Answer:
The answer is B. 1 and 3
Explanation:
After the purchase of the dining room table, Joe owns it and controls it. Therefore, it will be an asset on the client's balance sheet..
It is also a variable outflow on the client's cash flow statement because the outflow is one-off. It doesn't occur monthly or yearly.
It will be a fixed outflow on the client's cash flow statement if it occurs monthly, semiannual or annually, like payment on servicing debts which reoccurs.
In the 1990s, prices in the United States rose steadily by an average of about 2.66% per year. What is the economic term for a sustained increase in the price level such as the one experienced by the United States in the 1990s? Disinflation Hyperinflation Deflation Inflation
Answer:
inflation
Explanation:
The inflation rate refers to the rate at which the general price level of the goods and services sold in a country increase from one period to another. Generally inflation is measured in a quarter or yearly basis. A low inflation rate, like the one experienced during the 1990s is generally considered good and healthy for an economy.
When the inflation rate is extremely high, at least 50% per month, it is defined as hyperinflation.
Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $61,000. and Martin's capital balance $58,000. Hewlett and Martin have agreed to share equally in income or loss. The existing partners agree to accept Black with a 20% interest. Black will invest $35,600 in the partnership. The bonus that is granted to Hewlett and Martin equals:___________ a) $2,340 each b) $3,560 each. c) $0, because Hewlett and Martin actually grant a bonus to Black d) 1,825 to Hewlett; $1,780 to Martin. e) $1,825 each.
Answer:
The bonus hat is granted to Hewlett and Martin equals is $2340
Explanation:
Solution
Given that:
Hewlett's capital balance = $61,000
Martin's capital balance = $58,000
The existing partners agrees ti accept black with =20% interest
Black invest the amount of =$35,600
Now,
The equity after admitting black or allowing black is given below:
$61,000 + $58,000 +$35,600 = $154,600
The share of black in equity is given as,
$154, 600 * 20% = $30,920
The Bonus that is present for Hewlett and Martin is = $35,600 - $30,920
=$4,680
Thus,
When shared equally it is = $2340 for both partners
Matt plans to start his own business once he graduates from college. He plans to save $1,400 every six months for the next five years. If his savings earn 10% annually (or 5% every six months), determine how much he will save by the end of the fifth year.
Answer:
$18,453.40
Explanation:
the easiest way to determine how much money Matt is going to save is by using the future value annuity factor. Using a future value annuity table, we must look for the value that correspond to 5% interest and 10 periods = 13.181
Now we multiply our annuity factor times the amount of money that Matt saves every 6 months = $1,400 x 13.181 = $18,453.40
When Matt graduates from college he should have saved $18,453.40.
Matt will save $17609.2 at the end of the fifth year, if his savings earn 10% annually (or 5% every six months).
What do you mean by future value of an annuity?
The future value of an annuity is the group of repeated payments for a specific future date, deducted a certain refund rate, or a discount rate. The higher the discount rate, the greater the annuity amount.
Formula of future value of an annuity:
[tex]FV = P \times[ \dfrac{(1+r)^{n}-1 }{r}]\\[/tex]
As per the information:
Payment is $1,400
Rate is 10%, semiannually compounded that will become 5%
Number of periods is 5 years, compounded semiannually will be equal to 10 ( 5 multiplied by 2)
Future value of annuity is equal to :
[tex]\rm\,FV = P \times[ \dfrac{(1+0.05)^{10} - 1}{0.05}]\\\\\rm\,FV = 1,400 \times[ \dfrac{(1+0.05)^{10} - 1}{0.05}]\\\\FV = 1,400 \times 12.578\\\\\rm\,FV = \$17609.2[/tex]
Hence, matt will save $17609.2 at the end of the fifth year.
Learn more about Future value of annuity, refer:
https://brainly.com/question/27011316
On September 1, Knack Company signed a $50,000, 90-day, 5% note payable with Central Savings Bank. What is the journal entry that should be recorded by Knack upon maturity of the note
Answer:
A journal entry was prepared for KNACK COMPANY that recorded Knack Maturity of Notes.
Explanation:
Solution
Given That:
KNACK COMPANY
JOURNAL ENTRY
Date Accounts and Explanation Debit Credit
Sep 01 5% Notes Payable A/C 50000
Interest Expenses A/C (50000*5%*90/360)625
Cash Account 50625
(record maturity of notes payable)
Therefore from the Journal entry, Debit notes payable 50000; Debit Interest Epenses 625; Credit Cash 50625.
What is the opportunity cost of owning a business? I. The economic profits that the business earns II. The accounting profits that the business earns III. The profits that could be earned in another business using the same amount of resources
Answer:
III. The profits that could be earned in another business using the same amount of resources.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Hence, the opportunity cost of owning a business is the profits that could be earned in another business using the same amount of resources.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
During 2014, Comstock Company entered into the following transactions.
1. Purchased equipment for $286,176 cash.
2. Issued common stock to investors for $137,590 cash.
3. Purchased inventory of $68,480 on account.
Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the right-hand margin. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary. Use Illustration3-3 as a model.
Answer:
1.
Assets : Increase $286,176, Decrease $286,176
Liabilities : No Effect
Equity : No Effect
2.
Assets : Increase $137,590
Liabilities : No Effect
Equity : Increase $137,590
3.
Assets : Increase $68,480
Liabilities : Increase $68,480
Equity : No Effect
Explanation:
Purchase of equipment
This will increase the assets of Equipment and decrease the Assets of Cash. No effect on the other elements of the Accounting Equation.
Issuance of common stock
This will increase the assets of cash and increase the shareholder`s equity. No effect on liabilities
Purchased inventory on Account.
This will Increase the assets of inventory and also increase the assets of Accounts Payable. No effect on Equity
What would be the cost of new common stock equity for Tangshan Mining if the firm just paid a dividend of $4.25, the stock price is $55.00, dividends are expected to grow at 8.5 percent indefinitely, and flotation costs are $6.25 per share
Answer:
The cost of new common stock equity would be 17.96%
Explanation:
In order to calculate the cost of new common stock equity we would have to make the following calculation:
cost of new common stock equity=(D1/Current price-flotation costs)+Growth rate
According to the given data we have the following:
Growth rate=8.5%
flotation costs=$6.25 per share
stock price=$55.00
dividend=$4.25
Therefore, cost of new common stock equity=(4.25*1.085)/(55-6.25)+0.085
cost of new common stock equity=(4.61125/48.75)+0.085
cost of new common stock equity=17.96%
The cost of new common stock equity would be 17.96%
T. Boone Pickens football stadium at Oklahoma State University has a seating capacity of about 40,000. Assume the stadium sells out all six home games before the season begins and the athletic department collects $31 million in ticket sales.
Required:
a. What was the average price per season ticket and average price per individual game ticket sold?
b. Record the advance collection of $29 million in ticket sales.
c. Record the revenue earned after the first home game was completed.
Answer:
Total collection of ticket sales is $31 million
Seating capacity is 40,000 tickets
Average price per season ticket = Total collection / Seating capacity
=$31,000,000 / 40,000
=$775
Therefore, the average price per season ticket is $775
Average price per individual game ticket sold = Average price per ticket / Number of games
= 775 / 6
= $129
Therefore, the average price per individual game sold is $129 and the number of games is 6
2. Journal entry to record advance collection of $31 million in ticket sales
Account Title and Explanation Debit$ Credit$
Cash $31,000,000
Unearned Ticket Revenue $31,000,000
(To record entry for advance received)
3. Journal entry to record revenue earned after the first home game was completed
Account Title and Explanation Debit$ Credit$
Unearned Ticket Revenue 5,160,000
($129 per individual game * 40,000 tickets)
Service Revenue 5,160,000
(To record unearned ticket revenue)
On January 1 of the current year (Year 1), our company acquired a truck for $75,000. The estimated useful life of the truck is 5 years or 100,000 miles. The residual value at the end of 5 years is estimated to be $5,000. The actual mileage for the truck was 22,000 miles in Year 1 and 27,000 miles in Year 2. What is the depreciation expense for the second year of use (Year 2) if we use the units of production method
Answer:
The depreciation expense for the second year of use (Year 2) if we use the units of production method is $18,900.
Explanation:
Units of production method is depreciation method that considers the number of units that an asset produces more closely relevant than the number of economic useful life of the assets. The method therefore produces a greater depreciation expenses in years when the assets is heavily put into use.
Under the units of production method, the depreciation expenses for a particular is the original cost of the equipment minus its salvage value, and this is then multiplied by the ratio of the expected number of units the asset should produce in that year to the number of units the asset is expected to produce in its useful life. Mathematically, this can be stated as follows:
Depreciation expenses for a particular = (Cost - Salvage/Residual value) * (Units produced in the year / Total units expected to produce throughout useful life)
To calculate the depreciation expense for the second year of use (Year 2) in this question, use the above formula as follows:
Depreciation expenses in Year 2 = ($75,000 - $5,000) * (27,000 / 100,000) = $70,000 * 0.27 = $18,900
Therefore, the depreciation expense for the second year of use (Year 2) if we use the units of production method is $18,900.
NB - Extra Information that can assist your learning:
Although this is not part of the question, but we can also compute the depreciation expenses for Year 1 in order to compare it with Year 2 as follows:
Depreciation expenses in year 1 = ($75,000 - $5,000) * (22,000 / 100,000) = $70,000 * 0.22 = $15,400.
We can see that the depreciation expenses of $18,900 for Year 2 is greater than the depreciation expenses of $15,400 for Year 1. The reason is that the truck is more heavily used in Year 2 at 27,000 miles than in Year 1 at just 22,000 miles.
When a company pays a dividend, it isn't as simple as getting a paycheck from one's employer. There are several critical dates in the dividend payment process. Identify each of the critical dividend dates in the table.
The date on which a firm's director issues a statement announcing a dividend.
Date - _____
The firm actually sends the dividend checks on this date.
Date - _____
If the company lists the stockholder as an owner on this date, then the stockholder receives the dividend.
Date - _____
The date on which the right to the current dividend no longer accompanies a stock.
Date - _____
Answer: 1. Declaration Date
2. Payment Date
3. Holder-of-record date
4. Ex-dividend date
Explanation:
1. On the Declaration Date, the company's Director announces that they will pay a dividend as well as the amount of the dividend. This is recorded in the books by crediting it to Dividends payable.
2. On Payment day the dividends are disbursed amongst shareholders. Cash Account is credited and Dividends Payable is debited.
3. The Holder-of-record day is the day the company notes who the owners of it's stock are so that they may receive the dividend.
4. On the Ex-dividend date which is usually 2 days before the record date, any stock bought on or after this date will.not receive any Dividend payment.
A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $233,000. The current period's entry to record the warranty expense is:
Answer:
Dr Warranty expenses 9,320
Cr Estimated Warranty Liability 9,320
Explanation:
Preparation of thecurrent period's entry to record the warranty expense for A company
Since A company estimates that the warranty expense will be 4% of sales while the sales for the current period are $233,000 this means we have to find the 4% of $233,000 which gives us 9,320.
Hence the transaction will be recorded as :
Dr Warranty expenses 9,320
(4%×233,000)
Cr Estimated Warranty Liability 9,320
On October 1, 2018, Mills Company borrowed $52,000 cash on a one-year note that required Mills to pay 7 percent interest and $52,000 principal, both on September 30, 2019. Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note
Answer:
$910
Explanation:
As there are only 3 months left to end 2019 we will multiply the principal amount with interest and apportion it according to remaining months
Debt to interest payable = $52000 x 7% x 3/12
Debt to interest payable = $910
1. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6%, 9-month note. What is the adjusting entry required if Sadowski Brick Company prepares financial statements on June 30
Answer:
Debit interest expenses for $15,000
Credit interest payable for $15,000
Explanation:
Since January 1 to June 30 is 6 months, we need to calculate interest expenses for the 6 months as follows:
Monthly interest expenses = ($500,000 * 6%) / 12 = $2,500
Interest expenses for 6 months = $2,500 * 6 = $15,000
The adjusting entry required will therefore look as follws:
Date Particulars Dr ($) Cr ($)
June 30 Interest expenses 15,000
Interest payable 15,000
(To record 6 months interest payable on note.)
In 2010, the BowWow Company purchased 11,752 units from its supplier at a cost of $ 11.73 per unit. BowWow sold 18,971 units of its product in 2010 at a price of $ 24.86 per unit. BowWow began 2010 with $ 864,593 in inventory (inventory is carried at a cost of $ 11.73 per unit). Using this information, compute BowWow's 2010 ending inventory balance (in dollars).
Answer:
Ending inventory balance is $ 779,914.13
Explanation:
The cost of goods sold formula can be used to determine the ending inventory by rearranging the formula and making the ending inventory the subject of the formula:
cost of goods=beginning inventory+inventory purchased-ending inventory
ending inventory=beginning inventory+inventory purchased-costs of goods sold
ending inventory=$864,593+(11,752*$11.73)-(18971*$11.73)=$ 779,914.13
A company's beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
Answer:
Total number of equivalent units= 100,000
Explanation:
Giving the following information:
A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period.
Weighted-average method:
Units completed= 90,000
Ending inventory= 25,000*0.4= 10,000
Total number of equivalent units= 100,000
Carla Vista Electronics reported the following information at its annual meetings: The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,184,800, accounts receivables of $3,472,300, short-term notes payable worth $1,136,100, and other current assets of $121,455. What is the company's net working capital
Answer:
$6,718,553
Explanation:
Working capital is the net of current assets (Inventory, account receivables, Cash etc) and current liabilities (Accounts payable, short term notes payable etc).
It is a financial measure that gives insight into how liquid a company is. .
As such, the company's working capital
= $1,235,455 - $4,159,357 + $7,184,800 + $3,472,300 - $1,136,100 + $121,455
( the signs are positive for assets and negative for liabilities)
= $6,718,553
In May direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $120,600 and the direct materials cost was $29,200, the direct labor cost was:
Answer:
direct labor= $80,400
Explanation:
Giving the following information:
In May direct labor was 40% of conversion cost. The manufacturing overhead for the month was $120,600.
The conversion costs are the sum of direct labor and manufacturing overhead.
Conversion costs= 120,600/0.6= 201,000
direct labor= 210,000*0.4= 80,400
United Apparel has the following balances in its stockholders' equity accounts on December 31, 2021: Treasury Stock, $850,000; Common Stock, $600,000; Preferred Stock, $3,600,000; Retained Earnings, $2,200,000; and Additional Paid-in Capital, $8,800,000.
Required:
Prepare the stockholders' equity section of the balance sheet for United Apparel as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
The answer is $14,350,000
Explanation:
UNITED CAPITAL
BALANCE SHEET
(STOCKHOLDERS' EQUITY SECTION)
DECEMBER 31, 2021
Preferred Stock $3,600,000
Common Stock. $600,000
Additional Paid-in Capital $8,800,000
Total Paid-in Capital. $13,000,000
Retained Earnings $2,200,000
Treasury Stock,. -$850,000
Total Stockholders'equity $14,350,000
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$880,000 Not yet due 1.25%
352,000 1 to 30 days past due 2.00
70,400 31 to 60 days past due 6.50
35,200 61 to 90 days past due 32.75
14,080 Over 90 days past due 68.00
Required:
a. Compute the required balance of the Allowance for Douitful Accounts at December 31 using an aging of accounts receivable.
b. Prepare the adjusting entry to record bad debts expense at December 31.
c. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?
Answer:
(a) The required balance in allowance for doubtful debt account is $43,718.4.
(b) The adjusting entry to record bad debts expense at December 31 is:
Debit Bad debt expense ($43,718.4 - $15,500) $28,218.4
Credit Allowance for doubtful accounts $28,218.4
(To record bad debt expense)
(c) The write-off does not affect Jarden's net income since it would be between allowance for doubtful accounts and the accounts receivable.
Explanation:
An allowance for doubtful accounts is an estimate of the accounts receivable that is deemed uncollectible.
(a) Computation of the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable
Accounts Rec. Age Accounts Rec. %Uncollectible Allowance
$880,000 Not yet due 1.25 $11,000
352,000 1 to 30 days past due 2.00 7,040
70,400 31 to 60 days past due 6.50 4,576
35,200 61 to 90 days past due 32.75 11,528
14,080 Over 90 days past due 68.00 9,574.4
$1,351,680 $43,718.4
Suppose you borrow $10,000 right now to start a business. If the terms of the loan require you to pay back $16,000 in 5 years, what is the implied annual compound interest rate
Answer:
r = 9.86%
Explanation:
The formula for calculating the future value of an invested amount yielding a compound interest is given by:
[tex]FV=PV(1+\frac{r}{n})^{nt}[/tex]
where:
FV = future value = $16,000
PV = present value = $10,000
r = interest rate = ?
n = number of compounding period per year = 1
t = time in years = 5
∴ [tex]16000=10000(1+\frac{r}{1})^{5}[/tex]
dividing both sides by 10,000
[tex]\frac{16000}{10000} =\frac{10000(1+\frac{r}{1})^{5}}{10000}[/tex]
[tex]1.6 = (1 + r)^{5}[/tex]
to remove the power of 5, we have to take the 5th root of both sides:
[tex](1.6)^{1/5} = (1 + r )^{5 * 1/5}[/tex]
Using your calculator:
1.09856 = 1 + r
∴ r = 1.09856 - 1 = 0.09856
r = 0.0986 = 9.86%
∴ r = 9.86%
For each of the following transactions of JonesSpa Corporation, for the month of January, identify each as an investing activity or financing activity on the statement of cash flows for January. (If the activity does not affect the statement of cash flows, select No Effect.)
Answer:
1. Paid cash to purchase inventory
OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT
2. Purchased land by issuing common stock
NON CASH INVESTING AND FINANCING ACTIVITY, DOES NOT AFFECT CASH FLOW STATEMENT
3. Accounts receivable decreased in the year
OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT
4. Sold equipment for cash
INVESTING ACTIVITY, INCREASES CASH FLOW STATEMENT
5. Recorded depreciation expense
OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT
6. Income taxes payable increased in the year
OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT
7. Declared and paid a cash dividend
FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT
8. Accounts payable decreased in the year
OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT
9. Paid cash to settle notes payable
FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT
10. Prepaid expenses increased in the year
OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT
11. Sold inventory for cash
OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT
12. Paid cash to acquire treasury stock
FINANCING ACTIVITY, DECREASES CASH FLOW STATEMENT
13. Net income
OPERATING ACTIVITY, INCREASES CASH FLOW STATEMENT
14. Decrease in accrued liabilities
OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT
15. Increase in prepaid expenses
OPERATING ACTIVITY, DECREASES CASH FLOW STATEMENT
If a firm increases its use of both operating and financial leverage, then you should expect the firm's: Multiple Choice asset beta to exceed its equity beta. beta of debt to exceed 1.0. beta to remain constant as the increased operating leverage will offset the increased financial leverage. equity beta to increase.
Answer:
equity beta to increase
Explanation:
Operating leverage is the method which determines the sensitivity to company's fixed cost. Financial leverage determines the extent to which debt is used finance business operations. When financial leverage increases its gives rise to equity beta. Asset beta is the unlevered beta and equity beta is the levered beta. Equity beta considers different level of debt and incorporates the risk factor into it.
When a monopolistically competitive market opens up to international trade, each firm produces a greater quantity of output than it did before. Explain why this is
Answer:
The correct answer is the increase in the amount of buyers.
Explanation:
To begin with, due to the fact that the company is now selling internationally then the market is wide more open for them to increase the portfolio of clients and moreover to increase the amount of sales that the company is having. Therefore that when the company starts to trade internationally it will increase its amount of consumers that will be able to buy from them and also the amount of resellers that can buy from them to buy to final consumers. Primarily, the improvement in the increase of buyers will tend to increase the amount of production that the company is producing and so also the amount of sales so therefore that the company will produce a greater quantity of output than it did before.
Deborah Lewis, general manager of the Northwest Division of Berkshire Co., has significant authority over pricing decisions as well as programs that involve cost reduction/control. The data that follow relate to upcoming divisional operations:
Average invested capital: $15,000,000
Annual total fixed costs: $3,900,000
Variable cost per unit: $80
Number of units expected to be sold: 120,000
Assume the unit selling price is $132 and that Berkshire has a 16% imputed interest charge.
Top management will promote Deborah to corporate headquarters if her division can generate $200,000 of residual income (RI). If Deborah desires to move to corporate, what adjustment must the division do to the amount of annual total fixed costs?
Answer:
The revised fixed costs = $3,640,000
Explanation:
Calculation of Residual Income:
Residual Income = Net income - (Invested capital * Minimum required rate of return)
Net Income = Sales - Variable costs - Fixed costs
Net Income = (120,000*132) - (120,000*80) - 3,900,000
Net Income = $2,340,000
Invested capital = $15,000,000
Minimum required rate of return = 16%
Therefore, residual income = $2,340,000 - ($15,000,000 * 16%)
= -$60,000
Hence, adjustment to be made to the amount of fixed costs so that residual income becomes $200,000 = $200,000+$60,000 = $260,000
Therefore, revised fixed costs = $3,900,000 - $260,000 = $3,640,000
A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $11,600. The present value of an annuity factor for 5 years at 10% is 3.7908. The present value of a single sum factor for 5 years at 10% is .6209. The present value of the loan is:
Answer:
The present value of the loan is $43,973.98
Explanation:
In order to calculate the present value of the loan we would have to make the following calculation:
Present value of the loan=annual payments*present value of an annuity factor for 5 years at 10%
annual payments=$11,600
present value of an annuity factor for 5 years at 10%=3.7908
Therefore, Present value of the loan=$11,600*3.7908
Present value of the loan=$43,973.98
The present value of the loan is $43,973.98
B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?A. 86,100B. 42,900C. 55,520D. 57,900
Answer:
Total equivalent units= 60,300
Explanation:
Giving the following information:
Beginning inventory= 5,000 units
An additional 68,500 units were transferred in from the prior department.
There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete concerning conversion costs.
We need to calculate the number of conversion units.
We will use the following structure:
Beginning WIP= 5,000
Transferred-in= 68,500
Total= 73,500
Ending WIP= (33,000)
Complete units= 40,500
The calculation for completion WIP:
ending wip*completion of WIP
33,000*0.6= 19,800
Total equivalent units= 40,500 + 19,800= 60,300
The marginal product of labor Multiple Choice measures how output changes as the wage rate changes. is less than the average product of labor when the average product of labor is decreasing. is negative when adding another unit of labor decreases output. both "measures how output changes as the wage rate changes" and "is less than the average product of labor when the average product of labor is decreasing". both "is less than the average product of labor when the average product of labor is decreasing" and "is negative when adding another unit of labor decreases output".
Answer:
is less than the average product of labor when the average product of labor is decreasing.
is negative when adding another unit of labor decreases output.
Explanation:
The marginal product of labor refers to the change in the output with respect to adding additional or extra units of labor keeping other factors constant.
The formula for computing the marginal product of labor is
= Total product ÷ Change in labor
By dividing the total product from the change in labor we can get the marginal product of labor
It is always less than the average product of labor in the case when it is declined i.e average product labor
And it would be negative when extra or other units is added that result into a decrease in an output
For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance totals to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for $5,200.
b. The entry for $1,125 of supplies used during the period was journalized as a debit to Supplies Expense of $1,125 and a credit to Supplies of $1,152.
Answer:
a) The debit and credit side of the unadjusted trial balance would be increased by $ 5200.
b) The debit side would remain unchanged. No effect will be seen in the adjusted trial balance.
Explanation:
Effect of adjustments on adjusted Trial Balance.
This first entry would increase the wages expense and increase the liability account in the adjusted trial balance. Both debit and credit side would be increased by an equal amount.
b) This would decrease the Supplies account and increase the supplies expense in the unadjusted account. As both are on the debit side there would be no effect in the debit total.
Sr No Account Debit Credit
Original Entries
a. Wages Expense 5200
Accounts Payable 5200
b. Supplies Expense 1125
Supplies Account 1125
Correct Entries
a. Wages Expense 5200
Accrued Wages Account Payable 5200
b. Supplies Expense 1125
Supplies Account 1125
Difference:
a) We see that the first entry which was original passed the debit side is correct but the credit side would have been of accrued wages instead of accounts payable . This is to raise the amount by which wages are still outstanding by an amount 5200 at the end of the month.
This would decrease the accounts payable increase the wages payable . If the adjustment is not made it the salaries payable is understated .
b)This adjusting entry is correct.
A production department's output for the most recent month consisted of 16,500 units completed and transferred to the next stage of production and 16,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 2,300 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Answer:
The equivalent units of production for the month, assuming the company uses the weighted average method is 26,400 units.
Explanation:
The equivalent units of production for the month when the company uses the weighted average method is the addition of the units completed and transferred to next stage and degree of completion of the units in ending Work in Process inventory.
This can therefore be calculated as follows:
Equivalent units of production for the month = Units completed and transferred to next stage + Units in ending Work in Process inventory
Since,
Units completed and transferred to next stage = 16,500 units
Units in ending Work in Process inventory = 16,500 * 60% complete = 9,900 units
Therefore, we have:
Equivalent units of production for the month = 16,500 + 9,900 = 26,400 units
Therefore, the equivalent units of production for the month, assuming the company uses the weighted average method is 26,400 units.
On April 1, the price of gas at Bob’s Corner Station was $3.40 per gallon. On May 1, the price was $3.90 per gallon. On June 1, it was back down to $3.40 per gallon.
Between April 1 and May 1, Bob's price increased by____________ or __________
Between May 1 and June 1, Bob's price decreased by ___________ or ___________
Suppose that at a gas station across the street, prices are always 20% higher than Bob’s. In absolute dollar terms, the difference between Bob’s prices and the prices across the street is___________ when gas costs $3.90 than when gas costs $3.40.
Some economists blame high commodity prices (including the price of gas) on interest rates being too low.
Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of _________ percentage points means that the Fed raised its target by approximately __________
Answer:
1. Bob's Corner Station:
Prices of Gas per gallon:
Between April 1 and May 1, Bob's price increased by___$0.50_________ or ____14.7%______
Between May 1 and June 1, Bob's price decreased by ___$0.50________ or ____12.82%_______.
2. In absolute dollar terms, the difference between Bob’s prices and the prices across the street is___$0.02________ when gas costs $3.90 than when gas costs $3.40.
3. Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of ___25______ percentage points means that the Fed raised its target by approximately ____25%______
Explanation:
a) Computation of Price Increases:
i) Gas at Bob's
Between April 1 and May 1, price increased by $0.50 ($3.90 - $3.40)
This is an increase of 14.7% ($0.50/$3.40 x 100).
Between May 1 and June 1, price decreased by $0.50 ($3,90 - $3.40)
This is a decrease of 12.82% ($0.50/$3.90 x 100)
ii) When gas costs $3.40 at Bob's, the price at the other gas station will be $4.08 ($3.40 x 1.2), a difference of $0.68 ($4.08 - $3.40).
iii) When gas costs $3.90 at Bob's, the price at the other gas station will be $4.68 ($3.90 x 1.2), a difference of $0.78 ($4.68 - $3.90).
iv) So in absolute terms, the dollar difference is $0.02 ($0.78 - $0.68) when gas costs $3.90 than when gas costs $3.40.
v) Percentage and percentage points describe the relationship between two sets of data. Percent refers to the rate of change, whereas percentage point measures the actual amount of change.
vi) The percent change in our case is calculated as follows:
Change in Rate divided by Former Rate = (2.5 - 2)/ 2 = 0.25 = 25%.
The percentage point of 25% = 25.