Answer:
Debit Retained earnings $36,000; credit Income Summary $36,000
Explanation:
The income statement has its last line as the net income/loss for the period. The income summary account is closed into the retained earnings.
The expense in the income statement is closed by crediting the account and debiting the income summary. For revenue, the account is debited and the income summary is credited.
Hence where the income summary account has a debit balance of $36,000, the entries to close it will be Debit Retained earnings $36,000; credit Income Summary $36,000
In the first step in the grievance procedure, an employee who believes the company has violated the contract complains to the ___, who may accept or assist in writing up a grievance. Group of answer choices local negotiating committee arbitrator union steward industrial relations representative
Answer:
Complains to the Employer who may assist in writing up a grievance.
Explanation:
In the first step in grievance procedure, the employee complains to the employer giving their details of grievance and the employer makes an initial attempt to resolve the grievance informally.
The Acas code of practice on discipline and grievance procedure provides the guidance that the employers are to follow in regards to grievance process.
Choose the appropriate term for each statement. Word Choices:
(A) income
(B) interest rate
(C) expectations
(D) wealth
(E) household debt
(F) taxes
1. Keynesian economists think that _____ is the key determinant of consumption and spending.
2. Classical economists think that the higher the _____, the more people will save, which means that they will consume less.
3. A person's _____ about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.
4. The more _____ the person has, the less current consumption he/she undertakes.
5. A person's total income can be divided into three components: consumption, savings, and _____.
6. Savings, which is total income minus consumption and taxes, can be used to create more _____.
The provided statement terms are filled in with the appropriate economic aspects reflecting individual and broad economic behaviors in response to income, interest rates, expectations, household debt, taxes, and wealth.
Explanation:The following are the appropriate terms for each statement:
Keynesian economists think that (A) income is the key determinant of consumption and spending.Classical economists think that the higher the (B) interest rate, the more people will save, which means that they will consume less.A person's (C) expectations about how much income he/she will earn in the future as well as future prices could shape how much he/she spends and saves today.The more (E) household debt the person has, the less current consumption he/she undertakes.A person's total income can be divided into three components: consumption, savings, and (F) taxes.Savings, which is total income minus consumption and taxes, can be used to create more (D) wealth.This selection of terms represents key elements of macroeconomic theory as it relates to savings, spending, and income creation.
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Ibis Paper Company prepared the following static budget for November: Static Budget Units/Volume 11 comma 000 Per Unit Sales Revenue $ 20.00 $ 220 comma 000 Variable Costs 6.00 66 comma 000 Contribution Margin 154 comma 000 Fixed Costs 13 comma 500 Operating Income/(Loss) $ 140 comma 500 If a flexible budget is prepared at a volume of 13 comma 600 units, calculate the operating income. The production level is within the relevant range.
Answer:
If a flexible budget is prepared at a volume of 13 comma 600 units, Operating Income (gain) $176,900
Explanation:
The production level is within the relevant range. If a flexible budget is prepared at a volume of 13 comma 600 units, Fixed Costs will not change.
Total Sales = Sales per unit x 13,600 = $20.00 x 13,600 = $272,000
Total Variable costs = $6.00 x 13,600 = $81,600
Operating Income = Total Sales - Total Variable costs - Fixed Costs = $272,000 - $81,600 - $13,500 = $176,900
One company executive has expressed concern about the operating loss that has occurred in Product Line 2 and has suggested that Product Line 2 be discontinued. If Product Line 2 were to be dropped, the operating income of the company would:_______.
Answer:
Increase
Explanation:
Operating income is a company's profit after deducting operating expenses which are the cost of running operations daily.
When the product line 2 is dropped cost of running operations will reduce thereby increasing the operating income.
Aspects of fiscal policy Suppose the economy had been producing at potential output but is now producing above it. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply. ? a. A tax increase b. A rise in spending to prevent coastal erosion c. A reduction in spending on new road constructiond. A tax cut In the preceding scenario, is the discretionary fiscal policy needed to bring the economy closer to potential output an example of expansionary fiscal policy or contractionary fiscal policy?a. Expansionaryb. Contractionary
Answer:
d. A tax cut
a. Expansionary
Explanation:
Fiscal policy refers to the use of government spending and tax policy to influence how the economy operates. Discretionary fiscal policy is a type of policy that uses expansionary or contractionary measures in order to change the course of the economy. This can be further divided in two types: expansionary and contractionary.
Taylor and Sons buys equipment on Aug. 1, 2008 for $100,000 cash. They estimatethe equipment will have a salvage value of $13,000 and a useful life of 5 years. a. Write the journal entry to record depreciation for 2008.
Answer:
Journal Entry
Dr. Depreciation Expense $7,250
Cr. Accumulated Depreciation $7,250
Explanation:
Depreciation is a expense which is charged against an asset over its useful life due to wear and tear of that asset. This expense is recorded as and Expense in Income statement and accumulated in an contra asset account asset account until the disposal of the asset.
Cost of Equipment = $100,000
Useful life of the asset = 5 years
Salvage value of the asset = $13,000
Depreciable value of the asset will be expenses equally every year over 5 years.
Depreciable value = Cost of the asset - Salvage value = $100,000 - $13,000 = $87,000
Depreciation Expense = Depreciable Value / Useful Life of the asset = $87,000 / 5 years = $17,400 per year
As only 5 month have been passed in 2008, the depreciation expense account will be charged as follow
Depreciation charge in 2008 = $17,400 x 5 / 12 = $7,250
Historically, common crimes (such as robbing a bank) were punished more severely than white collar crimes (like embezzlement). Why do you think that is? Since 2003, there has been a steady push to punish white collar crimes at least as severely as common crimes are punished. Do you feel that this is in the best interest of society? Should white collar crimes be punished more severely, less severely, or the same as comparable common crimes?
Answer:
They must be severely punished.
Explanation:
Common crimes earlier were more threat full to the society than any other act and that is the reason they were mentioned more.
Since, the new era has new crimes, and one of the kind is white collar crimes which happens when companies’ heads try to misguide people with false financial reports, adding more losses to avoid taxes and sometimes showing more profit to attract potential investors, now it has become even severe.
Whichever the case, both crimes ultimately effect society and its stakeholders, however, common crimes are more frequent than white collar crimes.
Hence, they must be severely punished because they are committing crimes under the disguise of an innocent professionals.
In order to earn some extra money to pay for college, you have decided to open your own tattoo parlor one block from campus. You come up with a business plan and realize that you will need financing to get your business off the ground. You appear on a reality show where you pitch your idea to potential investors. Someone likes your business idea, and they write you a check to get things going. Is this financing option direct or indirect?
Answer:
Indirect Financing
Explanation:
Direct financing is when the borrower borrows money directly from the market such as issuing the stocks/shares directly in the market.
While the indirect financing is the type of financing when the borrower does borrows the fund via the help of intermediaries or third parties.
Hope this helps and clear things up.
Thank You.
Answer:
The correct answer is: Indirect.
Explanation:
Indirect financing refers to pooling money from sources that are not from the entrepreneurs themselves. Investors come into play to provide entrepreneurs the capital needed for them to develop their business idea. For such a purpose, entrepreneurs make detailed business plans where they include different analyses of why the venture could be successful in an attempt to attract capital.
Instructions: Read the Grand View Grocers Corporation case below.
Grand View Grocers Corporation, headquartered in Clewiston, Florida, is among the nation’s top grocery chain companies, with over $34 billion in revenue. It operates and owns approximately 1,500 grocery stores in 10 states and will be expanding operatons to Washington, D.C. in the near future.
Grand View Grocer’s Corporation’s operating strategy distinguishes it from other grocery chain companies. Each grocery store has a Training and Development Methods manager that allows decisions to be made locally, close to the client. This also makes Grand View Grocer Corporation’s service more responsive, reliable, and empathetic to its customers.
Recently, Grand View Grocers Corporation has identified a that there is an increase in the annual turnover rate for cashiers nationwide. The increase was found in newly hired cashiers, so it was determined that on-the-job training was ineffective.
Under the direction of the store manager, cashiers perform a variety of tasks, including:
*Receive payment by cash, check, credit cards, vouchers, or automatic debits.
*Issue receipts, refunds, credits, or change due to customers.
*Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and that there is adequate change.
*Greet customers entering establishments.
*Maintain clean and orderly checkout areas.
*Establish or identify prices of goods, services or admission, and tabulate bills using calculators, cash registers, or optical price scanners.
*Issue cashier’s checks, money orders, mailing stamps, and redeem food stamps and coupons.
*Resolve customer complaints.
*Answer customers' questions, and provide information on procedures or policies.
*Cash checks for customers.
*Weigh items sold by weight in order to determine prices.
*Calculate total payments received during a time period, and reconcile this with total sales.
*Compute and record totals of transactions.
*Sell lotto tickets and other items to customers.
*Keep periodic balance sheets of amounts and numbers of transactions.
*Bag, box, wrap, or gift-wrap merchandise, when needed.
*Sort, count, and wrap currency and coins.
*Process returns and exchanges.
*Request information or assistance using paging systems.
*Stock shelves, and mark prices on shelves and items, when needed.
*Compile and maintain non-monetary reports and records.
Essential cashier functions include the following:
Perform for or Working Directly with the Public -- Performing for people or dealing directly with the public. This includes serving customers in restaurants and stores, and receiving clients or guests.
Establish and Maintain Interpersonal Relationships -- Developing constructive and cooperative working relationships with others, and maintaining them over time.
Get Information -- Observing, receiving, and otherwise obtaining information from all relevant sources.
Identify Objects, Actions, and Events -- Identifying information by categorizing, estimating, recognizing differences or similarities, and detecting changes in circumstances or events.
Process Information -- Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Describe in 350- to 525- words the training method or combination of training methods that you would recommend for training.
Justify in 350- to 525- words your choice of method(s).
Solution and Explanation:
The following would be the specifications of the training module for the cashiers:
1. There would be multiple modules consisting of the job responsibilities as refresher courses and at the same time, the new market conditions and additional job related things that they must be doing in the near future would be the other modules.
2. The key areas that the multi module training program would be focussing on would be, customer relationship training, system and data maintenance training, documentation and accounting module
3. The training intervention would be preferably on job and alongside there would be a mentor/coach allotted to the cashiers who are experts in the field preferably store managers and functional experts. For the system related modules, they would be having simulation based modules. Only during the non rush-hours there would be offline training and update sessions with respect to the progress made on their training and the productivity improvement they have achieved over the past week.
The incentives associated with the productivity improvement would be translated into incentivising the cashiers to take up the training modules. The weekly update on the productivity improvement and the progress in their training would inturn make them competitive in nature. While coming to why such distribution has been done with respect to the modules, essentially if we look at the job of the cashiers, it’s a round the clock job and they would lose out on precious working hours if the training is done on an offline basis.
The simulations would definitely help understand the process but the on job training would be the one that is standing out, as they would be continuing their task and at the same time, the result is right in front on them to experience and therefore the distribution of the modules to not stress them out and at the same time not losing out on their time as well.
What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles?
A. Does the slope of the regression line indicate that a strong relationship exists between manufacturing costs and the number of drink bottles produced?
B. How good is the goodness of fit? That is, how well does the estimated line fit the data?
C. Can Garcia's competitors manufacture drink bottles at a cost less than Garcia?
D. Is the relationship between total manufacturing costs and quantity of drink bottles economically plausible
Answer:D
Explanation:
Is the relationship between total manufacturing costs and quantity of drink bottles economically plausible.
Final answer:
To ensure the equation accurately predicts the cost of manufacturing drink bottles, one must evaluate the slope of the regression line and the goodness of fit. These statistical measures directly impact the confidence in the equation's predictive accuracy, while economic comparisons and plausibility provide important context.
Explanation:
To be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles, we need to consider several factors. Firstly, let's analyze whether the slope of the regression line indicates a strong relationship between manufacturing costs and the number of drink bottles produced. A steep slope either positive or negative could indicate a strong relationship but would need to be supported by a high correlation coefficient for confirmation. Secondly, assessing the goodness of fit is crucial as it tells us how well the estimated line fits the data. Metrics such as R-squared can provide insight into the percentage of variance in the dependent variable that is explained by the independent variable.
Furthermore, understanding the economic aspect, such as if Garcia's competitors can manufacture drink bottles at a lower cost, is essential but not directly related to the statistical accuracy of the equation. Similarly, evaluating whether the relationship between total manufacturing costs and quantity of drink bottles is economically plausible is vital for real-world application but again does not directly impact the statistical validity of the regression analysis.
In summary, both the strength of the relationship indicated by the slope and the regression line's goodness of fit are direct factors that influence the confidence in the equation's predictive accuracy. Comparisons to competitors and economic plausibility provide necessary business context but do not directly affect the accuracy of the predictive model.
When car makers began to cut the costs of producing cars by designing the chassis, engine, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. Based on this information, this scenario could potentially illustrate
Options:
A.economies of scale.
B. diseconomies of scale.
C. constant returns to scale.
D. diminishing marginal product
Answer:A. Economies of scale.
Explanation: Economies of scale is a term used in Economics to describe the as the costs benefits and advantages that a business firm enjoys through efficient utilisation of its processes and resources.
Economies of scale is also a major advantage of large scale business organisations as it ensures that the size of manufacturing enhances their capacity to compete favourably with reduced cost due to their size and multiple stream of investments.
In an economy, the working-age population is 100 million. Of this total, 80.0 million workers are employed. 3.0 million workers are unemployed. 14.0 million workers are not available for work (homemakers, full-time students, etc.). 2.0 million workers are available for work but are discouraged and thus are not seeking work. 1.0 million workers are available for work but are not currently seeking work due to transportation or childcare problems.
Answer:
Unemployment rate = 3.6%
Explanation:
Unemployment is the number of people who are willing to work and are actively seeking work but are unable to find it. The unemployment rate is the unemployed / total number of people in the labor force x 100.
In the above scenario, the unemployed is 3 million people. The others are either already employed, unavailable, unwilling or not seeking work.
The labour force comprises of those who are employed and unemployed, that is 80million + 3million = 83 million.
Hence, unemployment rate = (3/83) x 100 = 3.6%
The student's question involves calculating and understanding the employment, unemployment, and labor force participation rates within an economy, as demonstrated by the working-age population and labor force definitions.
Explanation:The question pertains to the concepts of employment, unemployment, and labor force participation in an economy. In the given scenario, the working-age population is 100 million, with 80.0 million employed, 3.0 million unemployed, 14.0 million not available for work, 2.0 million discouraged workers, and 1.0 million available for work but not seeking due to other problems. This resembles the situation often illustrated in economic statistics such as those represented by the Bureau of Labor Statistics (BLS).
The labor force includes all the employed and unemployed individuals actively seeking employment. To calculate the unemployment rate, we consider only those individuals who are part of the labor force, i.e., those who are employed plus those who are unemployed and looking for work. People who are not in the labor force like homemakers, full-time students, discouraged workers, and those not seeking work due to transportation or childcare problems are excluded from the labor force calculations.
The following transactions were selected from the records of Evergreen Company:
July 12 Sold merchandise to Wally Butler, who paid the $940 purchase with cash. The goods cost Evergreen Company $570.
16 Sold merchandise to Claudio’s Chair Company at a selling price of $4,940 on terms 3/10, n/30. The goods cost Evergreen Company $3,470.
19 Sold merchandise to Otto’s Ottomans at a selling price of $2,970 on terms 3/10, n/30. The goods cost Evergreen Company $1,870.
23 Received cash from Claudio’s Chair Company for the amount due from Jul-16.
31 Received cash from Otto’s Ottomans for the amount due from July Jul-19.
Required:
Compute the amount of revenue to be reported for the month ended July 31. (Round your answer to 2 decimal places.)
The total revenue for Evergreen Company in the month of July is $8,850.00, which is the sum of all the selling prices of the merchandise sold within that month.
Explanation:The revenue for Evergreen Company can be calculated by summing up the selling price of all merchandise sold within the month of July. In this case, the transactions are as follows:
July 12: $940July 16: $4,940July 19: $2,970The total revenue can be found by adding all these amounts together. So, $940 (from July 12) + $4,940 (from July 16) + $2,970 (from July 19) = $8,850.00. Hence, Evergreen Company should report a revenue of $8,850.00 for the month ended July 31.
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The total revenue for Evergreen Company for the month ended July 31 is $8,850. This includes cash sales and credit sales made within the month, as revenue is recognized when earned, not when cash is received.
The question requires us to calculate the total revenue for Evergreen Company for the month ended July 31. Following the revenue recognition principle in accounting, revenue is recognized when it is earned, regardless of when the payment is received. Thus, we will consider all sales made within the month, whether cash was received or not.
July 12: Sold merchandise for cash $940 (immediate revenue recognition).July 16: Sold merchandise on account $4,940 (revenue recognized on the date of sale).July 19: Sold merchandise on account $2,970 (revenue recognized on the date of sale).To calculate total revenue, we add up these amounts:
Total revenue = $940 + $4,940 + $2,970 = $8,850.
Therefore, the total revenue is $8,850.
An electronic ________ is essentially a collection of personal computers networked together with sophisticated software tools to help group members solve problems and make decisions through interactive electronic idea generation, evaluation, and voting. tag cloud data interchange folksonomy fund transfer meeting system
Answer:
The correct answer is letter "E": meeting system.
Explanation:
An Electronic Meeting System (EMS) is a form of a networking-based group in which its members are connected through computers so they collectively can take decisions, solve problems, discuss over certain topics, and provide anonymous valuable feedback. EMS is used as a meeting platform for large entities with centralized decision-making but a presence in different regions around the world.
EMS disadvantage is relying on different internet connections for the meeting. If one of them is not stable the meeting is likely to be interrupted frequently.
Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $440,600; Purchase Returns and Allowances $11,980; Purchase Discounts $8,247; and Freight-in $16,900. Tracy Company has beginning inventory of $57,710, ending inventory of $88,110, and net sales of $649,500.
Determine the amounts to be reported for cost of goods sold and gross profit.
Cost of goods sold:
Gross profit:
Answer:
(a) $406,873
(b) $242,627
Explanation:
Given that,
Purchases = $440,600;
Purchase Returns and Allowances = $11,980;
Purchase Discounts = $8,247; and
Freight-in = $16,900.
Beginning inventory = $57,710,
Ending inventory = $88,110
Net sales = $649,500
Cost of goods sold:
= Beginning inventory + Purchases + Freight-in - Purchase Returns and Allowances - Purchase Discounts - Ending inventory
= $57,710 + $440,600 + $16,900 - $11,980 - $8,247 - $88,110
= $406,873
Gross profit:
= Net sales - Cost of goods sold
= $649,500 - $406,873
= $242,627
he accounting for the allocation of overhead costs is a three-step process and occurs at three different points in the accounting cycle. List each of the three steps. For each step indicate when the step occurs and why the step is needed.
Answer:
The correct answer is:
1. Calculating the predetermined overhead rate before the period .
2. Allocating overhead during the period .
3. Adjusting overhead at the end of the period.
Explanation:
A pre-determined overhead rate is the rate used to apply overload manufacturing to work in the inventory process. The pre-determined overhead rate is calculated before the period begins. The first step is to estimate the amount of the activity base that is required to support operations in the next period. The second step is to estimate the total manufacturing costs at that level of activity. The third step is to calculate the predetermined overhead rate by dividing the estimated total manufacturing overhead from the estimated total amount of cost factor or activity base. Common bases of activity used in the calculation are direct labor costs, direct working hours, or machine hours.
When calculating the cost of a product or service it is necessary to take into account direct and general or indirect expenses. These two elements influence the final price of an item or service. Determining what direct expenses are is very simple. However, when establishing overhead or indirect expenses, things change. Even so, we recommend that when determining the final price of a product or service, you also take into account the overhead.
The adjustments of expenses are those that before issuing financial statements, the necessary adjustments must be made to comply with the technical allocation rule, record the economic facts that have not been recognized, correct the entries that were made incorrectly and recognize the effect of the loss of purchasing power of the functional currency. These adjustments and corrections are necessary to be able to issue financial statements adjusted to the economic and financial reality of the company, in addition to complying with accounting principles.
Final answer:
The accounting for the allocation of overhead costs is essential for business financial management, consisting of determining the cost structure, allocating overhead costs, and reviewing and adjusting these allocations. This three-step process helps businesses accurately reflect production costs and make informed pricing decisions.
Explanation:
The accounting for the allocation of overhead costs involves a three-step process, crucial for accurately reflecting production costs and making informed pricing and budgeting decisions. Each step tackles a specific aspect of cost allocation, necessary for thorough financial management within a company.
Determine the cost structure: This initial step involves calculating the total, average variable, average total, and marginal costs based on the firm’s fixed and variable costs. This stage occurs at the beginning of the accounting cycle to establish a foundation for overhead allocation, enabling businesses to understand their cost composition for more effective financial planning.Allocation of overhead costs: After determining the cost structure, the next step is to allocate those overhead costs to different products or services. This is crucial for businesses, especially those with diverse offerings like Apple, to accurately assess the cost implications of each product or service. It makes the pricing decisions more data-driven.Review and adjustment: The final step occurs at the end of the accounting cycle, where businesses review the allocated overhead costs against actual expenditures. Any discrepancies necessitate adjustments to ensure the overhead allocations reflect the true cost of production, safeguarding against under or overestimation in future cycles.Eight years ago you borrowed $142,000 at a fixed annual rate of 10.5 percent p.a. to buy a house. Your loan is a 30-year, monthly payment loan. Calculate the current payoff of the loan (immediately after the 112th payment) assuming that you did not make any additional payments for the first 112 payments
Answer:
[tex]Payoff=\$131,338.81[/tex]
Explanation:
Except for other fees or interests that you might owe, the payoff should be equal to the debt balance. Then, assuming no other fees or interests that you might owe, you just must calculate the balance of your debt after 112 payments (11 years, not 8).
There is a very important formula to calculate the outsdanging balance of a loan, whithout calculating the complete sheet of all the monthly payments:
[tex]balance=Loan\times \dfrac{[(1+r)^n-(1 + r)^m]}{[(1+r)^n-1]}[/tex]
Where:
balance is the outstanding balance after m monthsr i s the fixed monthly rate: 10.5%/12 = 0.105/12n is the number of total months of the loan: 30years × 12month/year = 360 monthsm: 112[tex]balance=\$142,000\times \dfrac{[(1+(0.105/12))^{112}-(1 + (0.105/12))^{112}]}{[(1+(0.105/12))^{360}-1]}[/tex]
[tex]balance=\$131,338.81[/tex]
A random sample of 40 students were asked how much money they spent on entertainment in the last week. They spent an average of $28, with a standard deviation of $18. What is the 90% confidence interval for mean amount spent on entertainment?
Answer:
In between $23.3 and $32.7
Explanation:
standard deviation = $18
sample mean = $28
sample size = 40 students
Significance level = 1 - confidence interval = 1 - 0.9 = 0.1
Using the confidence interval calculator
90% Confidence Interval: $28 ± $4.68
($23.3 to $32.7)
With 90% confidence the population mean is between 23.3 and 32.7 based on 40 samples."
Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow:
Units Materials Labor Overhead
Work in process, beginning 5,000 $4,320 $1,040 $1,790
Units started in process 45,000
Units transferred out 42,000
Work in process, ending 8,000
Cost added during the month $52,800 $21,500 $32,250
--------------------------------------------------------------------------------
The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead.
Required:
Assume that the company uses the weighted-average method of accounting for units and costs.
(a) Compute the equivalent units for the month for the first department.
Materials Labor Overhead
Equivalent units of production ? ? ?
--------------------------------------------------------------------------------
(b) Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Materials Labor Overhead
Cost per equivalent unit $ ? $ ? $ ?
--------------------------------------------------------------------------------
Answer:
Explanation:
(a) Compute the equivalent units for the month for the first department.
*Ending work in process units (materials) = Ending work in process inventory*Percentage completed = 8,000*0.75 = 6,000 units
Units transferred out = 42,000
Ending work in process = 6,000
Equivalent units of production(materials) = 42,000+6,000 = 48,000(a2)
Ending work in process units (labor) = Ending work in process inventory*Percentage completed = 8,000*0.50 = 4,000
Equivalent units of production(labor) = 42,000+4,000 = 46,000(a3)
Ending work in process units = Ending work in process inventory*Percentage completed = 8,000*0.50 = 4,000
Equivalent units of produuction (overheads) = 42,000+4,000 = 46,000(b1) Determine the costs per equivalent unit for the month
With respect to materials:
Total cost = beginning work in process + cost added during year = 4320 + 52,800 = $57,120
Cost per equivalent units = Total cost/ Equivalent units of production = 57,120/48,000 = 1.19
(b2) With respect to labor:
Total cost = beginning work in process + cost added during year = 1040 + 21,500 = $22,540
Cost per equivalent units = Total cost/ Equivalent units of production = 22,540/46,000 = 0.49
(b3) With respect to overhead:
Total cost = beginning work in process + cost added during year = 1790 + 32,250 = $34,040
Cost per equivalent units = Total cost/ Equivalent units of production = 34,040/46,000 = 0.74
On March 31, 2018, the Freeman Company leased a machine. The lease agreement requires Freeman to pay 10 annual payments of $6,000 on each March31, with the first payment due on March 31, 2018. Assuming an interest rate of 10% and that this lease is treated as an installment sale, Freeman willinitially value the machine by multiplying $6,000 by which of the following factors?A)Present value of $1 at 10% for 10 periods.B)Present value of an ordinary annuity of $1 at 10% for 10 periods.C)Present value of an annuity due of $1 at 10% for 10 periods.D)Future value of an annuity due of $1 at 10% for 10 periods.
Answer:
Correct answer is: Present value of annuity due of $1 at 10% for 10 periods
10 annual payments to be made each of $6000 with the Discount factor of Present value of annuity due of $1 at 10% for 10 periods Freeman will get the initial value (Present value which is to be paid in future)
In an hour, Henry can wash 20 windows or clean 2 bath tubs. In an hour, Rose can wash 30 windows or clean one bath tub. If their father Dave allows them to trade chores to achieve gains from trade, who will specialize in what?
Henry will wash the windows; Rose will clean bath tubs.
Henry and Rose will both clean bath tubs.
Henry will clean bath tubs; Rose will wash the windows.
There are no gains from trade in this situation.
If their father Dave allows them to trade chores to achieve gains from trade then "Henry will clean bath tubs; Rose will wash the windows".
Option: C
Explanation:
In this scenario Henry is washing 20 windows or 2 bath tabs in an hour, which showcase his average washing of 10 windows over 1 bath tab in half hour. While here Rose is washing 30 windows or 1 bath tab in an hour by giving average of 15 windows over half bath tab in half hour, which is less than Henry's average of washing.
Thus on considering the above average of work performed by Henry and Rose in equal amount of given time for work, Henry is more prominent to be specialized in cleaning bath tubs while Rose will more expert in washing windows because she is cleaning more windows than Henry in same on hour of time.
According to the concept of Opportunity Cost, Henry should specialize in cleaning bathtubs (as he gives up fewer windows to do so compared to Rose) and Rose should specialize in washing windows (as she gives up more windows to clean a bathtub). This division allows them to achieve gains from trade.
Explanation:The way to determine who should specialize in what in terms of gains from trade is by evaluating Opportunity Cost. Opportunity Cost tells us what is given up to perform an action or task. Here, Henry can wash 20 windows or clean 2 bath tubs in an hour. So, to clean one bath tub, he gives up washing 10 windows (i.e., 20 windows / 2 bath tubs). Similarly, Rose can wash 30 windows or clean one bath tub. Consequently, to clean one bath tub, Rose has to give up washing 30 windows.
We can see that Rose gives up more windows than Henry does to clean one bath tub, which means Rose has a higher opportunity cost for bath tub cleaning compared to Henry. The best arrangement here would be for the person with the lower opportunity cost to specialize in that task. As a result, Henry should specialize in cleaning bath tubs and Rose should specialize in washing windows. This way, they can achieve gains from trade.
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Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $ 9.00 per square foot from the supplier. Delivery costs are $ 0.25 per square foot. Carpenters' wages are $ 20.00 per hour. Payroll costs are $ 4.00 per hour, and benefits are $ 5.00 per hour. How much is the direct labor standard cost per hour?
Answer:
$29
Explanation:
The direct labor standard cost corresponds to the costs related to employees directly related to the manufacturing process of the product. In this case, the cost of cedar wood is classified as direct materials cost, while delivery costs are post-production costs. Therefore, the direct labor standard cost is composed by the carpenters' wages, payroll costs, and benefits:
[tex]C = 20.00+4.00+5.00\\C=\$29/hour[/tex]
The direct labor standard cost per hour is $29.
Alex is a self-employed dentist who operates a qualifying office in his home. Alex has $180,000 gross income from his practice and $160,000 of expenses directly related to the business, i.e., non-home office expenses. Alex's allocable home office expenses for mortgage interest expenses and property taxes are $14,000 and other home office expenses are $9,000. What is Alex's total allowable home office deduction?
Answer:
The correct answer is $20,000.
Explanation:
According to the scenario, the given data are as follows:
Gross income = $180,000
Business expense = $160,000
Mortgage interest and property taxes expense = $14,000
Other home office expense = $9,000
So, we can calculate the total allowable home office deduction by using following method:
As we know, first we have to deduct the business expense from the gross income and than if there any net income left than other expense can be deducted.
Hence,
= Gross income - Business expense
= $180,000 - $160,000
= $20,000
Suppose that Expresso and Beantown are the only two firms that sell coffee. The following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises:
Beantown
Advertise Doesn’t Advertise
Expresso Advertise 10, 10 18, 2
Doesn’t Advertise 2, 18 11, 11
For example, the upper right cell shows that if Expresso advertises and Beantown doesn't advertise, Expresso will make a profit of $18 million, and Beantown will make a profit of $2 million. Assume this is a simultaneous game and that Expresso and Beantown are both profit-maximizing firms.
If Expresso decides to advertise, it will earn a profit of:_____
a. million if Beantown advertises and a profit of
b. million if Beantown does not advertise.
Answer:
(a) $10 million
(b) $18 million
Explanation:
Given that,
Payoff matrix is as follows:
Beantown
Advertise Doesn’t Advertise
Expresso Advertise (10, 10) (18, 2)
Doesn’t Advertise (2, 18) (11, 11)
(a) If Expresso decides to advertise, it will earn a profit of $10 million if Beantown advertises, it follows the strategy (Advertise, Advertise).
(b) He earns a profit of $18 million if Beantown does not advertise, here it follows the strategy (Advertise, Doesn't Advertise).
Describe a situation in which there could be a conflict of interest between an IT consultant’s self-interest and the interests of a client. How might this potential conflict be addressed?
Answer:
An example of a situation in which there could be a conflict of interest between an IT consultant’s self-interest and the interests of a client is a delay in duration for completion of a project.
This potential conflict can be addressed by providing a report of activities that have ensued within the time lapse and give reasons for extension of time.
Explanation:
An IT consultant saddled with the responsibility of developing a website for a client could have a disagreement with the client if he does not deliver on the job as at when due.
This could be due to his inability to concentrate on the project as a result of other personal engagements he has which could make him earn more.
To assuage his client's disapproval, he can present a detailed report showcasing the progress on the project and estimate an additional time to complete it.
He must be calm and courteous in his approach no matter how infuriated his client is.
"Assume the following information: Also assume that a U.S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$600,000 in 1 year. You are a consultant for this firm. Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge
Answer and Explanation:
Borrow in New Zealand dollars
600000/1.1 = 545454.5 NZ$
Convert the New Zealand dollars to
USD
545454.5 0.39 = 212727.3 USD
Invest the USD to get
USD US deposit rate
212727.3 1.11 = 236127.3
236127.3 is the value of the exports after 1 year.
On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follows but something is wrong with the journal entry. Use your knowledge of what a correct journal entry should look like to identify everything that is wrong.
Answer:
See explanation section.
Explanation:
The correct journal to record this transaction is -
Cash Debit $40,000
Common stock Credit $40,000
Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.
Answer:
The dollar amount is wrong in the Credit column.
The Cash account should be listed first.
The Common Stock account should be indented as it is credited.
Common Stock should be listed second, below Cash.
Explanation:
This information relates to McCall Real Estate Agency.
Oct. 1 Stockholders invest $30,960 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $39,960.
3 Buys office furniture for $3,630, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,130 (not paid by Roads at this time).
10 Receives cash of $230 as commission for acting as rental agent renting an apartment.
27 Pays $640 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,330 in salary for October.
Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Journal entries for McCall Real Estate Agency are created for each financial transaction. They ensure accurate tracking of investments, furniture purchase, commission earnings, and expenditures like salary and furniture payments.
Explanation:Journalizing McCall Real Estate Agency Transactions
To journalize the given transactions for McCall Real Estate Agency, we will record each event as a debit and credit entry according to the principles of double-entry bookkeeping. Here are the transactions journalized:
Stockholders invest in common stock: Debit Cash $30,960, Credit Common Stock $30,960.Hire administrative assistant: No immediate journal entry required as cost is incurred over time.Purchase of office furniture: Debit Office Furniture $3,630, Credit Accounts Payable $3,630.Commission due from E.C. Roads: Debit Accounts Receivable $11,130, Credit Service Revenue $11,130.Commission received for renting an apartment: Debit Cash $230, Credit Service Revenue $230.Payment on account for office furniture: Debit Accounts Payable $640, Credit Cash $640.Salary payment to administrative assistant: Debit Salary Expense $3,330, Credit Cash $3,330.These journal entries ensure that all business transactions are recorded correctly and the company's financial statements will accurately reflect its financial position for the period.
Create a journal entry, t account and trial balanceMaquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.
Transactions on May 1:1. Jay BradFord invested $40,000 cash in the company, as its sole owner.2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,500 per month.3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.4. Purchased furniture and equipment costing $33,000. A cash payment of $12,000 was made immediately; the remainder will be paid in 6 months.5. Paid $1,600 cash for a one-year insurance policy on the furniture and equipment.Transactions during the remainder of the month:6. Purchased basic office supplies for $600 cash.7. Purchased more office supplies for $1,600 on account.8. Total revenues earned were $21,000—$8,000 cash and $13,000 on account.9. Paid $400 to suppliers for accounts payable due.10. Received $2,800 from customers in payment of accounts receivable.11. Received utility bills in the amount of $400, to be paid next month.12. Paid the monthly salaries of the two employees, totaling $5,000.
Answer:
Total balance of debit in trial balance = Total balance of credit in trial balance
Explanation:
Maquoketa service
Journal entry
1. Dr Cash 40000
Cr Capital- Jayford 40000
(Investment in company)
2. Dr Salary expense 5000
Cr Salary payable 5000
(Salary expense for the m/o of may-2017 @$2500 each)
3. Dr prepaid rent 24000
Cr Cash 24000
( Paid advance rent for warehouse)
4. Dr Furniture and equipment 33000
Cr Cash 12000
Cr Accounts payable 21000
(Purchase furniture and equipment on cash and on account)
5. Dr Prepaid insurance 1600
Cr Cash 1600
( Purchase one year insurance policy of furniture ad equipment)
6. Dr office supplies 600
Cr Cash 600
(Purchase basic office supplies)
7. Dr Office supplies 1600
Cr Accounts payable 1600
( Purchase office supplies on account)
8. Dr Cash 8000
Dr Account receivable 13000
Cr Sales revenue 21000
( Revenue earned on cash and on account)
9. Dr Accounts payable 400
Cr Cash 400
( Paid cash to supplier)
10. Dr Cash 2800
Cr Account receivable 2800
( Received cash from customer which was due)
11. Dr Utilities expense 400
Cr utilities payable 400
( utility expense for the month)
12. Dr Salary payable 5000
Cr Cash 5000
(Paid salary of 2 employee).
Maquoketa service
T-account
Cash Capital - Jayford
Dr___________Cr____ DR ___________CR
40000 ---- 24000 ----- 40000
---- 12000
--- 1600
--- 600
8000 --- 400
2800 --- 5000
Salary expense Salary payable
Dr____________Cr______ DR ___________Cr
5000 ---- 5000 ------5000
Prepaid rent Furniture and equipment
Dr ____________Cr____ Dr _____________Cr
24000 ------ 33000 --------
Accounts payable Prepaid insurance
Dr_____________Cr___ Dr ___________Cr_
-------21000 1600 -----
------ 1600
400 -----
Office supplies Account receivable
Dr_____________Cr___ Dr ______________Cr
600 ----- 13000 ------
1600 ----- 2800
Utilities expense Utilities payable
Dr____________Cr___ Dr __________Cr__
400 ------ -------400
Sales revenue
Dr_______________Cr __________________
------21000 -------
Maquoketa Services
Trial Balance
Cash 7200 40000 Capital-Jayford
Salary expense 5000 Salary payable
Prepaid rent 24000 22200 Account payable
Furniture and Equipment 33000 400 Utilities payable
Prepaid insurance 1600 21000 Sales revenue
office supplies 2200
Account receivable 10200
utilities expense 400
Total Debits 83600 = 83600 Total credits
What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the constant-growth rate is 2.85%, and you require a 15.5% rate of return?
Answer:
Stock price = $41.50
Explanation:
We know,
Stock price, Po = Dividend of next year (D1) ÷ (Required rate of return (k) - divindend growth rate, g)
Given,
Dividend for the next year, D1 = $5.25
Required rate of return, k = 15.5% = 0.155
Constant growth rate, g = 2.85% = 0.0285
Putting the values into the right formula, we get,
Po = D1 ÷ (k - g)
or, Po = $5.25 ÷ (0.155 - 0.0285)
or, Po = $5.25 ÷ 0.1265
Therefore, Po = $41.50
Therefore, the company's share price is stable and acceptable.