Answer:
This is NOT an example of a judgement in accounting for inventory is:
the amount paid to a supplier for raw materials.
Explanation:
Professional judgment is always required to determine the value to be ascribed to ending inventory. This judgment results from the application of years of accumulated knowledge and experience which the professional accountant has acquired through relevant accounting or auditing training. The result is the making of informed inventory valuation decisions while observing professional ethical standards.
Exercise 12-1 Payback Method [LO12-1] The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment Cash Inflow 1 $ 15,000 $ 1,000 2 $ 8,000 $ 2,000 3 $ 2,500 4 $ 4,000 5 $ 5,000 6 $ 6,000 7 $ 5,000 8 $ 4,000 9 $ 3,000 10 $ 2,000 Required: 1. Determine the payback period of the investment. 2. Would the payback period be affected if the cash inflow in
Question Completion:
Requirement #2 would the payback period be affected if the cash inflow in the last year were several times as large
Answer:
Unter Corporation
1. Payback period of the investment is:
= 7 years.
2. No. The payback period would not be affected if the cash inflow in the last year were several times as large. The payback period was reached in the 7th year, which is three years before the last year. No cash inflows after the 7th year will have any impact on the payback period.
Explanation:
a) Data and Calculations:
Cash flows:
Year Investment Cash Inflow
1 $ 15,000 $ 1,000
2 $ 8,000 $ 2,000
3 $ 2,500
4 $ 4,000
5 $ 5,000
6 $ 6,000
7 $ 5,000 $25,500
8 $ 4,000
9 $ 3,000
10 $ 2,000
Total $23,000 $34,500
Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete $80,000
Conversion: 20% complete 24,000
Balance in work in process, August 1 $104,000
Units started during August 54,000
Units completed and transferred in August 59,000
Work in process (70% complete), August 31 ?
Required:
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of input resource.
Question Completion:
Costs incurred in August:
Direct materials $154,000
Conversion costs $264,000
Answer:
Badgersize Company
Materials Conversion
a. Equivalent units 74,000 69,500
b. Cost per equivalent unit $3.162 $4.144
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Beginning WIP inventory 20,000 100% 20%
Units started August 54,000
Total units available 74,000
Transferred out 59,000
Ending WIP inventory 15,000 100% 70%
Cost of beginning WIP $80,000 $24,000 $104,000
Costs incurred in August 154,000 264,000 418,000
Total production costs $234,000 $288,000 $522,000
Equivalent unit Units Materials Conversion
Units transferred out 59,000 59,000 59,000
Ending WIP inventory 15,000 15,000 10,500
Equivalent units 74,000 69,500
Cost per equivalent unit
Total production costs $234,000 $288,000
Equivalent units 74,000 69,500
Cost per equivalent unit $3.162 $4.144
g Last year Lexington had sales of $884,000 and paid taxes of $50,000. Because of the low interest rate environment, the firm also borrowed some money from the local bank and paid $36,000 in interest expense. In addition, the firm incurred Variable Costs and Fixed Costs of $447,000 and $400,000 respectively. If sales increase by 5%, what should be the increase in earnings per share
Answer:
Lexington
The increase in earnings per share is 44.59%.
Explanation:
a) Data and Calculations:
Last Year 5% increase
Sales revenue $884,000 $928,200
Variable costs 447,000 469,350
Contribution $437,000 $458,850
Fixed costs 400,000 400,000
Operating income $37,000 $58,850
Interest expense 36,000 36,000
Income before tax 1,000 22,850
Income taxes 50,000 50,000
Net loss $49,000 $27,150
Increase = 44.59% ($21,850/$49,000 * 100)
Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensation is paid at an hourly rate of $45, based on an eight-hour work day. Rayon’s first pay period is January. It is now April 30, how much vacation liability has accumulated if the company has four employees and no vacation compensation has been paid?
Answer: $5760
Explanation:
The accumulated vacation liability is calculated below:
Number of employees = 4
Number of months = 4 Months
Vaccation is based on = 8 hours
Per hour rate = $45
Accumulated Vacation liability will now be:
= 4 × 4 × 8 × $45
= $5,760
Therefore, the amount if vacation liability that has accumulated will be $5,760
Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $75,000 and total manufacturing costs of $93,500. If Boxer applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:____.
A. $0.
B. $6,000.
C. $4,000.
D. $3,333.
E. $5,000.
Answer:
Its c
Explanation:
Tiana has strong communication skills, she is a hard worker, and she has a
strong background in math and statistics. What can she do to strengthen her
chances of securing a job as a market research analyst?
A. She can improve her hard skills by working collaboratively with
other people.
B. She can improve her soft skills by pursing a degree in statistics.
C. She can improve her hard skills by learning software used by
market research analysts.
D. She can improve her soft skills by taking extra courses in
computer science.
(a p e x)
Answer:
did u get the answer?
Explanation:
I'm stuck on it
Q-01: Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2003, Thomas shipped and billed book titles totaling $760,000. Collections, net of return credits, during the year totaled $690,000. The company spent $300,000 acquiring the books that it shipped. a. Using accrual accounting and the preceding values, show the firm’s net profit for the past year. b. Using cash accounting and the preceding values, show the firm’s net cash flow for the past year. c. Which of these statements is more useful to the financial manager? Why?
Answer:
Following are the solution to the given question:
Explanation:
For point a:
Total profit =Sales- solding goods cost
[tex]=760,000-300,000\\\\=TK.460,000[/tex]
For point b:
Total Cash flow =Cash receipts-solding goods cost
[tex]=6,90,000-3,00,000\\\\=3,90,000[/tex]
For point c:
The financial management's cash flow report is much more helpful, its net cash flow contains monies that are not collected also, therefore, do not contribute to the owners' assets as a result.
A permanent reduction in inflation would a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.
Answer:
b. permanently reduce the frequency of price changes and temporarily raise unemployment.
Explanation:
In the field of economics, the term 'inflation' may be defined as the rise in the price of an economy for a period of time. When the price level rises or increases, fewer goods can be purchased by each unit of currency. The price of the products increases in the market.
It also affects in the rate of unemployment. But when the inflation is reduce it can temporarily rise the rate of unemployment but it permanently reduces the frequency of the price changes in the economy.
NASAA's Model Rule on Unethical Business Practices of Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers deems all of the following as unethical practices for investment advisers EXCEPT A) inability or unwillingness to disclose sources of additional fees received from those other than the customer in connection with providing advisory services to that client B) performing the initial trades in a new discretionary account with oral authorization C) charging advisory fees that are significantly higher than those charged by other advisers for similar services in that state D) recommending a security based on a rumor
Suppose that we want to estimate the effects of alcogol consumption (alcohol) on college grade point average (colGPA. In addition to collecting information on GPAs and alcohol consumption, we also obtain attendance information (percentage of lectures attended, attend). A standardized test score, SAT, and high school GPA (hsGPA) are also available.
a. Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret ????alcohol.)
b. Should SAT and hsGPA be included as explanatory variables? Explain.
Question 3 of 10
Which statement best explains why the government's taxing of businesses is
reasonable?
A. By nature, businesses seek their own benefit, not that of society,
and taxes help them make amends for their harm to society.
B. Businesses benefit from the stable, free, fair, competitive market
that is promoted and protected by government activities.
C. The mission of government is to protect itself from any entity that
might grow too powerful, as business would if not taxed.
D. The government has the power to impose taxes according to the
Constitution, and businesses have money to pay taxes.
SUBMIT
Answer:
B. Businesses benefit from the stable free fair competitive market that is promoted and protected by government activities
Explanation:
A p e x
[The following information applies to the questions displayed below.] University Car Wash built a deluxe car wash across the street from campus. The new machines cost $258,000 including installation. The company estimates that the equipment will have a residual value of $28,500. University Car Wash also estimates it will use the machine for six years or about 12,500 total hours. Actual use per year was as follows: Year Hours Used 1 2,700 2 1,500 3 1,600 4 2,400 5 2,200 6 2,100 Required: 1. Prepare a depreciation schedule for six years using the straight-line method. (Do not round your intermediate calculations.)
Answer:
University Car Wash
Depreciation Schedule
Date Cost of Asset Depreciation Accumulated Net book
Expense Depreciation Value
Year 1 $258,000 $38,250 $38,250 $219,750
Year 2 258,000 38,250 76,500 181,500
Year 3 258,000 38,250 114,750 143,250
Year 4 258,000 38,250 153,000 105,000
Year 5 258,000 38,250 191,250 66,750
Year 6 258,000 38,250 229,500 28,500
Explanation:
a) Data and Calculations:
Cost of the new washing machines = $258,000
Estimated residual value = $28,500
Depreciable amount = $229,500 ($258,000 - $28,500)
Straight-line annual depreciation expense = $38,250 ($229,500/6)
Estimated useful life = 6 years
Usage in hours = 12,500 hours
Actual use per year:
Year Hours Used
1 2,700
2 1,500
3 1,600
4 2,400
5 2,200
6 2,100
Total 12,500
Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000. The effect of this transaction on the accounting equation, using the cost method, includes a ______. (Check all that apply.) Multiple select question. $10,000 decrease in Cash $9,000 decrease in Additional Paid-In Capital $1,000 increase in stockholders' equity $10,000 increase in Treasury Stock
Answer: $10,000 increase in Treasury Stock
Explanation:
Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.
This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.
Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $22.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25%. What will be the WACC for this project
Answer:
The WACC for this project is 22.72%.
Explanation:
P = common stock current selling price per share = $22.35
D1 = Expected dividend next year = $2.78
F = Floating cost = 8%, or 0.08
g = growth rate = 9.2%, or 0.092
t = tax rate = 0.25
r = Ke = cost of equity
The cost of equity can be calculated using the dividend grow model with the consideration of the effect of the issuance or floating cost that reduces cash collected as follows:
P(1 – F) = D1 / (r – g) ….................... (1)
Substituting the relevant value into equation (1) and solve r as follows:
22.35(1 – 0.08) = 2.78 / (r – 0.092)
22.35 * 0.92 = 2.78 / (r – 0.092)
20.562 = 2.78 / (r – 0.092)
20.562 (r – 0.092) = 2.78
20.562r - 1.891704 = 2.78
20.562r = 2.78 + 1.891704
20.562r = 4.671704
r = 4.671704 / 20.562
r = 0.2272, or 22.72%
Since there is no information that shows there is a debt, this implies that WACC is equal to the cost of equity. Therefore, we have:
WACC = r = Ke = 22.72
Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division:
East Division West Division Sales
$3,700,000 $2,300,000
Contribution margin $1,650,000 $1,000,000
Divisional segment margin $1,100,000 $350,000
Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?
a) $2,050,000
b) $850,000
c) $2,300,000
d) $1,200,000
Answer:
b. $850,000
Explanation:
Divisional Segment Margin = $1,100,000 + $350,000
Divisional Segment Margin = $1,450,000
Net Operating Income = $600,000
Common fixed expenses = Divisional Segment Margin - Net Operating Income
Common fixed expenses = $1,450,000 - $600,000
Common fixed expenses = $850,000
So, SegR-7268's total common fixed expenses will be $850,000.
Saginaw Steel Corporation has a precredit U.S. tax of $110,000 on $505,000 of taxable income. Saginaw has $205,000 of foreign source taxable income and paid $65,000 of income taxes to the German government on this income. All of the foreign source income is treated as foreign branch income for foreign tax credit purposes. Saginaw's foreign tax credit on its tax return will be: (Do not round intermediate calculations. Round your answer to nearest whole dollar amount.)
Answer: $44654
Explanation:
Based on the information given, the foreign tax credit will be allowed to the amount of the tax that is paid to foreign government which is $65000 which is then subject to the US tax limit that is applicable on that particular income which will be:
= 205000 × 110000/505000
= 44654
Therefore, the tax credit will be the one that's lesser between $65000 and $44654. Therefore the answer will be $44654.
Imagine that two goods are available to you: servants (X) and robots (Y). You like servants three times as much as robots. If your domestic help budget is $4,000 per month, the price (wage) of servants is $1500 per person per month, and the price (rent) of robots is $400 per unit per month, what is the value of the MktRS (market rate of substitution)
Answer: 3
Explanation:
The marginal rate of substitution simply means the rate at which one good will be exchanged for another good based on the current market price.
Since you like servants three times as much as robots, this implies that the utility that one gets from one servant is exactly like the utility that will be gotten from three robots.
Therefore, the utility function will be:
U = 3X + Y
Then, the marginal rate of substitution will be:
= MUX/MUY
= 3
Suppose the risk-free rate of return is 3.5 percent and the market risk premium is
7 percent. Stock U, which has a beta coefficient equal to 0.9, is currently selling
for $28 per share. The company is expected to grow at a 4 percent rate forever,
and the most recent dividend paid to stockholders was $1.75 per share. Is Stock
U correctly priced? Explain.
Answer:
kaya nyo po iyan
Explanation:
nice habbsjsxgjshsbvda
, determining whether an organization has fulfilled a certain objective is most closely associated with which of the following management functions
Explanation:
Beureacracy functions
In this type of functions there is institutions that governs what each one does and also the laws and orders are followed to maintain a higher productivity
Leia is considering insuring against theft the new $300 CD-player she just installed in her automobile. Her insurance agent tells her that such an option could be added to her present policy for $30 per year. The agent further states that the probability of theft is 0.2 in a given year. If she takes the insurance, what is her expected return per year
Answer: $30
Explanation:
If the CD-player is stolen, Leia would get a replacement from the insurance so her return for the year would be:
= Amount received from insurance - Amount paid in premiums
= 300- 30
= $270
If the CD player is not stolen, she will pay the premium of $30 so her return for the year would be: -$30
Expected return per year = (Probability of CD stolen * Return if stolen) + ( Probability of CD not being stolen * Return if not stolen)
= (0.2 * 270) + (0.8 * -30)
= $30
The annual demand for a product is 14,400 units. The weekly demand is 277 units with a standard deviation of 80 units. The cost to place an order is $28.00, and the time from ordering to receipt is eight weeks. The annual inventory carrying cost is $0.10 per unit. a. Find the reorder point necessary to provide a 95 percent service probability. (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places.)
Answer:
2589.56 units
Explanation:
Given that
Annual Demand = 14400 units
Weekly Demand = 277 units
Standard Deviation = 80 units
Ordering cost = $ 28
Lead Time = 8 weeks
Carrying cost = $ 0.10 / unit
Based on the above information
a) For a 95 percent service level, the value of z by referring to the Normal Table in Appendix A) is 1.65
The reorder point is computed as follows:
= Weekly Demand × Lead Time + Z × Standard Deviation × √ Lead Time
=277 × 8 + 1.65 × 80 × √8
= 2216+ 373.56
= 2589.56 units
g A producer of beverages and snack foods wants to market its products to the 18-to34-year-old demographic by providing incentives to respond instantly to time-sensitive offers redeemable at nearby stores. Which form of marketing would this producer most likely choose? Group of answer choices Podcasting Promotions Advertisement Personal sales Product placement
Answer:
The correct answer is the second option: Promotions.
Explanation:
To begin with, in the field of marketing there are many options to choose from and sometimes most of them are useful at the time of completing and implementing a strategy that targets the audience that the company is seeking for. In this case presented, where it is well established the kind of consumers the producer wants to reach, the most indicated option to use in the marketing campaign will be the promotions of the product itself and that is basically for two things. The first one because of the ages of the audience, it is most probably that they feel more related to the promotion due to the fact that sometimes most of the youth of that age is under their parents maintenance. And the second thing is because the text specifically says "time-sensitive" which is a characteristic of the promotions strategies.
Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total $182,000 and budgeted cash disbursements total $181,000. The desired ending cash balance is $35,000. The excess (deficiency) of cash available over disbursements for July will be:
Answer:
$14,000
Explanation:
Given the above information,
the excess cash available for Disbursement in July is computed as;
= Budgeted cash receipts total - Budgeted cash disbursement total + Budgeted beginning cash balance
= $182,000 - $181,000 + $13,000
= $14,000
Therefore, the excess(deficiency) of cash available over disbursement in July will be $14,000
Identify the simplifying assumptions usually made in net present value analysis.
A. All cash flows other than the initial investment occur at the end of periods.unanswered.
B. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate.unanswered.
C. All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
D. All cash flows occur at the beginning of the periods.unanswered.
E. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answer:
All cash flows other than the initial investment occur at the end of periods.
All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV is a capital budgeting method
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable
For example, a project costs 100. the cash flow in year 1 and 2 is $500 each. the discount rate is 10%
the NPV can be calculated using the financial calculator
NPV = $767.77
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Can I get help on this job application please ?
Answer:
The answer is below.
Explanation:
Most likely to do:
"Ask your store Manager if you can hold the markdown price for them so they can get it for the same price when it is back in store."
Doing the above will ensure you retain the customer's trust, and while you didn't direct your customer to a competitor, which is detrimental.
Least Likely to do:
"Offer to provide the address and phone number for the nearest store, and explain that stores get frequent shipments with new items."
Doing the above is detrimental to your store, as you will be sending your customers to a direct competitor.
The following chart represents the cost of producing different amounts of pizza pies in an hour. Quantity of Output1020405070 Workers (L) 2.253.004.105.506.75 Wage Rate per hour$35.00$35.00 $35.00$35.00$35.00 Calculate the cost of producing 40 pizza pies. Round your answer to the nearest hundredths place.
Answer:
the cost would be $143.50
Explanation:
The computation of the cost of producing 40 pizza pies is shown below:
Cost = no of workers × wage rate per hour
= 4.10 × $35
= $143.50
We simply multiplied the number of workers with the wage rate per hour so that the cost of generating 40 pizza pies could come
hence, the cost would be $143.50
The same would be considered
Rommer Company purchases Daley Inc. for $4,700,000 cash on January 1, 2020. The book value of Daley Company's net assets, as reflected on its December 31, 2019 statement of financial position is $4,000,000. An analysis by Rommer on December 31, 2019 indicates that the fair value of Daley's tangible assets exceeded the book value by $525,000, and the fair value of identifiable intangible assets exceeded book value by $150,000. How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Answer:
$25,000
Explanation:
Calculation to determine How much goodwill should be recognized by Rommer Company when recording the purchase of Daley Inc.
Using this formula
Goodwill=Beginning cash-Ending book value-Fair value tangible assets-Fair value intangible assets
Let plug in the formula
Goodwill=$4,700,000-$4,000,000-$525,000-$150,000
Goodwill=$25,000
Therefore the goodwill that the company should be recognized by Rommer Company when recording the purchase of Daley Inc. $25,000
frocks and gowns incorporated has two divisions day wear and night wear the day wear division has an investment base of 880,000 and produces and sells 134,500 units of collars at a market price of 12.20 wants to purchase 27,000 units of collars from the day wear division. what is the minimum transfer price that the day wear division would accept for the 27,000 unit order from the night wear
Question
Frocks and gowns incorporated has two divisions day wear and night wear the day wear division has an investment base of $880,000 and produces (and sells) 134,,500 units of Collars at a market price of $12.20 per unit. Variable costs total $7.80 per unit, and fixed charges are $3.90 per unit (based on a capacity of 140,000 units). The Night Wear Division wants to purchase 27,000 units of Collars from The Day Wear Division. However, the Night Wear Division is only willing to pay $8.45 per unit.
What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Division?
Answer:
The minimum transfer value = $305,200
Explanation:
The company current has an excess capacity of 140,000-134,500=5,500 units
These available quantities can sold at a minimum transfer price of $7.80.
However, the balance of 21,500 (i.e 27,000 minus 5,500) should be transferred at the market price of $12.20. This is so because there is an opportunity cost attached to units supplied which is the contribution to be earned if sold at the market price.
Hence, The 27,000 units should transferred at the value computed below:
$
First 5,500= $5,500× $7.80= 42,900
The balance of 21,500 × $12.20= 262,300
The total value 305,200
The minimum transfer value = $305,200
The term economic tax incidence refers to Question 8 options: whether buyers or sellers of a good are required to send tax payments to the government. whether the demand curve or the supply curve shifts when the tax is imposed. the distribution of the tax burden between buyers and sellers. widespread view that taxes always will be a fact of life.
Answer:
the distribution of the tax burden between buyers and sellers.
Explanation:
Tax is a compulsory sum levied by the government on goods and services. it increases the price of goods and services
Economic tax incidence refers to who bears the burden of tax which is dependent on the elasticities of demand of the consumer and the elasticities of supply of the supplier
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Elasticity of supply measures the responsiveness of supply to changes in price. Supply can be elastic, inelastic or unit elastic
if demand is elastic and supply is inelastic, the burden of tax would be borne by suppliers.
The party between the supplier and the consumer that has a more elastic demand would bear less tax incidence and the party that has a less elastic demand would bear more tax incidence
how can the South African government stabilize inflation