Answer:
b) Mm-hmm, uh-uh, uh-huh.
Explanation:
Full verbatim can be regarded as a transcript which encompass absolutely everything that is been said by the speaker, or just exactly it has been said by the speakers. In this case all the "ums"as well as "uhs" and grammatical/ vocabulary mistakes are included. Therefore, correct form(s) of affirmation for Full Verbatim is here is Mm-hmm, uh-uh, uh-huh.
Answer:
lo siento mucho c r i e
Explanation:
Use the following information: Accounts receivable, beginning of year: $16,000 Allowance for Uncollectible Accounts, beginning of year: $1,200 Net credit sales during the year: $105,000 Collections on accounts receivable during the year: $93,000 Delinquent accounts written off during the year: $1,600 Assume all accounts have normal balances. If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for
Answer:
Bad debts expense is $ 2240
Explanation:
Given that;
Accounts receivable, beginning of year = $16,000
Allowance for Uncollectible Accounts, beginning of year = $1,200
Net credit sales during the year = $105,000
Collections on accounts receivable during the year = $93,000
Delinquent accounts written off during the year: $1,600
If bad debts are estimated to be 10% of ending accounts receivable, the adjusting entry to recognize bad debts would debit bad debt expense for;
Account Receivable, ending = ( Accounts Receivable, beginning + Net credit sales - Collections on account - Accounts written off )
Account Receivable, ending = ( $16,000 + $105,000 - $93,000 - $1,600 )
Account Receivable, ending = $ 26,400
Estimated accounts uncollectible = (26,400 × 10%) = 2640
Allowance for uncollectible accounts debit balance = ( 1600 - 1200) = 400
so
Bad debts expense = Estimated accounts uncollectible - Allowance for uncollectible accounts debit balance
we substitute
Bad debts expense = (26,400 × 10%) - ( 1600 - 1200)
Bad debts expense = 2640 - 400
Bad debts expense = $ 2240
Therefore, Bad debts expense is $ 2240
Suppose Dan’s cost of making pizzas is C(Q) = 4Q + (Q2/40), and his marginal cost is MC = 4 + (Q/20). Dan is a price taker. (a) What is Dan’s supply function? (b) What is Dan’s supply function if he has an avoidable fixed cost of $10? [HINT: Recall that Dan will not supply anything unless P > min AC(Q). So, as a first step, you need to find AC(Q) from C(Q). In part (a), finding min AC(Q) is easy and you should be able to do so just by looking at the formula for AC (Q). For part (b), you can find the minimum of AC by using the fact that AC(Q) = MC(Q) at the minimum point of AC.]
Answer:
(a) Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<4.
And S(P) = 20P- 80 If P≥4
(b) Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<5.
And S(P) = 20P- 80 If P≥5.
Explanation:
Note that the equations given in the question can be correctly stated as follows:
C(Q) = 4Q + (Q^2/40) .................. (1)
MC = 4 + (Q/20) ............................ (2)
Therefore, we can now proceed as follows:
(a) What is Dan’s supply function?
The upward portion of the MC curve is the supply function of Dan.
Equating equation (2) to P, we have:
P = 4+ (Q/20)
P- 4 = Q/20
Q = 20P -80
The shutdown rule is that P > AVCmin
AVC = C(Q) / Q .................. (3)
Substituting equation (1) into (3), we have:
AVC = ( 4Q + Q^2/40)/ Q
AVC = 4 + (Q/40) ............... (4)
Since MC cuts the AVC at its minimum, equations (2) and (4) are then equated to solve Q which is the output level at which AVC is minimum as follows:
4 + (Q/20) = 4 + (Q/40)
(Q/20) - (Q/40) = 4 - 4
(Q/20) - (Q/40) = 0
Q = 0
Substituting Q = 0 into equation (4), we have:
AVCmin = 4+ (0/40)
AVCmin = 4
This implies that Dan will produce at any price ≥ $4.
Therefore, Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<4.
And S(P) = 20P- 80 If P≥ 4.
(b) What is Dan’s supply function if he has an avoidable fixed cost of $10?
Since there is now a fixed cost, equation (1) becomes:
C(Q) = 4Q + (Q^2/40) + 10 ................. (5)
And the average cost (AC) will be as follows:
AC = (4Q + (Q2/40) + 10)/Q
AC = 4 + (Q/40) + (10/Q) .................... (6)
Since AC = MC when AC at its minimum, equations (2) and (6) are therefore equated to solve for Q as follows:
4 + (Q/40) + (10/Q) = 4 + (Q/20)
(Q/40) + (10/Q) = (Q/20)
Q = 20
Divide through by Q, we have:
(1/40) + (10/Q^2) = (1/20)
10/Q^2 = (1/20) - (1/40)
10/Q^2 = 0.05 - 0.025
10/Q^2 = 0.025
Q^2 = 10 / 0.025
Q^2 = 400
Q = [tex]\sqrt{400}[/tex]
Q = 20
Substituting Q = 20 into equation (6), we have:
AC = 4 + (20/40) + (10/20)
AC = $5
This implies that Dan will produce at any price ≥ $5.
Therefore, Dan’s supply function S(P) can be stated as follows:
S(P)= 0 If P<5.
And S(P) = 20P- 80 If P≥ 5
The consequences of poor
mangement to the government
and society .
You should make sure to send a
you.
letter to the person who interviewed
A. thank you
B. formal
C. recommendation
D. cover
Answer:
A. thank you
Explanation:
You should make sure to send a
you.
letter to the person who interviewed. you should say thank you to that person who interviewed.
Answer: Truly A. thank-you is the right answer
For me its C.
On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool sets within 60 days of purchase. Steele estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2017, Barr returned 6 tool sets and received a credit to its account.
Prepare journal entries for Steele to record (1) the sale on March 10, 2017, (2) the return on March 25, 2017, and (3) any adjusting entries required on March 31, 2017 (when Steele prepares financial statements). Steele believes the original estimate of returns is correct. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Date Account Titles Debit Credit
March, 10 Accounts Receivables $10,000
Sales Revenue $10,000
Cost of Good sold $6,000
Inventory $6,000
Working
Receivables = 200 tool sets * 50 = $10,000
COGS = 200 * 30 = $6,000
Date Account Titles Debit Credit
March, 25 Sales Returns and Allowances $300
Accounts Receivable $300
Returned Inventory $180
Cost of Goods sold $180
Working:
Sales returns = 6 * 50 = $300
Cost of goods = 6 * 30 = $180
Estimated that 10 sets would be returned but only 6 were.
Date Account Titles Debit Credit
March, 25 Sales Returns and Allowances $200
Allowance for Sales Returns $200
and Allowances
Returned Inventory $120
Cost of goods sold $120
Working:
Sales returns = 4 * 50 = $200
COGS = 4 * 30 = $120
On January 1, 2019, Lightfoot Corporation issues 10%, 5-year bonds with a face value of $275,000 when the effective interest rate is 9%. Interest is to be paid semiannually on June 30 and December 31. Prepare calculations to prove that the selling price of the bonds is $285,880.07. Click here to access the tables to use with this exercise. Round your answers to two decimal places, if necessary. Present value of principal$fill in the blank 1 Present value of interestfill in the blank 2 Selling price
Answer:
Face Value of Bonds = $275,000
Annual Coupon Rate = 10%
Semiannual Coupon Rate = 5%
Semiannual Coupon = 5% * $275,000 = $13,750
Time to Maturity = 5 years
Semiannual Period = 10
Annual Interest Rate = 9%
Semiannual Interest Rate = 4.5%
Present Value of Principal = $275,000 * PV of $1 (4.50%, 10)
Present Value of Principal = $275,000 * 0.643928
Present Value of Principal = $177,080.20
Present Value of Interest = $13,750 * PVA of $1 (4.50%, 10)
Present Value of Interest = $13,750 * 7.912718
Present Value of Interest = $108,799.87
Cross-Check
Selling Price = Present Value of Principal + Present Value of Interest = $177,080.20 + $108,799.87 = $285,880.07
On January 20 of the current year, Zealand and Menandez form ZM LLC. Their contributions to the LLC are as follows: Adjusted Basis Fair Market Value From Zealand: Cash $82,000 $82,000 Accounts receivable $0 $214,000 Inventory $19,000 $26,000 From Menandez: Cash $201,000 $201,000 Temporary Investments $121,000 $121,000 Within 30 days of formation, ZM collects the receivables and sells the inventory for $26,000 cash. ZM realized the following income in the current year from these transactions: a. Ordinary income of $fill in the blank 2 from collecting cash basis accounts receivable. b. Ordinary income of $fill in the blank 4 from sale of inventory.
Answer:
Ordinary Income of $214,000 from collecting cash basis accounts receivable
Ordinary Income of $7,000 from sale of Inventory.
Explanation:
a. Adjusted basis of Accounts receivable = $0
Fair Market Value of Accounts Receivable = $214,000
Cash realized from Accounts Receivable = $214,000
Ordinary Income from collecting cash basis accounts receivable = $214,000
It is ordinary income since the Accounts receivable are taxed only after they are collected.
b. Adjusted basis of Inventory = $19,000
Fair Market Value of Inventory = $26,000
Cash realized from sale of Inventory = $26,000
Ordinary Income from sale of Inventory = Cash received from sale - Adjusted basis = $26,000 - $19,000 = $7,000
It is ordinary income since the Inventory only recognizes the adjusted basis i.e. the amount paid for inventory and any income recognized on sale of inventory is taxed accordingly.
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $135 per unit. Its standard cost per unit produced is $105 and its selling and administrative expenses totaled $235,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,500 F
Materials quantity variance . . . . . . . . . . . . . . . . . . . . . . . . $10,200 U
Labor rate variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,500 U
Labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . . . . . $4,400 F
Fixed overhead budget variance . . . . . . . . . . . . . . . . . . . . . $2,500 F
Fixed overhead volume variance . . . . . . . . . . . . . . . . . . . . $12,000 F
Required:
1. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
2. Using Exhibit 10B-5 as a guide, prepare an income statement for the year.
Dylan Corporation
Income Statement
For the year ended 12/31/xx
dollars in thousands
Sales 5270
Cost of goods sold at stanadard 4335
Total variance adustments 36
Cost of goods sold 4371
Gross margin 899
Selling and administrative expenses 450
Net operating income 449
Answer:
See below
Explanation:
1. Computation of cost of goods sold
Materials Price Variance
$6,500 F
Materials Quantity Variance
$10,200 U
Labor Rate Variance
$3,500 U
Labor Efficiency Variance
$4,400 F
Fixed Overhead budget variance
$2,500 F
Fixed Overhead volume variance
$12,000 F
Cost of goods sold
$11,700
2. Net operating statement
Sales[$153 × 10,000]
$1,530,000
Less: Cost of goods sold
Cost of goods sold at standard [$105 × 10,000]
$1,050,000
Cost of good sold adjusted
($11,700)
Variance adjustment Balance
$1,038,300
Gross profit
$491,700
Less selling and administrative expenses
($235,000)
Net operating income
$256,700
When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition: Group of answer choices Increases the investment account and reduces investment revenue. Increases the investment account and increases investment revenue. Reduces the investment account and increases investment revenue. Reduces the investment account and reduces investment revenue.
Answer:
d. Reduces the investment account and reduces investment revenue.
Explanation:
When the equity method of accounting for investments is used by the investor, the amortization of additional depreciation due to differences between book values and fair values of investee assets on the date of acquisition reduces the investment account and reduces investment revenue.
The amortization of additional depreciation reduces the investment account in the investee as well as reduces the income recognized from investee.
In the equity method, an investor amortizes, or expenses, the additional over book value paid for its portion of the investee's tangible non current assets. For non current assets, book value is purchase price minus accumulated depreciation. The investor amortizes the amount above book value it allocates to investee assets.
Billy Baroo Company uses a job order cost system. The following information was found in the Work-in-Process account for the month of July.
Date Description Amount [DR. or (CR.)]
July 1 Balance $13,500
July 31 Direct labor 41,000
July 31 Direct materials 58,000
July 31 Factory overhead 32,800
July 31 Transfer to finished goods (86,000 )
Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the lyjob still inprocessattheendofJuly, has been chargedwith direct aboro $12,000 Direct material charged to Job#23 was:_________
Answer:
$37,700
Explanation:
Ending balance in WIP = 13,500 + 41,000 + 58,000 + 32,800 - 86,000
Ending balance in WIP = $59,300
Direct material charged to Job #23 = $59,300 - $12,000 - ($12,000*80%)
Direct material charged to Job #23 = $59,300 - $12,000 - $9,600
Direct material charged to Job #23 = $37,700
Why does operations managers need to get involved into planning?
Answer:
See below
Explanation:
The reason is that he oversees the entire operations of an organization, hence must know what the planning entails at the beginning.
Again, if the operating manager is involved in planning at the early stage, he would be able to contribute meaningfully towards the success of the plan
g At the beginning of the month, the Painting Department of Skye Manufacturing had 39,000 units in inventory, 75% complete as to materials, and 20% complete as to conversion. During the month the department started 134,000 units and transferred 148,500 units to the next manufacturing department. At the end of the month, the department had 24,500 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department. Group of answer choices 158,300 materials; 152,175 conversion. 152,175 materials; 158,300 conversion. 158,300 materials; 144,375 conversion. 129,050 materials; 152,175 conversion. 129,050 materials; 144,375 conversion.
Answer:
Skye Manufacturing
Painting Department
Equivalent units:
158,300 materials; 152,175 conversion
Explanation:
a) Data and Calculations:
Beginning WIP = 39,000 units; Degree of completion: 75% materials and 20% conversion.
Units started during the month = 134,000
Units completed and transferred out = 148,500
Ending units of WIP = 24,500
Equivalent units, using the weighted average method of process costing:
Units Materials Conversion
Units transferred out 148,500 148,500 (100%) 148,500 (100%)
Ending Work in Process 24,500 9,800 (40%) 3,675 (15%)
Total equivalent units 158,300 152,175
A manager who creates an incentive program for the team to hit quarterly sales goals is performing the management function of ____________.
Answer:
Controlling.
Explanation:
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
A manager who creates an incentive program for the team to hit quarterly sales goals is performing the management function of controlling.
If a sales tax is the same for all goods sold within a given area, why are sales taxes considered regressive?
High-income earners avoid paying sales tax through deductions.
Sales taxes tend to be higher in areas with large low-income populations.
Sales tax disproportionately affects low-income earners.
Low-income earners make purchase decisions based exclusively on sales tax.
Answer:
the answer is c on edge
Explanation:
Continent Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs; it cannot accept both because they must be performed at the same time and Continent does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow.
Cost Category Job A Job B
Contract price $800,000 $750,000
Unit—level materials 250,000 220,000
Unit—level labor 260,000 310,000
Unit—level overhead 40,000 30,000
Supervisor's salary 70,000 70,000
Rental equipment costs 26,000 29,000
Depreciation on tools (zero market value) 19,900 19,900
Allocated portion of companywide facility—sustaining costs 10,400 8,600
Insurance cost for job 18,200 18,200
Required
a. Assume that Continent has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. Recommend which job to accept.
b. Assume that Job A is no longer available. Continent's choice is to accept or reject Job B alone. Fill in the information relevant to this decision. Recommend whether to accept or reject Job B.
Answer:
1. Job A is considered for recommendation
2. Accept B
Explanation:
1. We calculate contribution for A and B
For job A
$(800000-250000-260000-40000-26000)
= $224000
For job B
$(750000-220000-310000-30000-29000)
= $161000
We compare the costs of both jobs. A has more contribution compared to B so we consider A.
2. A is no longer available
We add supervisors salary as well as insurance as additional costs
$(750000-220000-310000-30000-29000-70000-18200)
= 72800
The contribution from b is positive so the decision is to accept it.
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due one year from May 1.4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.Make all the journal entries necessary to record the transactions above using appropriate dates.Edwardson Corporation
Answer:
Edwardson Corporation
Journal Entries:
February 2:
Debit Purchases $68,600
Credit Accounts Payable $68,600
To record credit purchases, net ($70,000 * 98%) with terms of 2/10, n/30.
February 26: Debit Purchases $1,400
Credit Accounts Payable $1,400
To revise the cash discounts not taken.
February 26: Debit Accounts Payable $70,000
Credit Cash $70,000
To record the full settlement for cash
April 1: Debit Truck $50,000
Credit Cash $4,000
Credit Notes Payable $46,000
To record the purchase of truck with a 12% note.
May 1: Debit Cash $83,000
Debit Interest Expense $9,000
Credit Notes Payable $92,000
To record zero-interest-bearing note due on May 1.
August 1: Debit Dividends $300,000
Credit Dividends Payable $300,000
To record the declaration of dividends.
Explanation:
a) Data and Analysis:
February 2: Purchases $68,600 Accounts Payable $68,600 ($70,000 * 98%)
February 26: Purchases $1,400 Accounts Payable $1,400
Accounts Payable $70,000 Cash $70,000
April 1: Truck $50,000 Cash $4,000 Notes Payable $46,000
May 1: Cash $83,000 Interest Expense $9,000 Notes Payable $92,000
August 1: Dividends $300,000 Dividends Payable $300,000
b) Note that the Interest Expense of $9,000 will be split between the current year and the following year. Specific information for the split is not available.
It is now January 1, 2018, and you are considering the purchase of an outstanding bond that was issued on January 1, 2016. It has a 9% annual coupon and had a 20-year original maturity. (It matures on December 31, 2035.) There is 5 years of call protection (until December 31, 2020), after which time it can be called at 109-that is, at 109% of par, or $1,090. Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.20. What is the yield to maturity
Answer:
YTM is 7.54%.
Explanation:
The yield to maturity can be calculated using the following RATE function in Excel:
YTM = RATE(nper,pmt,-pv,fv) .............(1)
Where;
YTM = yield to maturity = ?
nper = number of periods = number of years to maturity = original maturity number of years - number of years between January 1, 2016 and January 1, 2018 = 20 - 2 = 18
pmt = annual coupon payment = face value * annual coupon rate = 1000 * 9% = 90 (Note: This is an inflow to the bondholder and it is therefore a positive figure).
pv = present value = current bond price = -1141.20 (Note: This is an outflow to the buyer of the bond and it is therefore a negative figure).
fv = face value of the bond = 1000 (Note: This is an inflow to the bondholder and it is therefore a positive figure).
Substituting the values into equation (1), we have:
YTM = RATE(18,90,-1141.20,1000) ............ (2)
Inputting =RATE(18,90,-1141.20,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 7.54%.
Therefore, YTM is 7.54%.
Capital using technological process results in ____?
Capital-driven technological processes lead to creating new and innovative capital goods.
What are capital goods?Capital goods are the assets utilized by a production company while engaging in the manufacturing of goods.
When the technological process is driven by capital funds, then the company starts manufacturing innovative capital products which further increase its worth. This leads to a decline in the worth of capital goods that are already been present in the consumer market.
Therefore, the emergence of new capital products is being produced due to technological processes.
Learn more about the capital goods in the related link:
https://brainly.com/question/18849286
#SPJ2
Apple Inc, designs, manufactures, and markets mobile devices, personal computers, and portable digital music players and sells a variety of related software and services. Assume that the following transactions (in millions) occurred during the next fiscal year (ending on September 29, 2018):
a. Borrowed $50 from banks due in two years.
b. Purchased additional investments for $210 cash; one-fifth were long term and the rest were short term.
c. Purchased property, plant, and equipment; paid $12,600 in cash and signed a short-term note for 1,490 Issued additional shares of common stock for $835 in cash; total par value was $1 and the rest was in excess of par value.
d. Sold short-term investments costing $10,020 for $10,020 cash.
e. Declared $52 in dividends to be paid at the beginning of the next fiscal year.
Required:
Prepare a journal entry for each transaction.
Answer:
Part a
Debit : Cash $50
Credit : Note Payable $50
Part b
Debit : Long - term Investments $42
Debit : Short - term Investments $168
Credit : Cash $210
Part c
Debit : Property, Plant and Equipment $14,090
Credit : Cash $12,600
Credit : Short term note payable $1,490
Part d
Debit : Cash $10,020
Credit : Short-term investments $10,020
Part e
Debit : Dividends $52
Credit : Shareholders for Dividends $52
Explanation:
The first step is to identify the accounts affected by the transaction (usually 2 or more) then prepare journal entries as above.
You plan to retire in 28 years. You would like to maintain your current level of consumption which is $52,672 per year. You will need to have 30 years of consumption during your retirement. You can earn 5.03% per year (nominal terms) on your investments. In addition, you expect inflation to be 2.82% inflation per year, from now and through your retirement. How much do you have to invest each year, starting next year, for 13 years, in nominal terms to just cover your retirement needs?
Answer:
The amount to invest each year for 13 years is $5,617.37.
Explanation:
This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = current level of consumption = $52,672
P = amount to invest each year = ?
r = annual nominal interest rate = 5.03%, or 0.0503
n = number of years = 13
Substituting the values into equation (1) and solve for n, we have:
$52,672 = P * ((1 - (1 / (1 + 0.0503))^13) / 0.0503)
$52,672 = P * 9.37662983027493
P = $52,672 / 9.37662983027493
P = $5,617.37
Therefore, the amount to invest each year for 13 years is $5,617.37.
The following trial balance was taken from the records of Fairport Manufacturing Company at the beginning of 2019:
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Transactions for the Accounting Period:
Fairport purchased $11,400 of direct raw materials and $600 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $10,800 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
By the end of the year, $10,500 of the accounts payable had been paid in cash.
During the year, direct labor amounted to 950 hours recorded in the Wages Payable account at $21 per hour.
By the end of the year, $18,000 of wages payable had been paid in cash.
At the beginning of the year, the company expected overhead cost for the period to be $12,600 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 950 for the year.
Selling and administrative expenses for the year amounted to $1,800 paid in cash.
Utilities and rent for production facilities amounted to $9,300 paid in cash.
Depreciation on the plant and equipment used in production amounted to $3,000.
There was $24,000 of goods completed during the year.
There was $25,500 of finished goods inventory sold for $36,000 cash.
A count of the production supplies revealed a balance of $178 on hand at the end of the year.
Any over- or underapplied overhead is considered to be insignificant.
Required
a) Prepare T-accounts with the beginning balances shown in the preceding list and record all transactions for the year including closing entries in the T-accounts.
b) Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.
Answer:
Fairport Manufacturing Company
T-accounts
Cash
Account Titles Debit Credit
Beginning balance $ 20,000
Accounts payable $10,500
Wages payable 18,000
Selling and distribution expense 1,800
Utilities and Rent for production 9,300
Sales Revenue 36,000
Ending balance $16,400
Raw materials inventory
Account Titles Debit Credit
Beginning balance $ 1,800
Accounts Payable 11,400
Work-in-Process $10,800
Ending balance $2,400
Work in process inventory
Account Titles Debit Credit
Beginning balance $ 2,400
Raw materials 10,800
Wages Payable 19,950
Overhead Applied 11,970
Finished Goods Inventory $24,000
Ending balance $21,120
Finished goods inventory
Account Titles Debit Credit
Beginning balance $ 4,200
Work-in-Process 24,000
Cost of goods sold $25,500
Ending balance $2,700
Property, plant, and equipment
Account Titles Debit Credit
Beginning balance $ 15,000
Accumulated depreciation
Account Titles Debit Credit
Beginning balance $ 6,000
Depreciation expense 3,000
Ending Balance $9,000
Accounts Payable
Account Titles Debit Credit
Raw materials $12,000
Cash $10,500
Ending balance $1,500
Wages Payable
Account Titles Debit Credit
Work-in-Process $19,950
Cash $18,000
Ending balance $1,950
Common stock
Account Titles Debit Credit
Beginning balance $ 16,800
Retained earnings
Account Titles Debit Credit
Beginning balance $ 20,600
Production Supplies
Account Titles Debit Credit
Accounts Payable $600
Overhead $422
Ending balance $178
Overhead Expenses
Account Titles Debit Credit
Work-in-Process $11,970
Cash (Utilities) 9,300
Depreciation expense 3,000
Production supplies 422
Cost of goods sold (Underapplied) 752
Sales Revenue
Account Titles Debit Credit
Cash $36,000
Income Summary $36,000
Cost of Goods Sold
Account Titles Debit Credit
Finished Goods Inventory $25,500
Overhead (underapplied) 752
Income Summary $26,252
Selling and Distribution Expense
Account Titles Debit Credit
Cash $1,800
Utilities and Rent
Account Titles Debit Credit
Cash $9,300
Overhead $9,300
Depreciation Expense - Plant & Equipment
Account Titles Debit Credit
Accumulated Depreciation $3,000
Overhead $3,000
b) Schedule of Cost of Goods Manufactured and Sold:
WIP Beginning Inventory $ 2,400
Raw materials 10,800
Direct labor 19,950
Overhead Applied 11,970
Cost of goods in production $45,120
Ending WIP Inventory 21,120
Cost of manufactured $24,000
Finished Goods Inventory $ 4,200
Cost of manufactured 24,000
Cost of goods available $28,200
Ending FG Inventory 2,700
Cost of goods sold $25,500
Income Statement for the year ended December 31, 2019:
Sales Revenue $36,000
Cost of Goods Sold 26,252
Gross profit 9,748
Selling and distribution exp. 1,800
Net income $7,948
Retained Earnings, January 1, 2019 $20,600
Net income 7,948
Retained Earnings, December 31, $28,548
Balance Sheet as of December 31, 2019:
Assets:
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Production Supplies 178 $42,798
Property, plant, and equipment 15,000
Accumulated depreciation 9,000 $6,000
Total assets $48,798
Liabilities and Equity:
Accounts Payable $1,500
Wages Payable 1,950
Total liabilities $3,450
Common stock $16,800
Retained earnings 28,548 $45,348
Total liabilities and equity $48,798
Explanation:
a) Data and Calculations:
Trial Balance at January 1, 2019:
Account Titles Debit Credit
Cash $ 20,000
Raw materials inventory 1,800
Work in process inventory 2,400
Finished goods inventory 4,200
Property, plant, and equipment 15,000
Accumulated depreciation $ 6,000
Common stock 16,800
Retained earnings 20,600
Total $ 43,400 $ 43,400
Analysis of Transactions for the period:
1. Raw materials $11,400 Production Supplies $600 Accounts payable $12,000
2. Work-in-Process $10,800 Raw materials $10,800
3. Accounts payable $10,500 Cash $10,500
4. Work-in-Process $19,950 Wages Payable $19,950
5. Wages Payable $18,000 Cash $18,000
6. Work-in-Process $11,970 Overhead Applied $11,970 ($12,600 * 950/1,000)
7. Selling and Administrative expense $1,800 Cash $1,800
8. Utilities and Rent for production $9,300 Cash $9,300
9. Depreciation Expense-Plant and Equipment $3,000 Accumulated Depreciation $3,000
10. Finished Goods Inventory $24,000 Work-in-Process $24,000
11. Cost of Goods Sold $25,500 Finished Goods Inventory $25,500
12. Cash $36,000 Sales Revenue $36,000
13. Overhead $422 Production Supplies $422 ($600 - $178)
14. Cost of Goods Sold $752 Underapplied Overhead $752
Adjusted Trial Balance at December 31, 2019:
Account Titles Debit Credit
Cash $ 16,400
Raw materials inventory 2,400
Work in process inventory 21,120
Finished goods inventory 2,700
Property, plant, and equipment 15,000
Accumulated depreciation $ 9,000
Accounts Payable 1,500
Wages Payable 1,950
Common stock 16,800
Retained earnings 20,600
Production Supplies 178
Sales Revenue 36,000
Cost of Goods Sold 26,252
Selling and distribution exp. 1,800
Totals $85,850 $85,850
Organizations exchange information internally and externally. External messages go to customers, vendors, the government, and other business partners. Internal messages travel upward to supervisors, downward to employees, and horizontally among workers. Understanding the different types of business messages and following the 3-x-3 writing process will help you write more effective professional messages.
Match the message content area with the correct types of messages.
a. Sales pitches, requests for favors
b. Replies, goodwill messages, direct claims
c. Bad news, refusals
1. persuasive
2. positive
3. negative
Answer:
1. persuasive: a. Sales pitches, requests for favors
2. positive: b. Replies, goodwill messages, direct claims
3. negative: c. Bad news, refusals
Explanation:
a) A persuasive speech is one whose goal is to convince someone of something, so it is correct to say that in an organizational message where there are sales speeches and requests for favors, there is a need for a persuasive speech, whose message seeks to convince the sender of the benefits of make a sale for example.
b) A positive speech is one whose intention is to motivate, give praise, offer positive feedback, etc. Therefore, in responses, messages of goodwill, direct claims, positive speech will help in better understanding of the sender and in the positive positioning of the company.
c) A negative discourse occurs when there is bad news to be shared, it is necessary that this message is written in a soft way, with damping words and indirectly, because this way the acceptability can be greater.
Three accuracy problems with the consumer price index (CPI) are Group of answer choices price confusion, substitution, and quality changes. substitution, quality changes, and the money illusion. substitution, quality changes, and the availability of new goods and services. the availability of new goods and services, substitution, and traditional bundle bias. the income effect, substitution effect, and money illusion.
Answer:
Option b (Substitution.....services) is the appropriate choice.
Explanation:
The above leads to calculating difficulties as well as the failure throughout the Index to identify better products and services contributing to less precise inflation outcomes.It does not take account of the replacement facilities, which arise when an increase throughout the price of one promising recommendation to a replacement including its good by another, which often increases the costs of one quality.The other options are not related to the given scenario. So the above is the correct choice.
Which of the following are ways to build credibility for your report? Check all that apply.
Cite supporting statistics and their sources.
Provide lengthy explanations.
Provide lengthy explanations and pontificate.
Present opinions as fact.
Use authoritative quotes to emphasize the seriousness of the problem.
On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin will pay interest quarterly on March 31, June 30, September 30, and December 31. The company's fiscal year ends on December 31. What is the issue price of this bond assuming the market rate of interest is 4%?
Answer:
Face Value of the Bond = 40000
Effective Interest = 4%
Coupon rate = 4%
Years to Maturity = 4
Quarterly Coupon rate = 1%
No. of compounding periods = 16
Present Value of Face (40000*.85282) $34,112.85
Present Value of Interest Payments (800*14.7179) $5,887.15
Total $40,000.00
Face Value of Bond $40,000.00
Initial Amount of Discount/(Premium) $0.00
Note: As the bonds are issued at par, there is premium or discount.
A company is forecasted to generate free cash flows of $25 million next year and $29 million the year after. After that, cash flows are projected to grow at a stable rate in perpetuity. The company's cost of capital is 12.0%. The company has $34 million in debt, $19 million of cash, and 23 million shares outstanding. Using an exit multiple for the company's free cash flows (EV/FCFF) of 17, what's your estimate of the company's stock price
Answer:
$18.41
Explanation:
Equity value = FCF next year / (1 + cost of capital) + FCF in year 2 / (1 + cost of capital)^2 + 1 / (1 + cost of capital)^2 * [ (FCF in year 2 * exit multiple)]
= $25 million/1.12 + $29 million/1.12^2 + 1 / 1.12^2*[($29 million*17)]
= $25 million/1.12 + $29 million/1.12^2 + $493 million/1.12^2
= $25 million / 1.12 + $522 million / 1.12^2
= $438.4566327 million
The stock price = ($438.4566327 million - Debt + Cash) / Number of shares outstanding
= ($438.4566327 million - $34 million + $19 million) / 23 million shares
= $423.4566327 million / 23 million shares
= 18.4111579435
= $18.41
elisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Division L Division Q Sales $528,000 $142,000 $386,000 Variable expenses 319,460 72,420 247,040 Contribution margin 208,540 69,580 138,960 Traceable fixed expenses 109,920 29,400 80,520 Segment margin 98,620 $ 40,180 $ 58,440 Common fixed expenses 55,370 Net operating income $ 43,250 The break-even in sales dollars for Division Q is closest to:
Answer:
the break even point in sales dollars is $223,667
Explanation:
The computation of the break even point in sales dollars is shown below:
= Fixed cost ÷ contribution margin ratio
= $80,520 ÷ ($138,960 ÷ $386,000)
= $80,520 ÷ 36%
= $223,667
Hence, the break even point in sales dollars is $223,667
3. The day after Thanksgiving, known as Black Friday, is the biggest shopping day
of the year. One major retailer advertised a "Black Friday only" laptop for $150.
On Thanksgiving night, hundreds of people waited for the store to open to take
advantage of the laptop deal-only to learn that the store only had two units for
sale at the discounted price. Did the retailer breach its contract with the hundreds
of consumers who sought the deal? What obligation, if any, does the retailer have
to its consumers?
Answer:
No there is no breach of contract since the retailer should have mentioned that stock is limited.
Explanation:
The retailer should have mentioned with the advertisement that the stock is limited. If such is the case then there is no breach as it is up to the store how many units it has kept for sale. The store should be opened on Black Friday and those customers who grab the sale items first will be given the discounted products. It is not responsibility of the store to entertain every customer as the stock in the store is limited.
Patty and Bob were in a romantic relationship. While they were seeing each other, Patty and Bob acquired an electronics service center, Bob paying $60,000 and Patty running all facets of the center. The center becomes very profitable. Two years later, when the romantic relationship ended, Bob goes to court for a declaration that they had no partnership because they did not have a written partnership agreement and Patty contributed no cash, she was merely an employee. Did they have a partnership
Answer:
Most states accept oral agreements when forming partnerships. This would not be an exception. the fact that Patty didn't contribute any money doesn't mean that she cannot be considered a partner. Her contribution might be her labor. Unless the partnership previously recorded Patty as an employee, then she can claim being a partner. Since no written agreement was made, profits must be divided equally.
Explanation:
The decision regarding the partnership between Patty and Bob would be as follows:
Yes, they have been partners where one has employed capital while the other has employed his entrepreneurship.
What is Partnership?A Partnership is described as an acquaintance and association that exists between two or more individuals in order to run a business.
In the given situation, although there is no written agreement between them, Bob will have an equal share in the profit of the business.
The reason behind this is that one employed his capital while the other employed his skills and efforts(entrepreneurship).
Thus, they would be considered as partners as he was not hired as an employee in the company.
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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2018. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Interest Effective Interest Decrease in balance Outstanding balance 1/1/2018 $207,020 6/30/2018 $7,000 $6,211 $789 206,230 12/31/2018 $7,000 6,187 813 205,417 6/30/2019 $7,000 6,163 837 204,580 12/31/2019 $7,000 6,137 863 203,717 6/30/2020 $7,000 6,112 888 202,829 12/31/2020 $7,000 6,085 915 201,913 6/30/2021 $7,000 6,057 943 200,971 12/31/2021 $7,000 6,027 971 200,000 What is the annual stated interest rate on the bonds
The Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
Data and Calculations:
Date Cash Interest Effective Interest Decrease Outstanding
in balance balance
1/1/2018 $207,020
6/30/2018 $7,000 $6,211 $789 206,230
12/31/2018 $7,000 6,187 813 205,417
6/30/2019 $7,000 6,163 837 204,580
12/31/2019 $7,000 6,137 863 203,717
6/30/2020 $7,000 6,112 888 202,829
12/31/2020 $7,000 6,085 915 201,913
6/30/2021 $7,000 6,057 943 200,971
12/31/2021 $7,000 6,027 971 200,000
Total cash interest per year = $14,000 ($7,000 + $7,000)
Annual stated interest rate = 7% ($14,000/$200,000 x 100)
This annual interest rate can also be worked out as 7% ($7,000/$200,000 x 100 x 2), while the effective interest rate is 6% ($6,027/$200,000 x 100).
Thus, Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
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