Answer and Explanation:
1.a. The Journal entries are shown below:-
Refund liability Dr, $328,000
To Account Receivables $328,000
(Being actual sales return of merchandise sold is recorded)
b. Inventory Dr, $229,600 ($328,000 × 70%)
To Inventory—estimated returns $229,600
(Being cost of merchandise returned for goods is recorded)
c. Sales returns Dr, $266,000 ($594,000 - $328,000)
To Accounts receivable $266,000
(Being actual sales return of merchandise is recorded)
d. Inventory Dr, $186,200 ($266,000 × 70%)
To Cost of Goods Sold $186,200
(Being cost of merchandise returned for goods is recorded)
e. Sales returns Dr, $ 307,000
To Refund liability $307,000
(Being year-end adjusting entry for estimated returns is recorded)
f. Inventory Dr, $214,900 ($307,000 × 70%)
To Cost of Good Sold $214,900
Estimated returns of 2021 sales = 5% × $12,100,000 $ 605,000
Less: Actual returns of 2021 sales ($266,000)
Remaining estimated returns of 2021 sales $ 339,000
2. The computation of amount of the year-end refund liability after the adjusting entry is shown below:-
Beginning balance in refund liability $360,000
Less: Actual returns of pre-2021 sales ($328,000)
Add: Adjustment needed $307,000
Ending balance $339,000
Famous Furniture Manufacturing Company reported the following information for 2019:
Beginning work-in-process inventory $130,000
Beginning raw materials inventory 47,500
Ending work-in-process inventory 112,500
Ending raw materials inventory 60,000
Direct material used 75,000
Direct labor 93,000
Applied manufacturing overhead 70,000
Actual manufacturing overhead cost 62,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
How much would Famous Furniture Manufacturing report as cost of goods manufactured at year-end?
Answer:
$255,500
Explanation:
Prepare a Cost of Goods Manufactured Schedule to determine the cost of goods manufactured.
Cost of Goods Manufactured Schedule
Direct material used $ 75,000
Direct labor $ 93,000
Applied manufacturing overhead $ 70,000
Add Beginning work-in-process inventory $130,000
Less Ending work-in-process inventory ($112,500)
Cost of goods manufactured $255,500
Helen expects to receive $2000 in six months. Her bank offers a loan at an annual rate of 5.60%. How much could se borrow now if she wants to pa off the entire loan (incuding interest) with the $2000 she will receive in six months?
Answer: 5000
Explanation: ITS MATH
Helen expects to receive $2000 in six months. Her bank offers a loan at an annual rate of 5.60%. She could se borrow $5000 now if she wants to pay off the entire loan (including interest) with the $2000 she will receive in six months
What is a Bank?A bank is an institution that deals in money and its substitutes and provides other money-related services. In its role as a financial intermediary, a bank accepts deposits and makes loans.
It derives a profit from the difference between the costs (including interest payments) of attracting and servicing deposits and the income it receives through interest charged to borrowers or earned through securities.
Many banks provide related services such as financial management and products such as mutual funds and credit cards. Some bank liabilities also serve as money—that is, as generally accepted means of payment and exchange.
Learn more about bank here:
https://brainly.com/question/29797792
#SPJ2
The ledger of Shamrock, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.
Debit Credit
Supplies 2,780
Prepaid Insurance 2,240
Equipment 25,500
Unearned Service Revenue 14,700
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $280 per month.
2. Supplies on hand total $890.
3. The equipment depreciates $170 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Required:
Prepare the adjusting entries for the month of March.
Answer:
Shamrock, Inc.
Adjusting Journal Entries:
1. Debit Insurance Expense $280
Credit Prepaid Insurance $280
To record insurance expense for the month.
2. Debit Supplies Expense $1,890
Credit Supplies $1,890
To record supplies expense for the month.
3. Debit Depreciation Expense - Equipment $170
Credit Accumulated Depreciation- Equipment $170
To record depreciation expense for the month.
4. Debit Unearned Service Revenue $5,880
Credit Service Revenue $5,880
To record earned service revenue for the month.
Explanation:
a) Data:
Selected Accounts:
Debit Credit
Supplies 2,780
Prepaid Insurance 2,240
Equipment 25,500
Unearned Service Revenue 14,700
b) The above adjusting entries at the end of March are made by Shamrock in order to accurately recognize its revenue and expenses for the month of March. These entries are in line with the accrual concept and matching principle of generally accepted accounting principles. They require that revenues or expenses earned or incurred in a period be recognized and matched in the affected period, whether cash was exchanged or not.
g Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account. whatever the government allows money to be. paper bills and coins. Barter is best defined as a situation where two individuals each want some or service that the other can provide. literally trading one good for another without using money. an informal market such as a flea market. A double coincidence of wants is a situation in which money is used to facilitate economic transactions. a situation where two individuals each want some or service that the other can provide. literally trading one good for another without using money.
Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account.
Barter is best defined as a situation where two individuals each want some or service that the other can provide.
A double coincidence of wants is a situation where two individuals each want some or service that the other can provide.
What is money?Money is anything that is accepted by the general public as a means of payment for products and for repayment of debt.
What are the functions of money?Medium of exchange : money can exchanged for goods and services. Unit of account : money can be used to determine the value of goods and servicesStore of value : money can retain its value over the long term.What is barter?Barter is when people exchange goods with goods. For barter to occur, there has to be a double coincidence of wants. This means that someone has to have what you want and that person wants what you have.
To learn more about money, please check: https://brainly.com/question/940436
Cammie received 100 NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share). She started working for MNL Corporation four years ago (5/1/Y1) when MNL’s stock price was $8 per share. Now (8/15/Y5) that MNL’s stock price is $40 per share, she intends to exercise all of her options. After acquiring the 1,000 MNL shares with her stock options, she held the shares for over one year and sold (on 10/1/Y6) them at $60 per share.
Required:
a. What are Cammie's taxes due on the grant date (5/1/ Y 1), exercise date (8/15/Y5) , and sale date (10/1/Y6), assuming her ordinary marginal rate is 30 percent and her long-term capital gains rate is 15 percent?
b. What are MNL Corporation's tax savings on grant date (5/1/Y6), exercise date (8/15/Y5), and sale date (10/1/Y6), assuming its marginal tax rate is 35 percent?
c. Complete Cammie's Form 8949 and Schedule D for the year of sale. Also assume that the sale transaction of the MNL Corporation stock was not reported to Cammie on a Form 1099-8.
Answer:
Kindly check explanation
Explanation:
Given the following :
A.)
Ordinary marginal rate = 30% = 0.3
Long term capital gain = 15% = 0.15
Number of shares (100 * 10) = 1000 shares
Amount of shares = (number of shares * price per share) = (1000 * $10) = $10,000
Tax liability on grant date = $0 ; as there is no recognized income
Market value of shares = (number of shares * market price of shares)
(1000 * $40) = $40,000
Ordinary income = $(40,000 - 10,000) = $30,000
Tax liability in year of exercise = (30,000 * 30%) = $9000
Revenue from sale = (1000*$60) = $60,000
Capital gain(Revenue - market value of shares)
Capital gain = (60,000-40000) = $20000
Tax liability in year of sale = $20000 * 15% = 3000
B.)
Marginal tax rate = 35%
MNL has no tax liability on grant date= $0
No tax Liability on sale date = $0
Tax liability in year of exercise = (ordinary income * marginal tax rate)
(30,000 * 0.35) = $10,500
How is savings account most useful?
A. For saving for a long time without withdrawing
B.For depositing and withdrawing money frequently
C.For using money for CDs and other investments
D. For using money in the near future but not right away
Answer:
I believe it is D. Sorry if it’s wrong.
Explanation:
The whole point of having a savings account is saving money so you can use it in the future. Hope this helps!
Answer:
D. for using money in the near future but not right away
Explanation:
2022 EDG
To compose simple messages, you may need only to make a scratch list of your ideas before writing. Many messages, however, may require you to make an outline to organize your thoughts.
Use the scratch list to answer the question that follows.
The Boston Hotel
High-end linens
600-thread-count sheets
Coffee maker with selected teas
Imported beer
Fresh-squeezed juices
Affordability
Food and drink
Double-thick bath towels
Silk pillowcases
Raw silk curtains with gold embellishments
$100/night four-star rooms
Free snacks, shampoo, and conditioner
Free wireless Internet
You have been asked to organize the items on the scratch list into an outline for your supervisor. You have completed the outline when your supervisor sends you a quick e-mail with the additional scratch list that follows. Your supervisor wants you to include the items on the new scratch list that fit into your existing outline.
Evening wine tasting
Sparkling water
Safety
Communication
Four-star hotel restaurant
Cleanliness
Proximity to downtown shopping
Indoor pool
Which subpoints should you include in your outline?
a. [removed]Sparkling water, evening wine tasting, four-star hotel restaurant
b. [removed]Safety, indoor pool, proximity to downtown shopping
c. [removed]Safety, communication, cleanliness
Answer:
The sub-points that I should include in the outline are:
c. Safety, communication, cleanliness
Explanation:
Free wireless internet will aid communication. Cleanliness is important for high-end linens, double-thick bath towels, silk pillowcases, Raw silk curtains with gold embellishments, etc. In the same way, safety consideration is important for any hotel with four-star rooms, serving imported beer, fresh-squeezed juices, food and drink, etc. both in their preparation and ultimately in serving them to guests.
Suppose the marginal propensity to save (MPS) is equal to 0.25. According to the text, a $100 increase in investment spending will lead to a:
Based on the marginal propensity to save and the increase in investment spending, there will be an increase of $400 in equilibrium income.
What will be the change in Equilibrium income?This can be found as:
= Change in investment spending x Multiplier
Multiplier is:
= 1 / Marginal propensity to save
= 1 / 0.25
= 4
Change in equi. income is:
= 100 x 4
= $400
Find out more on the marginal propensity to save at https://brainly.com/question/26769701.
CASE 5–32 Break-Even Analysis for Individual Products in a Multiproduct Company LO5–5, LO5–9
Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go about answering the questions
that came up at the meeting with the president yesterday.”
“What’s the problem?”
“The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”
“I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.”
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below:
Velcro Metal Nylon
Annual sales volume 100,000 200,000 400,000
Unit selling price $1.65 $1.50 $0.85
Variable expense per unit $1.25 $0.70 $0.25
Total fixed expenses are $400,000 per year.
All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers.
The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.
Required:
1. What is the company’s over-all break-even point in dollar sales?
2. Of the total fixed expenses of $400,000, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $240,000 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.
a. What is the break-even point in unit sales for each product?
b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.
Answer:
Answer:
Piedmont Fasteners Corporation
1. Company's overall break-even point in dollar sales = Total variable costs + Fixed Costs
= $365,000 + $400,000
= $765,000
2. a) Break-even point in unit sales for each product:
= Fixed cost for each product/Contribution per unit
Velcro Metal Nylon
Fixed expenses $20,000 $80,000 $60,000
Contribution per unit $0.40 $0.80 $0.60
Break-even point $20,000/$0.40 $80,000/$0.80 $60,000/$0.60
= 50,000 units 100,000 units 100,000 units
2b) If the company sells exactly the break-even quantity of each product, the overall profit of the company will be a loss of $240,000. This is due to the common fixed expenses.
Explanation:
a) Data and Calculations:
Velcro Metal Nylon Total
Annual sales volume 100,000 200,000 400,000 700,000
Unit selling price $1.65 $1.50 $0.85
Sales Revenue $165,000 $300,000 $340,000 $805,000
Variable expense per unit $1.25 $0.70 $0.25
Variable costs $125,000 $140,000 $100,000 $365,000
Contribution per unit $0.40 $0.80 $0.60
Contribution margin $40,000 $160,000 $240,000 $440,000
Total fixed expenses $400,000
Net Income $40,000
Contribution per unit (company-wide) $440,000/700,000 = $0.63
Velcro Metal Nylon Total
Annual sales volume 100,000 200,000 400,000 700,000
Unit selling price $1.65 $1.50 $0.85
Sales Revenue $165,000 $300,000 $340,000 $805,000
Variable expense per unit $1.25 $0.70 $0.25
Variable costs $125,000 $140,000 $100,000 $365,000
Contribution per unit $0.40 $0.80 $0.60
Contribution margin $40,000 $160,000 $240,000 $440,000
Total fixed expenses 20,000 80,000 60,000 160,000
Income $20,000 $80,000 $180,000 $280,000
Common Fixed expenses 240,000
Net Income $40,000
Answer 1 :
The break-even point in unit sales for each product
Formula :
Break-Even Point = Total variable costs + Fixed Costs
Break-Even Point= $365,000 + $400,000
Break-Even Point= $765,000
Answer 2:
a) Break-even point in unit sales for each product :
Break Even Point = Fixed cost for each product/Contribution per unit
Velcro Metal Nylon
Fixed expenses $20,000 $80,000 $60,000
Contribution per unit $0.40 $0.80 $0.60
Break-even point $20,000/$0.40 $80,000/$0.80 $60,000/$0.60
Total 50,000 units 100,000 units 100,000 units
a) Working Notes :
Velcro Metal Nylon Total
Annual sales volume 100,000 200,000 400,000 700,000 Unit selling price $1.65 $1.50 $0.85 Sales Revenue $165,000 $300,000 $340,000 $805,000 Variable expense per unit $1.25 $0.70 $0.25 Variable costs $125,000 $140,000 $100,000 $365,000 Contribution per unit $0.40 $0.80 $0.60 Contribution margin $40,000 $160,000 $240,000 $440,000 Total fixed expenses $400,000
Net Income $40,000
Contribution per unit = $440,000/700,000 = $0.63
Answer 2 :
Part B)
If the company sells exactly the break-even quantity of each product, the overall profit of the company will be a loss of $240,000. This is due to the common fixed expenses.Know more :
https://brainly.com/question/20322425?referrer=searchResults
As a group, U.S. consumers have no income response for their consumption of ice cream so that the income elasticity of demand for ice cream equals zero. Does this mean that the change in ice cream consumption that results from a price increase is entirely composed of the substitution effect? No, the income and substitution effects in this case move in opposite directions and completely offset one another, so it only appears that the income effect is zero No, any price change moves the point of consumption to a new indifference curve, so there must be a non-zero income effect We need more information about the goods to answer this question Yes, the income effect associated with a price change is zero
Answer:
Yes, the income effect associated with a price change is zero
Explanation:
From the question, we are informed that the U.S. consumers have no income response for their consumption of ice cream so that the income elasticity of demand for ice cream equals zero.
In this case the change in ice cream consumption that results from a price increase is entirely composed of the substitution effect, which is one effect of change in price as a result of consumer going for something cheaper than the first one.
It should be noted that the income effect associated with a price change is zero. Income Effect in microeconomics is when there is an alteration in the demand of a particular goods/service as a result of the change in Income.
2. Cost-plus, target pricing, working backward A-Plus Shed, Inc., manufactures and sells a do-it-yourself storage shed kit. In 2012, it reported the following: Units produced and sold 4,000 Investment $ 2,300,000 Markup percentage on full cost 5 % Rate of return on investment 20 % Variable cost per unit $ 500 1. What was A−Plus Shed's operating income in 2012? What was the full cost per unit? What was the selling price? What was the percentage markup on variable cost? 2. A−Plus Shed is considering increasing the annual spending on advertising by $110,000. The managers believe that the investment will translate into a 15% increase in unit sales. Should the company make the investment? Show your calculations. 3. Refer back to the original data. In 2013, A−Plus Shed believes that it will only be able to sell 3,500 units at the price calculated in requirement 1. Management has identified $100,000 in fixed cost that can be eliminated. If A−Plus Shed wants to maintain an 5% markup on full cost, what is the target variable cost per unit?
Answer:
1. A-Plus shed's operating income in 2012 = $460,000
1i Full cost per unit = $2,300
1ii Selling price = $2,415
1iii Mark up percentage on variable cost = $23%
2. Yes, the company should make the investment. This is because by expending $110,000 on advertising, it will increase the operating income by $1,039,000 .
3. Target variable cost per unit = $2,028.57
Explanation:
Please find attached detailed explanations of the above answers.
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $39,590 and $3,020, respectively. During the year, the company wrote off $2,390 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of Days Receivables Percentage Likely to Be Past Due Amount Uncollectible Current $ 56,000 1% 0 to 30 23,500 5% 31 to 60 5,360 10% 61 to 90 2,520 25% Over 90 2,200 50% Total $89,580 What will Domino record as Uncollectible Accounts Expense for Year 2
Answer:
Number of days past due Receivables %Uncollectible Uncollectible
Current 56,000 1% 560
0 to 30 23,500 5% 1,175
31 to 60 5,360 10% 536
61 to 90 2,520 25% 630
Over 90 2,200 50% 1,100
Total 89,580 4,001
Uncollectible Amount = 4,001 - Allowance after write off
Allowance after write off = Opening Allowance - Amount written off during year
= 3,020 - 2,390
= $630
Uncollectible Amount = 4,001 - 630
= $3,371Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 10 percent, has a YTM of 8 percent, and has 14 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 8 percent, has a YTM of 10 percent, and also has 14 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In four years? In nine years? In 13 years? In 14 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
BOND Xcurrent price of bond X:
PV of face value = $1,000 / (1 + 4%)²⁸ = $333.48
PV of coupon payments = $50 x 16.66306 (PV annuity factor, 4%, 26 periods) = $833.15
market price = $1,166.63
price of bond X in 1 year:
PV of face value = $1,000 / (1 + 4%)²⁶ = $360.69
PV of coupon payments = $50 x 15.98277 (PV annuity factor, 4%, 28 periods) = $799.14
market price = $1,159.83
price of bond X in 4 years:
PV of face value = $1,000 / (1 + 4%)²⁰ = $456.39
PV of coupon payments = $50 x 13.59033 (PV annuity factor, 4%, 20 periods) = $679.52
market price = $1,135.91
price of bond X in 9 years:
PV of face value = $1,000 / (1 + 4%)¹⁰ = $675.56
PV of coupon payments = $50 x 8.11090 (PV annuity factor, 4%, 10 periods) = $405.55
market price = $1,081.11
price of bond X in 13 years:
PV of face value = $1,000 / (1 + 4%)² = $924.56
PV of coupon payments = $50 x 1.88609 (PV annuity factor, 4%, 2 periods) = $94.30
market price = $1,018.86
price of bond X in 14 years:
$1,000 + $50 =$1,050
BOND Ycurrent price of bond Y:
PV of face value = $1,000 / (1 + 5%)²⁸ = $255.09
PV of coupon payments = $40 x 14.89813 (PV annuity factor, 5%, 26 periods) = $595.93
market price = $851.02
price of bond Y in 1 year:
PV of face value = $1,000 / (1 + 5%)²⁶ = $281.24
PV of coupon payments = $40 x 14.37519 (PV annuity factor, 5%, 28 periods) = $575.01
market price = $856.25
price of bond Y in 4 years:
PV of face value = $1,000 / (1 + 5%)²⁰ = $376.89
PV of coupon payments = $40 x 12.46221 (PV annuity factor, 5%, 20 periods) = $498.49
market price = $875.38
price of bond Y in 9 years:
PV of face value = $1,000 / (1 + 5%)¹⁰ = $613.91
PV of coupon payments = $40 x 7.72173 (PV annuity factor, 5%, 10 periods) = $308.87
market price = $922.78
price of bond Y in 13 years:
PV of face value = $1,000 / (1 + 5%)² = $907.03
PV of coupon payments = $40 x 1.85941 (PV annuity factor, 5%, 2 periods) = $74.38
market price = $981.41
price of bond Y in 14 years:
$1,000 + $40 =$1,040
what message is this price tag telling shoppers? (other than it is on sale)
The accounting records of Concord Corporation show the following data. Beginning inventory 2,820 units at $7 Purchases 8,120 units at $9 Sales 9,838 units at $12 Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) Average unit cost $enter Average unit cost in dollars rounded to 3 decimal places per unit eTextbook and Media List of Accounts Determine cost of goods sold during the period under a periodic inventory system using the FIFO method, the LIFO method, and the average-cost method. (Round answers to 0 decimal places, e.g. 125.) FIFO LIFO Average-cost Cost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places
Answer:
1. $82,902
2. $85,106
3. $8.48 per unit
4. $83,426
Explanation:
Calculation to Determine cost of goods sold using the FIFO method, the LIFO method, and the average-cost method
1. With FIFO Method the Purchases that was made earlier will be sold first.
Cost of goods sold = (2,820 x $7) + (7,018x $9)
(2,820-9,838=7,018)
Cost of goods sold= $19,740+ $63,162
Cost of goods sold= $82,902
2. With LIFO Method Purchases that are made last will be sold first.
Cost of goods sold = (8,120 x $9) + (1,718 x $7)
(8,120-9,838=1,718)
Cost of goods sold= $73,080 + $12,026
Cost of goods sold = $85,106
3. Using Average cost method
Average cost per unit = [(2,820 x $7) + (8,120 x $9)]/(2,820 + 8,120)
Average cost per unit=$19,740+$73,080/10,940
Average cost per unit= $92,820/10,940
Average cost per unit=$8.48 per unit
4. Cost of goods sold = 9,838 x $8.48
Cost of goods sold= $83,426
Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:________
a. function b. size c. geography d. customer e. product
The form of departmentization praticed by Kohber is departmentization by function.
What is departmentization?
Departmentization is when a company is divided into various departments based on certain criteria. When a company is departmentized based on function, it means that the company's department are created based on the functions it serves.
For example, there would be the marketing department, packaging department and production department.
To learn more about departmentization, please check: https://brainly.com/question/26964067
Problem 5-15 Comprehensive Problem-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5] Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Units Materials Conversion Work in process, beginning 20,000 100% 75% Started into production 180,000 Completed and transferred out 160,000 Work in process, ending 40,000 100% 25% Materials Conversion Work in process, beginning $ 25,200 $ 24,800 Cost added during June $ 334,800 $ 238,700 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June.
Answer:
1. Blending Department
Equivalent units of production (EUP)
Units %material EUP %Conversion EUP
Units Completed and 160000 100% 160000 100% 160000
transferred out
Units of Ending work 40000 100% 40000 25% 10000
in process
Equivalent units of production 200,000 170,000
2. Cost per Equivalent unit
Material Conversion
Cost of Beginning Work in Process $25,200 $24,800
Cost added during June $3,34,800 $238,700
Total Costs $360,000 $263,500
/Equivalent units of Production 200000 170000
Cost per Equivalent unit of Production $1.80 $1.55
3. Cost of ending WIP
EUP Cost per EUP Total Cost
Material 40000 $1.80 $72,000
Conversion 10000 $1.55 $15,500
Total Ending work in process $87,500
4. Cost of Units Transferred Out
EUP Cost per EUP Total Cost
Material 160000 $1.80 $288,000
Conversion 160000 $1.55 $248,000
Total transferred out $536,000
5. Blending Department
Cost Reconciliation Report
Particulars Amount
Costs to be accounted for
Cost of beginning WIP inventory $50,000
($25200+$24800)
Cost added to production $573,500
($334800+$238700)
Total Cost to be accounted for $623,500
Costs accounted for as follows:
Cost of unit transferred out $536,000
Cost of Ending WIP $87,500
Total cost accounted for $623,500
On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances:
Accounts Debit Credit
Cash $23,900
Accounts Receivable 5,300
Supplies 3,200
Land 51,000
Accounts Payable $3,300
Common Stock 66,000
Retained Earnings 14,100
Totals $83,400 $83,400
During January 2021, the following transactions occur:
January 2 Purchase rental space for one year in advance, $6,300 ($525/month).
January 9 Purchase additional supplies on account, $3,600.
January 13 Provide services to customers on account, $25,600.
January 17 Receive cash in advance from customers for services to be provided in the future, $3,800.
January 20 Pay cash for salaries, $11,600.
January 22 Receive cash on accounts receivable, $24,200.
January 29 Pay cash on accounts payable, $4,100.
Required:
a. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
b. Record the adjusting entries.
c. Rent for the month of January has expired.
d. Supplies remaining at the end of January total $3,500.
Answer:
January 2 Purchase rental space for one year in advance, $6,300 ($525/month).
Dr Prepaid expense 6,300
Cr Cash 6,300
January 9 Purchase additional supplies on account, $3,600.
Dr Supplies 3,600
Cr Accounts payable 3,600
January 13 Provide services to customers on account, $25,600.
Dr Accounts receivable 25,600
Cr Service revenue 25,600
January 17 Receive cash in advance from customers for services to be provided in the future, $3,800.
Dr Cash 3,800
Cr Unearned revenue 3,800
January 20 Pay cash for salaries, $11,600.
Dr Wages expense 11,600
Cr Cash 11,600
January 22 Receive cash on accounts receivable, $24,200.
Dr Cash 24,200
Cr Accounts receivable 24,200
January 29 Pay cash on accounts payable, $4,100.
Dr Accounts payable 4,100
Cr Cash 4,100
adjusting entries:
Rent for the month of January has expired.
Dr Rent expense 525
Cr Prepaid rent 525
Supplies remaining at the end of January total $3,500.
Dr Supplies expense 3,300
Cr Supplies 3,300
Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $1,900 and direct labor of $900. Overhead is applied at the rate of 150 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $400 and direct labor costing $100. Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Tramels. Frieling had warned them that the chosen piece could require much more care and potentially additional work. As a result, Frieling considers this spoilage to be caused by the Tramels' job.
Required:
a. Calculate the cost of the Tramel job.
b. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
c. What if the additional rework required $200 of direct labor? What would be the effect on the cost of the Tramel job?
Answer:
Explanation:
a. direct material = 1900
direct labour = $900
overhead = 150% of direct labour cost
= 1.5 x $900
cost of tramel job
= direct material + direct labour + 1.5x900
= 1900 + 900 + 1350
= $4150
B. Check attachment for answer b
C. An additional 200 dollars would have no effect on the cost of the job.
What do major area of study mean
Answer:
the main area of study is the majoryou focus on to get your degree. It will be your core classes and/or the requirements needed to get your degree.
The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:a. Purchased $168,500 of materialsb. Used $149,250 of direct materials in production.c. Incurred $360,000 of direct labor wages.d. Incurred $120,000 of factory overhead.e. Transferred $600,000 of work in process to finished goods.f. Sold goods for $875,000.g. Sold goods with a cost of $525,000.h. Incurred $125,000 of selling expense.i. Incurred $80,000 of administrative expense.Required:Using the information given, complete the following:A. Prepare the January income statement for Digital Vibe Manufacturing Company. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.B. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.Labels and Amount description:LabelsFor the Month Ended January 31For the Year Ended January 31January 31Amount DescriptionsAdministrative expensesCost of goods soldGross profitNet incomeRevenuesSelling expenses
Answer:
Please see answer below
Explanation:
A. The income statement for Digital Vibe.
Before preparing the income statement, we have to first prepare the net profit or net loss.
= Sales - Cost of goods sold - selling expenses - Administrative expenses
= $875,000 - $525,000 - $125,000 - $80,000
= $145,000
B. Determine the materials inventory, work in process inventory, and finished goods inventory.
Direct materials = Purchase material - Used material
= $168,500 - $149,250
= $19,250.
Work in process inventory = Used material + direct labor wages + Factory overhead - transferred unit
= $149,250 + $360,000 + $120,000 - $600,000
= $29,250
Finished goods = Transferred units - Cost of goods sold
= $600,000 - $525,000
= $75,000
• Please find attached prepared income statement for question 1.
Cone Corporation is in the process of preparing its December 31, 2018, balance sheet. There are some questions as to the proper classification of the following items:
a. $70,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2022.
b. Prepaid rent of $44,000, covering the period January 1, 2019, through December 31, 2020.
c. Note payable of $240,000. The note is payable in annual installments of $40,000 each, with the first installment payable on March 1, 2019.
d. Accrued interest payable of $32,000 related to the note payable.
e. Investment in marketable securities of other corporations, $120,000.
f. Cone intends to sell one-half of the securities in 2019.
Required:
Prepare a partial classified balance sheet to show how each of the above items should be reported.
Answer:
Cone Corporation
Partial Balance Sheet
As of December 31, 2018
Assets:
Current Assets:
Prepaid Rent $22,000
Investment in marketable securities $60,000
Long-term Assets:
Prepaid Rent (long-term) $22,000
Restricted Funds for Bonds $70,000
Investment in marketable securities $60,000
Liabilities:
Current liabilities:
Notes Payable $40,000
Accrued Interest Payable $32,000
Long-term Liabilities:
Notes Payable $200,000
Explanation:
Cone's assets and liabilities are re-classified according to whether they are short-term or long-term in order to present more accurately the elements of the financial statements.
George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2020, George began working in London (for a total of 214 days in 2020). He worked there until January 31, 2021, when he transferred to Paris. He worked in Paris the remainder of 2021. His salary for the first five months of 2020 was $100,000, and it was earned in the United States. His salary for the remainder of 2020 was $175,000, and it was earned in London. George's 2021 salary from Hawk was $300,000, with part being earned in London and part being earned in Paris. Assume the 2021 indexed amount is the same as the 2020 indexed amount. Assume 366 days in 2020 (a leap year) and 365 days in 2021.
Required:
Determine George's gross income in 2020 and 2021
Answer:
2020 = $212,086
2021 = $192,400
Explanation:
To determine George's gross income in 2020 and 2021 we need to calculate the amount that george can exclude from the gross income for both years.
George's gross income in 2020
George can exclude amount from his gross income = $107,600 x 214/366 (Lower of foriegn earned income $275,000 or foriegn earned income exclusion ceiling of $107,600 for 2020)
George can exclude amount from his gross income = $62,914
Therefore
George's gross income in 2020 = $275,000 - $62,914 ($100,000 + $175,000)
George's gross income in 2020 = $212,086
George's gross income in 2021
George can exclude the amount from his gross income = $107,600 x 365/365 (Lower of foreign earned income of $300,000 or foreign earned income exclusion ceiling of $107,600 for 2021)
George can exclude the amount from his gross income = $107,600
Therefore
george's income in 2021 = $300,000 - $107,600
george's income in 2021 = $192,400
List TWO consequences for a company if they receive a qualified audit opinion
Roger Hillcrest owns 100 shares of $10 par, 5% noncumulative preferred stock. During the current year, there are no dividends
declared or paid. If there is a large cash dividend paid in the following year, Roger would be entitled to up to for the previous year before common shareholders are paid.
If there is a large cash dividend paid in the following year, Roger Hillcrest, who owns 100 shares of $10 par, 5% noncumulative preferred stock, would be entitled to $0 up to for the previous year before common shareholders are paid.
What is a noncumulative preferred stock?A noncumulative preferred stock is a class of preferred stock that does not accumulate undeclared dividends for previous periods.
The implication is that the preferred stockholder is not entitled to any previous dividend when it was not declared, despite that it is a fixed dividend investment.
Thus, for the previous years when dividends were not declared or paid, Roger Hillcrest is not entitled to any cumulative dividends, but can only receive $50 (100 x $10 x 5%) for the current year.
Learn more about noncumulative preferred stock at https://brainly.com/question/15858679
Suppose that you borrow $18,000 for a new car. You can select one of the following loans, each requiring regular monthly payments: Installment Loan A: three-year loan at 5.3% Installment Loan B: five-year loan at 6.3%.
Required:
Find the monthly payments and the total interest for both Loan A and Loan B. Compare the monthly payments and the total interest for the two loans.
The monthly payment for loan A is greater than the monthly payments for loan B by $191.40, while the total interest for loan B is greater than the total interest for loan A by $1,522.20.
Comparison of Monthly Payments and Total InterestThese can be done using the formula for calculating the present value of an ordinary annuity as follows:
P = PV / (((1 - (1 / (1 + r))^n) / r)) …………………………………. (1)
Where;
1) For Installment Loan A, the monthly payments can be calculated as follows:
P = Monthly payment of Installment Loan A = ?
PV = Present value or the amount borrowed for a new car = $18,000
r = Monthly interest rate = 5.3% / 12 = 0.053 / 12 = 0.00441666666666667
n = Number of months = Number of years * 12 = 3 * 12 = 36
Substitute the values into equation (1) to find P, we have:
P = $18,000 / ((1 - (1 / (1 + 0.00441666666666667))^36) / 0.00441666666666667)
P = $18,000 / 33.2162172178177
P = $541.90
Therefore, the monthly payment of Installment Loan A is $541.90.
2) For installment Loan B, the monthly payments can be calculated as follows:
P = Monthly payment of Installment Loan B = ?
PV = Present value or the amount borrowed for a new car = $18,000
r = Monthly interest rate = 6.3% / 12 = 0.053 / 12 = 0.00525
n = Number of months = Number of years * 12 = 5 * 12 = 50
Substitute the values into equation (1) to find P, we have:
P = $18,000 / ((1 - (1 / (1 + 0.00525))^60) / 0.00525)
P = $18,000 / 51.3541976210894
P = $350.51
Therefore, the monthly payment of Installment Loan B is $350.51.
3) Total interest for Loan A can be calculated as follows:
Total interest for Loan A = (P of A * n of A) - PV of A
Total interest for Loan A = ($541.90 * 36) - $18,000
Total interest for Loan A = $19,508.40 - $18,000
Total interest for Loan A = $1,508.40
4) Total interest for Loan B can be calculated as follows:
Total interest for Loan B = (P of B * n of B) - PV of B
Total interest for Loan B = ($350.51 * 60) - $18,000
Total interest for Loan B = $21,030.60 - $18,000
Total interest for Loan B = $3,030.60
5) The comparison of the monthly payments for the two loans can be done as follows:
Difference between monthly payments for the two loans = P of A – P of B = $541.90 - $350.51 = $191.40
Therefore, the difference between monthly payments for the two loans calculated above implies that the monthly payment for loan A is greater than the monthly payments for loan B by $191.40.
6) The comparison of the total interest for the two loans can be done as follows:
Difference between total interest for the two loans = Total interest for Loan B - Total interest for Loan A = $3,030.60 - $1,508.40 = $1,522.20
Therefore, the difference between total interest for the two loans calculated above implies that total interest for loan B is greater than total interest for loan A by $1,522.20.
Learn more about the present value of an ordinary annuity here: https://brainly.com/question/11691655.
how to write a business report
Answer:
A business report typically includes four major parts: introduction, discussion, conclusions, and recommendations. Sometimes, it may also include an executive summary, as well as a covering memo or letter.
Explanation:
Answer:
Explanation:when you write it make sure you have good grammar make sure you has enough periods and don’t go off topic.
Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,000 for direct labor, and $6,000 for overhead on its job cost sheet. Job W, which is still in process at year-end, shows charges of $2,500 for direct materials and $4,000 for direct labor. Required: 1a. Should any overhead cost be applied to Job W at year-end? Yes No 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W’s job cost sheet be reported within Sigma Corporation’s financial statements at the end of the year? Raw Materials Work-in-Process Finished Goods
Answer:
1.a Yes
1. b $3,000
2. Work-In-Process
Explanation:
1. a. Overhead rate in percentage = Total overhead ÷ Direct labor
= $6,000 ÷ $8,000
= 75%
Yes, Overhead cost will be applied on Job W at the year end
b. Overhead Cost = Direct Labor Cost × Overhead rate in percentage
= $4,000 × 75%
= $3,000
2. In the Financial statement cost included in Job W's will be recognized as Work-In-Process
Juan would like to give his
newly born grandson a gift of
$10,000 on his 18th birthday.
Juan can earn 7% annual
interest on a certificate of
deposit How much must he
deposit now in order to achieve
his goal?
Answer:
7%+18=10,000
Explanation:
I think that's how it goes u just need to solve it
If you wanted to purchase ownership interests in diversified portfolios of investments which type of financial product provider should you contact
Answer:
mutual fund
Explanation:
Mutual funds are investment plans that involve investors buy shares in a basket of financial securities. A mutual fund manager pool resources from investors and skillfully invests them in a portfolio comprising stock, bonds, and other short term financial securities. Each unit of a mutual fund is made up of smaller units of equities and financial securities of different companies. The mutual fund manager professionally selects the securities that make up the portfolio.