Answer:
Bond
Explanation:
It would be like a loan given to a place, government, company, etc. that pays the people (investors) pay a rate of return over a specific timeframe.
Teal Mountain Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Sandhill Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement:
1. Sandhill has the option to purchase the equipment for $19,500 upon termination of the lease. It is not reasonably certain that Sandhill will exercise this option.
2. The equipment has a cost of $190,000 and fair value of $238,500 to Teal Mountain Leasing. The useful economic life is 2 years, with an unguaranteed residual value of $19,500.
3. Teal Mountain Leasing desires to earn a return of 5% on its investment.
4. Collectibility of the payments by Teal Mountain Leasing is probable.
Prepare the journal entries on the books of Teal Mountain Leasing to reflect the payments received under the lease and to recognize income for the years 2017 and 2018.
Answer:
Fair value $238,500
Less: PV of residual value $17,687 (19500*0.90703)
PV of lease payment $220,813
Annual lease = 220813/1.85941
Annual lease = $118,754
Date Account titles and Explanation Debit Credit
1/1/17 Lease receivables $238,500
Cost of goods sold $172,313
Sales $220,813
Inventory $190,000
(To record the lease)
12/31/17 Cash $118,754
Lease receivables $106,829
Interest revenue(238,500*5%) $11,925
(To record the receipts of lease installments)
12/31/18 Cash $118,754
Lease receivables $112,170
Interest revenue(238,500-106829*5%) $6,584
(To record the receipts of lease installments)
12/31/18 Cash $19,500
Lease receivables $19,500
(To record sales of equipment at the end of the lease)
In the welding operations of a bicycle manufacturer, a bike frame has a flow time of about 13.6 hours. The time in the welding operation is spent as follows: 3 hours waiting in front of the cutting machine for the batch to start, 3 hours waiting for the setup of the machine, 1 hour waiting for the other pieces of the batch to go through cutting, 2 minute at the cutting machine, and 3 hours waiting for the transfer to the welding machine. Then, at the welding machine, the unit spends 1 hour waiting in front of the welding machine for the batch to start, 1 hour waiting for the setup of the welding machine, 0.6 hour waiting for the other pieces of the batch to go through welding, 0.65 minute at the welding machine, and 1 hour waiting for the transfer to the next department.
1. Determine the exact flow time.2. What is the value-added percentage of the flow time?
Answer:
Exact flow time in hours
13.64416 hours
% value added flow time = 0.3236
Explanation:
Hours to start = 3
Set up = 3 hours
Time spent cutting = 2 minutes
Time through cutting = 1 hour
Transfer = 3 hours
Time waiting for welding machine = 1 hour
Time for set up = 1 hour
Time waiting for pieces of batch = 0.6 hours
Time at welding machine = 0.65 minutes
Time to transfer to next department = 1 hour
To get the exact flow time we convert the minutes to hour
2 minutes to hour = 2/60 = 0.03333
0.65 minutes to hour = 0.65/60 = 0.01083
We sum up all of these hours
3+3+0.03333+1+3+1+1+0.6+0.01083+1 = 13.64416 hours
1.
13.64416 is the exact flow time in hours.
2.
Value added percentage of flow time
13.64416-13.6
= 0.04416
Percentage = 0.04416/13.64416*100
= 0.003236x100
= 0.3236%
Manson Industries incurs unit costs of $6 ($4 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 15,000 of the assembly part at $5 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Answer:
The decision should be to make the part
Explanation:
Variable cost of manufacturing = 15000x4 = 60000
Fixed cost of manufacturing = 15000 x 2 = 30000
Purchase cost = 15000x5 = 75000
Total annual cost of making = 60000 + 30000 = $90000
Total annual cost of buying is 30000 + 75000 = $105000
90000 - 105,000 = -15000
This shows that manson's cost savings would decrease by -15000
So instead of buying, it is better to make.
Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments:
Molding Polishing Total
Estimated overhead $400,000 $80,000 $480,000
Direct labor hours (expected and actual):
Form A 1,000 5,000 6,000
Form B 4,000 15,000 19,000
Total 5,000 20,000 25,000
Machine hours:
Form A 3,500 3,000 6,500
Form B 1,500 2,000 3,500
Total 5,000 5,000 10,000
Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 25,000 units of Form A produced and sold and 50,000 of Form B.
Required:
a. Calculate the overhead rates for each department.
b. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit.
Answer and Explanation:
The computation is shown below:
1. Overhead rates
For Molding Deptt
= Total Estimated overhead ÷ Total Machine hours
= $400,000 ÷ 5,000
= $80 per machine hour
For Polishing Deptt
= Total Estimated overhead ÷ Total Labor hours
= $80,000 ÷ 20,000
= $4 per machine hour
2. Overheads assigned to Form A is
= (80 × 3500) + (4 × 5000)
= $300,000
Overheads assigned to Form B is
= (80 × 1500) + (4 × 15000)
= $180,000
Now
Overhead cost per unit
Form A = $300,000 ÷ 30,000 = $10 per unit
Form B = $180,000 ÷ 50,000 = $3.6 per unit
On April 1, 2020, Novak Company assigns $505,300 of its accounts receivable to the Third National Bank as collateral for a $327,200 loan due July 1, 2020. The assignment agreement calls for Novak to continue to collect the receivables. Third National Bank assesses a finance charge of 4% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).
Required:
a. Prepare the April 1, 2020, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed’s collection of $364,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2020.
c. On July 1, 2014, Rasheed paid Third National all that was due from the loan it secured on April 1, 2020. Prepare the journal entry to record this payment
Answer:
A. Dr Cash 306,988
Dr Finance Charge 20,212
Cr Notes Payable $327,200
B. Dr Cash $364,000
Cr Accounts Receivable $364,000
C. Dr Notes Payable $327,200
Cr Interest Expense $8,180
Cr Cash $319,020
Explanation:
A) Preparation of the April 1, 2020, journal entry for Prince Company.
Dr Cash 306,988
(327200-20212)
Dr Finance Charge 20,212
($505,300 x 4% = 20212)
Cr Notes Payable $327,200
B. Preparation of the journal entry for Rasheed’s collection
Dr Cash $364,000
Cr Accounts Receivable $364,000
C. Preparation of the journal entry to record this payment
Dr Notes Payable $327,200
Cr Interest Expense $8,180
(10% x $327,200 x 3/12 = 8180)
Cr Cash $319,020
($327,200-$8,180)
Greene, Inc. uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:
Inventories ($ in millions):
2021 2020
Total inventories $800 $650
LIFO reserve (86) (65)
The company's income statement reported cost of goods sold of $3,750 million for the fiscal year ended December 31, 2021.
Fill in the blanks below to provide the amount of 2021 ending inventory, cost of goods sold, and inventory turnover if Greene had used FIFO to value its inventories.
Required:
1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?
Answer:
A. Dr Cost of goods sold$21
Dr LIFO reserve $21
B. $3,729
Explanation:
1. Preparation of the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
December 31, 2021
Dr Cost of goods sold$21
Dr LIFO reserve $21
($86- $65)
2. Calculation to determine what would cost of goods sold have been for the 2021 fiscal year
Cost of goods sold (Income statement)$3,750 million
Less change in LIFO $21
2021 cost of goods $3,729
($3,750-$21)
Therefore what would cost of goods sold have been for the 2021 fiscal year is $3,729
The following facts relate to Duncan Corporation.
1. Deferred tax liability, January 1, 2019, $80,000.
2. Deferred tax asset, January 1, 2019, $30,000.
3. Taxable income for 2019, $115,000.
4. Cumulative temporary difference at December 31, 2019, giving rise to future taxable amounts, $250,000.
5. Cumulative temporary difference at December 31, 2019, giving rise to future deductible amounts, $95,000.
6. Tax rate for all years, 40%. No permanent differences exist.
7. The company is expected to operate profitably in the future.
Required:
a. Compute the amount of accounting income for 2019.
b. Prepare the journal entry to record income tax expense, deferred income taxes, and income payable for 2019
Answer:
Duncan Corporation
a. The amount of the accounting income for 2019 is:
= $270,000
b. Journal Entries:
Debit Income tax expense $46,000
Credit Income tax payable $46,000
To record the income tax expense for 2019.
Debit Deferred tax asset $30,000
Credit Profit and Loss $30,000
To record the deferred tax asset
Debit Profit and Loss $80,000
Credit Deferred tax liability $80,000
To record the deferred tax liability.
Explanation:
a) Data and Calculations:
Taxable income for 2019 = $115,000
add Cumulative temporary difference, giving
rise to future taxable amounts = $250,000
less Cumulative temporary difference, giving
rise to future deductible amounts = $95,000
Accounting income for 2019 $270,000
Income tax expense:
Taxable income = $115,000
Tax rate (40%) 46,000
After-tax income $69,000
Mel is thinking of going on a cruise. Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50. The probability of nice weather is 60% and the probability of bad weather is 40%. Trip insurance is sometimes available. If purchased, it allows travelers to delay the cruise until the weather is nice. If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______. Select one: a. $1,200 b. $1,250 c. $1,220 d. $1,000
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $320,000 and lists a cash selling price of $437,424. Appropriate adjusting entries are made quarterly.
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $24,000 at Jan. 1, 2018, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter.
Economic life of asset 5 years
Interest rate charged by the lessor 4%
Required:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
Answer:
A. In the Books of Eye Deal
1-Jan
Dr Right of use asset $437,424
Cr Lease payabe $437,424
1-Jan
Dr Lease Payable $24,000
Cr Cash $24,000
31-March
Dr Interest expense $4,134.24
Dr Lease Payable $19,865.76
Cr Cash $24,000
31-Mar
Dr Amortization expense$21,871.2
Cr Right of use asset $21,871.2
B. Insight Machines:
1-Jan
Dr Lease receivable $437,424
Cr Cost of goods sold $320,000
Dr Sales revenue $437,424
Cr Equipment $320,000
1-Jan
Dr Cash $24,000
Cr Lease receivable $24,000
31-Mar
Dr Cash $24,000
Cr Interest revenue $4,134.24
Cr Lease receivable $19,865.76
Explanation:
A. Preparation of the appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
In the Books of Eye Deal
1-Jan
Dr Right of use asset $437,424
Cr Lease payabe $437,424
1-Jan
Dr Lease Payable $24,000
Cr Cash $24,000
31-Mar
Dr Interest expense $4,134.24
($437,424-$24,000)*1%
Dr Lease Payable $19,865.76
($24,000-$4,134.24)
Cr Cash $24,000
31-Mar
Dr Amortization expense
($437,424/20) $21,871.2
Cr Right of use asset $21,871.2
B. Preparation of the appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
Insight Machines:
1-Jan
Dr Lease receivable $437,424
Cr Cost of goods sold $320,000
Dr Sales revenue $437,424
Cr Equipment $320,000
1-Jan
Dr Cash $24,000
Cr Lease receivable $24,000
31-Mar
Dr Cash $24,000
Cr Interest revenue
($437,424-$24,000)*1% $4,134.24
Cr Lease receivable $19,865.76
($24,000-$4,134.24)
Interest Rate=4%/4=1%
N=(5 years*4=20 quarterly period)
Accounting for par, stated, and no-par stock issuances LO P1
Rodriguez Corporation issues 16,000 shares of its common stock for $176,900 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
The stock has a $8 par value.
The stock has neither par nor stated value.
The stock has a $4 stated value.
1. Record the issue of 16,000 shares of no par, no stated value common $94,900 cash.
2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.
Answer:
Rodriguez Corporation
Journal Entries:
a. Debit Cash $176,900
Credit Common Stock $128,000
Credit Additional Paid-in Capital $48,900
To record the issue of 16,000 shares at $8 par value.
b. Debit Cash $176,900
Credit Common Stock $176,900
To record the issue of 16,000 shares at no par or stated value.
c. Debit Cash $176,900
Credit Common Stock $64,000
Credit Additional Paid-in Capital $112,900
To record the issue of 16,000 shares at $4 state value.
1. Issue of 16,000 shares of no par, no stated value common $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $94,900
To record the issue of 16,000 shares at no par or stated value.
2. Record the issue of 16,000 shares of $2 stated value common stock for $94,900 cash.
Journal Entry:
Debit Cash $94,900
Credit Common Stock $32,000
Credit Additional Paid-in Capital $62,900
To record the issue of 16,000 shares of $2 stated value for cash.
Explanation:
a) Data and Calculations:
Number of common stock shares issued = 16,000
Cash collected from the issue = $176,900
Date of issue = February 20.
b) When shares are issued at no par or stated value, the corresponding credit for the Common Stock account equals the cash realized. When the par value is less than the issued price, the corresponding credit above the par value is credited to the Additional Paid-in Capital account.
what are the two components of a universal policy?
Answer:
Hey mate.....
Explanation:
This is ur answer.....
Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value. The cost of insurance (COI) is the minimum amount you must pay to keep your policy active. This amount varies based on your age, health, and insured risk amount.
Hope it helps!
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The cost of insurance amount and the savings component amount you must pay to keep your policy active. This amount varies based on your age,health, and insured risk amount.
Bank Reconciliation and Related Journal entries.
The book balance in the checking account of Lyle's Salon as of November 30 is $3,292.08. The bank statement shows an ending balance of $2,118.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
A) An ATM withdrawal of $150 on November 18 by Lyle for personal use was not recorded on the books.
B) A bank debit memo issued for an NSF check from a customer of $19.50.
C) A bank credit memo issued for interest of $19 earned during the month.
D) On November 30, a deposit of $1,177 was made, which is not shown on the bank statement.
E) A bank debit memo issued for $17.50 for bank service charges.
F) Checks No. 549, 561, and 562 for the amounts of $185, $21, and $9.40, respectively, were written during November but have not yet been received by the bank.
G) The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.65, has not yet been received by the bank.
H) Check No. 523 written to a creditor in the amount of $372.90 was recorded in the books as $327.90.
Required:
1. Prepare a bank reconciliation as of November 30.
2. Prepare the required journals entries.
Answer:
Cash (Dr.) $19
Interest Revenue (Cr.) $19
Cash (Dr.) $150
Bank (Cr.) $150
Bank Charges (Dr.) $17.50
Cash (Cr.) $17.50
Explanation:
Bank Reconciliation Statement
Balance as per Bank statement $2,118.00
Less: ATM withdrawals $150
Less: Bank debit memo $19.50
Add: Interest Earned $19
Add: Deposits $1,177
Less: Bank service Charges $17.50
Less: Checks no.549 not presented $185
Less: Checks no.561 not presented $21
Less: Checks no.562 not presented $9.40
Less: Outstanding Checks $271.95
Add: Error in recording $45
Adjusted balance for the reconciliation $2,684.65
A firm with two factories one in Michigan and one in Texas has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plans the last units of output produced in Michigan added $5 to total cost while the last units of output products in Texas added $3 to total the firm
a. is maximizing profit should keep producing 200 units in Michigan and 300 units in Texas
b. should produce 250 units in each factory
c. should produce more in the Michigan factory and less in the Texas factory
d. should produce more in the Texas factory and less in the Michigan factory
Answer: d. should produce more in the Texas factory and less in the Michigan factory
Explanation:
A company stands to benefit more if it produces at less cost because then it can produce more goods or rather make more profit.
This company is is spending $3 to make an additional unit in Texas than in Michigan where it is spending $5.
It is spending less in Texas and should therefore shift more production to Texas so that it can spend even less when producing and therefore become more profitable.
In the A-B-C classification system, items which account for about 15 percent of the annual dollar value, but which account for a majority of the inventory items, would be classified as: Group of answer choices B items. A items plus B items. B items plus C items. C items. A items.
Answer:
C items
Explanation:
ABC analysis is the inventory management technique of inventory management where the inventory would be divided into 3 types i.e. A, B and C and it is based upon the importance and the control. The C category items would contains high percenatge of the total no of items but at the same time they have the less dollar volume due to which they have lower control
Match to correct letter option
1. LRAS
2. Market value
3. Disposable income
4. Real
5. Final
6. Excess reserves
A. Money leftover after taxes are paid
B. Quantity theory of money helps explain the shape of this.
C. Part of GDP s definition that captures the quality of the goods and services.
D. Caused by a fall in the money supply
E. Part of GDPâs definition that means you exclude used goods and services.
F. Sticky prices/wages justifies its shape
G. Part of GDP s definition that means you exclude intermediary goods and services.
H. Used to make loans.
I. Used to cover withdraws.
J. Interest rates are at their lower bound
K. Represents the economy s fundamentals, such as population, capital, and technology.
L. Adjusted for inflation.
M. Caused by a collapse of the stock market.
Answer:
A. Money left over after taxes are paid - Disposable income
B. Quantity theory of money helps explain the shape of this - Real
C. Part of GDP s definition that captures the quality of goods and services - Market Value
D. Caused by a fall in the money supply - Final
E. Part of GDP s definition that means you exclude used goods and services - Real
F. Sticky prices/wages justifies its shape - Final
G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value
H. Used to make loans - Excess reserves
I. Used to cover withdraws - Disposable income
J. Interest rates are at their lower bound - Real
K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS
L. Adjusted for inflation Final
M. Caused by a collapse of the stock market - Market Value
Explanation:
Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.
Creating your own flyer assignment
Answer:
what's the question ...?
Explanation:
2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few trailers on weekends, they estimated that the first trailer would take about $700 of their own labor to build and that an 85 percent learning rate can be anticipated on the cumulative average time as each trailer is built. (Note: They decided that their hourly wages should be no less than those they received in the construction trades.) The material costs for each trailer will be about $500, and the craftsmen do not see any way that this can be reduced. They estimate that each trailer can be sold for $1,000. In addition to making their wages on labor, they want to make 15 percent profit on the trailer materials. How many trailers must be built before this rate of profit can be realized
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
Material Cost Per Trailer = $500
Material Cost plus Profit Per Trailer (15%) = $500 + 75 = $575
Selling Price = $1000
Labor Cost Remaining Per Trailer = $425
Formula to Calculate the number of Trailers:
X = X1 ([tex]N^{S}[/tex])
Where,
N = number of Trailers
S = Slope Parameter
X = $425
X1 = $700
So, First we need to find the slope parameter, in order to calculate the number of trailers to be built.
S = [tex]\frac{log \alpha }{log 2}[/tex]
where, α = 0.85 rate of improvement.
Plugging in the values into the formula, we get:
S = [tex]\frac{log (0.85) }{log 2}[/tex]
S = -0.234
Now, we can easily find the number of trailers.
X = X1 ([tex]N^{S}[/tex])
Plugging in the values,
425 = 700 x ([tex]N^{-0.234}[/tex])
Solving For N, we get:
N = 8.4 Trailers
N = 9 Trailers.
Hence, 9 Trailers must be built in order to realize this rate of profit.
Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February:
Work-in-process inventory, February 1 4,000 trusses
Direct materials: 100% complete $10,480
Conversion: 20% complete $15,258
Units started during February 18,000 trusses
Units completed during February and transferred out 17,000 trusses
Work-in-process inventory, February 29
Direct materials: 100% complete
Conversion: 40% complete
Costs incurred during February
Direct materials $59,040
Conversion $92,092
Required:
Using the FIFO method, calculate the following:
1. Costs per equivalent unit.
2. Cost of goods completed and transferred out.
3. Cost remaining in the ending work-in-process inventory.
Answer:
Part 1
M = $3.28
C = $5.06
Part 2
$141,780
Part 3
$26,520
Explanation:
1. Costs per equivalent unit.
Step 1 ; Equivalent units
Materials = 4,000 x 0 % + 13,000 x 100 % + 5,000 x 100 % = 18,000 units
Conversion Costs = 4,000 x 80 % + 13,000 x 100 % + 5,000 x 40 % = 18,200 units
Step 2 : Cost per Equivalent units
Materials = $59,040 / 18,000 units = $3.28
Conversion Costs = $92,092 / 18,200 units = $5.06
Total = $3.28 + $5.06 = $8.34
2. Cost of goods completed and transferred out.
Cost of goods completed and transferred out = 17,000 trusses x $8.34 = $141,780
3. Cost remaining in the ending work-in-process inventory.
Ending work-in-process inventory = $3.28 x 5,000 + $5.06 x 2,000 = $26,520
Cost of manufacturing is the total cost incurred by the manufacturing unit or the entire department for the production of goods. It is classified into three main categories: direct material cost, direct labor cost, and manufacturing overhead.
Using the FIFO method, the answers are:
1. Cost per equivalent unit:
For the material is $3.28
For the conversion is $5.06
2. Cost of goods completed and transferred out is $141,780
3. Cost remaining in the ending work-in-process inventory is $26,520
Computations:
1. Cost per equivalent unit:
Material:
[tex]\begin{aligned}\text{Cost per equivalent unit}&=\frac{\text{Total Cost}}{\text{Equivalent Units}}\\&=\frac{\$59,040}{18,000\;\text{units}}\\&=\$3.28\end{aligned}[/tex]
Conversion:
[tex]\begin{aligned}\text{Cost per equivalent unit}&=\frac{\text{Total Cost}}{\text{Equivalent Units}}\\&=\frac{\$92,092}{18,200\;\text{units}}\\&=\$5.06\end{aligned}[/tex]
[tex]\begin{aligned}\text{Total cost per equivalent unit}&=\text{Cost per unit for material}+\text{Cost per unit for conversion}\\&=\$3.28+\$5.06\\&=\$8.34\end{aligned}[/tex]
2. Cost of goods completed and transferred out:
[tex]\begin{aligned}\text{Cost of goods completed}&=\text{Units Completed}\times\text{Total Cost of equivalent units}\\&=17,000\;\text{trusses}\times\$8.34\\&=\$141,780\end{aligned}[/tex]
3. Cost of remaining ending work in process inventory:
[tex]\begin{aligned}\text{Ending Work in Process Inventory}&=[\left( \text{Costs per equivalent unit for material}\times\text{Units}\right )\\&+\left( \text{Costs per equivalent unit for conversion}\times\text{Units}\right )]\\&=\left(\$3.28\times5,000\;\text{units}\right )+\left(\$5.06\times2,000\;\text{units} \right ) \\&=\$26,520\end{aligned}[/tex]
To know more about the cost of manufacturing, refer to the link:
https://brainly.com/question/17111259
how to reply to brand collaboration
Answer:
"Thank you so much for reaching out. I'd love to discuss a collaboration and agree we are a good fit. I have some ideas but I'd like to hear from you what your brand needs right now as far as content goes. I look forward to working together!"
Explanation:
Countries like China and other developed economies are in the Neo classical zone. What is the best option for these countries to sustain their economies?
a.
Decrease aggregate demand
b.
Increase aggregate supply
c.
Move back to Keynesian Zone
d.
Move back to intermediate zone
Answer:
c. Move back to Keynesian Zone
Explanation:
The Keynesian zone is a model that states the stable level of GDP is far from potential GDP and that economy is in a period of recession. Unemployment is high and the demands shift from the right to left of the curve. It can be determined by the level of output and employment. The Neoclassical zone will occur when the right side of the curve is fairly vertical, a rise in demand will affect the process but will indirectly impact the output.Tardis Company reports the following costs and expenses for the month of March: Advertising cost $1,200 Rent on manufacturing equipment 3,000 Salary of factory manager 4,300 Depreciation on office equipment 600 Direct materials used 42,000 Salary of sales department manager 4,500 Indirect materials 800 Wages for assembly line workers 28,000 Manufacturing overhead for the month of March is:
Answer:
See below
Explanation:
With regards to the above,
Manufacturing overhead is computed as;
= Depreciation on office equipment + Indirect materials + Salary of factory manager + wages for assembly line workers
= $600 + $800 + $4,300 + $28,000
= $32,800
Therefore, manufacturing overhead for the month of March is $32,800
Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $54 million. Of this amount, $36 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $90 million. During 2022, revenue of $27 million was recognized.
Required:
1. Prepare a journal entry to record the 2021 development costs.
2. Calculate the required amortization for 2022.
3. Determine the amount to report for the computer software costs in the December 31, 2022, balance sheet.
Answer:
a.
Account Title Debit Credit
Research and Development Expense $36,000,000
Software Development Costs $18,000,000
Cash $54,000,000
b. The higher of the Straight-line and Percentage Revenue should be used:
Straight Line method:
= Software Development Costs / useful life
=18,000,000/5
= $3,600,000
Percentage Revenue method:
= Current revenue / Total revenue * Software Development Costs
= 27,000,000/90,000,000 * 18,000,000
= $5,400,000
Amortization = $5,400,000
c. $12,600,000
= Software development cost - Amortization for 2022
= 18,000,000 - 5,400,000
= $12,600,000
The foreign exchange market is a market for converting the currency of one country into that of another country.
a. True
b. False
Answer:
a. True
Explanation:
The foreign exchange market is a market for converting the currency of one country into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three activity cost pools. The activity rate for the Size-Related activity cost pool is $1.13 per guest. (The greater the number of guests, the larger the cake.) The activity rate for the Complexity-Related cost pool is $43.52 per tier. (Cakes with more tiers are more complex.) Finally, the activity rate for the Order-Related activity cost pool is $61.44 per order. (Each wedding involves one order for a cake.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Ericson Wedding Haupt Wedding Number of reception guests 60 162 Number of tiers on the cake 4 3 Cost of purchased decorations for cake $ 16.89 $ 38.61 Assuming that the company charges $500.54 for the Haupt wedding cake, what would be the overall margin on the order
Answer:
$86.87
Explanation:
Calculation for what would be the overall margin on the order
Price of cake $500.54
Less Costs:Size related ($183.06)
($1.13 per guest × 162 guests)
Less Complexity-related ($130.56)
($43.52 per tier × 3 tiers)
Less Order-related ($61.44)
($61.44 per order × 1 order)
Less Cost of purchased decorations for cake ($38.61)
Customer margin $86.87
Therefore would be the overall margin on the order is $86.87
Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 6 percent per year, indefinitely. The required return on this stock is 12 percent and the stock currently sells for $94 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
$26.86
Explanation:
Calculation to determine the projected dividend for the coming year
First step is to calculate the Dividend(D0)=
D0 = $94 * 0.12
Dividend(D0)= $11.28
Second step is to calculate the Expected Dividend growth rate for 3 years (D3) using this formula
Expected Dividend growth rate for 3 years (D3) =D0 (1+g)
Let plug in the formula
D3=$11.28* (1+0.25)^3
D3=$22.03125
Third step is to calculate Dividend in 4th year(D4
Dividend in 4th year(D4)=$22.03125 *1.15
D4 =$25.3359
Now let calculate the Dividend in 5th year(D5
Dividend in 5th year(D5)=$25.3359 * 1.06
Dividend in 5th year(D5)=$26.86
Therefore the Projected Dividend for the coming year will be $26.86
Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $164 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $74. Selected information follows.
Billable hours to clients for the year totaled 8,400, consisting of information systems services, 5,040; e-commerce consulting, 3,360. Administrative cost of $417,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $222,840; in-house computing, $157,000; and miscellaneous office charges, $37,920. A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:
Information Systems Services E-Commerce Consulting Total
Number of clients 255 75 330
Number of computer hours 3,740 2,340 6,080
Number of client transactions 720 840 1,560
Required:
Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm’s information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.
Answer:
Grady and Associates
Profitability based on traditional costing, using billable hours:
Information E-Commerce
Systems Services Consulting Total
Service Revenue $826,560 $551,040 $1,377,600
Administrative cost 250,639 167,093 417,732
Profit ($) $575,921 $383,947 $959,868
Profit (%) 69.68% 69.68% 69.68%
Explanation:
a) Data and Calculations:
Services performed = $164 per hour
Information systems services 5,040
E-commerce consulting 3,360
Billable hours to clients 8,400 hours
Predetermined rate = $417,760/8,400 = $49.73 per hour
Administrative cost = $417,760 consisting of:
Staff support, $222,840 number of clients served
In-house computing, $157,000 number of computer hours logged
Miscellaneous office charges, $37,920 number of client transactions
Information E-Commerce
Systems Services Consulting Total
Number of clients 255 75 330
Number of computer hours 3,740 2,340 6,080
Number of client transactions 720 840 1,560
At year-end (December 31), Chan Company estimates its bad debts as 0.90% of its annual credit sales of $743,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $372 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
Answer:
Chan Company
Journal Entries:
December 31:
Debit Bad Debts Expense $6,687
Credit Allowance for Doubtful Accounts $6,687
To record the bad debts expense.
February 1:
Debit Allowance for doubtful accounts $372
Credit Accounts receivable (P. Park) $372
To write-off bad debt.
June 5:
Debit Accounts receivable (P. Park) $372
Credit Allowance for doubtful accounts $372
To reverse previously written-off debt.
Debit Cash $372
Credit Accounts receivable (P. Park) $372
To record the receipt on account.
Explanation:
a) Data and Calculations:
Annual credit sales = $743,000
Estimated bad debts = 0.90% of credit sales
Estimated bad debts = $6,687 ($743,000 * 0.90%)
December 31:
Bad Debts Expense $6,687
Allowance for Doubtful Accounts $6,687
February 1:
Allowance for doubtful accounts $372
Accounts receivable (P. Park) $372
June 5:
Accounts receivable (P. Park) $372
Allowance for doubtful accounts $372
Cash $372
Accounts receivable (P. Park) $372
Posting to T-Accounts Post the amounts for the following transactions (a) through (f) to the appropriate T-accounts.
a. Receive merchandise inventory costing $9,000, purchased with cash.
b. Sell half of inventory in (a) for $7,500 on credit.
c. Place order for $5,000 of additional merchandise inventory to be delivered next month.
d. Pay employee $4,000 for compensation earned during the month.
e. Pay $7,000 rent for use of premises during the month.
f. Receive full payment from customer in part (b).
Answer:
T-accounts
Cash Account
Account Titles Debit Credit
a. Inventory $9,000
d. Salaries Expense 4,000
e. Rent Expense 7,000
f. Sales Revenue $7,500
Inventory
Account Titles Debit Credit
a. Cash $9,000
b. Cost of goods sold $4,500
Cost of Goods Sold
Account Titles Debit Credit
b. Inventory $4,500
Accounts Receivable
Account Titles Debit Credit
b. Sales revenue $7,500
f. Cash $7,500
Sales Revenue
Account Titles Debit Credit
b. Accounts receivable $7,500
Salaries Expense
Account Titles Debit Credit
d. Cash $4,000
Rent Expense
Account Titles Debit Credit
e. Cash $7,000
Explanation:
a) Data and Analysis:
a. Inventory $9,000 Cash $9,000
b. Cost of goods sold $4,500 Inventory $4,500
b. Accounts receivable $7,500 Sales revenue $7,500
c. No effect.
d. Salaries Expense $4,000 Cash $4,000
e. Rent Expense $7,000 Cash $7,000
f. Cash $7,500 Accounts receivable $7,500
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 34,500 customers, but actually served 29,500 customers. Revenue is $3.89 per customer served. Wages and salaries are $35,000 per month plus $1.29 per customer served. Supplies are $0.59 per customer served. Insurance is $9,200 per month. Miscellaneous expenses are $7,300 per month plus $0.29 per customer served.
Required:Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
Answer:
Varcoe Corporation
Report showing activity variances for September:
Budgeted Actual Variance
Number of customers served 34,500 29,500 5,000 U
Revenue per customer $3.89 $134,205 $114,755 $19,450 U
Expenses:
Wages and salaries ($35,000
plus $1.29 per customer) 79,505 73,055 $6,450 F
Supplies expense ($0.59 per
customer served) 20,355 17,405 2,950 F
Insurance per month 9,200 9,200 0 N
Miscellaneous expense ($7,300
plus $0.29 per customer) 17,305 15,855 1,450 F
Total expenses $126,365 $115,515 $10,850 F
Net income $7,840 ($760) $8,600 U
Explanation:
a) Data and Calculations:
Budgeted Actual
Number of customers served 34,500 29,500
Revenue per customer $3.89 per customer served
Expenses:
Wages and salaries ($35,000 plus $1.29 per customer)
Supplies expense ($0.59 per customer served)
Insurance per month = $9,200
Miscellaneous expense ($7,300 plus $0.29 per customer)
On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Waterway Industries would be
Answer:
the bond interest expense is $114,100
Explanation:
The computation of the bond interest expense is shown below:
Cash interest payable for 3 months 122,250 ($8,150,000 × 6% × 3 ÷ 12)
Less; AMortized premium for 3 months $8,150 ($8,150,000 × 4% ÷ 10 × 3 ÷ 12)
BOnd interest expense $114,100
Hence, the bond interest expense is $114,100