Answer:
1. Prepare a retained earnings statement.
Net income = $943,400
Retained earning at May 31, 2018 = $3,792,500
2. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.
Net Total Assets = Stockholder's equity = $4,292,500
Explanation:
1. Prepare a retained earnings statement.
To do this, the income statement is first prepared to obtain the net income as follows:
Clairemont Co.
Income Statement
for the fiscal year ended May 31, 2018
Details $
Sales 11,343,000
Cost of goods sold (7,850,000)
Gross Income 3,493,000
Selling and Distribution expenses:
Sales salaries expense (916,000)
Advertising expense (550,000)
Dep. expense - Store equipment (140,000)
Miscellaneous selling expense (38,000)
Administrative expenses:
Office salaries expense (650,000)
Rent expense (94,000)
Insurance expense (48,000)
Dep. exp - Office equipment (50,000)
Office supplies expense (28,100)
Miscellaneous admin expense (14,500)
Operating income 964,400
Interest expense (21,000)
Net income 943,400
The retained earning statement can therefore, be stated as follows:
Clairemont Co.
Retained Earnings Statement
for the fiscal year ended May 31, 2018
Details $
Retained earnings at June 1, 2017 2,949,100
Net income for the year 943,400
Dividends (100,000)
Retained earning at May 31, 2018 3,792,500
2. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.
Clairemont Co.
Balance sheet
for the fiscal year ended May 31, 2018
Details $ $
Fixed Assets
Office equipment 830,000
Accumulated dep.- office equip (550,000) 280,000
Store equipment 3,600,000
Accumulated dep.- store equip (1,820,000) 1,780,000
Net Fixed Assets 2,060,000
Current Assets
Cash 240,000
Accounts receivable 966,000
Inventory 1,690,000
Estimated returns inventory 22,500
Office supplies 13,500
Prepaid insurance 8,000
Total current assets 2,940,000
Current Liabilities
Accounts payable (326,000)
Customer refunds payable (40,000)
Salaries payable (41,500)
Note payable (50,000)
Working Capital 2,482,500
Long-term Liability
Note payable (300,000 - 50,000) (250,000)
Net Total Assets 4,292,500
Financed by:
Common stock 500,000
Retained earning at May 31, 2018 3,792,500
Stockholder's Equity 4,292,500
Note:
Since both the Net Total Assets and Stockholder's equity are to $4,292,500, it implies the financial statement is accurately prepared as both as always be equal.
The Pita Pit borrowed $100,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest are payable in full at maturity on May 1, 2022. In connection with this note, The Pita Pit should report interest expense at December 31, 2021, in the amount of:
Answer:
$2,000
Explanation:
Calculation for Pita Pit Interest amount
Borrowed Amount = $100,000
Interest Amount at December 31st 2021
= $100,000*12/100*2/12
= $2,000
Therefore Pita Pit should report interest expense at December 31, 2021, in the amount of:$2,000
Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Question:
Jackson Corporation has expected return of 12% during recession, 20% during normal, and 40% during boom state of economy. Probability of recession, normal and boom states of economy is 0.25, 0.50, and 0.25 respectively. Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Answer:
23.00
Explanation:
Given:
For Jackson Corporation:
Expected return during recession = 12%
Expected return during normal = 20%
Expected return during boom = 40%
For Economy:
Probability of recession = 0.25
Probability of normal = 0.50
Probability of boom = 0.25
Required:
Find the expected return for Jackson Corporation.
To find expected return, use the expression below:
Expected return = (Probability of Recession * Returns at Recession) + (Probability of Normal * Returns at Normal) + (Probability of Boom * Returns at Boom)
Using the expression above, expected return for Jackson corporation will be calculated as:
Expected return = (25×12%)+(0.50×20%)+(0.25×40%)
= 3 + 10 + 10
= 23%
Expected return for Jackson corporation is 23.00
The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Inventory 7/1/16 $51,100Factory Insurance $4,700Raw Materials Inventory 6/30/17 46,000Factory Machinery Depreciation 19,000Finished Goods Inventory 7/1/16 98,200Factory Utilities 29,100Finished Goods Inventory 6/30/17 26,100Office Utilities Expense 9,350Work in Process Inventory 7/1/16 26,800Sales Revenue 564,000Work in Process Inventory 6/30/17 22,300Sales Discounts 4,700Direct Labor 147,750Plant Manager’s Salary 65,600Indirect Labor 26,560Factory Property Taxes 9,810Accounts Receivable 27,100Factory Repairs 1,600Raw Materials Purchases 97,500Cash 35,600A) Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials).B) Prepare an income statement through gross profitC) Prepare the current assets section of the balance sheet at June 30,2017
Answer:
A) cost of goods manufactured schedule
Factory Insurance 4,700
Factory Utilities 29,100
Factory Machinery Depreciation 19,000
Direct Labor 147,750
Plant Manager`s Salary 65,600
Indirect Labor 26,560
Factory Property Taxes 9,810
Factory Repairs 1,600
Add Beginning Work in Process Inventory 26,800
Less Closing Work in Process Inventory (22,300)
Cost of Goods Manufactured $308,620
B) income statement through gross profit
Sales Revenue 564,000
Less Sales Discounts (4,700)
Net Sales 559,300
Less Cost of Goods Sold :
Finished Goods Inventory 98,200
Add Cost of Goods Manufactured 308,620
Less Closing Finished Goods Inventory (26,100) (380,720)
Gross Profit 178,580
C) current assets section of the balance sheet at June 30,2017
Current Assets
Raw Materials Inventory 46,000
Work in Process Inventory 22,300
Finished Goods Inventory 26,100
Accounts Receivable 27,100
Cash 35,600
Total Current Assets 157,100
Explanation:
Raw Materials Consumed in Production Calculation
Open a Raw Materials T - Account as follows :
Debit :
Opening Balance $51,100
Purchases $97,500
Totals $148,600
Credit :
Closing Balance $46,000
Requisitioned for Production (Balancing figure) $102,600
Totals $148,600
The effect is A. more likely if inflation is unanticipated because workers would not seek higher nominal wages. B. more likely if inflation is unanticipated because workers would seek higher nominal wages. C. less likely if inflation is unanticipated because workers would not seek higher nominal wages. D. less likely if inflation is unanticipated because workers would seek higher nominal wages.
Answer:
more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
Here is the full question:
The effect of the sudden unanticipated spurt of inflation:
A. less likely if inflation is unanticipated because workers would not seek higher nominal wages.
B. less likely if inflation is unanticipated because workers would seek higher nominal wages.
C. more likely if inflation is unanticipated because workers would seek higher nominal wages.
D. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Inflation is a presistent rise in general price level.
Workers compensate for expected inflation by asking for an increase in nominal wages.
Nominal wages = real wages + inflation
If there's an unanticipated rise in inflation, workers would be at a disadvantage because their wages would most likely not reflect this unexpected rise in inflation.
I hope my answer helps you
Answer: A. more likely if inflation is unanticipated because workers would not seek higher nominal wages.
Explanation:
An Unanticipated Spurt in Inflation could lead to rapid Economic growth and this effect is more likely if it was unanticipated because workers would not seek higher nominal wages.
This is because if the workers do not expect prices to rise and hence do not negotiate better wages, the cost of Production for producers will remain the same even though profitability has increased due to the higher prices.
The producers will therefore produce more goods to take advantage of the situation which will further aid Economic growth.
The supplies account has a balance of $1,200 at the beginning of the year and was debited during the year for $2,300, representing the total of supplies purchased during the year. If $650 of supplies are on hand at the end of the year, the supplies expense to be reported on the income statement for the year is Group of answer choices
Answer:
Supplies expense to be recorded = $2,850
Explanation:
Beginning account balance = $1,200
debit during the year = $2,300. This means that a transaction of $2,300 was used for supply purchase during the year
balance on hand = $650
difference between beginning and ending inventory = 1200 - 650 = $550
This means that an expense of $550 was carried out during the year.
Therefore, total expense during year = 550 + purchase expense
= 550 + 2300 = $2,580
Alternatively, the supply expense reported can be calculated with the formula:
Supplies expense = beginning inventory + supplies purchased - ending inventory
Supplies expense = 1200 + 2300 - 650 = $2,850
Based on the supplies opening balance, the supplies purchased and other details, the supplies expense must be $2,850
The supplies expense can be calculated as:
= Beginning balance + Supplies purchased - Closing balance
Solving would give:
= 1,200 + 2,300 - 650
= $2,850
In conclusion, the supplies expense in the income statement will be $2,850
Find out more at https://brainly.com/question/14313516.
Which of the following is not a consequence of minimum wage laws? A) Some workers benefit when the minimum wage is increased. B) Employers will be reluctant to offer low-skill workers jobs with training. C) Low skilled workers are hurt because minimum wage reduces the number of jobs providing low skilled workers with training. D) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
Answer:
D) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage.
Explanation:
Minimum wage law according to all countries of the world is a law type that governs work force of the country and states naturally of employer not hiring workers for less than the given working hours and also gives protection in different forms which include the employee rights and benefits in any situation not withstanding what befalls the said employer or company.
Base pay rate also is been considered as fair pay for the work done. Also, minimum wage protects employees from any form of alterations in every bend of the economy.
Consider two ways of commuting in a crowded city: taking public transportation, such as subway and buses, or driving your own car.
A person who chooses to take public transportation in a crowded city imposes a NEGATIVE OR POSITIVE externality on drivers. A policy implication of this result is a SUBSIDY FOR OR TAX ON those who take public transportation.
Persons who choose to drive their own cars to get around in a crowded city impose a NEGATIVE OR POSITIVE externality on other drivers. A policy implication of this result is a TAX ON OR SUBSIDY FOR those who drive their own cars.
Answer: positive; subsidy for; negative; tax on.
Explanation:
A positive externality occurs when the activities of an economic agent is of benefit to another third party that is not part of the activity or transaction while negative externality is the cost an individual bears due to the market activities of another individual or firm. It should be noted that the third parties didn't plan to incur the costs or benefits mentioned above.
Therefore, an individual who chooses to take public transportation in a crowded city imposes a positive externality on drivers. We are told that the city is overcrowded, therefore using public transportation means there will be lesser vehicles on the road and this will be beneficial to the drivers and there may be subsidy for those who take public transportation.
The people who choose to drive their own cars to get around in a crowded city impose a negative externality because there will be traffic congestion and health hazards and a tax can be imposed on them.
Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)
Limber Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below:
Unit % of completion
Beginning working in progress 18,000 80%
Started into production 81,000
Ending working progress 17,000 * 80%
According to the company's records, the conversion cost in beginning work in process inventory was $15,264 at the beginning of June. Additional conversion costs of $68,208 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)
Answer:
cost per equivalent unit for conversion costs = $0.873
Explanation:
Completed units= opening inventory + started unit - closing inventory
= 18000 + 81,000 - 17,000 = 82 ,000 units
Item units Equivalent unit
Completed units 82,000 100% × 82,000 = 82,000
Production 17,000 80% ×17,000 = 13600
Total equivalent unit 95,600
Cost per equivalent unit= total conversion cost / total equivalent units
= ($15,264 + $68,208)/95,600 units = $0.873
cost per equivalent unit for conversion costs=$0.873
Kenzi kayaking a manufacturer of kayaks began operations this year. During this first year the company produced 1075 kayaks and sold 825 at a price of $1075 each. At this first year-end, the company reported the following income statement information using absorption costing.
Sales (825x $1,075) Cost of goods sold (825x $475) Gross margin Selling and administrative expenses Net income
$886,875 391,875 495,000 210,000 $285,000
Additional Information:
a. Product cost per kayak totals $500, which consists of $400 in variable cost production cost and $100 in fixed production cost- the latter amount is based on 107500 of fixed production cost allocated to the 1075 kayaks produced.
b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135,000 that is fixed.
Required:
Prepare an income statement for the current year under variable costing.
Answer:
Income Statement for the Current Year under Variable Costing
Sales (825 × $1,075) $886,875
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured ( 1075 × $400) $430,000
Less Closing Inventory (250 × $400) ($100,000) ($330,000)
Contribution $556,875
Less Expenses :
Fixed Manufacturing Overheads ($107,500)
Selling and administrative expense : Variable ($75,000)
Selling and administrative expense : Fixed ($135,000)
Net Income / (Loss) $239,375
Explanation:
Under variable costing, only variable costs of production are included in cost of goods sold. Both the Non - Production and Fixed Production Costs are treated as Period Cost Expensed during the year.
Day Corp. holds 10,000 shares of its $10 par value common stock as treasury stock reacquired in Year 2 for $120,000. On December 12, Year 4, Day reissued all 10,000 shares for $190,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to:___________
Answer:
Credit of Additional paid-in capital of $70,000
Explanation:
Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to: Additional paid-in capital of $70,000
Treasury stock reacquired in Year 2 $120,000
Less Year 4, reissued $190,000
Balance $70,000
Hence the $70,000 will be the additional Paid-in capital because the Treasury stock was reacquired in Year 2 $120,000 in which later in Year 4, $190,000 was reissued .
Therefore Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to: Additional paid-in capital of $70,000
Production estimates for August are as follows:
Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 2,000
Expected sales volume (units), August 75,000
For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per pound) 3Ibs
Direct material B ($15 per pound) 1/2 Ib
The number of pounds of matierials A and B required for August production are_____. The total direct materials purchases of materials A and B required for August production is:______.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Production:
Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 2,000
Expected sales volume (units), August 75,000
For each unit produced, the direct materials requirements are as follows:
Direct material A ($5 per pound) 3Ibs
Direct material B ($15 per pound) 1/2 Ib
First, we need to determine the number of pounds required.
Production= sales + desired ending inventory - beginning inventory
Production= 75,000 + 2,000 - 12,000= 65,000 units
Purchases in pounds:
Direct material A= 65,000*3= 195,000
Direct material B= 65,000*0.5= 32,500
Total pounds= 227,500
Now, the cost of direct material:
Direct material cost:
Direct material A= 195,000*5= $975,000
Direct material B= 32,500*15= $487,500
Total= $1,462,500
Kristi sells purses. Her cost is $35 per purse. On a certain day, she sells 12 purses, and her producer surplus for that day amounts to $180. Kristi sold each purse for Group of answer choices $65 $50 $45 $53
Answer:
$50
Explanation:
The computation of the selling price of each purse is shown below:
As we know that
Selling price = Total value ÷ number of purses sold
where,
Total value is
= Cost of the purse × number of purses sold + producer surplus
= $35 × 12 purses + $180
= $600
And, the number of purses sold is 12
So, the selling price of each purse is
= $600 ÷ 12 purses
= $50
The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Kate purchases stock in Pherk, a pharmaceutical company.
Hubert purchases a new condominium in Houston.
Clancy purchases a certificate of deposit at his bank.
Eileen borrows money to build a new lab for her engineering firm."
Answer:
Kate purchases stock in Pherk, a pharmaceutical company.
SAVINGSHubert purchases a new condominium in Houston.
INVESTMENTClancy purchases a certificate of deposit at his bank.
SAVINGSEileen borrows money to build a new lab for her engineering firm.
INVESTMENTIn macroeconomics, investment refers to the goods that we purchase not to be consumed right away, but instead will be used to produce more goods or create wealth in the future. E.g. purchase of equipment, new homes by private consumers, additional inventories, etc.
Savings refers to the money that households have left after paying all their taxes, debts, obligations and consumption expenses. E.g. savings in banks
A pollution haven is A. unattractive for multinational investment because of the ambient pollution. B. a location with weak environmental rules that attracts manufacturing companies due to decreased costs. C. a place that has very low worker wages. D. a place where people actually like pollution and view it as a positive externality.
Answer:
B. a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
Explanation:
A pollution haven is when companies establish factories or offices abroad in countries in which they have lower costs and have access to all the resources they need. Also, these locations tend to be in developing nations in which the environmental standards tend to be lower than the ones in developed nations. According to this, the answer is that a pollution haven is a location with weak environmental rules that attracts manufacturing companies due to decreased costs.
The other options are not right because a pollution haven is attractive for multinational investment because of the lower cost and it is not related to ambient pollution. Also, a pollution haven has low wages but it is not the only thing that defines it and it is not a place where people like pollution.
A company has net income of $187,000, a profit margin of 8.6 percent, and an accounts receivable balance of $126,370. Assuming 60 percent of sales are on credit, what is the company’s days’ sales in receivables?
Answer:
35.35 days
Explanation:
For the computation of company’s days’ sales in receivable first we do the following calculations
As we know that
Profit margin = Net income ÷ Sales
0.086 = 187,000 ÷ Sales
Sales = 2,174,418.605
So,
Credit sales = Sales × Sales percentage
= 2,174,418.605 × 0.6
= 1,304,651.163
Receivables turnover ratio = Credit sales ÷ Receivables
= 1,304,651.163 ÷ 126,370
= 10.3241
Now
Days sales in receivables = 365 ÷ Receivables turnover
= 365 ÷ 10.3241
= 35.35 days
Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of _____. a. outwrestling b. budget maximization c. budgetary slack d. extortion
Answer:
budgetary slack
Explanation:
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000). Information about the company's two products is as follows:
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
If machining hours are used as a base under traditional costing, how much overhead is assigned to Product A1?
Answer:
Allocated MOH= $89,600
Explanation:
Giving the following information:
Tom Company incurs overhead costs each year in its three main departments, setup ($70,000), machining ($34,000), and packing ($56,000).
Product A1 Product B1 Total
Number of setups 7 33 40
Machining hours 2,800 2,200 5,000
Orders packed 280 220 500
Number of products manufactured 560 440 1,000
Under the traditional costing system, the company applies overhead based on a single plantwide predetermined overhead rate.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 160,000/ 5,000
Predetermined manufacturing overhead rate= $32 per machine hour
Now, we can apply overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 32*2,800= $89,600
On December 31, Lowland, Inc., converts its $900,000 par value bonds (carrying value also $900,000) into 90,000 shares of $6 par value common stock. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Lowland, Inc., entry to record this conversion includes a
Dr Bonds Payable $900,000
Cr Common Stock $540,000
( 90,000 shares x $6 par value per share)
Cr Paid-In Capital in Excess of Par Value $360,000
($900,000 -$540,000)
Explanation:
Since Lowland, Inc. converted its $900,000 par value bonds and carrying value also $900,000) into 90,000 shares of $6 par value common stock which means we have to Debit Bonds Payable with $900,000 and Credit Common Stock with $540,000 which is
( 90,000 shares x $6 par value per share) , then Credit Paid-In Capital in Excess of Par Value for $360,000 which is ( value of bonds converted of $900,000 - par value of shares of common stock issued of $540,000).
At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable using the aging of receivables method, the company's management estimates that uncollectible accounts will be $30,000. What will be the amount of bad debts expense reported on the income statement
Answer:
$20,000
Explanation:
From the question above
At the end of 2018, there was a credit balance of $10,000 in allowance for the doubtful accounts.
After proper screening of the account receivable through the use of a method known as 'aging of receivables method' the management of the company estimated that the uncollectible accounts will be $30,000
Therefore, the amount of bad debts expense recorded on the income statement can be calculated as follows
= $30,000-$10,000
= $20,000
Hence the amount of bad debts expense that was recorded on the income statement is $20,000
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 5,000 shares of $20 par value common stock for $120,000 cash. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $28,000. The stock has a $1 per share stated value. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $28,000. The stock has no stated value. A corporation issued 1,250 shares of $75 par value preferred stock for $121,750 cash.
Answer and Explanation:
1. Cash Dr, $120,000
To Common Stock $100,000 (5,000 × $20)
To Additional Paid - in - Capital in Excess of Par $20,000
(Being issue of common stock is recorded)
2. Cash Dr, $28,000
To Common Stock Dr, $2,500 (2,500 × $1)
To Additional Paid - in - Capital in Excess of Stated $31,500
(To record issue of common stock to promoters)
3. Organization Expenses Dr, $28,000
To Common Stock Dr, $28,000
(Being issue of common stock in exchange of organization expenses is recorded)
4. Cash Dr, $121,750
To Preferred Stock $93,750 (1,250 × $75)
To Additional Paid - in - Capital in Excess of Par (Preferred) $28,000
(Being issue of Preferred stock is recorded)
g Assume absorption costing net income is $42000, ending inventory consists of 1100 units, the variable overhead rate is $12 per unit, and the fixed overhead rate is $14 per unit. Determine the net income under variable costing.
Answer:
$26,600
Explanation:
The computation of the net income under variable costing is shown below:
Net income under absorption costing $42,000
Less:
Fixed overhead cost (1,100 units × $14) -$15,400
Net income under variable costing $26,600
We simply deduct the fixed overhead cost from the absorption costing as the variable costing do not include any fixed overhead cost so the same is to be deducted
In the chapter about owning versus leasing, one set of examples compares the cost of owning versus the cost of leasing for Southside Clinic, a not-for-profit organization. The net advantage to owning (versus leasing) for Southside amounted to $676. The difference between the two methods of financing:
Answer: C) is so small that it might be disregarded and may be considered as a nearly neutral comparison between the two methods.
Explanation:
In this chapter reading from the textbook Health Care Finance, it is shown that the Present Value of owning for Southside Clinic is $46,595 and the Present Value cost of leasing is $47,271 which brings the difference to $676.
This figure is considered so small it might be disregarded and may be considered as a nearly neutral comparison between the two methods because it is significantly smaller than the costs associated with either leasing or owning with it being less than 2% of both. It is therefore inconsequential.
Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Method. The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $47 $423 Aug. 13 Purchase 19 units at $50 950 Nov. 30 Purchase 13 units at $51 663 Available for sale 41 units $2,036 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost $
Answer:
a. First-in, first-out (FIFO) $816
b. Last-in, first-out (LIFO) $773
c. Weighted average cost $795
Explanation:
FIFO
FIFO assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
Inventory Cost = Units left × Earliest Price
= 16 units × $51
= $816
LIFO
LIFO assumes that the last goods purchased are the first ones to be issued to the final customer
Inventory : 7 units × $50 = $350
9 units × $47 = $423
total = $773
Weighted Average Method.
The Average cost of goods held is recalculated each time as the new delivery of goods is received. Issues are then priced out at this weighted average cost.
First Calculate the Average Price.
Average Price = Total Cost / Total Units
= ($423 + $950 + $663) / 41 units
= $49.66
Inventory Cost = Units left × Average Price
= 16 units × $49.66
= $794.56 or $795
although appealing to more refined tastes, art as a collectible has not always performed so profitably. assume that in 2015, an auction house sold a statute at auction for a price of $10,479,500. unfortunately for the previous owner, he had purchased it in 2011 at a price of $12,929,500. what was his annual rate of return on this sculpture
Answer:
-5.12%
Explanation:
The annual rate of return can be determined using the future value formula given below:
FV=PV*(1+r)^n
FV is the value of the sculpture in 2015 which is $10,479,500.
PV is the original value of $12,929,500.
n is the number of years the sculpture was owned which is 4 years
r is the unknown
10,479,500=12,929,500*(1+r)^4
10,479,500/12,929,500=(1+r)^4
0.810510847 =(1+r)^4
divide the index on both sides by 4
(0.810510847 )^(1/4)=1+r
0.948832841 =1+r
r=0.948832841 -1
r=-5.12%
Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual manufacturing overhead for the month was $86,800. The manufacturing overhead in the planning budget for July would be closest to:
Answer:
$84,700
Explanation:
The computation of manufacturing overhead in the planning budget for July is shown below:-
Manufacturing overhead in the planning budget = Manufacturing overhead per month + Budgeted hours × Budgeted rate
= $25,700 + 5,900 × $10
= $25,700 + $59,000
= $84,700
Therefore for computing the manufacturing overhead in the planning budget for July we simply applied the above formula.
You purchase one MMM July 129 call contract (equaling 100 shares) for a premium of $21. You hold the option until the expiration date, when MMM stock sells for $141 per share. You will realize a ______ on the investment.
Answer:
There is loss of $900 on investment.
Explanation:
The purchase of 1 MMM July 129 call contract at premium = $21
Since it is given that it is held unit the expiration date.
The selling price of MMM stock = $141 per share.
Total number of shares = 100
Total amount paid for share (purchase price) = 129 + 21 = $150
Loss or profit = Market price on expiration date- purchase price
=141-150
= - 9
Total loss = 9 × 100
=900 loss
At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000. Determine the net realizable value of accounts receivable after adjustment. (Hint: Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts.)
Answer:
1.Net Realizable value $530,500
2.$19,500
Explanation:
1. Calculation for Determining the net realizable value of accounts receivable after adjustment will be
Ending Account receivable $550,000- $19,500
Net Realizable value=$530,500
2. Calculation to determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance for Doubtful Accounts
The Allowance for Doubtful Accounts = $25,000
Using this formula
Bad debts expense = Ending Allowance for Doubtful Accounts - Beginning Allowance for Doubtful Accounts
Let plug in the formula
= 25,000 - 5,500
= $19,500
Suppose that a landlord is interested in renting out a two-bedroom apartment for $1000 a month for the next year. The landlord requires rent to be paid at the beginning of the month, at which point he will deposit the rental check into a local savings account. If the annual interest that the tenant can earn on this account is 5% and interest is compounded monthly, how much will the tenant have in his savings account at the end of the year
Answer:
WHAT
Explanation:
The U.S. dairy cow industry produced milk from just over – million cows in 1924. Today, it relies on just under – million. And yet total milk production today is a little over – what it was in 1924. This is possible because the typical cow produces – as much milk, thanks to strategic breeding and changes in how –.
Explanation:
In the given question, the options of the given question have not been provided but based on previous knowledge about the question, the question can be answered.
The cow during the 1900's produced about 424 gallons of milk every year but the filed of eugenics opened the way for higher production of milk. The aim was to produce more milk at cheaper rate therefore efforts were made to perform breeding experiments with desired traits.
In the present condition, the production of milk has increased from 424 gallons to 2000 gallons due to breeding, higher literacy rate of the Americans and the stable financial system of the states.
Thus, breeding, literacy rate and the stable financial system are the possible ways.
The following adjusting journal entry does not include an explanation. Select the best explanation for the entry. Supplies Expense 730 Supplies 730 ppppppp?Record purchase of supplies. Adjust supplies inventory to actual. Record sale of supplies. Reduce supplies expense.
Answer:
Adjust supplies inventory to actual.
Explanation:
The adjusting entry to record the adjust supplies inventory to actual is shown below:
Supplies expense $730
To Supplies $730
(Being the supplies inventory is adjusted)
For recording this we debited the supplies expense as it increased the expenses and credited the supplies as it decreased the assets
Therefore the second option is correct