Answer:
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
It is important to remember that Insurance paid in advance is an Asset hence, premium on a one-year insurance policy was recorded in Prepaid Insurance.
Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $84,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was:
a. $63,000.
b. $84,000.
c. $112,000.
d. $147,00
Answer:
Direct material cost = $112,000
Explanation:
Pre-determined overhead absorption rate rate = Estimated overhead for the period / estimated direct material cost
Pre-determined overhead absorption rate rate (OAR= 75% of direct material cost
Applied overhead = OAR × direct material cost
Applied overhead = 75% × direct material cost
Let direct material cost be represented by y
84,000= 75% × y
y = 84,000/75%= 112000
Direct material cost = $112,000
Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can produce either 25 bottles of milk or 35 cartons of eggs using all of its available resources. After each country fully specializes in producing the good in which it has a comparative advantage, how many cartons of eggs will India produce
Answer:
50 cartons of eggs
Explanation:
The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.
Bottles of milk cartons of eggs
India 15 50
Indonesia 25 35
In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.
In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.
According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.
At the beginning of the month, the Forming Department of Martin Manufacturing had 23,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 86,000 units and transferred 88,000 units to the next manufacturing department. At the end of the month, the department had 21,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
Units stated and completed during the month= 65,000
Explanation:
The units stated and completed in the current period is referred to as the fully worked.
Using the first in first out (FIFO) approach, the fully worked is calculated as
Fully worked = newly introduced -closing inventory
= 86,000- 21,000 = 65000
Note that out of the 86,000 that were completed in the period, it assumed that 23,000 representing the opening inventory would first be completed and the balance would from the newly introduced.
Another way to determine the fully worked is as follows
Fully worked = transferred out - opening inventory
Fully worked = 88,000- 23,000 = 65,000
Units stated and completed during the month= 65,000
Tangarine Company is considering a project with an internal rate of return of 12%. Tangarine requires a minimum rate of return of 10%. The net present value of the project is: a.equal to zero. b.infinite. c.negative. d.positive. e.None of these choices are correct.
Answer:
The correct option is D
Positive NPV
Explanation:
The internal rate of return is the discount rate that equates the present value of cash inflow to the present value of cash inflows.
It is the maximum cost of capital that can be used to discount a project without causing harm to the investors. In other words, it is the cost of capital that produces an NPV of Zero.
It therefore means that any cost of capital that is less than the IRR would produce a positive NPV and vice and versa.
and vice versa
Finally, if the IRR is 12% a cost of capital of 10% would produce a positive NPV
Calvin Manufacturing purchased new equipment that reduces setup times when employees change templates between production runs. This equipment has also improved quality control measures throughout the entire manufacturing process. What type of technology is Calvin Manufacturing using
Answer:
Lean production
Explanation:
Lean production refers to the management approach in which the company reduced its cost or do cost cutting so that it can improve the quality of their product and services. It is applied to each level each department of management like - design, production, etc
In the given situation, Calvin Manufacturing reduced their setup times that results in improving their quality control measures
So this situation represent the lean production technology
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use. Calculate Kevin's cost of goods sold for the year.?
Answer:
COGS= $598,020
Explanation:
Giving the following information:
Kevin owns a retail store, and during the current year, he purchased $610,000 worth of inventory. Kevin's beginning inventory was $67,000, and his ending inventory is $77,200. During the year, Kevin withdrew $1,780 in inventory for his personal use.
We need to deduct the inventory used for personal use.
To calculate the cost of goods sold, we need to use the following formula:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 67,000 + 610,000 - 77,200 - 1,780
COGS= $598,020
Aston, a tenant in Jackie's apartment, had repeatedly complained about the leaky faucets in the apartment. However, Jackie was not interested in doing anything about it. Under the landlord and tenant law, what remedies did Aston have?
a. To terminate the lease, then seek damages or rent adjustment.
b. To seek constructive eviction.
c. To obtain a court order for quiet enjoyment.
d. To obtain the doctrine of caveat emptor under the common law.
e. None, because she was on a periodical tenancy.
Answer:
a. To terminate the lease, then seek damages or rent adjustment.
Explanation:
when a landlord breaches his/her duties, the tenant has three available remedies:
terminationdamages rent adjustmentGenerally when things like this happen, the tenant will terminate the contract and in order to do so must leave the premises and notify the landlord that he/she is doing so and the reasons why. Then the tenant can seek compensation for damages caused by the landlord's breach of duties. Damages are generally limited to relocation costs, e.g. costs of finding a new apartment and moving there.
If Aston decided to stay at the apartment, he could seek to fix the plumbing issues and seek compensation from the landlord.
Out of the possible options, option a is correct.
1) Do you think there is/are any action(s) by Jessops Group Limited, that can be considered as a Corporate Social Responsibility (CSR) activity? 2) If yes, can you identify and explain a benefit of the CSR activity to Jessops Group Limited?
Answer:
YesExplanation:
Yes, Jessops is fulfilling its corporate social responsibility due to its contribution to the local councils for developing the collection facilities of discarded electronic goods and also by raising awareness for WEEE regulations, setting up plants to recycle used batteries can also be counted as a corporate social responsibility as it is an initiative to reduce environmental pollution caused by batteries.
There are four types of corporate social responsibility: Environment conservation, philanthropy, volunteerism, diversity and labor practices. Many corporations give money for preservation of wildlife and land, and take up environmental clean up efforts.
CSR helps the companies in many ways. It includes brand recognition and business reputation, it gives competitive edge to a company as companies prefer suppliers with responsible policies. It enhances customer loyalty and increases sales, it saves operational cost by reducing emissions and waste.
The CSR efforts helps the companies to attract talent and retain them as employees are motivated to work with companies taking up CSR initiatives.
CSR efforts also improves relations with the authorities and makes it easy to get financial access.
So, Jessop group will also get all these benefits from its CSR initiatives that will help it to become market leader in imaging industry.
A European call option for a stock has an exercise price of $70, and expires one year from today. Suppose that the stock price has an equal probability of being valued at $60, $70, $75, $83, and $89 dollars per share, one year from now. What is the current present value of the option, given an effective annual rate of 10%
Answer:
Find attached complete question with multiple choices:
The correct option is E,$6.7
Explanation:
The current present value of the option given an effective annual rate of 10% is the sum of payoffs from different stock prices discounted to present value as below:
Payoff is potential gain from buying the share in a year's time at the exercise price of $70
Stock price option price payoff
$60 $70 $0
$70 $70 $0
$75 $70 $5
$83 $70 $13
$89 $70 $19
Total payoffs=$0+$0+$5+$13+$19=$37
Average payoff(there are 5 different possible prices)=$37/5=$7.4
Present value of average payoff=$7.4/(1+10%)^1=$ 6.73
You recently received a letter from Cut-to-the-Chase National Bank that offers you a new credit card that has no annual fee. It states that the annual percentage rate (APR) is 16 percent on outstanding balances. What is the effective annual interest rate?
Answer:
Effect Annual rate of return =17.22%
Explanation:
The Effective annual rate of return is the equivalent rate earned where compounding is done frequently at period or interval less than a year.
EAR = (1+r/m)^n× m - 1
EAR - Equivalent annual rate of return, r- annul rate of return, n-number of years
r= 16/12 =1.333%, n= 1 m= 12 (note there are 12 months in a year)
EAR = (1+0.16/12)^(1×12) - 1
EAR = 1.0133^12 - 1 = 0.1722
EAR 0.1722 × 100 = 17.22%
Effect Annual rate of return =17.22%
When the relationship between government and interest groups becomes entangled and tight with some groups having formal government sponsorship and/or special access, the system is labeled_________.
Answer: Neo-Corporatism.
Explanation:
Neo- Corporatism emerged in resent times as a successor to State Corporatism. State Corporatism was a system whereby interest and labor groups were supposed to work together for the good of society. These were most prevalent in authoritarian regimes like Nazi Germany and post communist Lithuania.
Recently though, in some Democratic countries, interest groups have chosen to work with the Government to improve the lives of the people and enable the Government reach out deeper. These Peak Associations as they are often called help the Government compete economically and are very prevalent in countries and regions such as, Germany, Switzerland, Austria and Scandinavia.
In the short-run aggregate demand and supply model, one important difference between monetary and fiscal policy is that monetary policy:_______.
a. influences aggregate supply but fiscal policy influences aggregate demand.
b. has shorter lags than fiscal policy, so monetary policy may impact the economy more quickly than fiscal policy.
c. influences aggregate demand but fiscal policy influences aggregate supply.
d. has longer lags than fiscal policy, so fiscal policy may impact the economy more quickly than monetary policy.
Answer:
a. influences aggregate supply but fiscal policy influences aggregate demand.
Explanation:
Remember, when the term monetary policy is used it refers to policies that are focused on the interest rates as well as the inflation rate, which certainly affects the money supply specifically. However, the fiscal policy is usually channelled towards aggregate demand of the economy.
Thus, it is right to say that one important difference between monetary and fiscal policy is that monetary policy affects aggregate supply but fiscal policy influences aggregate demand.
CalculatorPrint Item On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $15,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a.$225 b.$235 c.$232 d.$222
Answer:
Option A, $225 is correct
Explanation:
The interest revenue=face value of the note*interest rate*3/12
Three months of interest revenue is due from October 1st till December 31st.
The interest revenue that Black company would recognize =$15,000*6%*3/12=$225
The correct option is A,$225 amount of interest revenue would be recorded by Black Company in the year by debiting interest receivable(pending the maturity of the note) and crediting interest revenue
Suppose that the government implements expansionary fiscal policy that raises aggregate demand, but the policy is unanticipated. According to new classical theory, in the short run the price level would ____________ and Real GDP would ______________. In the long run, new classical theory would predict that the price level would ______________ compared to its original long-run equilibrium level and that Real GDP would ____________.
Answer:
Rise;rise;rise;remain unchanged.
Explanation:
The new classical theory also known as the neoclassical economic theory is one that repudiates and tends to restructure the John M. Keynes theory of macroeconomics, popularly referred to as the Keynesian Macroeconomics theory.
The new classical theory argues that efficient demand and supply is the most important feature or key behind the level of output, pricing, and consumption of goods and services by the people at a specific period of time in a country. Also, the new classical theory assumes that the wages of the employees in a country is flexible in contrast to the Keynesian macroeconomic theory.
Suppose that the government implements expansionary fiscal policy that raises aggregate demand, but the policy is unanticipated. According to new classical theory, in the short run the price level would rise and Real Gross Domestic Product (GDP) would rise. In the long run, new classical theory would predict that the price level would rise compared to its original long-run equilibrium level and that Real Gross Domestic Product (GDP) would remain unchanged.
Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,817 $ 40,739 $ 42,420 Accounts receivable, net 100,012 69,175 53,814 Merchandise inventory 128,260 91,410 59,663 Prepaid expenses 11,001 10,482 4,576 Plant assets, net 311,773 292,386 255,527 Total assets $ 584,863 $ 504,192 $ 416,000 Liabilities and Equity Accounts payable $ 141,262 $ 85,208 $ 56,010 Long-term notes payable secured by mortgages on plant assets 108,855 118,283 91,936 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 171,246 137,201 104,554 Total liabilities and equity $ 584,863 $ 504,192 $ 416,000 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final percentage answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable?
Answer:
Simon Company's
Balance Sheets at December 31L
Current Yr % 1 Yr Ago % 2 Yrs Ago %
Assets
Cash $ 33,817 6 $ 40,739 8 $ 42,420 10
Accounts receivable, net 100,012 17 69,175 14 53,814 13 Merchandise inventory 128,260 22 91,410 18 59,663 14
Prepaid expenses 11,001 2 10,482 2 4,576 1
Plant assets, net 311,773 53 292,386 57 255,527 61
Total assets $ 584,863 100 $ 504,192 100 $ 416,000 100
Liabilities and Equity
Accounts payable $ 141,262 24 $ 85,208 17 $ 56,010 13
Long-term notes payable 108,855 19 118,283 23 91,936 22 Common stock,
$10 par value 163,500 28 163,500 32 163,500 39 Retained earnings 171,246 29 137,201 27 104,554 25
Total liabilities & equity$ 584,863 100 $ 504,192 100 $ 416,000 100
2. Assuming annual sales have not changed in the last three years, the change in accounts receivable as a percentage of total assets is favorable. It is always better to maintain low accounts receivable, thereby reducing credit risk exposures.
3. Assuming annual sales have not changed in the last three years, the change in merchandise inventory as a percentage of total assets is favorable. Less inventory means that working capital is not being tied down to inventory.
Explanation:
Common-size percentages are used in analyzing the balance sheet. The calculations set each line item as a percent of the total assets.
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.
Scenario Number of Firms Type of Product Market Model
1. A large city has lots of small shops
where people can buy sweaters.
Each store's sweaters reflect the
style of that particular store.
Additionally, some stores use higher
-quality yarn than others, which is
reflected in their price.
2. There are dozens of pasta producers
that sell pasta to hundreds of Italian
restaurants nationwide. The restaurant
owners buy from the cheapest pasta
producer they can. While pasta manuf-
acturers must pay licensing fees to their
local government and undergo regular
food-safety inspections, anyone who
has passed inspections can acquire and
maintain their license.
3. Only three airlines fly from San Francisco
to Medford, Oregon. No new airline will enter
this market, because there are not enough
customers to share among four or more
airlines without each one experiencing
substantially higher average costs. Consumers
view all airlines as providing basically the same
service and will shop around for the lowest price.
4. The government has granted a patent to a drug
company for an experimental AIDS drug. That
company is the only firm permitted to sell the drug.
Answer and Explanation:
The Perfect competition is a market condition in which there are very large number of buyers and sellers that sell the same or identical products having perfect knowledge with respect to products and services. Moreover, there is free entry and exit in this market
Monopolistic competition is a market condition that deals with many firms that are closely related to each other but sell differentiated products. Moreover, there is free entry and exit in this market
In the monopoly market, there is only one seller who controls the overall market. Due to this, the seller charged the high price as there is no competition. There is no free entry and exit in this market
In the oligopoly market, there are few sellers who deal in a single market. There is no free entry and exit in this market
Based on the above explanation, the categorization is shown below:
Scenario Number of Firms Type of Model
Product Market
1. Many Differentiated product Monopolistic
2. Many Standardised products Perfect
Competition
3. Few Differentiated products Oligopoly
4. One Unique Monopoly
The scenarios and their various market characteristics are as follows:
Scenario Number of firms Type of Product Market Model
1 Many Differentiated Monopolistic
2 Many Standardized Perfect competition
3 Few Standardized Oligopoly
4 Single Unique Monopoly
Scenario 1 is a monopolistically competitive market where there are several firms who sell similar but differentiated products to gain market share.
Scenario 2 is a perfectly competitive market that has many firms. These firms all sell the same goods which means that they are standardized.
Scenario 3 is an oligopoly as it has very few players in the market and these players control the market and offer the same product.
Scenario 4 is a monopoly that has one firm in the market thanks to the government patent. The product is therefore unique because it is made by one firm.
In conclusion, there are several market types available.
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Raising Canes is a restaurant located primarily in the south and the owner is interested in expanding nationwide. Name and describe the various types of research suppliers and discuss which type could meet his need for finding the best locations in new markets.?
Answer:
- syndicate research service
- limited research service
- standardized research
- custom research
Explanation:
Note, Raising canes ones to expand nationwide, which of course is a monumental task.
- The syndicated research supplier using is already established standards for the research in exchange for a fee.
- Standardized research supplier is willing to meet the needs of clients by directing strategies best fitted to find suitable retail locations. It is the best type of research service to meet this client’s needs.
- Limited-service research are suppliers that are limited in their scope of operations such as data warehousing, or data processing.
March 1 Paid monthly rent of $890. 3 Performed services for $100 on account. 5 Performed services for cash of $55. 8 Purchased equipment for $445. The company paid cash of $60 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $390. 22 Paid utilities of $54. 24 Borrowed $1,110 from Grafton State Bank by signing a note. 27 Paid $160 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,330 for six months of insurance. Journalize the transactions.
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
Non-verbal communication influences the way a message is received and functions in at least five different ways. Read the following scenario, and identify the most appropriate form of non-verbal communication to use.
You are meeting with a new customer for the first time in person. This customer had a negative experience with one of your company’s competitors, and you want to communicate to the customer that you are honest and trustworthy.What form of non-verbal communication will serve you best?
A. Smiling
B.Standing far away
C. Sustained eye contact
Non-verbal communication sends powerful messages through body language and facial expressions. Our work space arrangement also sends nonverbal messages to others. In the following situation, consider what the intern is conveying non-verbally.
After preparing a project development agenda, the office manager prepares a conference room for the meeting. She places a circular table in the center of the room and surrounds it with comfortable chairs. What message is the office manager expressing non-verbally?
A. She wishes to promote open communication.
B. She wishes to discourage communication.
C. She wishes to set up a clear hierarchy.
Document appearance can have either positive or negative effects on how an audience receives a message.
In the following situation, consider what message is being conveyed non-verbally through document appearance.
Nathan is hiring a summer intern to assist him in launching a new marketing campaign. He opens a letter of introduction from one applicant and notices three misspellings in the first sentence. Additionally, Nathan notes that while the applicant seems to have the necessary experience, he has not formatted his letter of introduction in a professional manner. What message is the internship applicant expressing non-verbally?
A. He is very interested in the summer internship.
B. He is well qualified but too busy to be bothered with formatting.
C. He is not very professional and is not interested in the job.
Answer:
A. Smiling
A. She wishes to promote open communication.
C. He is not very professional and is not interested in the job.
Your answer
Explanation:
Non verbal communication is the transmission of information without the use of words.
Non verbal communication can be carried out through eye contact, facial expressions, physical appearance or settings, tone of voice and distance.
Smiling is an example of non verbal communication using facial expressions. It communicates friendliness and honesty.
By arranging the chairs in a certain manner, physical settings is the mode of non verbal communication used.
I hope my answer helps you
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company’s total fixed costs would be reduced by 20 percent.
Segmented income statements appear as follows:
Product Original Strawberry Orange
Sales $65,200 $85,600 $102,400
Variable costs 44,000 77,200 80,200
Contribution margin $21,200 $8,400 $22,200
Fixed costs allocated to each product line 9,400 12,000 14,200
Operating profit (loss) $11,800 $(3,600) $8,000
Required:
a. Prepare a differential cost schedule.
b. Should Cotrone drop the Strawberry product line?
Answer:
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %
Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %
Explanation:
Cotrone Beverages
Differential Analysis
Totals Totals Difference / Change
including (less) Without (equals)
Strawberry Strawberry
Sales 253,200 167,600 85600 Decrease
Variable costs 201,400 124,200 77200 Decrease
Fixed costs allocated 35,600 28,480 7120 Decrease
Operating profit (loss) 13,200 14,920 (1720) Increase
Working
Total Fixed Costs Reduced will be = 35,600 *20%= 7120
Here we see the profit is increased by 1720 therefore strawberry line should be dropped.
Cotrone Beverages
Differential Analysis
Totals Totals Difference / Change
including (less) Without (equals)
Strawberry Strawberry
Sales 253,200 167,600 85600 Decrease
Variable costs 201,400 124,200 77200 Decrease
Contribution margin 51,800 43,400 8,400 Decrease
Fixed costs allocated 35,600 23,600 12000 Decrease
Operating profit (loss) 13,200 16,800 (3,600) Increase
Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600
Working
We find the totals with and without the strawberry product line and then subtract to find the differential costs
Cotrone Beverages
Product Original Strawberry Orange Total
Sales $65,200 $85,600 $102,400 253,200
Variable costs 44,000 77,200 80,200 201,400
Contribution margin $21,200 $8,400 $22,200 51,800
Fixed costs allocated 9,400 12,000 14,200 35,600
Operating profit (loss) $11,800 $(3,600) $8,000 13,200
If we drop the strawberry line then the new totals would be
Product Original Orange Total
Sales $65,200 $102,400 167,600
Variable costs 44,000 80,200 124,200
Contribution margin $21,200 $22,200 43,400
Fixed costs allocated 9,400 14,200 23,600
Operating profit (loss) $11,800 $8,000 16,800
Lopez Corporation incurred the following costs while manufacturing its product.Materials used in product $120,000 Advertising expense $45,000Depreciation on plant 60,000 Property taxes on plant 14,000Property taxes on store 7,500 Delivery expense 21,000Labor costs of assembly- 110,000 Sales commissions 35,000line workersFactory supplies used 23,000 Salaries paid to sales clerks 50,000Work in process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.Compute:____ Cost of goods manufactured $Compute cost of goods sold.
Answer:
Cost of goods manufactured is $323,500
Cost of goods sold is $337,900
Explanation:
Given:
Materials used in product = $120,000
Advertising expense = $45,000
Depreciation on plant = $60,000
Property taxes on plant = $14,000
Property taxes on store = $7,500
Delivery expense = $21,000
Labor costs of assembly-line workers = $110,000
Sales commissions = $35,000
Factory supplies used = $23,000
Salaries paid to sales clerks = $50,000
Work in process inventory was $12,000 at January 1 and $15,500 at December 31.
Finished goods inventory was $60,000 at January 1 and $45,600 at December 31.
(a) Cost of goods manufactured = Materials used in product + Depreciation on plant + Labor costs of assembly-line workers + Property taxes on plant + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
Based on the given information,
The cost of goods manufactured is $323,500
cost of goods sold $337,900
Calculations are as follows
(a) Cost of goods manufactured =Depreciation on plant + Materials used in product +Property taxes on plant + Labor costs of assembly-line workers + Factory supplies used + Beginning work in process - ending work in process
= $120,000 + $60,000 + $110,000 + $14,000 + $23,000 + $12,000 - $15,500
= $323,500
(b) Cost of goods sold = Cost of goods manufactured + opening finished goods inventory - Closing finished goods inventory
= $323,500 + $60,000 - $45,600
= $337,900
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Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the
following forecasts:
• Expected return on the market portfolio: 12%.
• Standard deviation on the market portfolio: 20%.
• Risk-free rate: 5%.
Samuel Johnson seeks 'Ml's advice for a portfolio asset allocation. Johnson informs IMI that he wants the standard deviation of the portfolio to equal half of the standard deviation for the market portfolio. Using the capital market line, what expected return can IMI provide subject to Johnson's risk constraint?
Answer:
The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%
Explanation:
Capital Market Line (CML)
Expected return on the market portfolio, E([tex]r_m[/tex]) = 12 %
Standard deviation on the market portfolio, σ[tex]_p[/tex] = 20%
Risk-free rate, [tex]r_f[/tex] = 5%
E([tex]r_c[/tex]) = [tex]r_f[/tex] + [ E([tex]r_p[/tex]) - [tex]r_f[/tex] ] × ( σ[tex]_c[/tex] ÷ σ[tex]_p[/tex])
= 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)
= 8.5%
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $49,700, net fixed assets of $248,300, current liabilities of $28,400, and long-term debt of $101,600.
A. Calculate Caraway's stockholders' equity.B. What is the firm's net working capital?
Answer:
A.
$168,000
B.
$21,300
Explanation:
A.
As per accounting equation
Assets = Liabilities + Equity
Equity = Assets - Liabilities
Placing values in the equation
Equity = ( Current assets + Net Fixed Assets ) - ( Current Liabilities + Long term debt )
Equity = ( $49,700 + 248,300 ) - ( 28,400 + 101,600)
Equity = $168,000
B.
Net Working capital is the net of current assets and current liabilities of the company.
Use following formula of net working capital
Net working capital = Current assets - current liabilities
Net working capital = $49,700 - 28,400
Net working capital = $21,300
Which of the following is an example of peakminusload pricing? A. charging less for vacations to Hawaii during December and January B. setting price equal to marginal cost when there is a capacity constraint C. selling excess capacity at lower prices D. charging more for electricity on hot days
Answer:
D. charging more for electricity on hot days.
Explanation:
This is a strategy that helps service providers in billing their customers when their in traffic on the usage of a particular service. This is charging higher of a certain service when their are a lot of users trying to be benefit or trying to use it at the same time. This can easily be seen in the case of utility usage amongst countries where this forms of billings are performed. That is why in the scenario above, the charging more for electricity on a hot day falls in place as the perfect option of peakminus loading price.
Answer:
D. charging more for electricity on hot days
Explanation:
Peak load pricing is charging more for a good or service when the demand for the good is higher.
During the hot weather, people would want to use fans and air conditioners, thus, the demand for electricity would be higher as people would need electricity to power these items. So increasing the price in the hurt weather is an example of peak load pricing.
I hope my answer helps you
The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project Z Amount of investment $55,000 $50,000 Useful life 12 years 15 years Estimated residual value $5,000 $6,000 Estimated total income over the useful life $57,600 $63,000 Determine the expected average rate of return for each project.
Answer:
Project Average rate of return
A 16%
Z 15%
Explanation:
The average rate of return (ARR) is the proportion of the average investment that is earned as profit.
Average rate of return(ARR) = average operating income/ Average investment
Project A=
Average income = 57,600/12 = 4800
Average investment = (55,000 + 5,000)/2 = 30000
ARR = 4,800/30,000 × 100 = 16%
Projecr Z
Average income = 63,000/15= 4200
Aveage investment = (50,000 + 6,000)/2= 28,000
ARR = 4,200/28,000× 100 = 15%
Trademark dilution laws: Select one: a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur. b. are intended at protecting consumers rather than focusing on protecting the investment of trademark owners. c. permit a company to quickly penetrate a foreign market without incurring the substantial financial and legal risks associated with direct investment. d. require the licensee to transfer any inventions it derives from the licensed technology to the licensor.
Answer:
a. protect "distinctive" or "famous" marks from unauthorized uses even when confusion is not likely to occur.
Explanation:
Trademark dilution laws are rules and regulations that seek to protect the trademarks of well known brands from unauthorized use by other brands, in such a way that the distinctive attribute of the trademark is minimized. Trademark dilution laws are meant to ensure that the main purpose for which a product's trademark is known is meant to stand out significantly in the mind of consumers.
Smaller companies might want to copy the trademark of famous brands for their products which might be different. These laws seek to prevent this act even if it may not cause confusion in the minds of consumers as to which brand owns a product.
g (Ignore income taxes in this problem.) Overland Corporation has gathered the following data on a proposed investment project: Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. Investment required in equipment $ 440,000 Annual cash inflows $ 77,000 Salvage value of equipment $ 0 Life of the investment 20 years Discount rate 13 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The internal rate of return on the investment is closest to:
Answer:
16.70%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = $-440,000
Cash flow each year from year one to twenty = $77,000
IRR = 16.70%
To find the IRR using a financial calacutor:
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 IRR button and then press the compute button.
I hope my answer helps you
g A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX).
Answer: 0.1613
Explanation:
From the question, a firm buys on terms of 3/15, net 45. This implies that a discount rate of 3% will be provided I payment is made within 15 days. If it's not made within 15 days, then full payment will be due on 85 days.
The nominal annual percentage cost is 0.1613. The calculation has been attached
On March 1, Sather Co. sold merchandise to Boone Co. on account, $28,400, terms 2/15, n/30. The cost of the merchandise sold is $19,500. The merchandise was paid for on March 14. Assume all discounts are taken.Required:Journalize the entries for Sather Co. and Boone Co. for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.CHART OF ACCOUNTSSummit Co.General LedgerASSETS110 Cash121 Accounts Receivable-Beartooth Co.125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES210 Accounts Payable216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest ExpenseCHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110 Cash120 Accounts Receivable125 Notes Receivable130 Merchandise Inventory131 Estimated Returns Inventory140 Office Supplies141 Store Supplies142 Prepaid Insurance180 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES211 Accounts Payable-Summit Co.216 Salaries Payable218 Sales Tax Payable219 Customers Refunds Payable221 Notes PayableEQUITY310 Owner, Capital311 Owner, Drawing312 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Merchandise Sold521 Delivery Expense522 Advertising Expense524 Depreciation Expense-Store Equipment525 Depreciation Expense-Office Equipment526 Salaries Expense531 Rent Expense533 Insurance Expense534 Store Supplies Expense535 Office Supplies Expense536 Credit Card Expense539 Miscellaneous Expense710 Interest Expense
Answer and Explanation:
The journal entries are shown below:
On the books of Sather Co.
On Mar 1
Accounts Receivable $28,400
To Sales $28,400
(Being the merchandise sold on credit is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales as it also increased the sales
Cost of goods sold $19,500
To Merchandise inventory $19,500
(Being the cost of merchandise is recorded)
For recording this we debited the cost of goods sold as it increased the expenses and credited the inventory as it reduced the assets
On Mar 14
Cash $27,830
Sales Discounts ($28,400 × 2%) $568
To Accounts Receivable $28,400
(Being the payment received is recorded)
For recording this we debited the sales and discount as it increased the assets and discount and credited the account receivable as it decreased the assets
On the books of Boone Co.
On Mar 1
Merchandise Inventory $28,400
To Accounts Payable $28,400
(Being the merchandise is purchased on credit)
For recording this we debited the inventory as it increased the assets and credited the account payable as it also increased the liabilities
On Mar 14
Accounts Payable $28,400
To Cash $27,830
To Merchandise inventory ($28,400 × 2%) $568
(Being the cash payment is recorded)
Fo recording this we debited the account payable as it reduced the liabilities and credited the cash and inventory as it also decreased the assets
An employee was terminated for withholding information related to the purchase of new software. The employee was aware that it was buggy software but did not disclose this to his employers since the software manufacturer had bribed him. Prior to termination, the employee was a(n) _____ in his company's buying center. initiator decider gatekeeper influencer
Answer:
Influencers
Explanation:
In simple words, influencer in a buying center refers to the individual in authority who is responsible for checking the technical aspects of the commodity procured.
These are the tech personnel who are authorized to compare different products regarding their characteristics to best suit the needs of the center. They play crucial role when it comes to advanced technology etc.