Answer:
The cost of goods manufactured is $557,300
Explanation:
In order to calculate the cost of goods manufactured we would have to make the following calculation:
cost of goods manufactured=Work in process inventory 1/1+Total manufacturing costs-Work in process 12/31
Work in process inventory 1/1)= $13,500
Total manufacturing costs=Direct materials used+Direct labor+Manufacturing overhead
Total manufacturing costs=166000+220000+180000=$566,000
Work in process 12/31=$22,200
Cost of goods manufactured=$13,500 +$566,000 -$22,200
Cost of goods manufactured= $557,300
The cost of goods manufactured is $557,300
Decision Making Mystic Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. A simplified Bottling Department cost of production report separating the cost of bottling the four flavors follows:
A B C D E
1 Orange Cola Lemon-Lime Root Beer
2 Concentrate $ 4,625 $129,000 $ 105,000 $ 7,600
3 Water 1,250 30,000 25,000 2,000
4 Sugar 3,000 72,000 60,000 4,800
5 Bottles 5,500 132,000 110,000 8,800
6 Flavor changeover 3,000 4,800 4,000 10,000
7 Conversion cost 1,750 24,000 20,000 2,800
8 Total cost transferred to finished goods $19,125 $391,800 $324,000 $36,000
9 Number of cases 2,500 60,000 50,000 4,000
10 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
Orange Cola Lemon-Lime Root Beer
per case $_____ $_____ $_____ $_____
Answer and Explanation:
As per the scenario the solution of cost per case for each of the four flavors is shown below:-
Particulars Orange Cola Lemon Lime Root Beer
Total Cost
transferred to
finished goods a $19,125 $391,800 $324,000 $36,000
Number of cases b 2,500 60,000 50,000 4,000
Cost Per Case $7.65 $6.53 $6.48 $9
(c = a ÷ b)
Therefore we divide the total cost transferred to finished out by number of cases to figure out the cost per case.
A team is working on a cutting-edge technology, and does not have a lot of familiarity with the technical environment. As a result, it is struggling to estimate a complex story because the approach itself is not clear. How should the team proceed
Answer:
The answer is "Writing a SPIKE (a non-technical nonstory) as well as the period box until you accept your system planning article".
Explanation:
The working of the team is on state-of-the-art technology and its understanding of the relevant setting, and its main purpose of removing technological complexity is to conduct experiments-this is what a SPIKE tale is about. Whenever a story could not be predicted as the manager wants an experiment, it's indeed best to read a piece before continuing to work on the storyline.
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today
Answer:
The annuity will cost him $963,212.95.-
Explanation:
Giving the following information:
Cash flow= $75,000
Interest rate= 0.0525
n= 20
First, we need to calculate the final value. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= annual cash flow
FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}
FV= 2,546,491.88 + 133,690.82= $2,680,182.70
Now, the present value:
PV= FV/(1+i)^n
PV= 2,680,182.70/(1.0525^20)
PV= $963,212.95
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.
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.
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 ________.
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.
Zaid's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $65 for 10,000 tents. At that level of output, the firm's average total costs equal Group of answer choices $65 $75 $85 $95
Answer:
$95
Explanation:
average variable cost per unit = $65
average fixed cost per unit = $300,000 / 10,000 = $30
average total cost per unit = $95
Fixed costs do not vary if the production output changes, while variable costs move in the same direction as the production output, e.g. if output increases, variable costs increase as well.
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.
a. Uncle Paul pays a domestic contractor for renovating his home.
b. Aunt Jane buys a new house from a local builder.
c. You purchase a box of Belgium chocolate.
d. Ford manufactures a Focus and sells it to Avis, the car rental company.
e. You pay a domestic plumber for fixing a leak in your bathroom.
f. Ford sells a Mustang from its inventory to the Martinez family.
g. California hires workers to repave Highway 101.
h. The federal government sends your grandmother a Social Security check.
1. Consumption
2. Investment
3. Government Purchases
4. Net Exports
Answer and Explanation:
As we know that
Gross domestic product = Consumption + Investment + Government purchase + Net exports
where,
Net exports = Exports - imports
a. Uncle Paul pays a domestic contractor to have his house renovated. = Consumption
b. Aunt Jane buys a new house from a nearby building firm. = Investment
c. You buy chocolate from Belgium in a box. = Consumption & net exports
d. Ford is making a Focus and marketing it to Avis, the car rental company. = Investment
To fix a leak in your bathroom you pay a domestic plumber. = Consumption
e. Ford is selling a Mustang to the Martinez family from its inventory. = Consumption and investment
f. California is hiring people to repave Highway 101. = Government purchase
g. The Federal government is sending a Social Security check to your grandmother. The same is not involved in GDP as it has transfer payment
According to the conditions, Uncle Paul pays a domestic contractor for renovating his home - Consumption. Thus, the correct transactions that affect a-1, b-2, c-1&4, d-2, e-1, f-1&2, g-3, h-No affect.
Utilizing resources to fulfill present needs and desires is referred to as consumption. In contrast, investing is making purchases in order to generate future revenue.
An asset is considered an investment if it is bought or invested in with the intention of increasing financial security and preserving hard-earned income.
Government purchases are things that the federal, state, and municipal governments spend money on.
The difference between a country's exports and imports in dollars over a specific time period is known as net exports.
Therefore, the following transactions with their effect are as follows:
a-1, b-2, c-1&4, d-2, e-1, f-1&2, g-3, h-No affect.
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Assume the following data for Lusk Inc. before its year-end adjustments: Debit CreditSales $3,600,000 Cost of Merchandise Sold $2,100,000Estimated Returns Inventory 1800Customer Refunds Payable 900Estimated cost of merchandise that Will be returned in the next year 15,000Estimated percent of refunds for current year sales 0.8%Journalize the adjusting entries for the following: a. Estimated customer allowances b. Estimated customer returns
Answer:
a. Estimated customer allowances
December 31, 202x. estimated customer allowance
Dr Sales 27,900
Cr Customer refunds payable 27,900
total estimated refunds payable = $3,600,000 x 0.8% = $28,800 - $900 (account balance) = $27,900
b. Estimated customer returns
December 31, 202x. estimated customer returns
Dr Estimated returns inventory 13,200
Cr Cost of merchandise sold 13,200
total estimated returns $15,000 - $1,800 = $13,200
Explanation:
Sales $3,600,000
Cost of Merchandise Sold $2,100,000
Estimated Returns Inventory $1800
Customer Refunds Payable $900
Estimated cost of merchandise that Will be returned in the next year $15,000
Estimated percent of refunds for current year sales 0.8%
The required return on the stock of Moe's Pizza is 10.8 percent and aftertax required return on the company's debt is 3.40 percent. The company's market value capital structure consists of 69 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1.9 percent. The tax rate is 39 percent. What is the required return for the new project? rev: 12_20_2018_QC_CS-152115 Multiple Choice 10.41% 6.19% 8.51% 9.99% 6.61%
Answer:
The required return for the new project is 6.87%
Explanation:
In order to calculate the required return for the new project we would have to calculate the Weighted Average Cost of Capital (WACC) adjusted by risk adjustment factor .
The Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]
After -tax Cost of Debt = 3.40%
Cost of Equity = 10.80%
Weight of Debt = 0.39
Weight of Equity = 0.69
Therefore, the Weighted Average Cost of Capital (WACC) = [After Tax Cost of Debt x Weight of Debt] + [Cost of equity x Weight of Equity]
= [3.40% x 0.39] + [10.80% x 0.69]
= 1.32% + 7.45%
= 8.77%
The required return for the new project = Weighted Average Cost of Capital – Risk Adjustment Factor
= 8.77% - 1.90%
= 6.87%
The required return for the new project is 6.87%
Martin runs a successful house painting business. He runs his business out of his garage, which he got converted into an office space. Martin, who had previously worked as a house painter in another company had good know-how of how to run a house-painting business. After a storm destroyed public properties in his neighboring town, he contracted with the mayor of that town to fulfill any painting jobs required during the town's reconstruction. In order to meet this demand and expand business, he hired more house painters.
According to the BRIE model, which of the following is an example of Martin's resource competency?
A. Martin hiring more house painters to meet demand
B. Martin contracting with the mayor to help paint during reconstruction
C. Martin setting up the business's office in his garage
D. Martin having prior knowledge of the house-painting business
Answer:
A. Martin hiring more house painters to meet demand
Explanation:
The BRIE model for entrepreneurship refers to:
Boundary: creating a physical place for your business and creating a mental place for your business inside your customers' mindsResources: all the physical resources that your business possesses Intention: how determined you are in making your business succeed Exchange: actually make your business generate revenue and business transactionsOn 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.
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.
Sunland Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $320000 of direct materials costs and $410000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is $1140000. $1050000. $935000. $730000.
Answer:
$935,000
Explanation:
Calculation for Sunland company total manufacturing costs for Job No. 501
Using this formula
Total Manufacturing cost =(Manufacturing Overhead/Percentage of Overhead basis)+Direct material +Manufacturing overhead
Let plug in the formala
Total Manufacturing Overhead=($410,000/2)= $205,000 + $320,000 + $410,000
Total Manufacturing overhead =$935,000
Therefore Sunland company total manufacturing costs for Job No. 501 will be $935,000
Russell Co. received a $680 utility bill for the current month's electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Russell Co. make to record the receipt of the bill?
a. Utilities Expense 400
Accounts Payable 400
b. Accounts Payable 400
Utilities Expense 400
c. No journal entry is required.
d. Cash 400
Utilities Expense 400
e. Utilities Expense 400
Accounts Receivable 400
The correct options are :
a. Utilities Expense 680
Accounts Payable 680
b. Accounts Payable 680
Utilities Expense 680
c. No journal entry is required.
d. Cash 680
Utilities Expense 680
e. Utilities Expense 680
Accounts Receivable 680
Answer:
a. Debit Utilities Expense $680
Credit Accounts Payable $680
Explanation:
Russel Co has received a utility bill for the current month but they intend to pay next month.
Since the expense is for this month it must be recognised now. So there will be a debit to the Utilities Expense account for $680.
The payment is not being made now but in the next month. This is an amount the business owes so it will be recorded as a credit to Accounts Payable of $680
Accounts payable is used to record monies that the business owes its creditors. Payments are due at a future date.
Answer:
Debit Utilities Expense 680
Credit Accounts Payable 680
Explanation:
Russell Co. Journal entry to record the receipt of the bill will be:
Debit Utilities Expense 680
Credit Accounts Payable 680
Since Russell Co. received a $680 utility bill which is not yet due until the end of the next month which means we have to Debit Utilities Expense with 680 which is the amount not yet due and Credit Accounts Payable with the same amount .
Compute net income for 2019 by comparing total equity amounts for these two years and using the following information: During 2019, the owner invested $33,000 additional cash in the business (in exchange for common stock) and the company paid a $36,000 cash dividend.
Equity, December 31, 2018
Equity, December 31, 2019
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2018 and 2019.
December 31 2018 2019
Cash $55,530 $10,900
Accounts receivable 30,142 23,632
Office Supplies 4,755 3,483
Office equipment 145,958 155,473
Trucks 57, 115 66, 115
Building 0 190, 398
Land 0 47,511
Accounts payable 79,245 39,303
Note payable 0 137,909
Answer:
net income during 2019 = $109,045
Explanation:
total stockholder equity 2018 = assets - liabilities = $293,500 - $79,245 = $214,255
total stockholder equity 2019 = assets - liabilities = $497,512 - $177,212 = $320,300
change in equity from 2018 to 2019 = $106,045
$33,000 can be explained by additional capital invested, and the remaining $73,045 corresponds to change in retained earnings
change in retained earnings = net income - dividends distributed
$73,045 = net income - $36,000
net income = $109,045
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 $ $ $
Complete Question:
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 $ $ $
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 = $31,240
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. Determination of 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 = $32,500 (26 x $1,250)
b) Cost of goods sold = $311,250 (249 x $1,250)
4. Comparison of the Gross Profit and June 30 inventories using the following column headings:
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) Data on Purchase and Sale Transactions with the Quarter:
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 See calculations
Sales 249 $525,250
Ending Inventory 26 See Calculations
c) Average cost of goods = Cost of goods available for sale/Quantity of goods available for sale = $343,640/275 = $1,249.60
d) Under the periodic inventory system:
1) FIFO assumes that the goods bought first are sold first.
2) LIFO assumes that the goods bought last are sold first
3) Weighted Average takes for granted that the cost of goods available for sale and inventory can be determined with the weighted average.
Using the period inventory system, it is when physical count is taken of inventory that one can estimate its value. Unlike the perpetual inventory system, the periodic inventory system waits till a financial period ends 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.
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
Item cost $ 10.00 Standard deviation of weekly demand 25 per week
Order cost $ 250.00 Lead time 1 week
Annual holding cost (%)33 % of item cost Service probability 95 %
Annual demand 25,750
Average demand 515 per week
a. Determine the order quantity and reorder point. (Round your answers to the nearest whole number.)
Optimal order quantity units
Reorder point units
b. Determine the annual holding and order costs. (Round your answers to 2 decimal places.)
Holding cost $
Ordering cost $
c. If a price break of $50 per order was offered for purchase quantities of over 2,000, what would be the annual savings? (Round your answer to 2 decimal places.)
Answer: The answer is below...
Explanation: Answer a. Order Quantity = √2RO/C = √2 * 25750 * 250 / .33 * 10 = √1975.23 From the standard normal distribution, z = 1.64 = (515 * 1) + (1.64 * 25) = 556 Reorder point = Lead time * daily usage = 7 * 25 = 150 per week Answer b. Holding cost = Q/2 (H) = 1975/2 (.33)10 = $3,258.75 Ordering cost...
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
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 priceBenefitsRelationshipTherefore, 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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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.
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
Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.)
Sales $668,600
Cost 431,300
Depreciation 103,700
EBIT
Taxes (24%)
Net Income
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield?
Answer:
a. $205,236
b. $24,888
Explanation:
a. The computation of OCF is shown below:-
EBIT = Sales - Cost - Depreciation
= $668,600 - $431,300 - $103,700
= $133,600
Net income = EBIT - Taxes
= $133,600 - ($133,600 × 24%)
= $133,600 - $32,064
= $101,536
Operating cash flow = EBIT - Taxes + Depreciation
= $133,600 - $32,064 + $103,700
= $205,236
b. The computation of depreciation tax shield is shown below:-
Depreciation tax shield = Depreciation × Tax
= $103,700 × 24%
= $24,888
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the
Answer: Reflexivity
Explanation:
Here is the complete question:
A year ago, the IT team earned corporate-wide recognition for its performance. More recently, it has begun to experience some declines in its performance. They have missed the last three project deadlines and have experienced budget overruns. The team leader has encouraged the team members to reflect on and adjust their purpose. To turn around the team's performance, the team lead is encouraging the team to show __________.
a. creativity
b. adherence to norms
c. OCBs
d. reflexivity
e. cohesion
Reflexivity simply means when individuals examine their own judgements, beliefs, and practices during a project or a research process and how their judgements, practices or beliefs may have influenced or impacted the research.
From the question, we are told that a year ago, the IT team earned corporate-wide recognition for its performance but recently, it has begun to experience some declines in its performance which has led to them missing the last three project deadlines and having experienced budget overruns.
To turn around the team's performance, the team lead is encouraging the team to show reflexivity. He wants them to look at what they've been doing earlier and what they're doing presently and make necessary adjustments regarding their judgements for the goals of the organization to be achieved.
Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) record a liability, (b) disclose in notes, or (c) have no disclosure. 1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000it is probable that Huprey will lose the case. Have no disclosure. Record a liability. Disclose in notes. 2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. Have no disclosure. Disclose in notes. Record a liability. 3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case. Have no disclosure. Record a liability. Disclose in notes. rev: 02_07_2018_QC_CS-117158
Answer:
1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,280,000, it is probable that Huprey will lose the case.
Record a liability.2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable.
Disclose in notes.3. Huprey is being sued for damages of $2,400,000. It is very unlikely (remote) that Huprey will lose the case.
Have no disclosure.Explanation:
Contingent liabilities must be recorded only when it is probable that the liability will happen and you can estimate the associated costs.
When contingent liabilities are only reasonably possible or you cannot estimate the amount, they must be included in the footnotes of the financial statements.
When contingent liabilities are not reasonably possible, nothing needs to be disclosed.
For each of the following separate transactions: Sold a building costing $38,500, with $23,400 of accumulated depreciation, for $11,400 cash, resulting in a $3,700 loss. Acquired machinery worth $13,400 by issuing $13,400 in notes payable. Issued 1,340 shares of common stock at par for $2 per share. Note payables with a carrying value of $41,700 were retired for $50,400 cash, resulting in a $8,700 loss. (a) Prepare the reconstructed journal entry. (b) Identify the effect it has, if any, on the investing section or financing section of the statement of cash flows.
Answer:
Both requirements are solved below
Explanation:
REQUIREMENT A:
Sale of a building Debit Credit
Cash $11,400
Acc Depreciation $23,400
Loss on disposal $3700
Building $38,500
Acquisition of Machinery Debit Credit
Machinery $13,400
Notes $13,400
Issuance of share Debit Credit
Cash(1340x2) $2,680
Share Capital $2,680
Retired Debt Debit Credit
Note payable $41,700
Loss on retirement $8,700
Cash $50,400
REQUIREMENT B:
Cash flow from investing activities
Gain on disposal of building $11,400
Net cash flow from investing activities $11,400
Cash flow from financing activities
Cash received from issuing shares $2,680
Cash paid for retirement of debt ($50,400)
Net cash flow from investing activities ($47,720)
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
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
O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $2,000,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate
Answer:
Predetermined manufacturing overhead rate= $0.4 per direct labor dollar
Explanation:
Giving the following information:
O.K. expects to incur $2,000,000 of overhead during the next period and expects to use 50,000 labor hours for $10.00 per hour.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,000,000/ (50,000*10)
Predetermined manufacturing overhead rate= $0.4 per direct labor dollar
Rafael has decided to retire once he has $1,000,000 in his retirement account. At the end of each year, he will contribute $7,000 to the account, which is expected to provide an annual return of 6.2%. How many years will it take until he can retire
Answer:
38 years
Explanation:
in order to determine the amount of years that it will take Rafael to retire, we can use the future value annuity formula:
future value = payment x annuity factor
we know:
future value = $1,000,000payment = $7,000annuity factor = $1,000,000 / $7,000 = 142.8571
the formula to calculate an annuity factor = [(1 + r)ⁿ - 1] / r
142.8571 = [(1 + 0.062)ⁿ - 1] / 0.062
8.8571 = (1.062)ⁿ - 1
9.8571 = (1.062)ⁿ
using a scientific calculator, we can determine the value of n = 38.0389491 years ≈ 38 years
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.
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
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).
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.
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
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
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.
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
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:
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