Answer:
None of these
Explanation:
In simple words, Employee handbook refers to the elaborate affirmation of the employees ' private initiatives. It can be seen as part of an agreement for array of high-will job opportunities.
Such a document can be seen as a valuable tool for every employer as well as employee communications. In a prescribed document it provides advice and direction regarding the history, mission , values, policies , procedures and productivity of the company.
Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Determine the cost per case for each of the four flavors. Round your answers to two decimal places.
Answer and Explanation:
The cost per case for each of the four flavors are shown below:
Particulars Orange Cola Lemon Lime Root Beer
Total Cost Transferred
to finished goods (a) $19,125 $391,800 $324,000 $36,000
No. of Cases (b) 2,500 60,000 50,000 4,000
Cost Per Case
(a ÷ b) $7.65 $6.53 $6.48 $9
By dividing the total cost from the number of cases we can get the cost per case for each of the four flavors
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 How much overhead cost would be assigned to Product K91B using the activity-based costing system
Answer:
Product K91B= $10,743.82
Explanation:
Giving the following information:
Activity Cost Pool Activity Rate
Setting up batches $ 59.71 per batch
Processing customer orders $ 73.05 per customer order
Assembling products $ 4.40 per assembly hour
Product K91B
Number of batches 92
Number of customer orders 42
Number of assembly hours 496
We were given the allocation rates, all we need to do is allocate based on actual allocation base:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product K91B= 59.71*92 + 73.05*42 + 4.4*496
Product K91B= $10,743.82
If the economy booms, RTF, Inc., stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 72 percent while the probability of a recession is 28 percent. What is the variance of the returns on RTF, Inc., stock
Answer:
0.000988
Explanation:
For calculation of the variance of the returns on RTF, Inc., stock first we need to find out the expected rate of return which is shown below:-
Expected rate of return = (Boom percentage × Expected return) + (Recession percentage × Expected return)
= (0.72 × 0.11) + (0.28 × 0.04)
= 9.04%
The Variance of the returns = Boom percentage × (Expected return - Expected rate of return)^2 + Probability recession × (Expected return - Expected rate of return)^2
= 72% × (0.11 - 0.0904)^2 + 28% × (0.04 - 0.0904)^2
= 0.000988
Pizza is a normal good if the demand:__________
a. for pizza rises when income rises.
b. for pizza rises when the price of pizza falls.
c. curve for pizza slopes upward.
d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.
Answer:
a. for pizza rises when income rises.
Explanation:
A normal good is a good that people purchase more when their income increases and that have a lower demand when their income decreases, for example, clothing. According to this, the answer is that Pizza is a normal good if the demand for pizza rises when income rises.
The other options are not right because a normal good is determined by the way in which the demand of a product behaves when the income increases or decreases.
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information OBJECT for last year:Raw materials purchases Direct labor Depreciation on factory equipment Depreciation on building Depreciation on headquarters building Factory insurance Property taxes: Factory Headquarters Utilities for factory Utilities for sales office Administrative salaries Indirect labor salaries Sales office salaries Beginning balance, raw materials Beginning balance, work in process Beginning balance, finished goods Ending balance, raw materials Ending balance, work in process Ending balance, finished goods $250,000 140,000 45,000 30,000 50,000 15,000 20,000 18,000 34,000 1,800 150,000 156,000 90,000 124,000 124,000 84,000 102,000 130,000 82,000Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
1. Calculate the direct materials used in production for last year.
2. Calculate total prime cost.
3. Calculate total conversion cost.
4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
5. Prepare a cost of goods sold statement for last year.6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.
Answer:
Brody Company
1. Direct Materials Used in Production:
Beginning balance, raw materials $124,000
Raw materials purchase 250,000
Raw materials for production $374,000
less raw materials, ending balance 102,000
Cost of Direct materials used $272,000
2. Total Prime Cost:
Cost of Direct materials used $272,000
Direct labor 140,000
Total Prime Cost $412,000
3. Total Conversion Cost:
Direct labor $140,000
Factor overheads:
Depreciation on factory equipment 45,000
Depreciation on building 30,000
Factory insurance 15,000
Property Taxes $20,000
Utilities for factory 34,000
Indirect labor salaries 156,000
Total Conversion Cost = $440,000
4. Cost of Goods Manufactured Statement:
Prime Cost $412,000
Conversion cost $440,000
Beginning Work in Process 124,000
less ending work in process (130,000)
Cost of goods manufactured $846,000
Unit Product Cost = $846,000/100,000 = $8.46
5. Cost of Goods Sold Statement:
Cost of goods manufactured $846,000
Beginning finished goods 84,000
less ending finished goods (82,000)
Cost of goods sold $848,000
6. Income Statement %
Sales Revenue $1,200,000 100
Cost of goods sold 848,000 71
Gross Profit $352,000 29
Operating Expenses:
Depreciation on building $50,000 4
Property Taxes 18,000 1.5
Sales Office Utilities 1,800 0.15
Administrative salaries 150,000 12.5
Sales office salaries 90,000 7.5
Sales Commission 60,000 5
Total Operating Expenses $369,800 31
Net Loss ($17,800) 14.83
Explanation:
Raw materials purchases $250,000
Direct labor 140,000
Depreciation on factory equipment 45,000
Depreciation on building 30,000
Depreciation on headquarters building 50,000
Factory insurance 15,000
Property taxes:
Factory 20,000 and Headquarters 18,000
Utilities for factory 34,000
Utilities for sales office 1,800
Administrative salaries 150,000
Indirect labor salaries 156,000
Sales office salaries 90,000
Beginning balance, raw materials 124,000
Beginning balance, work in process 124,000
Beginning balance, finished goods 84,000
Ending balance, raw materials 102,000
Ending balance, work in process 130,000
Ending balance, finished goods 82,000
b) Sales Commission = $60,000 (5% of $1,200,000)
c) Prime cost is the cost of direct raw materials and direct labor. Conversion cost includes the cost of direct labor and factory overheads.
1.The direct materials used in production for last year is $2,72,000.
2. The Total Prime Cost is $412,000.
3. The Total Conversion Cost is $440,000.
4. The Cost of Goods Manufactured Statement is $8.46.
5. The Net Loss of ($17,800) interest rate 14.83.
"Brody Company"Answer 1:
The direct materials used in production for last year is :
Amount
Beginning balance, raw materials $124,000
Add: Raw materials purchase $250,000
Add: Raw materials for production $374,000
Add: raw materials, ending balance ($102,000)
Cost of Direct materials $272,000
Answer 2:
The Total Prime Cost is :
Total Prime Cost= Cost of Direct materials+ Direct labor
Total Prime Cost= $272,000+ 140,000
Total Prime Cost =$412,000
The Total Prime Cost is $412,000.
Answer 3:
The Total Conversion Cost is :
Direct labor $140,000
Factor overheads:
Depreciation on factory equipment 45,000
Depreciation on building 30,000
Factory insurance 15,000
Property Taxes $20,000
Utilities for factory 34,000
Indirect labor salaries 156,000
Total Conversion Cost = Direct labor+ Factor overheads:
Total Conversion Cost = $140,000 + 3,00,000
Total Conversion Cost = $440,000
Answer 4.
The Cost of Goods Manufactured Statement is :
Prime Cost $412,000
Conversion cost $440,000
Beginning Work in Process 124,000
less: ending work in process (130,000)
Cost of goods manufactured $846,000
Unit Product Cost = $846,000/100,000
Unit Product Cost = $8.46
The Cost of Goods Manufactured Statement is $8.46.
Answer 5.
The Cost of Goods Sold Statement is :
Cost of goods manufactured $846,000
Beginning finished goods 84,000
less: ending finished goods (82,000)
Cost of goods sold $848,000
Answer 6:
Income Statement Amount %
Sales Revenue $1,200,000 100
Cost of goods sold 848,000 71
Gross Profit $352,000 29
Operating Expenses:
Depreciation on building $50,000 4
Property Taxes 18,000 1.5
Sales Office Utilities 1,800 0.15
Administrative salaries 150,000 12.5
Sales office salaries 90,000 7.5
Sales Commission 60,000 5
Total Operating Expenses $369,800 31
Net Loss ($17,800) 14.83
Working Notes:
Sales Commission = $60,000 (5% of $1,200,000)
Learn more about Sales :
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There are four factors contributing to successful VENTURE: Opportunity, Resource, Entrepreneur and Organizations (OREO). Which one do you think is more important than other (1
Answer:
Four Factors for Successful Venture
The most important among them is Entrepreneur.
Explanation:
An Entrepreneur is the person or entity which galvanizes the other factors. He or she captures the opportunity with the resources he can mobilize within an organizational setting that he arranges. So, success depends on him or her and not the others.
Opportunity cannot seize itself, though it is important for success. Without opportunity to deploy resources, the best entrepreneur will be engaging in an exercise in futility. One cannot capture opportunities without deploying some resources, human, financial, and knowledge. To make a success of the whole venture, there must be a kind of organization. It is organization that organizes resources to seize opportunities. But, organization cannot operate on itself. It must be led by somebody, who is called the Entrepreneur. He or she is the mover and shaker of these factors and therefore, the most important.
Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week. The store sells several different brands of cereal. Which of the following statements is most likely true about Laura’s consumer behavior?a. Laura is brand loyal to the grocery store, but buys the same cereal store out of inertia.b. Laura’s commitment to the grocery store is high, and her commitment to the cereal brand is low.c. Laura’s is habituated to the grocery store, and her commitment to the cereal brand is low.d. Laura is a brand switcher and is susceptible to random influences in her choice of cereal.e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Answer: e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.
Explanation:
From the question, we are informed that Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week even though the store sells several different brands of cereal.
The most likely reason for this is that Laura loves that particular brand of cereal she buys maybe due to its packaging, taste, quality etc. So, in this case she is brand loyal to that particular brand of cereal as she won't like to buy or consume any other brand apart from that but she visits the same store out of inertia as its the only store across the street from her apartment building
If there were other stores, she could have gone into them but will still purchase the same brand of cereal.
The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 01 Purchase 7 $15.00 May 10 Sale 5 May 17 Purchase 10 $16.00 May 20 Sale 8 May 23 Sale 3 May 30 Purchase 12 $24.00 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.
Answer:
$128
Explanation:
The FIFO inventory system means first in , first out. It means that it is the first purchased inventory that is the first to be sold.
Under the perpetual system, the cost of goods sold Under the FIFO system would be taken from the most recent inventory purchase prior to the sale.
The most recent inventory purchase prior to the sale occurred on the 17th. The price at which the inventory was purchased on the 17th would be used to calculate the cost of goods sold
So the cost of goods sold = $16.00 × 8 = $128
I hope my answer helps you
Prepare summary journal entries to record the following transactions for a company in its first month of operations.
1. Raw materials purchased on account, $86,000.
2. Direct materials used in production, $38,500. Indirect materials used in production, $23,000.
3. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $7,375.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $62,600.
7. Sold jobs on account for $90,000 g(2). The jobs had a cost of $62,600 g(1).
Answer:
1.
Raw Materials $86,000 (debit)
Accounts Payable $86,000 (credit)
2.
Work In Process : Direct Materials $38,500 (debit)
Work In Process : Indirect Materials $23,000 (debit)
Raw Materials $61,500 (credit)
3.
Work In Process : Direct Labor $38,000 (debit)
Work In Process : Indirect Labor $12,000 (debit)
Cash $50,000 (credit)
4.
Overheads $7,375 (debit)
Cash $7,375 (credit)
5.
Work In Process $47,500 (debit)
Overheads $47,500 (credit)
6.
Finished Goods $62,600 (debit)
Work In Process $62,600 (credit)
7.
Accounts Receivable $90,000 (debit)
Cost of Sales $62,600 (debit)
Sales Revenue $90,000 (credit)
Finished Goods $62,600 (credit)
Explanation:
The costs of manufacture are accumulated in the Work In Process Account as was shown above.
Note that only Applied Overheads not Overheads incurred are included in Work In Process Account.
The Costs of Goods Transferred is Eliminated from The Work In Process Account and Included in the Finished Goods Account.
Journal 7 Records Both the Revenue and Cost of Goods Sold on Account.
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.10 ounces $15.00 per ounce $31.50
Direct labor 0.80 hours $15.00 per hour 12.00
Variable manufacturing overhead 0.80 hours $3.50 per hour 2.80
Total standard cost per unit $46.30
During November, the following activity was recorded, relative to production of Fludex:
a. Materials purchased, 9,420 ounces at a cost of $49,926.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 61.50 hours at an average rate of $12.30 per hour.
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,658.
e. During November, 4,600 good units of Fludex were produced.
The company's management is anxious to determine the efficiency of the Fludex production activities.
Required:
1. For direct materials used in the production of Fludex, compute the price and usage variances.
2. For direct labor employed in the production of Fludex, compute the price and usage variances.
Answer:
1)
direct materials price variance = actual quantity x (actual price - standard price)
direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable
direct materials usage variance = standard price x (actual usage - standard usage)
direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable
2)
direct labor price variance = actual hours x (actual rate - standard rate)
direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable
direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)
direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable
The company can choose to buy a back-up machine for Step C for an additional $20,000. The back up would also have a reliability of 0.915, just like the one that is presently used. If they decide to get this back-up machine, what will the new reliability of the system be? Assume that once a machine malfunctions, the process continues to produce product, acceptable and defective. Use THREE decimal places in you calculations.
The complete question is:
A certain company produces 10,000 tables per year in a three-step process. The three steps in the process employ machines with the reliabilities listed here:
Step A - 0.987 Step B – 0.979 Step C – 0.915
Answer:
New reliability= 0.9593 ~ 0.959
Explanation:
Reliability is used in manufacturing process to ensure that a process produces the same level of output consistently. A process is reliable if it achieves the same results everytime.
Reliability can be applied to individuals, data, processes, and products.
In this instance we are to calculate the new reliability of the backup system.
Reliability of step C is 0.915
New reliability= 1 - (1- 0.915)^2
New reliability= 0.992775
Multiply this value by the reliability in step A and B to get system reliability
System reliability= 0.992775 * 0.987 * 0.979
System reliability= 0.9593
A project analysis using the net present value method indicates that the present value of cash inflows is $120,000, and the total amount of investment required at the start of the project is $100,000. Which of the following statements best describes the results of the project analysis?
a. The project should be rejected because the actual rate of return expected from the project is less than the minimum desired rate of return.
b. The project should be accepted because the actual rate of return expected from the project is more than the minimum desired rate of return.
c. The project should be rejected because the actual rate of return expected from the project is more than the minimum desired rate of return.
d. The project should be accepted because the actual rate of return expected from the project is less than the minimum desired rate of return.
Answer:
The answer is B.
Explanation:
Cost of investment was $100,000
Present value of all the cash inflows = $120,000
Profit = $20,000 ($120,000 - $100,000)
Since the present value of all the cash inflows is greater than the initial cost of investment, the capital project should be accepted because the firm will be better off and shareholders' wealth will be increased.
The expected rate of return for the project is $20,000/$100,000
0.2 or 20%
Proposed by Richard Hackman and Greg Oldham, ________ states that work has five core dimensions that impact employee satisfaction and productivity: skill variety, task identity, task significance, autonomy, and feedback.
Answer:
job characteristics model
Explanation:
The job characteristics model refers to the model in which it includes 5 characteristics or attributes i.e variety of skills, the identity of task, significance or importance of task, autonomy and the feedback
Based on these factors the performance of employees could be analyzed via department wise, project wise, etc so that it became easy for the company to take the decision which employee should be beneficial or which is not
Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock. The land is subject to a $45,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?
Answer: $15,000
Explanation:
From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.
The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.
= $45,000 - $30,000
= $15,000
You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,000 in two years. If you have an investment opportunity that guarantees 7% interest, how much must you invest to have the necessary funds to purchase the elliptical machines
Answer:
$19,215.65
Explanation:
To the determine the amount to be invested, we have to find the present value of $22,000 at 7%
P= FV ( 1 + r) ^-n
FV = Future value = $22,000
P = Present value
R = interest rate = 7%
N = number of years = 2
$22,000(1.07)^-2 = $19,215.65
I hope my answer helps you
On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017.
Answer:
The journal entries to record the sale on June 1 are:
June 1, 2017, 100 units of washer/dryer to Laplante Rentals
Dr Cash 69,000
Cr Sales revenue 69,000
Dr Cost of goods sold 40,000
Cr Inventory 40,000
If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: An emotional one for the project team. An emotional one for the clients. One that is external and intellectual. One that is internal and intellectual.
Answer:
Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: One that is external and intellectual.
Explanation:
External issues do not affect an entity obviously. The clients shifting new people into projects and moving their key people to new challenges know why they must be doing so. It may be to encourage organizational learning. It may be because the key people have been promoted and need to move to higher positions.
Most importantly, it is the clients as entities that we should be concerned and deal with. Clients like other organizational entities have systems, processes, and policies that they work with to produce results. Their internal management should remain internal and not be externalized by overtly and overzealous outsiders.
A company rents a small building with 10,000 square feet of space for $100,000 per year. The rent is allocated to the company's three departments on the basis of the value of the space occupied by each. Department 1 occupies 1,500 square feet of ground-floor space, Department 2 occupies 3,500 square feet of ground-floor space, and Department 3 occupies 5,000 square feet of second-floor space. If rent for comparable floor space in the neighborhood averages $15.00 per sq. ft. for ground-floor space and $10 per sq. ft. for second-floor space, what annual rent expense should be charged to each department
Answer:
department 1: $18,000
department 2: $42,000
department 3: $40,000
Explanation:
total annual rent expense $100,000
total rented space 10,000 sq ft
first we must calculate the rental cost based on comparable floor space:
(1,500 x $15) + (3,500 x $15) + (5,000 x $10) = $22,500 + $52,500 + $50,000 = $125,000
now we allocate costs on the following proportion: $100,000 / $125,000 = 0.8
department comparable rent proportional cost total
1 $22,500 0.8 $18,000
2 $52,500 0.8 $42,000
3 $50,000 0.8 $40,000
total $125,000 $100,000
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2010, its first year of operations.
1. Use the following information about the company's adjustments to complete a 10- column work sheet for Dylan Delivery Company.
a. Unrecorded depreciation on the trucks at the end of the year is $40,000.
b. An additional $1,000 of salaries must be accrued at year-end.
c. The cost of unused office supplies still available at year-end is $2,000.
2. Prepare the year-end closing entries for Dylan Delivery Company, and determine the capital amount to be reported on its year-end balance sheet.
Account Title Debit Credit
Cash $16,000
Accounts receivable 34,000
Office supplies 5,000
Trucks 350,000
Accumulated depreciation—Trucks $80,000
Land 160,000
Accounts payable 124,000
Salaries payable 5,000
S. Dylan Capital 307,000
S. Dylan withdrawals 34,000
Delivery fees earned 263,000
Depreciation expense—Truck 40,000
Salaries expense 110,000
Office supplies expense 15,000
Repairs expense—trucks 15,000
Totals $779,000 $779,000
Answer:
Dylan Delivery Company
1. 10-Column Worksheet (see attachment)
2. Closing Journal Entries at December 31, 2010:
Date Description Debit Credit
Depreciation expense - Truck 80,000
Salaries Expense 111,000
Office supplies expense 18,000
Repairs expense- trucks 15,000
Income Summary 224,000
To close expenses to the Income Summary.
Date Description Debit Credit
Income Summary 263,000
Delivery fees 263,000
To close revenue to the Income Summary.
Date Description Debit Credit
Net Income 39,000
Retained Earnings 39,000
To close the net income to retained earnings.
2b) Capital to be reported on balance sheet as at December 31, 2010:
S. Dylan Capital $307,000
Retained Earnings 39,000
S. Dylan withdrawals (34,000)
Net Capital $312,000
Explanation:
a) A 10-column worksheet is a tool used by accountants to close the temporary accounts, after necessary adjustments, and then extract a balance sheet. It comprises two columns (debit and credit) for each of the following: Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, and Balance Sheet.
b) A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account to a permanent account. The four basic steps in the closing process are: Closing the revenue accounts—transferring the credit balances in the revenue accounts to a clearing account called Income Summary. Closing the expense accounts—transferring the debit balances in the expense accounts to a clearing account called Income Summary. Extracting a balance between the revenue accounts and the expense accounts, called the net income or loss. Closing the net income or loss to the Retained Earnings.
DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Inc., for exist240 each, terms 1/10, n/60. August 7 Pays exist440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for exist260 each to customers on account. The total cost of the 58 game devices sold is exist14, 145.37. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
Answer:
August 6
DR Inventory $18,720
CR Accounts Payable $18,720
(To record purchase of goods for sale)
= 76 devices * $240
= $18,720
August 7
DR Inventory $440
CR Cash $440
(To record shipping costs of Inventory)
August 10
DR Accounts Payable $1,920
CR Inventory $1,920
(To record Purchase returns)
August 14
DR Accounts Payable $16,800
CR Inventory $168
CR Cash $16,632
(To record payment of purchases)
Working
Accounts Payable = Purchases - Returns
= 18,720 - 1,920
= $16,800
Inventory
Goods were purchased terms 1/10 meaning a 1% discount is goods paid for in 10 days.
= 1% * 16,800
= $168
August 23
DR Accounts Receivable $15,080
CR Sales Revenue $15,080
(To record sales of goods on account)
Sales Revenue = 58 devices * 260
= $15,080
August 23
DR Cost of Goods Sold $14,145.37
CR Inventory $14,145.37
(To record cost of Goods sold)
During Bruce Company’s first year of operations, the company purchased $4,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,825 of unused supplies were available for future use. How will the related adjusting entry affect the company’s financial statements?
Answer:
Supplies Used = $2475
Explanation:
Bruce Company
Supplies Purchases $4,300
Supplies on hand $1,825
Supplies Used = $ 4300- $ 1825 = $2475
The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.
The relating adjusting entry will be
Supplies Expense $ 2475 Debit
Supplies Account $ 2475 Credit
This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.
For a Marketing course: What skills from this course would you use to create a three-paragraph promotional tool that explains the value of a chosen product and a sales pitch aimed at individual buyers
Answer:
After taking a Marketing Course, I should be armed with the following promotional skills:
Innovation Skills: It is expected that a marketing professional should be able to think differently, energise creativity in the business and craft maverick ways of gaining the attention of the market and transform that attention to patronage.Market Development Skills: One is also expected to gain the ability to identify and articulate latent customer needs (even before the customers become aware of them), spot socioeconomic trends as well as technological developments which create opportunities for the company as well as for the customer.Pricing Technology: Pricing is an art and a science. It involves accounting, economics and psychology. Marketing deals with the economics and psychology bit of it. Armed with this information, one is able to get into the mind of the individual buyers and them to firm up their buying decision.Cheers!
To create a promotional tool that explains the value of a product and a sales pitch aimed at buyers, its characteristics and benefits could be cited, such as innovation, price and added benefits.
For a company to be well positioned in the market, it is necessary to create value for its consumers, which is identified from:
How much the customer is willing to pay for your products and services.Marketing skills therefore must identify the strengths of the company and opportunities from the external environment, to satisfy consumer needs through:
IdentificationQualityAvailabilityCompatible priceBenefitsRelationshipTherefore, to create value, a company must reduce production costs or generate differentiation in order to be able to charge a premium price in relation to competitors.
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reonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90 % of the fair value of the assets leased. The annual lease payment is $41,000 at the beginning of each year, and Breonna's incremental borrowing rate is 8%, which is the same as the lessor's implicit rate. The agreement is properly classified as an operating lease. Assume the equipment is carried at a cost of $280,000 and the Straight-Line method for depreciation is used. In preparing the necessary journal entries for Falls Company (the lessor) for 2020, the "Leased Equipment" account should include a debit for depreciation expense of ___________. (Enter the answer with NO commas or dollar signs!)
Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million
Answer and Explanation:
a. The estimation of the contribution margin for each segment is shown below:
(in millions)
Particulars Investor Advisor Services Services
Income from
operations $1,681 $1,660
Add:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Now the estimation of decline in operating income is
(in millions)
Particulars Combined services Institutional Services
Revenues $9,368 $4,771
Less:
Variable cost $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed cost -$325 -$171
Net income $3,341 $1,681
So according to the above calculations, the net operating income is declined by
= $3,341 - $1,681
= $1,660 million
The variable cost is come from
= Service revenues - income from operations - depreciation expense
Rihanna Company is considering purchasing new equipment for $578,500. It is expected that the equipment will produce net annual cash flows of $65,000 over its 10-year useful life. Annual depreciation will be $57,850. Compute the cash payback period.
Answer:
The answer is 8.9 years
Explanation:
Solution
Given that:
purchase of new equipment = $578,500
Net annual cash flows =$65,000
The useful life = 10 years
Annual depreciation = $57.850
Now, we have to compute the cash payback period which given below:
The payback period (cash) = cost of capital investment/net annual cash flows
=$578.500/$65,000
=8.9 years
The cash payback period is 8.9 years
In 2007, Joe Gebbia and Brian Chesky realized they could not afford the rent on their pricey San Francisco apartment, so they decided to put an air mattress in their living room and offer people an alternative to an expensive hotel room. This is the story of how Airbnb got started. In other words, Airbnb began when Gebbia and Chesky ________; the company grew because it ________.
Answer: c. Identified a problem or frustration; identified an opportunity or need
Explanation:
Airbnb began when the founders Joe Gebbia and Brian Chesky realized that they could not afford the rent on their San Francisco apartment. This was a problem for them and they needed to solve it. Another problem they realized was that people were having to pay for expensive hotel rooms. The common denominator here being that both places were pricey.
They then identified the opportunity or need that people needed to afford their rent and visitors needed to afford places to stay temporarily and then acted on this opportunity by putting an air mattress in their living room and offering people an alternative to an expensive hotel room.
Vargas Company uses the perpetual inventory method. Vargas purchased 800 units of inventory that cost $9.00 each. At a later date the company purchased an additional 1,200 units of inventory that cost $10.00 each. Vargas sold 900 units of inventory for $13.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:
Answer:
$8200
Explanation:
FIFO means first in first out. It means that it is the first purchased inventory that is the first to be sold.
The cost of the 900 units sold, would be:
800 x 9 = $7200
100 × $10 = $1000
Total = $8200
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Titanic Roofing Company has estimated the following amounts for its next fiscal year: Total fixed costs $ 833 comma 000 Sale price per unit 60 Variable cost per unit 30 If the company spends an additional $ 30 comma 000 on advertising, sales volume would increase by 2 comma 500 units. Before the change, the company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of Titanic? A. Operating income will decrease by $ 45 comma 000. B. Operating income will increase by $ 45 comma 000. C. Operating income will increase by $ 75 comma 000. D. Operating income will increase by $ 150 comma 000.
Answer: B. Operating income will increase by $ 45,000
Explanation:
Total fixed cost = $833,000
Sale price per unit = 60
Variable cost per unit = 30
Advertising = $30,000
Increase in sales volume = 2500
The contribution margin is the difference between the sales price per unit and the variable cost per unit.
= 60 - 30
= 30
Therefore, Hence the increase in the contribution margin will be:
= ($30 × 2500)=$75000
We then subtract the additional cost of $30,000 from $75,000. This will be:
= $75,000 - $30,000
= $45,000
Therefore, operating income will increase by $45,000
Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents of $1.05 a share. Today, you sold all of your shares for $48.30 a share. What is your total percentage return on this investment
Answer:
Percentage return on investment= 8.62 %
Explanation:
Return on investment is the amount that an investor gains after investing in a particular business venture. Percentage return on investment is calculated as gain from a business venture divided by the initial investment.
Percentage return on investment= (Gain ÷ Initial investment) * 100
Gain on share price= 48.30 - 46.40 = $1.90
Gain from dividend= 2 * 1.05= $2.10
Total gain = 1.90 + 2.10 = $4
Therefore
Percentage return on investment= (4 ÷ 46.40) * 100
Percentage return on investment= 8.62 %
So the gain on initial investment of the 400 shares is 8.62%
Answer:
The total percentage return on this investment is 8.62%
Explanation:
Given the initial investment is 400 shares * 46.40 = $18,560 and the purchase of those shares were "eight month ago"
The company pays quarterly dividends of $1/05 per share. So, that in between 8 month, these are 2 Quarters
Thus Dividend amount= 400 * 1.05 * 2 Quarters= $840
Capital gains= Sales value - Purchase price
= 400 * 48.30 - 18,560
= 19,320 - 18,560
= $760
Therefore total percentage return on this investment will be derived by (Dividend + Capital) / Initial Investment * 100
= (840 + 760)/18560 * 100
= 8.62%
Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in the process at the beginning of production.
Answer:
37,000 units
Explanation:
The computation of the total equivalent units for direct material is shown below:
= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process, July 1
= 37,500 units + 3,500 units - 4,000 units
= 41,000 units - 4,000 units
= 37,000 units
We simply applied the above formula so that the total equivalent units for direct materials could come