Answer:
d. As a company, your risk of being sued is increased, and data could be used to support a claim against you if there is an accident, critical materials shipment delay or other conflict.
Explanation:
There can be claims against the company and this data can be used as evidence against the company itself. The company should monitor the data and keep the data to limited personnel access. There can be monitoring in other ways which can help the company to keep track of all the vehicles related transactions.
Barbur, Inc. reported net income of $20.35 million. During the year the average number of common shares outstanding was 3.7 million. The price of a share of common stock at the end of the year was $5. There were 680,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is non-cumulative.
1A. Use the information above, the EPS is approximately:_____.
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
1B. Use the information above, the Price/Earnings ratio is approximately:_____.a. 2.00.b. 2.50.c. 2.84.d. 12.50.
Answer and Explanation:
The computation is shown below:
a. EPS = Net income ÷ Outstanding shares
= $20,350,000 ÷ 3,700,000 shares
= $5.50 per share
b. Price/Earnings ratio = Price of common stock ÷ EPS
= $5 ÷ $5.50
= 0.9091
Hence, the above represent the answer and the options that are given are incorrect
Keystone, Inc., replaced its truck-and-dolley system of moving inventory around its plant with a computer-controlled conveyor system. The costs associated with this equipment replacement were as follows: Purchase price of conveyor system$1,300,000 Book value of truck-and-dolley system50,000 Installation cost of new conveyor system85,000 The truck-and-dolley system was sold for scrap for $70,000. What value should be capitalized to the balance sheet of Keystone, Inc., as the cost basis of the new conveyor system
Answer: See explanation
Explanation:
The cost basis for the new conveyor system will be:
Purchase price = $1,300,000
Add : Installation cost = $85,000
Therefore, Cost of new conveyor system will be:
= $1,300,000 + $85,000
= $1,385,000
The gain on the sale of old truck will be $70000 - $50000 = $20,000 whcinwill be credited to the income statement.
Applying the Cost of Goods Sold Model The following amounts were obtained from Stanwick Company's accounting records. 2019 2020 Net sales $388,600 $427,460 Cost of goods sold: Beginning inventory $36,800 (d) Purchases (a) 296,700 Goods available for sale (b) (e) Ending inventory 42,060 (f) Cost of goods sold (c) 295,390 Gross margin $117,960 (g)
Answer:
See below
Explanation:
2020 Beginning inventory
Beginning inventory
Add: Purchases
$296,700
Cost of goods available for sale
$296,700
Less: Ending inventory
($1,310)
Cos of goods sold
$295,390
2019 Purchases
Purchases = Ending inventory - Beginning inventory
Purchases = $42,060 - $36,800
Purchases = $5,260
consider ktu as a production system in which the final product is graduate for this
a) define quality form the producers and consumers perspective
b) develop fitness for use description for final product quality
c) give examples of the cost of poor quality ( internal and and external failure cost ) and the cost of quality assurance ( prevention and appraisal) costs.
Which phrase best completes the list?
Characteristics of Short-Term Savings Strategies
Earn low rates of interest
Include savings accounts at banks
?
O A. Are used mostly for retirement savings
O B. Are used to pay for expenses as they arise
O C. Include keeping money in your home
O D. Have a high risk of losing initial investments
Answer:
B
Explanation:
The Characteristics of Short-Term Savings Strategies Earn low rates of interest Include savings accounts at banks are used to pay for expenses as they arise. The correct option is (B).
What do you mean by the Short term savings?Short-term objectives typically have a five-year time frame. With a specific objective in mind or to establish a safety net in case an unforeseen expense arises, you might open a short-term savings account. Examples of short-term objectives a reserve account.
Depending on the investment firm, short-term investments typically offer an investment period of less than a year. This benefit is strongly connected to benefit. You can withdraw from short-term investments at any time, especially in an emergency, due to their flexibility.
Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
Therefore, the Characteristics of Short-Term Savings Strategies Earn low rates of interest Include savings accounts at banks are used to pay for expenses as they arise.
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Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the pool product A product B total pool 1 $20,000 4,000 DL$ 6,000 DL$ 10,000 DL$ pool 2 $15,000 20 setups 30 setups 50 setups pool 3 $10,000 50 hours 150 hours 200 hours Compute the activity rates and the allocated costs for products A and B. activity rate allocated costs for product A allocated costs for product B pool 1 $ per DL$ $ $ pool 2 $ per setup $ $ pool 3 $ per hour $ $ total allocated costs for each product $ $
Answer:
Results are below.
Explanation:
To calculate the activities rates, we need to use the following formula on each pool:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Pool 1= 20,000/10,000= $2 per direct labor dollar
Pool 2= 15,000/50= $300 per setup
Pool 3= 10,000/200= $50 per hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product A:
Pool 1= 2*4,000= 8,000
Pool 2= 300*20= 6,000
Pool 3= 50 *50= 2,500
Total allocated costs= $16,500
Product B:
Pool 1= 2*6,000= 12,000
Pool 2= 300*30= 9,000
Pool 3= 50 *150= 7,500
Total allocated costs= $28,500
:How is a ‘provision for reserve’ in a balance sheet, a liability or an asset. Explain.
Explanation:
A provision is indeed an item freed up from either a company's revenue to cover potential future costs or a probable property price decrease. It shows up as spending on the financial statements and is documented as a current liabilities.
The Converting Department of Soft Touch Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 60% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production.
Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total
Answer:
Direct materials equivalent units 16,080
Conversion costs equivalent units 16,048
Explanation:
Calculation to Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
760 0 (760*40% = 304)
Started and completed
15,240 15,240 15,240
(16,000-760=15,240)
Transferred to Packing Department
16,000 15,240 15,544
Inventory in process, ending
840 840 (840*60% = 504)
Total 16,840 16,080 16,048
Therefore the number of equivalent units of production with respect to direct materials is 16,080 and conversion costs is 16,048
Consider each argument for limiting international trade:
The national security argument suggests that national security requires that strategically important goods be produced domestically.
The infant industry argument suggests that protection can help infant industries develop.
The unfair competition argument suggests that anti‑dumping laws prevent unfair competition.
The fair standards argument suggests that trade should not enable firms to skirt regulations.
Determine which argument each statement is related to and whether the statement supports or opposes the argument.
a. "Industries that are protected from foreign competition often never develop to a point where they can compete internationally." This statement _________the ______________argument.
b. 'If foreign importers do not meet U.S. requirements regarding child labor, safety, and the environment, they will have an unfair cost advantage over domestic firms." This statement ___________ the________ argument.
Answer:
a. opposes the infant industry argument.
b. supports the fair standard arguments.
Explanation:
The companies are regulated by the standards. There are certain standards which businesses need to follow in order to achieve regulatory compliance. The companies are regulated but there should be fair competition which enables firms to promote healthy competition in order to develop their business.
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customers. However, many restaurants receive a 15% tip for parties of eight or more. Using the concept from this chapter, discuss (a) why the practice of tipping has emerged as a major method of compensating the wait staff, (b) why the customer typically decide on the amount of the tip, and (c) why restaurants require tips from large parties
Answer:
a) tipping is seen as a reward for a good service provided. It is also a way of passing labor costs directly to the customer, which increases the restaurants' profits.
b) generally, most restaurant charge a fixed fee for tips. Maybe in the past customers could decide the tip, but that is not true now for most places. Although, customers are better judges of the service that they receive. By the way, the 15% is the minimum tip, customers can choose to increase that amount.
c) if the restaurants did not require tips, their labor costs would increase significantly.
Explanation:
Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unemployment rate drop and discuss whether there is enough information to determine statistical significance, which Hypothesis Test you would use, and what additional information you would need if any. Support your response with specific examples and a reference. In replies to peers, discuss whether you agree or disagree with their assessments, justify your response, and state which other specific hypothesis tests could be used to test the significance of the drop.
Answer:
We do not have sufficient information
Explanation:
From this question we do not have sufficient information to test how significant this claim by the mayor is. This mayor has only given us the estimated proportion of the drop in unemployment rate. We will need to have more data to carry out hypothesis testing but these were not given.
Here is an example
Let's say n = size = 500
and 51% are unemployed
51/500*100 = 10.2%
The size of the population is what would tell us if the change from 10.5 to 10.4 percent is significant or not.
Milliken Company paid $3.00 million to purchase stock in another company, $1.40 million to repurchase treasury shares, $1.50 million to buy short-term investments, sold used equipment for $0.84 million when its book value was $1.20 million, and purchased new equipment for $3.8 million. What was the net cash flow from investing activities
Answer:
Net cash flow from investing activities is -$7.46 million.
Explanation:
Cash Flow from Investing Activities refers to the section of the cash flow statement of an organisation that shows the amount that been utilized in or made from making investments durin a particular accounting period. Examples of investing activities are purchases and sales of investments, long-term assets like property, plant, and equipment, etc.
Net cash flow from investing activities for Milliken Company can be calculated as follows:
Milliken Company
Calculation of net cash flow from investing activities
Details Amount ($'million)
Purchase stock in another company (3.00)
Buy short-term investments (1.50)
Sold used equipment 0.84
Purchased new equipment (3.80)
Net cash flow from investing activities (7.46)
Therefore, net cash flow from investing activities is -$7.46 million.
Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins working on a bag when a customer order has been received and then she makes the bag from beginning to end. The average production time of a bag is 1.8 days with a standard deviation of 2.7 days. Larry expects to receive one customer order, per day on average. The arrival process follows a Poisson distribution. What is the expected duration, in days, between when an order is received and when production begins on the bag
Answer:
12.55 days.
Explanation:
Arrival time (a) = 1 day
Coefficient of variation of arrival (CVa) = 1
Processing time (p) = 1.8 days
Standard deviation for processing = 2.7 days
Coefficient of variation for processing = Standard deviation for processing/ Processing time
Coefficient of variation for processing (CVp) = 2.7/ 1.8
Coefficient of variation for processing (CVp) = 1.5
Given, number of servers (m) = 2
Utilization of system (u) = p/(m×a)
Utilization of system (u) = 1.8/(2×1)
Utilization of system (u) = 0.9
Let waiting time in the queue = Tq
Formula for waiting time in queue is quite complicated to write it here. SO, I have attached in the attachment below. Please refer to the attachment to see the formula for Tq.
SO, after plugging in the values in to the formula, we get:
Tq = 12.55 Days
Therefore, the Expected duration between when an order is received and when production begins = 12.55 days
Cross-price elasticity of demand measures how a. the price of one good changes in response to a change in the price of another good. b. the quantity demanded of one good changes in response to a change in the quantity demanded of another good. c. strongly normal or inferior a good is. d. the quantity demanded of one good changes in response to a change in the price of another good
Answer:
d. the quantity demanded of one good changes in response to a change in the price of another good
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
Substitute goods are goods that can be used in place of another good.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
Complementary goods are goods that are consumed together
Example 1
If the percentage change in good A is 10% and the percentage change in quantity demanded of good B is -20%. Cross price elasticity = -20%/ 10% = -2. the goods are complementary goods
Example 2
If the percentage change in good A is 20% and the percentage change in quantity demanded of good B is 80%. Cross price elasticity = 80%/ 20% = 4. the goods are substitute goods goods
53) In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns in the following year to equal 8% of sales. The unadjusted balance in Inventory Returns Estimated is a debit of $6,000, and the unadjusted balance in Sales Refund Payable is a credit of $10,000. The adjusting entry or entries to record the expected sales returns is (are):
Answer: See explanation
Explanation:
The adjusting entry or entries to record the expected sales returns are:
Debit: sales return and allowance = $150,000
Credit: Sales refund payable = $150,000
The above $150,000 was gotten as:
= ($2,000,000 × 8%) - $10,000
= ($2,000,000 × 0.08) - $10,000
= $160,000 - $10,000
= $150,000
Also,
Debit: Inventory returns estimated = $90,000
Credit: Cost of goods sold = $90,000
The above $90,000 was gotten as:
= ($1,200,000 × 8%) - $6,000
= ($1,200,000 × 0.08) - $6,000
= $96,000 - $6,000
= $90,000
Suppose that the cross price elasticity of demand between movie tickets and popcorn is −0.10. What would you expect to happen to the sales of popcorn if the price of movie tickets rises by 30 percent? The demand for popcorn would fall fall rise by 33 percent (Enter your response rounded to one decimal place.)
Answer:
fall
3%
Explanation:
Classification of Transactions
Below are several transactions that took place in Seneca Company last year:
A. Paid suppliers for inventory purchases.
B. Bought equipment for cash.
C. Paid cash to repurchase its own stock.
D. Collected cash from customers.
E. Paid wages to employees.
F. Equipment was sold for cash.
G. Common stock was sold for cash to investors.
H. Cash dividends were declared and paid.
I. A long-term loan was made to a supplier.
J. Income taxes were paid to the government.
K. Interest was paid to a lender.
L. Bonds were retired by paying the principal amount due.
Required:
Indicate how each of the above transaction would be classified on a statement of cash flows.
Answer:
Classification on the statement of cash flows will be as follows :
A. Cashflow from Operating Activities
B. Cashflow from Investing Activities
C. Cashflow from Financing Activities
D. Cashflow from Operating Activities
E. Cashflow from Operating Activities
F. Cashflow from Investing Activities
G. Cashflow from Financing Activities
H. Cashflow from Financing Activities
I. Cashflow from Financing Activities
J. Cashflow from Operating Activities
K. Cashflow from Operating Activities
L. Cashflow from Financing Activities
Explanation:
There are three categories of classifying Cash flows on the Statement of Cash flows which are : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.
SCENARIO The Forest Stewardship Council (FSC) was formed in 1993 to promote sustainable management of the world’s forests. The FSC quickly began to certify lumber based on whether the forest that it was taken from was managed according to its guidelines. Soon thereafter, several builders in California began to specialize in the construction of "Green" buildings that only used FSC-certified lumber. This was seen as a viable business because some customers were willing to pay a premium to have their projects completed with FSC lumber. These builders have an opportunity to order this lumber once every 3 months because the forests involved must be harvested in accordance with certain restrictions. Consequently, builders who focused on this market were forced to hold large inventories. On the other hand, builders who only used "traditional" wood which was not FSC-certified could order on a just-in-time basis, meaning they did not have to hold any lumber in their own lumberyards. Consider the following 3 scenarios and related questions.
1. A green builder must decide how much FSC lumber to purchase to meet demand for the next 3 months. Demand is normally distributed with a mean of 40,000 board-feet and a standard deviation of 15,000 board feet. (A board-foot is a standard unit for lumber.) The purchase price for the builder is $4.00 per board-foot. At the end of a 3-month period the wood will dry and may warp, reducing its value. Of any lumber remaining in the builder’s lumber yard at the end of the 3-month period, approximately half will be worthless. The builder will use any wood that is not warped in the next period. However, buying the wood now, rather than in the next period incurs a holding cost of 4% of the purchase cost. If the builder has too little FSC certified wood to meet demand, he will be forced to substitute traditional lumber which he can buy for $3.35 per board foot. In addition, the green builder assigns a shortage cost of $2.00 per board foot for the loss of good will and damage to his reputation. How many board feet of FSC certified lumber should the builder purchase?
2. Suppose a lumber-yard (Nice Lumber) agrees to serve as a distributor for a builder. This means Nice Lumber will stock the FSC-certified lumber for one green builder. Nice Lumber will pay $4.00 per board foot for FSC-certified wood and sell it to the builder for $4.20 per board foot. If demand exceeds the inventory, the green builder will buy traditional wood from a different lumber yard to meet the demand at price of $3.20 per board-foot. In addition to the lost sale, Nice assigns a cost of $2.00 per board foot of shortage of FSC lumber. If the inventory of FSC-certified lumber exceeds demand, Nice will immediately substitute the excess FSC certified lumber to meet demand from other customers and reduce its purchases of traditional lumber accordingly. Nice pays $3.20 per board foot for traditional lumber. How many board feet of FSC certified lumber should Nice Lumber purchase?
3. Suppose Nice Lumber will stock the FSC certified lumber for 10 green builders. For each of these builders, demand is normally distributed with a mean of 40,000 board feet and a standard deviation of 15,000 board feet, and each builder’s demand is independent of other builders’ demand. How many board feet of FSC certified lumber should Nice lumber purchase per builder?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Board-Feet = Mean + Z*SD
Where SD = Standard Deviation
Mean = 40,000;
SD= 15,000;
Z = NORMSINV(SL); SL (Service Level) = Cu/(Cu + Co)
1.
Solution:
Cu = $(4 - 3.35 + 2)
Since he would gain $4 - $3.35 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 2.65
And,
Co = (4 - 2 + 4% x 4)
Since half of the lumber becomes scrap after three months and he pays 4% as a holding cost for keeping $4/unit as inventory, he incurs a holding cost of 4%.
Co = 2.16
Service Level SL = Cu/(Cu+Co)
Service Level SL = 2.65/(2.65+2.16)
Service Level SL = 0.550936
Z = NORMSINV(0.550936)
Z = 0.12
Hence,
Board-Feet = Mean + Z*SD
Board-Feet = 41,920.38
2.
Solution:
Cu = $(2 - 4.2 + 3.2)
Since he would gain $4.2-$3.2 by substituting lumber for conventional wood, he would lose $2 in goodwill and credibility loss.
Cu = 1
In the event of overstocking, he does not specify the price at which he will replace FSC lumber with conventional lumber. Only his price, which is $3.2/board-foot for traditional lumber, is issued.
Co = 4 - 3.4
since he'll have to market the excess FSC lumber inventory at conventional wood's price; ASSUMING traditional lumber rate at the rate $3.4/board-feet
Co = 0.6
So,
Service Level SL = Cu/(Cu+Co) = 1/(1+0.6)
SL = 0.625
Z = NORMSINV(0.625)
Z = 0.318639
Board-Feet = 44,779.59
3.
Solution:
Here, everything will be same except the formula for calculate the Board -Feet. New formula is:
Board-Feet = Mean + [tex]\frac{Z * SD}{\sqrt{n} }[/tex]
Here, n = 10
Just plugging in the values, we get:
Board-Feet = 40,000 + [tex]\frac{0.318639 * 15000}{\sqrt{10} }[/tex]
Board-Feet = 41,511.44
which body develops independence rules that apply to engagements performed under gagas?
Answer:
The Generally Accepted Government Auditing Standards (GAGAS), commonly referred to as the "Yellow Book", are produced in the United States by the Government Accountability Office (GAO). The standards apply to both financial and performance audits of government agencies. Five general standards are included: Independence.
Explanation:
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LOL :) Brainliest please
Government Accountability Office (GAO) is the body that develops independence rules that apply to engagements performed under gagas.
The following information should be considered;
The Generally Accepted Government Auditing Standards (GAGAS), commonly referred to as the Yellow Book, are generated in the United States by the Government Accountability Office (GAO). Government Accountability Office (GAO) created independence rules that apply to engagements performed under generally accepted government auditing standards (GAGAS).Learn more: brainly.com/question/16911495
Digital Prosper, a web services firm, has experienced a 7 percent decline in revenues in consecutive quarters. In an effort to reduce operating costs, managers reduced the customer service staff from 12 employees to 6. Management also enlisted the remaining employees to help produce a new company vision: to give customers of all budgets a customizable, stress-free web hosting experience. What is wrong with this scenario
Answer: c. Digital Prosper's organizational structures do not align with the vision.
Explanation:
Digital Prosper have reduced their staff by 50% and yet go on to advertise through their vision, that they are able to cater for all types of customers regardless of their budgets.
This purpose of this vision is to bring in more customers and if it succeeds, the remaining employees in customer service will be swamped with work. This might lead to the employees being inefficient thereby creating stress for the customers.
The organizational structure of Digital Prosper therefore does not align with the vision.
Answer:
Marigold's organizational structures do not align with the vision
Explanation:
The internal stakeholders would be designers, manufacturing, assembly, etc here the internal stockholder would be invested that defines the vision so here the organizational structure would not be aligned with the vision as they attempt to provide the better service for the customer as half the originial staff
Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 1,968 hours per year. Product Reno has a unit contribution margin of $96 and requires four hours of painting department time. Product Tahoe has a unit contribution margin of $78 and requires three hours of painting department time.There are no other constraints.Assume that only 500 units of each product can be sold.Required:1. What is the optimal mix of products? If required, round your answers to the nearest whole number. Optimal MixReno unitsTahoe units2. What is the total contribution margin earned for the optimal mix?$
Answer:
Optimal product mix :Tahoe = 500 units, Renoe = 117 units
Total contribution = $50,232
Explanation:
When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate the scare resource for production purpose in such a way that it maximizes the contribution per unit of the scare resource.
Therefore Billing Company should allocate the painting hours to maximise the contribution per unit of painting hour
Product Reno Tahoe
$ $
Contribution per unit 96 78
Painting hour 4 3
Contribution per hour * 24 26
* = contribution per unit/painting hour per unit
Production mix
Product Unit Painting hour
Tahoe 500 1500
Renoe 117*** 468**
Total
**Balance of painting hour = 1968-1500= 468 hours
*** Unit of Renoe = 468/4=117 units
Optimal product mix = Tahoe = 500 units, Renoe = 117 units
Total contribution = (117× 96) + (500×78) = $50,232
Suppose that Perry and Taimur both produce poems and novels. Perry’s productive capabilities are as follows. He can produce 12 poems if he spends all of his time writing poems or he can write 2 novels if he spends all of his time writing novels. He can also produce any linear combination in between. Taimur’s productive capabilities are as follows. He can produce 12 poems if he spends all of his time writing poems or he can write 4 novels if he spends all of his time writing novels. He can also produce any linear combination in between.
A. Which person can produce poems at lower opportunity cost? Explain. Which person can produce novels at a lower opportunity cost? Explain.
B. Suppose that Perry and Taimur make the following deal. Perry will spend all of his time making poems and Taimur will spend all of his time making novels. Taimur will then send 1 novel to Perry and in return Perry will send Taimur 4 poems. How many poems and novels will Perry have after this trade? How may poems and novels will Taimur have after this trade?
C. I claim that after trading with Taimur, Perry can now consume a combination of poems and novels that he never could have produced for himself. Likewise, Taimur can now consume a combination of poems and novels that he never could have produced for himself after trading with Perry. Use equations and a couple of simple calculations to demonstrate that I am correct.
D. What do you think is going on here? Why can both Perry and Taimur now consume a quantity of goods that they never could have produced for themselves?
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
Perry poems = 12
Taimur Poems = 12
Perry Novels = 2
Taimur Novels = 4
Opportunity cost of Poems for Perry = 2/12 = 1/6
Opportunity cost of Poems for Taimur = 4/12 = 1/3
Opportunity cost of Novels for Perry = 12/2 = 6
Opportunity cost of Novels for Taimur = 12/4 = 3
As opportunity cost of poems for Perry < Opportunity Cost of Poems for Taimur
So,
Perry can produce poems at lower opportunity cost.
And,
Opportunity cost of Novels for Taimur < Opportunity cost of Novels for Perry
SO,
Taimur can produce novels at lower opportunity cost.
b.
Perry spend all time in making poems = 12 poems
Taimur Spend all time in novel making = 4 novels
Trade ---> Taimur send 1 novel, So, he will left with 3 novels, in exchange he will get 4 poems.
So, after trade, we have:
Perry = 8 novels and 1 Poem
Taimur = 4 poems and 3 novels.
c.
The claim is correct.
This is because, Perry makes 8 poems, he is left with with only 4 novels of productivity and as his opportunity cost of novel is 6, he won't be able to produce even 1 novel, if he doesn't trade.
Let's assume Perry and Taimur both have 12 hours of time each.
Productivity of Perry ---> Poems: 12 hours/12 units = 1 Novels: 12/2 = 6
i.e. Perry need 1 hour to produce 1 poem
and 6 hours to produce 1 novel .
So, when Perry produce 8 poems, he exhaust his 8 hours. Now, he is left with 4 hours. So he cannot produce 1 novel, which require 6 hours to complete. So, after trade, he is better off.
d.
As both Perry and Taimur, produce the good, in which they have comparative advantage it lead to specialization. And when they trade the good, in which they have specialization which will lead them expand this consumption possibilities.
Marigold Company uses the periodic inventory method and had the following inventory information available:
Units Unit Cost Total Cost
1/1 Beginning Inventory 98 $4 $392
1/20 Purchase 490 $5 2,450
7/25 Purchase 98 $7 686
10/20 Purchase 294 $8 2,352
980 $5,880
A physical count of inventory on December 31 revealed that there were 343 units on hand. Answer the following independent questions.
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars 4.
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference 4.
B) Would income have been greater or less?
Answer:
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $2,695.
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $2,058.
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $1,617.
A) The difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method is $1,078.
B) The income would have been greater.
Explanation:
Total units available for sale = 980
Total cost of units available for sale = $5,880
Ending inventory units = 343
Units of inventory sold = Total units available for sale - Ending inventory = 980 - 343 = 637
1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $____the value of the ending inventory in dollars.
Value of the ending inventory using FIFO method = Total cost of 294 units purchased on 10/20 + Value of remaining 49 (i.e. 343 - 294 = 49) units at $7 cost per unit of 7/25 Purchase = $2,352 + (49 * $7) = $2,695
2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $____the value of the ending inventory in dollars.
Average cost per unit = Total cost of units available for sale / Total units available for sale = $5,880 / 980 = $6 per unit
Value of the ending inventory using average cost method = Ending inventory units * Average cost per unit = 343 * $6 = $2,058
3. Assume that the company uses the LIFO method. The value of the ending inventory on December 31 is $_____the value of the ending inventory in dollars.
Value of the ending inventory using LIFO method = Total cost of 98 units of 1/1 Beginning Inventory + Value of remaining 245 (i.e. 343 - 98 = 245) units at $5 cost per unit of 1/20 Purchase = $392 + (245 * $5) = $1,617
A) Determine the difference in the amount of income that the company would have reported if it had used the FIFO method instead of the LIFO method $enter the amount of difference
This can be determined as follows:
Difference = Value of the ending inventory using FIFO method - Value of the ending inventory using LIFO method = $2,695 - $1,617 = $1,078
B) Would income have been greater or less?
Since the Value of the ending inventory using FIFO method of $2,695 is greater than the Value of the ending inventory using LIFO method of $1,617, this implies that the income would have been greater.
This is because the cost of goods sold to be deducted from the sales revenue would have been lower with the higher Value of the ending inventory using FIFO method of $2,695. This would make the income to be greater.
Exercise 3-1 Prepare Journal Entries [LO3-1] Larned Corporation recorded the following transactions for the just completed month. $75,000 in raw materials were purchased on account. $73,000 in raw materials were used in production. Of this amount, $59,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $116,000 were paid in cash. Of this amount, $102,000 was for direct labor and the remainder was for indirect labor. Depreciation of $194,000 was incurred on factory equipment.
Answer:
Journal 1
Debit : Raw Materials $75,000
Credit : Accounts Payable $75,000
Journal 2
Debit : Work In Process - Direct Materials $59,000
Debit : Work In Process - Indirect Materials $14,000
Credit : Raw Materials $73,000
Journal 3
Debit : Work In Process - Direct Labor $102,000
Debit : Work In Process - Indirect Labor $14,000
Credit : Cash $116,000
Journal 4
Debit : Work in Process - Depreciation expense $194,000
Credit : Accumulated Depreciation $194,000
Explanation:
All costs incurred during production are recorded on the debit of the work in process account as shown above.
The following scenario applies to the next three questions. At the start of the current period, Alberich Jewelers had an inventory of three identical gold rings. The cost of the gold ring purchased first is $640, the gold ring purchased next had a cost of $720, and the most recent purchase had a cost of $750. During the current period one of the gold rings was sold for $1,400. Alberich expects this gold ring will be a fast seller and he is thinking about ordering more of the same model for $780 each. If Alberich elects the FIFO method of inventory, after selling one ring for $1,400, compute the gross profit he should report. Post your response without any special characters. So an answer of $1,000 would be expressed as 1000
Answer:
Alberich Jewelers
The gross profit that Alberich should report is 760.
Explanation:
a) Data and Calculations:
Cost of gold ring purchased first = $640
Cost of gold ring purchased next = $720
Cost of gold ring purchased recently = $750
Sale of one gold ring = $1,400
Using the FIFO method of inventory, the gross profit for the gold ring sold is based on the first gold ring purchased, as follows:
= Sales Revenue - FIFO cost of inventory
= $1,400 - $640
= $760
TVLand sells home entertainment systems and also offers a complementary installation service. The same service is offered by other vendors for $50 on average, and TVLand typically charges approximately 40% more than other vendors for similar services on a stand-alone basis. Using the adjusted market assessment approach, the stand-alone selling price of the installation service is:
Answer:
$70
Explanation:
Calculation to determine what the stand-alone selling price of the installation service is:
Stand-alone selling price= $50 + (40%*$50)
Stand-alone selling price=$50+$20
Stand-alone selling price= $70
Therefore the stand-alone selling price of the installation service is:$70
During 2022 Swifty Corporation had sales on account of $765000, cash sales of $312000, and collections on account of $512000. In addition, they collected $8900 which had been written off as uncollectible in 2021. As a result of these transactions the change in the accounts receivable indicates a $244100 increase. $568000 increase. $565000 increase. $253000 increase.
Answer:
$253,000 increase
Explanation:
With regards to the above, there would be an increase in transaction. See computation below;
Given that;
Sales on account = $765,000
Collections on account = $512,000
Then,
The change in account receivables would be;
= Sales on account - Collections on account
= $765,000 - $512,000
= $253,000 increase.
what do you understand by marketing mix
Explanation:
When I think about the term marketing mix, I think about a set of tools that firms use to increase their profits such as price, product, promotion and place.
Alex Karev has taken out a $ loan with an annual rate of percent compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $ per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $ per month? Use five decimal places for the monthly percentage rate in your calculations.
Answer:
the question is incomplete, so I looked for a similar one:
Alex Karev has taken out a $180,000 loan with an annual rate of 11% compounded monthly to pay off hospital bills from his wife Izzy's illness. If the most Alex can afford to pay is $3,500 per month, how long will it take to pay off the loan? How long will it take for him to pay off the loan if he can pay $4,000 per month?
PVIFA = $180,000 / $3,500 = 51.42857
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
51.42857 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.47143 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.47143 = 0.52857
1 / 0.52857 = (1 + 0.11/12)ⁿ
1.89189 = 1.009167ⁿ
n = log 1.89189 / log 1.009167 = 0.2769 / 0.003963 = 69.87
n = 69.87 months
PVIFA = $180,000 / $4,000 = 45
PVIFA = [1 - 1/(1 + i)ⁿ ] / i = [1 - 1/(1 + 0.11/12)ⁿ] / 0.11/12
45 x 0.11/12 = 1 - 1/(1 + 0.11/12)ⁿ
0.4125 = 1 - 1/(1 + 0.11/12)ⁿ
1/(1 + 0.11/12)ⁿ = 1 - 0.4125 = 0.5875
1 / 0.5875 = (1 + 0.11/12)ⁿ
1.70213 = 1.009167ⁿ
n = log 1.70213 / log 1.009167 = 0.23099 / 0.003963 = 58.29
n = 58.29 months