Answer:
a. Labor rate variance = - $1,125 (adverse )
b. Labor efficiency variance = - $1,375 (adverse)
Explanation:
a. Labor rate variance
Actual labor rate = $8,000 / 2,500 = $3.20 per hour
Labor rate variance = Actual hours * (Standard rate - Actual rate) = 2,500 * ($2.75 - $3.20) = - $1,125 adverse
b. Labor efficiency variance
Standard labor hours = Actual units * Standard hour per unit = 1,000 * 2 = 2,000 hours
Labor efficiency variance = (Standard labor hours - Actual labor hours) * Standard rate = (2,000 - 2,500) * $2.75 = - $1,375 (adverse)
The labor rate variance for Alpha Company is $1,125 (Unfavorable), and the labor efficiency variance is $1,375 (Unfavorable).
First, we calculate the Labor Rate Variance (LRV) using the formula:
LRV = (Actual Hourly Wage - Standard Hourly Wage) × Actual Hours Worked
Given:
Actual Hourly Wage = Total Labor Cost / Actual Hours Worked = $8,000 / 2,500 = $3.20 per hourStandard Hourly Wage = $2.75 per hourActual Hours Worked = 2,500 hoursSo:
LRV = ($3.20 - $2.75) × 2,500 = $0.45 × 2,500 = $1,125 (Unfavorable)
Next, we calculate the Labor Efficiency Variance (LEV) using the formula:
LEV = (Actual Hours Worked - Standard Hours Allowed) × Standard Hourly Wage
Given:
Standard Hours Allowed = Standard Hours Per Unit × Actual Units Produced = 2 hours/unit × 1,000 units = 2,000 hoursActual Hours Worked = 2,500 hoursStandard Hourly Wage = $2.75 per hourSo:
LEV = (2,500 - 2,000) × $2.75 = 500 × $2.75 = $1,375 (Unfavorable)
To sum up:
Rate Variance: $1,125 (Unfavorable)Efficiency Variance: $1,375 (Unfavorable)On December 31, 2017, Blair Company issued $600,000 of 20‑year, 11 percent bonds payable for $554,861, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2018, and (c) the semiannual interest payment and discount amortization on December 31, 2018. Round amounts to the nearest dollar.
Answer:
No Account and explanation Debit Credit
Dec 31 Cash 554861
Discount on bonds payable 45139
Bonds payable 600000
(To record issuance of bonds)
June 30 Bond interest expense 33292
(554861*12%*6/12)
Discount on bonds payable 292
Cash (600000*11%*6/12) 33000
(To record first semiannual interest)
Dec 31 Bond interest expense 33309
(555153*12%*6/12)
Discount on bonds payable 309
Cash 33000
(To record interest)
The appropriate journal entries to reflect the issuance of the bonds and the semiannual interest payment and discount amortization are:
Blair Company Journal entries
a. Dec 31
Debit Cash $554,861
Debit Discount on Bonds payable $45,139
($600,000-$554,861)
Credit Bonds payable $600,000
(To record issuance of bonds)
b. Jun 30
Debit Bond interest expense $33,292
($554,861×12%/2)
Debit Discount on Bonds payable $292
($33,000-$33,292)
Credit Cash $33,000
($600,000×11%/2)
(To record semiannual interest payment)
c. Dec 31
Debit Bond interest expense $33,309
[($554,861+$292)×12%/2]
Credit Discount on Bonds payable $309
($33,000-$33,309)
Credit Cash $33,000
($600,000×11%/2)
(To record semiannual interest payment)
Learn more here:
https://brainly.com/question/12942800
Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of conversion.
Answer:
Equivalent units of conversion cost = 317,000 units
Explanation:
The equivalent unit is the notional whole units which represent incomplete work and is used to apportion cost between cost between work in progress and completed units
Item units Equivalent units
Opening WIP 80,000 (80,000× 80%) = 64,000
Fully worked 250,000 (250,000× 100) = 250,000
Closing WIP 30,000 (30,000× 10%) = 3,000
Total equivalent units 317,000.
1. DOC for opening inventory is 80%, that is 100%-20%. Remember that 20% work has been done in the previous period, so the balance is to be done in this current period
2. Fully work represent the units of inventory introduced in the current period and completed in the same period. Meaning 100% work was achieved in October .
3. Closing work is only 10% completed. This represent work started this period but not yet completed.
There are many buyers who value high-quality used cars at the full-information market price of p1 and lemons at p2. There are a limited number of potential sellers who value high-quality cars at v1 less than or equals p1 and lemons at v2 less than or equals p2. Everyone is risk neutral. The share of lemons among all the used cars that might potentially be sold is theta. Assume Upper P 1 greater than Upper P 2 comma v 1 greater than v 2, and there are no transaction costs. Under what conditions are all cars sold?
Answer:
Cars would be sold when P2 > V1,
Explanation:
Given Data
Cars = P1
Lemons = P2
Sellers who value high quality cars = V1 ≤
P1
Sellers who value high quality lemons = V2 ≤ P2
Share of lemons among used cars that might be sold = θ
EP = P1 ( θ ) + P2 ( θ ) > V1 > V2
Under which conditions are cars sold
1. Cars would be sold when P2 > V1,
2. Only lemons would be sold when P1 < V1
3. No cars would be sold if P2 is < V1
Final answer:
All cars in a used car market can be sold when there is alignment between the buyers' perceived quality (based on market price) and the sellers' valuations of their cars. This hints on clear information about the quality and proportion of lemons in the market, allowing for an informed and confident buying decision. Seller reputation, warranties, and certifications can also help to bridge the gap of imperfect information and allow all cars to be sold.
Explanation:
The condition under which all cars would be sold in a market where buyers base their assessment on market price, and where imperfect information about the quality of goods exists, revolves around the notion of adverse selection. For all cars to sell, both high-quality used cars (not lemons) and lemons must align with buyers' valuation such that the asking price matches the perceived quality. This assumes that the full-information market prices p1 (for high-quality cars) and p2 (for lemons) are equal to or greater than the valuations v1 and v2 set by sellers, respectively. The market must reach a point where buyers trust that the price reflects the quality, ensuring that cars valued at p1 are indeed high-quality and not lemons, and that cars priced at p2 provide value consistent with their lower quality.
In essence, an equilibrium is reached when the proportion of high-quality cars and lemons, represented by theta, is well-known to buyers and sellers, enabling them to adjust their expectations and price settings accordingly. This creates a transparent market where purchasers can make informed decisions, eliminating fears of inadvertently purchasing a lemon. Without assurance about car quality, mechanisms such as warranties, certifications, or well-established seller reputations might be needed to provide the buyer with sufficient confidence to proceed with a purchase despite the risk associated with imperfect information.
The following amounts were taken from the financial statements of Ando Company: 2017 2016 Total assets $800,000 $1,000,000 Net sales 720,000 650,000 Gross profit 352,000 320,000 Net income 108,000 117,000 Weighted average number of common shares outstanding 90,000 90,000 Market price of common stock $42 $39 The price-earnings ratio for 2017 is
Answer:
35 times
Explanation:
The price-earnings ratio is the financial ratio that compares the market price of a share with its earnings in order to determine whether the share gives earnings that makes it a good buy.
Price-earnings ratio=market price per share/earnings per share
market price per share for 2017 is $42
earnings per share=net income-dividends/average common stock outstanding
net income is $108,000
dividends is nil
average number of common stock is 90,000
earnings per share=$108,000-$0/90,000=$1.2
price earnings ratio=$42/$1.2=35 times
The income statements for Urban Outfits, Inc. are presented below: Urban Outfits, Inc. Income Statements Year Ended December 31 Current Year Prior Year Sales Revenue $ 806,559 $ 747,270 Cost of Goods Sold 403,589 373,505 Gross Profit 402,970 373,765 Operating and Other Expenses 141,050 129,500 Interest Expense 7,750 18,000 Income Tax Expense 48,200 46,700 Net Income $ 205,970 $ 179,565 Required: Prepare a horizontal analysis of the income statement above.
Answer and Explanation:
As per the data given in the question,
Prior year Current year Increase in $ increase in %
Sales $747,270 $806,559 $59,289 7.93%
COGS $373,505 $403.589 $30,084 8.05%
Gross Profit $373,765 $402,970 $29,205 7.81%
Operating and
other expenses$129,500 $141,050 $11,550 8.92%
Interest expense $18,000 $7,750 -$10,250 -56.94%
Income tax $46,700 $48,200 $1,500 3.21%
Net income $179,565 $205,970 $26,405 14.70%
Trio Company reports the following information for the current year, which is its first year of operations.
Direct materials $ 11 per unit
Direct labor $ 16 per unit
Overhead costs for the year
Variable overhead $ 2 per unit
Fixed overhead $ 100,000 per year
Units produced this year 25,000 units
Units sold this year 19,000 units
Ending finished goods inventory in units 6,000 units
Requried:
1. Compute the product cost per unit using absorption costing.
Answer:
Unitary product cost= $33
Explanation:
Giving the following information:
Direct materials $ 11 per unit
Direct labor $ 16 per unit
Overhead costs for the year
Variable overhead $ 2 per unit
Fixed overhead $ 100,000 per year
Units produced this year 25,000 units
Under the absorption costing cost method, the unitary product cost is calculated using the direct material, direct labor, and total unitary overhead.
First, we need to calculate the unitary fixed overhead:
Unitary fixed overhead= 100,000/25,000= $4
Unitary product cost= 11 + 16 + (2 + 4)= $33
$320,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $54,000 per year to operate and maintain, but would save $95,000 per year in labor and other costs. The old machine can be sold now for scrap for $32,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) Noreen_5e_Rechecks_2019_10_16 Multiple Choice 6.56% 29.69% 14.58% 7.29%
Answer:
7.29%
Explanation:
The computation of simple rate of return on the new machine is shown below:-
For computing thee simple rate of return first we need to find out the annual accounting return and investment which is here below:-
Annual accounting return = Savings - Cost - Depreciation
= $95,000 -$ 54,000 - (320,000 ÷ 16)
= 95,000 - 54,000 - 20,000
= $21,000
Investment = 320,000 - 32,000
= 288,000
Simple rate of return = Annual accounting return ÷ Investment
= $21,000 ÷ $288,000
= 7.29%
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,050,000 and the variable costs were $860,000. The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Answer:
Decrease by $132,100
Explanation:
Computation of the given data are as follow:-
We can calculate the Operating Income by using following formula:-
Fixed Cost = Fixed Cost * Dropped Rate
= $193,000 * 30/100
= $57,900
So, Operating Income = Sales - Variable Cost - Fixed Cost
= $,1050,000 - $860,000 - $57,900
= $132,100
According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.
The Whistling Straits Corporation needs to raise $80 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $35 per share and the company's underwriters charge a spread of 5 percent. If the SEC filing fee and associated administrative expenses of the offering are $600,000, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,567.)
Answer:
Number of shares= 2,424,060 units
Explanation:
The number of shares to be sold can be worked back as follows:
$
Gross proceeds 80,000,000
Administrative fees 600,000
80,600,000
Gross proceed inclusive of Underwriting fees
= 80,600,000/(100-8)%
=84,842,105.26
Number of shares to be sold = Gross proceeds/price per share
=$84,842,105.26 /$35
= 2,424,060.15
Number of shares= 2,424,060 units
Will give BRAINLIEST! Please read the question THEN answer correctly! No guessing.
Answer: The answer is A
Explanation: just took the test
Answer:
B
Explanation:
Jules would need seed capital, or an initial investment, likely to rent a store so that he could have somewhere to operate his jewelry store out of. Hope this helps!
Ziff Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Ziff Corp. sells to its customers on credit terms of 1/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Ziff Corp. get from the customer? (Note: Round your answer to the nearest whole dollar.) $138,750 $157,500 $148,500 $123,750
Answer:
$148,500
Explanation:
Data given
Sales = $150,000
Rate of discount = 10
The computation of Ziff Corp. cash received from customer is shown below:-
Total collection = Sale × (1 - Rate of discount)
= $150,000 × (1 - 0.01)
= $150,000 × 0.99
= $148,500
Therefore for computing the total collection we simply applied the above formula.
Consider consecutive processes A-B-C, where process A has a capacity of 25 units per hour, process B has a capacity of 30 units per hour, and process C has a capacity of 20 units per hour. In addition to having an inventory buffer in front of the final product (also known as finished goods), where would an operations manager, who practices the principles of Theory of Constraints, want another inventory buffer?
a. in front of process A
b. in front of process B
c. in front of process C
d. Inventory should not exist anywhere.
Answer:
Right option is C.
Explanation:
The operation manager will put the inventory in front of the process C. So, the right option is C.
As we have given the outputs of these processes:
Process A = 25 units/hr
Process B = 30 units/hr
Process C = 20 units/hr Lowest output among all processes.
As, we can see that the process C has the lowest output of all which is 20 units per hour. It clearly means that operation manager will utilize the low output of process C and put the inventory infront of process C in order to increase the output of the overall process.
has a target capital structure of 50% debt and 50% common equity. Davola funds debt by issuing 20-year, 8.6% semi-annual coupon bonds that currently sell for $900. Davola Inc. expects to pay a $1.75 dividend at the end of this year, its expected constant growth rate is 5%, and its common stock sells for $25. Their tax rate is 25%. 1. What is Davola’s component cost of debt? 2. What is Davola’s component cost of equity? 3. What Davoloa’s WACC?
Answer:
Cost of debt after tax is 7.3%
cost of equity is 12.35%
WACC is 9.83%
Explanation:
The cost of debt can be computed using the rate formula in excel.
The rate formula=rate(nper,pmt,-pv,fv)
the nper is the number of coupon payments the bond would make over its entire bond life i.e 20 years*2=40
pmt is the semiannual coupon=$1000*8.6%/2=$43
pv is the current price of $900
fv is the face value of $1000
=rate(40,43,-900,1000)=4.87%
yield =4.87%*2=9.74%
after tax cost=9.74%*(1-tax rate)=9.74%*(1-0.25%)=7.3%
The cost of equity:
share price=D*(1+g)/r-g
D is the dividend expected
g is the dividend growth rate
r is the cost of equity
r=(D*(1+g)/share price)+g
r=($1.75*(1+5%)/$25)+5%=12.35%
WACC=Ke*E/V+Kd*D/V
Ke is the cost of equity of 12.35%
E is 50% or 0.5
D is 50% or 0.5
V=0.5+0.5=1
Kd(after tax) =7.3%
WACC=(12.35%*0.5/1)+(7.3%*0.5/1)=9.83%
Fave Motion Pictures sells movie tickets for $ 15 per movie patron. Variable costs are $ 9.00 per movie patron and fixed costs are $ 51 comma 000 per month. The company's relevant range extends to 33 comma 000 movie patrons per month. What is Fave Motion Pictures' projected operating income if 20 comma 000 movie patrons see movies during a month?
Answer:
Fave Motion Pictures' projected operating income if 20,000 movie patrons see movies during a month is $ 69,000.
Explanation:
We subtract the variable and fixed costs from the sales revenue to get the projexted operating income.
Fave Motion Pictures
Operating Income for 20,000 units
Sales $ 15 * 20,000= $ 300,000
Variable costs $ 9.00 *20,000 = $180,000
Fixed costs $ 51, 000
Operating Income $ 69,000
Fave Motion Pictures
Operating Income for 33,000 units
Sales $ 15 * 33,000= $ 495,000
Variable costs $ 9.00 *33,000 = $297,000
Fixed costs $ 51, 000
Operating Income $ 147,000
The fixed costs will not change as they are treated as period costs given per month. Fave Motion Pictures' projected operating income if 20,000 movie patrons see movies during a month is $ 69,000.
Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 20% weight in equity, 5% in preferred stock, and 75% in debt. The cost of equity capital is 12%, the cost of preferred stock is 9%, and the pretax cost of debt is 8%. What is the weighted average cost of capital for Ford if its marginal tax rate is 35%?
Answer:
The WACC is 6.75%
Explanation:
The weighted average cost of capital, also called WACC, is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component in the capital structure or value of each component as a proportion of total assetsr represents the cost of each componentwe take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)The WACC is:
WACC = 0.75 * 0.08 * (1 - 0.35) + 0.05 * 0.09 + 0.20 * 0.12
WACC = 0.0675 or 6.75%
Colassard Industries has the following data available for preparation of its statement of cash flows: Sales revenue $385,800 Cost of goods sold 203,100 Wages expense 62,400 Insurance expense 13,780 Interest expense 15,150 Income taxes expense 27,400 Accounts receivable, decrease 15,600 Inventory, increase 8,710 Prepaid insurance, increase 1,550 Accounts payable, increase 3,680 Notes payable, increase 40,000 Interest payable, increase 1,240 Wages payable, decrease 6,700 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Use a minus sign to indicate any decreases in cash or cash outflows.
Answer:
Cash flows from operating activities section
Net Income before tax (385,800-203,100- 62,400-13,780-15,150) 91,370
Adjustment of Working Capital items :
Decrease in Accounts Receivable 15,600
Increase in Inventory (8,710)
Increase in Prepaid insurance (1,550)
Increase in Accounts payable 3,680
Increase in Notes payable 40,000
Increase in Interest payable 1,240
Decrease in Wages payable (6,700)
Net Cash flow from operating activities 134,940
Explanation:
The Indirect method of determining cash flows from operating activities adjust the net income against non-cash items included i income statement and working capital adjustments.
8. Written termination notices, with properly documented reasons for termination, and approval by an appropriate official are required. 9. All checks and notices of electronic payments not distributed to employees are returned to the treasurer for safekeeping and follow-up. 10. Online ability to add employees or change pay rates to the payroll master file is restricted via passwords to authorized human resource personnel. a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as adequate documents and records or physical control over assets and records). b. For each internal control, identify the transaction-related audit objective(s) to which it applies. c. For each internal control, identify a specific misstatement that is likely to be prevented if the control exists and is effective. d. For each control, list a specific misstatement that could result from the absence of the control. e. For each control, identify one audit test that the auditor could use to uncover misstatements resulting from the absence of the control. 12-21 (Objectives 12-1, 12-2, 12-3, 12-6) Lew Pherson and Vera Collier
Answer:
Part 8
a) Particular Control Action: acceptable agreement of actions and businesses.
b) Operation related audit: Presence of logged transactions.
c) Prevented particular mis-statement: The management avoids research of an unsuitable check for a worker who functioned for the association once.
d) Particular mis-statement in control deficiency: A worker who is previously terminated might still stay on the workforce and somebody else could acquire the payments in his name.
e) Audit test: Amazement payoff ought to be achieved wherever the auditor himself books for and issues the paychecks to the workers when they supply their credentials.
Part 9
a) Particular Control Action: Physical regulator on the archives and possessions, and enough isolation of responsibilities.
b) Operation related audit: Presence of logged transactions.
c) Prevented particular mis-statement: The management avoids research of checks for workers on holiday or absent and missing staffs.
d) Particular mis-statement in control deficiency: If the regulator isn't there the payments ready for absent staff may well be lost or might be taken by the worker chargeable for delivery of the payments.
e) Audit test: The auditor ought to examine the off payments to verify that every payment is supported befittingly, and therefore the worker for who the payment has been ready remains operating for the association.
Part 10
a) Particular Control Action: The transactions are accurately licensed and responsibilities are sufficiently divided.
b) Operation related audit: The logged transactions occur and are expressed at right amounts.
c) Prevented particular mis-statement: The management avoids research of payments within the name of false staff or at unapproved wage charges.
d) Particular mis-statement in control deficiency: If an equivalent staff are particular the duties of record possession and coming into new worker variety into the main file, it's doable that a false bank check is managed within the name of a false worker.
e) Audit test: The auditor ought to conceive to access the staff main file exploitation an illegal parole.
On June 1 of the current tax year, Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership. Elisha contributes cash of $227,520. Ezra contributes a building and land with an adjusted basis and fair market value of $379,200, subject to a liability of $151,680. The partnership borrows $23,700 to finance construction of a parking lot in front of the building. At the end of the first year (December 31), the accrual basis partnership owes $9,480 in trade accounts payable to various creditors. The partnership reported net income of $35,550 for the year that they share equally. Assume that Elisha and Ezra share equally in partnership liabilities. How much is Elisha's basis in the partnership interest on December 31
Answer:
Elisha's basis in the partnership interest on December 31 is $339,525
Explanation:
In order to calculate Elisha's basis in the partnership interest on December 31 we would to calculate the following formula as follows:
Elisha’s basis=cash contributes + liability/2 +reported net income/2 + partnership borrowship/2 + partnership obligations/2=
Elisha’s basis= $227,520+ $151,680/2 + $35,550/2 + $23,700/2 + $9,480/2
Elisha’s basis=$339,525
Elisha's basis in the partnership interest on December 31 is $339,525
Explain why each of the following statements is a rationale for conducting active or passive policy: Economic circumstances can change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy. Economists are not very accurate forecasters. Increases in government spending generate increases in economic output. Fluctuations in economic output have been less severe since World War II.
Answer:
The rationale for conducting active policy is the interest of Congress to alter the state of the economy through a deliberate change in established policies.
But in the case of Passive policy, the government permits the status quo.
Active policy relies on the government to enforce it while passive policy does not need the government's interference to work in stabilizing the economy.
Explanation:
The following statements applies passive policy because the economy is expected to stabilize on it's own without the deliberate act of congress influencing it:
Economic circumstances can change dramatically between the time that an economic downturn begins and the time when policy actions have an effect on the economy. Fluctuations in economic output have been less severe since World War II.The following statements is a rationale for conducting active policy since the government's intervention is required:
Economists are not very accurate forecasters.Increases in government spending generate increases in economic output.Consider two products, X and Y, that have identical cost, retail price, and demand parameters and the same short selling season (the summer months from May through August). The newsvendor model is used to manage inventory for both products. Product X is to be discontinued at the end of the season this year and the leftover inventory will be salvaged at 75 percent of the cost. Product Y will be reoffered next summer, so any leftovers this year can be carried over to the next year while incurring a holding cost on each unit left over equal to 20 percent of the product's cost. The quantity of each product is selected to maximize expected profit. How do those quantities compare?
Answer: b. stocking quantity of product B is higher.
Explanation:
We are using the Newsvendor model and are told that the products have identical cost, retail price, and demand parameters and the same short selling season.
Using this model, it is important to understand 2 terminologies for this question, Overage cost and Underage costs.
Overage Costs is the cost of unused inventor and is calculated by subtracting Salvage Value from the cost price.
Underage costs are costs arising from unmet Demand. In this scenario they are the same because both products share the same demand.
The Overage costs for the products are,
Overage cost for Product X =100-75
=25%
Overage cost for Product Y = 20%
When deciding which product to stick more of we look at the one with the higher CRITICAL RATIO.
The formula of which is,
= Cu/(Cu+Co)
Where,
Cu is the Underage cost,
Co is the Overage cost
As earlier mentioned, both have the same Underage cost meaning that B will give a higher CRITICAL ratio as it's Co is smaller.
Product B should therefore be stocked more than Product A.
Answer:
Stocking quantity of product B is higher
Explanation:
Overage cost for Product A(Co)=100-75=25%
Overage cost for Product B (Co)=20%
The underage cost (Cu) for both the products is same hence critical ratio i.e, Cu/(Cu+Co) is lower for product A than Product B which means product B should will be stocked more compare to product A
So the correct answer will be stocking quantity of product B is higher
The accounting records for Eisner Manufacturing Company included the following cost information relating to its first year of operations: Direct materials $ 52,000 Direct labor $ 80,000 Fixed manufacturing overhead $ 91,000 Variable manufacturing overhead $ 25,000 Assume the company produced 10,000 units of inventory and sold 6,000 of these units during the year for $184,000. The cost per unit under variable and absorption costing would be, respectively: Multiple Choice $18.70 and $28.80. $13.70 and $8.80. $4.70 and $9.80. $15.70 and $24.80.
Answer:
Option (d) : $24.8 and $15.7
Explanation:
As per the data given in the question,
Number of units produced = 10,000
Number of units sold = 6,000
Cost per unit = Amount/ 10,000
Absorption Variable
Direct material $5.2 $5.2
Direct Labor $8 $8
Variable manufacturing overhead $2.5 $2.5
Fixed manufacturing overhead $9.1 $9.1
Unit product cost $24.8 $15.7
Desert Company reports the following Income Statement accounts on its Trial Balance for the year ended December 31, 2020: Sales Revenue $280,000 Cost of Goods Sold 170,000 Administrative Expenses 20,000 Loss on Disposal of Equipment 8,000 Sales Commission Expense 12,000 Interest Revenue 7,000 Loss from Discontinued Operations 32,000 Bad Debt Expense 4,000 What should Desert report for Income from Continuing Operations before Income Taxes on its 2020 Income Statement?
a. $73,000
b. $41,000
c. $81,000
d. $66,000
Answer:
a. $73,000
Explanation:
According to the scenario, computation of the given data are as follow:-
Desert company income statement
Particular Amount ($)
Total Revenue (sales revenue + interest revenue) 287,000
Total expenses excluding loss from discontinuing operation
($246,000 - 32,000) -214,000
Income from continuing operations before income tax 73,000
Working notes:
Total Revenue =Sales Revenue + Interest Revenue
= $280,000 + $7,000
= $287,000
Total Expenses = Cost of Goods Sold + Administrative Expenses + Loss on Disposal of Equipment + Sales Commission Expense + Loss From Discontinued Operations + Bad-Debt Expense
= $170,000 + $20,000 + $8,000 + $12,000 + $32,000 + $4,000
= $246,000
Which of the following statements about GDP is correct? a. GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services. b. Money continuously flows from households to firms and then back to households, and GDP measures this flow of money. c. GDP is generally regarded as the best single measure of a society’s economic well-being. d. All of the above are correct.
Answer:
d. All of the above are correct.
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
GDP can be calculated using the expenditure or income approach.
Using the expenditure approach, GDP = Consumption spending + Investment spending + Government Spending + Net Export
GDP calculated using either the income and expenditure approach always arrives at the same figure.
Real GDP per capita is used to measure the level of wellbeing in the society.
I hope my answer helps you
The management of Jeremynt Inc., a public relations firm, gives each of its teams the responsibility of increasing their productivity through measures developed by the team members and approved by the respective team managers. The company then measures the team-level productivity, and the cost savings resulting from the improvements in productivity are split among its employees. In this scenario, Jeremynt Inc. is most likely using a group incentive system called _____.
Answer:
gainsharing incentive
Explanation:
In simple words, A gainsharing system on a theoretical level is essentially a group reward program-a productivity pay pro- gram-in which workers as a collective receive incentives to collaborate to boost plant efficiency. In comparison to something like a profit-sharing system, incentives are much more directly related to the success of individual workers or teams of workers in a gain-sharing opportunity.
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $ 80,000 $ 180,000
February $ 85,000 $ 200,000
March $ 46,000 $ 160,000
April $ 41,000 $ 126,000
May $ 51,000 $ 230,000
June $ 110,000 $ 200,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
45% in month of sale
50% in month following sale
5% in second month following sale
The accounts receivable balance on January 1 of the current year was $81,000, of which $55,000 represents uncollected December sales and $26,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be ______.
Answer:
The LaGrange Corporation
The total cash collected during January by LaGrange Corporation would be $237,000.
Explanation:
January Collections:
1. January cash sales = $80,000
2. 45% January sales = $81,000
3. 50% December sales = $50,000 *
4. 5% November sales = $26,000
Total = $237,000
* Uncollected December sales = $55,000. This represents 55% (50% collectible in January and 5% collectible in February). Therefore January collection will be equal to $55,000/55 * 50 = $50,000.
A broker advertised in his local newspaper that a home was for sale for $50,000 when it was really for sale for $500,000. A buyer called in and was told that this was simply a typing error and that the correct price was $500,000. The buyer was angry that the associate was so arrogant on the phone and the buyer filed a written complaint with the FREC. The most serious determination by the FREC would be to:
Answer: Punish the broker with an administrative fee of $1000 up to a one-year suspension
Explanation: In situations such as described in the question, the most serious determination by the Florida Real Estate Commission (FREC) in response to a complaint by a buyer who filed a written complaint concerning the arrogance of the associate would be to punish the broker with an administrative fee of $1000 up to a one-year suspension.
Beach Runner makes running shoes and they are anticipating the incurrence of the following manufacturing overhead costs during the upcoming year: Cost Indirect materials...........$4,000 Indirect Labor .......................$70,000 Utilities...................................$42,000 Insurance.................................$7,000 Taxes.........................................$9,000 Depreciation on equipment $20,000 What will Beach Runner budget for cash disbursements related to manufacturing overhead? (1 Point)
Answer:
Beach Runner
Manufacturing Overhead Budget for Cash Disbursements:
Indirect materials = $4,000
Indirect labor = $70,000
Utilities = $42,000
Insurance = $7,000
Taxes = $9,000
Total = $132,000
Explanation:
Cash disbursement will not be incurred in respect of Depreciation on equipment. This is why depreciation is excluded.
Depreciation of a capital asset is not a cash flow item. Depreciation is an accounting technique or measure used to spread the cost of a capital asset over its useful life in accordance with the matching principle.
week 3 and week 4 calculation and explanation required
Week 3
RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 108 million shares during July 2018. The directors allot 90 million shares on 15 August 2018. All applicants receive shares on a pro rata basis. The amounts payable on allotment are due by 20 September 2018. By 20 September 2018 the holders of 18 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2018.
The shares are resold on 15 October 2018 as fully paid. An amount of $2.00 per share is received. The balance of forfeited shares is refunded on 20 October 2018.
Required:
Provide the journal entries necessary to account for the above transactions and events.
Week 4
Provide some examples of items that would be adjusted directly against equity, rather than being included as part of profit or loss. and explain it
Answer:
RCK Ltd
Journal Entries:
July 2018:
Debit Stock Application Account with $90,000,000
Credit Common Stock with $90,000,000
To record issue of prospectus for 90 million shares at $1 per share on application.
Debit Cash Account with $108,000,000
Credit Stock Application Account with $90,000,000
Credit Stock Allotment Account with $18,000,000
To record receipt of subscription for 108 million shares.
August 15:
Debit Stock Allotment Account with $90,000,000
Credit Common Stock with $90,000,000
To record 90 million shares at $1 on allotment.
September 20:
Debit Cash Account with $54,000,000
Credit Stock Allotment with $54,000,000
To record receipt of allotment money.
September 30:
Debit Forfeited Stock Account with $18,000,000
Credit Stock Allotment Account with $18,000,000
To record the forfeiture of 18 million shares on allotment.
October 15:
Debit Cash Account with $36,000,000
Credit Forfeited Stock Account with $36,000,000
To record the resale of forfeited shares.
October 20:
Debit Forfeited Stock Account with $18,000,000
Credit Cash Account with $18,000,000
To record the refund of forfeited shares.
Explanation:
a) When shares are issued, the application money is debited to the Stock Application Account while the corresponding credit goes to the (Common) Stock Account.
b) When the application money is received, the Cash Account is debited with the amount received and a credit to the Stock Application Account to close the account. If oversubscription is involved the difference is transferred to the allotment account for part settlement of allotment money.
c) The forfeiture of shares means that the potential shareholders failed to pay up the balance due on their allotted shares. The shareholders therefore lose the balance they have already contributed.
d) The reissue of forfeited shares is done in such a way that the difference is received to balance off the forfeited shares account. However, management may decide to receive the shares at par and refund the forfeited shares balance.
ou are the loan department supervisor for the Pacific National Bank. The following installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate, and the payoff for each loan. Enter the rebate fraction in this form: numerator / denominator (e.g., 82/165). Do not round intermediate calculations. Round your answers for finance charge rebate and loan payoff to the nearest cent. Do not reduce to lowest terms. Amount Financed Number of Payments Monthly Payment Payments Made Rebate FractionFinance Charge Rebate Loan Payoff $6,50024$570.515
Answer:
$56.74
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the problem
Solution Correct Response Calculate the amount financed, the finance charge, and the monthly payments for the following add-on interest loan. Purchase(Cash) Price Down Payment Amount Financed Add-onInterest Number of Payments Finance Charge $78810% $8%12 $56.74
According to the efficient market theory, A. prices of actively traded stocks can only be over-valued in an efficient market B. prices of actively traded stocks do not differ from their true values in an efficient market C. prices of actively traded stocks can be under- or over-valued in an efficient market, and bear searching out D. prices of actively traded stocks can only be under-valued in an efficient market
Answer: B. prices of actively traded stocks do not differ from their true values in an efficient market
Explanation: The efficient market theory postulates that the market is generally efficient with prices of actively traded stocks do not differ from their true values in an efficient market. As a result, prices of securities such as stocks reflect all available information, thus making it needles to engage in stock picking with hopes to "beat the market" on a risk-adjusted basis. This is because the market only reacts to new information.