Answer: 62.5%
Explanation:
Equivalent units = Units completed and transferred out + percentage completed of ending inventory
14,800 = (1,100 + 14,000 - 800) + Percentage
14,800 = 14,300 + Percentage amount completed
Percentage amount completed = 14,800 - 14,300
Percentage amount completed = 500 units
Percentage = Ending equivalent units / ending inventory
= (500/800) * 100
= 62.5%
Once you’ve saved 25 years for retirement, how much can you draw from the retirement account over the next 30 years? In cell B14, enter a formula to calculate how much you can pay yourself from the retirement account every month.
Answer:
you have to use the payment formula in excel:
=PMT (rate, nper, pv, [fv], [type])
where:
rate = the interest rate earned by your retirement account . If the distributions re annual, then use the annual rate, if the distributions are monthly, then you must adjust the effective monthly rate. nper = number of distributions. Assuming that you will only withdraw once a year, then nper = 30. If you are going to collect monthly distributions, then nper = 360. pv = the present value of your retirement account. fv (optional) = by default it = 0, so it is correct for this problem. type (optional) = by default the payments are considered an ordinary annuity, which should work in this case.for e.g., assuming that you have $1,000,000 in your retirement account, you can earn 6% interest rate and you will receive 30 distributions.
=PMT (6%,30,1000000, [fv], [type]) = -$72,648.91
Excel uses a minus sign because the principal will decrease as distributions are made.
To the extent that employers conduct a social media background check on job candidates, best practices are all of the following except_________
Answer:
Limit access to private information by friending someone
Explanation:
When conducting recruitment of an individual employers sometimes do background checks on the person's social media information.
There however needs to be consideration of the person's privacy in doing this.
There should be use of only publicly available information, background check can be done by a third party that is not making hiring decision, and do not request username and password for social media platforms.
It is not best practice to befriend a person on social media in order to obtain their private information.
Answer:
Social Media Mistakes
Taking pictures or talking about drug use
Drinking alcohol
Posting too often
Lying about an absence
Talking bad about previous job or coworker
Ranting about politics
Lying about eligibilities
Grammatical and spelling error
Explanation:
The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process.
Manufacturing Costs Production Data
Beginning work in Beginning work in
process process 15,500 units, 1/10
complete
Materials $18,100 Units transferred out 54,800
Conversion costs 14,460 $32,560 Units started 51,200
Materials 218,685 Ending work in process 11,900 units, 1/5
complete
Labor 67,100
Overhead 58,531
Prepare a production cost report for the Welding Department for the month of February.
Answer:
Welding Department
Production cost report for the month of February
Inputs :
Beginning Work In Process :
Materials $18,100
Conversion costs $14,460
Added During the year :
Materials $218,685
Labor $67,100
Overhead $58,531
Total $376,876
Outputs :
Completed and Transferred Out $328,000
Units still in Process $48,076
Total $376,876
Explanation:
Calculation of Equivalent Units of Production with Respect to Materials and Conversion Costs.
1. Materials
Ending Work In Process (11,900 × 100%) 11,900
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 66,700
2. Conversion Costs
Ending Work In Process (11,900 × 1/5) 2,380
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 57,180
Calculation of Cost per Equivalent Unit of Production with Respect to Materials and Conversion Costs.
Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units
1. Materials
Cost per Equivalent Unit = ($18,100 + $218,685) ÷ 66,700
= $3.55
2. Conversion Cost
Cost per Equivalent Unit = ($14,460 + $67,100 + $58,531) ÷ 57,180
= $2.45
3. Total Cost
Total Cost = Materials + Conversion Cost
= $3.55 + $2.45
= $6.00
Calculation of Total Cost of Units Completed and Transferred Out and Total Cost of Units still in Process.
Completed and Transferred Out = Units Completed and Transferred Out × Total Cost
= 54,800 × $6.00
= $328,000
Units still in Process = Material Cost + Conversion Cost
= $3.55 × 11,900 + $2.45 × 2,380
= $48,076
a. Calculate book value per share of common stock. b. Assume that the company also had $1,000,000 worth of convertible bonds. The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share. The stock is currently trading at $30 per share.Recalculate your answer to part a) taking into account dilutive effects of the above.
Answer:
The correct answer is "$8.65".
Explanation:
The given question is incomplete. Please find attachment of the complete question.
The given values are:
Total stockholders equity
= 4980000
Preferred stock
= 1000000
Number of common stock issued
= 460000
So,
The book value per share of common stock will be:
= [tex]\frac{ (Total \ Stockholders \ Equity - Preferred \ Stock)}{No. \ of \ common \ stock \ issued}[/tex]
On putting the values, we get
= [tex]\frac{(4980000 - 1000000)}{460000}[/tex]
= [tex]\frac{3980000}{460000}[/tex]
= [tex]8.65[/tex]$
The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of A. increasing opportunity cost. B. decreasing marginal price. C. total benefits. D. increasing marginal cost. E. decreasing marginal benefit.
Answer:
E. decreasing marginal benefit.
Explanation:
The law of diminishing marginal utility can be explained as whenever there is rise in the supply of particular goods/services, then the marginal utility falls. Utility in Economics can be regarded as Satisfaction derived from particular goods/services.
Therefore, in the case of the question, point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle
decreasing marginal benefit. Because as the consumption of the lemonade increases, marginal utility gotten from
every added units taken will start reducing like that.
You join the accounting department of a major tech firm after graduation and are asked to assist in preparing end of year adjusting entries to prepare the firm’s financial statements for the end of the fiscal year. One major item you discover is a large part of the firm’s compensation expense is for stock grants and restricted stock units (RSUs). You are unsure how to account for these and so turn to the codification for guidance. What is the accounting for these forms of compensation and how are they presented on the financial statements?
Answer and Explanation:
Stock based compensation: stock based compensation which is non cash expense is charged as operating expenses to operating income as stipulated in Accounting Standards Codification (ASC) 718. After a year, the equity account is credited and cash is debited
Restricted stock units: contra equity is debited and common stock is credited. Part of the shares after vesting and recognition as income is charged and withheld for taxes
Which of the following best describes why German firms were nationalized after World War II?
A. Extract money.
B. Job preservation.
C. Ideology.
D. Happenstance.
Answer:
D. Happenstance.
Explanation:
The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.
It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.
German firms were nationalized after World War II because of Happenstance.
World War II:The fact that German companies were nationalized has frequently been dismissed as a coincidence, implying that it happened simply because of the circumstances in which they found themselves following World War II.
It thus incorporates multiple aspects, not just one, such as operational costs, government changes, and so on.
So, option "D" is the correct answer to the following question.
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During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $216,400 instead of the correct amount of $170,399. The effect on the balance sheet and income statement would be
Answer:
Asset and retained earnings overstated by $46,001
Net income overstated by $46,001
Explanation:
Given the data below;
Correct amount of inventory = $170,399
Inventory incorrectly recorded = $216,400
Inventory over stated by = $216,400 - $170,399
= $46,001
Because the ending inventory is overstated, the net income would also be overstated by $46,001
In the balance sheet, the retained earnings would be overstated by $46,001 as a result of the overstated net income.
We know that ending inventory forms part of the current asset in the balance sheet, hence current asset would be overstated by $46,001 due to the over stated ending inventory.
"A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 229 units per day. Annual demand is currently 70,000 units. It is forecasted that within two years, annual demand will triple. How many cells will the company require to satisfy predicted demand under these conditions? Assume 243 workdays per year."
Answer:
Number of cells needed = 4
Explanation:
The current output averages 200 units per cell, but the output will soon increase to 229 units per cell per day due to productivity improvements.
The current demand is 70000 units per year and it will triple in 2 years. Hence annual demand to be fulfilled is 70,000*3 = 210,000 units per year.
Assuming 243 workdays per year
Hence, Output per day * 243 = 210000
Output per day = 210000 / 243
Output per day = 864.20
As each cell will produce 229 units per day, number of cells needed will be 864.20 / 229
Hence, Number of cells needed = 4
The equipment replacement problem is a type of problem that can be modeled as a(n): a. Assignment problem. b. Minimal spanning tree problem. c. Transportation problem. d. Shortest path problem.
Answer:
d. Shortest path problem.
Explanation:
A shortest path problem can be defined as the process of finding the quickest solution or method to solve a specific problem.
Generally, the shortest path problem is modeled as a transshipment problem.
For example, the equipment replacement problem is a type of problem that can be modeled as a shortest path problem.
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 $2,500,000 Preferred dividends $100,000 Common dividends 400,000 500,000 Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense $120,000 Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.
Answer:
a. Ratio of fixed assets to long term liabilities = Fixed assets / Long term liabilities = $3,300,000/$2,000,000 = 1.6
b. Ratio of liabilities to stockholders equity = Total liabilities/Total stockholders equity = $3,000,000/$5,000,000 = 0.6
c. Ratio of net sales to assets = Net sales / Average Total assets(Excluding investments)
= $18,900,000 / [(7,000,000+8,000,000)/2] - 3,000,000
= $18,900,000 / 7,500,000 - 3,000,000
= $18,900,000 / $4,500,000
= 4.2
Note: Total assets at the end of the year = $3,000,000+$5,000,000 = $8,000,000
Space Fuel Inc. is considering establishing a new propellant depot to provide space vehicles a refueling point in their trek to Mars. If placed in a LaGrange point, the depot could save $50,000K annually. The depot can be constructed for $200,000K today and will be used for a period of 10 years. It has a salvage value of $10,000K at the end of its useful life. The new depot will require an annual maintenance cost of $9,000K. Capital financing is available at 4.78% per semiannual period compounded monthly. Find the present worth.
Answer:
NPV = $55,894.45
Explanation:
the initial outlay of the project is $200,000
the salvage value is $10,000
useful life 10 years
annual costs $9,000
annual savings $50,000
luckily there are no taxes in space
we must determine the effective interest rate in order to be able to discount the future cash flows
(1 + 0.0478/6)¹² - 1 = 9.99%
the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000
net cash flow for year 10 = $41,000 + $10,000 = $51,000
using a financial calculator, the NPV = $55,894.45
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.2 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $2.85, what is the current share price?
Answer:
P0 = $71.7850 rounded off to $71.79
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n +
[(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rate g2 is the constant growth rateD0 is the dividend paid today or most recentlyr is the required rate of returnP0 = 2.85 * (1+0.32) / (1+0.14) + 2.85 * (1+0.32)^2 / (1+0.14)^2 +
2.85 * (1+0.32)^3 / (1+0.14)^3 +
[(2.85 * (1+0.32)^3 * (1+0.062) / (0.14 - 0.062)) / (1+0.14)^3]
P0 = $71.7850 rounded off to $71.79
Smith lives in a world with two time periods: current period and future period. His income in each period is $10,000. A) Draw his intertemporal budget constraint when the interest rate is 33%. B) If Smith consumes $10,000 in each period, show his best affordable bundle and the indifference curve that passes through it. C) Graphically show how Smith's current consumption changes when the interest rate falls to 0%.
Answer and Explanation:
Answer and explanation attached
Peter Drucker championed several ideas that continue to be influential to this day, including decentralization, employees as corporation as a human community, and the importance of workers in the new information economy.
Explanation:
Drucker was a famous writer and professor who directly influenced modern management. His influence on management was so significant that he is also known as the father of management.
The main pillar of his studies is to recognize that the greatest resource of any organization is people.
Three of the pillars of Drucker's studies are: decentralization, which establishes greater flexibility in organizational management, where there is the inclusion of employees in decision making related to their role.
Drucker's second pillar concerns effective leaders, who according to him are those who motivate their team through inclusion, responsibility for their actions and focus on organizational opportunities, which translates into assertive leaders who make the organizational environment driven by action development, innovation, inclusion and productivity.
And finally, the importance of innovation, which comes from joint efforts of consistent work and which is essential for a company to remain competitive and well positioned in the market.
To save for retirement, Jamie decides to invest in an annuity that pays 5% annual interest, compounded annually. If Jamie contributes $2,000 annually for 20 years, how much interest would she earn during the 20 years?
Answer:
Interest= $26,131.91
Explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 20 years
Interest rate= 5%
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.05^20) - 1]} / 0.05
FV= $66,131.91
Now, we can determine the interest earned:
Interest= future value - total investment
Interest= 66,131.91 - 20*2,000
Interest= $26,131.91
If Congress ends an investment tax credit that used to subsidize domestic investment, how would this affect the market for loanable funds in an open economy context?
Answer: Demand will fall, Interest rates will fall
Explanation:
The investment tax credit would have encouraged more companies to seek loanable funds in order to embark on investment opportunities because they would be taxed less. This increase in demand in the market for loanable funds would have led to rates rising to keep up with demand.
If Congress were to end this credit, the incentive to invest and avoid tax would be gone. Companies would therefore demand less loanable funds and with this drop in demand there will be a drop in interest rates as well to entice people to borrow at the lower rates.
Simmons Mineral Operations, Inc. is a company that has no debt and that has a forecasted EBIT of $324,000 perpetually. Right now the cost of equity of Simmons Mineral Operations, Inc. is 12.4 percent and the corporate tax rate is 34 percent. The firm is in the process of selling $940,000 worth of perpetual bonds with an annual interest rate of 6.6 percent at par. What is the value of Simmons Mineral Operations, Inc. after it issues debt?
Answer:
the value of the amount is $2,062,116
Explanation:
The computation of the value of the amount after issuance of the debt is shown below:
= [[ EBIT × (1 - tax rate) ] ÷ cost of equity] + value of bonds × tax rate
= [$324,000 x 0.66 ] ÷ 0.124 ] + $940,000 x 34%
= $1,742,516 + $319,600
= $2,062,116
hence, the value of the amount is $2,062,116
We simply applied the above formula
For most consumers, maximizing utility through consumption generally means finding good deals in order to maximize the utility received for each dollar spent. However, some makers of luxury goods believe that their customers actually achieve utility by paying high prices. As a result, lowering prices may lead to reduced sales for the makers of luxury goods. How is this counterintuitive concept rationalized by analysis of consumer behavior and the utility maximization rule
Answer:
The explanation of that situation is below.
Explanation:
To begin with, the most important factor to have in mind in the situation explained above is the fact that we are talking about a "luxury good" and therefore that when it comes to this type of goods is better when the majority of the people do not possess or at least they must represent the fact that they are exclusive for only some part of the population. That is why that those goods use the strategy of increase always the price because that will means that they are not affordable for the majority of the society but only for a few and that will give to the owner of the good a sense of uniqueness and with that it also comes the sense of superiority. That is why that when it comes to this type of good the analysis change and it collides with the other theory of utility maximation.
How do you think Alden, from Situation 2, found out about Revinate? Given all the online companies that might help your business connect you with customers, how would you choose one?
The correct answer to this open question is the following.
Although you forgot to include the proper context of the question or further references, we can comment on the following.
Alden found out about Revinate by searching on the web trying to find the best software options that could help the company to identify the customer's reviews so Gregory E. Alden could make the best decisions for his company.
Gregory E. Alden is the manager of the company Woodside Hotels, located in Northern California. He was trying to monitor the comments of his high-class clients because Woodside Hotels is in the luxurious hotel business. So knowing that constantly monitoring client's comments on social media pages such as TripAdvisor or Yelp can be an arduous and difficult task, Gregory searched for the best software company to monitor client's comments on social media. That is how he found Revinate, a company that helps managers to track reviews so they can make the best business decisions once they have learned what their customers desire. And that is exactly what I would do to choose the kind of company to know about the preferences of my customers.
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
$400,000
Explanation:
Given the following :
Beginning Cash balance = $100,000
Net income during the year = $5,000,000
Dividend to common shareholders = $750,000
Purchase of machinery = $5,400,000
Depreciation expense = $450,000
Long term debt = $1,000,000
Rate = 5%
STATEMENT OF CASH FLOW:
Cashflow from operating activities :
Net income ___________5,000,000
Add: Depreciation exp. ___450,000
Net cash: ____________________5,450,000
Cashflow from. Investing Activities :
Purchase of machinery __(5,400,000)
Net cash: ____________________(5,400,000)
Cashflow from financing activities:
Payment of Dividend __(750,000)
Long term debt ______1,000,000
Net cash from financing __________250,000
Net increase in cash: ____________300,000
Beginning cash balance __________100,000
Year end Cash balance __________ 400,000
Q 20.26: You are considering upgrading from your current inkjet printer to a laser printer. Your old printer cost $350. The new printer costs $600. Print cartridges for the old printer cost $80 each, and print cartridges for the new printer cost $120 each. Cartridges for both printers last for approximately 500 sheets of printing. Your roommate has offered to purchase your old printer for $50. You expect to print 250 sheets per month. What is the differential cost of purchasing the new printer, considering only the purchase price
Answer:
The differential cost of purchasing the new printer is $250.
Explanation:
Differential cost can be described as the difference between the cost of a change in the level of output, or the cost of two alternative decision.
Therefore, differential cost concept is employed when there are two or more possible option to pursue and decision has to be made to choose one one option and drop the other options.
Since it is indicated in the question that only the purchase price should be considered, the differential cost of purchasing the new printer can be calculated as follows:
Differential cost of purchasing the new printer = Cost of new printer - Cost of old printer ............... (1)
Where;
Cost of new printer = $600
Cost of old printer = $350
Substituting the values into equation (1), we have:
Differential cost of purchasing the new printer = $600 - $350 = $250
Therefore, the differential cost of purchasing the new printer is $250.
Hoosier Burger is experiencing operational problems, such as stock-outs, missing sales and poor customer service. What business functions need improvement and what systems project could provide opportunities for this improvement?
Explanation:
Analyzing the operational problems faced by Hoosier Burguer, it is correct to say that there is a set of organizational functions that could implement improvements in the company. As the improvement of the supply chain management, which would guarantee that the cycle that the product takes from its production until reaching the final consumer was more effective, ensuring that the product arrived in the right quality, in the right quantity and at the right time until the consumer.
It is also essential to improve the sales and marketing functions in the company, in order to implement actions that promote the products, attract more customers and create a better positioning of the company in the market.
If a firm raised its pricea and discovered that its toatl revenue fell, then the demand for its product is:______.
a. relatively inelastic.
b. perfectly inelastic.
c. income inferior.
d. relatively elastic.
Answer:
Option d (Relatively elastic) would be the correct solution.
Explanation:
The demand for some of its commodities becomes relatively elastic, i.e. the price drop contributed to a large decrease or change in the number requested, thus lowering the overall sales. It could be contrasted to other options for elasticity-comparatively inelastic, completely inelastic, perfectly elastic even elastic units.All 3 other options are not connected to the hypothetical offered. So, the option here was the best one.
Bellingham Company produced 15,000 units of product that required 4 standard direct labor hours per unit. The standard variable overhead cost per unit is $0.90 per direct labor hour. The actual variable factory overhead was $52,770. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer: variable factory overhead controllable variance= -$1,230 which is Favorable.
Explanation:
Variance = Actual factory overhead – Budgeted allowance on standard hours allowed x Fixed expenses budgeted + variable expenses
Variable factory overhead controllable variance=Actual factory overhead-Standard Factory Overhead
But first.
Standard labor overheads cost == Units produced x standard direct labor hours per unit x standard overhead cost per unit per direct labor hour
15,000 x 4 x $0.90= $54,000
And the given
Actual overhead cost = $52,770
Therefore,
Variable factory overhead controllable variance= Actual factory overhead-
Standard Factory Overhead
= $52,770-$54,000= - $1,230 which is Favorable.
it favorable because the actual overhead cost is less than the standard overhead cost.
The favorable variable will be calculated by Actual overhead - Budgeted allowances on Standard hour X Fixed expenses + variable expenses in the similar way :
The Controllable of factory overhead is equal to Factory overhead - Standard factory overhead .
Unit produced 15000 X4(Standard direct labor ) X Cost per unit $0.09 = 54000USD.So the Actual Overhead cost will $52770
And the variable favorable cost will be ($1.230) which is less then the standard cost .
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Mario Company experienced the following events:
1. Purchased merchandise inventory for cash.
2. Sold merchandise inventory on account. Label the revenue recognition 2a and the expense recognition 2b.
3. Returned merchandise purchased on account.
4. Purchased merchandise inventory on account.
5. Paid cash on accounts payable within the discount period.
6. Paid cash for selling and administrative expenses.
7. Sold merchandise inventory for cash. Label the revenue recognition 7a and the expense recognition 7b.
8. Paid cash for transportation-out.
9. Paid cash for transportation-in.
10. Collected cash from accounts receivable not within the discount period.
Required
Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also how each event affects the financial statements by selecting the + for increase, − for decrease, or NA for not affected under each of the components in the following statements model. Assume the company uses the perpetual inventory system. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example.
Answer:
1. Purchased merchandise inventory for cash. ⇒ ASSET EXCHANGE
2. Sold merchandise inventory on account.
2a ⇒ ASSET SOURCE2b ⇒ ASSET USE3. Returned merchandise purchased on account. ⇒ ASSET USE
4. Purchased merchandise inventory on account. ⇒ ASSET SOURCE
5. Paid cash on accounts payable within the discount period. ⇒ ASSET USE
6. Paid cash for selling and administrative expenses. ⇒ ASSET USE
7. Sold merchandise inventory for cash.
7a ⇒ ASSET SOURCE7b ⇒ ASSET USE8. Paid cash for transportation-out. ⇒ ASSET USE
9. Paid cash for transportation-in. ⇒ ASSET EXCHANGE
10. Collected cash from accounts receivable not within the discount period. ⇒ ASSET EXCHANGE
repps Corporation produces a single product. Last year, Krepps manufactured 25,000 units and sold 20,000 units. Production costs for the year were as follows: Direct materials 180,000 Direct labor 120,000 Variable manufacturing overhead 210,000 Fixed manufacturing overhead 250,000 Sales totaled $850,000 for the year, variable selling and administrative expenses totaled $110,000, and fixed selling and administrative expenses totaled $170,000. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was:
Answer:
unitary contribution margin= $16.6
Explanation:
Giving the following information:
Direct materials 180,000
Direct labor 120,000
Variable manufacturing overhead 210,000
Variable selling and administrative expenses= $110,000
Sales totaled $850,000
First, we need to calculate the unitary production variable cost:
Unitary production variable cost= 510,000/25,000= $20.4
Now, the total unitary variable cost and the selling price:
Total unitary variable cost= (110,000/20,000) + 20.4= $25.9
Selling price= 850,000/20,000= $42.5
Finally, the unitary contribution margin:
unitary contribution margin= 42.5 - 25.9
unitary contribution margin= $16.6
An executive committee of a company includes one CEO, one General Manager, 3 Assistant General Managers, and 4 Executive Managers. Each one carries one vote. A decision will be taken based on
Answer:
A decision will be taken based on unanimous consensus which should be a fall out of constructive considerations of all the possible angles.
Explanation:
Under usual circumstances, the executive committee should comprise of the chairperson, vice-chairperson, secretary, and treasurer.
This, however, depends on the organization's corporate governance rules.
Decision making at the executive level in healthy organisations is not made based on one's ability to wield power or by the person or persons who wield the most authority.
The best decisions are those which uphold the highest logic. They should be taken regardless of who has suggested it for this is the attribute of superior minds - the ability to submit to a higher logic or solution regardless of its source.
Cheers
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,000 and an adjusted basis of $45,000. In addition, the equipment is subject to a $10,000 loan that KS Partnership is assuming. What amount represents Kline's initial basis in the partnership
Answer: $40,000
Explanation:
Kline brings in equipment that is worth $60,000 but has a basis of $45,000.
The equipment however is subject to a loan of $10,000.
This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.
Basis = 45,000 - 5,000
= $40,000
The ledger of Sagovic Rental Agency on March 31 of the current year includes the selected accounts on page 206 before adjusting entries have been prepared. Debits Credits.
Prepaid Insurance ($3600),
Supplies ($3000),
Equipment ($25,000),
Accumulated Depreciation-Equipment (Credit: $8,400),
Notes Payable (Credit: $20,000),
Unearned Rent Revenue (Credit: $12,400),
Rent Revenue (Credit: $60,000),
Interest Expense $0,
Salaries and Wages Expense ($14,000).
An analysis of the accounts shows the following.
1. The equipment depreciates $280 per month.
2. Half of the unearned rent revenue was earned during the quarter.
3. Interest of $400 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $400 per month.
Prepare the adjusting entries on March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.
Answer:
Sagovic Rental Agency
Adjusting Journal Entries:
1. Debit Depreciation Expense $840
Credit Accumulated Depreciation $840
To record depreciation expense for the quarter at $280 per month.
2. Debit Unearned Rent Revenue $6,200
Credit Rent Revenue $6,200
To record the half of earned rent revenue during the quarter.
3. Debit Interest Expense $400
Credit Interest Payable $00
To accrue interest expense for the quarter.
4. Debit Supplies Expense $2,150
Credit Supplies $2,150
To record supplies expense for the quarter.
5. Debit Insurance Expense $1,200
Credit Prepaid Insurance $1,200
To record insurance expense for 3 months at $400 per month.
Explanation:
a. Data:
Debits Credits.
Prepaid Insurance ($3600),
Supplies ($3000),
Equipment ($25,000),
Accumulated Depreciation-Equipment (Credit: $8,400),
Notes Payable (Credit: $20,000),
Unearned Rent Revenue (Credit: $12,400),
Rent Revenue (Credit: $60,000),
Interest Expense $0,
Salaries and Wages Expense ($14,000).
b. The adjusting entries are made in the books of Sagovic Rental Agency in order to harmonize the accounts with the period's expenses and revenues in line with the accrual and matching principles of generally accepted accounting principles.
