The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Inventory, June 30 $ Cost of goods sold $ 2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system. Inventory, June 30 $ Cost of goods sold $ 3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar. Inventory, June 30 $ Cost of goods sold $ 4. Compare the gross profit and June 30 inventories using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign. FIFO LIFO Weighted Average Sales $ $ $ Cost of goods sold Gross profit $ $ $ Inventory, June 30 $ $ $

Answers

Answer 1

Answer:

Dunne Co.

1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system:

a) Inventory, June 30  = $32,864 (26 x $1,264)

b) Cost of goods sold = Cost of goods available for sale - Ending Inventory = $310,776 ($343,640 - $32,864)

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system:

a) Inventory, June 30 =  $

Beginning Inventory 25 units at $1,200 = $30,000

Purchase on April 8, 1 unit at $1,240              1,240

Total Ending Inventory                              $31,240

b)Cost of goods sold = Cost of goods available for sale - Ending Inventory

= $311,400 ($343,640 - $32,240)

3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar:

a) Inventory, June 30 = $32,489.60 (26 x $1,249.60)

b) Cost of goods sold = $311,150.40 (249 x $1,249.60)  

4. Compare the gross profit and June 30 inventories using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

                                     FIFO                  LIFO         Weighted Average

Sales                            $525,250         $525,250         $525,250

Cost of goods sold         310,776              311,400              311,150

Gross profit                  $214,474           $213,850           $214,100

Inventory, June 30       $32,864             $31,240           $32,489.60

Explanation:

a) Purchases and Sales Data:

Date     Transaction     Number of Units    Per Unit       Total

                                       In        Out                                 Cost      Sales

Apr. 3    Inventory          25                       $1,200     $30,000

      8     Purchase          75                         1,240        93,000

     11     Sale                               40          2,000                          80,000

    30    Sale                               30          2,000                          60,000

May 8   Purchase          60                       1,260         75,600

     10   Sale                               50          2,000                         100,000

     19   Sale                               20          2,000                          40,000

    28   Purchase          80                       1,260       100,800

June 5 Sale                              40          2,250                          90,000

     16   Sale                              25          2,250                         56,250

     21   Purchase          35                      1,264        44,240

    28   Sale                              44          2,250                         99,000

b) Goods Available     275                                 $343,640

Cost of goods sold    249                                                   $525,250

Ending Inventory         26

c) Average cost of goods = Cost of goods available for sale/Quantity of goods available for sale = $343,640/275 = $1,249.60

d) FIFO, LIFO, and Weighted Average Costing Method under the periodic inventory system assume that 1) FIFO, the goods bought first are sold first; 2) LIFO, the goods bought last are sold first; and 3) Weighted Average, the cost of goods is the weighted average, and lastly that it is only when physical count is taken of inventory that one can estimate its value.  Unlike the perpetual inventory system, the periodic must wait till the end of a financial period to value stock.  The results for ending inventory under the weighted average method, using the perpetual inventory system differs from the results under the same method, using the periodic inventory system.

Answer 2

The question is about inventory costing.

FIFO

Total Sales $525,250

Cost of Goods Sold $310,776

Gross Profit $214,474.

Ending Inventory as on June 30th 26 units $32,864

LIFO

Total Sales $525,250

Cost of Goods Sold $311,400

Gross Profit $213,850

Ending Inventory as on June 30th 26 units $31,240

AVCO / Weighted Average

Total Sales $525,250

Cost of Goods Sold $311,150

Gross Profit $214,100

Ending Inventory as on June 30th 26 units $32,490

Highest Gross profit is $214,474 in FIFO

Lowest Ending Inventory is $31,240 LIFO

Highest Ending Inventory is $32,864 FIFO

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Related Questions

Vargas Company uses the perpetual inventory method. Vargas purchased 800 units of inventory that cost $9.00 each. At a later date the company purchased an additional 1,200 units of inventory that cost $10.00 each. Vargas sold 900 units of inventory for $13.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

Answers

Answer:

$8200

Explanation:

FIFO means first in first out. It means that it is the first purchased inventory that is the first to be sold.

The cost of the 900 units sold, would be:

800 x 9 = $7200

100 × $10 = $1000

Total = $8200

I hope my answer helps you

The company can choose to buy a back-up machine for Step C for an additional $20,000. The back up would also have a reliability of 0.915, just like the one that is presently used. If they decide to get this back-up machine, what will the new reliability of the system be? Assume that once a machine malfunctions, the process continues to produce product, acceptable and defective. Use THREE decimal places in you calculations.

Answers

The complete question is:

A certain company produces 10,000 tables per year in a three-step process. The three steps in the process employ machines with the reliabilities listed here:

Step A - 0.987 Step B – 0.979 Step C – 0.915

Answer:

New reliability= 0.9593 ~ 0.959

Explanation:

Reliability is used in manufacturing process to ensure that a process produces the same level of output consistently. A process is reliable if it achieves the same results everytime.

Reliability can be applied to individuals, data, processes, and products.

In this instance we are to calculate the new reliability of the backup system.

Reliability of step C is 0.915

New reliability= 1 - (1- 0.915)^2

New reliability= 0.992775

Multiply this value by the reliability in step A and B to get system reliability

System reliability= 0.992775 * 0.987 * 0.979

System reliability= 0.9593

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 2.10 ounces $15.00 per ounce $31.50
Direct labor 0.80 hours $15.00 per hour 12.00
Variable manufacturing overhead 0.80 hours $3.50 per hour 2.80
Total standard cost per unit $46.30

During November, the following activity was recorded, relative to production of Fludex:

a. Materials purchased, 9,420 ounces at a cost of $49,926.
b. There was no beginning inventory of materials; however, at the end of the month, 1,600 ounces of material remained in ending inventory.
c. The company employs 40 lab technicians to work on the production of Fludex. During November, they worked an average of 61.50 hours at an average rate of $12.30 per hour.
d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,658.
e. During November, 4,600 good units of Fludex were produced.


The company's management is anxious to determine the efficiency of the Fludex production activities.

Required:

1. For direct materials used in the production of Fludex, compute the price and usage variances.
2. For direct labor employed in the production of Fludex, compute the price and usage variances.

Answers

Answer:

1)

direct materials price variance = actual quantity x (actual price - standard price)

direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable

direct materials usage variance = standard price x (actual usage - standard usage)

direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable

2)

direct labor price variance = actual hours x (actual rate - standard rate)

direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable

direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)

direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable

During Bruce Company’s first year of operations, the company purchased $4,300 of supplies. At year-end, a physical count of the supplies on hand revealed that $1,825 of unused supplies were available for future use. How will the related adjusting entry affect the company’s financial statements?

Answers

Answer:

Supplies Used = $2475

Explanation:

Bruce Company

Supplies Purchases $4,300

Supplies on hand  $1,825

Supplies Used = $ 4300- $ 1825 = $2475

The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.

The relating adjusting entry will be

Supplies Expense $ 2475 Debit

Supplies Account $ 2475 Credit

This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.

Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock. The land is subject to a $45,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?

Answers

Answer: $15,000

Explanation:

From the question, Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation's stock and that the land is subject to a $45,000 liability, which the corporation assumes.

The amount of gain that Carl must recognize as a result of this transaction will be the difference between the liability the land is subjected to which is $45,000 and the basis of the land which is $30,000.

= $45,000 - $30,000

= $15,000

Beginning and ending work in process inventories are negligible, so they are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors. Determine the cost per case for each of the four flavors. Round your answers to two decimal places.

Answers

Answer and Explanation:

The cost per case for each of the four flavors are shown below:

Particulars                    Orange    Cola Lemon Lime Root Beer

Total Cost Transferred

to finished goods (a)  $19,125       $391,800  $324,000 $36,000

No. of Cases (b)              2,500        60,000  50,000         4,000

Cost Per Case

(a ÷ b)                                $7.65         $6.53   $6.48           $9

By dividing the total cost from the number of cases we can get the cost per case for each of the four flavors

On June 1, 2017, Larkspur sold 100 washer/dryer units without installation to Laplante Rentals for $69,000. Laplante is a newer customer and is unsure how this product will work in its older rental units. Larkspur offers a 60-day return privilege and estimates, based on prior experience with sales on this product, 4% of the units will be returned. Prepare the journal entries for the sale and related cost of goods sold on June 1, 2017.

Answers

Answer:

The journal entries to record the sale on June 1 are:

June 1, 2017, 100 units of washer/dryer to Laplante Rentals

Dr Cash 69,000

    Cr Sales revenue 69,000

Dr Cost of goods sold 40,000

    Cr Inventory 40,000

If the next question asks to record the return privilege and estimates, it should be recorded as both an asset (estimated returns inventory) and a liability (customer refunds payable).  

There are four factors contributing to successful VENTURE: Opportunity, Resource, Entrepreneur and Organizations (OREO). Which one do you think is more important than other (1

Answers

Answer:

Four Factors for Successful Venture

The most important among them is Entrepreneur.

Explanation:

An Entrepreneur is the person or entity which galvanizes the other factors.  He or she captures the opportunity with the resources he can mobilize within an organizational setting that he arranges.  So, success depends on him or her and not the others.

Opportunity cannot seize itself, though it is important for success.  Without opportunity to deploy resources, the best entrepreneur will be engaging in an exercise in futility.  One cannot capture opportunities without deploying some resources, human, financial, and knowledge.  To make a success of the whole venture, there must be a kind of organization.  It is organization that organizes resources to seize opportunities.  But, organization cannot operate on itself.  It must be led by somebody, who is called the Entrepreneur.  He or she is the mover and shaker of these factors and therefore, the most important.

Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in the process at the beginning of production.

Answers

Answer:

37,000 units

Explanation:

The computation of the total equivalent units for direct material is shown below:

= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process, July 1

= 37,500 units + 3,500 units - 4,000 units

= 41,000 units - 4,000 units

= 37,000 units

We simply applied the above formula so that the total equivalent units for direct materials could come

Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $ 833 comma 000 Sale price per unit 60 Variable cost per unit 30 If the company spends an additional $ 30 comma 000 on​ advertising, sales volume would increase by 2 comma 500 units. Before the​ change, the​ company's sales level exceeds the breakeven point. What effect will this decision have on the operating income of​ Titanic? A. Operating income will decrease by $ 45 comma 000. B. Operating income will increase by $ 45 comma 000. C. Operating income will increase by $ 75 comma 000. D. Operating income will increase by $ 150 comma 000.

Answers

Answer: B. Operating income will increase by $ 45,000

Explanation:

Total fixed cost = $833,000

Sale price per unit = 60

Variable cost per unit = 30

Advertising = $30,000

Increase in sales volume = 2500

The contribution margin is the difference between the sales price per unit and the variable cost per unit.

= 60 - 30

= 30

Therefore, Hence the increase in the contribution margin will be:

= ($30 × 2500)=$75000

We then subtract the additional cost of $30,000 from $75,000. This will be:

= $75,000 - $30,000

= $45,000

Therefore, operating income will increase by $45,000

The Boxwood Company sells blankets for $ 37.00 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Product Z Units Cost May 01 Purchase 7 $15.00 May 10 Sale 5 May 17 Purchase 10 $16.00 May 20 Sale 8 May 23 Sale 3 May 30 Purchase 12 $24.00 Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.

Answers

Answer:

$128

Explanation:

The FIFO inventory system means first in , first out. It means that it is the first purchased inventory that is the first to be sold.

Under the perpetual system, the cost of goods sold Under the FIFO system would be taken from the most recent inventory purchase prior to the sale.

The most recent inventory purchase prior to the sale occurred on the 17th. The price at which the inventory was purchased on the 17th would be used to calculate the cost of goods sold

So the cost of goods sold = $16.00 × 8 = $128

I hope my answer helps you

Eight months ago, you purchased 400 shares of Winston stock at a price of $46.40 a share. The company pays quarterly difidents of $1.05 a share. Today, you sold all of your shares for $48.30 a share. What is your total percentage return on this investment

Answers

Answer:

Percentage return on investment= 8.62 %

Explanation:

Return on investment is the amount that an investor gains after investing in a particular business venture. Percentage return on investment is calculated as gain from a business venture divided by the initial investment.

Percentage return on investment= (Gain ÷ Initial investment) * 100

Gain on share price= 48.30 - 46.40 = $1.90

Gain from dividend= 2 * 1.05= $2.10

Total gain = 1.90 + 2.10 = $4

Therefore

Percentage return on investment= (4 ÷ 46.40) * 100

Percentage return on investment= 8.62 %

So the gain on initial investment of the 400 shares is 8.62%

Answer:

The total percentage return on this investment is 8.62%

Explanation:

Given the initial investment is 400 shares * 46.40 = $18,560 and the purchase of those shares were "eight month ago"

The company pays quarterly dividends of $1/05 per share. So, that in between 8 month, these are 2 Quarters

Thus Dividend amount= 400 * 1.05 * 2 Quarters= $840

Capital gains= Sales value - Purchase price

= 400 * 48.30 - 18,560

= 19,320 - 18,560

= $760

Therefore total percentage return on this investment will be derived by  (Dividend + Capital) / Initial Investment * 100

= (840 + 760)/18560 * 100

= 8.62%

In 2007, Joe Gebbia and Brian Chesky realized they could not afford the rent on their pricey San Francisco apartment, so they decided to put an air mattress in their living room and offer people an alternative to an expensive hotel room. This is the story of how Airbnb got started. In other words, Airbnb began when Gebbia and Chesky ________; the company grew because it ________.

Answers

Answer: c. Identified a problem or frustration; identified an opportunity or need

Explanation:

Airbnb began when the founders Joe Gebbia and Brian Chesky realized that they could not afford the rent on their San Francisco apartment. This was a problem for them and they needed to solve it. Another problem they realized was that people were having to pay for expensive hotel rooms. The common denominator here being that both places were pricey.

They then identified the opportunity or need that people needed to afford their rent and visitors needed to afford places to stay temporarily and then acted on this opportunity by putting an air mattress in their living room and offering people an alternative to an expensive hotel room.

Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information OBJECT for last year:Raw materials purchases Direct labor Depreciation on factory equipment Depreciation on building Depreciation on headquarters building Factory insurance Property taxes: Factory Headquarters Utilities for factory Utilities for sales office Administrative salaries Indirect labor salaries Sales office salaries Beginning balance, raw materials Beginning balance, work in process Beginning balance, finished goods Ending balance, raw materials Ending balance, work in process Ending balance, finished goods $250,000 140,000 45,000 30,000 50,000 15,000 20,000 18,000 34,000 1,800 150,000 156,000 90,000 124,000 124,000 84,000 102,000 130,000 82,000Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
1. Calculate the direct materials used in production for last year.
2. Calculate total prime cost.
3. Calculate total conversion cost.
4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
5. Prepare a cost of goods sold statement for last year.6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.

Answers

Answer:

Brody Company

1. Direct Materials Used in Production:

Beginning balance, raw materials  $124,000

Raw materials purchase                  250,000

Raw materials for production        $374,000

less raw materials, ending balance 102,000

Cost of Direct materials used     $272,000

2. Total Prime Cost:

Cost of Direct materials used     $272,000

Direct labor                                     140,000

Total Prime Cost                         $412,000

3. Total Conversion Cost:

Direct labor $140,000

Factor overheads:

Depreciation on factory equipment 45,000

Depreciation on building 30,000

Factory insurance 15,000

Property Taxes $20,000

Utilities for factory 34,000

Indirect labor salaries 156,000

Total Conversion Cost = $440,000

4. Cost of Goods Manufactured Statement:

Prime Cost                               $412,000

Conversion cost                      $440,000

Beginning Work in Process      124,000

less ending work in process   (130,000)

Cost of goods manufactured $846,000

Unit Product Cost = $846,000/100,000 = $8.46

5. Cost of Goods Sold Statement:

Cost of goods manufactured $846,000

Beginning finished goods          84,000

less ending finished goods      (82,000)

Cost of goods sold               $848,000

6. Income Statement                                                %

Sales Revenue                               $1,200,000      100

Cost of goods sold                             848,000        71

Gross Profit                                     $352,000        29

Operating Expenses:

Depreciation on building $50,000                           4

Property Taxes                    18,000                           1.5

Sales Office Utilities              1,800                         0.15

Administrative salaries     150,000                         12.5

Sales office salaries           90,000                          7.5

Sales Commission             60,000                           5

Total Operating Expenses              $369,800        31

Net Loss                                            ($17,800)     14.83

Explanation:

Raw materials purchases $250,000

Direct labor 140,000

Depreciation on factory equipment 45,000

Depreciation on building 30,000

Depreciation on headquarters building 50,000

Factory insurance 15,000

Property taxes:

Factory 20,000 and Headquarters 18,000

Utilities for factory 34,000

Utilities for sales office 1,800

Administrative salaries 150,000

Indirect labor salaries 156,000

Sales office salaries 90,000

Beginning balance, raw materials 124,000

Beginning balance, work in process 124,000

Beginning balance, finished goods 84,000

Ending balance, raw materials 102,000

Ending balance, work in process 130,000

Ending balance, finished goods  82,000

b) Sales Commission = $60,000 (5% of $1,200,000)

c) Prime cost is the cost of direct raw materials and direct labor.  Conversion cost includes the cost of direct labor and factory overheads.

1.The direct materials used in production for last year is $2,72,000.

2. The Total Prime Cost is $412,000.

3. The  Total Conversion Cost is $440,000.

4. The Cost of Goods Manufactured Statement is $8.46.

5. The Net Loss  of ($17,800) interest rate 14.83.

"Brody Company"

Answer 1:

The direct materials used in production for last year is :

                                                                   Amount    

Beginning balance, raw materials            $124,000

Add: Raw materials purchase                   $250,000

Add: Raw materials for production           $374,000

Add: raw materials, ending balance        ($102,000)

Cost of Direct materials                             $272,000

Answer 2:

The Total Prime Cost is :

Total Prime Cost= Cost of Direct materials+ Direct labor

Total Prime Cost= $272,000+  140,000

Total Prime Cost =$412,000

The Total Prime Cost is $412,000.

Answer 3:

The Total Conversion Cost is :

Direct labor $140,000

Factor overheads:

Depreciation on factory equipment 45,000

Depreciation on building 30,000

Factory insurance 15,000

Property Taxes $20,000

Utilities for factory 34,000

Indirect labor salaries 156,000

Total Conversion Cost = Direct labor+ Factor overheads:

Total Conversion Cost =   $140,000 +  3,00,000

Total Conversion Cost =   $440,000

Answer 4.

The Cost of Goods Manufactured Statement is :

Prime Cost                               $412,000

Conversion cost                      $440,000

Beginning Work in Process      124,000

less:  ending work in process   (130,000)

Cost of goods manufactured $846,000

Unit Product Cost = $846,000/100,000

Unit Product Cost  = $8.46

The Cost of Goods Manufactured Statement is $8.46.

Answer 5.

The Cost of Goods Sold Statement is :

Cost of goods manufactured $846,000

Beginning finished goods          84,000

less: ending finished goods      (82,000)

Cost of goods sold                  $848,000

Answer 6:

Income Statement                         Amount                  %

Sales Revenue                               $1,200,000      100

Cost of goods sold                             848,000        71

Gross Profit                                     $352,000        29

Operating Expenses:

Depreciation on building                $50,000           4

Property Taxes                                18,000             1.5

Sales Office Utilities                         1,800              0.15

Administrative salaries                   150,000           12.5

Sales office salaries                           90,000          7.5

Sales Commission                               60,000         5

Total Operating Expenses              $369,800        31

Net Loss                                            ($17,800)     14.83

Working Notes:

Sales Commission = $60,000 (5% of $1,200,000)

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If the economy booms, RTF, Inc., stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 72 percent while the probability of a recession is 28 percent. What is the variance of the returns on RTF, Inc., stock

Answers

Answer:

0.000988

Explanation:

For calculation of the variance of the returns on RTF, Inc., stock first we need to find out the expected rate of return which is shown below:-

Expected rate of return = (Boom percentage × Expected return) + (Recession percentage × Expected return)

= (0.72 × 0.11) + (0.28 × 0.04)

= 9.04%

The Variance of the returns = Boom percentage × (Expected return - Expected rate of return)^2 + Probability recession × (Expected return - Expected rate of return)^2

= 72% × (0.11 - 0.0904)^2 + 28% × (0.04 - 0.0904)^2

= 0.000988

A company rents a small building with 10,000 square feet of space for $100,000 per year. The rent is allocated to the company's three departments on the basis of the value of the space occupied by each. Department 1 occupies 1,500 square feet of ground-floor space, Department 2 occupies 3,500 square feet of ground-floor space, and Department 3 occupies 5,000 square feet of second-floor space. If rent for comparable floor space in the neighborhood averages $15.00 per sq. ft. for ground-floor space and $10 per sq. ft. for second-floor space, what annual rent expense should be charged to each department

Answers

Answer:

department 1: $18,000

department 2: $42,000

department 3: $40,000

Explanation:

total annual rent expense $100,000

total rented space 10,000 sq ft

first we must calculate the rental cost based on comparable floor space:

(1,500 x $15) + (3,500 x $15) + (5,000 x $10) = $22,500 + $52,500 + $50,000 = $125,000

now we allocate costs on the following proportion: $100,000 / $125,000 = 0.8

department        comparable rent        proportional cost         total    

1                              $22,500                      0.8                           $18,000

2                             $52,500                      0.8                          $42,000

3                             $50,000                      0.8                          $40,000

total                       $125,000                                                    $100,000

Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pool Activity Rate Setting up batches $ 59.71 per batch Processing customer orders $ 73.05 per customer order Assembling products $ 4.40 per assembly hour Data concerning two products appear below: Product K91B Product F65O Number of batches 92 63 Number of customer orders 42 56 Number of assembly hours 496 903 How much overhead cost would be assigned to Product K91B using the activity-based costing system

Answers

Answer:

Product K91B= $10,743.82

Explanation:

Giving the following information:

Activity Cost Pool Activity Rate

Setting up batches $ 59.71 per batch

Processing customer orders $ 73.05 per customer order

Assembling products $ 4.40 per assembly hour

Product K91B

Number of batches 92

Number of customer orders 42

Number of assembly hours 496

We were given the allocation rates, all we need to do is allocate based on actual allocation base:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product K91B= 59.71*92 + 73.05*42 + 4.4*496

Product K91B= $10,743.82

Proposed by Richard Hackman and Greg Oldham, ________ states that work has five core dimensions that impact employee satisfaction and productivity: skill variety, task identity, task significance, autonomy, and feedback.

Answers

Answer:

job characteristics model

Explanation:

The job characteristics model refers to the model in which it includes 5 characteristics  or attributes i.e variety of skills, the identity of task, significance or importance of task, autonomy and the feedback

Based on these factors the performance of employees could be analyzed via department wise, project wise, etc so that it became easy for the company to take the decision which employee should be beneficial or which is not

Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million

Answers

Answer and Explanation:

a. The estimation of the contribution margin for each segment is shown below:

                                                     (in millions)

Particulars            Investor Advisor             Services Services  

Income from

operations              $1,681                                  $1,660

Add:

Depreciation           $171                                     $154

Contribution

Margin                    $1,852                                  $1,814

2. Now the estimation of decline in operating income is

                                                   (in millions)

Particulars         Combined services          Institutional Services  

Revenues          $9,368                                $4,771

Less:

Variable cost    $5,702                                 $2,919

                    ($2,919 + $2,783)

Contribution

margin               $3,666                                 $1,852

Less:

Fixed cost         -$325                                    -$171

Net income        $3,341                                  $1,681

So according to the above calculations, the net operating income is declined by

= $3,341 - $1,681

= $1,660 million

The variable cost is come from

= Service revenues - income from operations - depreciation expense

For a Marketing course: What skills from this course would you use to create a three-paragraph promotional tool that explains the value of a chosen product and a sales pitch aimed at individual buyers

Answers

Answer:

After taking a Marketing Course, I should be armed with the following promotional skills:

Innovation Skills: It is expected that a marketing professional should be able to think differently, energise creativity in  the business and craft maverick ways of gaining the attention of the market and transform that attention to patronage.Market Development Skills: One is also expected to gain the ability to identify and articulate latent  customer needs (even before the customers become aware of them), spot socioeconomic  trends as well as technological  developments which create opportunities for the company as well as for the customer.Pricing Technology: Pricing is an art and a science. It involves accounting, economics and psychology. Marketing deals with the economics and psychology bit of it. Armed with this information, one is able to get into the mind of the individual buyers and them to firm up their buying decision.

Cheers!

To create a promotional tool that explains the value of a product and a sales pitch aimed at buyers, its characteristics and benefits could be cited, such as innovation, price and added benefits.

For a company to be well positioned in the market, it is necessary to create value for its consumers, which is identified from:

How much the customer is willing to pay for your products and services.

Marketing skills therefore must identify the strengths of the company and opportunities from the external environment, to satisfy consumer needs through:

IdentificationQualityAvailabilityCompatible priceBenefitsRelationship

Therefore, to create value, a company must reduce production costs or generate differentiation in order to be able to charge a premium price in relation to competitors.

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Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: An emotional one for the project team. An emotional one for the clients. One that is external and intellectual. One that is internal and intellectual.

Answers

Answer:

Many times, clients will shift new people into the project who have no experience with it as they move their key people to new challenges. This issue is: One that is external and intellectual.

Explanation:

External issues do not affect an entity obviously.  The clients shifting new people into projects and moving their key people to new challenges know why they must be doing so.  It may be to encourage organizational learning.  It may be because the key people have been promoted and need to move to higher positions.

Most importantly, it is the clients as entities that we should be concerned and deal with.  Clients like other organizational entities have systems, processes, and policies that they work with to produce results.  Their internal management should remain internal and not be externalized by overtly and overzealous outsiders.

On August 31,the balance sheet of La Brava Veterinary Clinic showed cash $9,000,Account receivable$1700,supplies $600,equipments $6000,account payable $3600,common stock $13,00 and retained earings $700. During september,the following transaction occur
1. paid $2900 cash for accounts payable
2. collected $1,300 of accounts receivable
3. purchased additional equipments for $2100,paying $800 in cash and the balance on account
4. recognized revenue of $7300 of which $1500 is collected in cash and balance due in october
5. declared and paid $400 cash dividend
6. paid salaries $1700 rent for september $900,and advertising expense $200
7. Incurred utilities expense for month on account $170
8. Received $10,000 from capital bank on 6 month note payable
a. prepare a tabular analysis of september transactions begin with august 31 balances.column headings: cash,account receivable,supplies,equipments,account payable,common stock,retain earnings with separate column for revenues,expenses,dividends.Including margin explanation changes in retain earnings. Revenue is called Service Revenueb. prepare an income statements for september,a retained earnings statements for september,and a balance sheet at september 30.

Answers

Answer:

Brava Veterinary Clinic

a) Tabular Analysis of September Transactions:

see attached.

b1) Income Statement for September:

Service Revenue  $7,300

Expenses:

Salaries      $1,700

Rent               900

Advertising   200

Utilities          170 ($2,970)

Net Income         $4,330

b2) Retained Earnings Statements for September

Net Income                               $4,330

Beginning Retained Earnings    $700

Dividends                                   ($400)

Ending Retained Earnings     $4,630

b3) Balance Sheet at September 30:

Assets:

Cash                                    $14,900

Accounts Receivable             6,200

Supplies                                    600

Equipment                              8,100

Total Assets                     $29,800

Liabilities + Equity:

Accounts Payable              $12,170

Common Stock                   13,000

Retained Earnings               4,630

Total Liabilities + Equity  $29,800

Explanation:

Financial Statements (Income Statement and Balance Sheet) are prepared at the end of a period to show the financial performance (Net Income) and the financial position (Assets = Liabilities + Equity) of a business entity.

A tabular statement of transactions illustrates the changes that have taken place during the period as a result of transactions.  Transactions affect the Assets and Liabilities and Equity equally.  The excess of revenue over expenses gives a net income.

Answer:

For a better visualization of the answer the first point was attached as an image.

Income Statement

Sales Revenues       7300

Salaries expense     (1700)

Rent Expense           (900)

Advertising Expense (200)

Utilities expense        (170)

Net Income             4,330

Retained Earnings  

Beginning   700

Income     4,330

Dividends   (400)

Ending      4,630

Balance Sheet

Cash                         14,900

Account Receivables 6,200

Supplies                        600

Current                      21,700

Equipment                   8,100

Total Assets               29,800

Liablities  

Account Payable 2,170

Note Payable     10,000

Total Liabilities   12,170

Equity

Common Stock    13,000

Retained Earnings  4,630

Total Equity           17,630

Total Liabilities + Equity 29,800

Explanation:

The dividends paid are not considered an expense.

We consider revenues and expense using the accrual basis rather than cash basis so we also recognize accrued expense (utilities ) and accrued revenues (sales which weren't paid right away)

For the Balance sheet the equipment is considered long.temr asset as their usefil life exceed a year.

The note payable while it is different from account payable is also a current liaiblity as it is due within the one-uyear window.

DS Unlimited has the following transactions during August. August 6 Purchases 78 handheld game devices on account from GameGirl, Inc., for exist240 each, terms 1/10, n/60. August 7 Pays exist440 to Sure Shipping for freight charges associated with the August 6 purchase. August 10 Returns to GameGirl eight game devices that were defective. August 14 Pays the full amount due to GameGirl. August 23 Sells 58 game devices purchased on August 6 for exist260 each to customers on account. The total cost of the 58 game devices sold is exist14, 145.37. Required: Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)

Answers

Answer:

August 6

DR Inventory $18,720

CR Accounts Payable $18,720

(To record purchase of goods for sale)

= 76 devices * $240

= $18,720

August 7

DR Inventory $440

CR Cash $440

(To record shipping costs of Inventory)

August 10

DR Accounts Payable $1,920

CR Inventory $1,920

(To record Purchase returns)

August 14

DR Accounts Payable $16,800

CR Inventory $168

CR Cash $16,632

(To record payment of purchases)

Working

Accounts Payable = Purchases - Returns

= 18,720 - 1,920

= $16,800

Inventory

Goods were purchased terms 1/10 meaning a 1% discount is goods paid for in 10 days.

= 1% * 16,800

= $168

August 23

DR Accounts Receivable $15,080

CR Sales Revenue $15,080

(To record sales of goods on account)

Sales Revenue = 58 devices * 260

= $15,080

August 23

DR Cost of Goods Sold $14,145.37

CR Inventory $14,145.37

(To record cost of Goods sold)

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2010, its first year of operations.

1. Use the following information about the company's adjustments to complete a 10- column work sheet for Dylan Delivery Company.

a. Unrecorded depreciation on the trucks at the end of the year is $40,000.
b. An additional $1,000 of salaries must be accrued at year-end.
c. The cost of unused office supplies still available at year-end is $2,000.

2. Prepare the year-end closing entries for Dylan Delivery Company, and determine the capital amount to be reported on its year-end balance sheet.


Account Title Debit Credit
Cash $16,000
Accounts receivable 34,000
Office supplies 5,000
Trucks 350,000
Accumulated depreciation—Trucks $80,000
Land 160,000
Accounts payable 124,000
Salaries payable 5,000
S. Dylan Capital 307,000
S. Dylan withdrawals 34,000
Delivery fees earned 263,000
Depreciation expense—Truck 40,000
Salaries expense 110,000
Office supplies expense 15,000
Repairs expense—trucks 15,000
Totals $779,000 $779,000

Answers

Answer:

Dylan Delivery Company

1. 10-Column Worksheet (see attachment)

2. Closing Journal Entries at December 31, 2010:

Date  Description                        Debit         Credit  

Depreciation expense - Truck    80,000  

Salaries Expense                         111,000  

Office supplies expense             18,000  

Repairs expense- trucks             15,000

Income Summary                                          224,000

To close expenses to the Income Summary.

Date  Description                        Debit         Credit

Income Summary                      263,000

Delivery fees                                                263,000

To close revenue to the Income Summary.

Date  Description                       Debit         Credit

Net Income                                39,000

Retained Earnings                                        39,000

To close the net income to retained earnings.

2b) Capital to be reported on balance sheet as at December 31, 2010:

S. Dylan Capital                 $307,000

Retained Earnings                39,000

S. Dylan withdrawals           (34,000)

Net Capital                        $312,000

Explanation:

a) A 10-column worksheet is a tool used by accountants to close the temporary accounts, after necessary adjustments, and then extract a balance sheet.  It comprises two columns (debit and credit) for each of the following: Unadjusted Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, and Balance Sheet.

b) A closing entry is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account to a permanent account.  The four basic steps in the closing process are: Closing the revenue accounts—transferring the credit balances in the revenue accounts to a clearing account called Income Summary. Closing the expense accounts—transferring the debit balances in the expense accounts to a clearing account called Income Summary.  Extracting a balance between the revenue accounts and the expense accounts, called the net income or loss.  Closing the net income or loss to the Retained Earnings.

Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week. The store sells several different brands of cereal. Which of the following statements is most likely true about Laura’s consumer behavior?a. Laura is brand loyal to the grocery store, but buys the same cereal store out of inertia.b. Laura’s commitment to the grocery store is high, and her commitment to the cereal brand is low.c. Laura’s is habituated to the grocery store, and her commitment to the cereal brand is low.d. Laura is a brand switcher and is susceptible to random influences in her choice of cereal.e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.

Answers

Answer: e. Laura is brand loyal to the brand of cereal she buys, but visits the same store out of inertia.

Explanation:

From the question, we are informed that Laura often goes to the only grocery store across the street from her apartment building and buys the same brand of cereal every week even though the store sells several different brands of cereal.

The most likely reason for this is that Laura loves that particular brand of cereal she buys maybe due to its packaging, taste, quality etc. So, in this case she is brand loyal to that particular brand of cereal as she won't like to buy or consume any other brand apart from that but she visits the same store out of inertia as its the only store across the street from her apartment building

If there were other stores, she could have gone into them but will still purchase the same brand of cereal.

You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,000 in two years. If you have an investment opportunity that guarantees 7% interest, how much must you invest to have the necessary funds to purchase the elliptical machines

Answers

Answer:

$19,215.65

Explanation:

To the determine the amount to be invested, we have to find the present value of $22,000 at 7%

P= FV ( 1 + r) ^-n

FV = Future value = $22,000

P = Present value

R = interest rate = 7%

N = number of years = 2

$22,000(1.07)^-2 = $19,215.65

I hope my answer helps you

Rihanna Company is considering purchasing new equipment for $578,500. It is expected that the equipment will produce net annual cash flows of $65,000 over its 10-year useful life. Annual depreciation will be $57,850. Compute the cash payback period.

Answers

Answer:

The answer is 8.9 years

Explanation:

Solution

Given that:

purchase of new equipment = $578,500

Net annual cash flows =$65,000

The useful life = 10 years

Annual depreciation = $57.850

Now, we have to compute the cash payback period which given below:

The payback period (cash) = cost of capital investment/net annual cash flows

=$578.500/$65,000

=8.9 years

The cash payback period is 8.9 years

Pizza is a normal good if the demand:__________
a. for pizza rises when income rises.
b. for pizza rises when the price of pizza falls.
c. curve for pizza slopes upward.
d. curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.

Answers

Answer:

a. for pizza rises when income rises.

Explanation:

A normal good is a good that people purchase more when their income increases and that have a lower demand when their income decreases, for example, clothing. According to this, the answer is that Pizza is a normal good if the demand for pizza rises when income rises.

The other options are not right because a normal good is determined by the way in which the demand of a product behaves when the income increases or decreases.

Prepare summary journal entries to record the following transactions for a company in its first month of operations.
1. Raw materials purchased on account, $86,000.
2. Direct materials used in production, $38,500. Indirect materials used in production, $23,000.
3. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor.
4. Paid cash for other actual overhead costs, $7,375.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $62,600.
7. Sold jobs on account for $90,000 g(2). The jobs had a cost of $62,600 g(1).

Answers

Answer:

1.

Raw Materials $86,000 (debit)

Accounts Payable $86,000 (credit)

2.

Work In Process : Direct Materials $38,500 (debit)

Work In Process : Indirect Materials $23,000 (debit)

Raw Materials $61,500 (credit)

3.

Work In Process : Direct Labor $38,000 (debit)

Work In Process : Indirect Labor $12,000 (debit)

Cash $50,000 (credit)

4.

Overheads $7,375 (debit)

Cash $7,375 (credit)

5.

Work In Process $47,500 (debit)

Overheads $47,500 (credit)

6.

Finished Goods $62,600 (debit)

Work In Process $62,600 (credit)

7.

Accounts Receivable $90,000 (debit)

Cost of Sales $62,600 (debit)

Sales Revenue $90,000 (credit)

Finished Goods $62,600 (credit)

Explanation:

The costs of manufacture are accumulated in the Work In Process Account as was shown above.

Note that only Applied Overheads not Overheads incurred are included in Work In Process Account.

The Costs of Goods Transferred is Eliminated from The Work In Process Account and Included in the Finished Goods Account.

Journal 7 Records Both the Revenue and Cost of Goods Sold on Account.

reonna Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment's 8-year useful life, and the present value of the lease payments is less than 90 % of the fair value of the assets leased. The annual lease payment is $41,000 at the beginning of each year, and Breonna's incremental borrowing rate is 8%, which is the same as the lessor's implicit rate. The agreement is properly classified as an operating lease. Assume the equipment is carried at a cost of $280,000 and the Straight-Line method for depreciation is used. In preparing the necessary journal entries for Falls Company (the lessor) for 2020, the "Leased Equipment" account should include a debit for depreciation expense of ___________. (Enter the answer with NO commas or dollar signs!)

Answers

Answer:

$35,000

Explanation:

Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).

Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000

Other Questions
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