Answer:
Snyder Painting
If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on
B. paint storage.
Explanation:
a) Identified Activities of Snyder Painting:
A. customer consultation.
B. paint storage.
C. site preparation and cleanup.
D. onsite paint application.
b) Non-value added activities are activities that are currently necessary and consume resources but do not add value to the company's product or service. For example, equipment set-up, parts inspection, recording job time, job scheduling, product storage, and customer billing. These activities should be reduced to the barest minimum in order to maximize value.
3) Fede company produces two products. The products' estimated costs are as follows: Product S Product K Direct materials $ 20,000 $ 15,000 Direct labor 12,000 24,000 The company's overhead costs of $108,000 are allocated based on labor cost. Assume 4,000 units of product S and 5,000 units of Product K are produced. What is the total amount of production costs that would be assigned to Product S
Answer:
$68,000
Explanation:
Calculation to determine What is the total amount of production costs that would be assigned to Product S
Direct materials $ 20,000
Add Direct labor $12,000
Add Dividend $36,000
($108,000*$12,000/$12,000+$24,000)
Total amount of production costs $68,000
($20,000+$12,000+$36,000)
Therefore the total amount of production costs that would be assigned to Product S is $68,000
On December 1, 2011, the Itami Wholesale Co. is attempting to project cash receipts and disbursements through January 31, 2012. On this latter date, a note will be payable in the amount of $100,000. This amount was borrowed in September to carry the company through the seasonal peak in November and December.
Selected general ledger balances on December 1 are as follows:
Cash $ 88,000
Inventory 65,200
Accounts payable 136,000
Sales terms call for a 3% discount if payment is made within the first 10 days of the month after sale, with the balance due by the end of the month after sale. Experience has shown that 50% of the billings will be collected within the discount period, 30% by the end of the month after purchase, and 14% in the following month. The remaining 6% will be uncollectible. There are no cash sales. The average selling price of the company’s products is $100 per unit. Actual and projected sales are as follows:
October actual $ 280,000
November actual 320,000
December estimated 330,000
January estimated 250,000
February estimated 240,000
Total estimated for year ending June 30, 2012 $2,400,000
All purchases are payable within 15 days. Approximately 60% of the purchases in a month are paid that month, and the rest the following month. The average unit purchase cost is $80. Target ending inventories are 500 units plus 10% of the next month’s unit sales. Total budgeted marketing, distribution, and customer-service costs for the year are $600,000. Of this amount, $120,000 are considered fixed (and include depreciation of $30,000). The remainder varies with sales. Both fixed and variable marketing, distribution, and customer-service costs are paid as incurred.
Required:
Prepare a cash budget for December 2011 and January 2012. Supply supporting schedules for collections of receivables; payments for merchandise; and marketing, distribution, and customer-service costs.
Answer:
Itami Wholesale Co.
Cash Budget
December January
Beginning balance $88,000 $47,190
Cash collections 295,250 265,050
Total cash receipts $383,250 $312,240
Cash Disbursements:
Note payable $100,000
Payment for purchases $262,560 222,080
Payment for marketing,
distribution, and
customer-service 73,500 57,500
Total disbursements $336,060 $375,580
Ending cash balance $47,190 ($67,340)
Explanation:
a) Data and Calculations:
Inventory beginning balance = $65,200
Accounts payable beginning balance = $136,000
Sales:
50% collected ($ - 3%)
30% second month
14% third month
6% uncollectible
Actual and projected Sales:
October November December January February
Actual sales $280,000 $320,000
Estimated sales $330,000 $250,000 $240,000
50% collected ($ - 3%) $160,050 $121,250 $116,400
30% second month 96,000 99,000 75,000
14% third month 39,200 44,800 46,200
Total cash collections $295,250 $265,050 $237,600
Payment for merchandise: November December January February
Ending inventory 820 830 750 740
Sales in units 3,200 3,300 2,500 2,400
Units available for sale 4,020 4,130 3,250 3,140
Beginning inventory 780 820 830 750
Purchases 3,240 3,310 2,420 2,390
Cost of purchases $259,200 $264,800 $193,600 $191,200
Payment:
60% purchase month 155,520 158,880 116,160 114,720
40% the following month 103,680 105,920 77,440
Total payment for purchases $262,560 $222,080 $192,160
Budgeted marketing, distribution, and customer-service costs for the year = $600,000
Fixed cost = $120,000
Depreciation = $30,000
Cash payment for fixed cost = $90,000
Monthly payment for fixed cost = $7,500
Variable cost for the year = $480,000 ($600,000 - $120,000)
December = $330,000/$2,400,000 * $480,000 = $66,000
January = $250,000/$2,400,000 * $480,000 = $50,000
December January
Fixed cost payment $7,500 $7,500
Variable cost payment 66,000 50,000
Total cash payment $73,500 $57,500
Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product A has a contribution margin of $7.70 per unit. Product B has a contribution margin of $2.64 per unit. The same machines are used to produce both products. Product A requires 0.33 machine hours and product B requires 0.20 machine hours. Which product should the company make and sell
Answer:
C. Product A because the contribution margin per MH is $23.33.
Explanation:
The computation is shown below:
Particulars Product A Product B
Contribution margin per unit $7.70 $2.64
Divide by machine hours per unit 0.33 0.20
Contribution margin per MH $23.33 $13.20
The company should make and sell the product A as in this the contribution margin per machine hour would be high as compared with the product B
Ted borrowed $140,000 from ABC Bank to purchase a home and pledged the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the monthly mortgage. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled
Answer:
Under the Mortgage clause of the policy, the insurance company will pay out the insurable interest it would have paid to Ted, to ABC bank.
Ted will now owe the insurance company whatever it was that they paid to the bank and they will be able to legally go after him to pay off that amount using any legal means necessary.
Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.90 grams $ 1.40 per gram Direct labor 0.40 hours $ 15.00 per hour Variable overhead 0.40 hours $ 2.40 per hour The company reported the following results concerning this product in July. Actual output 3,400 units Raw materials used in production 11,770 grams Actual direct labor-hours 1,190 hours Purchases of raw materials 12,500 grams Actual price of raw materials purchased $ 1.60 per gram Actual direct labor rate $ 11.80 per hour Actual variable overhead rate $ 2.50 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for July is:
Answer:
Variable overhead efficiency variance = $408 Favorable
Explanation:
Variable overhead efficiency variance: Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.
Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance
Hours
3,400 units should have taken (3,400×0.4 hours) 1,360
but did take 1,190
Labour hours variance 170 favorable
Standard variable overhead rate × $ 2.40 per hour
Variable overhead efficiency variance $408Favorable
Variable overhead efficiency variance = $408 Favorable
Current research suggests that a. investors can get more diversification with shares of domestic, large-cap stocks. b. investors can get more diversification with shares of domestic, small-cap stocks. c. investors can get more diversification with shares of foreign, large-cap stocks. d. investors can get more diversification with shares of foreign, small-cap stocks.
Answer:
d.) investors can get more diversification with shares of foreign, small-cap stocks.
Explanation:
Diversification could be regarded as one of the ways used in balancing of risk as well as reward in ones investment portfolio. It is been reffered to as practice involving spreading ones investments around , then ones exposure to any one type of asset will be limited. This is a way to reduce the volatility of ones portfolio over time.
More diversification can be gotten by
Small-cap stocks which are regarded as public companies with a market capitalizations that ranges from $300 million up to $2 billion. It should be noted that Current research suggests that investors can get more diversification with shares of foreign, small-cap stocks.
Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2018 for $56 per bond and classified the investment as securities available-for-sale. The value of the Diamond investment was $86 per bond on December 31, 2019, and $100 per bond on December 31, 2020. During 2021, Hawk sold all of its Diamond investment at $144 per bond. In its 2021 income statement, Hawk would report:
Answer: $880,000 as gain
Explanation:
Unrecognized gain in 2019:
= 86 - 56
= $30 per bond
Unrecognized gain in 2020:
= 100 - 86
= $14 per bond
Gain from sale:
= (Unrecognized gain 2019 + Unrecognized gain in 2020 + Gain on sale) * no. of bonds
= (30 + 14 + (144 - 100) ) * 10,000
= $880,000 as gain
Question 4 of 10
Tina was falsely accused of shoplifting in a large retail store. She was
humiliated in front of a large crowd that included a number of her friends and
family members. The store's security officer had deliberately planted
evidence to incriminate Tina and was loudly drawing much attention to the
scene. In the end Tina was cleared of the shoplifting charge and no physical
harm was done to her or her property. However, a court case was still decided
in favor of awarding her damages. On what basis might this be?
A. Compensation can be awarded for general damages, such as
traumatic humiliation, as well as special damages.
B. There is no need for actual harm to be suffered in order for
damages to be awarded.
C. A breach of duty of care toward customers in public stores is
always sufficient to award damages.
O D. The security officer was acting as a "reasonable person," which led
the court to award damages.
Answer: a I think
Explanation:
Answer:
A. Compensation can be awarded for general damages, such as
traumatic humiliation, as well as special damages.Explanation:I just took the test
Marcia, a single individual, has qualified trade or business income after all applicable deductions of $240,000. Her business paid $80,000 of W-2 wages this year and has $50,000 of tangible business property. Required: Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $300,000. Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $180,000.
Answer:
Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $300,000.
$40,000Compute Marcia's QBI deduction, assuming her overall taxable income before QBI is $180,000.
$36,000Explanation:
Marcia's QBI deduction limits:
lower between 20% of QBI or taxable income
$240,000 x 20% = $48,000
$300,000 x 20% = $60,000
or
higher between 50% of wages or 25% of wages + 2.5% of business property
$80,000 x 50% = $40,000
($80,000 x 25%) + (2.5% x $50,000) = $21,250
Marcia's QBI deduction limits:
lower between 20% of QBI or taxable income
$180,000 x 20% = $36,000
$300,000 x 20% = $60,000
or
higher between 50% of wages or 25% of wages + 2.5% of business property
$80,000 x 50% = $40,000
($80,000 x 25%) + (2.5% x $50,000) = $21,250
Cariboo Manufacturing Company incurred a joint cost of $1,147,000 in the production of X and Y in a joint process. Presently, 3,300 of X and 2,900 of Y are being produced each month. Management plans to decrease X's production by 1,050 units in order to increase the production of Y by 1,400 units. Additionally, this change will require minor modifications, which will add $79,360 to the joint cost. This cost is entirely attributable to product Y. What is the amount of the joint costs allocable to X and Y before changes to existing production, assuming Cariboo allocates their joint costs according to the proportion of Y and X produced
Answer: See explanation
Explanation:
The cost allocation rate will be:
= 1147000 / (3300 + 2900)
= 1147000 / 6200
= 185
Cost allocated to X = 185 × 3300 = 610500
Cost allocated to Y = 185 × 2900 = 536500
In its 2021 income statement, Pharoah Corp. reported depreciation of $4100000 and interest revenue on municipal obligations of $744000. Pharoah reported depreciation of $6020000 on its 2021 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Pharaoh's enacted income tax rates are 25% for 2021, 20% for 2022, and 15% for 2023 and 2024. What amount should be included in the deferred income tax liability in Pharaoh's December 31, 2021 balance sheet
Answer: $320000
Explanation:
First, we calculate the difference in depreciation which will be:
= $6020000 - $4100000
= $1920000
Since the difference in depreciation will be reverse equally over the next 3 years, the amount per year will be:
= $1920000 / 3
= $640000
Defered income tax liability will be:
= ($640000 × 20%) + ($640000 × 15%) + ($640000 × 15%)
= $128000 + $96000 + $96000
= $320000
Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for Stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is :__________. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.
Explanation:
Market risk premium is 6.7%
Reward-to-risk ratio of Stock = (Expected return of the Stock - Risk-free rate) / Beta of the Stock
Using equation (1), we therefore have:
Reward-to-risk ratio of Stock Y = (18.2% - 5.2%) / 1.8 = 7.22%
Reward-to-risk ratio Stock Z = (9.6% - 5.2%) / 0.8 = 5.50%
Since the β of the market is one, it implies that SML reward-to-risk is 6.70 perecent.
Therefore, we have:
The reward-to-risk ratios for Stocks Y and Z are 7.22 and 5.50 percent, respectively. Since the SML reward-to-risk is 6.70 percent, Stock Y is undervalued and Stock Z is overvalued.
All unethical practices are covered under the law.
True or False
Answer:
False
Explanation:
Law represent the rules and regulations made by the government in order to fulfill them so that each and every individual could work on ethical way, Here only the ethical practices are covered under the law if anyone is not following the rules and regulations proper action should be taken against that person. Also it is compulsory for all to follow the rules and regulations
Therefore the given statement is false
Computing and Recording Depletion Expense In 2019, Eldenburg Mining Company purchased land for $7,200,000 that had a natural resource reserve estimated to be 500,000 tons. Development and road construction costs on the land were $420,000, and a building was constructed at a cost of $50,000. When the natural resources are completely extracted, the land has an estimated residual value of $1,200,000. In addition, the cost to restore the property to comply with environmental regulations is estimated to be $800,000. Production in 2016 and 2017 was 60,000 tons and 85,000 tons, respectively.
Required:
a. Compute the depletion charge for 2016 and 2017. (You should include depreciation on the building, if any, as part of the depletion charge.)
b. Prepare a journal entry to record each year's depletion expense as determined in part a.
Answer:
A. 2016 $872,400
2017 $1,235,900
B. 2016
Dr depletion expense a/c 872,400
Cr Accumulated depletion expense a/c 872,400
2017
Dr Depletion expense a/c 1,235,900
Cr Accumulated depletion expense a/c 1,235,900
Explanation:
a. Computation for the depletion charge for 2016 and 2017
First step is to calculate the value of the mine
Land purchase price 7,200,000
development costs 420,000
building cost 50,000
restoration cost 800,000
less: residual value of land (1,200,000)
Value of the mine $7,270,000
Second step is to calculate the annual depletion rate
Annual depletion rate = $7,270,000 / 500,000 tons
Annual depletion rate=$14.54 per ton.
Now let calculate the depletion charge for 2016 and 2017.
2016 depletion charge=$14.54*60,000 tons
2016 depletion charge=$872,400.
2017 depletion charge°$14.54*85,000 tons
2017 depletion charge=$1,235,900..
b. Preparation of the journal entry to record each year's depletion expense as determined in part a.
2016
Dr depletion expense a/c 872,400
Cr Accumulated depletion expense a/c 872,400
2017
Dr Depletion expense a/c 1,235,900
Cr Accumulated depletion expense a/c 1,235,900
Alternative journal entries:
2016
Dr Inventory 872,400
Cr Resource reserve 872,400
2017
Dr Inventory 1,235,900
Cr Resource reserve 1,235,900
a.The computation of the depletion charges for 2016 and 2017 is as follows:
Production and Depletion Charge:
Year Production Depletion Charge
2016 60,000 $872,400 (60,000 x $14.54)
2017 85,000 $1,235,900 (85,000 x $14.54)
b. Journal Entries:
December 31, 2016
Debit Depletion Expense $872,400
Credit Accumulated Depletion $872,400
To record the depletion expense for 2016.December 31, 2017
Debit Depletion Expense $1,235,900
Credit Accumulated Depletion $1,235,900
To record the depletion expense for 2017Data and Calculations:
Cost of Land = $7,200,000
Less Residual value (1,200,000)
Development & road construction = 420,000
Building = 50,000
Restoration cost = 800,000
Total cost of Mine = $7,270,000
Total estimated natural reserve = 500,000 tons
Depletion rate = $14.54 per ton ($7,270,000/500,000)
Production and Depletion Charge:
Year Production Depletion Charge
2016 60,000 $872,400 (60,000 x $14.54)
2017 85,000 $1,235,900 (85,000 x $14.54)
Analysis:
December 31, 2016
Depletion Expense $872,400 Accumulated Depletion $872,400
December 31, 2017
Depletion Expense $1,235,900 Accumulated Depletion $1,235,900
Learn more: https://brainly.com/question/14117351
The use of slang creates which type of communication barrier?
A.
language barriers
B. wrong communication channel
C.
receiver inattention
D.
inadequate feedback
E.
unclear words
Answer:
letter A just my suggestion ☺️☺️
After a major earthquake, the San Francisco Opera Company is offering zero coupon bonds to fund the needed structural repairs to its historic building. Buster Norton is considering the purchase of several of these bonds. The bonds have a face value of $2,000 and are scheduled to mature in 10 years. Similar bonds in the market have an annual YTM of 12 percent. If Mr. Norton purchases three of these bonds today, how much money will he receive 10 years from today at maturity
Answer:
Buster Norton and the Bonds of San Francisco Opera Company
If Mr. Norton purchases three of these bonds today, in 10 years from today at maturity, he will receive:
= $6,000.
Explanation:
a) Data and Calculations:
Face value of each zero coupon bond purchased = $2,000
Number of bonds purchased by Norton = 3
Value of bond investments at maturity = $6,000 ($2,000 * 3)
Maturity period of the San Francisco Opera Company bonds = 10 years
Annual Yield to Maturity of similar bonds in the market = 12%
From an online financial calculator:
Present value of bonds = $1,932 (with each as $644 ($1,932/3))
N (# of periods) 10
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) -6000
Results
PV = $1,931.84
Total Interest $4,068.16
Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $4.70 per machine-hour and the denominator level of activity is 4,900 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $23,190 and the company actually worked 4,830 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 4,850 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month
Answer:
$329 unfavorable
Explanation:
The fixed manufacturing overhead volume variance shows how much the actual production differs from the budgeted production.
Fixed manufacturing overhead volume variance is computed as;
= Actual output at budgeted rate - Budgeted fixed overhead
= (4,830 × $4.70) - ($4.70 × 4,900)
= $22,701 - $23030
= $329 unfavorable
Therefore, the overall fixed manufacturing volume variance for the month is $329 unfavorable
6. A radio station that carries news, features, and editorial opinions about
your area is which type of public? *
A) financiar
O
B) media
C) citizen-action
D) local
E) government
Answer:
B
Explanation:
Al part of communication
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations.
Requried:
Prepare journal entries to record the machine’s disposal under each separate situation: (a) it is sold for $24,500 cash; (b) it is sold for $98,000 cash; and (c) it is destroyed in a fire and the insurance company pays $35,000 cash to settle the loss claim.
Answer:
A Dec-31
Dr Cash 24,500
Dr Accumulated Depreciation 184,000
Dr Loss on Sale of Used Machine 41,100
Cr Machine 249,600
B. Dec-31
Dr Cash 98,000
Dr Accumulated Depreciation 1,84,000
Cr Profit on Sale of Used Machine 32,400
Cr Machine 249,600
C. Dec-31
Dr Cash 35,000
Dr Accumulated Depreciation 1,84,000
Dr Loss on Machine destroyed in Fire 30,600
Cr Machine 249,600
Explanation:
A. Preparation of the journal entries to record the machine’s disposal if it is sold for $24,500 cash
Dec-31
Dr Cash 24,500
Dr Accumulated Depreciation 184,000
Dr Loss on Sale of Used Machine 41,100
(249,600-24,500-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
B. Preparation of the journal entry to record the machine’s disposal if it is sold for $98,000 cash
Dec-31
Dr Cash 98,000
Dr Accumulated Depreciation 184,000
Cr Profit on Sale of Used Machine 32,400
(249,600-98,000-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
C. Preparation of the journal entry to record the machine’s disposal if it is destroyed in a fire and the insurance company pays $35,000 cash
Dec-31
Dr Cash 35,000
Dr Accumulated Depreciation 184,000
Dr Loss on Machine destroyed in Fire 30,600
(249,600-35,000-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
Working:
Cost of machine = 240,000+8,000+1,600
Cost of machine= $249,600
Depreciation (Straight-Line method) = Cost - Salvage / no of years
Depreciation= (249,600-28,800)/6 yr
Depreciation=$36,800
Accumulated Depreciation of 5 Years =($36,800*5)
Accumulated Depreciation of 5 Years =$184,000
During 2021, Terps Company issued 800,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitted at the time of any future purchase. The company estimates that 70% of the coupons will be redeemed. 350,000 coupons had been processed during 2021. The company recognizes coupon expense in the period coupons are issued. At December 31, 2021, the company should report a liability for unredeemed coupons of:
Answer:
$1,050,000
Explanation:
Calculation to determine what the company should report as a liability for unredeemed coupons
Liability for unredeemed coupons =($800,000 x 0.70 ) - $350,000 ) x $5.00
Liability for unredeemed coupons=($560,000-$350,000)×$5.00
Liability for unredeemed coupons=$210,000x $5.00
Liability for unredeemed coupons=$1,050,000
Therefore At December 31, 2021, the company should report a liability for unredeemed coupons of:$1,050,000
Current information for the Healey Company follows: Beginning raw materials inventory $ 15,900 Raw material purchases 60,700 Ending raw materials inventory 17,300 Beginning work in process inventory 23,100 Ending work in process inventory 28,700 Direct labor 43,500 Total factory overhead 30,700 All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:
Answer:
$59,300
Explanation:
Calculation to determine what Healey Company's direct materials used for the year is:
Using this formula
Direct materials=Beginning Raw Materials + Raw Materials Purchased - Ending Raw Materials
Let plug in the formula
Direct materials= $15,900 + $60,700 - $17,300 Direct materials=$59,300
Therefore Healey Company's direct materials used for the year is:$59,300
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication. Purchasing Maintenance Fabrication Assembly Operating costs $ 42,000 $ 24,000 $ 106,000 $ 72,000 No. of purchase orders 15 5 Sq. ft. of space 3,800 2,200
Answer:
The amount of Purchasing department expense to be allocated to Fabrication is $31,500.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question as follows:
Purchasing Maintenance Fabrication Assembly
Operating costs $42,000 $24,000 $106,000 $72,000
No. of purchase orders 15 5
Sq. ft. of space 3,800 2,200
The explanation of the answer is now given as follows:
Amount allocated to Fabrication = Purchasing department expense * (No. of purchase orders by Fabrication / (No. of purchase orders by Fabrication + No. of purchase orders by Assembly)) = $42,000 * (15 / (15 + 5)) = $31,500
Therefore, the amount of Purchasing department expense to be allocated to Fabrication is $31,500.
Explain one guideline that will help a speaker use or create an effective presentational aid. Provide examples.
Journalizing Sales, Sales Returns and Allowances, and Cash Receipts:
Prepare journal entries for the following transactions.
Oct. 5 Sold merchandise on account to B. Farnsby for $290 plus sales tax of 4%.
8 Sold merchandise on account to F. Preetee for $230 plus sales tax of 4%,
with 2/10, n/30 cash discount terms.
11 F. Preetee returned merchandise purchased on October 8 for $40 plus sales
tax for credit.
17 F. Preetee paid the balance due on her account.
18 B. Farnsby returned merchandise purchased on October 5 for $70 plus sales
tax for credit.
20 B. Farnsby paid the balance due on his account.
Answer:
Oct. 5
Dr Accounts Receivable (B. Farnsby) $301.6
Cr Sales Tax Payable $11.60
Cr Sales Revenue $290
Oct. 8
Dr Accounts Receivable ( F. Preetee) $239.20
Cr Sales Tax Payable $9.20
Cr Sales Revenue $230
Oct 11
Dr Sales Returns $40
Dr Sales Tax Payable $1.6
Cr To Accounts Receivable (F. Preetee) $41.6
Oct 17
Dr Cash Account $192.6
Dr Cash Discount $5
Cr Accounts Receivable (Preetee) $197.6
Oct 18
Dr Sales Returns $70
Dr Sales Tax Payable $2.80
Cr Accounts Receivable (B. Farnsby) $72.80
Oct 20
Dr Cash Account ($301.6 - $72.80) $228.8
Cr Accounts Receivable (B. Farns) $228.8
Explanation:
Preparation of the journal entries
Oct. 5
Dr Accounts Receivable (B. Farnsby) $301.6
($290+$11.60)
Cr Sales Tax Payable ($290 × 4%) $11.60
Cr Sales Revenue $290
(Being the sales revenue recorded on account)
Oct. 8
Dr Accounts Receivable ( F. Preetee) $239.20
($230+$9.20)
Cr Sales Tax Payable ($230 × 4%) $9.20
Cr Sales Revenue $230
(Being the sales revenue recorded on account)
Oct 11
Dr Sales Returns $40
Dr Sales Tax Payable $1.6
(4%*$40)
Cr To Accounts Receivable (F. Preetee) $41.6
($40+$1.6)
(Being the returned inventory is recorded)
Oct 17
Dr Cash Account $192.6
($197.6-$5)
Dr Cash Discount (($290 - $40) × 2%) $5
Cr Accounts Receivable (Preetee) $197.6
($239.20 - $41.6)
(Being receipt of cash is recorded)
Oct 18
Dr Sales Returns $70
Dr Sales Tax Payable $2.80
(4%*$70)
Cr Accounts Receivable (B. Farnsby) $72.80
($70+$2.80)
(Being the return of goods is recorded)
Oct 20
Dr Cash Account ($301.6 - $72.80) $228.8
Cr Accounts Receivable (B. Farns) $228.8
(Being receipt of cash is recorded)
_is any place where goods are produced or distributed or services areproduced
A manager needs to assign her team to work on different types of programs in the community. Any team can work on any of the programs. However, the manager feels that there is a difference in the amount of time it would take each group to finish their tasks for each program. Her estimate of the time to complete in hours is given below. Programs Business Education Surveys Beautification Group 1 32 35 15 27 Group 2 38 40 18 35 Group 3 41 42 25 38 Group 4 45 45 30 42 What is the total number of hours the teams will spend on the projects
Answer:
The total number of hours the teams will spend on the projects is:
= 548 hours.
Explanation:
a) Data and Calculations:
Estimate of time to complete each program by various groups:
Programs
Business Education Surveys Beautification Total
Group 1 32 35 15 27 109
Group 2 38 40 18 35 131
Group 3 41 42 25 38 146
Group 4 45 45 30 42 162
Total 156 162 88 142 548
b) Each group's total time is added, and each program's total time is also added. The totals are then summed to get the overall total number of hours that the teams would spend on the various projects.
There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, and the federal government did not challenge the merger. Although the merger created a single seller in this market, the existence of a monopoly may not have much impact on U.S. consumers. Which of the following statements are plausible reasons for the limited impact of the merger?
a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.
b. Although there will only be one seller of satellite radio, there are other forms of radio broadcasts available to U.S. consumers and demand for satellite radio may be relatively elastic.
c. There are very large fixed costs in providing satellite radio, and the industry may be a natural monopoly. One seller may be able to operate at lower cost than two sellers.
d. all of the above
Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.
Explanation:
A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.
The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.
Ruiz Co.'s budget includes the following credit sales for the current year: September, $145,000; October, $136,000; November, $120,000; December, $157,000. Credit sales are collected as follows: 15% in the month of sale, 50% in the first month after sale, and 35% in the second month after sale. How much cash can the company expect to collect in December as a result of current and past credit sales
Answer:
The total collection in December is "131150".
Explanation:
The given values are:
Credit sales,
September: $145,000October: $136,000November: $120,000December: $157,000Now,
Credit sales in December will be:
= [tex]157,000\times 15 \ percent[/tex]
= [tex]157000\times 0.15[/tex]
= [tex]23550[/tex]
Credit sales in November will be:
= [tex]120000\times 50 \ percent[/tex]
= [tex]120000\times 0.5[/tex]
= [tex]600000[/tex]
Credit sales in October will be:
= [tex]136000\times 35 \ percent[/tex]
= [tex]136000\times 0.35[/tex]
= [tex]47600[/tex]
hence,
The total collection will be:
= [tex]23550+60000+47600[/tex]
= [tex]131150[/tex]
The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units that must be sold in order to achieve a target pretax income of $218,000. Sales (58,000 units) $ 986,000 Costs: Direct materials $ 160,800 Direct labor 240,800 Fixed factory overhead 104,000 Variable factory overhead 150,800 Fixed marketing costs 110,800 Variable marketing costs 50,800 818,000 Pretax income $ 168,000
Answer:
See below
Explanation:
Given the above information, we need the below formula to start with.
Break even point = Fixed costs / Contribution margin
Price = $986,000 / 58,000 = $17
Variable cost = Direct material + direct labor + variable moh + variable marketing costs
= $160,800 + $240,800 + $150,800 + $50,800
= $603,200
Unitary variable cost = $603,200 / 58,000 = $10.4
Fixed costs = Fixed moh + fixed market
= $104,000 + $110,800
= $214,800
Profit = $218,000
Break even point = ($214,800 + $218,000) / ($17 - $10.4)
= $432,800 / $6.6
= 65,576 units
Prepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operations this month so all beginning balances were zero.
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Balance
Account Title Debit Credit
Cash 45,710
Accounts Receivable 1,300
Office Supplies 350
Prepaid Insurance 1,050
Furniture 9,100
Accumulated Depreciation - Furniture 100
Salaries Payable 4,600
Unearned Revenue 4,400
Common Stock 35,500
Dividends 4,600
Service Revenue 27,600
Salaries Expense 7,200
Depreciation Expense Furniture 100
Insurance Expense 350
Utilities Expense 380
Rent Expense 2,000
Supplies Expense 60
Total 72,200 72,200
Answer:
Smart Touch Learning
1. Income Statement
For the year ended December 31, 2016
Service Revenue $27,600
Salaries Expense 7,200
Depreciation Expense Furniture 100
Insurance Expense 350
Utilities Expense 380
Rent Expense 2,000
Supplies Expense 60 10,090
Net income $17,510
2. Statement of Retained Earnings
Net income $17,510
Dividends (4,600)
Retained earnings $12,910
3. Balance Sheet
As of December 31, 2016
Assets
Current Assets:
Cash 45,710
Accounts Receivable 1,300
Office Supplies 350
Prepaid Insurance 1,050 48,410
Noncurrent assets:
Furniture 9,100
Acc. Depreciation - Furniture (100) 9,000
Total assets 57,410
Liabilities and Equity
Current liabilities:
Salaries Payable 4,600
Unearned Revenue 4,400
Total liabilities 9,000
Equity:
Common Stock 35,500
Retained earnings 12,910
Total equity 48,410
Total liabilities and equity 57,410
4. Statement of Cash Flows
Operating activities:
Net income $17,510
Add Non-cash flows:
Depreciation expense 100
Working capital changes:
Accounts Receivable (1,300)
Office Supplies (350)
Prepaid Insurance (1,050)
Salaries Payable 4,600
Unearned Revenue 4,400
Net operating cash $23,910
Investing activities:
Furniture ($9,100)
Financing activities:
Common Stock 35,500
Dividends (4,600)
Net financing cash $30,900
Net cash flows $45,710
Explanation:
a) Data and Calculations:
SMART TOUCH LEARNING
Adjusted Trial Balance
December 31, 2016
Account Title Debit Credit
Cash 45,710
Accounts Receivable 1,300
Office Supplies 350
Prepaid Insurance 1,050
Furniture 9,100
Accumulated Depreciation - Furniture 100
Salaries Payable 4,600
Unearned Revenue 4,400
Common Stock 35,500
Dividends 4,600
Service Revenue 27,600
Salaries Expense 7,200
Depreciation Expense Furniture 100
Insurance Expense 350
Utilities Expense 380
Rent Expense 2,000
Supplies Expense 60
Total 72,200 72,200
