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
Data collected from the economy of Pokerville reveals that a 16% increase in income leads to the following changes:
• A 12% increase in the quantity of horses demanded.
• A 14% decrease in the quantity of clubs demanded.
• A 28% increase in the quantity of diamonds demanded.
Compute the income elasticity of demand for each good and use the dropdown menus to complete the first column in the following table.
Good Income Elasticity of Demand Normal or Inferior Good
Horses
Spades
Aces
Which of the following three goods is most likely to be classified as a luxury good?
a. Aces
b. Spades
c. Horses
Answer:
Horses - 0.75 - normal
Clubs- 0.875 - inferior
Diamonds - 1.75 - normal
Diamond is a luxury good
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income of the consumer.
Income elasticity of demand = percentage change in demand / percentage change in income
Income elascitiy for horses = 12% / 16% =
Income elasticity of demand for spades = 14% / 16% = 0.875
Income elasticity of demand for diamonds 28% / 16% = 1.75
A normal good is a whose demand increases when income increases and falls when income falls.
An inferior good is a good whose demand increases when income falls and whose demand falls when income increases.
Horses and diamonds are normal goods because the demand for the goods increases with income while clubs are inferior goods because the demand for the goods falls when income rises.
A luxury good is a good whose demand rises more than the rise in income. The demands for diamonds increase more than the increase in income, so diamonds are luxury goods.
I hope my answer helps you
Skip owns a business. Since demand is on the rise, he decided to purchase an upgraded machine that will produce four times as fast as his previous machine. The cost of the new machine is $400,000 and will be the only depreciable property that Skip places in service during 2019. What is the amount of his Section 179 deduction for 2019
Answer: $400,000
Explanation:
According to Section 179 on deducting Expenses issued by the IRS, a company may deduct the cost of certain assets when they are first put into service.
The Assets include tangible assets such as equipment and machinery so long as they are purchased for business use.
Skip bought the equipment for $400,000 and as such can deduct this entire amount under Section 179.
The Old World Café’s cash register receipts showed total sales of $884. The cash equaled $534, and the credit card slips equaled $237. How much of the sales are not accounted for? What might explain the difference?
Answer:the answer is $307
Explanation: some one didn't pay
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net cash flows 7,980,000 Fair value 5,472,000 Bramble intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,800. As of December 31, 2020, the equipment has a remaining useful life of 5 years.Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020
Answer and Explanation:
The journal entry to record the impairment of the loss is shown below:
Loss on impairment Dr $3,670,800
To Accumulated depreciation - Equipment $3,670,800
(Being the loss on impairment is recorded)
For recording this we debited the loss on impairment as it increased the losses and credited the accumulated depreciation as it increased the balance of accumulated depreciation
Working note:
Cost $10,260,000
Less: Accumulated depreciation -$1,140,000
Carrying Amount $9,120,000
Less Fair value -$5,472,000
Plus: Cost of disposal $22,800
Loss on impairment $3,670,800
Charles is a stay-at-home parent who lives in New York City and teaches tennis lessons for extra cash. At a wage of $25 per hour, he is willing to teach 6 hours per week. At $35 per hour, he is willing to teach 16 hours per week. Using the midpoint method, the elasticity of Teresa’s labor supply between the wages of $25 and $35 per hour is approximately _________ , which means that Teresa’s supply of labor over this wage range is _________
Answer:
2.75, elastic.
Explanation:
Measure labor supply elasticity of Individual T's as follows :
[tex]\bf Elasticity=\frac{Percent \;change\;in\;labour\;hr}{\frac{Average\;labour\;hour}{\frac{Percent\;change\;in\;wage\;price}{Average\;wage\;price} } }[/tex]
[tex]\bf =\frac{16-6}{\frac{16+6}{\frac{2}{\frac{35-25}{\frac{35+25}{2} } } } }[/tex]
[tex]\bf=\frac{10}{\frac{11}{\frac{10}{30} } }[/tex]
[tex]\bf=\frac{0.91}{0.33}[/tex]
[tex]=2.75[/tex]
Therefore, the elasticity of the labour supply of Individual T's is approx. of earnings per hour. 2.75, meaning that the work supply of Person T's is elastic across this wage range
The Baldwin company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs $20 per hour. How much would their training costs per employee be to the nearest dollar
Answer: $1,600
Explanation:
The training hours per employee can be calculated by multiplying the Employee Training hours by the cost of training per employee.
From the Attached document, the Baldwin company does 80 hours of training for employees.
The Training costs per Employee is;
= 80 * 20
= $1,600
If the Baldwin Company organizes 80 hours of training for each employer in a given year, and the training cost per hour for an employee is $20, it implies that the training costs per employee would be $1,600 ($20 x 80).
Data and Calculations:
Training costs per employee per hour = $20
Training hours per employee in a year 80 hours
Total training costs per employee in a year = $1,600 ($20 x 80)
Thus, the Baldwin Company spends $1,600 per employee in training them so that employee turnover would be reduced while productivity improves.
Learn more: https://brainly.com/question/23612814
You own a portfolio that has a total value of $130,000 and a beta of 1.28. You have another $49,000 to invest and you would like the beta of your portfolio to decrease to 1.18. What does the beta of the new investment have to be in order to accomplish this
Answer:βB =0.9147=beta of new investment
Explanation:
Total investment= $130,000 + $49,000= $179,000
Using
Portfolio beta(βp) = wA × βA + wB × βB
Where βp is the portfolio beta coefficient,
wA is the weight of the first investment,
βA is the beta coefficient of first investment;
wB is the weight of the second investment,
βB is the beta coefficient of second investment
but weight of investment is stock value/ total investment x 100
wA= 130,000/ 179,000X 100=72.63%
WB= 49,000/179,000 X100=27.374%
Portfolio beta(βp) = wA × βA + wB × βB
1.18=(72.63%*1.28)+(27.374% XβB )
1.18=0.9296+0.27374βB
βB i=(1.18-0.9298)/0.27374
βB =0.9147=beta of new investment
The following list of statements about corporations are given below.
1. A corporation is an entity separate and distinct from its owners.
2. As a legal entity, a corporation has most of the rights and privileges of a person.
3. Most of the largest U.S. corporations are publicly held corporations.
4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.
5. The net income of a corporation is taxed as a separate entity.
6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.
7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder.
8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation.
9. The chief accounting officer of a corporation is the controller.
10. Corporations are subject to more state and federal regulations than partnerships or proprietorships. Andrea has studied the information above and has come with more statements about corporations.
Identify whether each statement is true or false.
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
A. True B. False
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
A. True B. False
3. When a corporation is formed, organization costs are recorded as an asset.
A. True B. False
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
A. True B. False
5. The number of issued shares is always greater than or equal to the number of authorized shares.
A. True B. False
6. A journal entry is required for the authorization of capital stock.
A. True B. False
8. Publicly held corporations usually issue stock directly to investors. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
A. True B. False
9. The market price of common stock is usually the same as its par value.
A. True B. False
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
A. True B. False
Answer:
1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
A. True B. False
2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
A. True B. False
3. When a corporation is formed, organization costs are recorded as an asset.
A. True B. False
4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
A. True B. False
5. The number of issued shares is always greater than or equal to the number of authorized shares.
A. True B. False
6. A journal entry is required for the authorization of capital stock.
A. True B. False
8. Publicly held corporations usually issue stock directly to investors. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
A. True B. False
9. The market price of common stock is usually the same as its par value.
A. True B. False
10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
A. True B. False
Explanation:
1) Corporation management means that experts can be hired as managers. On the other hand, the managers may not act in the best interest of the owners, even though, they are legally required to do so.
2) Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. Limited liability of stockholders may be a disadvantage to non-stockholders, but it is an advantage for stockholders, who will not be required to contribute more money to offset liabilities of the corporation in the event of liquidation. Since corporations are distinct persons in law, they also need to be regulated and taxed as separate persons. So, this is not a disadvantage. It is only a consequence of being separate entity, like all individuals.
3) Organization costs include legal payments, state and federal registration, and incorporation fees, promotions, and charges associated with the underwriting of stocks and bonds. Organization costs can be classified as assets on the company's balance sheet.
4) A share in a company's stock accords some rights on the holder as itemized above.
5) The number of issued shares may be equal to or less than the authorized shares. Some companies do not issue all the shares that they are authorized to issue at the same time.
6) Authorization of capital stock does not require a journal entry. A memorandum record of the authorization is instead maintained to show the number of authorized capital shares and the par value.
7) There is no question 7.
8) Initial public offerings are made directly to investors. The stock exchange market caters for the exchange of shares among investors. The company is not involved and does not take any financial record, except the register of shareholders.
9) The market price of shares may be more or less than the par value. The market price is determined by investors, who exchange shares at arm's length in the stock exchange market. The par value is determined by those authorizing the issue of shares.
10) Retained Earnings are the income generated by the corporation which have not been distributed to shareholders in the form of dividends.
On January 1, a company purchased a five-year insurance policy for $2,200 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
Answer:
Debit Insurance Expense 440
Credit Prepaid Insurace 440
Explanation:
Since on January 1, the company purchased a five year insurance policy for $2,200 that means we have to divide the insurance policy amount of $2,200 by the numbers of year which is 5 years .
Hence:
$2,200/5 years
=440
Therefore the adjusting entry at the end of the first year is:
Debit Insurance Expense 440
Credit Prepaid Insurace 440
XtraTorque Inc. is a leading engine oil manufacturer in the United States. The company manufactures oil that can withstand a broader range of temperature than any other engine oil brands available in the market. The company plans to expand its business into the Russian market because its product can maintain fluidity even at low temperatures. Which of the following organizational strategies should XtraTorque Inc. adopt?
A) Diversification strategy
B) Market differentiation strategy
C) Market development strategy
D) Market penetration strategy
Answer:
C) Market development strategy
Explanation:
Market development strategy defines that it is a marketing technique in which an company tries to promote an existing product to a new customer segment.
According to the given situation the company who is the head producer of engine oil in the U.S. Here the company produces oil which can resist a wider temperature range other than any brands of engine oil which is available in the marketplace. Now, the company wants to extend their business into the new market place that is Russian market, as its product can maintain fluidity even at low temperature so this indicates that the company adopting the market development strategy.
Journalize the July transactions.
Martin Johnson opened Seaside Cleaning Service on July 1, 2019. During July, the company completed the following transactions:
July 1 Owner Martin Johnson invested $39,870 cash and $7,545 of cleaning equipment in the business.
1 Purchased a used truck for $10,500, paying $2,500 cash and the balance on account.
3 Purchased cleaning supplies for $1,794 on account.
5 Paid $1,800 on a one-year insurance policy, effective July 1.
12 Billed customers $4,813 for cleaning services.
15 Received $1,650 from customers for future cleaning services.
18 Paid $1,200 of amount owed on truck.
20 Paid $698 for employee salaries.
21 Collected $3,632 from customers billed on July 12.
25 Billed customers $6,275 for cleaning services.
31 Paid gasoline for the month on the truck, $297.
31 Owner Martin Johnson withdrew $1,000 for personal use.
Adjustments:
July 31 Earned but unbilled fees at July 31 were $2,476.
Depreciation on truck for the month was $175.
Earned $450 of payment received on July 15.
One-twelfth of the insurance expired.
An inventory count shows $521 of cleaning supplies on hand at July 31.
Accrued but unpaid employee salaries were $287.
Answer:
Transactions :
July 1
Cash $39,870 (debit)
Cleaning Equipment $2,500 (debit)
Capital $42,370 (credit)
July 1
Truck $10,500 (debit)
Cash $2,500 (credit)
Accounts Payable $8,000 (credit)
July 3
Cleaning Supplies $1,794 (debit)
Accounts Payable $1,794 (credit)
July 5
Prepaid Insurance $1,800 (debit)
Cash $1,800 (credit)
July 12
Trade Receivable $4,813 (debit)
Service Revenue $4,813 (credit)
July 15
Cash $1,650 (debit)
Deferred Revenue $1,650 (credit)
July 18
Accounts Payable $1,200 (debit)
Cash $1,200 (credit)
July 20
Cash $3,632 (debit)
Accounts Receivable $3,632 (credit)
July 25
Trade Receivables $6,275 (debit)
Service Revenue $6,275 (credit)
July 31
Utilities : Gasoline $297 (debit)
Cash $297 (credit)
July 31
Capital $1,000 (debit)
Cash $1,000 (credit)
Adjustments:
July 31
Cash $2,476 (debit)
Deferred Revenue $2,476 (credit)
July 31
Depreciation $175 (debit)
Accumulated Depreciation $175 (credit)
July 31
Deferred Revenue $450 (debit)
Revenue $450(credit)
July 31
Insurance Expense $150 (debit)
Insurance Prepaid $150 (credit)
July 31
Supplies Inventory $521 (debit)
Income statement $521 (credit)
July 31
Wages $287 (debit)
Wages Payable $287 (credit)
Explanation:
Journal entries have been made for both the transactions and adjustments that occurred during the period.
Note : Revenue earned but not billed is recorded as a Liability known as Deferred Revenue. The liability is de-recognized later as the customers or service is billed.
Suppose that a labor economist performs a statistical analysis on economywide worker wages using standard, measurable explanatory factors, such as job characteristics, years of schooling, and so forth. How much of the variation in worker wages can be accounted for by such measurable explanatory factors
Answer: Somewhat less than 50%
Explanation:
Here is the complete question;
Suppose that a labor economist performs a statistical analysis on economywide worker wages using standard, measurable explanatory factors, such as job characteristics, years of schooling, and so forth. How much of the variation in worker wages can be accounted for by such measurable explanatory factors?
a. Somewhat less than 50%.
b. Somewhat more than 60%
c. Nearly 100%
d. About 0%?
The variables which are typically removed from the quantitative analysis of wages are those which cannot be directly measured, directly observed or normative in nature.
Chance plays a vital role in deciding ones wage, the type of job one applies for and gets, and the salary that can be gotten. Chance cannot neither be measured nor observed. Natural ability cannot also be quantified, observed or measured. These variables are also subject to normative judgement.
Based on this analysis, the measurable traits will account for less than 50% of total variation in the wages.
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,600 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title for the adjusting entry to record the bad debts Bad Debt Expense enter a debit amount enter a credit amount enter an account title for the adjusting entry to record the bad debts Allowance for Doubtful Accounts
Answer:
Find attached missing part:
Dr bad debt expense $ 22,050.00
Cr allowance for doubtful accounts $ 22,050.00
Explanation:
The estimated balance of uncollectible debts is the accounts receivable of $570,000 multiplied by 4.5% which is the rate of uncollectible debt given in the question.
Estimated balance of uncollectible debt=$570,000*4.5%=$ 25,650.00
The adjusting entries required to record bad debts as per the amount computed above is the estimated balance of uncollectible of $ 25,650.00 minus the debit balance of $3,600 already in the unadjusted balance in allowance for doubtful debts.
adjusting amount=$ 25,650.00-$3,600.00=$ 22,050.00
Markysha needs to know the cost variance of her project to determine if it is under budget or over budget. To do this she decides to use _________ to compare her project's performance to the expected progress.
Answer:
Earned value management
Explanation:
Markysha decided to use Earned value management for this comparison.
Earned Value Management helps project managers to measure project performance.
It is a project management process that is used to find variances in projects by comparing project's performance to the expected progress. It is useful on cost and schedule control and can be very beneficial when it comes to forecasting during projects.
Find the mean, median and mode for the above set of data
Answer:
a. Mean = 35.2 ≈ 35
b. Median = 35.6 ≈ 36
c. Mode = 36.6 ≈ 37
Step-by-step Explanation:
==>Given:
Class of ages in yrs
No. of cases of each class = f
Midpoint of each class = x
Product of midpoint and no. of cases of each class = fx
==>Required:
a. Mean
b. Median
c. Mode
==>SOLUTION:
a. Mean = (Σfx)/Σf
Σf = sum of no. of cases = 5+10+20+22+13+5 = 75
Σfx = 47.5+195+590+869+643.5+297.5 = 2,642.5
Mean = 2,642.5/75 = 35.2 ≈ 35
b. Median = Lm + [((Σf/2) - Cfb)/fm]Cw
Our median is between the 37th and the 38th term, which can be found in the class interval 35-44. This is our median class.
Lm = Lower class boundary of the median class = lower limit of the Medina class + upper limit of the class before the median class ÷ 2 = (35+34)/2 = 34.5
Σf/2 = 75/2 = 37.5
Cfb = Cumulative frequency of class before the median class = 5+10+20 = 35
fm = frequency of the Medina class = 22
Cw = Class width = upper class boundary - lower class boundary = 44.5-34.5 = 10
Median = 34.5 + [(37.5-35)/22] × 10
= 34.5 + [2.5/22] × 10
= 34.5 + [25/22]
= 34.5 + 1.1
= 35.6 ≈ 36
c. Mode = Lm + [∆¹/(∆¹+∆²)]Cw
Modal class = (35-44) [i.e. the class with the highest frequency, which is where our mode falls in]
Lm = lower class boundary of the modal class = lower limit of the modal class + upper limit of the class before the modal class ÷ 2 = (35+34)/2 = 34.5
∆¹ = difference between the frequency of the modal class & the frequency of the class before the modal class = 22 - 20 = 2
∆² = difference between the frequency of the modal class & the frequency of the class after the modal class = 22 - 13 = 9
Cw == Upper class boundary - Lower class boundary = 44.5 - 34.5 = 10
Mode = 34.5 + [2/(2+9)] × 10
= 34.5 + [2/11] × 10
= 34.5 + [20/11]
= 34.5 + 1.8
Mode = 36.6 ≈ 37
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 3% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 2% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June.
(The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.) June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris. 5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards. 6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards. 8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards. 10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year. 17 Received the amount due from Access. 18 Received Morris’s check in full payment for the purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.
June 4
Dr Accounts receivable 650
Cr Sales revenue 650
June 4
Dr Cost of goods sold 400
Cr Inventory 400
5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.
June 5
Dr Accounts receivable 6,693
Dr Credit card fees 207
Cr Sales revenue 6,900
June 5
Dr Cost of goods sold 4,200
Cr Inventory 4,200
June 5, after Zisa transfers the money
Dr Cash 6,693
Cr Accounts receivable 6,693
6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.
June 6
Dr Unbilled revenue 5,733
Dr Credit card fees 117
Cr Sales revenue 5,850
June 6
Dr Cost of goods sold 3,800
Cr Inventory 3,800
8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.
June 8
Dr Unbilled revenue 4,263
Dr Credit card fees 187
Cr Sales revenue 4,350
June 8
Dr Cost of goods sold 2,900
Cr Inventory 2,900
10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.
June 10
Dr Accounts receivable 9,996
Cr Unbilled revenue 9,996
13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.
June 13
Dr Bad debt expense 429
Cr Allowance for doubtful accounts 429
17 Received the amount due from Access.
June 17
Dr Cash 9,996
Cr Accounts receivable 9,996
18 Received Morris’s check in full payment for the purchase of June 4.
June 18
Dr Cash 650
Cr Accounts payable 650
Revising for Conciseness - Rejecting Redundancies and PurgingEmpty Words
Concise writing will save your reader time and make your message easier to understand. During phase three of the 3-x-3 writing process, revise for conciseness by rejecting redundancies and purging empty words.
Which of the following options are redundancies?
1) Adequate enough
2) Combined together
3) Big in size
4) Absolutely essential
Determine which empty words can be purged from the following sentence to make it more concise.
Answer: A. 1) Adequate enough
2) Combined together
3) Big in size
4) Absolutely essential
b. 3) “That was unfinished”
Explanation:
A. Redundancies in phrases refer to the repetition of words with the same or similar meanings which gives off the impression of saying the same things twice. All the options listed are therefore redundancies.
By saying something is Adequate which means that it is sufficient for something one does not again need to include enough because it is the same as sufficient as well.
By also saying Combined, one has already inferred that something was brought together. Including together again is redundant because the together is already in the definition of combined.
Big in size is another redundancy because when a person describes something as Big, they are already referring to the size of the thing in question. Adding in size is therefore not needed.
Finally, the Absolutely in the phrase makes the phrase redundant. When something is said to be essential it means that it is absolutely needed or crucial. To say something is Absolutely Essentially is like saying something is an Essential Essential.
B. The Johnson report had already been said to contain incomplete data. To go on to say that the data is Unfinished is a redundancy because by saying that it is incomplete it means that the data is by definition Unfinished. Removing the “That was unfinished” bit fixes the sentence.
Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No. 222, $4,000. During April, a summary of source documents reveals the following:
For Materials Requisition Slips Labor Time Tickets
Job No. 221 $1,200 $1,600
222 1,700 2,200
223 2,400 2,900
224 2,600 2,800
General use 600 400
Totals $8,500 $9,900
Foster applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 221 is completed during the month.
Required:
Prepare summary journal entries to record the raw materials requisitioned, factory labor used, the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.
Answer:
Foster Manufacturing
Journal Entries
Sr. No Particulars Debit Credit
1 Work in Process Job No. 221 1200
Work in Process Job No. 222 1700
Work in Process Job No. 223 2400
Work in Process Job No. 224 2600
Factory Overhead Indirect Materials 600
Materials Inventory 8500
Materials Requisitioned to specific jobs work in process inventory.
2. Direct Labor Work in Process Job No. 221 1600
Direct Labor Work in Process Job No. 222 2200
Direct Labor Work in Process Job No. 223 2900
Direct Labor Work in Process Job No. 224 2800
Indirect Labor 400
Payroll 9500
Factory OverheadControl 400
Direct Labor used for specific jobs.
3. Work in Process Job No. 221 1120
Work in Process Job No. 222 1540
Work in Process Job No. 223 2030
Work in Process Job No. 224 1960
Manufacturing Overheads 6930
Manufacturing Overheads applied to specific jobs at the rate of 70%.
4. Finished Goods Inventory $ 7940
Opening Work in Process Job No. 221 3600
Work in Process Job No. 221 Materials 1200
Work in Process Job No. 221 Direct Labor 1600
Work in Process Job No. 221 MOH 1540
Job 221 completed and transferred to finished goods.
On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of $107 million. The bonds mature on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 7%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)
Answer:
$93,725,580.00
Explanation:
The market price of the bond is the present value of annual coupon payment plus the present value of face amount receivable at the end of the bond tenure.
Annual coupon interest=face amount*stated rate=$107,000,000*6%=$6,420,000.00
Face amount=$107,000,000
The discount factor for annual coupon is the present of 30 years annuity(2048-2018) at 7% market rate, which is 12.4090
The discount factor for the face value is 0.1314
Price of the bond=($6,420,000.00*12.4090)+($107,000,000*0.1314)=$93,725,580.00
Unfortunately, Tori doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next three years to be able to pay for the repairs. Her account currently has $5,000, which, along with her additional contributions, is expected to continue earning 9% annual interest. If she makes equal contributions each year, how large must each contribution be for Tori to have $9,000 after three years
Answer:
Annual deposit= $770.22
Explanation:
Giving the following information:
PV= 5,000
FV= 9,000
i= 0.09
n= 3
First, we need to calculate the final value of the first $5,000. We will use the following formula:
FV= PV*(1+i)^n
FV= 5,000*1.09^3
FV= 6,475.15
Now, we calculate the annual deposits for the difference:
Investment difference= 9,000 - 6,475.15= 2,524.85
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (2,524.85*0.09) / [(1.09^3)-1]
A= $770.22
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
1. Andrea invested $13,500 cash in the business.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:
A. $31,400.
B. $39,200.
C. $31,150.
D. $40,175.
E. $30,875.
Answer: D. $40,175
Explanation:
The balance in the Capital account reported on the Statement of Owner's Equity will include the Capital contributions of Andrea Apple to the business as well as the Net income from operations also known as Retained Earnings.
The Net Income for the month will be revenue less expenses.
Revenue
$5,700 cash and $2,750 on account for services provided in January.
Revenue is therefore,
= 5,700 + 2,750
= $8,450
Expenses
Expenses include the rent paid of $1,500 and the $275 paid for January Utilities.
= 1,500 + 275
= $1,775
Net Income = Revenue - Expenses
Net Income = 8,450 - 1,775
Net Income = $6,675
The Capital that Mr. Apple brought into the business refers to anything he contributed to the business whether in cash or otherwise.
The Capital therefore is,
- The $13,500 cash and the $20,000 worth of equipment.
The Capital Mr. Apple brought into the business is therefore,
= 13,500 + 20,000
= $33,500
The balance on the capital account will therefore be,
= Capital + Net Income
= 33,500 + 6,675
= $40,175
Option D. is correct.
Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the smallest credit risk. Assume a 10 year Treasury trades with a YTM of 5%.a. A Ba1 corporate bond ______b. A ten-year BBB- corporate bond with a YTM of 7% ______c. A secured loan from Argosy Gaming, which is a B- rated firm ______d. A senior subordinated bond from Argosy Gaming
Answer:
a. A Ba1 corporate bond 2 (not investment grade)
b. A ten-year BBB- corporate bond with a YTM of 7% 3 (medium risk but still investment grade)
c. A secured loan from Argosy Gaming, which is a B- rated firm 4 (less risky since it is backed by a collateral)
d. A senior subordinated bond from Argosy Gaming 1 (highest risk)
Explanation:
There are two major bond rating agencies in the US: Moody's and Standard & Poor's.
Their rankings are very similar, although the letters vary a little:
AAA: safest
AA: low risk
A: low risk
BBB: medium risk
BB: a little bit more riskier
B: risky
CCC: very high risk
CC: even riskier
C: riskiest
D: junk, in default
Fleet Delivery Corporation is a public company with a market capitalization of less than $75 million. Fleet is poised to issue securities in a transaction that, under the Securities Act of 1933, is "exempt." This enables Fleet to ______________.
Answer:
This enables Fleet to reduce costs of regulatory compliance in relation to the security issue
Explanation:
When a company is exempt under the Securities Act of 1993,this implies that when issuing securities in the market place,the stock exchange ,the company is not required to produce audited financial statements.
Auditing financial statements sometimes cost fortunes especially when it is also required that one of the Big-4 professional firms is to be consulted.
By not requiring audited financials,the costs of audit is saved,hence cost of compliance with exchange rules is reduced overall
Suppose you are provided with the following data for your country for a particular month: 200 million people are working, 20 million are not working but are looking for work, and 40 million are not working and have given up looking for work. If we treated discouraged workers as unemployed, what would the unemployment rate for that month be
Answer:
60%
Explanation:
Waterway Industries has equipment with a carrying amount of $2510000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2043000. The equipment is expected to be used in operations in the future. What amount (if any) should Waterway report as an impairment to its equipment
Answer:
No impairment
Explanation:
Since the future net cash flows are still recoverable and they are higher than carrying amount, none needs to be reported
Total revenue is defined as a. price minus quantity sold. b. price divided by quantity sold. c. price multiplied by quantity sold. d. quantity divided by price sold. e. price plus quantity sold.
Answer:
c. price multiplied by quantity sold
Explanation:
The total revenue is the amount of money that a company earns from selling products and services. As it is the quantity that a business received from its sales, it is calculated by multiplying the price of a product for the number of units sold. According to this, the answer is that the total revenue is defined as price multiplied by quantity sold.
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2017 Estimated Overhead Expected Use of Cost Drivers per Activity Activity Cost Pools Ordering and receiving Food processing Packaging $94,582 479,085 13,100 orders 61,500 machine hours 1,395,280 428,000 labor hours For 2017, the company had 11,300 orders and used 51,200 machine hours, and labor hours totaled 491,000 Calculate the overhead rates for each activity. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Ordering and receiving Food processing Packaging 7.22 per order 7.79 per machine hour 3.26 per labor hour
What is the total overhead applied?
Total overhead applied $
Answer:
Total allocated overhead= $2,081,094
Explanation:
Giving the following information:
For 2017, the company had 11,300 orders and used 51,200 machine hours, and labor hours totaled 491,000
Overhead rates for each activity:
Ordering and receiving= $7.22 per order
Food processing= $7.79 per machine hour
Packaging= $3.26 per labor hour
To allocate overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Ordering and receiving= 7.22*11,300= $81,586
Food processing= 7.79*51,200= $398,848
Packaging= 3.26*491,000= $1,600,660
Total overhead= $2,081,094
Under Tim Cook's leadership, the emphasis at Apple remains on innovation, which is valued in the marketplace. Because of this, it is important that Cook assemble what type of top management team? a. One that is built from the external labor market b. One that is built from the internal labor market c. One that is homogeneous d. One that is heterogeneous
Answer:
D. One that is heterogeneous
Explanation:
It is important that Tim Cook assembles a heterogeneous top management team.
A heterogeneous top management team introduces a variety of perspectives to the company with greater possibility for strong competitive action. It creates more tendencies for people to think outside the box, giving way to more creative decision making, innovation, and strategic actions. It also promotes debate.
Therefore Tim Cook should assemble a heterogeneous top management team since innovation is one of its characteristics.
When the government sets an effective price floor suppliers are helped and consumers are helped. suppliers are hurt and consumers are helped. suppliers are helped and consumers are hurt. This is an incorrect answer. Have a nice day! supply increases due to the increase in price.
Answer:
suppliers are helped and consumers are hurt.
Explanation:
A price floor is when the government or an agency of the government sets the least price a good or service can be purchased.
A price floor is usually set above equilibrium price. As a result, the profit earned by sellers increase while the good becomes more expensive for consumers.
I hope my answer helps you
Clipper Corporation is considering an investment of $70,000 in a project that will generate annual net operating income of $12,950. If the division planning to make the investment currently has a return on investment of 20% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment
Answer and Explanation:
The computation is shown below:
But before reaching any decision, first we have to find out the ROI for new investment which is
ROI of new investment = net operating income ÷ investment
= $12,950 ÷ $70,000
= 18.50%
Now
If investment taken place, then overall ROI is
= Total net operating income ÷ Total average operating assets
= ($380,000 + $12,950) ÷ ($2,000,000 + $70,000)
= 18.98%
As we can see that the overall ROI i.e 18.98% is less than the currently ROI i.e 20% so he should not recommend ROI as it is shows fallen