Answer:
Equivalent units for conversion costs = 60,000 units
Explanation:
Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in progress inventory
Units transferred to the next department = 4,800 + 68,000 - 32,000
Units transferred to the next department = 40,800
Ending work in progress for conversion = 32,000 * 60%
Ending work in progress for conversion = 19,200
Equivalent units for conversion costs = Units transferred to the next department + Ending work in progress for conversion
Equivalent units for conversion costs = 40,800 + 19,200
Equivalent units for conversion costs = 60,000 units
Landscapers often work with which of the following, requiring an academic background in this area?
Answer:
On-the-job training is required to become a landscaping and groundskeeping worker. Landscape architects, however, need a bachelor's or master's degree, and landscape designers are required to have at least an associate's degree to prepare for their careers. Licensing and certification requirements vary by career and state.
Explanation:
There are no formal requirements to be a landscaper, but most employers will expect you to have some horticulture knowledge and experience.
Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year.
Required:
Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model.
a. Pontoon: $2,520 per unit; Speedboat: $1,680 per unit.
b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
c. Pontoon: $2,800 per unit; Speedboat: $4,200 per unit.
d. Pontoon: $4,200 per unit; Speedboat: $2,800 per unit.
e. Pontoon: $4,200 per unit; Speedboat: $6,300 per unit.
The overhead cost per unit for each model is b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
Overhead cost per unitsTotal budgeted direct labor hours for Pontoon=(200 units×16 hours/unit)
Total budgeted direct labor hours for Pontoon=3200 hours
Total budgeted direct labor hours for Speedboat=(200 units×24 hours/unit)
Total budgeted direct labor hours for Speedboat=4,800
Total budgeted direct labor hours=3200+4800
Total budgeted direct labor hours=8,000
Overhead cost per units
Pontoon=840,000/8000×16
Pontoon=1,680 per units
Speedboat=840,000/8000×24
Speedboat=2,520 per units
Inconclusion the overhead cost per unit for each model is b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
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Howie’s Carpet World has just received an order for carpets for a new office building. The order is for 4,000 yards of carpet 4-feet wide, 20,000 yards of carpet 9-feet wide, and 9,000 yards of carpet 12-feet wide. Howie can buy 2 kinds of carpet rolls from his supplier, namely 14 feet wide carpet and 18 feet wide; and Howie will cut the carpet for the new office building order from whatever carpet he buys from his supplier. The 14 feet wide carpeting comes in rolls of 100-yards long and costs $1,000 per roll; the 18 feet wide carpeting also comes in rolls of 100-yards long, but it costs $1,400 per roll. Howie needs to determine how many of the two types of carpet rolls to buy from his supplier and how they should be cut in order to minimize his cost of filling the order. Howie will throw away any of the carpet not used after cutting. Refer to Unit 5 Slide 9 for consideration of cutting patterns.
Answer:
the question is missing the part of the cutting patterns required:
4,000 yards of 4 ft wide carpet20,000 yards of 9 ft wide carpet 9,000 yards of 12 ft wide carpet2) in order to obtain the 20,000 yards of 9 ft wide carpet, the company must purchase 10,000 yards of 18 ft wide carpet = (10,000 / 100) x $1,400 = $140,000
1) if you buy 1,000 more yards of 18 ft wide carpet, you will be able to get the 4,000 yards of 4 ft wide = (1,000 / 100) x $1,400 = $14,000.
You could also purchase 1,400 yards of the 12 ft wide carpet (you will also get the 4,000 yards that you need) at the same cost = (1,400 / 100) x $1,000 = $14,000
3) finally you must purchase 9,000 yards of 14 ft wide carpet to get the remaining 9,000 yards of 12 ft wide carpet = (9,000 / 100) x $1,000 = $90,000
total cost = $140,000 + $14,000 + $90,000 = $244,000
Coatney Incorporated has provided the following data for the month of October. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In Process Finished Goods Cost of Goods Sold Total Direct materials $ 3,760 $15,870 $ 76,130 $ 95,760 Direct labor 2,400 12,420 59,580 74,400 Manufacturing overhead applied 1,950 6,240 30,810 39,000 Total $ 8,110 $34,530 $166,520 $209,160 Manufacturing overhead for the month was overapplied by $7,000. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The finished goods inventory at the end of October after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:
Answer:
$33,410
Explanation:
The computation of Ending finished goods inventory after allocation of underapplied or overapplied manufacturing overhead is shown below:-
Ending finished goods inventory after allocation of overapplied manufacturing overhead
= (Total of finished goods - (Manufacturing overhead applied of finished goods ÷ Total of Manufacturing overhead applied) × Overapplied amount
= ($34,530 - ($6,240 ÷ $39,000) × $7,000)
= $34,530 - $1,120
= $33,410
ARE YOU WILLING TO WORK LONG HOURS WITH LITTLE IMMEDIATE COMPENSATION?
a. Raw materials purchased on account, $209,000.
b. Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials).
c. Accrued direct labor cost of $48,000 and indirect labor cost of $20,000.
d. Depreciation recorded on factory equipment, $106,000.
e. Other manufacturing overhead costs accrued during October, $131,000.
f. The company applies manufacturing overhead cost to production using a predetermined rate of $5 per machine-hour. A total of 76,100 machine-hours were used in October.
g. Jobs costing $515,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
h. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 38% above cost.
Required:
1. Prepare journal entries to record the transactions given above.
2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account.
Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000.
Answer:
1. Journal Entries
a.
Debit Raw materials $209,000
Credit Accounts Payable $209,000
To record the purchase of raw materials on account.
b.
Debit Work in Process $152,800
Debit Manufacturing Overhead $38,200
Credit Raw materials $191,000
To record raw materials used in production as direct and indirect materials respectively.
c.
Debit Work in Process $48,000
Debit Manufacturing Overhead $20,000
To record direct and indirect labor costs.
d.
Debit Manufacturing Overhead $106,000
Credit Depreciation Expense-Equipment $106,000
To record depreciation on factory equipment.
e.
Debit Manufacturing Overhead $131,000
Credit Expenses Payable $131,000
To accrue other manufacturing overhead costs.
f.
Debit Work in Process $380,500
Credit Manufacturing Overhead $380,500
To apply manufacturing overhead cost to production.
g.
Debit Finished Goods Inventory $515,000
Credit Work in Process $515,000
To transfer goods to finished goods inventory.
h.
Debit Cost of Goods Sold $451,000
Credit Finished Goods Inventory $451,000
To record the cost of goods sold.
Debit Accounts Receivable $622,380
Credit Sales Revenue $622,380
To record the sale of goods on account at 38% above cost.
2. T-accounts for Manufacturing Overhead and Work in Process
Manufacturing Overhead
Account Title Debit Credit
Raw materials $38,200
Indirect labor cost 20,000
Depreciation-Equip. 106,000
Other costs 131,000
Work in Process $380,500
Ending balance 85,300
Work in Process
Account Title Debit Credit
Beginning Balance $35,000
Raw materials 152,800
Direct labor cost 48,000
Manuf. Overhead 380,500
Finished Goods $515,000
Ending Balance 101,300
Explanation:
Manufacturing overhead applied = 76,100 * $5 = $380,500
Manufacturing overhead overapplied = $85,300
On September 3, 2003, the finance ministers of G7 industrialized countries endorsed "flexibility" in exchange rates, a code word widely regarded as an encouragement for China and Japan to stop managing their currencies. Both countries have been actively intervening in the foreign exchange market to weaken their currencies against the dollar and thereby improve their exports. China and Japan had been seen buying billions of dollars in U.S. Treasury bonds. The G7 statement prompted massive selling of the U.S. dollar and dollar assets. The dollar fell 2% against yen, the biggest one-day drop that year, and U.S. Treasury bonds saw a steep decline in value as well.
Required:
How did China managed to weaken its currency against dollar?
Answer:
China is a mixed economy where private firms are co-owned by the government, and they are highly regulated. Also, only private firms that are friendly with government officials prosper. E.g. back in March, one of China's richest businessman criticized the government and its handling of the current health crisis, and he was thrown into jail and sentenced to 18 years in prison.
This results in the Chinese government having a lot of power to guide how Chinese corporations work. The Chinese government artificially undervalued the yuan by purchasing foreign securities (not only US bonds, but also European bonds). Even though China has a trade surplus, its currency didn't appreciate like a normal currency would. This allows Chinese products to be cheaper and more competitive.
Even when the Chinese government said that they (as the government) would stop purchasing foreign securities, they ordered Chinese companies to do so. At the end the result was the same, China balances its currency through purchases of foreign securities either directly or indirectly (through companies co-owned by the government).
What is a dashboard? What are the elements? and how is it useful for
managers?
Answer:
Contains series of information of a personal details
Explanation:
To know their statistics day to day of how things are going on.
The income statement of Carla Vista Co. for the month of July shows net income of $4,000 based on Service Revenue $7,750, Salaries and Wages Expense $2,140, Supplies Expense $960, and Utilities Expense $650. In reviewing the statement, you discover the following:_______.
1. Insurance expired during July of $530 was omitted.
2. Supplies expense includes $360 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $180 was omitted.
4. Accrued but unpaid wages at July 31 of $380 were not included.
5. Service performed but unrecorded totaled $800.
Required:a. What effect do the corrections have on the amount reported as total assets on the balance sheet?b. What effect do the corrections have on the amount reported as total liabilities on the balance sheet?
Answer:
a. Assets increase by $450
b. Liabilities increase by $380
Explanation:
a. Effect on Assets
= Supplies omitted + Unrecorded services - omitted insurance - depreciation
= 360 + 800 - 530 - 180
= +$450
b. Effect on Liabilities
Wages are accrued and unpaid. Company owes these wages which makes it a liability.
Effect on liability = +$380
The following transactions occurred during December 31, 2021, for the Falwell Company.
A three-year fire insurance policy was purchased on July 1, 2021, for $9,000. The company debited insurance expense for the entire amount. Depreciation on equipment totaled $10,000 for the year. Employee salaries of $12,000 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrowed $100,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. On December 1, 2021, the company received $3,300 in cash from another company that is renting office space in Falwellâs building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. On December 1, 2021, the company received $3,300 in cash from another company that is renting office space in Falwellâs building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $3,300 on December 1, 2021.
Required:
Prepare the necessary adjusting entries for each of the above situations.
Answer and Explanation:
The journal entries are shown below:
1. Prepaid insurance ($9,000*30/36) $7,500
To Insurance expense $7,500
(Being prepaid insurance is recorded)
2. Depreciation expense $10,000
To Accumulated depreciation-Equipment $10,000
(Being the depreciation expense is recorded)
3. Salaries expense $12,000
To Salaries payable $12,000
(Being the salaries expense is recorded)
4. Interest expense ($100,000 × 12% × 2 ÷ 12) $2,000
To Interest payable $2,000
(Being the interest expense is recorded)
5. Deferred rent revenue ($3,300 ÷ 3) $1,100
To Rent revenue $1,100
(Being the deferred rent revenue is recorded)
6. Rent revenue $2,200
To Deferred rent revenue $2,200
(Being the rent revenue is recorded)
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases.
Consider the following case:
Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation.
If Tolbotics Inc. declares a 3-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be___________ .
Hackworth Hardware Company is one of Robotics leading competitors. Hackworth Hardware Company’s market intelligence research team shares Robotics plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock outstanding.
If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders?
Answer:
Stock Splits:
1. Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation.
If Tolbotics Inc. declares a 3-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be____$30_______ .
2. Hackworth Hardware Company is one of Robotics leading competitors. Hackworth Hardware Company’s market intelligence research team shares Robotics plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock outstanding.
If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders?
= 66,000
Explanation:
The 3-for-1 stock split shares offered to stockholders by Tolbotics Inc. will result into a share price of $33 ($99/3). This effectively reduces the stock exchange market price but does not affect its shareholders adversely since they still retain the same value of shareholding in the company. Shareholders may even gain more in capital appreciation if the share price goes up after the split.
Hackworth Hardware Company is offering its shareholders a total of 66,000 additional shares (6% of 1,100,000) in the form of dividends.
Consider the following situations for Shocker:
a. On November 28, 2021, Shocker receives a $4,200 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.
b. On December 1, 2021, the company pays a local radio station $2,640 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c. Employee salaries for the month of December totaling $7,800 will be paid on January 7, 2022.
d. On August 31, 2021, Shocker borrows $68,000 from a local bank. A note is signed with principal and 6% interest to be paid on August 31, 2022.
Required:
Record the necessary adjusting entries for Shocker at December 31, 2018. No adjusting entries were made during the year.
Answer:
(a)Dr Unearned Revenue $1,400
Cr Service Revenue $1,400
(b)Dr Advertising Expense $880
Cr Prepaid Advertising $880
(c)Dr Salaries Expense $7,800
Cr Salaries Payable $7,800
(d)Dr Interest Expense $1,360
Interest Payable $1,360
Explanation:
Preparation of Journal entries
(a) Based on the information given we were told that Shocker receives the amount of $4,200 payment from a customer for the services they would rendered over the next 3 months which means that the Journal entry will be:
Dr Unearned Revenue $1,400
($4,200 x 1/3)
Cr Service Revenue $1,400
(b) Based on the information given we were told that the company pays a local radio station the amount of $2,640 for radio ads throughout three month which are December, January, and Februarywhich means that the Journal entry will be recorded as:
Dr Advertising Expense $880
($2,640 x 1/3)
Cr Prepaid Advertising $880
(c) Based on the information given we were told that the company Employee salaries for the month of December was the amount of $7,800 which will be paid on January 7, 2022 which means that the Journal entry will be:
Dr Salaries Expense $7,800
Cr Salaries Payable $7,800
(d) Based on the information given we were told that Shocker borrows the amount of $68,000 from a local bank which means that the Journal entry will be:
Dr Interest Expense $1,360
($68,000 x 6% x 4/12)
Interest Payable $1,360
Lena Kay and Kathy Lauder have a patent on a new line of cosmetics. They need additional capital to market the products, and they plan to incorporate the business. They are considering the capital structure for the corporation. Their primary goal is to raise as much capital as possible without giving up control of the business. Kay and Lauder plan to invest the patent in the company and receive 100,000 shares of the corporation's common stock. They have been offered $100,000 for the patent.
The corporation’s plans for a charter include an authorization to issue 5,000 shares of preferred stock and 500,000 shares of $1 par common stock. Kay and Lauder are uncertain about the most desirable features for the preferred stock. Prior to incorporating, they are discussing their plans with two investment groups. The corporation can obtain capital from outside investors under either of the following plans:
Plan 1. Group 1 will invest $150,000 to acquire 1,500 shares of 6%, $100 par nonvoting, noncumulative preferred stock.
Plan 2. Group 2 will invest $100,000 to acquire 1,000 shares of $5, no-par preferred stock and $70,000 to acquire 70,000 shares of common stock. Each preferred share receives 50 votes on matters that come before the common stockholders.
Assume that the corporation is chartered.
Required:
a. Journalize the issuance of common stock to Kay and Lauder.
b. Journalize the issuance of stock to the outsiders wider both plans.
c. Net income for the first year is $180,000 and total dividends are $30,000. Prepare the stockholders' equity section of the corporation's balance sheet under both plans.
a. The journalizing of the issuance of common stock to Kay and Lauder is as follows:
Debit Patent $100,000
Credit Common Stock $100,000
Issuance of 100,000 shares at $1 each.b. The journalizing of the issuance of stock to the outsiders under both plans is as follows:
Plan 1:
Debit Cash $150,000
Credit 6% Preferred stock $150,000
Issuance of 1,500 shares at $100 par.Plan 2:
Group 2:
Debit Cash $100,000
Credit Preferred stock, 1,000 shares at $5, $5,000
Credit Additional Paid-in Shares: Preferred $95,000
Issuance of 1,000 shares at $5 each for $100,000.Debit Cash $70,000
Credit Common Stock $70,000
Issuance of 70,000 shares at $1c. The Stockholders' Equity Section of the Kay and Lauder Corporation is as follows:
Stockholders Equity:
Plan 1:
6% Preferred stock, 1,500 shares at $100, $150,000
Common stock $100,000
Plan 2:
Preferred stock, 1,000 shares at $5, $5,000
Additional Paid-in Shares: Preferred $95,000
Data and Calculations:Value of Patent = $100,000
Authorized preferred stock = 5,000 shares
Authorized common stock = 500,000 shares at $1 par value
Plan 1:
Group 1:
6% Preferred stock, 1,500 shares at $100 par = $150,000
Plan 2:
Group 2:
Preferred stock, 1,000 shares at $5 = $5,000
Additional Paid-in Shares: Preferred = $95,000 ($100,000 - $5,000)
Common Stock, 70,000 shares at $1 = $70,000
Voting shares = 50,000 (1,000 x 50)
Net income $180,000
Plan 1: Dividends:
Preferred dividend $9,000
Common stock 21,000
Total dividends ($30,000)
Retained earnings $150,000
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Lydia Hagberg went to her bank, California Federal Bank, FSB, to cash a check made out to her by Smith Barney (SB), an investment services firm. Nolene Showalter, a bank employee, suspected that the check was counterfeit. Showalter called SB and was told that the check was not valid. As she phoned the police, Gary Wood, a bank security officer, contacted SB again and was informed that its earlier state3ment was "erroneous" and that the check was valid. Meanwhile, a police officer arrived, drew Hagberg away from the teller’s window, spread her legs, patted her down, and handcuffed her. The officer searched her purse, asked her whether she had any weapons and whether she was driving a stolen vehicle, and arrested her. Hagberg filed a suit in a California state court against the bank and others, alleging slander.
Required:
Should the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contracts the police to report suspected criminal activity? Explain fully why or why not?
Answer:
Yes the absolute privilege for communications made in judicial or other official proceedings apply to statements made when a citizen contracts the police to report suspected criminal activity
Explanation:
Absolute priviledge for communication is the provision that covers a person from legal action on grounds of defamation for statements made. Under certain circumstances a person can make defamatory statements and be immune from legal action.
In this scenario Lydia Harberg went to California Federal Bank to cash a check that was suspected to be fake.
Nolene Showalter contacted SB to confirm. Based on the information provided at that time, the check was confirmed to be fake. The implication was that a fraud was being perpetrated.
So his action of calling the police is justified. SB only verified they gave out wrong information the first time
Question 14
A business could attribute a rise in sales to a radio advertising campaign if
o other businesses in the area had a similar rise.
O the radio ads were the only promotion at the time.
O people used the Internet to listen to the radio.
O one customer mentioned that she heard the ad on the radio.
The reason that businesses could attribute to a rise in sales to a radio advertising campaign is that the radio ads were the only promotion at the time.
Why would radios lead to a rise in sales?When sales rise it is usually the result of a increased promotional campaign aimed at getting customers to buy goods and services.
If there is a rise in sales and radio ads are the only way to promote a company in a certain area, then it means that the radio ads are the reason the sales increased.
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Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes:
Mixing and Packaging.
All materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in ProcessâMixing $0, Work in ProcessâPackaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 units were started into production in the Mixing Department and the following transactions were completed.
1. Purchased $300,000 of raw materials on account.
2. Issued raw materials for production: Mixing $210,000 and Packaging $45,000.
3. Incurred labor costs of $258,900.
4. Used factory labor: Mixing $182,500 and Packaging $76,400.
5. Incurred $810,000 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 28,000 in Mixing and 6,000 in Packaging.
7. Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.
8. Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.
Sold goods costing $1,604,000 for $2,500,000 on account.
.
No. Account Titles and Explanation Debit Credit
1
2
3
4
5
6
7
8
9
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Account DEBIT CREDIT
1
raw material inventory 300,000
accounts payable 300,000
-
2
work in process inventory- Mixing 210,000 -
work in process inventory- Packaging 45,000
raw material inventory 255,000
-
3
Factory payroll 258,900 -
Wages payable 258,900
-
4
work in process Labor- Mixing 182,500 -
work in process Labor Packaging 76,400
Factory payroll 258,900
-
5
Manufacturing overhead 810,000 -
overhead payable 810,000
-
6
work in process Mixing 672,000 -
work in process Packaging 144,000
Manufacturing overhead 816,000
-
7
work in process Labor Packaging 979,000 -
work in process Labor- Mixing 979,000
-
8
Finished goods 1,315,000 -
work in process Labor Packaging 1,315,000
-
9
Accounts receivable 2,500,000 -
Sales 2,500,000
-
Cost of goods sold 1,604,000 -
Finished goods 1,604,000
The entries of No. Account Titles and Explanation Debit Credit of Fire Out Company manufactures its product, Vitadrink is given below:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Account DEBIT CREDIT
1
raw material inventory 300,000
accounts payable 300,000
2
work in process inventory- Mixing 210,000 -
work in process inventory- Packaging 45,000
raw material inventory 255,000
3
Factory payroll 258,900 -
Wages payable 258,900
4
work in process Labor- Mixing 182,500 -
work in process Labor Packaging 76,400
Factory payroll 258,900
5
Manufacturing overhead 810,000 -
overhead payable 810000
6
work in process Mixing 672,000 -
work in process Packaging 144,000
Manufacturing overhead 816,000
7
work in process Labor Packaging 979,000 -
work in process Labor- Mixing 979,000
8
Finished goods 1,315,000 -
work in process Labor Packaging 1,315,000
9
Accounts receivable 2,500,000 -
Sales 2,500,000
Cost of goods sold 1,604,000 -
Finished goods 1,604,000
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A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France?
A. A popular French nutrition author claims that milk is bad for people's health.
B. French consumers expect the price of milk to increase in the future.
C.
the French population declines steadily due to years of economic problems.
D. Cheese and other products made from milk become less popular in France
A situation that would most likely cause demand for milk to rise in France is French consumers expect the price of milk to increase in the future.
What causes an increase in the demand for a product?The demand for a product is affected by:
future expectationschange in the price of other goodsChange in the income of consumersWhen it is expected that the price of a product would increase in the future. Consumers would want to buy the product now when it is cheaper so as to save money.
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Answer it is D:
Explanation:
Short term creditors are usually interested in evaluating
Answer:
Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.
Mason (single) is a 50 percent shareholder in Angels Corp. (an S Corporation). Mason receives a $180,000 salary working full time for Angels Corp. Angels Corp. reported $400,000 of taxable business income for the year (2020). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason’s adjusted gross income is $180,000 (all salary from Angels Corp.).
Required:
What is Mason’s net investment income tax liability (assume no investment expenses)?
Answer:
$6,840
Explanation:
Given that:
Mason receives a salary amount of $180,000
Taxable business income = $400,000 × 50%
Adjusted Gross Income = $180,000 + $200000
Adjusted Gross Income = $380000
The net investment income tax liability is:
= (380000 -200000) × 3.8%
= 180000 × 3.8%
= $6,840
Gitano Products operates a job-order costing system and applies overhead cost tojobs on the basis of direct materialsused in production(noton the basis of raw materialspurchased). Its predetermined overhead rate was based on a cost formula that estimated$119,600 of manufacturing overhead for an estimated allocation base of $92,000 directmaterial dollars to be used in production. The company has provided the following data forthe just completed year:________.
Purchase of raw materials $140,000
Direct labor cost $89,000
Manufacturing overhead costs
Indirect labor $106,300
Property taxes $8,000
Depreciation of equipment $18,000
Maintenance $15,000
Insurance $8,200
Rent. building $39,000
Beginning Ending
Raw Materials $24,000 $17,000
Work in Process $48,000 $35,000
Finished Goods $69,000 $57,000
Required:
1. Compute the predetermined overhead rate for the year.
PREDETERMINED OVERHEAD RATE _____%2. Compute the amount of underapplied or overapplied overhead for the year._____ overhead _____
Answer:
$3,400
Explanation:
The computation of predetermined overhead rate for the year is shown below:-
Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100
= $119,600 ÷ $92,000 × 100
= 130%
2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-
Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate
= ($24,000 + $140,000 - $17,000) × 130%
= $147,000 × 130%
= $191,100
Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000
= $194,500
Underapplied overhead = $194,500 - $191,100
= $3,400
Which of the following government agencies regulates financial markets?
a. OSHA
b. The IRS
c. The FAA
d. The OTS
(sorry if it’s wrong category)
Answer:
THE OTS
Explanation:
they regulate markets that are financial
Answer:
The right answer is the D. The OTS
Explanation:
I have put the FAA but it was wrong so they show me the right answer which was d. The OTS.
Hope this was helpful!
Pina Corporation factors $268,100 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Pina to record the sale of receivables, assuming the recourse obligation has a fair value of $4,380. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The Journal entries are shown below:-
Cash Dr, $253,014
Due from Factor Dr, $10,724
Loss on sale of Receivables Dr, $8,742
To Recourse Liability $4,380
To Accounts Receivable $268,100
(Being sale of receivables is recorded)
Working note:-
Accounts receivable $268,100
Finance Charge at 2% of AR $5,362
Recourse Liability(fair value) $4,380
Loss on sale of receivables $8,742
Retention amount at 4% of AR $10,724
Cash Received from Factor $253,014
Feeling regret or concern after making a large purchase
Answer:
You are feeling buyer's remorse. This is normal and it is ok to feel this way. Money comes and goes you will have the money back soon.
Complete the below table to calculate the price of a 1.7 million bond issue under each of the following independent assumptions:
Use appropriate factors from tables.
1. Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%
2. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%
3. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
5. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%
Chart: n= i= Cash flow Amount Present Value Interest: Principal: Price of Bonds:
Full question attached
Answer and Explanation:
Answer and explanation attached
On September 3, 2003, the finance ministers of G7 industrialized countries endorsed "flexibility" in exchange rates, a code word widely regarded as an encouragement for China and Japan to stop managing their currencies. Both countries have been actively intervening in the foreign exchange market to weaken their currencies against the dollar and thereby improve their exports. China and Japan had been seen buying billions of dollars in U.S. Treasury bonds. The G7 statement prompted massive selling of the U.S. dollar and dollar assets. The dollar fell 2% against yen, the biggest one-day drop that year, and U.S. Treasury bonds saw a steep decline in value as well.
Required:
a. How did China and Japan manage to weaken their currencies against the dollar?
b. Why did the U.S. dollar and U S. Treasury bonds fall in response to the G7 statement?
c. What is the link between currency intervention and China and Japan buying U.S. Treasury bonds?
d. What risks do China and Japan face from their currency intervention?
Answer:
a. How did China and Japan manage to weaken their currencies against the dollar?
Both countries managed to weaken their currencies by purchasing a lot of US government securities, therefore, increasing imports of financial assets which caused their trade surplus to balance or even become a deficit. Japan is not currently carrying out this policy anymore, but China is a different story.
China is a mixed economy where private firms are co-owned by the government, and they are highly regulated. Also, only private firms that are friendly with government officials prosper. E.g. back in March, one of China's richest businessman criticized the government and its handling of the current health crisis, and he was thrown into jail and sentenced to 18 years in prison.
This results in the Chinese government having a lot of power to guide how Chinese corporations work. The Chinese government artificially undervalued the yuan by purchasing foreign securities (not only US bonds, but also European bonds). Even though China has a trade surplus, its currency didn't appreciate like a normal currency would. This allows Chinese products to be cheaper and more competitive.
Even when the Chinese government said that they (as the government) would stop purchasing foreign securities, they ordered Chinese companies to do so. At the end the result was the same, China balances its currency through purchases of foreign securities either directly or indirectly (through companies co-owned by the government).
b. Why did the U.S. dollar and U S. Treasury bonds fall in response to the G7 statement?
Japan decided to stop purchasing US securities like crazy, and since the demand for US securities dropped dramatically, plus some US securities were sold by Japan (increased supply), the equilibrium price shifted. It is simple and basic law of supply and demand. Supply increases while the demand falls, the equilibrium price will decrease.
c. What is the link between currency intervention and China and Japan buying U.S. Treasury bonds?
Currencies appreciate or depreciate based mainly on the balance of payments between countries. If the US starts to buy a lot of goods from Brazil, and Brazilians do not buy US goods, then the price of the Brazilian real will appreciate against the US dollar. This will make Brazilian goods more expensive, making US consumers purchase less Brazilian goods which will eventually balance the value of the currencies back to normal.
The problem with China and Japan (as explained before) is that they have huge trade surpluses with the US. But in order to prevent their currencies from appreciating against the US dollar, the governments purchased US securities. That way their balance of payments balanced and their currencies were not affected.
d. What risks do China and Japan face from their currency intervention?
It makes imported goods artificially expensive. This favors domestic production but eventually hurts consumers. E.g. in China there are a lot of cheap domestic cars that are lets say, not the best cars you can find, and they would not be sold in developed countries like the US. But if you want a decent car, like an Accord, that costs around $30,000 in the US (medium trim), you will have to pay at least twice as much in China.
No country in the world can simply decide to only export goods and not import anything. It just doesn't work. trade goes back and forth. This is the same reason why President Trump's idea of restricting imports to the US didn't work, and never will. You can benefit a certain group of people or industries by restricting imports, but eventually the rest of the economy suffers.
Japan is an absurdly expensive country because it needs to import a lot of goods, but it artificially makes imports more expensive. The same thing happens to China. Chinese products are cheap, but China needs a lot imports also, e.g. food. China is not able to produce enough food to feed its people, and it imports most of the food that is consumed there. By selling expensive food, you are hurting the middle and lower classes. Of course this will not affect a millionaire, but 95% of Chinese are either poor or middle class.
Morgan Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement.
1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2. The cost of the asset to the lessor is $245,000. The fair value of the asset at January 1, 2020, is $245,000.
3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,335, none of which is guaranteed.
4. The agreement requires equal annual rental payments, beginning on January 1, 2020.
5. Collectibility of the lease payments by Morgan is probable.
Required:
Assuming the lessor desires a 8% rate of return on its investment, calculate the amount of the annual rental payment required.
The annual lease payment is $52,997.27.
What is the annual lease payment?The annual lease payment is the minimum amount of payment by the lessee over the lease term.
The annual lease payment can be computed by determining the annual payments, which can be computed using an online finance calculator as follows:
Data and Calculations:N (# of periods) = 6 years
I/Y (Interest per year) = 8%
PV (Present Value) = $245,000
FV (Future Value) = $0
Results:
PMT = $52,997.27
Sum of all periodic payments = $317,983.62
Total Interest = $72,983.62
Thus, the annual lease payment is $52,997.27.
Learn more about computing the annual lease payment at https://brainly.com/question/15827905
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014: Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015. b. Insurance expired during 2014, $800. c. Depreciation expense for 2014, $3,700. d. Wages earned by employees not yet paid on December 31, 2014, $640. e. Income tax expense, $5,540.
Answer:
Net income = $16,720
Total assets = Total Stockholders Equity and Liabilities = $68,300
Explanation:
Note: This question is not complete and the data in it are merged together. The complete question with the sorted data is therefore presented before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the income statement and the classified balance sheet.
A classified balance sheet can be described as a financial statement that show different classifications such intangible assets, fixed assets, current assets, shareholders equity, current liabilities, and long-term liabilities.
Bloom’s has the following estimates for the upcoming year:
Activity Cost Pool Estimated Overhead Cost Activity Rate
Machine-hours $63,450 $2.70 per machine-hour
Machine setups $45,900 $170 per setup
Product testing $119,000 $119 per test
Cost and activity information for two of Bloom’s products is as follows:
P34 W85
Direct materials $33,500 $29,750
Direct labor $18,500 $26,000
Machine-hours 1,470 1,170
Machine setups 22 77
Tests 47 47
Number of units
produced during the year 10,000 25,000
Required:
Compute the unit product cost for product P34.
Bloom’s has the following estimates for the upcoming year:
Activity Cost Pool Estimated Overhead Cost Activity Rate
Machine-hours $63,450 $2.70 per machine-hour
Machine setups $45,900 $170 per setup
Product testing $119,000 $119 per test
Cost and activity information for two of Bloom’s products is as follows:
P34 W85
Direct materials $33,500 $29,750
Direct labor $18,500 $26,000
Machine-hours 1,470 1,170
Machine setups 22 77
Tests 47 47
Number of units
produced during the year 10,000 25,000
Required:
Compute the unit product cost for product P34.Bloom’s has the following estimates for the upcoming year:
Activity Cost Pool Estimated Overhead Cost Activity Rate
Machine-hours $63,450 $2.70 per machine-hour
Machine setups $45,900 $170 per setup
Product testing $119,000 $119 per test
Cost and activity information for two of Bloom’s products is as follows:
P34 W85
Direct materials $33,500 $29,750
Direct labor $18,500 $26,000
Machine-hours 1,470 1,170
Machine setups 22 77
Tests 47 47
Number of units
produced during the year 10,000 25,000
Required:
Compute the unit product cost for product P34.Bloom’s has the following estimates for the upcoming year:
Activity Cost Pool Estimated Overhead Cost Activity Rate
Machine-hours $63,450 $2.70 per machine-hour
Machine setups $45,900 $170 per setup
Product testing $119,000 $119 per test
Cost and activity information for two of Bloom’s products is as follows:
P34 W85
Direct materials $33,500 $29,750
Direct labor $18,500 $26,000
Machine-hours 1,470 1,170
Machine setups 22 77
Tests 47 47
Number of units
produced during the year 10,000 25,000
Required:
Compute the unit product cost for product P34.
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Required information The Foundational 15 [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 56,000 units and sold 51,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 784,000 Fixed selling and administrative expense $ 672,000 The company sold 38,000 units in the East region and 13,000 units in the West region. It determined that $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 6-7 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Variable costing income statement:
Total unitary variable production cost= (24 + 16 + 2 + 3)= $45
Sales= 73*51,000= 3,723,000
Total variable cost= 51,000*45= (2,295,000)
Contribution margin= 1,428,000
Fixed manufacturing overhead= (784,000)
Fixed selling and administrative expense= (672,000)
Net operating income= (28,000)
Absorption costing income statement:
Unitary production cost= (24 + 16 + 2) + (784,000/56,000)
Unitary production cost= $56
Sales= 73*51,000= 3,723,000
COGS= 51,000*56= (2,856,000)
Gross profit= 867,000
Total selling and administrative= 672,000 + 3*51,000= (825,000)
Net operating income= 42,000
The difference between both methods is the fixed manufacturing overhead allocated in ending inventory.
The senior managers of a grocery store chain have a disagreement over the direction of the company. One faction wants to leverage its capabilities and core competencies to take advantage of the opportunities provided by a stronger online presence, including online ordering with both at-store pickup and home delivery. The other faction feels that the company's strengths lie in small, convenient neighborhood stores and the customer service that accompany an in-store shopping experience. The online expansion would be a departure from what the company already knows how to do and would require a significant investment. Those in favor of the changes feel that the potential returns make the investment worthwhile. What concept are those in favor of change struggling against
Answer: d. Core rigidity
Explanation:
Core rigidity refers to the tendency of companies that are successful in the market to become comfortable in their position because they feel their core mode of operations is fine. They will therefore abandon or significantly reduce improvement efforts which usually ends badly because competitors will keep improving.
Those in favor of the change are struggling against a Core Rigidity mindset in the people opposed to the move because those ones want to remain in their current strengths instead of trying to improve operations.