If the company plans to deposit money into an account each year for four years beginning two years from now (first deposit is in year 2) to pay for the expansion, the amount of the deposit at 10% per year interest is closest to
Answer:
$21,547.08
Explanation:
To get the amount of the deposit, we use the PMT function of MS Excel
Rate = 10%
Nper = 4
Pv = 0
FV = -100000
PMT = ?
The amount of the deposit = PMT(Rate, Nper, PV, -FV)
The amount of the deposit = PMT(10%, 4, 0, -100000)
The amount of the deposit = 21547.08037
The amount of the deposit = $21,547.08
So, the amount of the deposit at 10% per year interest is closest to $21,547.08
Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 179,000 Permanent differences (16,100 ) 162,900 Temporary difference-depreciation (11,100 ) Taxable income $ 151,800 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 14,000 As of December 31, 2021 $ 25,100 The enacted tax rate was 27% for 2020 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2021
Answer:
the current portion of the income tax expense is $40,986
Explanation:
The computation of the current portion of the income tax expense is shown below:
= Taxable income × enacted tax rate
= $151,800 × 27%
= $40,986
hence the current portion of the income tax expense is $40,986
We simply applied the above formula
Hubert lives in San Francisco and runs a business that sells boats. In an average year, he receives $842,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as an accountant, receive an annual salary of $48,000 with no additional monetary costs, and rent out his showroom at the $38,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Hubert's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost Explicit Cost
The wholesale cost for the pianos that Hubert pays the manufacturer
The salary Hubert could earn if he worked as an accountant
The wages and utility bills that Hubert pays
The rental income Hubert could receive if he chose to rent out his showroom
Complete the following table by determining Hubert's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Hubert's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.
Answer:
Explicit costs are normal costs of operating a business.
Implicit costs are opportunity costs meaning that they are the benefits foregone by engaging in a certain course of action.
The wholesale cost for the pianos that Hubert pays the manufacturer ⇒ EXPLICIT COST.
The salary Hubert could earn if he worked as an accountant ⇒ IMPLICIT COST.
The wages and utility bills that Hubert pays ⇒ EXPLICIT COST
The rental income Hubert could receive if he chose to rent out his showroom. ⇒ IMPLICIT COSTS
Accounting Profit = Revenue - Explicit costs
= 842,000 - 452,000 - 301,000
= $89,000
Economic Profit = Revenue - Explicit costs - Implicit costs
= 842,000 - 452,000 - 301,000 - 38,000 - 48,000
= $3,000
If Hubert's goal is to maximize his economic profit, he should stay in the piano business because the economic profit he would earn as an accountant would be -$3,000.
Economic profit as accountant = Salary + rental income - accounting profit from piano
= 48,000 + 38,000 - 89,000
= -$3,000
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $45,000 of cleaning services on account. Collected $39,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $300 account receivable that was determined to be uncollectible. Provided $62,000 of cleaning services on account. Collected $61,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.
Question Completion:
Show the effects of the transactions on the accounting equation for each year.
Answer:
Rosie Dry Cleaning
Effects on the accounting equation of Assets = Liabilities + Equity:
Year 1:
Assets (Accounts Receivable +$45,000) = Liabilities + Equity (Retained earnings: Service Revenue +$45,000)
Assets (Cash +$39,000; Accounts Receivable -$39,000) = Liabilities + Equity
Assets (Accounts Receivable ($450)) = Liabilities + Equity (Retained Earnings - Bad Debt Expense ($450))
Year 2:
Assets (Accounts Receivable ($300)) = Liabilities + Equity (Retained Earnings: Bad Debts Expense ($300))
Assets (Accounts Receivable +$62,000) = Liabilities + Equity (Retained Earnings: Service Revenue +$62,000)
Assets (Cash +$61,000; Accounts Receivable -$61,000) = Liabilities + Equity
Assets (Accounts Receivable ($620)) = Liabilities + Equity (Retained Earnings: Bad Debt Expense ($620))
Explanation:
a) Data and Analysis:
Year 1:
Accounts Receivable $45,000 Service Revenue $45,000
Cash $39,000 Accounts Receivable $39,000
Accounts Receivable ($450) Bad Debt Expense ($450)
Year 2:
Accounts Receivable ($300) Bad Debts Expense $300
Accounts Receivable $62,000 Service Revenue $62,000
Cash $61,000 Accounts Receivable $61,000
Accounts Receivable ($620) Bad Debt Expense ($620)
b) The accounting equation is an important concept of accounting which explains that at every given time, the assets of the business are equal to its liabilities and equity. The implication is that the entity's assets are funded by a combination of debts to third parties and owners' equity (capital contributions + retained earnings).
Hester operates a hand car wash service and charges customers $10 per car wash. Based on her knowledge of operations, the 100th car in a day costs her $9.95 to wash. If she takes additional business, however, the 101st car will cost her $10.05 to wash. Does she take the additional business? Group of answer choices No, because she has hidden costs that far exceed her estimate of $10.05, so she loses money. No. She turns away business when the cost of an additional unit exceeds the income from it. No, because taking on additional business doesn’t earn her any money. Yes, because if she turns away business, his service will be forced to close. Yes. More business means more revenue, and more revenue means more profits.
Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.
Explanation:
In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.
At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.
At the International Toy Fair, you decide to study retailers to understand how to improve their experience at your booth. You recruit 100 attendees each day of the three-day convention who agree to evaluate 10 booths of their choosing and record their evaluations on digital tablets. You take pictures of each of the booths evaluated, and tally the results of these 300 online surveys. Totally you have 3,000 booth evaluations, covering more than 120 different booths. You designed a:________
a. monitoring study
b. qualitative research study
c. quantitative research study
d. causal-explanatory study
e. descriptive study
Answer:
quatitative research study
Explanation:
In Business budgets and a demand for speed usually needs or dictate a single-methodology study.
Case study is simply defined as a form of qualitative or mixed method research and it uses a form of an intense examination of an individual, group, or organization. It is often refered to as an ABA design. In single-case experimental design, it baseline data are obtained (A) the IV is introduced and behavior is measured again (B) thereafter the IV is withdrawn and behavior is observed a third time. (A)
An investor believes that the U.S. dollar will rise in value relative to the Japanese yen. The same investor is considering two investments with identical risk and return characteristics. One stock is trading in yen in Japan and the other stock is a stock trading in dollars in the United States. Should the investor purchase the Japanese stock?
Answer:
No. The investor will lose money in the currency exchange if the U.S. dollar gains strength relative to the Japanese yen.
Explanation:
From the question, we are informed about An investor who believes that the U.S. dollar will rise in value relative to the Japanese yen. The same investor is considering two investments with identical risk and return characteristics. One stock is trading in yen in Japan and the other stock is a stock trading in dollars in the United States. In this case , the investor should not purchase the Japanese stock this is because he will lose money in the body of currency exchange, especially in a case whereby U.S. dollar gains strength in relative to Japanese yen.
Consider a five-person family consisting of a father, mother, twin 16-year-old sons attending high school, and an 85-year- old grandfather. The grandfather receives Social Security but has no other sources of income. The father and mother provide the majority of the grandfather's financial support because of his expensive in-home medical care. In 2017, before the change in the tax laws, what is the approximate amount of money that the parents would be able to deduct from their adjusted gross income based on their personal exemptions
The correct answer to this open question is the following.
Unfortunately, you forgot to attach the options for this question.
However, trying to help, we can say the following.
In 2017, before the change in the tax laws, the approximate amount of money that the parents would be able to deduct from their adjusted gross income based on their personal exemptions was $16,000.-
In the federal government taxation regulations periodically changes and adjust to consider new circumstances. That is why the IRS continually makes adjustments.
In December 2017, Congress passed the Jobs Act and Tax Cuts, modifying credits work and tax deductions of American families. Among the most important changes that started to be valid in 2018 was the removal of exemptions. That is why, before this removal of exemptions was valid, the head of the family could get personal exceptions for qualified family members such as the wife and children, or any other dependent.
Compare the following sets of message openers. Circle the letter of the opener that illustrates a direct opening. Write an appropriate subject line for each opening paragraph. An e-mail announcing a low-cost day-care program:
a. Employees interested in enrolling their children in our new low-cost day-care program are invited to attend an HR orientation on January 18.
b. For several years we have studied the possibility of offering a day-care option for those employees who are parents. until recently, our management team was unable to agree on the exact parameters of this benefit, but now some of you will be able to take advantage of this option.
Answer:
a. Employees interested in enrolling their children in our new low-cost day-care program are invited to attend an HR orientation on January 18.
Explanation:
Subject line: HR orientation regarding new day-care program.
The problem with message (b) is that it is not direct and includes a lot of information that should go further down the email, not as an opener. Information regarding previous options or how difficult this project do not belong here.
Which of the statements is not true about a bank run? Fears leading to bank runs can be self-fulfilling. There was a wave of bank runs during the Great Depression. Bank runs are bad for the bank affected and usually good for the bank's competitors. Deposit insurance is designed to reduce the risk of bank runs for depository banks. Since the Great Depression the government has set up regulation that has eliminated most bank runs.
Answer:
Bank runs are bad for the bank affected and usually good for the bank's competitors
Explanation:
A bank run happens when bank depositors withdraw their money deposited due to fear of the bank's solvency.
Bank runs can work as a self fulfilling prophecy. For example, if there a rumour that a bank is insolvent and it is not, depositors would start withdrawing their monies. This would eventually lead to the bank being insolvent.
Bank runs affect other banks and can lead to the collapse of the whole financial system. Bank runs occurred during the great depression
Bank runs led to the establishment of deposit insurance. The aim of deposit insurance is to increase the confidence of depositors in banks because depositors know their deposits are insured
Steel Mill Inc. makes an offer to Teri to enter into a contract to work as an metallurgical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Teri accepts the offer. This is a valid contract because it includes Group of answer choices a price and a subject. a duration and a termination. specific quality standards. an offer and an acceptance.
Answer:
an offer and an acceptance.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
In this scenario, Steel Mill Inc. makes an offer to Teri to enter into a contract to work as an metallurgical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Teri accepts the offer. This is a valid contract because it includes an offer and an acceptance.
On December 31, 2014, Oakbrook Inc. rendered services to Beghun Corporation at an agreed price of $102,049, accepting $40,000 down and agreeing to accept the balance in four equal installments of $20,000 receivable each December 31. An assumed interest rate of 11% is imputed.
Instructions:
Prepare the entries that would be recorded by Oakbrook Inc. for the sale and for the receipts and interest on the following dates. (Assume that the effective-interest method is used for amortization purposes.)
(a) December 31, 2014.
(b) December 31, 2016.
(c) December 31, 2018.
(d) December 31, 2015.
(e) December 31, 2017.
Answer:
(a) December 31, 2014.
Dr Cash 40,000
Dr Notes receivable 80,000
Cr Service revenue 102,049
Cr Discount on notes receivable 17,951
(b) December 31, 2016.
Dr Cash 20,000
Dr Discount on notes receivable 5,376
Cr Notes receivable 20,000
Cr Interest revenue 5,376
(c) December 31, 2018.
Dr Cash 20,000
Dr Discount on notes receivable 1,982
Cr Notes receivable 20,000
Cr Interest revenue 1,982
(d) December 31, 2015.
Dr Cash 20,000
Dr Discount on notes receivable 6,825
Cr Notes receivable 20,000
Cr Interest revenue 6,825
(e) December 31, 2017.
Dr Cash 20,000
Dr Discount on notes receivable 3,768
Cr Notes receivable 20,000
Cr Interest revenue 3,768
A baker knows that her customers will pay $5 for a loaf of bread, but if the marginal
utility decreases after the first loaf, how might the baker get her customers to buy more
than one loaf?
Answer: Sell at lower price
Explanation:
Marginal Utility is the amount of satisfaction that her customers will get with every additional unit of bread purchased.
If the marginal utility decreases, her customers will buy less bread because to them, it is not as valuable anymore. If she offers her bread at lower prices, the customers would buy more because the new price will align with the lower utility the customers get from the additional loaves.