Answer:
Answer:
Amount of overhead applied is $270
correct option is (a) $270
Explanation:
given data
overhead cost = $105,000
overheat rate = $3 per machine hour
manufacturing overhead = 70000 machine hour
required = 60 machine hours
to find out
The amount of overhead applied to Job P 233 is closest to
solution
we find manufacturing overhead rate here that is
manufacturing overhead rate =
put here value
manufacturing overhead rate =
manufacturing overhead rate = 1.5 per machine hour
and
Total manufacturing overhead rate will be for overheat rate $3
Total manufacturing overhead rate = (3 + 1.5) = $4.5 per machine hour
so we can say that Amount of overhead is job P 233 is
Amount of overhead applied = 60 × $4.5 = 270
so here correct option is (a) $270
Explanation:
Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow:
Sour Cream Ice Cream Yogurt Butter Total
Units sold 2,000 500 499 200 3,100
Revenue 10,000 20,000 10,000 20,000 60,000
Variable departmental costs 6,000 13,000 4,200 4,800 28,000
Fixed costs 7,000 2,000 3,000 7,000 19,000
Net income (loss) (3,000) 5,000 2,800 8,200 13,000
Required:
Prepare an incremental analysis of the effect of dropping the sour cream product line.
Answer:
Dropping Sour would lead to a net loss of $(1,900)
Explanation:
To determine whether or not it will be profitable to drop a loss making product, we compare the savings in fixed cost to the lost contribution from dropping it.
It is noteworthy that only the fixed cost attributed to the product would be saved should it be discontinued.
The incremental analysis is done as follows:
Direct fixed cost of Sour = 30%× 7,000 = 2,100
Lost contribution = sales value - variable cost = 10,000-6,000= 4,000
$
Lost contribution (4,000)
Savings in fixed cost 2,100
Net loss in contribution (1,900)
Dropping Sour would lead to a net loss of $(1,900)
Eclipse Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Eclipse:
Assembly Department $280,000
Testing Department 800,000
Total $1,080,000
Direct machine hours were estimated as follows:
Assembly Department 4,000 hours
Testing Department 5,000
Total 9,000 hours
In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:
Commercial Residential
Assembly Department 1.5 dmh 1.0 dmh
Testing Department 3.0 2.0
Total machine hours per unit 4.5 dmh 3.0 dmh
Required:
a. Determine the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method, using direct machine hours as the allocation base.
b. Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department.
Answer:
A. Commercial 540
Residential 360
B. Commercial 585
Residential 390
Explanation:
a) Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors .
First step is to calculate the Plantwide overhead rate using this formula
Plantwide overhead rate =Estimated overhead /Esimated machine hours
Let plug in the formula
Plantwide overhead rate = 1080000/9000
Plantwide overhead rate = $ 120 per MH
Now let Determine the per-unit factory overhead allocated to the commercial and residential motors
Using this formula
Per -unit factory overhead allocated=Actual MH per unit *Plantwide overhead rate
Let plug in the formula
Per -unit factory overhead allocated to COMMERCIAL=4.5 dmh*120
Per -unit factory overhead allocated to COMMERCIAL=540
Per -unit factory overhead allocated to RESIDENTIAL=3.0 dmh*120
Per -unit factory overhead allocated to RESIDENTIAL=360
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the single plantwide factory overhead rate method will be:
Commercial 540
Residential 360
b. Calculation to Determine the per-unit factory overhead allocated to the commercial and residential motors
First step is to calculate the Departmental overhead rate
ASSEMBLY TESTING
Estimated overhead 280,000 800,000
÷Estimated machine hours each department 4,000 5,000
=Departmental overhead rate 70 160
Now calculation the per-unit factory overhead allocated to the commercial and residential motors
COMMERCIAL RESIDENTIAL
Assembly 1.5 dmh*70=105 1.0 dmh*70=70
Testing 3.0*160= 480 2.0*160= 320
Per -unit factory overhead allocated 585 390
(105+480=585)
(70+320=390)
Therefore the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method will be:
Commercial 585
Residential 390
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $16,500.
March 5 Obtain $8,100 loan from the bank by signing a note.
March 10 Purchase construction equipment for $20,500 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $17,100 on account.
March 27 Receive $12,100 cash on account from March 22 services.
March 28 Pay salaries for the current month of $5,100.
Required:
Record each transaction.
Answer:
Mar. 1
Dr Cash $16,500
Cr Common stock $16,500
Mar. 5
Dr Cash $8,100
Cr Notes payable $8,100
Mar. 10
Dr Equipment $20,500
Cr Cash $20,500
Mar. 15
Dr Advertising expense .$1,100
Cr Cash $1,100
Mar. 22
Dr Accounts receivable
$17,100
Cr Service revenue $17,100
Mar. 27
Dr Cash $12,100
Cr Accounts receivable $12,100
Mar. 28
Dr Salaries expense $5,100
Cr Cash $5,100
Explanation:
Preparation of the journal entries
Mar. 1
Dr Cash $16,500
Cr Common stock $16,500
Mar. 5
Dr Cash $8,100
Cr Notes payable $8,100
Mar. 10
Dr Equipment $20,500
Cr Cash $20,500
Mar. 15
Dr Advertising expense .$1,100
Cr Cash $1,100
Mar. 22
Dr Accounts receivable
$17,100
Cr Service revenue $17,100
Mar. 27
Dr Cash $12,100
Cr Accounts receivable $12,100
Mar. 28
Dr Salaries expense $5,100
Cr Cash $5,100
Tax Increment Financing zones encourage economic development by Group of answer choices reducing or eliminating state or local taxes paid by businesses locating in the zone. reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone. cutting the interest rate on private debt issued on business investment increments in the zone. providing financing to help pay additional taxes when business expands in an impacted area. All of the above. None of the above.
Answer:
Tax Increment Financing zones encourage economic development by
reserving taxes generated by a new tax base in the zone for infrastructure or other public services within the zone.
Explanation:
A Tax Increment Financing (TIF) zone is an economic development tool that reserves the property taxes within the zone for a period of time. Thereafter, the accumulated taxes are used to finance approved infrastructure and development improvement projects in the TIF zone through developer refunds. As an economic tool, a TIF zone encourages continued development of an area by attracting investors to the location.
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income for the current year
Answer:
the bank net interest income for the current year is $140,000
Explanation:
The computation of the bank net interest income for the current year is shown below:
= (Interest earning assets × Interest rate earned)-(Interest bearing liabilities × Interest rate rate)
= $5,000,000 × 6% - $4,000,000 × 4%
=$300,000 - $160,000
= $140,000
Hence, the bank net interest income for the current year is $140,000
Purchase Transactions and T AccountsUsing T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Post the transactions in the given order.
Purchase of merchandise with cash.
a. Merchandise is purchased for cash, $1,500.
b. Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash.
Answer:
Dr Cash a/c Cr
Purchases(a) $1,500
Purchases(b) $2,975
Dr Purchases a/c Cr
Cash(a) $1,500
Cash(b) $2,975
The above are the entries in the Cash and Purchases accounts.
The purchases are credited to the cash account and debited to the purchases.
b. Merchandise = 3,500 * ( 1 - 15% discount)
= $2,975
Reddy Corporation has collected the following data for the month of June: Actual total factory overhead incurred $61,150 Budgeted fixed factory overhead costs $40,700 Activity level, in direct labor hours 14,800 Actual direct labor hours 17,800 Standard hours for output this period 16,800 Total factory overhead rate $4.30 What is the variable overhead efficiency variance
Answer:
Variable overhead efficiency variance = $8,600 favorable
Explanation:
Variable overhead efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours for same multiplied by the standard variable overhead rate
Variable overhead efficiency variance is determined as follows:
Hours
standard hours for actual output 16,800
Actual hours 14,800
Efficiency variance 2,000 favorable
× standard variable OH rate × $4.30
Variable overhead efficiency variance ($) $8,600 favorable
Type the correct answer in the box. Spell all words correctly
While moving data into a data warehouse, Ivan and his team discover duplicate records in the transactional database. Which process in the
staging area is responsible for removing these duplicate records?
The data ______
process removes the duplicate data in the staging area.
Answer:
The data CLEANING process
Explanation:
The data cleaning process is used to remove the duplicate data from a data set.
What is data cleaning?The process of repairing or removing incorrect, corrupted, incorrectly formatted, duplicate, or incomplete data from a dataset is known as data cleaning.
Duplicate data is created during data collection. While combining data sets from multiple places, or when data is received from clients or multiple departments, duplicate data can be created.
The cleaning process in the staging area will remove duplicate records.
To learn more about data cleaning, click here: https://brainly.com/question/13085801
#SPJ5
Cullumber Company issued $445,000, 15-year, 8% bonds at 96. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017
Answer:
Dr Cash $427,200
Dr Discount on Bonds payable $17,800
Cr Bondss payable $445,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on January 1, 2022
Dr Cash $427,200
($445,000 × 0.96)
Dr Discount on Bonds payable $17,800
($445,000-$427,200)
Cr Bonds payable $445,000
(Being to record the sale of the bond )
Ballard Company uses the perpetual inventory system. The company purchased $10,000 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $450 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $19,000 cash. What is the amount of gross margin that resulted from these business events
Answer: $8750
Explanation:
The amount of gross margin that resulted from these business events will be calculated as:
Purchase = $10000
Less: Purchase discount = $10000 × 2% = $200
Add: Freight paid = $450
Total purchase = $10250
Gross margin = Sales - Total Purchases
= $19000 - $10250
= $8750
If the denominator activity is less than the standard hours allowed for the actual output, one would expect that: Multiple Choice the variable overhead efficiency variance would be unfavorable. the fixed overhead volume variance would be favorable. the fixed overhead budget variance would be unfavorable. the variable overhead efficiency variance would be favorable.
Answer:
The variable overhead efficiency variance would be 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
A favourable variance would occurs when actual hours is less than the standard hours allowed for the actual output.
The variance in Dollars is the difference in actual hours and standard hours for actual output multiplied by the standard variable overhead rate
Swifty Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $136,200 Allowance for Doubtful Accounts $3,670 Sales Revenue (all on credit) 813,600 Sales Returns and Allowances 54,790 Prepare the journal entry to record bad debt expense assuming Swifty Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,360 debit balance.
Answer:
(a) Debit Bad Debt Expense for $1,778; and Credit Allowance for Doubtful Accounts for $1,778.
(b) Debit Bad Debt Expense for $6,808; and Credit Allowance for Doubtful Accounts for $6,808.
Explanation:
(a) Company estimates bad debts at 4% of accounts receivable
Estimated bad debt = Accounts Receivable * 4% of accounts receivable = $136,200 * 4% = $5,448
Bad Debt Expense = Estimated bad debt - Allowance for Doubtful Accounts = $5,448 - $3,670 = 1,778
The journal entries will now look as follows:
Particulars Debit ($) Credit ($)
Bad Debt Expense 1,778
Allowance for Doubtful Accounts 1,778
(To record bad debt expense.)
(b) Company estimates bad debts at 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,360 debit balance.
Bad debt expense = (Accounts Receivable * 4% of accounts receivable) + Allowance for Doubtful Accounts debit balance = ($136,200 * 4%) + $1,360 = $6,808
The journal entries will now look as follows:
Particulars Debit ($) Credit ($)
Bad Debt Expense 6,808
Allowance for Doubtful Accounts 6,808
(To record bad debt expense.)
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000.
Required:
Prepare a flexible budget for Western.
Answer:
Operating profit = $982,500
Explanation:
Given:
Sales = 225,000 units at $9 each
Variable per unit = $3.75
Fixed cost = $225,000
Actual production and actual sales = 230,000 units
Selling price = $9.10 per unit
Variable costs = $4.50 per unit
Actual fixed costs $225,000
Find:
Flexible budget
Computation:
Flexible budget
Particular Amount
Sales revenue (230,000 x $9) $2,070,000
Less: Variable (230,000 x $3.75) $862,500
Contribution margin $1,207,500
Less: Fixed cost 225,000
Operating profit $982,500
Jackson Company has two service departments (S1 and S2) and two producing departments (A and B). Department S1 serves Departments S2, A, and B in the following percentages, respectively: 15%, 25%, and 60%. Department S2 serves Departments S1, A, and B in the following percentages, respectively: 0%, 70%, and 30%. Direct department costs for S1, S2, A, and B are $200,000, $16,000, $210,000, and $185,000, respectively. If Jackson uses the step method of allocating service department costs beginning with Department S1, what is the total amount of cost that will be allocated from S2 to Department A?
Answer:
The total amount of cost that will be allocated from S2 to Department A is $32,200.
Explanation:
This can be calculated as follows:
Cost allocated from Department S1 to Department S2 = Direct department costs of Department S1 * Percentage of service to Department S2 = $200,000 * 15% = $30,000
Total Direct department costs for S2 = Direct department costs for S2 + Cost allocated from Department S1 to Department S2 = $16,000 + $30,000 = $46,000
Cost allocated from Department S2 to Department SA = Total direct department costs for S2 * Percentage of service to Department A = $46,000 * 70% = $32,200
Therefore, the total amount of cost that will be allocated from S2 to Department A is $32,200.
An effective performance management system is comprised of four steps: defining performance, monitoring and evaluating performance, reviewing performance, and providing consequences. This activity is important because, when administered properly, an effective performance management system is a powerful tool in your managerial repertoire for enhancing individual, group, and organizational effectiveness.
The goal of this exercise is to challenge your knowledge of the steps in the performance management process. cuook. Match each person to the step of performance management that his or her description best exemplifles.
1. Define Performance
2. Review Performance
3. Provide Consequences
4. Monitor and Evaluate Performance
Match eech of the options above to the items below.
A. Aileen and her supervisor discuss how the market is looking and how much of an increase sales she believes is realistic and attainable for this year.
B. Quentin has a discussion with his supervisor about how sales are going and whether or not it looks like he will make this year's budgeted sales figures.
C. While Vonda's sales are strong, they do not appear to be in line with what she and her supervisor anticipated, so they are meeting to discuss how she can boost her sales In time to meet her goals.
D. Yang receives his bonus check when he beats his sales goals by 10%.
Answer:
Marching items with Performance Management Steps:
Item Performance Management Step
A. Define Performance
B. Review Performance
C. Monitor and Evaluate Performance
D. Provide Consequences
Explanation:
1. Define Performance: This is the stage when performance objectives and goals are clearly defined and agreed upon. The best performance goals are SMART goals, which are specific, measurable, attainable, realistic, and time-bound.
2. Review Performance: This is the stage when a goal is reviewed in the light of operational realities.
3. Provide Consequences: This stage issues the reward and punishment for either good or bad performance.
4. Monitor and Evaluate Performance: This stage enables realistic goals to be reset amidst performance uncertainty.
A student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposits the $10,000 today and can earn 12% on both the $10,000 and his earnings in a mutual fund his grandfather recommends
Answer:
Annual deposit= $2,984.69
Explanation:
First, we need to calculate the Future Value of the lumpsum investment using the following formula:
FV= PV*(1+i)^n
FV= 10,000*(1.12^4)
FV= $15,735.19
Now, the annual deposit to cover the difference:
Difference= 30,000 - 15,735.19= 14,264.81
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (14,264.81*0.12) / [(1.12^4) - 1]
A= $2,984.69
Required information Skip to question [The following information applies to the questions displayed below.] The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,400 Accounts Receivable 134,000 Prepaid Rent 4,400 Supplies 22,000 Equipment 240,000 Accumulated Depreciation $ 119,000 Accounts Payable 10,400 Salaries Payable 9,400 Interest Payable 3,400 Notes Payable (due in two years) 24,000 Common Stock 140,000 Retained Earnings 44,000 Service Revenue 340,000 Salaries Expense 240,000 Rent Expense 12,000 Depreciation Expense 24,000 Interest Expense 3,400 Totals $ 690,200 $ 690,200 Required: 1. Prepare an income statement for the year ended December 31, 2021.
Answer and Explanation:
The preparation of the income statement is presented below:
Service Revenue 340,000
Less:
Salaries Expense 240,000
Rent Expense 12,000
Depreciation Expense 24,000
Interest Expense 3,400
Net income $60,600
Hence, we simply deduct the expenses from the service revenue so that we get the net income
Assume that Cane normally produces and sells 62,000 Betas and 82,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 17,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line
Answer:
Please find the complete question in the attachment.
Explanation:
[tex]\beta[/tex] the margin of contribution unit[tex]= 130-25-22-17-14 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =52[/tex]
[tex]\alpha[/tex] Margin Contribution Unit [tex]= 90-10-21-7-10\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 42[/tex]
8
Contribution losses [tex]=62000\times 42 \ \ \ \ \ \ \ \ \ \ \ \ = -2604000[/tex]
Fixed cost avoidable [tex]=102000\times 20 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 2040000[/tex]
The margin of Alpha contributions [tex]=17000\times 52 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =884000[/tex]
Fiscal benefits (disadvantage)[tex]= 320000[/tex]
Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.25 per share at the end of 2019. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)
Answer:
Value of stock = $47.99
Explanation:
The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
Year Present Value
1 1.25× 1.15^1 × 1.095^(-1) =1.31
2 1.25× 1.15^2 × 1.095^(-2) = 1.38
3. 1.25× 1.15^3 × 1.095^(-3)= 1.45
Present value of Dividend in Year 4 and beyond
This will be done in two steps
Step 1
PV in year 3 terms
= Dividend in year 4× (1.06)/(0.095-0.06)
1.25× 1.15^3 × 1.06/(0.095-0.06)=57.57
PV in year 0 terms =
PV in year 3 × 1.095^(-3)
=57.5759 × 1.095^(-3)= 43.852
Value of stock = 1.3 + 1.38 + 1.45 + 43.852= $47.99
Value of stock = $47.99
which activity is an economic activity?
a / watching tv
b / reading a book
c / playing video games
d / helping a friends decorate for a party
e / selling vegetables and fruits
Answer:
e
Explanation:
by buying goods you are stimulating the economy
1. Ownership of the 1,000 shares outstanding are evenly divided among 80 shareholders. The shareholders are 78 individuals, 10 of whom are married to each other, and two estates. Permitted 2. A domestic corporation elects S status on April 15. Retroactively effective 3. Articles of incorporation authorize 800 shares of voting common stock, 200 shares of nonvoting preferred, and no other shares. Not permitted 4. A domestic corporation elects S status on March 3. When is the earliest effective date
Answer: hello the options to your question is missing attached below are the missing options
permittedsubsequently effectivepermittedRetroactively effectiveExplanation:
1) permitted ; because the ownership is divided into less than 100 shareholders at the time .
2) subsequently effective ; Because April 15 is after 2.5 months of the beginning of the Financial year
3) Permitted : Because S status can issue voting and Non-voting stock
4) Retroactively effective : The earliest effective date is within 2.5 months of the Financial year
Exchange rate pass-through may be defined as: the degree to which the prices of imported and exported goods change as a result of exchange rate changes. the bid/ask spread on currency exchange rate transactions. the practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime. the PPP of lesser-developed countries.
Answer:
the degree to which the prices of imported and exported goods change as a result of exchange rate changes.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
Learn more about Transportation, here:
https://brainly.com/question/29851765
#SPJ6
On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $6,000,000. The company expects to extract 1,000,000 tons of coal during a four-year period. During 2021, 250,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory?
Answer:
The Loadstone Mining Company
1. The depletion for 2021 is:
= $1,500,000.
2. Depletion is considered part of the product cost and included in the cost of inventory.
Explanation:
a) Cost of rights to a coal mine = $6,000,000
Expected tons of coal to be extracted = 1,000,000 tons
Duration of the coal mine = 4 years
Depletion rate per ton = $6 ($6,000,000/1,000,000)
2021 depletion = $6 * 250,000 = $1,500,000
b) Depletion is like depreciation. While depreciation spreads the cost of a tangible asset over its estimated useful life, depletion measures the cost of extracting natural resources based on the number of units extracted vis-a-vis the total quantity available. Amortization is another related term but relates to intangible assets. It is the deduction of the value of an intangible asset over its useful life.
Neap, spring, high, and low are all types of ____________________.
How can students experience "free rider" problems at school?
CHOOSE ALL THAT APPLY
Students who copy others students' homework.
Students who don't do their fair share of work on a group project, but expect to get the same grade as students who worked hard on the project.
Students who cheat off of a others student during an exam.
Answer:
All of the above
Explanation:
these are all reasons on how you can experience being a free rider
Quaker State Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $10,000 at the date of employment plus $40,000 at the end of each of his first two years of service. Assuming the employee's time value of money is 9% annually, what lump sum at employment date would make him indifferent between the two options
Answer:
$80.364.45
Explanation:
The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $10,000
Cash flow in year 1 = $40,000
Cash flow in year 2 = $40,000
I = 9%
PV = $80,364.45
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Why is it important for everyone in an organization to have the opportunity to
contribute to the mission statement?
A. So it defines expected outcomes clearly
B. So that it will be accepted and used by employees
C. So employees know the organization's history
O D. So the organization can track progress toward meeting its goals
Answer: so that it will be accepted and used by employees
Explanation:
AP EX
On October 14, the Patrick Company sold merchandise with an invoice price of $1,200 ($770 cost), with terms of 2/10, n/30, to the Baxter Company. On October 18, $220 of the merchandise ($170 cost) was returned because it was the wrong size. On October 24, the Patrick Company received a check for the amount due from the Baxter Company.
Required:
Prepare the journal entries for the Patrick Company using the perpetual inventory system.
Answer:
Patrick Company
Journal Entries:
Oct. 14: Debit Accounts receivable (Baxter Company) $1,200
Credit Sales revenue $1,200
To record the sale of goods on account, terms of 2/10, n/30.
Oct. 14: Debit Cost of goods sold $770
Credit Inventory $770
To record the cost of goods sold.
Oct. 18: Debit Sales returns $220
Credit Accounts receivable (Baxter Company) $220
To record the return of goods (wrong size) by Baxter.
Oct. 18: Debit Inventory $170
Credit Cost of goods sold $170
To record the cost of goods returned.
Oct. 24: Debit Cash $960
Debit Cash discounts $20
Credit Accounts receivable (Baxter Company) $980
To record the receipt of check on full settlement, including discounts.
Explanation:
a) Data and Calculations:
Oct. 14: Accounts receivable (Baxter Company) $1,200 Sales revenue $1,200, terms of 2/10, n/30.
Oct. 14: Cost of goods sold $770 Inventory $770
Oct. 18: Sales returns $220 Accounts receivable (Baxter Company) $220
Oct. 18: Inventory $170 Cost of goods sold $170
Oct. 24: Cash $960 Cash discounts $20 Accounts receivable (Baxter Company) $980
Why is it necessary to track the progress of a plan?
O A. To create a progress chart for employees to help them calculate
their pay
O B. To ensure the plan is based on faulty assumptions
O C. To identify potential problems that could impact the schedule
O D. To provide information for manager's reports
Answer:
to identify potential problems that could impact the schedule
Explanation:
a p e x
It is important for an organization to track the process of a plan in order to identify potential problems that could impact the schedule. Hence, option C holds true.
What is planning?Planning is the most basic function of management of a business organization. It is a continuous process. Planning involves setting up the goals and objectives and the actions needed to achieve them.
Furthermore, because planning is a continuous process, it helps in identification of difficulties that may create obstacles in achievement of organizational goals.
Hence, option C holds true regarding planning.
Learn more about planning here:
https://brainly.com/question/22590420
#SPJ2