Answer:
A.)only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
Explanation:
The Bargaining leverage of Suppliers, can be regarded as one out of the forces described in Porter's Five Forces of framework, it can be defined as the pressure that can be put on companies by suppliers through raising their prices as well as reduction in availability of their products. Even quality lowering. It should be noted that The bargaining leverage of suppliers is greater when only a small number of suppliers exist and when it is difficult for industry members to switch to attractive substitutes.
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:
Answer:
Underapplied by $3,000
Explanation:
Calculation for what The Corporation's manufacturing overhead cost for the year was:
First step is to calculate the Predetermined Overhead rate
Predetermined Overhead rate=( $ 330,000/ 55,000)
Predetermined Overhead rate= $ 6 per labor hour
Now let calculate the Manufacturing overhead cost
Manufacturing overhead cost= (6 x 57 000)-$345,000
Manufacturing overhead cost=$342,000-$345,000
Manufacturing overhead cost=Underapplied by $3,000
Therefore The Corporation's manufacturing overhead cost for the year was:underapplied by $3,000
On January 1, Great Designs Company had a debit balance of $1,700 in the office supplies account. During the month, Great Designs purchased $1,000 of office supplies and journalized them to the asset account upon purchasing. On January 31, an inspection of the office supplies cabinet shows that only $600 of office supplies remains.
Required:
Prepare the January 31 adjusting entry for office supplies.
Answer:
See below
Explanation:
On Jan 1st
Office supplies balance $1,700
Purchases = $1,000
Balance in office supplies account = $1,700 + $1,000 = $2,700
Amount to be written off of office supplies = $2,700 - $600 = $2,100
Quickbooks Online. IRS guidelines require specific information to substantiate deductible automobile expenses. Which 3 items are included in the substantiation requirements?
Answer:
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
Explanation:
IRS guidelines available for automobile
deductible is that if one is using his cat for business purposes, the entire cost of ownership as well as operation can be deducted. But if the car is for business and personal purposes, the cost for the business use can be deducted.
The three items that are are included in the substantiation requirements are;
✓Vehicle type
✓date placed in service
✓total mileage (including business, commuting and personal)
Suppose a country is able to produce a maximum of either 300 units of lumber or 100 units of rice. This country is currently allocating its labor resources to produce 75 units of lumber and 75 units of rice. To increase its lumber production by 6 units to 81, the country faces an opportunity cost of
A. 2 units of rice.
B. 6 units of rice.
C. 75 units of rice.
D. 18 units of rice
Answer: A. 2 units of rice.
Explanation:
The opportunity cost of producing lumber is:
= Maximum rice production / maximum lumber production
= 100 / 300
= 1/3 units of rice
If the country wants to increase its lumber production by 6, it will incur an opportunity cost of:
= 6 * 1/3
= 2 units of rice
We observe the following annualized yields on four Treasury securities: (75%)
Maturity (years) Yield-to-maturity (%)
0.5 4.00
1 4.50
1.5 5.00
2 5.50
The par is $1000 for all the securities. The one with 0.5-year to mature is a zero coupon bond. Al other securities are coupon-bearing bonds selling at par. Note that, for par bonds, the coupon rate equals YTM. (20 points)
1. Calculate the spot rates for the maturities of 0.5, 1, 1.5, and 2 years.
2. What is the price of a 2-year bond with an 8% annual coupon rate (assume $1000 par)?
3. Suppose a 1-year zero-coupon bond with a par value of S1000 is selling at $900. Is there any arbitrage opportunity? If there is, construct an arbitrage portfolio and show the profit.
4. Calculate the one-period-ahead forward rates from 0 to 0.5, from 0.5 to 1, from 1 to 1.5, and from 1.5 to 2.
5. One year from now, you plan to purchase a then one-year bond with a 1000 par and an 8% annual coupon rate. What is the expected price of the bond? Assume the expectation hypothesis holds. Under the expectation hypothesis, the expected future spot rate equals the forward rate.
Answer:
Explanation:
1.
From the given information;
The spot rate for maturity at 0.5 year [tex](X_1) = 4\%/2 = 2\%[/tex]
The spot rate for maturity at 1 year is:
= [tex]\dfrac{22.5}{(1+X_1)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1000 + 22.5}{(1+X_2)^2}=1000[/tex]
= [tex]\dfrac{22.5}{(1+0.02)}+ \dfrac{1022.5}{(1+X_2)^2}=1000[/tex]
By solving for [tex]X_2[/tex];
[tex]X_2[/tex] = 2.253%
The spot rate for maturity at 1.5 years is:
[tex]= \dfrac{25}{(1+X_1)}+ \dfrac{25}{(1+X_2)^2}+ \dfrac{1000 + 25}{(1+X_3)^3}=1000[/tex]
Solving for [tex]X_3[/tex]
[tex]X_3[/tex] = 2.510%
The spot rate for maturity at 2 years is:
[tex]= \dfrac{27.5}{(1+X_1)}+ \dfrac{27.5}{(1+X_2)^2}+ \dfrac{27.5}{(1+X_3)^3} +\dfrac{1000+27.5}{(1+X_4)^4} =1000[/tex]
By solving for [tex]X_4[/tex];
[tex]X_4[/tex] = 2.770%
Recall that:
Coupon rate = yield to maturity for par bond.
Thus, the annual coupon rates are 4%, 4.5%, 5%, and 5.5% for 0.5, 1, 1.5, 2 years respectively.
2.
For n years, the price of n-bond is:
[tex]= \dfrac{cash \ flow \ at \ year \ 1}{1+X_1}+ \dfrac{cash \ flow \ at \ year \ 2}{(1+X_2)^2}+... + \dfrac{cash \ flow \ at \ year \ b}{(1+X_n)^n}[/tex]
Thus, for 2 years bond implies 4 periods;
∴
[tex]= \dfrac{40}{1+0.02}+ \dfrac{40}{(1+0.02253)^2} + \dfrac{40}{(1+0.0252)^3}+ \dfrac{40}{(1+0.0277)^4}[/tex]
= $1047.024
3.
Suppose there exist no-arbitrage, then the price is:
[tex]= \dfrac{0}{(1+0.02)}+\dfrac{1000}{(1+0.02253)^2}[/tex]
= 956.4183
Since the market price < arbitrage price.
We then consider 0.5, 1-year bonds from the portfolio
Now;
weight 2 × 1000 + weight 2 × 22.5 = 1000
weight 2 × 1022.5 = 1000
weight 2 = 1022.5/1000
weight 2 = 0.976
weight 1 + weight 2 = 1
weight 1 = 1 - weight 2
weight 1 = 1 - 0.976
weight 1 = 0.022
The price of a 0.5-year bond will be:
[tex]= \dfrac{1000}{(1+0.02\%)} \\ \\ =\mathbf{980.39}[/tex]
The price of a 1-year bond will be = 1000
Market value on the bond portfolio = 0.022 × price of 0.5 bond + 0.978 × price 1-year bond = 956.42
= 0.022 × 980.39 + 0.978 × 1000
= 956.42
So, to have arbitrage profit, the investor needs to purchase 1 unit of the 1-year zero-coupon bond as well as 0.022 units of the 0.5-year bond. Then sell 0.978 unit of the 1-year bond.
Then will he be able to have an arbitrage profit of $56.42
4.
The one-period ahead forward rates can be computed as follows:
Foward rate from 0 to 0.5 [tex]X_1[/tex] = 2%
Foward rate from 0.5 to 1
[tex](1+X_2)^2 = (1+X_1) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
[tex](1+0.0225)^2 = (1+0.02) \times (1+ Foward \ rate \ from \ 0.5 \ to \ 1 )[/tex]
Foward rate from 0.5 to 1 = 2.5%
Foward rate from 1 to 1.5
[tex](1+X_3)^3 = (1+X_2)^2 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
[tex](1+0.0251)^3 = (1+0.0225)^3 \times (1+ Foward \ rate \ from \ 1 \ to \ 1.5 )[/tex]
Foward rate from 1 to 1.5 =3.021%
Foward rate from 1.5 to 2
[tex](1+X_4)^4 = (1+X_3)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
[tex](1+0.0277)^4 = (1+0.0251)^3 \times (1+ Foward \ rate \ from \ 1.5 \ to \ 2 )[/tex]
Foward rate from 1.5 to 2 =3.021%
5.
The expected price of the bond if the hypothesis hold :
= [tex]\dfrac{40}{1+ 0.03021}+ \dfrac{1000+40}{(1+0.03285)^2}[/tex]
[tex]= \dfrac{40}{(1.03021)}+ \dfrac{1040}{(1.03285)^2}}[/tex]
= 1013.724254
= 1013.72
Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for this year follow. Molding Trimming Direct labor hours 52,000 DLH 48,000 DLH Machine hours 30,500 MH 3,600 MH Overhead costs $ 730,000 $ 590,000 Data for two special-order parts to be manufactured by the company in this year follow. Part A27C Part X82B Number of units 9,800 units 54,500 units Machine hours Molding 5,100 MH 1,020 MH Trimming 2,600 MH 650 MH Direct labor hours Molding 5,500 DLH 2,150 DLH Trimming 700 DLH 3,500 DLH Required: 1. Compute the plantwide overhead rate using direct labor hours as the base. 2. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement 1.
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined plantwide overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
total estimated overhead costs for the period= $1,320,000
total amount of allocation base= 100,000
Predetermined manufacturing overhead rate= 1,320,000 / 100,000
Predetermined manufacturing overhead rate= $13.2 per direct labor hour
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Part A27C:
Allocated MOH= 13.2*(5,500 + 700)
Allocated MOH= $81,840
Part X82B:
Allocated MOH= 13.2*(2,150 + 3,500)
Allocated MOH= $74,580
Sweet Company manufactures equipment. Sweet’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Sweet has the following arrangement with Winkerbean Inc.
● Winkerbean purchases equipment from Sweet for a price of $930,000 and contracts with Sweet to install the equipment. Sweet charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Sweet determines installation service is estimated to have a standalone selling price of $46,000. The cost of the equipment is $560,000.
● Winkerbean is obligated to pay Sweet the $930,000 upon the delivery and installation of the equipment.
Sweet delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
How should the transaction price of $930,000 be allocated among the service obligations?
Equipment $
Installation $
Prepare the journal entries for Sweet for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Sweet receives payment when installation is completed.
Answer:
Equipment:
= Fair value of Equipment / Total fair value * Transaction price
= Fair value of Equipment / (Equipment+Installation) * Transaction price
= $930,000 / ($930,000+$46,000) * $930,000
= $886,168.03
Installation:
= Fair value of Installation / Total fair value * Transaction price
= Fair value of Installation / (Equipment+Installation) * Transaction price
= $46,000 / ($930,000+$46,000) * $930,000
= $43,831.97
Thus, the transaction price of $930,000 allocated to Equipment is $886,168.03 and $43,831.97 to Installation
Date Account Titles and Explanation Debit Credit
June 1 Account receivable $930,000
Sales revenue $886,168.03
Unearned service revenue $43,831.97
(To record the sales of equipment including installation to W)
June 1 Cost of goods sold $560,000
Inventory $560,000
(To record the cost of equipment sold)
Sep 30 Unearned service revenue $43,831.97
Service revenue $43,831.97
(To record the revenue on installation of equipment)
Sep 30 Cash $930,000
Account receivable $930,000
(To record the receipt of cash flow from W)
A large technology Company decides to create an entrepreneurship friendly space, where small enterprises can operate in close proximity to one another. To create this space, which will be called Zone Forty-Two, the Company will construct office space, which will be rented to tenants for free. The Company is considering two start-up firms, B Enterprises (a business software producer) and M Enterprises (a medical software producer). Both firms are currently located in different small towns of California, where they work out of their homes hence pay no rent. The sales volume for a firm if it locates at Zone Forty-Two depends on whether the other firm is also present. These sales volumes, along with the firms’ sales at their current home locations, are presented in Table 1.
table 1 home- town locations zone forty-two(alone) zone forty-two(with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
Give an intuitive explanation why the sales figures are in the last column of Table 1 differ from the first two columns of the table. Hint: Elaborate on different types of economies that are likely to benefit firms locating next to each other in Zone Forty-Two.
Answer:
Zone-Forty-Two
Types of Economies Benefiting Firms Locating Next to Each Other:
Basically, internal and external economies of scale result from firms locating next to one another. While internal economies of scale are specific to a firm because they are internally generated savings, external economies of scale bring about larger changes outside the firm so that all the firms that are located next to one another benefit.
For example, when firms locate next to each other, there is increased procurement management, availability of specialized managers, availability of financial sources, and market improvement. These are internally-focused economies.
On the other hand, the external benefits that come from agglomeration of firms include the availability of common infrastructure, supply chain, innovation and ideas, and ability to lobby the authorities.
As a result of these economies or benefits, firms b and m enterprises are able to generate more increased sales as they locate close to each other at Zone Forty-Two than they could generate while they were located at their home-towns or alone at Zone Forty-Two.
Explanation:
a) Data and Calculations:
Firms' Sales
Firms Hometown Zone forty-two Zone forty-two
locations (alone) (with other firm)
b enterprises 600 600 670
m enterprises 700 700 950
These economies resulting from proximate locations of firms include the growth of technical, marketing, commercial, financial benefits, and some network effects. Therefore, it is always interesting to study how firms grow more as they compete and learn from one another than they do when they dominate their individual hometown markets.
THE
Guy Zone
Janna and her friend Leah both work for telecommunications companies. One night over
dinner, they discuss some new product ideas they think would be successful in their industry.
Janna has a great idea that Leah loves. The next week, Leah presents the idea to her manager
who says he will consider taking it to the next new-product committee meeting. Was Leah's
action ethical? Do you consider this to be "stealing the idea from her friend?
Answer:
Leah should ask from Janna before he discusses the idea with his manager.
Explanation:
Leah action is not ethical since it was Janna idea and Leah presented to his manager as if it is his idea. Janna and Leah both are in same industry so if Leah promotes the Janna idea to his manager his company will be more successful than Janna. Leah should have taken permission from Janna before discussing the idea with his manager.
The journal entry to record the purchase of materials on account is a(n)
A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $59,000 for Memphis, $69,000 for Biloxi, and $104,000 for Birmingham. Labor and materials are expected to be $7 per unit in Memphis, $5 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $58,000 per year, the Biloxi location by $68,500 per year, and the Birmingham location by $25,400 per year. Expected annual volume is 14,400 units.
Answer:
Total cost for a location = Annual costs for building, equipment, and administration + Labor and materials cost per unit*expected annual volume + Increase in transportation costs
Total cost for Memphis location = $59000 + $7*14400 + $58000
Total cost for Memphis location = $217,800
Total cost for Biloxi location = $69000 + $5*14400 + $68500
Total cost for Biloxi location = $209,500
Total cost for Birmingham location = $104000 + 5*14400 + $25400
Total cost for Birmingham location = $201,400
So, Birmingham location gives the lowest Annual Total Cost.
Suppose that your marginal federal income tax rate is 40%, and the yield on thirty-year U.S. Treasury bonds is 4.5%. You would be indifferent between buying a thirty-year Treasury bond and buying a thirty-year municipal bond issued within your state (ignoring differences in liquidity, risk, and costs of information) if the municipal bond has a yield of Group of answer choices 10.0%. 2.8%. 1.8%. 2.7%.
Answer:
2.7%
Explanation:
Calculation for the municipal bond yield
Municipal bond yield=(1-.4)*0.045
Municipal bond yield=.6*.045
Municipal bond yield=0.027*100
Municipal bond yield=2.7%
Therefore based on the information given You would be indifferent between buying a thirty-year treasury bond and buying a thirty- year municipal bond issued within your state if the municipal bond has a yield of 2.7%
A factory machine was purchased for $385000 on January 1, 2021. It was estimated that it would have a $78000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 38000 hours in the 5 years. The company ran the machine for 3800 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be
Answer:
$30,700
Explanation:
Calculation for what the amount of depreciation expense for 2021 would be
Depreciation expense for 2021 =[($385,000 - $78,000) ÷ 38,000] × 3,800
Depreciation expense for 2021 =($307,000÷38,000)×3,800
Depreciation expense for 2021 =8.078947369×3,800
Depreciation expense for 2021 =$30,700
Therefore the amount of depreciation expense for 2021 would be $30,700
The Perfect Haircut: Consumers' Search Process
Two consumers are searching for new hair salons and have very different belief systems and needs that affect the way they search for information.
The second step in the consumer decision process, after a consumer recognizes a need, is to search for information about various options that exist to satisfy that need. The length and intensity of the search are based on the degree of perceived risk associated with purchasing the product or service.
Read each statement when it appears and place the activity in the correct box in the chart.
Effortless, Worth the Money, Expensive Service, Salon of Choice, Unimportant, Tight Budget, Could Damage Career, All the Same, Salon of Convenience, Personal Image
Joleen Jones Ginger Petri
Performance Risk
Financial Risk
Psychological Risk
Internat vs External Search for Information
Benefits vs Costs
Answer:
Explanation:
✓Performance Risk
1)Could Damage Career
2)All the same
✓Financial Risk ( risks that could be attributed to finance, i.e money)
1)Tight budget
2)Expensive Service
✓Psychological Risk
1)Unimportant
2)Personal Image
✓Internal vs External ( ways to get access to information)
1)Salon of Convenience
2)Salon of Choice
✓Benefits vs Costs
1)Worth the Money
2)Effortless
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
Who is credited with pioneering the principles of the scientific approach to management ?
Answer:
Frederick Winslow Taylor
Frederick Winslow Taylor was an American mechanical engineer. He was widely known for his methods to improve industrial efficiency. He was one of the first management consultants.
Kyle had a splitting headache. His buddy Cyrus gave him a couple of lime-green pills to take away the pain. When Kyle awoke, Cyrus was lying next to him in a pool of blood. If Kyle is tried for a crime, what could be his defense?
insanity
duress
intoxication
necessity
Answer:
necessity
Explanation:
This is necessity beause it might have been on accident to help cyrus but became a bloody murder,seems like a 3rd or a second degree murder,most likely 3rd degree,it just happend.
Answer:
C
Explanation:
bro read it and u'll know other person is wrong
Consider the following transactions for Huskies Insurance Company:
a. Equipment costing $42,000 is purchased at the beginning of the year for cash. Depreciation on the equipment is $7,000 per year.
b. On June 30, the company lends its chief financial officer $50,000; principal and interest at 7% are due in one year.
c. On October 1, the company receives $16,000 from a customer for a one-year property insurance policy. Deferred Revenue is credited.
For each item, record the necessary adjusting entry for Huskies Insurance at its year-end of December 31. No adjusting entries were made during the year.
Answer:
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
31-Dec
Dr Interest receivable $1,750
Cr Interest revenue $1,750
31-Dec
Dr Deferred Revenue $4,000
Cr Revenue or Service Revenue $4,000
Explanation:
Preparation of the necessary adjusting entry for Huskies Insurance at its year-end of December 31.
31-Dec
Dr Depreciation expense $7,000
Cr Accumulated Depreciation - Equipment $7,000
(Being to adjust 12 month depreciation)
31-Dec
Dr Interest receivable ($50,000 x 7% x 6/12) $1,750
Cr Interest revenue $1,750
(Being to adjust 6 month interest revenue accrued)
31-Dec
Dr Deferred Revenue ($16,000 x 3/12) $4,000
Cr Revenue or Service Revenue $4,000
(Being to record earned revenue for 3 months)
A household consists of a married couple and their two-year-old daughter. The couple's daughter had no income and lived with her parents all of last year. How many exemptions can the couple claim on last year's tax return if they file with the "Married filing jointly" status?
Answer:
3 is the answer
Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice (net of the associated for AGI self-employment tax deduction). Assume that Roquan pays $40,000 in wages to his employees, has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000.
1. Calculate Roquan's deduction for qualified business income.
2. Assume the same facts as earlier, except Roquan's taxable income before the deduction for qualified business income is $300,000.
Answer:
A. $18,000
B. No QBI deduction
Explanation:
a) Calculation for Roquan’s deduction for qualified business income.
Using this formula
Roquan's qualified business income.
= 20% x QBI
Let plug in the formula
Roquan's qualified business income
= 20% x $90,000
Roquan's qualified business income= $18,000
Therefore Roquan’s deduction for qualified business income will be $18,000
b) Based on the information given if we assumed that Roquan's taxable income before the deduction for qualified business income is the amount of $300,000 which means that Roquan's income is higher than the amount of $213,300 hence, NO qualified business income deduction (QBI) will be allowed.
Waterway Industries started the year with $66000 in its Common Stock account and a credit balance in Retained Earnings of $48400. During the year, the company earned net income of $52800, and declared and paid $22000 of dividends. In addition, the company sold additional common stock amounting to $30800. As a result, the balance in retained earnings at the end of the year would be
Answer:
$79,200
Explanation:
The computation of retained earning at year end is seen below;
= Opening retained earning balance + Net income - dividend paid
= $48,400 + $52,800 - $22,000
= $79,200
Therefore, the retained earnings balance is $79,200
The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. a. Materials fill in the blank 0405c7fed078fd8_2 fill in the blank 0405c7fed078fd8_3 Accounts Payable fill in the blank 0405c7fed078fd8_5 fill in the blank 0405c7fed078fd8_6 b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank. b. fill in the blank 6c73b5f42041fa9_2
Answer:
Note: The missing question is attached as picture
a. Accounts title & Explanations Debit$ Credit$
Material inventory 641,200
($122,700+$170,600+$336,200+$11,700)
Accounts payable 641,200
(For material purchased on account)
Note: Both, Direct material and Indirect material is included in Materials
b. Accounts title & Explanations Debit$ Credit$
Work in process inventory 652,300
($233,700+$211,300+$136,200)
Manufacturing Overheads 6,100
Material inventory 658,400
(For material issued for production both as direct and indirect material)
Note: Requisition of direct materials are charged to WIP and requisition of indirect materials forms part of factory overhead.
Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be:
Answer:
For making 10,000 units
Type A cost = 40,000
Type B Cost = 90,000
Type C Cost = 25,000
Explanation:
Given - Shum Manufacturing, which uses the high-low method, makes a
product called Kwan. The company incurs three different cost
types (A, B, and C) and has a relevant range of operation between
2,500 units and 10,000 units per month. Per-unit costs at two
different activity levels for each cost type are presented below.
Type A Type B Type C Total
5,000 units $4 $9 $4 $17
7,500 units $4 $6 $3 $13
To find - If Shum produces 10,000 units, the total cost would be ?
Proof -
As we know that
Total cost = Variable cost per unit × Units + Fixed Cost
Now,
As per the question ,
Highest Activity unit = 7,500 units
Lowest Activity unit = 5,000 units
Now,
Variable cost per unit = Change in cost / Change in activity unit
= ( Highest Activity cost - Lowest Activity cost ) / ( Highest Activity unit - Lowest Activity unit )
Type A Type B Type C
Highest Activity Cost 30,000 45,000 22,500
Lowest Activity Cost 20,000 45,000 20,000
Variable Cost Per unit 4 0 1
Fixed Cost 0 90,000 15,000
Now,
Statement Showing Total Cost for 10,000 units
Particulars Type A Type B Type C
Variable Cost 40,000 0 10,000
Fixed Cost 0 90,000 15,000
Total 40,000 90,000 25,000
∴ we get
For making 10,000 units
Type A cost = 40,000
Type B Cost = 90,000
Type C Cost = 25,000
assume the cost of a college education would be to 325,000 when your child enters college 17 years. You presently have $51,000 to
Answer:
11.51 %
Explanation:
The computation of the interest rate is shown below:
As we know that
Amount = P (1 + rate)^number of years
$325,000 = $51,000 (1+r)^17
(1+r)^17 = $325,000 ÷ $51,000
(1+r)^17 = 6.372549
(1+r) = (6.372549)^1 ÷ 17
1 + r = 1.115097
r = 1.115097 - 1
r = 0.115097
= 11.51 %
Selected balance sheet and income statement information for EKG Corporation and AMP Company follows ($ millions). Company EKG Corp AMP Company 2017 Sales $37,006 47,409 2017 NOPAT $1,292 1,716 2017 Net Operating Assets $10,007 8,781 Compute the 2017 net operating asset turnover (NOAT) for each company. A) EKG NOAT: B) AMP NOAT: Page 7 of 17 2016 Net Operating Assets $9,437 7,818
Answer:
See below
Explanation:
Net operating asset turnover ratio is computed as;
= Net sales / Average net operating assets
Company EKG Corp.
Net operating asset turnover ratio = $37,006 / [($1,292 + $10,007)/2]
= $37,006 / $5,650
= 6.55
Corp AMP Company
Net operating asset turnover ratio = $47,409 / [($1,716 + $8,781)/2]
=$47,409 / $6,107
= 7.76
An argument that opposes the idea of high executive pay is: ___________
a. High salaries provide an incentive for innovation and risk-taking.
b. Not many individuals are capable of running today's large, complex organizations.
c. Top athletes and entertainers make a lot of money, so top executives should, too.
d. High salaries divert resources that could be used to invest in the business.
Answer:
D
Explanation:
when pay becomes high with respect to several executives or just one, the resources and expense needed to keep the business growing....will be shortened
Consider an organization that has empowered its employees, asking them to improve the quality, productivity, and responsiveness of their processes that involve repetitive work. This work could arise in a manufacturing setting, such as assembling cars or producing chemicals, or in a service setting, such as processing invoices or responding to customer orders and requests. Clearly the workers would benefit from feedback on the quality (defects, yields) and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve quality, productivity, and process times. Be specific about the types of financial information that would be helpful and the specific decisions or actions that could be made better by supplementing physical and operational information with financial information.
Answer:
Follows are the solution to this question:
Explanation:
In this question, one of the biggest factors in a company is the employee's wealth, and by evaluate the figures in the financial reports about trends, because then workers know clearly how their job impacts the progress of the company.
It offering information on the non-specific regular costs of business, and by try giving the issue a simple approach is to make the employees fully comprehend it. Finally but not least, the position of the employees throughout the company's general profitability.
Its provision of such knowledge will certainly improve productivity ultimately the quality.
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
Issued 30,000 shares of no-par common stock in exchange for $300,000 in cash.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
Paid $5,000 in rent on the warehouse building for the month of March.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
Paid $70,000 on account for the merchandise purchased in 3.
Collected $55,000 from customers on account.
Recorded depreciation expense of $1,000 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Wainwright Corporation
Journal Entries:
a. Debit Cash $300,000
Credit Common Stock $300,000
To record the issue of 30,000 shares of no-par common stock for cash.
b. Debit Equipment $40,000
Credit Cash $10,000
Credit Notes Payable $30,000
To record the purchase of equipment.
c. Debit Inventory $90,000
Credit Accounts payable $90,000
To record the purchase of inventory on account.
d. Debit Accounts receivable $120,000
Credit Sales revenue $120,000
To record the sale of goods on account.
Debit Cost of Goods Sold $70,000
Credit Inventory $70,000
To record the cost of goods sold.
Debit Rent Expense $5,000
Credit Cash $5,000
To record the rent expense for the month.
Debit Prepaid Insurance $6,000
Credit Cash $6,000
To record the prepayment of insurance for one year.
Debit Accounts payable $70,000
Credit Cash $70,000
To record the payment on account.
Debit Cash $55,000
Credit Accounts receivable $55,000
To record the collection of cash from customers.
Debit Depreciation Expense - Equipment $1,000
Credit Accumulated Depreciation - Equipment $1,000
To record the depreciation expense for the month.
Explanation:
General journal entries are used to initially record all types of transaction in the accounting records. They form the basis for posting to the general ledger. They also indicate the accounts to be debited or credited in the general ledger.
The police need to have _____ to obtain a search warrant.
absolute certainty
a mere suspicion
no reason
probable cause
Answer:
PROBABLE CAUSE
Explanation:
Rubin, a freelance software developer, has a meeting with an independent bakery owner to discuss a potential project. Before meeting with the client, Rubin does a thorough research on the client's business and the client's educational background. He develops his proposal accordingly, ensuring to use common words instead of technical jargon. In the given scenario, which of the following communication guidelines does Rubin follow?
A) Avoid bias.
B) Avoid the use of slang.
C) Be concise.
D) Analyze your audience.
Answer:
d
Explanation:
Communication encompasses all the processes of transmitting information from one person to another.
In order to effectively communicate, one must analyse their audience to ensure that the message is effectively communicated.