Answer:
A. The number of beehives to be maintained is 8
B. The socially effiecient number of hives is 10
Explanation:
A. In order to calculate the amount of beehives that the beekeeper will maintain assuming the beekeeper wishes to maxmise his profits we would have to use the equality of MC and the price and can be calculated as follows:
P=MC
50=10 + 5Q
Q=8
The number of beehives to be maintained is 8
B. To calculate the socially effiecient number of hives we would have to equating the marginal social benefit and marginal cost as follows:
The orchard owner must complete the pollination by artificial means, at a cost of $10 per acre of trees, therefore,
MSB=MC
50+10=10 + 5Q
Q=10
The socially effiecient number of hives is 10
Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad2. HP Tablet sales were very disappointing, and Hewlett-Packard eventually killed the product. According to the text, the primary reason for the HP Tablet’s failure was due in large part to:_____
a. poor product quality
b. not satisfying customer needs on critical factors.
c. an insignifanct point of difference
d. bad timing
Answer:
d. bad timing
Explanation:
Remember the principle of first entry advantage which says that the first entrant to a market has better advantage of gaining more market share over late entrants.
This was true in the Tablet market which saw Apple's iPad been the very first commercially sold tablet devices. Because of wrong/late timing when Apple introduced its next-generation iPad2 the HP tablet came in struggling to get a part of the already captured tablet market by Apple's iPad.
Gangsta Industries,INC produces a variety of anti-crime and safety products such as burglar alarms, smoke detectors, surveillance cameras, and specialty locks. Gangsta sells to households, businesses, and government agencies. They have found that each market group requires a different marketing strategy. Gangsta would probably benefit from departmentalization by:
Answer:
Customer type.
Explanation:
From the scenario described in the question above, Gangsta Industries would benefit from departmentalization by type of consumer.
In this type of departmentalization, the company groups its activities according to its common customer base, or the types of customers that the organization serves.
This is a strategy that enables the company to better serve a group of specific customers based on their problems, needs and preferences, which results in a more targeted and effective service.
The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form: Year 2 Year 1 Assets Cash $45,000 $53,500 Accounts receivable (net) 51,300 58,000 Inventories 147,200 135,000 Investments 0 60,000 Equipment 493,000 375,000 Accumulated depreciation—equipment (113,700) (128,000) Total Assets $622,800 $553,500 Liabilities and Stockholders' Equity Accounts payable $61,500 $42,600 Bonds payable, due Year 4 0 100,000 Common stock, $10 par 250,000 200,000 Paid-in capital in excess of par—common stock 75,000 50,000 Retained earnings 236,300 160,900 Total liabilities and stockholders' equity $622,800 $553,500 The income statement for the current year is as follows: Sales $629,700 Cost of goods sold 341,800 Gross profit $287,900 Operating expenses: Depreciation expense $24,700 Other operating expenses 75,300 Total operating expenses 100,000 Income from operations $187,900 Other income: Gain on sale of investment $5,000 Other expense: Interest expense 12,000 (7,000) Income before income tax $180,900 Income tax 64,100 Net income $116,800 Additional data for the current year are as follows: a. Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000. b. Bonds payable for $100,000 were retired by payment at their face amount. c. 5,000 shares of common stock were issued at $15 for cash. d. Cash dividends declared were paid $41,400.
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed statement using the direct method
Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year).
May 1 Prepared a company check for $350 to establish the petty cash fund.
15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $109.20 for janitorial services.
b. Paid $89.15 for miscellaneous expenses.
c. Paid postage expenses of $60.90.
d. Paid $80.01 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $26.84 remaining in the petty cashbox.
16 Prepared a company check for $200 to increase the fund to $550.
31 The petty cashier reports that $370.27 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $59.10.
g. Reimbursed the office manager for business mileage, $47.05.
h. Paid $48.58 to deliver merchandise to a customer, terms FOB destination.
31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $500.
Required:
1. Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places.)
Answer:
1-May
Dr Petty cash 350
Cr Cash 350
15-May
Dr Janitorial services 109.20
Dr Miscellaneous 89.15
Dr Postage expense 60.90
Dr Advertisement expense 80.01
Cr Cash over and short 16.1
Cr Cash 323.16
16-May
Dr Petty cash 200
Cr Cash 200
31-May
Dr Postage expense 47.05
Dr Mileage expense 38.5
Dr Delivery expense 48.58
Cr Cash 134.13
31-May
Dr Cash 50
Cr Petty cash 50
Explanation:
Kiona Co Journal entries
1-May
Dr Petty cash 350
Cr Cash 350
15-May
Dr Janitorial services 109.20
Dr Miscellaneous 89.15
Dr Postage expense 60.90
Dr Advertisment expense 80.01
Cr Cash over and short 16.1
Cr Cash 323.16
(350-26.84)
16-May
Dr Petty cash 200
Cr Cash 200
31-May
Dr Postage expense 47.05
Dr Mileage expense 38.5
Dr Delivery expense 48.58
Cr Cash 134.13
31-May
Dr Cash 50
Cr Petty cash 50
Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months.
Month Total Overhead Machine Hours
Jan. $6,288 1,980
Feb. 6,460 2,090
Mar. 5,987 1,745
Apr. 5,559 1,560
May 6,032 1,865
June 6,341 2,012
Using the high-low method, total monthly fixed overhead cost is calculated to be:________.
Answer:
$2,907
Explanation:
the formulas to calculate costs using the high-low method are:
variable cost = (highest activity cost - lowest activity cost) / (highest activity units - lowest activity units) fixed costs = highest activity cost - (variable cost per unit x highest activity units)variable cost = ($6,460 - $5,559) / (2,090 - 1,560) = $901 / 530 units = $1.70 per unit
fixed costs = $6,460 - ($1.70 x 2,090) = $6,460 - $3,553 = $2,907
Someone claiming to be an employee of the employer for whom Bernie works has been handing out flyers denigrating the employer at a local shopping mall. Bernie's employer had its security force search all of the employees' lockers to see if they had any of the flyers. Bernie can file an action against his employer under the 4th amendment if
Answer:
1 if employer is the federal government
2. If employer is the state or local government
Explanation:
Under the 4th amendment, Bernie can file an action against his employer if the employer is a state or local government and also if his employer is a federal government. Bernie can do this because the 4th amendment only applies to government employers and not private employers.
A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and the price history of the stock are summarized below. The stock pays no dividends.
Time Price Action
0 $190 Buy 3 shares
1 200 Sell 1 share
2 200 Sell 1 share
3 200 Sell 1 share
A. Calculate the time-weighted geometric average return on this "portfolio."
B. Calculate the time-weighted arithmetic average return on this portfolio.
C. Calculate the dollar-weighted average return on this portfolio.
Answer:
a. The Geometric average return is 1.72%
b. The Arithmetic average return is 1.75%
c. The Dollar weighted average return is 2.61%
Explanation:
a) In order to calculate the time-weighted geometric average return we would have to calculate first the Holding period return as follows:
Holding period return = (200 - 190) / 190 = 5.263%
Hence, Geometric average return = (1 + .05263)^(1/3) - 1 = 1.72%
b) To calculate time-weighted arithmetic average return we have to make the following calculation:
Arithmetic average return = 5.263% / 3 = 1.75%
c) To calculate time-weighted arithmetic average return we would have to make the following calculation:
Dollar weighted average return=-190*3 + 200/(1+r) + 200/(1+r)^2 + 200 / (1+r)^3 = 0
= 2.61%
Granny Carney Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Granny Carney Associates completed the following transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Granny Carney Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1
Jan. 1 Purchased office equipment, $119,000. Paid $84,000 cash and financed the remainder with a note payable. Apr. 1 Acquired land and communication equipment in a lump-sum purchase. Total cost was $320,000 paid in cash. An independent appraisal valued the land at $252,000 and the communication equipment at $84,000. Sep. 1 Sold a building that cost $570,000 (accumulated depreciation of $265,000 through December 31 of the preceding year). Granny Carney Associates received $430,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $45,000. Dec. 31.
Recorded depreciation as follows:
Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining-balance method over five years with a $4,000 residual value.
Answer:
Jan 1
Dr Office equipment 119,000
Cr Cash 84,000
Cr Note payable 35,000
April 1
Dr Land 240,000
Dr Communication equipment 80,000
Cr Cash 320,000
Sept 1
Dr Cash 430,000
Dr Accumulated depreciation -Building 265,000
Cr Building 570,000
Cr Gain on sales of building 125,000
Dec 31
Depreciation expenses 12,000
Dr Accumulated Depreciation 12,000
Explanation:
Granny Carney Associates Journal entries
Jan 1
Dr Office equipment 119,000
Cr Cash 84,000
Cr Note payable 35,000
(119,000-84,000)
April 1
Dr Land 240,000
(320,000×252,000/252,000+84,000)
Dr Communication equipment 80,000
(320,000×84,000/252,000+84,000)
Cr Cash 320,000
(80,000+240,000)
Sept 1
Dr Cash 430,000
Dr Accumulated depreciation -Building 265,000
Cr Building 570,000
Cr Gain on sales of building 125,000
Dec 31
Depreciation expenses 12,000
(80,000-0)/5×9months/12months
Dr Accumulated Depreciation 12,000
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $150,000, $375,000, and $87,500, respectively. The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
Compute the overhead rate for each activity.
Machine setups $ per setup
Machining $ per machine hour
Inspections $ per inspection
Answer:
Machine setup= $60 per setup
Machining= $15 per machine hour
Inspections= $50 per inspection
Explanation:
Giving the following information:
Estimated overhead costs:
Machine setup= 150,000
Machining= 375,000
Inspections= 87,500
The cost driver for each activity and the expected annual usage are number of setups 2,500, machine hours 25,000, and number of inspections 1,750.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 150,000/2,500= $60 per setup
Machining= 375,000/25,000= $15 per machine hour
Inspections= 87,500/1,750= $50 per inspection
The perfectly competitive firm's short-run supply curve is the Group of answer choices upward-sloping portion of its average total cost curve. horizontal portion of its marginal revenue curve. portion of its average variable cost curve that lies above the average fixed cost curve. upward-sloping portion of its marginal cost curve. portion of its marginal cost curve that lies above its average variable cost curve. Next
Answer:
Portion of its marginal cost curve that lies above its average variable cost curve.
Explanation:
This is explained to be the portion of its marginal cost curve because marginal gross benefits exceeds marginal cost, the firm can earn greater profits by increasing its output.
These profits are been maximized by choosing to supply the level of output where its marginal revenue equals its marginal cost. When this revenue is below the said marginal cost, money is lost, and consequently, it must reduce its output. Profits are however utilized when the firm chooses the level of output where its marginal revenue equals its marginal cost.
The balance sheet of Sand Sportswear reports total equity of $500,000 and $650,000 at the beginning and end of the year, respectively. The return on equity for the year is 20%. What is Sand Sportswear's net income for the year
Answer:
Sand Sportswear's net income for the year is $115,000
Explanation:
In order to calculate the net income for the year we would have to us the following formula:
Return on equity = Net income / Average total equity
Return on equity=20%
Average total equity=($500,000 + $650,000) / 2 = $575,000
Therefore, Net income=Average total equity*Return on equity
Net income=$575,000*20%
Net income=$115,000
Sand Sportswear's net income for the year is $115,000
A company reported total assets at the end of 2017 of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of 2018 of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash in 2018. Decrease of $9,000 Increase of $15,000 Increase of $9,000 Decrease of $15,000
Answer:
The correct option is increase of $9,000
Explanation:
The increase or decrease in cash in 2018 could be determined by using the formula below which is coined from the statement of cash flow:
Cash at the end of the year=cash at the beginning plus +increase in cash
cash at the end of 2018 is $44,000 whereas cash at the beginning which is the same at closing balance of 2017 is $35,000
$44,000=$35,000+increase in cash
increase in cash =$44,000-$35,000
increase in cash in 2018=$9,000
Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:
Cash $92,000
Retained Earnings $381,000
Accounts Receivable 450,000
Dividends 300,000
Inventory 370,000
Sales 8,925,000
Estimated Returns Inventory 5,000
Cost of Goods Sold 5,620,000
Office Supplies 10,000
Sales Salaries Expense 850,000
Prepaid Insurance 12,000
Advertising Expense 420,000
Office Equipment 220,000
Depreciation Expense—Store Equipment 33,000
Accumulated Depreciation—Office Equipment 58,000
Miscellaneous Selling Expense 18,000
Store Equipment 650,000
Office Salaries Expense 540,000
Accumulated Depreciation—Store Equipment 87,500
Rent Expense 48,000
Accounts Payable 38,500
Insurance Expense 24,000
Customers Refunds Payable 10,000
Depreciation Expense—Office Equipment 10,000
Salaries Payable 4,000
Office Supplies Expense 4,000
Note Payable (final payment due 2034) 140,000
Miscellaneous Administrative Exp. 6,000
Common Stock 50,000
Interest Expense 12,000
Required:
a. Prepare a multiple-step income statement.
b. Prepare a retained earnings statement.
Answer:
Net Profit 1345,000
Retained Earnings $ 1426,000
Explanation:
The multi step income statement shows the sections of the income statement separately such as the operating expenses and non operating expenses .
Kanpur Co.
Multi step Income Statement
For year ended June 30, 20Y7:
Sales 8,925,000
Cost of Goods Sold 5,620,000
Estimated Returns Inventory (5,000)
Adjusted Cost OF Goods Sold 5,615,000
Gross Profit $ 3310,000
Less Operating Expenses
Rent Expense 48,000
Selling And Administrative Expenses
Office Supplies Expense 4,000
Sales Salaries Expense 850,000
Miscellaneous Selling Expense 18,000
Depreciation Expense—Store Equipment 33,000
Office Salaries Expense 540,000
Depreciation Expense—Office Equipment 10,000
Advertising Expense 420,000
Miscellaneous Administrative Exp. 6,000
Total Operating Expenses 1881,000
Operating Income 1381,000
Other Expense
Insurance Expense 24,000
Interest Expense 12,000
Total Non Operating Expenses 36,000
Net Profit 1345,000
Kanpur Co.
Statement of Retained Earnings
For year ended June 30, 20Y7:
Retained Earnings $381,000
Add Net Profits 1345,000
Less Dividends 300,000
Retained Earnings For year ended June 30, 20Y7 $ 1426,000
The payback period provides information to managers that can be used to help a.control the risks associated with the uncertainty of future cash flows. b.minimize the impact of an investment on a firm's liquidity problems. c.control the effect of the investment on performance measures. d.control the risk of obsolescence. e.All of these choices are correct.
Answer:
e. All of these choices are correct.
Explanation:
The payback period is the time that takes an investment to reach the break-even point. In other words, it is the amount of time that it takes an investor to pay back for the investment, hence the name.
The payback period results from dividing the amount of investment by the estimated cash flow from the investment.
During this period, the manager of an investment can carry out all of the activities listed in the question.
Job order cost accounting for a service company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 175 hours of professional (lawyer) time at a rate of $150 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $12,500 14. Charged 260 hours of professional time for the Obsidian trial at a rate of $185 per hour 18. Received invoice from consultants Wadsley and Harden for $30,000 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $62 per professional hour charged to the Obsidian case 31. Paid administrative and support salaries of $28,500 for the month 31. Used office supplies for the month, $4,000 31. Paid professional salaries of $74,350 for the month 31. Billed Obsidian $172,500 for successful defense of the case a. Provide the journal entries for each of these transactions.b. How much office overhead is over or underapplied?
Answer:
Explanation:
the problem requires to be done in a tabular form so had to pen it down in other to understand better. The picture attached shows the whole solution
Toward the end of the selection process, Eleanor is one of two final candidates. She meets with the company's executive vice-president in her third interview, and they spend most of the time discussing Eleanor's experiences working in different corporate cultures. This interview is likely a structured interview.A. TrueB. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the term of "structured interview" refers to the type of interview that is previously planned in order to already had the questions by the time the person comes to the interview, and therefore that it does not implicates to be doing questions at random. Moreover, it is used in order to gain time and to obtain the major amount of information about the person that the interviewer wants. That is why, that in this case is likely an structured interview due to the fact that the employeer already knew what he wanted to know about the person and therefore he is focus on having that information, in this case, previous experience work.
On January 1, Year 1, a company issues $39.1 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.
If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
A. If the market rate is 9%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
If the market rate is 10%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Bond Characteristics AmountFace amount Interest payment Market interest rate Periods to maturity Issue price
Answer:
$42,969,487
$ 39,100,000
$ 35,745,399
Explanation:
The price of the bond using the pv formula in excel is given thus:
=-pv(rate,nper,pmt,fv)
rate is the market rate divided by 2 since interest is payable twice a year
nper is 20year multiplied by 2 which gives 40
pmt is the semiannual coupon=$39,100,000*9%*6/12=$1,759,500.00
fv is the face value of $39,100,000
market rate of 8%
=-pv(8%/2,40,1759500,39100000)=$42,969,487
market rate of 9%
=-pv(9%/2,40,1759500,39100000)=$ 39,100,000
market rate of 10%
=-pv(10%/2,40,1759500,39100000)=$35,745,399
Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remaining $0.40. The marginal propensity to consume (MPC) for this economy is0.6 , and the spending multiplier for this economy is . Suppose the government in this economy decides to increase government purchases by $400 billion. The increase in government purchases will lead to an increase in income, generating an initial change in consumption equal to . This increases income yet again, causing a second change in consumption equal to . The total change in demand resulting from the initial change in government spending is .
Answer:
The total change in demand resulting from the initial change in government spending is $1,000 billion
Explanation:
Marginal propensity to consume (MPC) = As with every additional increase in income, consumption increases by 0.60.
MPC = change in Consumption / Change in Income = [tex]\Delta C/\Delta Y[/tex]
[tex]\Delta C/\Delta Y[/tex] = 0.60 / 1
MPC = 0.60.
Spending or Expenditure Multiplier = 1 ÷ (1 - MPC)
Spending Multiplier = 1 ÷ (1 - 0.6) = 1 ÷ 0.4 = 2.5.
The consumption will increase by MPC, with 1 dollar increased, consumption increased by 0.60
Therefore, with $400 billion increase, Consumption will increase by 0.60 × 400 billion = $240 billion.
This increases income, causing a change in consumption at second times equal $240 billion × 0.6 = $144 billion.
The total change in income by this increment in government spending equals as:
Change in Demand = Multiplier × change in G
Change in Demand= $400 billion × 2.5 = $1,000 billion.
The total change in demand resulting from the initial change in government spending is $1,000 billion
Marginal propensity to consume = change in Consumption / Change in Income
Marginal propensity to consume = 0.60 / 1
Marginal propensity to consume = 0.60
Spending Multiplier = 1 / (1 - MPC)
Spending Multiplier = 1 / (1 - 0.6)
Spending Multiplier = 1 / 0.4
Spending Multiplier = 2.5.
Consumption will increase = 0.60 × 400 billion
Consumption will increase = $240 billion.
Consumption will increase second time = $240 billion × 0.6
Consumption will increase second time = $144 billion.
Change in Demand = Multiplier × Spending Multiplier
Change in Demand = $400 billion × 2.5
Change in Demand = $1,000 billion
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Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock issue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. Which of the following is likely to occur if the company goes ahead with the stock issue?
a. The ROA will decline.
b. Taxable income will decrease.
c. The tax bill will increase.
d. Net income will decrease.
e. The times interest earned ratio will decrease.
Answer:
Option c. is correct
Explanation:
A stock is an investment that denotes an ownership share in a company. Purchasing a company’s stock means purchasing a small piece of that company that denotes a share.
In the given question, if the company goes ahead with the stock issue that would not affect total assets: the interest rate Taggart pays, EBIT, or the tax rate then the tax bill will increase.
Before closing the office for the day, Lisa took a phone call from a corporate customer who wanted to make a reservation for three nights at Wildwood Inn. The total cost came to $473.00. The customer asked Lisa to charge the total amount to the company's account. Which T-Account or T-Accounts listed below correctly show how a sale on account should be recorded?
Answer:
A sale on account would be recorded with the following T-Accounts:
Sales Revenue - increases, so the amount is credited.
Dr. Cr.
$473.00
Accounts Receivable - is an asset, and increases, so the amount is debited.
Dr. Cr.
$473.00
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of the assemblies, the XOminus01, has an estimated annual demand of 12 comma 000 units. The cost to place an order for these assemblies is $650, and the holding cost for each assembly unit is approximately $30 per year. The company has 260 workdays per year.
Required:
What are the annual inventory holding costs if Talbot orders using the EOQ quantity?
Answer:
$1,975 per year
Explanation:
The first step is to calculate Economic order quantity using the following formula:
Economic Order Quantity = √2DO / H
Here
A is Annual Demand which is 12,000 Units.
O is Ordering Cost per order $650 per order.
H is Holding or Carrying Cost per unit per year is $30 per unit per year.
By putting values, we have:
Economic Order Quantity = √(2 * 12,000 * $650) / 30 = 131.66 units
Now annual inventory holding costs can be calculated using the following formula:
Inventory Holding Cost = Average Inventory * Holding Cost
Here,
Average Inventory = EOQ /2 = 131.66 / 2 = 66 units
By putting values we have:
Annual Inventory Holding Cost = 66 * 20 = $1,975 per year
The gross earnings of the factory workers for Oriole Company during the month of January are $72,000. Of the total accumulated cost of factory labor, 84% is related to direct labor and 16% is attributable to indirect labor.(a)Record the factory labor costs for the month of January.(b)Assign factory labor to production.
Answer:
a.
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
b.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
Explanation:
The factory labor cost is a manufacturing cost and is included in product valuation.
(a)Record the factory labor costs
Here we have to recognize the expense incurred during the period and the liability since settlement of amount owing to workers has not yet been made
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
(b)Assign factory labor to production
Here we accumulate the cost to the Work In Process of manufacture taking not of cost classification.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
Elaborate on two instances at the workplace where "silence is golden " may be applicable.
Answer:
It could be applicable when there is a negative compliment: When this happens it is best and advisable to be silent about it and continue with the work activities. Negative compliments are usually hurtful to the recipients and tempers may flare up if words are exchanged.
It could also be applicable when important informations are passed during meetings: Some meetings at work requires dissemination of information with various steps in accomplishing them. If an individual isn’t silent and pays less attention, a step may be missed and will make the worker being unable to perform the task.
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. Harry Starbucks Dunkin Donuts Sally Starbucks H:1,S:1 H:0,S:0 Dunkin Donuts H:0,S:0 H:1,S:1 What is Harry's best strategy?
Answer:
Harry has no best strategy
Explanation:
Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.
Dominant strategy is the best option for a player regardless of what the other player is playing.
Nash equilibrium is the best outcome for a player where no player has an incentive to change their decisions.
If Harry and Sally goes to Dunkin Donuts, they both have a payoff of 1. If they go to different restaurants they have a payoff of zero. If they both go to Starbucks, they have a payoff of 1. Harry doesn't have a clear best strategy. So , he doesn't have a best strategy.
I hope my answer helps you
g Depreciation refers to which one of the following? The amount of money that is lost over a period when services are underutilized. An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that requires the use of cash deducted from the operations revenue. The amount of money still owed on a tangible asset, minus the amount of expenses spent to facilitate the utilization of the asset (utilities, personnel, enabling assets, etc.). An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.
Answer:
The answer is D
Explanation:
Depreciation is best described as An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.
Depreciation reduces the value of an asset and it reduces it over the life span of an asset. Depreciation is a non cash reduction. Depreciation tells us how much the value of an asset has reduced.
The formula is (cost of the asset - any residual value) ÷ the number of useful life span
In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 305 pints per week. The lead time is 5 weeks. The standard deviation of weekly demand is 14 pints. Refer to the standard normal table for z-values.
a. The standard deviation of demand during the 5-week lead time is ______ pints. (Enter your response rounded to the nearest whole number.)
b. The average demand during the 6-week lead time is _____pints. (Enter your response as aninteger.)
c. The reorder point that results in acycle-service level of 96 percent is _____pints. (Enter your response rounded to the nearest whole number.)
Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359
0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754
0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141
0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517
0.4 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879
0.5 0.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224
0.6 0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7518 0.7549
0.7 0.7580 0.7612 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 0.7823 0.7852
0.8 0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133
Answer: a. 31.304. b. 1525. c. 1589.17
Explanation:
Lead time = 5 weeks
Standard deviation of weekly demand = 14 pints
a. ✓L × Standard deviation Weekly
= ✓5 × 14
= 2.236 × 14
= 31.304
b. Average demand during the 5-week lead time will be:
= Leadtime × weekly demand
= 5 × 305
= 1525
c. Note that the Z value at 96% service level is 2.05
R=dL+z*sd*sqrt(L)= (305 × 5)+ (2.05 × 14 × ✓5)
= 1525 + 64.17
= 1589.17
Barbara owns a manufacturing plant with four facilities (North, South, East, and West) in the state of Indiana. The workers at one of those facilities, North, have just decided to join a union. The union negotiates with Barbara and receives average wages that are 5% higher than the workers at the South, East, and West facilities. This wage differential is a likely example of:
Answer:
Union power
Explanation:
The difference in wages is as a result of Union power because the North now belongs to a labor union that protects their interest. A labor union is an organization that plays the role of an intermediary between their members and their employers. The workers in the North through the union are able to negotiate for better wages. Through collective bargaining, the union gives workers In the North the power to request for better work pay than workers in the east, West and South facilities.
Assume the company is considering investing in a new machine that will increase its fixed costs by $36,000 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine
Answer:
Find below complete question:
Hudson Co. reports the contribution margin income statement for 2017. Assume sales remain constant at 10.000 units.
HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (10,000 units at $244 each) $2,440,000
Variable costs (10,000 units at $195 each) $1,950,000
Contribution margin $490,000
Fixed costs $327,600
Pretax Income $162,400
Assume the company is considering investing in a new machine that will increase its fixed costs by $36,000 per year and decrease its variable costs by $10 per unit.
Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine
The new pretax income is $226,400 compared to 2018 $162,400,which implies that investing in the new machine is viable
Explanation:
The forecast contribution margin income statement for 2018 is prepared below with fixed costs of $36,000 added to the previous cost of $327,600 while variable cost per unit drops by $10 to $185 per unit
Hudson Co,forecast contribution margin income statement for 2018
Sales (10,000*$244) $2,440,000
variable cost(10,000*$185) ($1,850,000)
Contribution margin $590,000
fixed costs( $327,600+$36,000) ($ 363,600)
Pretax income $ 226,400
The classified balance sheet for a company reported current assets of $1,754,244, total liabilities of $817,540, common stock of $1,180,000, and retained earnings of $148,260. The current ratio was 2.7. What is the total amount of noncurrent assets?
Answer:
$391,556
Explanation:
The values given are:
Total liabilities= $817,540
Common stock= $1,180,000
Retained earnings= $148,260
Current assets= $1,754,244
Therefore the non-current assets can be calculated as follows
Total liabilities+Common stock+Retained earnings-Current assets
$817,540+$1,180,000+$148,260-$1,754,244
= $2,145,800-$1,754,244
= $391,556
Hence the total amount of non-current assets is $391,556
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one machine. The cartridge holder (which you hold when you use the pen)is manufactured on another machine. Monthly capacities and production levels are as follows:
Machine 1 (Cartridge) Machine 2 (Holders)
Monthly capacity 1,000,000 800,000
Monthly production 800,000 800,000
The company could sell 1,000,000 pens per month. The units (cartridge inside of holder) sell for $10.40 each and have a variable cost of $4.10 each. Fixed costs are $4,200,000 per month.
Required:
a. Is there a bottleneck at Playful Pens on Machine 1 or Machine 2?
A. Machine 1
B. Machine 2
b. Playful Pens's production supervisors state they could increase machine 2's capacity by 200,000 per month by producing holders on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $1.10 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $820,000 per month.
b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)
Differential Revenues
Differntial costs:
Variable
Fixed
b-2. Should Playful Pens produce holders on the weekend?
Yes
No
c. Independent of the situation in requirement (b), Playful Pens could expand the capability of machine 2 by adding additional workers to perform ongoing maintenance. This would increase its capacity by 100,000 holders per month. This would not affect sales price or fixed costs, but would increase variable cost to $4.62 per unit for all units produced.
c-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)
Differential revenues
Differential costs:
Variable cost increase on current production:
Variable cost on new production:
c-2. Should Playful Pens expand Machine 2's capability by adding these additional workers?
Yes
No
Answer:
a) B. Machine 2
b) $220,000
b-2) Yes , positive differential profit.
c-1) $162,000
c-2) Yes , positive differential profit.
Explanation:
B) Differential revenues = $10.40 x 200,000 = $2,080,000
Differential costs:
Variable cost on new production = $5.20 x 200,000 = $1,040,000
Fixed costs = $820,000
differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000
c) Differential revenues = $10.40 x 100,000 = $1,040,000
Differential costs:
Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000
Variable cost on new production = $4.62 x 100,000 = $462,000
differential profit = $1,040,000 - $878,000 = $162,000