Answer: Subjective judgments
Explanation:
Point factor method is an important method used during job evaluation. The responsibilities, requirements, and every other aspects of the job will be evaluated by using some set of standardised factors whereby points will be given to every job description.
It I based on subjective judgements because it is based on the personal judgement of the individual rating as no formal calculations will be made but just the opinion of the subject and also his or her past experience.
On January 1, 2014 (the date of grant), Lutz Corporation issues 2,780 shares of restricted stock to its executives. The fair value of these shares is $78,300, and their par value is $11,400. The stock is forfeited if the executives do not complete 3 years of employment with the company.Prepare journal entries for January 1, 2014, and on December 31, 2014, assuming the service period is 3 years.
Answer:
Lutz Corporation Journal entry
1/1/14
Dr Unearned Compensation 78,300
Paid-in Capital in Excess of Par 66,900
($78,300-11,400)
Cr Common Stock 11,400
12/31/14
Dr Compensation Expense 26,100
(78,300/3years)
Cr Unearned Compensation 26,100
Explanation:
On January 1 2014 fair value of shares was $78,300, and their par value is $11,400 we have to Debit Unearned Compensation with 78,300 and credit Paid-in Capital in Excess of Par with 66,900 ($78,300-11,400) and Common Stock with 11,400.
On 12 December 2014 the stock will be forfeited if the executives do not complete 3 years of employment with the company which means we have to Debit Compensation Expense with 26,100(78,300/3years) and Credit Unearned Compensation with 26,100.
Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows: Sales (168,000 units) $1,010,000 Less: Cost of goods sold 690,000 Gross margin 320,000 Operating expenses 400,000 (includes $55,000 of fixed costs) Operating income -$80,000 Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month. What is the budgeted operating income for March 2018
Answer:
February Kaizen Budgeted Operating income -$ 69,650
March Kaizen Budgeted Operating income-$ 59,405.5
Explanation:
The Kaizen costing primarily focuses on production processes and in it the cost reductions are obtained through increasing efficiency.
Sales (168,000 units) $1,010,000
Less: Cost of goods sold 690,000
Gross margin 320,000
Operating expenses 400,000 (includes $55,000 of fixed costs)
Operating income -$80,000
Calculations For February
Decrease by 1% of COGS $ 690,000= $ 690,000-$6900=$ 683,100
Decrease by 1% of Variable Expenses $ 345000= $ 345000-3450= $ 341550
Budgeted Operating Income Under Kaizen Costing For February
Sales (168,000 units) $1,010,000
Less: Cost of goods sold 683,100
Gross margin 326,900
Operating expenses
Variable Expenses $ 341550
Fixed Costs $55,000
Operating income -$ 69,650
Calculations For March
Decrease by 1% of COGS $ 683,100= $ 683,100-$6831=$ 676,269
Decrease by 1% of Variable Expenses $ 341 550= $ 341550-3415.5= $ 338134.5
Budgeted Operating Income Under Kaizen Costing For March
Sales (168,000 units) $1,010,000
Less: Cost of goods sold $ 676,269
Gross margin 333,731
Operating expenses
Variable Expenses $ 338134.5
Fixed Costs $55,000
Operating income -$ 59,405.5
In the early 1980's, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson & Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders". Johnson & Johnson's actions illustrate:a) The power of the Food and Drug Administrationb) How managing negative publicity is impossiblec) The importance of sacrificing short-term profits for long-term credibilityd) The need to combat negative publicity with facts in order to maintain sales levelse) The importance of sustainability on public perception and the bottom line
Answer: c) The importance of sacrificing short-term profits for long-term credibility.
Explanation:
The Chicago Tylenol Murders of September–October 1982 shocked the United States and claimed the lives of 7 people and was due to a poisoned Tylenol capsules which is produced under a Johnson and Johnson subsidiary.
Johnson & Johnson have been hailed as heroes for their response to the issue because even though the facts showed that they were in the clear, they still not only sacrificed huge short term profits by recalling thousands of tablets but by also offering a massive reward for anyone who would come forward with information that would lead to the arrest of perpetrators.
This act of Corporate Altruism saved the company's brand because people were humbled by the lengths Johnson & Johnson went to.
This endeared the Johnson & Johnson brand in their hearts as a Credible company and proved infinitely beneficial in the long run.
This proves that sacrificing short term profits for long term credibility is quite beneficial.
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones.
Pictech Pricing Pictech Pricing
High Low
Flashfone Pricing High 11,11 3,15
Flashfone Pricing Low 15,3 9,9
For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $15 million, and Pictech will earn a profit of $3 million. Assume this is a simultaneous game and that Flashfone and Pictech are both profit-maximizing firms.
If Flashfone prices high, Pictech will make more profit if it chooses a _____ price, and if Flashfone prices low, Pictech will make more profit if it chooses a _____ price.
If Pictech prices high, Flashfone will make more profit if it chooses a _____ price, and if Pictech prices low, Flashfone will make more profit if it chooses a _____ price.
Considering all of the information given, pricing low _____ a dominant strategy for both Flashfone and Pictech.
If the firms do not collude, what strategies will they end up choosing?
(i) Flashfone will choose a low price, and Pictech will choose a high price.
(ii) Both Flashfone and Pictech will choose a high price.
(iii) Flashfone will choose a high price, and Pictech will choose a low price.
(iv) Both Flashfone and Pictech will choose a low price.
The game between Flashfone and Pictech is an example of the prisoners' dilemma
(i) True
(ii) False
Answer:
A. Low
Low
B. Low
Low
C. Pricing low is a dominant strategy for both firms.
D. (iv) Both Flashfone and Pictech will choose a low price.
E. True
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.
If either firm prices high, the best strategy for the other firm is to charge low. This is because the firm that charges low earns a profit of 15 which is the highest amount of profit that can be earned in this case. If the other firm also charges low, it would earn a profit of 9 which is less than 15
If either firm prices low, the best strategy for the other firm is to charge low. Its this strategy that yields the highest profit for the firm in this case. If the other firm a charges high, it would earn a profit of 3 which is less than 9.
If both firms do not collude (they do not agree on the price to sell), the best strategy is to price low because the payoffs of pricing low (15,9) is greater than the payoff of pricing high (3,11).
It is a prisoners dilemma because the nash equilibrium is not the best option for either firms. The best strategy is colluding and keeping the price high. Hence it is a prisoners' dilemma
I hope my answer helps you
Consider the following transactions for Partytime Toys:
October 8 Partytime Toys buys $141,800 worth of MegoBloack toys on account with credit terms of 2/10, n/30
October 11 Partytime Toys returns $14,100 of the merchandise to MegoBlock due to damage during shipment.
October 15 Partytime Toys paid the amount due, less the return and discount.
Required
1. Journalize the purchase transactions. Explanations are not required.
2. In the final analysis, how much did the inventory cost Partytime Toys?
Answer:
1. Journalize the entries:
October 8:
Dr Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
2. The inventory cost $114,930 to Party Time Toys.
Explanation:
First, we have to Journalize the entries;
October 8:
Dr. Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
so, The inventory cost $114,930 to Party Time Toys.
What is a Transaction?A transaction is a business event that has a monetary impact on an entity's financial statements and is recorded as an entry in its accounting records. Examples of transactions are as follows:
Paying a supplier for services rendered or goods delivered.
What is a transaction in a bank?A bank transaction is any money that moves in or out of your bank account. Types of bank transactions include cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers, and loan payments.
Learn more about transactions here:https://brainly.com/question/24835236
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Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials$4.70 Direct labor$9.30 Variable manufacturing overhead$9.80 Supervisor's salary$5.20 Depreciation of special equipment$3.60 Allocated general overhead$8.80 An outside supplier has offered to make the part and sell it to the company for $31.90 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part E14 could be used to make more of one of the company's other products, generating an additional segment margin of $34,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part E14 from the outside supplier should be:
Answer:
(29,800)
Explanation:
The computation of the financial advantage or disadvantage is shown below:
As we know that
Financial disadvantage = Cost of making - Cost of buying
where,
Cost of making is
= [(Direct material per unit + direct labor per unit + variable manufacturing overhead per unit) × units produced] + additional segment margin
= [($4.7 + $9.30 + $9.80 + $5.20) × 22,000 units] + $34,000
= ($29 × 22,000 units ) + $34,000
= $672,000
And, the Cost of buying is
= Units produced × offered price
= 22,000 units × $31.90
= $701,800
So,
Financial disadvantage is
= Cost of making - Cost of buying
= $672,000 - $701,800
= (29,800)
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? Cumlative Non Cumlativepreferred Dividends for 2018 preferred Dividends in arrears for 2017 Remaining Dividends to common stockholders Total Dividens:
Answer:
1.
Preferred stock dividends to be paid in 2018 = $20000
Common stock dividends to be paid in 2018 = $2000
2.
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = $12000
Explanation:
The preferred stock dividends are always paid before the common stock dividends.
Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.
Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.
1.
If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000
Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000
2.
If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000
Depreciation for Partial Periods Bar Delivery Company purchased a new delivery truck for $45,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 150,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 20,000 miles in 2020. Bar computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $ 2020 $ Sum-of-the-years'-digits method 2019 $ 2020 $ Double-declining-balance method 2019 $ 2020 $ Activity method 2019 $ 2020 $ For each method, what is the book value of the machine at the end of 2019
Answer:
Instructions are below.
Explanation:
Giving the following information:
Purchasing price= $45,000
Useful life= 10 years
Salvage value= $3,000
Activity base= 150,000 miles
The truck was driven 12,000 miles in 2019 and 20,000 miles in 2020.
We need to calculate the depreciation expense for 2019 and 2020.
Straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
General= (45,000 - 3,000)/10= $4,200
2019:
Depreciation= (4,200/12)*9= $3,150
Book value= 45,000 - 3,150= 41,850
2020:
Depreciation= $4,200
Book value= $37,650
Double-declining balance:
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Depreciaiton= [(2*4,200)/12]*9= $6,300
Book value= 35,700
2020:
Depreciation= 2*[(35,700/10)]= $7,140
Book value= 35,700 - 7,140= $28,560
Activity-based:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
2019:
Depreciation= [(45,000 - 3,000)/150,000]*12,000= $3,360
Book value= 45,000 - 3,360= $41,460
2020:
Depreciation= 0.28*20,000=$5,600
Book value= 41,460 - 5,600= $35,860
Answer:
deded
Explanation:
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 620,000 Annual net cash flows $ 86,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 6 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be:
Answer:
7.2 years
Explanation:
Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.
Amount invested = $620,000
Cash flow = $86,000
Payback period = $620,000 / $86,000 = 7.2 years
I hope my answer helps you
When a grocery store makes sure they always have 10 extra dozen eggs in the back storage area "just in case" they are needed, this type of inventory is typically called: A. Cycle Stock B. Safety Stock C. Anticipation Inventory D. Transportation Inventory E. Smoothing Inventory
Answer: Safety Stock
Explanation:
Safety stock is the additional quantity of a product that is kept by a company on its inventory so to reduce the risk of running out of the item in stock. The safety stock can be used when the sales of the product is more than the planned sales.
Regarding the question, when a grocery store makes sure they always have 10 extra dozen eggs in the back storage area "just in case" they are needed, this type of inventory is typically called the safety stock.
Problem 7-4A Accounts receivable transactions and bad debts adjustments LO C1, P2, P3Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.Year 1Sold $1,351,000 of merchandise (that had cost $976,900) on credit, terms n/30.Wrote off $20,300 of uncollectible accounts receivable.Received $671,700 cash in payment of accounts receivable.In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would be uncollectible.Year 2Sold $1,525,600 of merchandise (that had cost $1,329,200) on credit, terms n/30.Wrote off $31,700 of uncollectible accounts receivable.Received $1,354,800 cash in payment of accounts receivable.In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would be uncollectible.Required:Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.)
Answer:
Liang CompanyGeneral Journal:
Year 1
Debit Accounts Receivable $1,351,000
Credit Sales Revenue $1,351,000
To record sales on credit, terms n/30.
Debit Uncollectible Accounts Expenses $20,300
Credit Accounts Receivable $20,300
To write off uncollectibles.
Debit Cash Account $671,700
Credit Accounts Receivable $671,700
To record the receipt of cash on account.
Year 2:
Debit Accounts Receivable $1,525,600
Credit Sales Revenue $1,525,600
To record the sales of goods on credit, terms n/30.
Debit Uncollectible Expenses $31,700
Credit Accounts Receivable $31,700
To write off uncollectibles.
Debit Cash Account $1,354,800
Credit Accounts Receivable $1,354,800
To record the receipt of cash on account.
Adjusting Journal:
Year 1
Dec. 31
Debit Uncollectible Expenses $3,988.60
Credit Allowance for Uncollectible Accounts $3,988.60
To record the 1.4% estimated allowance for collectibles.
Year 2:
Dec. 31
Debit Allowance for Uncollectible Accounts $802.20
Credit Uncollectible Expense $802.20
To bring the balance of Allowance for Uncollectible Accounts to 1.4% accounts receivables
Explanation:
Dec. 31, Year 1:
i) Accounts Receivable Balance:
Sales = $976,900
Uncollectible $20,300
Cash receipts $671,700
Balance = $284,900
ii) Allowance for Uncollectible Accounts = $3,988.60 ($284,900 x 1.4%)
Year 2:
Dec. 31, Year 2:
i) Accounts Receivable Balance:
Beginning balance = $284,900
Sales = $1,329,200
Uncollectible $31,700
Cash receipts $1,354,800
Balance = $227,600
ii) Allowance for Uncollectible Accounts:
Beginning balance = $3,988.60
Reduction Difference = $802.20 ($3,186.40 - $3,988.60)
Year 2 Allowance = $3,186.40 (($227,600 x 1.4%)
A monetarist would argue that a. prices are inflexible. b. wages are inflexible. c. changes in M in the short run can cause Real GDP to fall. d. large changes in M could be offset by changes in V and not cause changes in P.
Answer:
The correct answer is the option C: changes in M in the short run can cause Real GDP to fall.
Explanation:
To begin with, the monetarist economists are the one that support the idea of not having any intervention from the government regarding the economy and moreover they are the ones whose ideology focus mainly in the money, as it name indicates. Therefore that when the government decides in the short run to increase the amount of the money supply then the monetarists argue that the action done by them will cause the Real GDP to fall because of the high inflation that it will cause the increase of the money supply and consequently low demand, etc.
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $1,000, terms 2/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $300. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley
Answer:
$686
Explanation:
the journal entries necessary to record the sale:
June 15, inventory sold on account to Sunglass Hut, terms 2/10, n/30
Dr Accounts receivable 1,000
Cr Sales revenue 1,000
June 20, partial return of purchase from Sunglass Hut
Dr Sales returns and allowances 300
Cr Accounts receivable 300
June 24, invoice is paid within discount period
Dr Cash 686
Dr Sales discounts 14
Cr Accounts receivable 700
A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Complete the two journal entries (the first for the revenue part of the transaction and the second for the cost part) to record the sales transaction by selecting the account names and dollar amounts from the drop-down menus. Date Account Title Debit Credit April 4 select select select select select select select select select select select select Slide 3
Answer:
1. Dr Account receivable 5,000
Cr Sales 5,000
2.Cost of goods sold 2,400
Cr Merchandise inventory 2,400
Explanation:
Preparation of the two journal entries
1. The record of the revenue part of the transaction
Since we were told that the seller on April 4, sells $5,000 in merchandise using perpetual inventory system this means we have to record the transaction as :
Dr Account receivable 5,000
Cr Sales 5,000
2.The record of the cost part of the transaction
Since we were told the merchandise cost $2,400 this means we have to record the transaction as:
Cost of goods sold 2,400
Cr Merchandise inventory 2,400
Taco Hut purchased equipment on May 1, 2021, for $12,000. Residual value at the end of an estimated eight-year service life is expected to be $3,000. Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)
Answer:
Depreciation expense in 2021 = $750
Depreciation expense in 2021 = $1125
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($12,000 - $3,000) / 8 = $1125
Depreciation expense each year would be $1125.
Depreciation expense in 2021
There are 12 months in a year, so the depreciation expense each month would be $1125 / 12 = $93.75
Number of months in 2021 for which asset is used ( May to December) = 8 months
$93.75 x 8 = $750
Depreciation expense in 2022 would be $1125 since the machine was used for a full year.
I hope my answer helps you
From the dropdown box beside each numbered balance sheet item, select of its balance sheet classification.
Account Title Classification
1. Prepaid rent (2 months of Rent) 11. Mortgages payable (due in 6 years)
2. Equipment 12. Automobiles
3. Repairs expense 13. Notes payable (due in 3 years)
4. Land (used in operations) 14. Land held for future expansion
5. Depreciation expense -Building 15. Notes payable (due in 2 months)
6. Office equipment 16. Notes receivable (due in 2 years)
7. Common stock 17. Interest paya ble (due in 1 week)
8. Buildings 18. Long-term investment in stock
9 Bonds payable (due in 10 years) 19. Wages payable
10. Accumulated depreciation-Trucks 20. Office supplies
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity
Answer:
Balance Sheet Classifications:
Account Title Classification
1. Prepaid Rent Prepaid Rent Current Assets
2. Equipment Property, Plant, & Equipment Plant Assets
4. Land Land Long-term assets
5. Land Land Long-term assets
6. Office Equipment Property, Plant & Equipment Plant Assets
7. Common Stock Common Stock Equity
8. Buildings Property, Plant & Equipment Plant Assets
9. Bonds Payable 10-year Bonds Payable Long-term Liabilities
10. Accumulated Depreciation -Truck Contra account to Long-term assets
11. Mortgages Payable 6-year Mortgages Long-term liabilities
12. Automobiles Automobiles Long-term assets
13. Notes payable 3-year Notes Payable Long-term liabilities
14. Land Land Long-term assets
15. Notes payable 2-month Notes Payable Current liabilities
16. Notes Receivable 2-year Notes Receivable Long-term assets
17. Interest Payable Interest Payable Current liabilities
18. Long-term investment in stock Long-term investments
19. Wages Payable Wages Payable Current liabilities
20. Office Supplies Office Supplies Current assets
Explanation:
a) Current assets are short-term financial resources owned by the entity from which economic benefits will accrue. They are mainly used as working capital to generate more revenue.
b) Long-term investments are investments in securities like bonds and stock held by the entity to generate interests and dividends.
c) Plant assets are property, plants, and equipment which are non current assets being used for the long-term in the running of the business, e.g. building.
d) Intangible assets are assets which are not physical in nature. Examples of intangible assets are patents and copyrights, mining rights, and intellectual property.
e) Current liabilities are financial obligations of the entity which must be settled with financial resources within a calendar year or less. Examples: Wages Payable, Accounts Payable, and Unearned Revenue.
f) Long-term liabilities are liabilities (financial obligations) which an entity settles with financial resources that can last for more than a calendar year. Examples included Bonds, Notes, and other payables which are not current.
g) Equity refers to the ownership interest in an entity. This is what the owners of the business are entitled when other creditors have been settled. It is made of contributed capital and retained earnings.
Grouper Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis. Item Quantity Cost Cost to Estimated Cost Of Normal NO. Per Replace Selling Completion Profit Unit Price and Disposal 1,320 1,500 $3.87 $3.63 $5.45 $0.421333 1,200 3.27 2.78 4.24 0.61 1426 1,100 5.45 4.48 6.05 0.48 1437 1,300 4.36 3.75 3.87 0.30 1510 1,000 2.72 2.42 3.93 0.97 1522 1,200 3.63 3.27 4.60 0.48 1573 3,300 2.18 1.94 3.03 0.91 1626 1,300 5.69 6.29 7.26 0.61 From the information above, determine the amount of Grouper Company inventory.
Answer:
Normal profit was missing, so I looked for it:
Item Q Cost Cost to Estimated Cost Normal*
No. p/ unit replace selling price of Completion profit
and Disposal
1320 1,500 $3.87 $3.63 $5.45 $0.42 $1.38
1333 1,200 $3.27 $2.78 $4.24 $0.61 $0.67
1426 1,100 $5.45 $4.48 $6.05 $0.48 $0.47
1437 1,300 $4.36 $3.75 $3.87 $0.30 $0.25
1510 1,000 $2.72 $2.42 $3.93 $0.97 $1.18
1522 1,200 $3.63 $3.27 $4.60 $0.48 $0.84
1573 3,300 $2.18 $1.94 $3.03 $0.91 $0.93
1626 1,300 $5.69 $6.29 $7.26 $0.61 $1.56
we have to first determine the ceiling NRV and floor NRV
Item Cost to Estimated Cost NRV NRV
No. replace selling price of Completion ceiling floor
and Disposal
1320 $3.63 $5.45 $0.42 $5.03 $3.65
1333 $2.78 $4.24 $0.61 $3.63 $2.96
1426 $4.48 $6.05 $0.48 $5.57 $5.10
1437 $3.75 $3.87 $0.30 $3.57 $3.32
1510 $2.42 $3.93 $0.97 $2.96 $1.78
1522 $3.27 $4.60 $0.48 $4.12 $3.28
1573 $1.94 $3.03 $0.91 $2.12 $1.19
1626 $6.29 $7.26 $0.61 $6.65 $5.09
we have to determine the market value:
Item Cost to NRV NRV Market value
No. replace ceiling floor (middle of the 3)
1320 $3.63 $5.03 $3.65 $3.63
1333 $2.78 $3.63 $2.96 $2.96
1426 $4.48 $5.57 $5.10 $5.10
1437 $3.75 $3.57 $3.32 $3.57
1510 $2.42 $2.96 $1.78 $2.42
1522 $3.27 $4.12 $3.28 $3.28
1573 $1.94 $2.12 $1.19 $1.94
1626 $6.29 $6.65 $5.09 $6.29
Item Market value Cost Quantity Inventory
No. per unit value
1320 $3.63 $3.87 1,500 $5,445
1333 $2.96 $3.27 1,200 $3,552
1426 $5.10 $5.45 1,100 $5,610
1437 $3.57 $4.36 1,300 $4,641
1510 $2.42 $2.72 1,000 $2,420
1522 $3.28 $3.63 1,200 $3,939
1573 $1.94 $2.18 3,300 $6,402
1626 $6.29 $5.69 1,300 $7,397
total $39,406
Identify the key elements to incorporate when making a request for a claim or adjustment. Check all that apply. Communicating feelings politely Excessive detail Chronology of details Moderate tone Logical case Sincere praise
Answer:
1. Communicating feelings politely
2. Moderate tone
3. Logical case
4. Sincere praise
Explanation:
In the quest of engaging in business transactions between individuals and businesses, the business might sometimes not meet up to the customer's needs. When customers want to make their claims or request for an adjustment, it is vital that they communicate their feelings in a polite manner, use a moderate tone, build their case logically, and offer sincere praise to the organization in question. In so doing, their claims can be addressed in a civil manner and they would be more likely to get a positive result.
Offering excessive details and bombarding the organization with the chronology of details might lead to confusion as to the real problems to be addressed.
Hannah and Ellen rely on consistent messages received via word of mouth and are older and more conservative than other customers of Product X. Hannah and Ellen most likely fall into which of the following categories?a. late majority
b. early majority
c. laggards
d. innovators
Answer:
they fall into early majority
Torque Manufacturing forecasts that its production will require 600,000 tons of bauxite over its planning period. Demand for Torque's products is stable over time. Ordering costs amount to an average of $15.00 per order. Holding costs are estimated at $1.25 per ton of bauxite. If Torque uses an inventory quantity of 3,000 tons, what will be the total annual cost of inventory
Answer:
Total annual cost of inventory is 4875.
Explanation:
The demand for bauxite by Torque manufacturing (A) = 600000 tons.
It is given that the demand is stable.
The average ordering cost of bauxite (O) = $15 per order.
The cost of holding to bauxite (CP) = $1.25 per ton.
The economics order quantity (EOQ) = 3000
The total annual cost of inventory = ordering cost + inventory cost
[tex]\text{Total annual cost} = \frac{A}{EOQ} \times O + \frac{EOQ}{2} \times CP \\[/tex]
[tex]\text{Total annual cost} = \frac{600000}{3000} \times 15 + \frac{3000}{2} \times 1.25 = 4875[/tex]
Sunshine LLC sold furniture for $75,650. Sunshine bought the furniture for $89,870 several years ago and has claimed $24,935 of depreciation expense on the machine. What is the amount and character of Sunshine's gain or loss
Answer:
The gain is $10,715
Explanation:
Solution
Given that:
The cost of furniture =$89,870
Accumulation of depreciation = $24,935
Thus
The book value of furniture= $89,870 - $24,935
=$64,935
The sale value of the furniture = $75,650
Now,'
The gain on sale of the furniture is given below:
Gain on sale of furniture = sale price - book value
= $75,650 - $64,935
=$10,715
The gain is The long term capital gain on sale of furniture is $10,715
Kathryn is looking for ideas on how best to grow her small business. She and her three partners sit down to brainstorm suggestions. Which of the following rules will help ensure a positive brainstorming session?
A. Let everyone jump in to the conversation.
B. Offer criticisms of ideas right away so you don't waste time.
C. Don't be too focused…let your mind wander.
D. Focus on the quality of the ideas…not the quantity.
E. Encourage wild ideas.
Answer:
B
Explanation:
So you dont waste ur time
Encouraging wild ideas of the following rules will help ensure a positive brainstorming session. Thus, option D is correct.
What is brainstorming suggestions?Various teams often employ brainstorming to come up with solutions to definite design issues. Teams address a topic using techniques, and inquiries in a supervised condition and a free-thinking atmosphere.
They generate a wide range of concepts and connect them to identify probable answers. As there is a group in which there are small businesses that is present. Therefore it is important that every idea is validated and looked for.
Also encouraging ideas will help to gain more perspective of the employees and the business as well as the consumer. Therefore, option D is the correct option.
Learn more about brainstorming suggestions, here:
https://brainly.com/question/2888896
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On March 31. 2019, Home Decorating Pavilion received a bank statement showing a balance of $9,810. The balance in the firm's checkbook and Cash account on the same date was $10,276. The difference between the two balances is caused by the items listed below.
a. A $2,935 deposit made on March 30 does not appear on the bank statement.
b. Check 358 for $515 issued on March 29 and Check 359 for $1,710 published on March 30 have not yet been paid by the bank.
c. A credit memorandum shows that the bank has collected a $1,200 note receivable and interest of $120 for the firm.
d. A service charge of $31 appears on the bank statement.
e. A debit memorandum shows an NSF check for $555. The check was Issued by Dane Jarls, a credit customer.)
f. The firm's records indicate that Check 341 of March 1 was issued for $900 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $800.
g. The bank made an error by deducting a check for $590 issued by another business from the balance of Home Decorating Pavilion's account.
Required:
1. Prepare a bank reconciliation statement for the firm as of March 31, 2019.
2. Prepare a bank reconciliation statement for the firm as of March 31, 2019. (Enter all amounts as positive values.)
Answer:
Both requirements 1 and 2 are the same, but I guess one refers to a bank reconciliation statement and the other one to a cash account reconciliation.
Bank account reconciliation:
bank balance $9,810
+ deposits in transit $2,935
- outstanding checks 358 and 359 ($2,225)
+ check deducted by mistake $590
reconciled bank account $11,110
Cash account reconciliation:
Cash account balance $10,276
+ note and interest collected $1,320
- bank fees ($31)
- NSF check Dane Jarls ($555)
+ error on check 341 $100
reconciled cash account $11,110
AllCity, Inc., is financed 36 % with debt, 14 % with preferred stock, and 50 % with common stock. Its cost of debt is 5.7 %, its preferred stock pays an annual dividend of $ 2.45 and is priced at $ 29. It has an equity beta of 1.13. Assume the risk-free rate is 2.4 %, the market risk premium is 7.3 % and AllCity's tax rate is 35 %. What is its after-tax WACC? g
Answer:
WACC is 7.84%
Explanation:
First we need to calculate the after-tax cost of debt
Cost of Debt (after Tax) = Pre-tax cost of debt ( 1 - Tax rate )
Cost of Debt (after Tax) = 5.7% x ( 1 - 35% ) = 3.705%
Now calculate the cost of preferred share
Cost of preferred share = Dividend on Preferred share / Market value of preferred share
Cost of preferred share = $2.45 / $29 = 0.0845 = 8.45%
Now calculate the cost f equity
Cost of equity = Rf + Beta x Market risk premium
Cost of equity = 2.4% + 1.13 x 7.3%
Cost of equity = 2.4% + 8.249%
Cost of equity = 10.649%
Now use following formula to calclulate the WACC
WACC = ( Cost of Equity x Weight of common stock ) + ( Cost of Debt x Weight of Debt ) + ( Cost of preferred share x weight of preferred share )
WACC = ( 10.649% x 50% ) + ( 3.705% x 36% ) + ( 8.45% x 14% )
WACC = 5.3245% + 1.3338% + 1.183%
WACC = 7.8413%
The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The journal entry to record the transfer of costs from work in process to finished goods is
Answer:
Finished Goods $540,000 Debit
Work In Process $540,000 Credit
Explanation:
The journal entry to record the transfer of costs from work in process to finished goods is
Finished Goods $540,000 Debit
Work In Process $540,000 Credit
This means that finished goods have been debited with the amount $ 540,000 and work in process has credited an amount $ 540,000. In other words work in process has been transferred to the finished goods account.
The amount which was sold and shipped to customers was $ 375,000. It is related to sales .It means sales of goods costing $375,000 had been shipped.
The expected average rate of return for a proposed investment of $636,800 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $191,560 for the 4 years is (round to two decimal points)
Answer: 15.96
Explanation:
The expected rate of return will be the Average income divided by the average cost.
It is stated that the asset has a useful life of 4 years with no residual value so at the end of 4 years it will be worth $0.
The Average Cost/ Value of the Asset is calculated as;
= (Beginning Asset value - Ending Asset Value) / 2
= (600,000 - 0) /2
= 300,000
Total Income of $191,560 for the 4 years so Average income will be,
= 191,560/4
= $47,890
Expected Average Rate of Return = 47,890/300,000
= 15.96%
Computing unit and inventory costs under absorption costing LO P1
Trio Company reports the following information for the current year, which is its first year of operations.
Direct materials $ 13 per unit
Direct labor $ 17 per unit
Overhead costs for the year $100,000 per year
Variable overhead 200,000 per year
Fixed overhead Units produced this year 25,000 units
Units sold this year 19,000 units
Ending finished goods inventory in units 6,000 units
Compute the cost per unit using absorption costing Cost per unit of finished goods using: Absorption costing Cost per unit of finished goods
Determine the cost of ending finished goods inventory using absorption costing
Answer:
Unitary production cost= $42
Ending inventory= $252,000
Explanation:
Giving the following information:
Direct materials $ 13 per unit
Direct labor $ 17 per unit
Fixed overhead costs for the year= $100,000 per year
Variable overhead= 200,000 per year
Units produced this year 25,000 units
Ending finished goods inventory in units 6,000 units
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed and variable cost:
Unitary overhead= (100,000 + 200,000)/25,000= $12
Unitary production cost= 13 + 17 + 12= $42
COGS= 19,000*42= $798,000
Ending inventory= 6,000*42= $252,000
Samantha and Adam own a gardening business together. They each pull weeds from flower beds and rake up leaves for their neighbors. If each decides to specialize in what they are best at, Samantha will
Answer:
Samantha and Adam
Gardening Business:
If each decides to specialize in what they are best at, Samantha will be specializing in either pulling weeds or raking up leaves and benefiting from the principle of Division of Labor.
Explanation:
According to britannica.org, division of labour is "the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to systems of mass production."
Division of labor facilitates the deployment of machinery and technology to complete simple tasks, thereby reducing costs of production, developing specialized talents, and increasing profits. It also makes possible the invention of tools and other forms of innovations. This is because workers who are focused on the same task can learn the tasks in details and develop better solutions from their learning experiences.
GroundCover Pools, Inc., agrees to build a swimming pool for Franci, but fails to complete the job. Franci hires EquiAqua, Inc., to finish the project. Candy may recover from GroundCover:___________.
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
Assume the following cost of goods sold data for a company: 2018$1417000 20171204000 20161018000 If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018
Answer:
39.19%
Explanation:
2018 $1,417,000
2017 $1,204,000
2016 $1,018,000
if 2016 was the base year, then the % from 2016 to 2018 = ($1,417,000 - $1,018,000) / $1,018,100 = 39.19%
we can also calculate the % increase from 2016 - 2017 and from 2017 - 2018 in a similar manner:
2016 to 2017 increase = ($1,204,000 - $1,018,000) / $1,018,100 = 18.27%
2017 to 2018 increase = ($1,417,000 - $1,204,000) / $1,204,100 = 17.69%