Answer:
$67,150
Explanation:
The computation of cost of goods manufactured for this period is shown below:-
Cost of goods sold = Beginning finished goods + Cost of goods manufactured - Ending finished goods
$71,400 = $84,000 + Cost of goods manufactured - $79,750
$71,400 = $4,250 + Cost of goods manufactured
Cost of goods manufactured = $71,400 - $4,250
= $67,150
Therefore for computing the cost of goods manufactured we simply applied the above formula.
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
Answer:
partial measure
Explanation:
Based on the information provided it can be said that the kind of productivity measure that can be used would be a partial measure. Partial Productivity measure relates output to a single input unit. For example, capital productivity deals with output per unit of capital while energy productivity relates output per joule of energy used. In this scenario, we would need labor productivity which is output per hour worked.
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. The reporting statement of a company is shown. A table with four columns is shown. The first column has no heading; the second columns heading is 20Y3; the third column heading is 20Y2; the third column heading is 20Y1. The headings, 20Y3, 20Y2 and 20Y1 are set in bold. The transactions listed are as follows: Accounts receivable, end of year is $ 725,000; $ 650,000 and $ 600,000; account are 5,637,500 and 4,687,500. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round to the nearest dollar and one decimal place. Answer Check Figure: Accounts receivable turnover, 20Y3, 8.2 Pencil What conclusions can be drawn from these data concerning accounts receivable and credit policies
Answer: For 20Y3 --8.2 times, 44.5 days
For 20Y2----7.5 times 48.7 days
Explanation:
20Y3 20Y2 20Y1
Accounts receivable, end of years $ 725,000; $ 650,000 $ 600,000'
Sales on account 5,637,500 4,687,500
For 20Y3 --
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $5,637,500
Average Account receivable
=(End of years of yr2 and 3)/ 2=($ 725,000 +$ 650,000) /2 = $1.375,000/2= $687, 500
Accounts receivable turnover = $5,637,500/ $687,500=8.2 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/8.2 = 44.5 days
For 20Y2
Accounts receivable turnover = Net credit Sales / Average Account receivable
Net Credit sales= $4,687,500
Average Account receivable
=(End of years of yr2 and 1)/2 = ($ 650,000 + $ 600,000') /2 = $/2= $625,000
Accounts receivable turnover = $4,687,500/ $625,000=7.5 times
Number of days sales in receivables = 365 days / Accounts receivable turnover
= 365/7.5= 48.7 days
b. Accounts receivable in cash owed by clients to a company from the invoices the company sent to them
Also, Credit policy is a requirement that establishes the payment terms of a company to its clients so as to eliminate the risk of loss. The credit policy differs and from company and comprises of the payment terms( the duration of time) or credit period, collections, discounts and operational standard
---->The relationship between credit policy and account receivables is that is that when a company establishes that payment terms are increased and on credit, the accounts receivables increases reducing a company''s finance. A company that establishes a decrease in the credit period duration will have a reduced account receivable providing fast financial returns to the company.
From the results obtained from 20Y3 and 20Y2, We will see that
Particulars 20Y3 20Y2 Remark
Aturnover ratio 8.2times 7.5 times Increase by 0.7 times
Number of days sales
in receiviable 44.5 days 48.7days Decrease by 4.2 days
In year 20Y3, THE higher ratio of accounts receivable turnover shows that cash for sales will more likely to be collected than a 20Y2 with a lower ratio of accounts receivable turnover.
Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
Answer: The answers are provided below
Explanation:
The fixed order quantity system is an arrangement whereby the inventory level is typically continuously monitored and also the replenishment stock is ordered based on the previously-fixed quantities while for a fixed time period model, the inventory levels are checked on regular basis for the items e.g every week.
A plant manager may elect to use a fixed-order quantity model as opposed to a fixed-time period model when the holding cost is much higher. Typically, fixed order quantity model is typically used for the costly items.
The disadvantages of using a fixed-time period ordering system are:
i. It doesn't consider market structure changes
ii. There should be a high level of inventory in order to avoid stock out.
iii. It leads to rigidity in the system as it makes the decision on time period complex when there's need for urgency.
OTR Trucking Company runs a fleet of long-haul trucks and has recently expanded into the Midwest, where it has decided to build a maintenance facility. This project will require an initial cash outlay of $ 21.5 million and will generate annual cash inflows of $4.4 million per year for Years 1 through 3. In Year 4, the project will provide a net negative cash flow of $5.4 million due to anticipated expansion of and repairs to the facility. During Years 5 through 10, the project will provide cash inflows of $ 2.3 million per year.a. Calculate the project's NPV and IRR where the discount rate is 11 percent. Is the project a worthwhile investment based on these two measures? Why or why not? b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not? a. The project's NPV where the discount rate is 11% is $____ million. (Round to two decimal places.)
Answer:
year cash flows
0 -$21,500,000
1 $4,400,000
2 $4,400,000
3 $4,400,000
4 -$5,400,000
5 $2,300,000
6 $2,300,000
7 $2,300,000
8 $2,300,000
9 $2,300,000
10 $2,300,000
I used an excel spreadsheet to calculate the project's NPV, IRR and MIRR.
a. Calculate the project's NPV and IRR where the discount rate is 11 percent. Is the project a worthwhile investment based on these two measures? Why or why not?
NPV = -$7,895,194IRR = 0.09%Since the NPV is negative, the company should not invest in this project.b. Calculate the project's MIRR. Is the project a worthwhile investment based on this measure? Why or why not?
Since we are not given any financing rate nor WACC, we must assume that the company's discount rate is equal to its financing rate and WACC:
MIRR = 6.88%Since the MIRR is too low (lower than the company's WACC), the company should not invest in this project.When you calculate MIRR, you must assume that the company will invest the cash inflows at their normal WACC while the outflows are financed at a different rate.
C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A's annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time?
Answer: $6,800
Explanation:
The following can be deduced based on the information above:
The annual requirement will be the weekly demand multiplied by the number of operational weeks. This will be:
= 600 x 50
= 30,000 Bottles
Then, the number of orders will be the annual demand divided by the order size. This will be:
= 30,000 ÷ 500
= 60
Then, we calculate the ordering cost which will be the number of orders multiplied by the ordering cost per order. This will be:
= 60 x $30
= $1,800
The average inventory will be the lot size divided by 2. This will be:
= 500 / 2
= 250 Bottles
Then, the holding cost per unit will be the price multiplied by the percentage of the holding cost. This will be:
= $50 x 40%
= $50 × 0.4
= $20 per unit
Holding cost of thenverage inventory will be the average inventory multiplied by the holding cost per unit. This will be:
= 250 x $20
= $5,000
Therefore, C&A's total ordering and holding cost per year if C&A orders 500 bottles at a time will be:
= $1,800 + $5,000
= $6,800
Bob wants to help his daughter, Violet, upgrade her home. Bob buys a new refrigerator and oven for Violet on credit from a home supply store. He instructs the home supply store to deliver the new appliances to Violet's home for installation. Which of the following is true with regard to this scenario?
a. Bob's promise to pay the home supply store must be in writing.
b. Bob's promise to pay the home supply store can be oral.
c. Bob's liability to the home supply store is quasi-contractual in nature.
d. Bob's promise to pay the home supply store is void.
Answer:
A
Explanation:
must be in writing
hope it helps
Gibson Energy Ltd.’s general ledger account for Cash in Bank showed the following at December 31, 2019:
Cash in Bank Acct. No. 101
Balance DR (CR)
Date Description Folio Debit Credit Balance
Nov. 30 Balance (overdraft) 221,000
Dec. 1-31 Cash receipts CRJ10 813,000 1,034,000
Dec. 1-31 Cash Payments CDJ21 972,000 62,000
December deposits made and checks issued were as follows:
Deposits Checks
Date Amount No. Amount
Dec. 5 30,000 232 110,000
7 210,000 233 83,000
9 85,000 234 25,000
12 32,000 235 59,000
15 26,000 236 590,000
21 420,000 237 17,000
24 16,000 238 28,000
26 51,000 239 77,000
28 21,000
31 15,000
$813,000 $972,000
The December bank statement showed:
First Chartered Bank
Gibson Energy Ltd. Bank Statement
Month Ended December 31, 2019
Date Type Out In Balance
Dec. 3 Deposit 70,000 215,000
4 NR XYZ Corp. 80,000 295,000
5 Ck. 232 110,000 185,000
6 Ck. 231 70,000 115,000
6 Deposit 30,000 145,000
7 Deposit 210,000 355,000
10 Ck. 234 25,000 330,000
12 Ck. 236 590,000 (260,000)
13 Deposit 32,000 (228,000)
14 Ck. 52094* 62,000 (290,000)
14 NSF ABC. Inc. 7,000 (297,000)
15 Deposit 26,000 (271,000)
16 Ck. 238 28,000 (299,000)
17 Deposit 420,000 121,000
18 Ck. 235 59,000 62,000
20 Ck. 237 17,000 45,000
24 Deposit 16,000 61,000
26 Deposit 51,000 112,000
28 Deposit 21,000 133,000
31 OD int 1,320 131,680
31 SC 60 131,620
*drawn in error on Gibson’s bank account
NR = note receivable collected from XYZ Corp. including interest of:
$1,951
NSF = not sufficient funds
SC = service charge
OD int = overdraft interest expense
Outstanding items at November 30, 2019 were as follows:
Nov. 30 deposit $70,000
Ck. 231 $70,000
Required:
1. Complete the bank reconciliation at December 31, 2019.
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Answer:
1. Adjusted cash balance = Adjusted bank statement balance = $133,620.
2. See the adjusting journal entries and explanation in part 2. below.
Explanation:
Note: The data in the question are merged and they are first sorted in the attached excel file before the questions are answered as follows:
1. Complete the bank reconciliation at December 31, 2019.
The bank reconciliation is presented in two ways as follows:
a) Starting with cash book balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Cash book bal. at 31 Dec. yet to be reconciled 62,000
Add:
Collected note receivable from XYZ Corp 80,000
Less:
Dishonored NSF check (7,000)
Overdraft interest expense (1,320)
Bank service charge (60)
Adjusted cash balance at Dec 31 133,620
b) Starting with bank statement balance
Gibson Energy Ltd.
Bank Reconciliation
at 31 December 2019
Particulars Amount ($)
Bank statement bal. at Dec 31 yet to reconciled 131,620
Add:
Cash deposited on December 9th yet be credited 85,000
Cash deposited on December 31 yet be credited 15,000
Check #52094 wrongly drawn 62,000
Less:
Outstanding checks 233 (83,000)
Outstanding checks 239 (77,000)
Adjusted bank statement balance at Dec. 31 133,620
2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.
Date Accounts title & explanation DR ($) CR ($)
31 Dec 19 Cash 80,000
Note Receivable 78,049
Interest on note receivable 1,951
(To record note receivable & int. collected from XYZ)
31 Dec 19 Overdraft interest expense 1,320
Service charge 60
Cash 1,380
(To record interest expense and bank charges)
31 Dec 19 Account Receivable 7,000
Cash 7,000
(To record NSF check dishonored)
Crane Company incurs these expenditures in purchasing a truck: cash price $23,030, accident insurance (during use) $1,690, sales taxes $1,380, motor vehicle license $670, and painting and lettering $2,140. What is the cost of the truck
Answer:
$27,220
Explanation:
Cost of the truck includes : Cash price + sales tax + motor vehicle license + painting and lettering
accident insurance would not be added because its a revenue expenditure as it will reoccur after a year.
$23,030 + $670 + $2,140 + $1,380 = $27,220
I hope my answer helps you
Answer:
$27,220
Explanation:
From the question above Crane company incurs the following expenditures in purchasing a truck
Cash price = $23,030
Accident insurance during use= $1,690
Sales tax= $1,380
Motor vehicle license= $670
Painting and lettering= $2,140
Therefore, the cost of the truck can be calculated as follows
= $23,030+$1,380+$670+$2,140
= $27,220
The accident insurance is not added to find the cost of the truck because it doesn't add any value and can happen again the following year.
Hence the cost of the truck is $27,220
Depletion Entries Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the current year, 4,000,000 tons were mined and sold. a. Determine the amount of depletion expense for the current year. Round the depletion rate to two decimals places. $ b. Journalize the adjusting entry on December 31 to recognize the depletion expense. Dec. 31
Answer:
a. $ 9,000,000
b.
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
Explanation:
The depletion expense is calculated using the formula :
Depletion expense = Cost of Asset / Estimated total contents in units × Number of units taken in the period
= $67,500,000 / 30,000,000 tons × 4,000,000 tons
= $ 9,000,000
The entry to recognize the depletion expense will be :
Depletion Expense $ 9,000,000 (debit)
Accumulated Depletion $ 9,000,000 (credit)
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 700,000 units are expected to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated: Department 1 Department 2
Manufacturing overhead costs $3,141,500 $1,571,000
Direct labor hours 167,000 DLH 267,000 DLH
Machine hours 267,000 MH 192,000 MH
a. $10.86 per unit
b. $8.73 per unit
c. $4.22 per unit
d. $11.77 per unit
e. $10 per unit
Answer:
$7.70 per unit
Explanation:
For computing the overhead rate per unit we first need to compute the estimated amount which is as follows
Total manufacturing cost
= Department 1 + department 2
= $31,41,500.00 + $15,71,000.00
= $47,12,500.00
Total machine hours
= Department 1 + department 2
= 267,000 MH + 192,000 MH
= 459000 MH
Now predetermined overhead rate is
= Total manufacturing cost ÷ Total machine hours
= $4,712,500 ÷ 459,000 MHs
= $10.27 per MH
Now overhead per unit is
= Pre-determined overhead rate per MH × Machine Hours required per unit
= $10.27 per MH × 0.75 MHs per unit
= $7.70 per unit
This is the answer but the same is not provided in the given options
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $302,000 and in Allowance for Uncollectible Accounts of $640 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. Bad debt expense for the year should be:
Answer:
$870
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Allowance for uncollectible accounts at 5%
= 5% * $302,000
= $1,510
Since the Allowance for Uncollectible Accounts was $640 (credit) before any adjustments, the bad debt expense for the year
= $1,510 - $640
= $870
Edison has just paid an annual dividend of $3 per share. If the expected growth rate for Con Ed is 10%, and your required rate of return is 16%, how much are you willing to pay for this stock
Answer:
$55 per share
Explanation:
This can be calculated using the dividend discount model (DDM) formula as follows:
P = D1/(r - g) ............................ (1)
Where,
P = Current stock price or the amount you are willing to pay today
D1 = Next dividend = Current dividend * (1 + Growth rate) = $3 * (1 + 0.10) = $3.30
r = required return = 16%. or 0.16
g = growth rate = 10% = 0.10
Substituting the values into equation (1), we have:
P = $3.30 / (0.16 - 0.10) = $55 per share
Therefore, you are willing to pay $55 per share for this stock.
During her lifetime, Betty accumulated a large quantity of registered gold coins totaling over $500,000 in value. Betty began to see the sun setting in the waning years of her life and began making plans to dispose of her assets among her beloved children. Part of her plans was to give her collection of coins to her favorite son, Carlos, who at the time was performing mission work deep in the jungles of South America. Betty executed and filed a registration of transfer of the coin collection to Carlos. She then attempted to contact Carlos on his satellite phone and called his last known location to advise him of the transfer, but she was unable to contact him. The best she could do was to leave Carlos multiple messages. One month later, Betty passed away without ever hearing from Carlos. Betty's will was read, and it was discovered that the language in the will bequeathed all of her coins to her daughter, Carey. Carey took possession of the registered gold coins. If you were Carlos, how would you convince Carey to give you the coins after returning from your trip
Answer:
Show the messages sent by Betty to me before her death
Explanation:
In law, believable evidence could take several forms which includes providing a written "proof of intent". Carlos can argue that the messages received from Betty explicitly shows are wishes–that he receives a collection of her coins, thus the transfer of ownership was implicitly binding.
Carey's reading of the multiple messages evidently provides convincing evidence that she has not fulfilled the will of her death mother, thus Carlos can use her emotional attachment of fulfilling mother's wishes by pressurising her to give him the coins.
Carlos can convince Carey to give him the coins after returning from trip by
showing her the multiple messages sent from Betty and confirming with
the appropriate authority.
What is Registration of transfer?Thus is a document which confirms that an asset or property has been
transferred to a new owner.
In this scenario, she was unable to reach him but left messages which is an
evidence about the transfer of the coins. The appropriate authority should
also be contacted to confirm if the transfer of the coins was appropriately
done.
Read more about Transfer here https://brainly.com/question/523607
Five years ago you took out a 30-year mortgage with an APR of 6.5% for $200,000. If you were to refinance the mortgage today for 20 years at an APR of 4.25%, how much would your monthly payment change by?
Answer:
-$104.79
Explanation:
Current Mortgage Payment:
P/Y = 12,
N = 360,
I/Y = 6.5,
PV = $200,000,
Solve
for PMT = $1,264.14
Current Mortgage Balance:
P/Y = 12,
N = 300,
I/Y = 6.5,
PMT = $1,264.14,
Solve
for PV = $187,221.9
New Mortgage Payment:
P/Y = 12,
N = 240,
I/Y = 4.25,
PV = $187,222.54,
Solve
for PMT = $1,159.35
Current Payment - New Payment
= $1,159.35- $1,264.14
= -$104.79
For much of the 1990s, the U.S. economy was experiencing long-run economic growth, low unemployment, and a stable inflation rate. Which of the following would give rise to these outcomes?
Choose one:
A. an increase in aggregate demand and short-run aggregate supply
B. a decrease in aggregate demand and short-run aggregate supply
C. a decrease in aggregate demand and an increase in short-run aggregate supply
D. an increase in aggregate demand and a decrease in short-run ag
Answer: A. an increase in aggregate demand and short-run aggregate supply.
Explanation:
An increase in Aggregate Demand is synonymous with an increase in Economic growth as it meant that companies would try to produce more goods and services to match this demand thereby increasing the production capacity of the Economy . In order to do so however, they needed to hire more people and so the unemployment rate decreased. As more people were employed, more people were able to earn an income and then demand more goods and services which led to a sort of Economic growth cycle.
As demand for goods kept rising, so did the cost of those goods as posited by the Law of Demand and this was what led to the stable rate of inflation.
On October 1, 2022, Sheridan Company places a new asset into service. The cost of the asset is $81000 with an estimated 5-year life and $21000 salvage value at the end of its useful life. What is the depreciation expense for 2022 if Sheridan Company uses the straight-line method of depreciation
Answer:
the depreciation expense for 2022 is $3,000
Explanation:
Straight line method of depreciation charges a fixed amount of depreciation over the period of use of an asset.
Depreciation Expense = (Cost - Residual Value) / Number of useful life
= ($81000 - $21000) / 5
= $12,000
The Annual depreciation charge for this machine will be $12,000 for each of the years that it is used in the business.
However since it was paced in use during the year that is 1 October, we have to apportion the Annual charge withe number of months that its has been in use during 2022.
It has been used for 3 months thus depreciation charge is :
Depreciation = 3/ 12 × $12,000
= $3,000
There are many distinct characteristics that classify a market as Perfectly Competitive including: Very large number of firms Homogenous products Entry and exit into the market free of barriers Perfect Information Individual firms are price takers Long run economic profits will be zero Instructions Given these characteristics of a perfectly competitive market, select one of the characteristics listed. In your post: Fully explain what that characteristic means and what its importance is to classifying a market as perfectly competitive. If you have noticed this characteristic in a certain market, explain where you have seen it before or provide your own example. Would you see the characteristic you are discussing in any of the other three market structures - monopolistic competition, oligopoly or monopoly
Answer:
Characteristics of a Perfectly Competitive Market
One of the characteristics is the presence of many firms:
In a perfectly competitive market or industry, there is a large number of small firms producing homogeneous, identical, and unbranded products. As they are small in comparison to the overall market size, no single firm is able to exert market control over the price or quantity at which the firms sell to the buyers. In such a market, all the characteristics of a perfectly competitive market are present. Buyers and sellers have perfect knowledge of the product, prices, quantity, information, and technology. Under this scenario, if one firm doubles its production or stops production entirely in order to influence the market indexes, the market remains unaffected. With this, the price remains constant. There is no scarcity or surplus. The demand curve is always in equilibrium. There is no elasticity of price, since there is no change in the price of the product. Unfortunately, there is no market that is perfectly competitive. It is only an ideal situation. A close resemblance to this market is in the market for salt, because of the relatively cheap prices of salt. But, many firms have branded their products so differently that consumers make choices, but firms have not been able to influence the market. Unfortunately, this characteristic of perfectly competitive market is not present in the other three markets: monopolistic competition, oligopoly, or monopoly given their own basic characteristics.
Explanation:
A perfectly competitive market or industry has large number of small firms, with no exit or entry barriers. There is perfect knowledge of the market so that buyers and sellers have equal access to information. The goods in such a market is so identical that firms do not brand their goods to look different from others. As earlier mentioned, this type of market exists in the ideal world. Other market types are monopolistic competition, oligopoly, and monopoly. There are practical examples of the existence of such markets in the world.
ABC stock is currently trading at an all-time high price of $150 per share. Your client contacts you about the stock, stating that he believes that the stock is ripe for a sell off after its next quarterly news announcement. He has $10,000 to use for a trade, but does not want to lose more than this amount. The BEST recommendation to the client is to:
Answer:
Buy ABC Puts
Explanation:
Based on the information provided within the question it can be said that the best recommendation to the client is to Buy ABC Puts. This is mainly due to the fact that the client specifically stated that he does not want to lose more than this investment. Therefore Puts are the best option since they are purchased as a speculation on a market price decline, and the customer can only lose the premium paid if the market does the opposite and ends up rising. While other options like shorting or selling can lead to unlimited loss potential.
Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Samtech made the following expenditures in connection with the purchase of the land and building: Title insurance $ 34,000 Legal fees for drawing the contract 9,000 Pro-rated property taxes for the period after acquisition 54,000 State transfer fees 5,800 An independent appraisal estimated the fair values of the land and building, if purchased separately, at $3.5 and $1.5 million, respectively. Shortly after acquisition, Samtech spent $100,000 to construct a parking lot and $58,000 for landscaping. Required: 1. Determine the initial valuation of each asset Samtech acquired in these transactions. 2. Determine the initial valuation of each asset, assuming that immediately after acquisition, Samtech demolished the building. Demolition costs were $430,000 and the salvaged materials were sold for $6,500. In addition, Samtech spent $97,000 clearing and grading the land in preparation for the construction of a new building.
Answer:
1)
total price $4,000,000
if purchased separately, land was worth $3,500,000 and building $1,500,000.
cost of land:
70% x $4,000,000 purchase cost = $2,800,000
70% x $34,000 title insurance = $23,800
70% x $9,000 legal fees = $6,300
70% x $5,800 state transfer fees = $4,060
total cost of land = $2,834,160
cost of building:
30% x $4,000,000 purchase cost = $1,200,000
30% x $34,000 title insurance = $10,200
30% x $9,000 legal fees = $2,700
30% x $5,800 state transfer fees = $1,740
total cost of land = $1,214,640
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
2)
cost of land:
$4,000,000 purchase cost
$34,000 title insurance
$9,000 legal fees
$5,800 state transfer fees
$430,000 demolition costs
- $6,500 sale of salvaged value
$97,000 land grading
total cost of land = $4,569,300
cost of building = $0
Property taxes for the period after acquisition are expenses and cannot be capitalized. Landscaping and parking lots are reported separately because they have different useful lives than the building.
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Fixed overhead 34.00
Total $163.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
Answer:
If the company buys the units, income will decrease by $1,000.-
Explanation:
Giving the following information:
Direct materials $54.00
Direct labor 35.00
Variable overhead 40.00
Crayola Technologies Inc. has contacted Rubium with an offer to sell 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal.
First, we need to determine the total cost of making the units:
Total cost= total variable costs + avoidable fixed costs
Total costs= (54 + 35 + 40)*6,000 + 89,000= $863,000
Now, the cost of buying:
Total cost= 6,000*144= $864,000
If the company buys the units, income will decrease by $1,000.-
Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are $55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are $15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units
Answer:
210 hours
Explanation:
The learning curve rate can be found by log75%
Ln0.75 = 0.12249
1 batch requires 200 hours
The 1500 units batch will require 200 hours
For 3000 units there will be two batches of 1500 units each
200 hours * 2 batches * 0.12249 * 4.5 = 210 hours
The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $9. The net cash provided by (used in) investing activities for the year was:
Answer:
The net cash provided by (used in) investing activities for the year was: $ 0
Explanation:
Investing Activities consists of activities that result from Purchase or Sale of Capital expenditure items.
Types of Capital expenditure items are Machinery, Equipment, Plant or any Non-Current assets that is used by the company.
The question you provided does not have any purchase or sale of the Property, Plant and Equipment items. So no cash movement from Investing Activities during the period.
Blythe and Cali do business as Diamond Investments. In acting on the firm's behalf,Blythe makes an honest error in overestimating the value of a particular stock purchase. To her firm,Blythe is:__________.
A) liable for breach of the duty of care.
B) liable for breach of the duty of accounting.
C) liable for breach of the duty of accounting.
D) not liable.
Answer:
D) not liable.
Explanation:
Duty of Care is the legal expectation from individuals and businesses in the course of discharging their duties, not to engage in conduct that could be foreseen to predispose others to danger or harm. The Duty of Accounting or accounting responsibility requires an accurate record of transactions. Liability implies being legally answerable. In business transactions, businessmen owe it to their customers to provide their services and products in the best possible way so as to prevent causing harm to them. Employees also owe it to the organization they work for to discharge their duties carefully to avoid causing them loss.
Blythe's honest error in overestimating the value of a particular stock purchase is a mistake that anyone can make and can be easily corrected. Her company would not go the long route of taking her to court over such a mistake. Therefore, Blythe is not liable to her company.
1. Because of sanctions over their involvement in Ukraine in 2014, the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%. What affect does this have on the exchange rate for the Russian Rubble versus the Euro
Answer:
This would make the rubble more attractive than the euro when investing.
Explanation: The effects of this increase in interest rate, is it would make it more expensive when planning on borrowing money in Russia. Which would make the rubble more attractive than the euro from an investors or investment part, as more money can be made when euro is converted back to rubble. This would help drive up the cost of rubble.
. Nestle Co. paid $130,000 for a machine used to mill oats. The annual contribution margin from oat sales is $60,000. The machine could be sold for $80,000. The opportunity cost of producing the oats is ________. Question 20 options: $130,000 $0 $80,000 $20,000 $60,000
Answer:$80,000
Explanation:
Opportunity cost refers to an alternative forgone that is the value one could have received but declined to take the next best alternative according to his or her preference.
Here , Nestle has two choices to make, it can decide to produce oats or sell the machine, but taking the option of producing oats leaves the option of selling the machine at $80,000 as the Opportunity cost.
Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020–2023 are as follows:
Service Revenue Collections Pretax Accounting Income
2015 $560,000 $545,000 $100,000
2016 660,000 665,000 165,000
2017 625,000 600,000 135,000
2018 610,000 635,000 115,000
There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.
Required:
a. Prepare the appropriate journal entry to record Alsup's 2013 income taxes.
b. Prepare the appropriate journal entry to record Alsup's 2014 income taxes.
c. Prepare the appropriate journal entry to record Alsup's 2015 income taxes.
Answer:
Alsup ConsultingIncome Taxesa. Journal Entries for 2015:
Debit Income Tax Expense $40,000
Credit Income Tax Payable $34,000
Credit Deferred Tax Liability $6,000
To record the income tax for the year.
b. Journal Entries for 2016:
Debit Income Tax Expense $66,000
Debit Deferred Tax Asset $2,000
Credit Income Tax Payable $68,000
To record the income tax for the year.
c. Journal Entries for 2017:
Debit Income Tax Expense $54,000
Credit Income Tax Payable $44,000
Credit Deferred Tax Liability $10,000
To record income tax for the year.
d. Journal Entries for 2018:
Debit Income Tax Expense $46,000
Debit Income Tax Payable $56,000
Credit Deferred Tax Asset $10,000
To record income tax for the year.
NB: There is confusion with the years in the question. So, I decided to give the journal entries for the four years.
Explanation:
a) Service Collections Pre-tax Tax Temporary
Revenue Accounting Income Differences
Income
2015 $560,000 $545,000 $100,000 $85,000 ($15,000)
2016 660,000 665,000 165,000 170,000 5,000
2017 625,000 600,000 135,000 110,000 (25,000)
2018 610,000 635,000 115,000 140,000 25,000
b) Accounting Tax Temporary Differences
Income Tax Income Tax Income Deferred Tax
2015 $100,000 $40,000 $85,000 $34,000 ($15,000) ($6,000) L
2016 165,000 66,000 170,000 68,000 5,000 2,000 A
2017 135,000 54,000 110,000 44,000 (25,000) (10,000) L
2018 115,000 46,000 140,000 56,000 25,000 (10,000) A
c) The temporary difference between taxes as per accounting income and taxes as per tax regulation is recorded in the books through Deferred tax asset or deferred tax liability. When accounting income is more than tax income it would imply more taxes need to be paid in future, so a deferred tax liability account is created.
d) Tax Computations: The prevalent tax rate of 40% is multiplied with the pre-tax accounting income, the pre-tax taxable income, and the temporary differences in income respectively to obtain their respective taxes. Ordinarily, the differences in the tax amounts of accounting income and taxable income is deferred tax asset/liability. The deferred tax asset and liability can still be obtained separately as we have done in this case. They give the same results.
Ronald is an assistant librarian at the local public library but hopes to be able to become a head librarian in the near future. For him to accomplish this, he must move to another location. To help him find openings in other locations, he has joined the American Library Association and will be attending their national conference next month. He is excited about meeting and talking with fellow librarians about their jobs across the United States. This is an illustration of
Answer:
Ronald, the Librarian
What Ronald is doing "is an illustration of" Networking in practise.
Explanation:
According to investopedia.com, "Networking is the exchange of information and ideas among people with a common profession or special interest, usually in an informal social setting. Networking often begins with a single point of common ground."
The advantages of networking include, strengthening connections through information sharing, acquisition of fresh ideas, knowledge, and perspectives, avenue for career advancement and access to job opportunities, and the reception of career advice and support. It also builds one's confidence through the process of interaction with more knowledgeable professionals. Those who seek, find. And "iron sharpens iron," as people rob minds.
Networking also helps to develop and improve skill set, stay on top of the latest trends in your industry, keep a pulse on the job market, meet prospective mentors, partners, and clients, and gain access to the necessary resources that will foster your career development.
Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $9.22 per slice, $106.00 as monthly rental and $55.00 monthly as insurance. A restaurant sells pizza at a rate of $14.22/slice. How many slices should the restaurant sell in a month to break even?
Answer:
Break-even point in units= 32 slices
Explanation:
Giving the following information:
Selling price= $14.22
Unitary variable cost= $9.22
Fixed costs= 106 + 55= $161
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 161/ (14.22 - 9.22)
Break-even point in units= 32 slices
To calculate return on assets (ROA), the numerator will include which of the following? a. net income plus tax expense b. net income plus interest expense c. net income minus preferred dividends d. net income
Answer:
d. net income
Explanation:
The formula to compute the return on assets is as follows
Return on assets = Net income ÷ Total assets
Or
Return on assets = Net income ÷ Average of total assets
As the case maybe
By dividing the net income from the total assets or average of total assets we can get the return on assets and the same is to be considered
hence, the correct option is d. net income
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. In the Microsoft Excel Online file below you will find a sample of production volumes and total cost data for a manufacturing operation. Conduct a regression analysis to explore the relationship between total cost and production volume and then answer the questions that follow.Production Volume Total Cost
(Units) ($)
400 4,000
450 5,000
550 5,400
600 5,900
700 6,400
750 7,000
1. Use the data to develop an estimated regression equation that could be used to predict the total cost for a given production volume.
2. What is the variable cost per unit produced
3. Compute the coefficient of determination what percentage of the variation in total cost can be explained by production volume
4. The companys production schedule shows 500 units must be produced next month what is the estimated total cost of this operation.
Answer:
(1) [tex]\text{Total Cost}=1246.67+7.60\ \text{Volume}[/tex]
(2) The variable cost per unit produced is $7.60.
(3) The coefficient of determination is 0.96 or 96%.
(4) The estimated total cost is $5,046.67.
Explanation:
A regression analysis for the provided data is performed on Microsoft Excel.
The output is attached below.
(1)
The estimated regression equation that could be used to predict the total cost for a given production volume is:
[tex]\text{Total Cost}=1246.67+7.60\ \text{Volume}[/tex]
(2)
The variable cost per unit produced is given by the slope of the line.
The slope of a regression line represent the value of the dependent variable for one unit of the independent variable.
So, the variable cost per unit produced is $7.60.
(3)
Consider the regression output attached.
The coefficient of determination is 0.96 or 96%.
This implies that the percentage of the variation in total cost that can be explained by production volume is 96%.
(4)
For Volume = 500 units predict the total cost as follows:
[tex]\text{Total Cost}=1246.67+7.60\ \text{Volume}[/tex]
[tex]=1246.67+(7.60\times 500)\\\\=1246.67+3800\\\\=5046.67[/tex]
Thus, the estimated total cost is $5,046.67.