Answer and Explanation:
The preparation is presented below
1.
Particulars Dept. M Dept N Dept O Dept P Dept T Total
Sales $35,500 0 $33,500 0 0 $102,000
Expenses
Avoidable $4,400 0 $ 10,700 0 0 $23,100
Unavoidable $19,000 $7,200 $2,700 $16,000 $4,100 $49,000
Total
expenses $23,400 $7,200 $13,400 ($16,000) ($4,100) $72,100
Net income
(loss) $12,100 ($7,200) $22,100 ($16,000) ($4,100) $29,900
As we can see that department N, P and T are suffering from losses so these are closed
2. Department N and T had fewer sales dollars than avoidable costs, and certain units will be dropped. Yet there will always be unavoidable costs to incur.
Particulars Dept. M Dept N Dept O Dept P Dept T Total
Sales $35,500 0 $33,500 $33,000 0 $102,000
Expenses
Avoidable $4,400 0 $ 10,700 $8,000 0 $23,100
Unavoidable $19,000 $7,200 $2,700 $16,000 $4,100 $49,000
Total
expenses $23,400 $7,200 $13,400 $24,000 $4,100 $72,100
Net income
(loss) $12,100 ($7,200) $22,100 $9,000 ($4,100) $29,900
The relationship between financial leverage and profitability Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement values for each company follow .
Item Pelican Paper, Inc. Timberland Forest, Inc.
Total assets $10,900,000 $10,900,000
Total equity (all common) 9900000 5400000
Total debt 1000000 5500000
Annual interest 100000 550000
Total sales 23000000 23000000
EBIT 5750000 5750000
Earnings available for
common stockholders 3394800 3174000
Use them in a ratio analysis that compares the firms' financial leverage and profitability.
The debt ratio for Pelican is %.
(Round to one decimal place.)
The debt ratio for Timberland is %.
(Round to one decimal place.)
The times interest earned ratio for Pelican is.
(Round to one decimal place.)
The times interest earned ratio for Timberland is.
(Round to one decimal place.)
Discuss their financial risk and ability to cover the costs in relation to each other. (Select all the answers that apply.)
A. Pelican has a much higher degree of financial leverage than does Timberland. As a result, Pelican's earnings will be morevolatile, causing the common stock owners to face greater risk.
B. Pelican's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Pelican. Timberland can face a very large reduction in net income and still be able to cover its interest expense.
C. Timberland's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Timberland. Pelican can face a very large reduction in net income and still be able to cover its interest expense.
D. Timberland has a much higher degree of financial leverage than does Pelican. As a result, Timberland's earnings will be morevolatile, causing the common stock owners to face greater risk.
Answer:
Pelican Paper, Inc., and Timberland Forest, Inc.
Financial leverage and profitability ratios:
a) Debt Ratio = Total liabilities divided by Total assets x 100
Pelican = $1,000,000/$10,900,000 x 100
= 9.2%
Timberland = $5,500,000/$10,900,000 x 100
= 50%
Times Interest Earned Ratio = EBIT/Interest Expense
Pelican = $5,750,000/$100,000
= 57.5 times
Timberland = $5,750,000/$550,000
= 10.4 times
A discussion of their financial risk and ability to cover the costs in relation to each other:
C. Timberland's earnings will be more volatile. This additional risk is supported by the significantly lower times interest earned ratio of Timberland. Pelican can face a very large reduction in net income and still be able to cover its interest expense.
D. Timberland has a much higher degree of financial leverage than does Pelican. As a result, Timberland's earnings will be morevolatile, causing the common stock owners to face greater risk.
Explanation:
a) Data
Financial Statement Values:
Item Pelican Paper, Inc. Timberland Forest, Inc.
Total assets $10,900,000 $10,900,000
Total equity (all common) 9,900.000 5,400,000
Total debt 1,000,000 5,500,000
Annual interest 100,000 550,000
Total sales 23,000,000 23,000,000
EBIT 5,750,000 5,750,000
Earnings available for
common stockholders 3,394,800 3,174,000
b) Creditors provide half of the finances and effectively own 50% of Timberland. This contrasts with the debt ratio of Pelican, where creditors can lay claim to only 9.2% of the assets of the firm. Furthermore, Pelican can settle its debts with current earnings 57.5 times, compared to Timberland's interest coverage of 10.4 times.
The total payroll of trolley company for the month of october was 960000 of which 180000 represented amounts paid to certain employees in excess of 137000 maximum subject ot social security tax $180,000 of federal income taxes and $18,000 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee's wages to $118,500 and 1.45% in excess of $118,500. What amount should Trolley record as payroll tax expense?
Answer:
$68,760
Explanation:
The computation of the payroll expense is shown below:
FICA taxes ($960,000 - $180,000) × (7.65% - 1.45%) $48,360
Medicare ($960,000 × 1.45%) $13,920
State unemployment tax {($960,000 - $600,000) × 1%} $3,600
Federal unemployment tax {($960,000 - $600,000) × 0.80%} $2,880
Total $68,760
The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by social engineering attacks that led to a loss of sensitive data. The security administrator instructs the marketing staff not to supply the USB pens due to which of the following?
A. The cost associated with distributing a large volume of the USB pens
B. The security costs associated with securing the USB drives over time
C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Answer: C. The security risks associated with combining USB drives and cell phones on a network
D. The risks associated with the large capacity of USB drives and their concealable nature
Explanation:
Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.
Another reason is due to the risks that are associated with the large capacity of USB drives and their concealable nature.
Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):
Answer:
Opportunity costs
Explanation:
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as opportunity costs.
Opportunity cost has to do with losing other alternatives by chosing to go with one alternative. Hence it is also called foregone alternative. It has to do with making a decision or choice to give up something in order to get something else which may be of more value.
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget
Sales (14,000 units) $3,024,000
Cost of goods sold
Direct materials $336,000
Direct labor 588,000
Production supplies 364,000
Plant manager salary 136,000 1,424,000
Gross profit 1,600,000
Selling expenses
Sales commissions 98,000
Packaging 224,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 186,000
Depreciation—office equip. 156,000
Insurance 126,000
Office rent 136,000 604,000
Income from operations $574,000
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
What are the most challenging concepts for you to understand? Have you found any supplemental resources or websites that have helped you to better comprehend the material? T- Accounts
Answer:
finding every form of verbs is difficult. spanishdict is very helpful
Explanation:
www.spanishdict.com
Jack and Jill need to save $6100 toward a new car. How long will it take them if they save $200 a month earning interest at 4.7% per year
Answer:
2 years 5 months.
Explanation:
Use the Time Value of Money techniques to find n (period it takes to save for required amount)
Using a financial calculator enter the following data
Fv = $6,100
Pmt = - $ 200 × 12 = - $2,400
P/y = 1
r = 4.7 %
Pv = 0
n = 2.4569
Thus it takes 2 years 5 months to save $6100 toward a new car under the given circumstances.
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 6% per year. a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?
Answer:
$118,421
Explanation:
first we must calculate the expected value of the risky portfolio = ($70,000 x 0.5) + ($200,000 x 0.5) = $135,000
since your risk premium is 8% and the risk free rate is 6%m then you should discount the expected value by 8% + 6% = 14% to determine its current market price
= $135,000 / (1 + 14%) = $118,421
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
In terms of the global value system, when Kodak shifted manufacturing to China, what position did China then take in the system, relative to the U.S.
Answer: b. Upstream
Explanation:
The Upstream part of a company's value chain is the part closest to the suppliers and the raw materials they supply to the firm while the downstream relates to how the goods are distributed and sold after produced.
As such, the firm's manufacturing plants are closer to its Upstream value chain portion. When Kodak therefore shifted manufacturing to China, it made China more upstream than the United States as China now dealt more with Kodak suppliers and inputs than the US, who were now more downstream as the consumers.
Portfolio managers pick stocks for their clients’ portfolios based on the investment objective of the portfolio and several other factors. One key consideration is each stock’s contribution to portfolio risk and its statistical relationship with the portfolio’s other stocks. Based on your understanding of portfolio risk, identify whether each statement is true or false.
Answer:
False True True FalseExplanation:
First one is false because diversification reduces risk because it divides the risk amongst different securities. The portfolio risk will therefore be lower than the average of all stocks' standard deviations.
Second one is true because unsystematic risk is risk that will come with the type of stock or security purchased. It is usually referred to as diversifiable risk because using negatively correlated stocks can help diversify this risk.
Third one is True because the portfolio's risk when diversified is indeed likely to be smaller than the average of all stocks' standard deviation.
Fourth one is false because portfolio risk is reduced if stock that are negatively correlated are put into a portfolio because it means that when one stock is not doing so well, the other being negatively correlated, will be doing fine.
Before telling her employees she would have to layoff half of the workforce, Alissa took them all to lunch at the most expensive restaurant in town. Alissa's attempt to handle the potential conflicts generated by her news is best described as
Answer:
Strategic
Explanation:
laying off half of the Employees means relieving them of their duties as staff of the organization. By taking them to lunch at the most expensive restaurant in town, Alissa aimed at being strategic with whatever conflict that may however occur when the employees hear of her intention. Layoffs can be demoralizing and damaging to these Employees so Alissa has to try the best way she can to be strategic as she deals with them
Nippon Technology
Balance Sheet
As of December 31, 2019
(amounts in thousands)
Cash 37,000 Liabilities 24,000
Other Assets 39,000 Equity 52,000
Total Assets 76,000 Total Liabilities & Equity 76,000
Nippon Technology
Income Statement
January 1 to March 31, 2020
(amounts in thousands)
Revenue 5,800
Expenses 3,400
Net Income 2,400
Between January 1 and March 31 , 2018:
1. Other Assets increase by $300,000
2. Liabilities decrease by $200,000
3. Paid-In Capital does not change
4. Dividends paid of $100,000
What is the value for Cash on March 31, 2018?
Answer:
Nippon Technology
Value of Cash between January 1 and March 31, 2018:
= $1,737,000
Explanation:
a) Calculations:
Beginning Cash Balance $37,000
Net Income 2,400,000
Increase in other assets ($300,000)
Decrease in Liabilities ($200,000)
Dividends paid ($200,000)
Ending Cash balance $1,737,000
b) Nippon Technology's cash balance at the end of March 31, 2018 is the net effect of cash transactions that took place between January 1, 2018 and March 31, 2018. It shows what Nippon Technology received in the form of cash receipts from customers and what it spent in operational, investing, and financing activities during the period of 3 months.
Osborn Manufacturing uses a predetermined overhead rate of $20.00 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $276,000 of total manufacturing overhead for an estimated activity level of 13,800 direct labor-hours. The company actually incurred $275,000 of manufacturing overhead and 13,300 direct labor-hours during the period.
Required:
a. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overhead increase or decrease the company's gross margin? By how much?
Answer:
1. Manufacturing overhead applied = Actual hours * Predetermined overhead rate
Manufacturing overhead applied = 13300 * $20
Manufacturing overhead applied = $266,000
From the question, Osborn Manufacturing actually incurred $275,000 of manufacturing overhead. Hence, the Manufacturing overhead is under-applied because the applied manufacturing overhead is less than the actual manufacturing overhead
Hence, Manufacturing overhead under-applied = $275,000 - $266,000
= $9,000
2. Since the applied manufacturing overhead is less than the actual manufacturing overhead, the gross margin would decrease by $9,000. The journal entry will use the under-applied manufacturing overhead for record.
Epic Company earned net income of $784,000 this year. The number of common shares outstanding during the entire year was 420,000, and preferred shareholders received a $28,000 cash dividend. Compute Epic company's basic earning per share.
Answer:
The answer is $1.8/share
Explanation:
Basic Earnings Per Share (EPS)= (Net income - preferred shars) ÷ weighted number of outstanding shares
Net income - $784,000
Preferred shares - $28,000
Weighted number of outstanding shares - 420,000 shares
($784,000 - $28,000) ÷ 420,000 shares
= $756,000 ÷ 420,000 shares
= $1.8 per share.
This means that each shareholder has $1.8 per share from the net income of $784,000
During the ____________step in activity-based costing, overhead costs in each activity cost pool are assigned to products.
a. first
b. second
c. third
d. fourth
Answer:
d. fourth
Explanation:
Activity-based costing involves the following steps:
-First step: establish the activities that use resources and assign the costs to them.
-Second step: identify what causes the costs in each activity and this would be the allocation base.
-Third step: find an activity rate.
-Fourth step: assign costs to the products according to the activity usage by the product.
According to this, the answer is that during the fourth step in activity-based costing, overhead costs in each activity cost pool are assigned to products.
Great Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $80 per passenger. Great Cruiseline's variable cost of providing the dinner is $40 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $240,000 per month. The company's relevant range extends to 13,000 monthly passengers. Use this information to compute the following:
A. What is the contribution margin per passenger?
B. What is the contribution margin ratio?
C. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers.
D. Use the contribution margin ratio to project operating income if monthly sales revenue totals $515,000.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $80
Unitary variable cost= $40
Fixed costs= $240,000
First, we need to calculate the unitary contribution margin and the contribution margin ratio:
Contribution margin= 80 - 40= $40
Contribution margin ratio= contribution margin/selling price
Contribution margin ratio= 40/80= 0.5
Now, we can calculate the operating income for 10,000 units:
Total contribution margin= 40*10,000= 400,000
Fixed costs= (240,000)
Net operating income= 160,000
Finally, the operating income for $515,000:
Net operating income= (contribution margin ratio*sales) - fixed costs
Net operating income= 515,000*0.5 - 240,000
Net operating income= 17,500
Julie is a sales associate for ABC Realty. She sold a house that was listed in the MLS from XYZ REALTORS®. The list price was $340,000 and the property sold at 95% of list. The commission rate to the seller was 7% and the brokers divided the commission--55% to 45%--with Julie's broker getting 45%. Julie and her broker split the commission equally. How much did Julie make in commission on this sale?
Answer:
Julie made $5,087.25 in commission on this sale.
Explanation:
Selling price of the property = Listed price * Percentage of listed at which the property is sold = $340,000 * 95% = $323,000
Commission on sales of the property = Selling price of the property * Commission rate = $323,000 * 7% = $22,610
Amount of the commission to Julie's broker = Commission on sales of the property * Commission share percentage to Julie's broker = $22,610 * 45% = $10,174.50
Since Julie and her broker split the commission equally, we have:
Commission made by Julie from the property sale = Amount of the commission to Julie's broker / 2 = $10,174.50 / 2 = $5,087.25
Therefore, Julie made $5,087.25 in commission on this sale.
You are trying to explain to your friends the importance of using real GDP to measure economic health over time, but some of them still insist that nominal GDP is equally good. Use the data given below to show your friends the difference between real and nominal GDP.
Nominal GDP (millions of dollars)= $10,000
Price Level (GDP Deflector)= 92
Required:
What is real GDP given the nominal GDP and price level (GDP deflator)?
Answer: $10,869.57
Explanation:
The Nominal GDP is the total amount of final goods and services produced in a country within a period, usually a year. It is calculated using the current year's prices.
Real GDP adjusts the Nominal GDP for price changes by using the price level of a certain base year.
The GDP Deflator is the price level of the current year and can be useful in calculating how much the prices have risen or fallen from the prices of the base year.
The formula is;
(Nominal GDP/Real GDP)*100 = GDP Deflator
Making Real GDP the subject;
Real GDP = (Nominal GDP/GDP Deflator)*100
= (10,000/ 92) * 100
= $10,869.57
During August, Boxer Company sells $359,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $13,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,700 in parts for repairs. The entry to record the customer warranty repairs is:
Answer:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Explanation:
Preparation of the entry to record the customer warranty repairs
Based on the information given we were told that Customers had to returned the merchandise for warranty repairs in which the amount of $9,700 was used in parts for repairs this means the journal entry to record the customer warranty repairs will be:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Jason Mathews purchased 300 shares of the Hodge & Mattox Energy Fund. Each share cost $15.15. Fifteen months later, he decided to sell his shares when the share value reached $18.10. a. What is the amount of his total initial investment? b. What was the total amount Jason received when he sold his shares in the Hodge & Mattox fund? c. How much profit did he make on his investment?
Answer:
A.) $4,545 b) $5,430 c) $885
Explanation:
Given the following :
Number of shares purchased = 300
Cost per share = $15.15
Total initial investment :
Number of shares purchased * cost per share
300 * $15.15 = $4,545
B)
Total amount received when he sold his shares :
Amount at which shares was sold = $18.10 per share
Therefore,
Total amount received :
$18.10 * 300 = $5,430
C.)
Profit made on investment :
Amount received when shares was sold - total initial investment
$5,430 - $4,545
= $885
Merline Manufacturing makes its product for $60 per unit and sells it for $142 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.
MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017
Sales $1,420,000
Cost of goods sold 600,000
Gross profit 820,000
Operating expenses Sales commissions (10%) 142,000
Advertising 224,000
Store rent 25,200
Administrative salaries 46,000
Depreciation—Office equipment 56,000
Other expenses 13,200
Total expenses 506,400
Net income $313,600
Management expects December’s results to be repeated in January, February, and March of 2018 without any changes in strategy. Management, however, has an alternative plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with January) if the item's selling price is reduced to $127 per unit and advertising expenses are increased by 15% and remain at that level for all three months. The cost of its product will remain at $60 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same.
Required:
Prepare budgeted income statements for each of the months of January, February, and March that show the expected results from implementing the proposed changes. (Enter your final answers in whole dollars.)
Answer:
Merline Manufacturing
MERLINE MANUFACTURING Budgeted Income Statement For Months of January, February, and March, 2017
December January February March
Sales $1,420,000 $1,397,000 $1,536,700 $1,690,370
Cost of goods sold 600,000 660,000 726,000 798,600
Gross profit 820,000 $737,000 $810,000 $891,770
Operating expenses:
Sales commissions (10%) 142,000 139,700 153,670 169,037
Advertising 224,000 257,600 257,600 257,600
Store rent 25,200 25,200 25,200 25,200
Administrative salaries 46,000 46,000 46,000 46,000
Depreciation—
Office equipment 56,000 56,000 56,000 56,000
Other expenses 13,200 13,200 13,200 13,200
Total expenses 506,400 537,700 551,670 567,037
Net income $313,600 $199,300 $258,330 $324,733
Explanation:
a) Data:
MERLINE MANUFACTURING Income Statement For Month Ended December 31, 2017
December
Sales $1,420,000
Cost of goods sold 600,000
Gross profit 820,000
Operating expenses:
Sales commissions (10%) 142,000
Advertising 224,000
Store rent 25,200
Administrative salaries 46,000
Depreciation—Office equipment 56,000
Other expenses 13,200
Total expenses 506,400
Net income $313,600
b) Calculations:
Sales:
January = $1,420,000/$142 x 1.1 x $127 = $1,397,000
Sales unit = 11,000 (10,000 x 1.1)
February = 11,000 x 1.1 x $127 = $1,536,700
Sales unit = 12,100 (11,000 x 1.1)
March = 12,100 x 1.1 x $127 = $1,690,370
Sales unit = 13,310 12,100 x 1.1)
c) Advertising = $224,000 x 1.15 = $257,600
d) Cost of goods sold:
January = $660,000 (11,000 x $60)
February = $726,000 (12,100 x $60)
March = $798,600 (13,310 x $60)
e) Sales commission for each month is 10% of sales for the month.
f) Budgeted income statements are summaries for a period based on estimated incomes and expenses. They are useful in helping management to make projections and production decisions that will achieve desired outcomes. From these budgeted statements, management may decide to retain the December selling price and units and not increase advertising costs since the achieved net income did not improve over December's performance until March.
Take It All Away has a cost of equity of 10.81 percent, a pretax cost of debt of 5.45 percent, and a tax rate of 35 percent. The company's capital structure consists of 77 percent debt on a book value basis, but debt is 37 percent of the company's value on a market value basis. What is the company's WACC
Answer:
8.12%
Explanation:
The computation of the weighted average cost of capital is shown below:
= Cost of equity × weight of equity + pretax cost of debt × (1 - tax rate) × weight of debt
= 10.81% × 0.63 + 5.45% × (1 - 0.35) × 0.37
= 6.81% + 1.31%
= 8.12%
We simply applied the above formula by considerin the capital structure with its weight so that the correct percentage could come
Listed below are five procedures followed by Eikenberry Company.
1. Several individuals operate the cash register using the same register drawer.
2 .A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
3. Joe Cockrell writes checks and also records cash payment journal entries.
4 .One individual orders inventory, while a different individual authorizes payments.
5 .Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated.
Procedure IC Good or Weak Related Internal Control Principle
1.
2.
3.
4.
5.
Answer:
1. Several individuals operate the cash register using the same register drawer. Weak Internal Control. Establishment of Responsibility Internal control violated.
Having many individuals have access to the cash register can lead to theft. Establishment of Responsibility is an internal control that calls for the minimal amount of people being able to do one task. This way issues can be traced faster.
2 .A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. Good Internal Control. Independent Internal Verification control followed.
Independent Verification occurs when a person who is an employee of a company but not related to a task, audits that task to find out if any irregularities are present. It ensures unbiased review.
3. Joe Cockrell writes checks and also records cash payment journal entries. Weak Internal Control. Segregation of Duties Internal control violated.
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. It can help avoid fraud because people will not be able to approve payments for themselves which is what Joe Cockrell can do in this scenario. Joe can withdraw and decide not to record it.
4 .One individual orders inventory, while a different individual authorizes payments. Good Internal Control. Segregation of Duties Internal control followed.
Segregation of duty calls for the division of a job process into tasks that different people are to accomplish especially in relation to cash. By having one individual order inventory and the other authorizing payments, fraud can be better avoided.
5 .Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Weak Internal Control. Documentation Procedures Internal control violated.
Documentation procedures in a company ensure that the paper trail is efficiently recorded so that transactions can be followed up speedily. By sending unnumbered sales invoices to the Accounting department as well as taking so long to do so, the company is running an inefficient documentation process that will make tracking transactions more difficult.
Grace manufactures and sells miniature digital cameras for exist330 each. 2,000 units were sold in May, and management forecasts 4% growth in unit sales each month.
Determine the number of units of camera sales for the month of June.
Number of camera sales ______________ units
Determine the dollar amount of camera sales for the month of June.
Amount of camera sales ____________
Answer:
2,080 units
$686,400
Explanation:
The computation of the number of camera sales in units is shown below:-
Number of camera sales in units = Sold units + (Sold units × Percentage of growth in units sales)
= 2,000 + (2,000 × 4%)
= 2,000 + 80
= 2,080 units
The computation of the amount of camera sales is shown below:-
Amount of camera sales = Number of units × Selling price per unit
= 2,080 × $330
= $686,400
The following data are the actual results for Marvelous Marshmallow Company for August:
Actual output 8,000 cases
Actual variable overhead $ 427,000
Actual fixed overhead $ 149,000
Actual machine time 33,400 machine hours
Standard cost and budget information for Marvelous Marshmallow Company follows:
Standard variable-overhead rate $ 12.00 per machine hour
Standard quantity of machine hours 4 hours per case of marshmallows
Budgeted fixed overhead $ 144,000 per month
Budgeted output 12,000 cases per month
Required:
Compute the following variances:
a Variable-overhead spending variance
b. Variable-overhead efficiencv variance
c. Fixed-overhead budget variance
d. Fixed-overhead volume variance
Answer:
a. $26,200 Unfavorable
b. $16,800 Unfavorable
c. $ 5,000 Unfavorable
d. $48,000 Unfavorable
Explanation:
a Variable-overhead spending variance
Variable-overhead spending variance = Budgeted Variable overheads at actual hours worked - Actual variable overheads
= (33,400 × $ 12.00) - $ 427,000
= $400,800 - $ 427,000
= $26,200 Unfavorable
b. Variable-overhead efficiency variance
Variable-overhead efficiency variance = (Actual Output × Standard hour × Standard rate) - (Actual hours × Standard rate per hour)
= (8,000 × 4 × $ 12.00) - (33,400 × $ 12.00)
= $384,000 - $400,800
= $16,800 Unfavorable
c. Fixed-overhead budget variance
Fixed-overhead budget variance = Actual Fixed Overheads - Budgeted Fixed Overheads
= $ 149,000 - $ 144,000
= $ 5,000 Unfavorable
d. Fixed-overhead volume variance
Fixed-overhead volume variance = Fixed overheads at Budgeted Production - Budgeted Fixed Overheads
= ($ 144,000 / 12,000 × 8,000) - $ 144,000
= $96,000 - $144,000
= $48,000 Unfavorable
You can ready yourself for an interview by:
a. Conducting a practice interview
b. Preparing answers to typical questions
c. Researching the company
d. All of the above
Please select the best answer from the choices provided
о А
o B
Mark this and return
Save and Exit
Nex
Submit
The correct answer is D. All of the above
Explanation:
Preparing for an interview implies as a candidate for a job knowing beforehand how to answer and behave during the interview. One of the best ways to achieve this is to prepare answers to typical questions because, in this way, your answers will be coherent, complete and you will show confidence when answering.
Besides this, you can conduct a practice interview or recreate the interview; this will help you to practice how to talk, introduce yourself, or behave during the interview.
Moreover, to be ready for the interview you should be well informed about the company because it is common some interview questions are related to the company goals or expectations of an employee, and in this way, you can answer appropriately and show your interest in working in the company.
Indus Corporation pays $100,000 for the trademark rights to a line of soda equipment. After several years, sales for this line of soda equipment are disappointing, and the company estimates the total future cash flows from sales will be only $110,000. The estimated fair value of the trademark is now $60,000. What is the amount of the impairment loss to be recorded
Answer:
impairment loss = $40,000
Explanation:
In accounting, impairment loss refers to the decrease of an asset's carrying value. In order to calculate the impairment loss, you need to subtract the current market value of the asset from its original carrying value.
impairment loss = carrying value - current market value = $100,000 - $60,000 = $40,000
The following information is available for the first month of operations of Lane Inc., a manufacturer of mechanical pencils:
Sales $416,720
Gross profit 242,950
Indirect labor 90,430
Indirect materials 45,220
Other factory overhead 13,750
Materials purchased 128,350
Total manufacturing costs for the period 239,610
Materials inventory, end of period 17,090
Using the above information, determine the following:
a. The cost of finished goods available for sale minus the ending finished goods inventory.Cost of goods sold.
b. The cost of materials that are an integral part of the finished product.Direct materials cost.
c. The wages of factory workers who are directly involved in converting materials into a finished product.Direct labor cost.
Answer:
a. Cost of goods sold = Sales - Gross profit
= $416,720 - $242,950
= $173,770
b. Direct materials cost = Materials purchased -Indirect materials - Materials inventory, end of period
= $128,350 - $45,220 - $17,090
= $66,060
c. Direct labor cost =Total manufacturing costs for the period - Direct materials cost - Factory overhead
= $239,610 - $66,060 - ($90,430 + $45,220 + $13,750)
= $239,610 - $66,060 - $149,380
=$239,610 - $215,440
=$24,170
In recent years, cellular phones have become very popular. What is the effect of this change in taste and preferences on the market for cellular phones?
Answer:
The effect is a decrease in the use of land line phones, so there is a decrease in demand for land line phones and an increase in demand for cellular phones.
Explanation:
With the popularization of the cell phone, there was an economic effect caused by the increase in demand for cell phones and the decrease in demand for landlines, which means that the landline sector was affected by changes in consumer taste and preferences, which led to many fixed-line operators migrate to a focus on mobile telephony.
With the popularization of cell phones, it is also possible to notice the increase in industries that produce increasingly technological and differentiated devices to meet this constantly growing demand.