Answer:
Jan.1
Dr Cash $20,100
Cr Unearned Service Revenue $20,100
Jan.31
Dr Unearned Service Revenue $3350
Cr Service Revenue $3350
Jan.31
Dr Account Fees Receivable $ 570
Cr Service Revenue $ 570
Explanation:
Preparation of the adjusting entry
Journal Entries
Jan.1
Dr Cash $20,100
Cr Unearned Service Revenue $20,100
(Being To record 6 month contract)
Jan.31
Dr Unearned Service Revenue $3350 ($20,100*1/6)
Cr Service Revenue $3350
(Being To record january service fees earned on contract)
Jan.31
Dr Account Fees Receivable $ 570 (30*19)
Cr Service Revenue $ 570
(Being To record unbilled service fees at January 31)
Problem 4-54 (LO. 4, 5) Linda and Don are married and file a joint return. In 2020, they received $12,000 in Social Security benefits and $35,000 in taxable pension benefits and interest. The applicable higher/lower bases for Social Security computations for married filing jointly are $32,000 and $44,000. a. Compute the couple's adjusted gross income on a joint return. $fill in the blank 7fe2a4f7afc4f82_1 b. Don would like to know whether they should sell for $100,000 (at no gain or loss) a corporate bond that pays 8% in interest each year and use the proceeds to buy a $100,000 nontaxable State of Virginia bond that will pay $6,000 in interest each year. Assume that their marginal tax rate is 12%. Although the interest received on the state bond is , it still is in modified adjusted gross income, impacting the taxability of the Social Security benefit. Their AGI would be $fill in the blank c572caf67feefd0_3 . c. In the preceding situation part (a), if Linda works part-time and earns $30,000, by how much would Linda and Don's adjusted gross income increase
Answer:
The answer to this question can be defined as follows:
Explanation:
For point a:
Chargeable advantages to social welfare:
[tex]=0.5(\$35000+0.5(\$12000)-\$32000)\\\\ =0.5(9000)\\\\=\$4500[/tex]
Pension benefits etc $35 thousand
Total AGI= [tex]\$39,500[/tex]
For point b:
Additional revenue [tex](\$3,500-\$8,000) = \$27,000[/tex]
Taxable [tex]SSB0.5(27000+\$6000+0.5\times 12000-\$32000)=\$3500[/tex]
AGI = [tex]\$30,500[/tex]
Less: AGI in (a) [tex](\$39,500)[/tex]
Decrease [tex](\$9000)[/tex]
Tax payers' financial income has been down by [tex]\$2000[/tex], but taxable AGI is down by $9,000. The reduction of [tex]\$650(\$2000-\$9000\times 15 \%)[/tex] with a [tex]15\%[/tex]MTR after the tax income.
For point c:
The least of follows [tex]1). \ \ 0.85( \$65000+0.5 \times 12000-\$44000) = \$22950[/tex]
Smaller than that one
Calculated amount with the first formula
Less:
[tex]0.5\times 12000 = \$6000\\\\0.5(\$65000+0.5 \times 12000-\$32000)= \$19500 \ \ or \ \ \$6000\\\\\$22950 +\$6000 = \$28950 \\\\2.0.85 \times 12000 = \$10200[/tex]
That is why Linda and Don have [tex]85\%[/tex]of their gross income from the SSB [tex]\$10200[/tex].
The benefits of social security [tex]\$10200[/tex]
Additional revenues [tex]=\$35000+\$30000 \ \ (addl.inc)= \$ 65000[/tex]
AGI [tex]\$75,200[/tex]
Less (a) AGI ([tex]\$39,500[/tex])
Increases [tex]\$ 35,700[/tex]
AGI growth exceeds earnings increases because more SSB is taxed.
Project X and project Y have the same number of activities (500 activities each). Project X has 25 critical paths and project Y has 3 critical paths through the network. As a result, project X has several more activities in the critical paths than that of project Y. Which project will most likely be harder to manage (i.e., completing the project on-time by the due date) for the project manager
Answer:
Project X
Explanation:
Project X is going to be more difficult for the manager to manage. This is because X has many critical paths which are multiple compared to that of project Y.
More of these critical paths means that there would be a reduction in the likelihood of the project being successful. These critical paths and activities can affect the date of completion that was planned for the project. A project like X can be time consuming and expensive for the manager
The following items were reported on the balance sheets and income statement for Centerton Inc., a service company: Operating expenses payable, December 31, 2015 $ 64,000 Operating expenses payable, December 31, 2016 48,000 Operating expenses (income statement) —2016 170,000 What amount would be reported in the operating activities section of the statement of cash flows for payments for operating expenses under the direct method?
Answer:
$186,000
Explanation:
The computation of the amount that should be reported on the operating activities section of the cash flow statement is shown below:
= Opening balance of operating expense payable + operating expense - closing balance of operating expense payable
= $64,000 + $170,000 - $48,000
= $186,000
Northwood Company manufactures basketballs.
The company has a ball that sells for $25.
At present, the ball is manufactured in a small plant that relies heavily on direct labor workers.
Thus, variable expenses are high, totaling 15% per ball, of which 60 percent is direct labor cost.
Last year, the company sold 30,000 of these balls, with the following results:
Sales $750,000
Variable expenses (450,000)
Contribution margin 300,000
Fixed expenses (210,000)
Net operating income$ 90,000
1. Compute the CM ratio and the break-even point in quantity of balls.
2. Compute the degree of operating leverage at last year's sales level.
3. Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year.
If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in quantity of balls?
4. Refer to the data in (3) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year?
5. Refer again to the data in (3) above. The president feels that the company must raise the selling price of its basketballs.
If Northwood Company wants to maintain the same contribution margin ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
6. Refer to the original data. The company is discussing the construction of a new automated manufacturing plant. The new plant would slash variable expenses per ball by 40%, but it would cause fixed expenses per year to double.
If the new plant is built, what would be the company's new CM ratio and new break-even point in quantity of balls?
7. Refer to the data in (6) above. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year?
8. Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last year).
Prepare a contribution format income statement and compute the degree of operating leverage.
Answer:
Northwood Company
1. Contribution margin ratio = Contribution per unit/Selling price * 100
= $10/$25 * 100
= 40%
Break-even point in quantity of balls = Fixed cost/Contribution margin
= $210,000/$10
= 21,000 balls
Degree of operating leverage = Contribution margin divided by Net operating income (sales minus variable costs and fixed costs)
= $300,000/$90,000
= 3.33
New CM ratio =
Selling price $25
Variable cost 18 (15 + 3)
Contribution $7
Contribution margin ratio = $7/$25 * 100
= 28%
3. Break-even point in quantity of balls = Fixed expenses/contribution margin = $210,000/$7
= 30,000 balls
4. Break-even point in quantity of balls to achieve a target profit of $90,000
= (Fixed cost + Target profit)/$7
= ($210,000 + $90,000)/$7
= $300,000/$7
= 42,857 balls
5. The selling price per ball must increase to:
Variable cost = $15 + $3 = $18 = 60% of selling price
Therefore, new selling price = $18/60%
= $30
6. Selling price = $25
Variable = 9 ($15 * 60%)
Contribution $16 ($25 - $9)
Fixed expenses = $420,000 (210,000 * 2)
New CM ratio = $16/$25 * 100
= 64%
Break-even point in quantity of balls = Fixed expenses/Contribution margin
= $420,000/$16
= 26,250 balls
7. To earn target net operating income of $90,000, the quantity of balls will be:
= ($420,000 + $90,000)/$16
= $510,000/$16
= 31,875 balls
8. Contribution Format Income Statement:
Sales Revenue $750,000 ($25 * 30,000)
Variable expenses 270,000 ($9 * 30,000)
Contribution margin $480,000
Fixed expenses 420,000
Net operating income $60,000
Degree of operating leverage = Net operating income/Contribution margin
= $60,000/$480,000
= 0.125
Explanation:
a) Data and Calculations:
Selling price per ball = $25
Variable cost per ball = $15 ($450,000/30,000)
Contribution per ball = $10
Fixed expenses = $210,000
Net operating income = $90,000
Sales $750,000
Variable expenses (450,000)
Contribution margin 300,000
Fixed expenses (210,000)
Net operating income$ 90,000
b) Northwood's degree of operating leverage (DOL) measures how much the operating income of the company will change as a result of a change in its sales. The DOL ratio, which is a multiple, enables analysts to determine the impact of any change in sales on the earnings or profits of Northwood Company in a given year.
The purpose of market research by entrepreneurs is to:
a) Gather data
b) Analyze data
c) Make better decisions
d) None of the above
Submit
Answer:
C Make better decisions
Answer:
the answer is C to make better decisions
During January 2018, the first month of operations, a consulting firm had following transactions:
1. Issued common stock to owners in exchange for $48,000 cash.
2. Purchased $12,000 of equipment, paying $2,400 cash and signing a promissory note for $9,600.
3. Received $21,600 in cash for consulting services performed in January.
4. Purchased $3,600 of supplies on account; all of the supplies were used in January
5. Provided consulting services on account in the amount of $38,400.
6. Paid $1,800 on account.
7. Paid $7,200 to employees for work performed during January.
8. Received a bill for utilities for January of $8,150; the bill remains unpaid.
What is the total expenses that will be reported on the income statement for the month ended January 31?
a. $18,950.
b. $10,800.
c. $9,000.
d. $19,550.
Answer:
d. $19,550.
Explanation:
supplies expense = $3,600
utilities expense = $8,150
wages expense = $7,200
total expenses = $18,950
money paid for accounts payable is not considered an expense since the debt results from purchasing equipment. Depreciation of the equipment is an expense but wasn't specified in the question.
What is marketing-information management (MIM)?
Answer:
Explanation:
Marketing Information Management (MIM) The process and methods used to gather information, analyze it, and report findings related to marketing goods and services.
Answer:
mm
Explanation:
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
Issued 30,000 shares of no-par common stock in exchange for $300,000 in cash.
Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
Paid $5,000 in rent on the warehouse building for the month of March.
Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
Paid $70,000 on account for the merchandise purchased in 3.
Collected $55,000 from customers on account.
Recorded depreciation expense of $1,000 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Wainwright Corporation
Journal Entries:
a. Debit Cash $300,000
Credit Common Stock $300,000
To record the issue of 30,000 shares of no-par common stock for cash.
b. Debit Equipment $40,000
Credit Cash $10,000
Credit Notes Payable $30,000
To record the purchase of equipment.
c. Debit Inventory $90,000
Credit Accounts payable $90,000
To record the purchase of inventory on account.
d. Debit Accounts receivable $120,000
Credit Sales revenue $120,000
To record the sale of goods on account.
Debit Cost of Goods Sold $70,000
Credit Inventory $70,000
To record the cost of goods sold.
Debit Rent Expense $5,000
Credit Cash $5,000
To record the rent expense for the month.
Debit Prepaid Insurance $6,000
Credit Cash $6,000
To record the prepayment of insurance for one year.
Debit Accounts payable $70,000
Credit Cash $70,000
To record the payment on account.
Debit Cash $55,000
Credit Accounts receivable $55,000
To record the collection of cash from customers.
Debit Depreciation Expense - Equipment $1,000
Credit Accumulated Depreciation - Equipment $1,000
To record the depreciation expense for the month.
Explanation:
General journal entries are used to initially record all types of transaction in the accounting records. They form the basis for posting to the general ledger. They also indicate the accounts to be debited or credited in the general ledger.
copyright law protects the expression of
Answer:
Copyright protection generally lasts for 70 years and protects the original expression of an idea, whether literary, artistic, commercial or otherwise. It is used to protect original works of authorship that are fixed in a tangible medium of expression.
Explanation:
Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arrangements at a 5% annual rate. Ace leased a machine it purchased for $710,000 under an arrangement that specified annual payments beginning at the commencement of the lease for five years. The lessee had the option to purchase the machine at the end of the lease term for $100,000 when it was expected to have a residual value of $270,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Calculate the amount of the annual lease payments.
Answer and Explanation:
The computation is shown below:
Amount to be recovered = $710,000
Present value of bargain purchase option is
= $100,000 × PV factor at 5% for 5th period
= $100,000 × 0.783526166
= $78,352.62
The Amount to be recoverd via periodic lease payment is
= $710,000 - $78,352.62
= $631,647.38
The Annual lease payment is
= $631,647.38 ÷ Cumulative PV factor for annuity due at 5% for 5 periods
= $631,647.38 ÷ 4.545951
= $138,947.25
What competition and Five Force Model Analysis?
Answer:
Porter's Five Forces is a framework for analyzing a company's competitive environment. The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability.
Nash's Trading Post, LLC uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $439,700 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,041. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $918 instead of a credit balance of $3,041, prepare the adjusting journal entry for bad debt expense.
Answer:
Provision = $439700*3% = $13,191
Bad debts expense = $13,191 - $3,041 = $10150
Journal entries
Particulars Debit Credit
a) Bad debts expenses $10,150
Allowance for doubtful accounts $10,150
(To record Bad debt exp )
b) Bad debts expenses (13191+918) $14,109
Allowance for doubtful accounts $14,109
(To record bad debts expenses)
Discuss whether or not skilled workers are always paid more than unskilled workers.
Answer:
Unskilled workers are generally paid less than skilled workers. Demand for skilled workers is high whilst their supply is low. There are two main influences on the demand for workers. One is the amount of output they can produce and the other is the price, for which that output can be sold for.
The income statements of all corporations are in the same format. True or false? Discuss.
Answer:
False
Explanation:
This is false because there are multiple types of statements. There are classified income statements, profit and lose income statement, and an operating statement.
How many rooms might one room attendant need to clean in a shift?
ОА.
2
OB.
5
OC.
20
OD.
100
Answer:
5
Explanation:
ya kno da deal
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $526.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan
Answer:
Nominal interest rate = 12.23%
Explanation:
Given - Aerotron Electronics has just bought a used delivery truck for
$15,000. The small business paid $1,000 down and financed the
rest, with the agreement to pay nothing for the entire first year and
then to pay $526.83 at the end of each month over years 2, 3, and
4 (first payment is in 13th month).
To find - a. What nominal interest rate is Aerotron paying on the loan.
Proof -
As given ,
Price - $15,000
Down Payment - $1,000
⇒Loan Payment = $15,000 - $1,000
As given,
He will not pay for the entire first year. After that he will pay $526.83 for next 3 years.
Now,
Interest rate for 1 month = r %
So,
Loan after 1 year = 14,000( 1 + r)¹²
And
Annuity factor = [tex]\frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }[/tex]
and t = 3 years = 36 months
Now,
As we know,
Monthly loan payment = [tex]\frac{Loan amount}{Annuity factor}[/tex]
⇒$526.83 = 14,000( 1 + r)¹² / [tex]\frac{1}{r} - \frac{1}{r}. \frac{1}{(1+r)^{t} }[/tex]
By solving we get
r = 1.019%
Now,
Nominal interest rate = 1.019%×12 = 12.23%
In the Loyalty and Fraud Reporting case, Ethan Lester pressured his friend Vick Jensen to:_________.
Answer:
Explanation:
Misappropriate funds from the company. Cover up Ethan's fraud
What is a representative sample?
A A sample where every source of bias is removed.
B A sample where multiple biases are represented.
C A sample comprised of only politicians.
D A sample that represents most of the population.
A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating schedule is used to make components: make 100 units of A, make 50 units of B, and then make 200 units of C. How many components are made in the production cycle
Answer:
350
Explanation:
Calculation for How many components are made in the production cycle
Components A 100 units
Components B 50 units
Components C 200 units
Total 350 components
Therefore How many components are made in the production cycle is 350 components
Use the following to answer questions 5-8
Bank Reconciliation: Identify whether the item should be added or subtracted from the bank balance or the company balance. Use the number 1-4) for your response. For instance, if the amount should be added to bank statement balance you would input 1.
1. Added to bank statement balance
2. Subtracted from bank statement balance
3. Added to company cash balance
4. Subtracted from company cash balance
Item
5 Bank deducted too much out of the checking account
6 Bank charge for new checks ordered for the checking account
7 Interest earned on the checking account
8 Checks written but have not cleared the bank yet
Use the following to answer questions 9-11 On February 28th, the general ledger of CAC shows a balance for cash of $220,000 Cash receipts yet to be deposited into the checking account total $126,000, while checks written by CAC but not yet processed by the bank total $147,500. The company's balance of cash does not reflect a NSF check of $119, a service fee of $20 and interest earned of $32 and a customer payments collected by the bank of $6,250; however, these amounts are included in the balance of cash of $247,643 reported by the bank as of the end of February
Answer the following based on the process of doing the bank reconciliation:
9. $________ Determine the total amount that is used to reconcile the Bank balance include if needed):
10. _______Determine the total amount that is used to reconcile the Company cash balance (include "-" if needed)
11. ________What is the balance in the company's cash account after the reconciliation?
Answer:
Item Identification
5. Bank deducted too much out of Added to bank statement balance
the checking account
6. Bank charges for new checks Subtracted from company cash
ordered for the checking amount
balance
7. Interest earned on the checking Added to company cash balance
account
8. Checks written but have not Subtracted from bank statement
cleared the bank yet balance
9. Total sum of amount used to reconcile the bank balance = Deposit in transit - Outstanding checks = $126,000 - $147,500 = -$21,500
10. Total amount used to reconcile the company cash balance = Interest earned - NSF check - Service fee + Customer payment collected by bank = $32 - $119 - $20 + $6,250 = $6,143
11. Balance in company's cash account after reconciliation = Cash balance on Feb 28 + Total amount used to reconcile the company cash balance = $220,000 + $6,143 = $226,143
It is July 16. A company has a portfolio of stocks worth $100 million. The beta of the portfolio is 1.2. The company would like to use the December futures contract on a stock index to change beta of the portfolio to 0.5 during the period July 16 to November 16. The index is currently 2,000, and each contract is on $250 times the index. What position should the company take? long 140 contracts short 140 contracts long 240 contracts short 240 contracts
Answer:short 140 contracts
Explanation: Using the formulae
Number of Contracts (Company's position )=( Desired Beta of the portfolio - beta of the portfolio) x Portfolio of stocks) / ( Future Value )
Future Value = Index futures price x Multiplier
=2000 x 250
=$500,000
Putting the values, we have that
Company position =(0.5 -1.2) x $100 million) / $500,000
Company position=-0.7 x $100 million/500,000
Company position=-$70,000,000/500,000
Number of contracts (Company position)=-140 contract
A negative sign means that the contract is going short.
Therefore,
A total of 140 contracts by the company should be short.
You charged $500 to your credit card to buy a new TV and paid it off after
6 months. With interest, you paid back a total of $600. Which of the
following is the principal in this situation?
$500.
6 months.
$100.
D
$600.
Answer:
$500
Explanation:
Given this question that we have here, the principal is the initial $500 that was charged to the credit card.
In the field of accounting, the principal amount can be described as the initial amount that was given off as a loan. That is without the addition of the interest amount.
It is the initial size of a loan. The answer here is $500 because that is the amount that was charged at first to the card. The payback amount only got to $600 because of the addition of the interest amount.
Read more on https://brainly.com/question/2284670?referrer=searchResults
14) A firm's internal business environment does NOT include its ________.
A) employees
B) patents
C) products
D) technologies
E) customers
Answer:
E) Customers
Explanation:
Took the quiz
Mr. Smith decides to feed his pet Doberman pinscher a combination of two dog foods. Each can of brand A contains units of protein, 1 unit of carbohydrates, and 2 units of fat and costs cents. Each can of brand B contains 1 unit of protein, 1 unit of carbohydrates, and units of fat and costs cents. Mr. Smith feels that each day his dog should have at least units of protein, units of carbohydrates, and units of fat. How many cans of each dog food should he give to his dog each day to provide the minimum requirements at the least cost? Mr. Smith should give his dog nothing can(s) of brand A and nothing can(s) of brand B to provide the minimum requirements at the least cost.
Answer:
hello your question is incomplete below is the complete question
Mr. Smith decides to feed his pet Doberman pinscher a combination of two dog foods. Each can of brand A contains 3 units of protein, 1 unit of carbohydrates, and 2 units of fat and costs 80 cents. Each can of brand B contains 1 unit of protein, 1 unit of carbohydrates, and 6 units of fat and costs 50 cents. Mr. Smith feels that each day his dog should have at least 6 units of protein, 4 units of carbohydrates, and 12 units of fat. How many cans of each dog food should he give to his dog each day to provide the minimum requirements at the least cost? *Mr. Smith should give his dog ___ can(s) of brand A and ___ can(s) of brand B
answer : 1.5 cans of brand A and 1.5 cans of brand B
Explanation:
Food A contains :
3 units of protein , 1 unit of carbohydrates, 2 units of fat
cost of food A = 80 cents
Food B contains :
1 unit of protein , 1 unit of carbohydrates, 6 units of fat
cost of food B = 50 cents
minimum ingredients required in the dog food daily
6 units of protein , 4 units of carbohydrates, 12 units of fat
In order to achieve the minimum/least cost of 195 cent. Mr. smith should give his dog 1.5 cans of Brand A and 1.5 can of brand B
attached below is the detailed solution
"Insurance is a waste of money. If and when you suffer a financial loss because of an
accident or some other event, you can pay for it from your savings account."
Do you agree or disagree with this statement?
Explain your position.
Answer:
disagree
Explanation:
As a personal opinion I strongly disagree with this statement. This is because for the majority of the people on Earth that live day to day with their finances, an accident can completely wreck them financially. A simple car, house, or health accident can cost thousands of dollars in loss or even hundreds of thousands. Most people would not have 10% of that in a savings account. Therefore, Insurance can be extremely helpful and in most cases cover the entirety of the accident which can (in a way) give you a second chance.
Cagney Industries has the following cost information for the year just ended: Direct materials $ 1.00 per unit Direct labor $ 2.00 per unit Variable manufacturing overhead $ 1.50 per unit Fixed manufacturing overhead $ 30,000 Variable selling and administrative cost $ 0.50 per unit Fixed selling and administrative cost $ 25,000 During the year, Cagney produced 6,000 units, out of which 5,400 were sold for $20 each. What is net income under absorption costing
Answer:
$29,000
Explanation:
First, we need to calculate the unitary cost value
Unit cost value = ($1 + $2 + $1.5) + $30,000/6,000 = $9.5
Sales = 5,400 × $20 = $108,000
Less:
COGS = $9.5 × 5,400 = ($51,300)
Gross profit = $56,700
Less:
Total administrative costs = ($0.5 × 5,400) + $25,000 = ($27,700)
Net operating income = $29,000
A CEO who communicates about the opportunities and challenges facing the company to employees at all levels and in all departments is engaged in .:_______
a. sending routine messages
b. communication apprehension
c. horizontal communication
d. horizontal communication
Once you purchase a house. It typically appreciates in value. Appreciation is
A. an increase in value
B. stability in value
C. polite
D. a decrease in value
Answer:
A.
Explanation:
Appreciation means that something increases in value therefore it is A.
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-Hours per unit Annual Production
Rims 0.80 29,000 units
Posts 0.80 73,000 units
Additional information about the company follows:
Rims require $20 in direct materials per unit, and Posts require $18.
The direct labor wage rate is $16 per hour.
Rims are more complex to manufacture than Posts and they require special equipment.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Cost Pool Activity Measure Estimated
Overhead
Cost Rims Posts Total
Machine setups Number of setups $ 34,310 100 100 200
Special processing Machine-hours $ 113,150 1,000 0 1,000
General factory Direct labor-hours $ 1,218,000 4,000 83,000 87,000
Exercise 4-8 Part 2
2. Determine the unit product cost of each product according to the ABC system.
Unit product cost of Rims
Unit product cost of Posts
Answer and Explanation:
The computation of the unit product cost is shown below;
Particulars Rims Posts
Machine setups 17155 17155
(34310 ÷ 200 × 100)
Special processing 113150 0
General factory 56,000 1162000
(1218000 ÷ 87000 × 4000) (14 × 83000)
Total overhead 186305 1179155
Units 29000 73000
Overhead cost per unit 6.42 16.15
Direct material 20 18
Direct labor 12.8 12.80
(16 × .80)
Unit product cost 39.22 46.95
A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last
deposit is:___________
(a) 3,000,000(A∕F,10%,10)
(b) 3,000,000(A∕F,10%,11)
(c) 3,000,000 + 3,000,000(A∕F,10%,10)
(d) 3,000,000(A∕P,10%,10)
Answer:
The correct option is (a) 3,000,000(A∕F,10%,10).
Explanation:
Ordinarily, the equation to use to calculate the amount the company is required to deposit each year is given as follows:
A = F * (r / ((1 + r)^n - 1)) ....................... (1)
Where;
A = Annual deposit = ?
F = Future value or accumulated sum of amount = $3,000,000
r = Annual interest rate = 10%, or 0.01
n = Number of years.
The standard notation of equation (1) above is given as follows:
A = F(A / F, r, n) ................................ (2)
Substituting the relevant description from the above into equation (2), we have:
A = 3,000,000(A∕F,10%,10)
Therefore, the correct option is (a) 3,000,000(A∕F,10%,10).
