The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.



April 30 May 31
Inventories
Raw materials $ 43,000 $ 52,000
Work in process 10,200 21,300
Finished goods 63,000 35,600
Activities and information for May
Raw materials purchases (paid with cash) 210,000
Factory payroll (paid with cash) 345,000
Factory overhead
Indirect materials 15,000
Indirect labor 80,000
Other overhead costs 120,000
Sales (received in cash) 1,400,000
Predetermined overhead rate based on direct labor cost 70 %
rev: 06_09_2015_QC_CS-17114

Exercise 15-8 Journal entries for materials LO P1

1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.


Exercise 15-9 Journal entries for labor LO P2

1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in cash.
Prepare journal entries for the above transactions for the month of May.

Transaction General Journal Debit Credit
1

Answer:

Explanation:

The most likely reason for Walmart to support this technology is that it will allow them to track and process items from their suppliers at a much more efficient rate. Since RFID technology uses radio waves to read and capture information stored on a tag attached to an object, providing a unique identifier for an object. These unique tags allow each individual item to be tracked throughout the whole process from supplier to warehouse to client. Thus preventing losses and reducing costs.

Answer:

$50,855.62

Explanation:

I prepared an excel spreadsheet to determine the yearly contributions to the plan and their future value.

once you reach 65 years, your retirement account should have $1,038,165. Now we need to determine the present value = $1,038,165 / (1 + 9%)³⁵ = $50,855.62

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90

= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

= ¥351.26214 =A$1

c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

A$ 1,333,333.33333

Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward  Exchange outcome =  in Australian Dollars = ¥200 million/ ¥50 =

A$4 million

Hedging outcome minus Forward Exchange outcome

A$2 million - $4 million = -A$2million

Explanation:

a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive  ¥200 million in 90 days, can enter into a forward contract to deliver the  ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.

b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

Answer:

Debit to cost of goods sold and credit to factory overhead

Explanation:

Here we are interested in knowing the appropriate journal entry when the factory overhead is under applied.

What happens to the factory overhead journal in this case is that the we should have an adjusting journal entry.

The adjusting journal entry here is that we debit cost of goods sold and credit factory overhead

Answer:

Reserve requirements – Reserve requirement increases to decrease the money supply or vice versa.

Open-market activities – the Fed sell the securities to reduce money supply or purchase it to increase the money supply.

Discount rates – Decrease the discount rate to increase the money supply or vice versa.

Explanation:

The Federal Reserve increases or decreases the money supply by using various tools. So in the case of the reserve requirement, the bank increases the percentage of reserve requirement if the Fed wants to decrease the money supply and to increase the money supply it reduces the reserve requirements. In the case of open market operations, the Fed sells securities and bonds in the market in order to reduce the supply of money or to decrease the supply of money it buys the securities from the market.

In the case of a discount rate, the Fed reduces the discount rate to increase the money supply because reducing the discount rate will induce the banks to give more loans. But to decrease the money supply, the Fed increases the discount rate because an increase in the discount rate reduces the ability of banks to give loans.

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, given the fact that the economic growth of the United States is greater than the economic growth rates of its trading partners then the trade deficit in the US should get smaller, all else constant due to the fact that the economy is growing at a level that is higher than does of the partners and therefore that when that happens the country will be in a better position and the production of it will increase as expected and that will impact positively in the deficit by reducing it to small amounts.

Answer:

Firm L's cost of equity is 13.2%

Explanation:

In order to calculate Firm L's cost of equity we would have to calculate the following formula:

Firm L's cost of equity=Unlevered cost of equity+D/E*( Unlevered cost of equity-cost of debt)*(1-tax rate)

D/E = debt/equity

D/E = $200,000/$300,000

D/E=0.6666

Therefore, Firm L's cost of equity= 12%+0.6666*(12%-9%)*(1-0.4)

Firm L's cost of equity=13.2%

Firm L's cost of equity is 13.2%

Answer:

The correct answers are:

a - Frictionally unemployed

b - Frictionally unemployed

c - Cyclically unemployed

d - Structurally unemployed

Explanation:

To begin with, the term of "Frictional unemployment" refers to the situation that is caused when a person does not have a job because of the fact that she has recently quit one and is looking for a new one. The name of frictional unemployement refers to the time that the person quits a job and gets a new one.

Secondly, the term of "Cyclical unemployment" refers to the situation that is caused due to the economics situations of the country. Therefore that this type of unemployment is caused because of the bad sales, the bad production and the bad moment that the economy is having. It is refered to the economic cycles.

Finally, the term of "Structural unemployment" refers to the situation that is caused when a person in without a job due to the specialties and necessities that the companies are requiring or looking for. Therefore that this type of unemployment is caused by the lack of education in the workforce.

The correct answers are:

The clinical unemployment refers to the component of the overall unemployment that is an output of the cycles of direct economic upturn and downturns.

Structural unemployment is the involuntary unemployment that is due to the mismatch between the skills that the workers in the economy can offer. Frictional unemployment is a voluntary transmission within the economy.

Find out more information about the unemployed.

brainly.com/question/10546218.

Answer:

c. Schedule a follow-up meeting

Explanation:

In the given scenario the supervisor when talking to his son made the following statement: "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way."

This statement is one that should be asked during follow up meeting to review implemented solution.

Counseling interview will involve identifying the problem, consideration of solutions, choosing the appropriate solution, and finally the follow up meeting where review is done and feedback given.

The salesperson's son recieved positive feedback after solution implementation

Answer:

A.On Ex-dividend date: November 20, 2006

B.1%

C.$0.19

D. $1.82

Explanation:

1.On Ex-dividend date: November 20, 2006

will the stock price change to reflect the value of the dividend

b. Calculation for Formaggio’s dividend yield

Using this formula

Dividend yield = dividend/share price

Let plug in the formula

= .20/20 = 1%

c. Calculation of how much the stock price is likely to fall

0.20*(1 – 15%) = P*(1 – 10%)

Solve for P = $0.19

d. Calculation of How much is the stock price likely to fall Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend.

$1,000,000 + (1,000,000 * 10%)

$1,000,00+$100,000

= 1,100,000 total shares

Hence,

$20,000,000 / 1,100,000 = $18.18 per share

$20 – 18.18 = $1.82 fall

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

I hope my answer helps you

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

Answer:

The answer is 5.71%

Explanation:

Solution

Given that

Coupon rate = 7%

Bond = $1050

Sale of the bond = $1040

n = 10 years, n = 1 year

Now we find the investor's rate of return

Thus

Coupon payment = 7%* 1000

=70

1050 = 70/(1+r) + $1,040/(1+r)

r= 5.71%

Therefore the rate of return of the investor is 5.71%

or

Rate of return = (P1-P0+ Interest ) /P0

= (1040 -1050 + 70 )/1050

= .0571 or 5.71%

Answer:

The entry for the exchange is therefore;

Dr Land $82,000

Cr common stock $56,000

Cr Paid in capital in excess of par value common stock $26,000

Explanation:

The land was gotten at a price of $82,000(its fair value)

Common stock issue = 5,600 shares x $10 par value common stock

= $56,000

Paid in capital in excess of par value common stock = $82,000 - $56,000

=$26,000

The entry for the exchange is therefore;

Dr Land $82,000

Cr common stock $56,000

Cr Paid in capital in excess of par value common stock $26,000

Answer:

Contingent valuation.

Explanation:

An estimate of the money and paperwork spent complying with environmental regulations could be compared to the advantages of cleaning up pollution. This method of determining the value of the environment is known as contingent valuation.

Contingent valuation can be defined as a survey based method which is typically used to determine the economic value of a non-market resource such as the impact of pollution and preservation of the environment.

This ultimately implies that, contingent valuation is used for the valuation of resources and goods that are not being traded in marketplaces. Therefore, it is mostly related to the environmental and natural resources found around us on planet Earth.

Generally, this environmental and natural resources usually do not have a market price but various individuals derive utility or satisfaction from them.

Hence, the contingent valuation method is aimed at seeking people's opinions by asking questions on how much money they're willing to pay or receive for the preservation of an environmental resource.

For instance, many people derive pleasure from visiting tourist attractions sites such as zoo, recreational facilities, parks etc and would be willing to pay for this natural resources.

Answer:

The equal opportunity laws of another country, not the United States is discussed below in details.

Explanation:

An equal opportunity system is a certificate that declares what measures a company takes to eliminate and stop discrimination in the workplace.

The United Kingdom employment equality law is an organization of law that legislates against prejudice-based activities in the workplace.

The prime legislation is the Equality Act 2010, which condemns discrimination in passage to education, government services, private services, and goods, or assumptions in addition to employment.

The correct answer is $547.96

A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume they rise as production increases and fall as production decreases.

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Answer:

greater the potential reward

Explanation:

Answer:

1,                            Journal entries

Date    Account and explanation         Debi$       Credit$

          Treasury stock (5200*27)          140,400

           Cash                                                              140,400

           (To record purchase treasury stock)

            Cash (1,050*33)                           34,650  

            Paid in capital from sale of treasury stock    6,300

            Treasury stock (1,050*27)                               28,350

             (To record sale of treasury stock)  

              Cash (4,150*22)                             91,300

              Paid in capital from sale of            6,300

              treasury stock  

              Retained earnings                         14,450

              Treasury stock (4,150*27)                                112,050

              (To record sale of treasury stock)  

2.  Revised equity section

Contributed capital

Common Stock                             740,000

Paid in capital in excess of           226,000

par value-Common Stock

Total paid in capital                        966,000

Retained earnings                         880,000

Total                                                1,846,000

Less: Treasury stock                      (140,400)

Total Stockholder's equity            $1,705,600

Answer:

1. $8,630.69

2. $15,999

3. $373,155.46

4. $292.942.90

Explanation:

The formula for calculating future value = P(1 + r)^n

P = Present value

R = interest rate

N = number of years

1. $ 2,250 (1 + 0.13)^11 = $8,630.69

2. 8,752 (1 + 0.09)^7 = $15,999

3. 76,355 (1 + 0.12)^14 = $373,155.46

4. 183,796(1 + 0.06)^8 = $292.942.90

I hope my answer helps you

For each of the following, the future value can be computed as:

1. $8,630.69

2. $15,999

3. $373,155.46

4. $292.942.90

The worth of a present asset at some point in the future based on an estimated rate of growth is known as future value (FV). For investors as well as financial planners, the future value is crucial because they use it to predict the amount an investment made now is going to be worth throughout the future. Investors may make wise investment choices based on their projected demands by knowing the future worth.

future value = P(1 + r)^n

P = Present value

R = interest rate

N = number of years

1. $ 2,250 (1 + 0.13)^11 = $8,630.69

2. 8,752 (1 + 0.09)^7 = $15,999

3. 76,355 (1 + 0.12)^14 = $373,155.46

4. 183,796(1 + 0.06)^8 = $292.942.90

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Answer:

b. the interest rate and the expected rate of return.

Explanation:

For choosing the type of particular investment it is necessary to check the interest rate and the expected rate of return as every investor wants that there is a less interest rate, less or moderate risk but high rate of return and according to this they made the selection

Therefore the option b is correct

Answer: shift to the left

Explanation:

The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.

In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.

Answer:

There is demand for and supply of dollars and a demand for and supply of pesos. Under a flexible exchange rate system, if income growth in the United States is greater than income growth in Mexico, then the  dollar would increase its value over the peso.

Explanation:

Given that in the situation in question the quantities supplied and demanded of both currencies remain stable, in principle there should be no valuation of one over the other for reasons of supply and demand.

Now, since the economic growth in the United States that sustains the value of the dollar is greater than that growth in Mexico that sustains the value of the peso, the greater the value of the dollar in international markets. This will necessarily imply a higher valuation of the American currency, which will widen the gap in the exchange rate with respect to the peso, which instead will remain stable in global markets.

Answer:

The answer is true

Explanation:

Accounting Rate of Return is a financial ratio used in capital budgeting decision making. It is the ratio of estimated accounting profit(net income) of a project to the average investment made in the project.

And average investment is calculated as the sum of the beginning and ending book value of the project/investment divided by 2

Depreciation is termed as the phase of the value of the assets when they keep on decreasing year by year or monthly. It is caused due to the overutilization of the assets for the production function of the firm.  

The correct answer is true

An Accounting Rate of Return (ARR) is a financial ratio that is used to make capital budgeting decisions. It is the ratio of a project's estimated retained earnings (retained earnings) to a project's average investment.

Investment is equal to the sum of the project/initial investments and ending book values divided by two.

To know more about the  straight-line depreciation method, refer to the link below:

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Answer:

The adjusted cash balance per the bank records should be: $24,740.

Explanation:

The correct Cash balance can only be verified using a Bank Reconciliation Statement.

Thus prepare a Bank Reconciliation Statement to extract the updated Cash Book Balance.

Bank Reconciliation Statement

Note : The Bank Statement amount has to be adjusted for an overstatement of $36.

Balance as per updated Cash Book (Balancing figure)     $24,740

Add Unpresented Cheques                                                      $1,107

Less Lodgements not yet credited                                        ($2,450)

Balance as per Bank Statement ($23,361 + $36)                 $23,397

Conclusion :

The adjusted cash balance per the bank records should be: $24,740.

Answer:

IRR for project A = 19.71%

IRR for project B=  18.76%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calcuated using a finanical calcuator

for project A :

Cash flow in year 0 = -37,500

Cash flow in year 1 = 17,300

Cash flow in year 2 = 16,200

Cash flow in year 3 = 13,800

Cash flow in year 4 = 7,600

IRR = 19.71%

for project B :

Cash flow in year 0 = -37,500

Cash flow in year 1 = 5,700

Cash flow in year 2 = 12,900

Cash flow in year 3 = 16,300

Cash flow in year 4 = 27,500

IRR =  18.76%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Answer:

Scenario 1: Suppose all prices and salaries rise by 5% (as expected) over the course of the year. In the following table, find Eleanor's and Darnell's new salaries after the 5% increase, and then calculate the $58 payment as a percentage of their new salaries.

Eleanor's new salary = $200 x 1.05 = $210

Darnell's new salary = $100 x 1.05 = $105

the $58 payment represents:

$58 / $210 = 27.62% of Eleanor's new salary

$58 / $105 = 55.24% of Darnell's new salary

Scenario 2: Consider an unanticipated increase in the rate of inflation. The rise in prices and salaries turns out to be 14% over the course of the year rather than 5%. In the following table, find Eleanor's and Darnell's new salaries after the 14% increase, and then calculate the $58 payment as a percentage of their new salaries.

Eleanor's new salary = $200 x 1.14 = $228

Darnell's new salary = $100 x 1.14 = $114

the $58 payment represents:

$58 / $228 = 25.44% of Eleanor's new salary

$58 / $114 = 50.88% of Darnell's new salary

An unanticipated increase in the rate of inflation benefits Darnell and harms Eleanor.

Complete Question:

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a.  Checks outstanding totaled $19,427.

b.  A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.

c.  The bank collected $26,500 on a $25,000 note, including interest of $1,500.

d.  A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.

e.  A check drawn for $195 had been erroneously charged by the bank as $915.

f.  Bank service charges for June amounted to $55.

Answer:

Pala Medical Co.

Cash amount in the balance sheet = $189,281

Explanation:

a) Calculations:

Adjusted Cash balance at June 30, 20Y1

Cash balance                      $166,436

c) Note received by bank      25,000

c) Interest on the note             1,500

d) Returned check                 (3,600)

e) Bank charges                         (55)

Adjusted cash balance     $189,281

b) Balance as per bank statement = $195,688

a.  Checks outstanding totaled           ($19,427)

b.  A deposit of                                     $12,300

e. Overstated cheque                               720

Adjusted bank statement balance   $189,281

c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance.  After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.

Answer:

Cost of goods purchased= $161,560

Cost of goods sold= $165,050

Explanation:

1. Cost of goods purchased (net) = Purchases - Purchase discount - purchase returns and allowances + Freight in

= $164,250 - $7,230 - $4,190 + $8,730

=$161,560

2. Cost of goods sold = Beginning inventory + Net purchase - Ending inventory

= $32,660 + $161,560 - $29,170

= $165,050

Answer:

d. $864,000 decrease in profits.

Explanation:

Hinge Division's total cost per unit:

variable $26

fixed $17

total $43

sales price $58

contribution margin $32

profit margin $15

                               Alternative A           Alternative B        Differential

                               intercompany          outside                 amount

money paid to                        $0            $1,696,000         ($1,696,000)

outside vendor

variable costs             $832,000                          $0             $832,000

fixed costs                  $544,000              $544,000                         $0

total costs                 $1,376,000          $2,240,000           ($864,000)

If the hinges are purchased form an outside vendor, the corporation's total profits will decrease by $864,000.