EcoMart establishes General Journal
May 2
Dr Petty cash 1050
Cr Cash 1050
May 30
Dr Merchandise inventory 120
Dr Postage expense 359
Dr Miscellaneous expenses 240
Dr Cash short and over 9
Cr Cash728
June 1
Dr Petty cash 150
Cr Cash 150
Workings:
May 30,Merchandise inventory 120+ Postage expense 359+ Miscellaneous expenses 240+ Cash short and over 9 = $728
June 1
1050-1200= 150
Final answer:
To account for the petty cash fund, the initial fund is established on May 2 by debiting Petty Cash and crediting Cash. The fund is replenished on May 30 for the expenses and shortage. On June 1, the fund is increased to $1,200 by further debiting Petty Cash and crediting Cash.
Explanation:
The question pertains to accounting for a petty cash fund in a company's financial records using the perpetual system of inventory accounting. Here are the journal entries required:
May 2 Entry to Establish the Fund:
Debit Petty Cash $1,050Credit Cash $1,050This establishes the petty cash fund by increasing the Petty Cash account and decreasing the Cash account.
May 30 Entry to Reimburse the Fund:
Debit Transportation-In $120Debit Postage Expenses $369Debit Miscellaneous Expenses $240Debit Cash Short and Over $9Credit Cash $738This entry replenishes the fund for the expenses paid out and accounts for the shortage.
June 1 Entry to Increase the Fund to $1,200:
Debit Petty Cash $150Credit Cash $150The fund is increased to $1,200 by debiting the Petty Cash account and crediting the Cash account.
An engineer who is now 65 years old began planning for retirement 40 years ago. At that time, he thought that if he had $1 million when he retired, he would have more than enough money to live his remaining life in luxury. Assume the inflation rate over the 40-year time period averaged a constant 4.1% per year.a) What is the CV purchasing power of his $1 million at age 65
Answer:
The CV purchasing power of his $1,000,000 at age 65 is $200,433.74
Explanation:
The constant-value (CV) purchasing power of the $1 million is calculated using the following formula:
Current dollars = Future dollars / (1 + f)^n where
f = average inflation rate = 4.1% per year = 0.041
n = time period = 40 years
Future dollars = $1,000,000
Substituting these values in the above formula:
Current dollars = $1,000,000 / (1 + 0.041)^40
= $1,000,000 / 4.989
= $200,433.74
Hence, the CV purchasing power of his $1,000,000 at age 65 is $200,433.74.
An automobile, having an original value of $18,000 when new, depreciates at a rate of 18% per year. Determine, to the nearest tenth of a year, how long it takes for the value of the automobile to decrease to $1,000.
Answer:
14.6 years
Explanation:
Applying an early depreciation rate 'r = 18%', the value of an automobile originally valued at $18,000, after 't' years, is given by:
[tex]V(t)=\$18,000*(1-r)^t}[/tex]
The number of years required for which V(t) = $1,000 is:
[tex]\$1,000=\$18,000*(1-0.18)^t\\ln(\frac{1,000}{18,000})=t*ln(0.82)\\ t=\frac{ln(0.05555555)}{ln(0.82)} \\t=14.6\ years[/tex]
It will take 14.6 years for the value of the automobile to decrease to $1,000.
Final answer:
To find out how long it takes for an automobile, originally valued at $18,000 and depreciating at 18% per year, to reach a value of $1,000, the formula for exponential decay is applied, revealing it would take about 16.7 years.
Explanation:
The question involves finding out how long it takes for the value of an automobile to decrease to $1,000, given that its original value is $18,000 and it depreciates at a rate of 18% per year. This can be solved using the formula for exponential decay, which is V = P[tex](1 - r)^t[/tex], where V is the final value, P is the principal amount (original value), r is the rate of depreciation, and t is the time in years. Plugging in the values gives us $1,000 = $18,000[tex](1 - 0.18)^t[/tex].
To solve for t, we rearrange the formula to t = log(V/P) / log(1 - r). Substituting the numbers in gives us t = log(1,000/18,000) / log(0.82), which calculates to t ≈ 16.7 years. So, it will take approximately 16.7 years for the automobile's value to decrease to $1,000.
Use the appropriate command on a graphing utility to find the daily production level (to the nearest integer) at which the average cost per player is a minimum. What is the minimum average cost (to the nearest cent)?
Answer:
39: $182.46
Explanation:
In this problem, the daily production level at the lowest average cost per player and the average cost (in $) can be estimated by considering the graph (average cost (y) against production level (x)) in the previous question. By drawing the graph up to scale, it can be deduced from the graph that the lowest average cost is approximately $182.46 and the production level at that point is 39.
please find the answer below
shows Cost of Sales of $74,000, Administrative Expenses of $20,000, Rental Expenses of $12,000, Interest Revenue of $33,000, Interest Expense of $15,000, and Net Income after Taxes of $60,000. Assuming there are no other items to be considered and that the Income Taxes are 25% of Net Income before Taxes, what is sales revenue
Answer:
The Sales Revenue is $168,000
Explanation:
As we know Net income before tax is calculated by deducting the cost of sales and other operating expenses from sales. We will add back all the expenses to reach at sales amount.
Net incomes before tax then divided into two portion Tax and net income after tax on the basis of tax percentage.
Net income before tax = Net income after tax + Tax
Net income before tax = $60,000 + ( 60,000 x 25% / 75% ) = $60,000 + $20,000 = $80,000
Net income before tax = Sales + other income - Cost of Sales - ( Operating Expenses)
$80,000 = Sales + $33,000 - $74,000 - ( $20,000 + $12,000 + $15,000 )
$80,000 = Sales - $41,000 - $47,000
$80,000 = Sales - $88,000
Sales = 80,000 + $88,000
Sales = $168,000
If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $8 per direct labor-hour, what is the estimated unit product cost? (Round your answer to 2 decimal places.)
Answer:
$52
Explanation:
The complete question and the solution is attached in the pictures
The unit product cost includes only the variable manufacturing costs. Assuming one labor hour for one unit, the estimated unit product cost would be $8.00. Changes in the manufacturing time will directly affect the unit product cost.
Explanation:The unit product cost under variable costing includes only the variable manufacturing costs. As stated, you don't have any fixed manufacturing overhead in this case, only a variable manufacturing overhead of $8 per direct labor hour. Hence, if it's assumed that one unit takes one labor hour to produce, then the estimated unit product cost would be $8.00. However, if a product takes more or less time to manufacture, the cost would be higher or lower respectively. For example, a product that takes 2 hours to manufacture would cost $16 under this system.
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Adams Enterprises’ noncallable bonds currently sell for $1,120. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? 5.84% 6.15% 6.47% 6.81% 7.17%
Answer: 7.17%
Explanation:
Given,
YTM = ?
Annual Coupon, C = $85
Par Value, F = $1000
Current Bond Price, p = $1120
Maturity Year, n = 15
The yield to maturity is 7.17% from the data given in the question above. We will use the yield to maturity formula which stated as YTM = C + [(F-P)/n] / [(F+P)/2] where YTM is the yield to maturity,
C is the annual coupon,
F is the par value,
p is the current bond price, and
n is the maturity year.
YTM = 85 + [(1000-1120)/15] / [(1000+1120)/2]
YTM = 7.17%
A department adds all materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 40600 units were completed and transferred out; and there were 20000 units in the ending work in process that were 30% complete. During July, $96960 materials costs and $97860 conversion costs were charged to the department.
The unit production costs for materials and conversion costs for July was _______.
Answer:
The unit costs for materials is $1.62 per unit
The unit costs of conversion costs is $2.13 per unit
Explanation:
In determining the the unit production costs for materials and conversion costs, it is very important to calculate equivalent number of units applicable to materials as well as the one applicable to conversion costs
Equivalent units for materials
Completed units 40000 @100% complete 40000
Ending inventory 20000@ 100% complete 20000
60000
Equivalent units for conversion costs
Completed units 40000@100% 40000
Ending inventory 20000 @ 30% complete 6000
46000
unit production costs of materials=$96960/60000=$1.62 per unit
unit production costs of conversion costs=$97860/46000=$2.13 per unit
Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $ 105 comma 000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.1 % per year, how much money do they need to put into the account today to ensure that they will have $ 105 comma 000 in 8 years?
Answer:
$76,134.84
Explanation:
Data provided in the given question
Future value = $105,000
Fixed interest rate = 4.1%
Number of years = 8
The calculation of present value is given below:-
= Future value ÷ (1 + rate of return)^number of years
= $105,000 ÷ (1 + 4.1%)^8
= $105,000 ÷ 1.379132002
= $76,134.84
Therefore, we simply applied the present value formula.
If current output is $40b less than Potential GDP, how much would congress need to decrease taxes by to correct this short-run economic fluctuation given that the MPC is 0.75?
Answer:
Reduction in Tax Needed = $ 13.33
Explanation:
Tax Multiplier shows magnitude of change (decrease) in income due to tax change (rise) .
Tax Multiplier = ΔY / ΔT = - MPC / (1- MPC)
Given : Change in Income needed [ΔY] = 40
MPC = 0.75
Putting in formula ;
40 / ΔT = - 0.75 / (1- 0.75)
40 / ΔT = - 0.75 / 0.25
40 / ΔT = - 3
ΔT = - 40/ 3
ΔT = - 13.33
The congress will need to decrease the taxes by $13.33 billion to correct the short-run economic fluctuation.
Here, we will determine the how much of tax collection need to be reduced to correct the short-run economic.
Given Information
Current output = $40 billion < Potential GDP
MPC = 0.75
The tax multiplier shows the magnitude of changes (decrease) in income because of tax change (rise).
The Formula of Tax Multiplier = {ΔY / ΔT = - MPC / (1- MPC)}
40 / ΔT = -0.75 / (1 - 0.75)
40 / ΔT = -0.75 / 0.25
40 / ΔT = -3
ΔT = -40/ 3
ΔT = -13.33
So, the congress will need to decrease the taxes by $13.33 billion to correct the short-run economic fluctuation.
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The R&R Company's production costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and equipment, $200. R&R Company's factory overhead incurred for August is:
A-$2,000.
B-$6,500.
C-$8,500.
D-$21,500.
E-$36,500.
Answer:
The factory's overhead cost is $8,500
Explanation:
First, you have to know what an overhead cost is; An overhead cost is the cost incurred in production that is not direct labor, direct material cost or all direct expenses on production. In this case, let us identify all the direct costs involved in production;
indirect labor = $6,500
property taxes on production = $800
heat, light and power = $1,000
insurance on plant equipment = $200
Therefore, total overhead cost = 6,500 + 800 + 1,000 + 200 = $8,500.
McPupper Steel has products that can be sold as is for $13,000 as is, or could be reworked at a cost of $3,400 and sold for $16,000. What would be the incremental profit or (loss) of reworking and selling the products instead of selling them as is?
Answer:
It is more profitable to sell the product as it is.
Explanation:
Giving the following information:
McPupper Steel has products that can be sold for $13,000, or could be reworked at a cost of $3,400 and sold for $16,000.
To calculate the convenience of continue processing the product, we need to deduct from the final selling price the rework costs and compare it to the original price.
Effect on income= 16,000 - 3,400= $12,600
It is more profitable to sell the product as it is.
Up-Town Express processed 89,233 packages this month. If this is 36.5% less than last month, how many packages did they process last month?A) 30,997
B) 38,567
C) 140,524
D) 130,230
Answer:
X=140.524.4≅140,524 Packages
Correct option is C (140,524)
Explanation:
Given Data:
Up-Town Express processed =89,233 packages this month
Less than last month=36.5%=0.365
Required:
Packages did they process last month=?
Solution:
Let say X is the number of Packages they process last month.
Equation from above data:
89233+0.365X=X
89233=X-0.365X
0.635X=89233
X=89233/0.635
X=140.524.4≅140,524 Packages
Correct option is C (140,524)
The number of packages Up-Town Express processed last month, we calculated the original amount before a 36.5% decrease that resulted in 89,233 packages this month. The calculation shows that last month, they processed option C. 140,524 packages.
To calculate the number of packages Up-Town Express processed last month given that they processed 89,233 packages this month, which is 36.5% less than last month.
To find the original number of packages processed last month, we can see this situation as a percentage decrease problem.
As 89,233 is 63.5% (100% - 36.5%) of the previous month's amount, we can set up a proportion to solve for the original amount.
Let x be the number of packages processed last month. So we have:
63.5% of x = 89,233 packages
To convert 63.5% to a decimal, we divide by 100: 63.5% = 0.635
Therefore:
0.635 × x = 89,233
To find x, divide both sides by 0.635:
x = 89,233 / 0.635
x = 140,524 packages
So the correct answer is C) 140,524, representing the number of packages processed by Up-Town Express last month.
On January 1, 2020, Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Carter Company for the two purchases on January 1, 2020. (b) Record the interest at the end of the first year on both notes using the effective-interest method.
Carter Company recorded two journal entries on January 1, 2020. The first entry was for the acquisition of land using a promissory note, and the second entry was for the acquisition of equipment using a promissory note. Both entries include discounts on the notes payable.
On January 1, 2020, Carter Company made two acquisitions. The first acquisition was the purchase of land with a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note with a face amount of $337,012. To record this acquisition, Carter Company would make the following journal entry:
Debit Land $200,000Credit Notes Payable $337,012Credit Discount on Notes Payable $137,012 ([$337,012 - $200,000])The second acquisition was the purchase of equipment by issuing a 6%, 8-year promissory note with a maturity value of $250,000. To record this acquisition, Carter Company would make the following journal entry:
Debit Equipment $250,000Credit Notes Payable $250,000Debit Interest Expense $13,125 ([$250,000 x 6%])Credit Discount on Notes Payable $113,125 ([$250,000 - $136,875])For more questions on Entries
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Final answer:
To record the land and equipment acquisitions on January 1, 2020, Carter Company would make two journal entries. They would also record the interest at the end of the first year using the effective-interest method.
Explanation:
To record the two purchases on January 1, 2020, Carter Company would make the following journal entries:
a) Land acquisition:
Debit: Land $200,000Credit: Notes Payable $337,012b) Equipment acquisition:
Debit: Equipment $250,000Credit: Notes Payable $250,000To record the interest at the end of the first year on both notes using the effective-interest method:
a) Interest on land note:
Debit: Interest Expense $16,851 ($337,012 x 11% x 1/12)Credit: Notes Payable $16,851b) Interest on equipment note:
Debit: Interest Expense $15,000 ($250,000 x 6% x 1)Credit: Notes Payable $15,000Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. Long-run economic growth is unlikely to be sustainable because of finite natural resources. In the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. Finding alternatives to natural resources will be very important to long-term economic growth. In the modern economy, human and physical capital are generally less important in productivity than natural resources. In the 19th century, countries with the highest per capita GDP were nearly always abundant in minerals and productive farming land.
Answer: Explanation:
Long run economic growth is unlikely to be sustainable because of finite natural resources. Answer: False
In the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. - False
Finding alternatives to natural resources will be very important to long-term economic growth. - True
In the modern economy, human and physical capital are generally less important in productivity than natural resources. - False
In the 19th century, countries with the highest per capita GDP were nearly always abundant in minerals and productive farming land. - True
You have deposited $96,780 into an account that will earn an interest rate of 15% compounded semiannually. How much will you have in the account by the end of 14 years?
Answer:
After 14 years, the compounded value of the invested amount = $733,200.27
Explanation:
What the question is asking us to find is the future value of an amount that is invested over a period of 14 years, compounded at 15% semiannually.
The formula is:
[tex]FV= PV(1 + \frac{i}{n} )^{nt}[/tex]
where ;
FV = Future value
PV = present value (principal)
i = nominal interest
n = compounding frequency in a year
t = total number of years.
Note: for investments that are compounded annually, n = 1, because compounding is once in a year, for those compounded semiannually, n=2, because compounding is twice in a year, for compounding done quarterly, n = 4 because there are four quarters in a year and so on.
Putting, the values into the equation above;
[tex]FV=PV(1 + \frac{r}{n}) ^{nt} \\[/tex]
[tex]= 96,780(1 + \frac{0.15}{2} )^{(2*14)} = 96,780 (1 + 0.075)^2^8\\ = 96,780 (7.5759882436) = 733,200.27[/tex]
= $733,200 (to the nearest dollar)
The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.
Answer:
The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.
Explanation:
Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.
Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.
The future of cities in the United States and in other countries will be determined by their ability to benefit from the economies of scale and to minimize or counterbalance the negative externalities.
The term economies of scale refers to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
Cities can benefit from economies of scale in various ways, such as through more efficient public transportation systems, better use of infrastructure, and a larger pool of human capital.
These benefits can lead to increased productivity and economic growth, which are crucial for the future development of cities.
The future of cities is likely to be shaped by how effectively they can harness the advantages of being large population centers while also addressing and mitigating the adverse effects that come with urbanization.
By doing so, cities can become more sustainable, livable, and economically vibrant places.
What type of adjustment is Completed services that were paid for six months earlier, $1,070? The Service Revenue unadjusted balance as of December 31 is $10,300. The Unearned Revenue balance as of December 31 is $11,600
Answer:
Unearned Revenue Balance $10530
Service revenue Balance $11370
Explanation:
given data
time = 6 month
Completed services paid = $1,070
Service Revenue unadjusted = $10,300
Unearned Revenue balance = $11,600
solution
Unearned Revenue
31-Dec $11,600
31-Dec $1070
Balance $11,600 - $1070
Balance $10530
and
Service revenue
31-Dec $10,300
31-Dec $1070
balance $10,300 + $1070
Balance $11370
The question concerns an accounting adjustment of Unearned Revenue, which occurs when a service paid for in advance has been completed. This kind of adjustment involves moving a specified amount from 'Unearned Revenue' to 'Service Revenue'. In this example, that amount is $1,070.
Explanation:The adjustment being referred to in this scenario would be for Unearned Revenue. Unearned revenue, also known as deferred revenue, refers to payments received by a company for goods or services that have yet to be provided. In this instance, the service was paid for six months earlier but has just been completed. Therefore, an adjustment must be made to move the $1,070 from Unearned Revenue (a liability account) to the Service Revenue (an income statement account).
The entries will be as follows:
Debit (decrease) Unearned Revenue - $1,070.
Credit (increase) Service Revenue - $1,070.
So after this adjustment, the balances in the accounts would be,
Service Revenue unadjusted balance as of December 31, would be $11,370 ($10,300 + $1,070).
The Unearned Revenue balance as of December 31, would be $10,530 ($11,600 - $1,070).
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Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 8%. They pay interest annually and have a 9% coupon rate. What is their current yield?
Answer:
8.55%
Explanation:
For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:
Given that,
Future value = $1,000
Rate of interest = 8%
NPER = 7 years
PMT = $1,000 × 9% = $90
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After solving this, the present value is $1,052.06
Now the current yield is
= PMT ÷ PV
= $90 ÷ $1,052.06
= 8.55%
The current yield of the bond is 8%.
Explanation:The current yield is the annual interest payment of a bond divided by its current market price. In this case, the bond has a coupon rate of 9% and a face value of $1,000. The yield to maturity is 8%. Since the bonds pay interest annually, the annual interest payment is -
= $1,000 * 9%
= $90.
To find the current yield, we need to determine the current market price of the bond. We can use the following formula:
Current yield = Annual interest payment / Current market price.
Rearranging the formula, we get:
Current market price = Annual interest payment / Current yield.
Substituting the values, we have:
Current market price
= $90 / 8%
= $1125.
Therefore, the current yield of the bond is $90 / $1125, which equals 8%.
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The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2014:
Direct materials and supplies purchased on credit $800
Direct materials used 710
Indirect materials issued to various production departments 100
Direct manufacturing labor 1,300
Indirect manufacturing labor incurred by various production departments 900
Depreciation on building and manufacturing equipment 400
Miscellaneous manufacturing overhead incurred by various production departments (ordinarily detailed as repairs, photocopying, utilities, etc.) 550
Manufacturing overhead allocated at 160% of direct manufacturing labor costs?
Cost of goods manufactured 4,120
Revenues 8,000
Cost of goods sold (before adjustment for under- or over-allocated manufacturing overhead) 4,020
Inventories, December 31, 2013 (not 2014): Materials Control 100 Work-in-Process Control 60 Finished Goods Control 500
1. Prepare an overview diagram of the job-costing system at the University of Chicago Press.
2. Prepare journal entries to summarize the 2014 transactions. As your final entry, dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.
3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.
4. How did the University of Chicago Press perform in 2014?
Answer:(1) in the diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base,indirect and direct cost is from under cost object and direct materials and direct manufacturing labour is from under direct cost (2) journal entry total Dr : $25,060, Cr total $25,060 (3) materials inventory controlbalance c/d $90, work in process inventory control balance c/d $2,050, finished good inventory control balance c /d $600 (4) The university of Chicago press performed well in the period under review
Explanation:
Indirect cost pool. Manufacturing overhead
|
Cost Allocation Base. Direct manufacturing
Labour cost
|
Cost object. Allocated manufacturing overhead cost
Direct cost
|
Direct cost. Direct materials, Direct manufmanufacturing Labour
In this diagram, the manufacturing overhead is from indirect cost pool, direct manufacturing labour cost is from under cost allocation base, indirect and direct cost is from under cost object and direct manufacturing labour is from under direct cost
(2)
Journal entry will be
Dr: materials inventory control $800, Cr : Account payable control to record purchase of direct materials $800
Dr : work in process inventory control $710, manufacturing overhead $100, Cr: materials inventory control $810
Dr: work in process inventory control $1,300, manufacturing overhead control $900,Cr : wages payable $2,200 to record manufacturing labour
Dr: Manufacturing overhead control $400,Cr : Accumulated depreciation building and manufacturing equipment $400 to record depreciation of building and equipment
Dr: Manufacturing overhead control $550,Cr : miscellaneous account $550 to record miscellaneous factory overhead
Dr: work in process inventory control $2,080, Cr : Applied manufacturing overhead $2,080 to assign manufacturing overhead to work in process based on direct manufacturing labour
Dr:Finished goods inventory control $4,120,Cr: work in process control $4,120
Dr: Account Receivable inventory control or cash $8,000, Cr : Sales revenue $8,000 to record sales revenue
Dr: Cost of good sold $4,020, Cr: Finished good Inventory control $4,020 to record the cost of good sold
Dr: Applied manufacturing overhead $2,080, Cr: manufacturing overhead control $1,950, cost of good sold $130 to adjust for over application of manufacturing overhead
(3) The T Account is as follows
Materials inventory control
Dr. Cr
$ $
Material control 100. Materials inventory 810
Direct materials purchase 800. Balance c/d 90
----------- -----------
900. 900
--------------- ---------------
Work in process inventory control
Dr. Cr
$ $
Work in process control 60. Finished good Inventory 4,120
Work in process inventory control 710
Direct materials Labour. 1,300
Balance c/d 2,050
------------- -------------
4,120. 4,120
--------------- ----------------
Finished good Inventory control
Dr. Cr
$ $
Finished good control 500. Under or over allocated overhead 4,020
Cost of good manufactured 4,120. Balance c/d 600
--------- -----------
4,620. 4,620
------------ --------------
(4) in the period under review, the university of Chicago performed well.
Here's an outline of the information and the steps to complete the task:
Overview of the job-costing system at the University of Chicago Press:
Direct costs:Direct materials and supplies
Direct manufacturing labor
Indirect costs:
Manufacturing overhead (allocated on the basis of direct manufacturing labor costs)
Cost of goods manufactured:
Beginning work-in-process inventory
Direct materials used
Direct manufacturing labor
Manufacturing overhead applied
Less: Ending work-in-process inventory
Cost of goods sold:
Beginning finished goods inventory
Cost of goods manufactured
Less: Ending finished goods inventory
Journal entries to summarize the 2014 transactions:
Record the purchase of direct materials and supplies on credit:
Debit: Direct materials and supplies (800)
Credit: Accounts payable (800)
Record the use of direct materials:
Debit: Work-in-process control (710)
Credit: Materials control (710)
Record the issuance of indirect materials to various production departments:
Debit: Other manufacturing overhead (100)
Credit: Materials control (100)
Record the incurrence of direct manufacturing labor:
Debit: Work-in-process control (1,300)
Credit: Manufacturing wages payable (1,300)
Record the incurrence of indirect manufacturing labor:
Debit: Other manufacturing overhead (900)
Credit: Manufacturing wages payable (900)
Record the depreciation on building and manufacturing equipment:
Debit: Other manufacturing overhead (400)
Credit: Accumulated depreciation (400)
Record the incurrence of miscellaneous manufacturing overhead:
Debit: Other manufacturing overhead (550)
Credit: Accounts payable (550)
Allocate manufacturing overhead at 160% of direct manufacturing labor costs:
Debit: Work-in-process control (2,080)
Credit: Other manufacturing overhead (2,080)
Close the Work-in-Process Control account to the Finished Goods Control account:
Debit: Finished goods control (1,970)
Credit: Work-in-process control (1,970)
Close the Cost of Goods Manufactured account to the Finished Goods Control account:
Debit: Finished goods control (2,150)
Credit: Cost of goods manufactured (2,150)
Record the cost of goods sold:
Debit: Cost of goods sold (4,020)
Credit: Finished goods control (4,020)
Dispose of the year-end under- or over-allocated manufacturing overhead as a write-off to Cost of Goods Sold:
Debit: Cost of goods sold (130)
Credit: Manufacturing overhead applied (130)
These journal entries provide a comprehensive overview of the University of Chicago Press's job-costing system and summarize the 2014 transactions accurately.
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What is the maximum amount of write-downs (defaults) the bank could sustain without becoming insolvent (bankrupt)? Values are millions of dollars. Assets Liabilities Reserves $60 Transaction Deposits $500 Bonds $400 CDs $300 Loans $600 Equity _____
Answer:
The Equity for the bank will be $260
Explanation:
Assets of the banks are
Reserve = $60
Bond = $400
Loans = $600
Total Asset = $1,060
Liabilities of the banks are
Deposit = $500
CD's: = $300
Total Liabilities = $800
Equity = Asset - Liabilities
Equity = $1,060 - 800
Equity = 260
The maximum amount of the bank to sustain without becoming insolvent their Equity is $260
On January 1, 2017, Eagle borrows $23,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $7,099, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.
Answer:
Dr. Cr.
January 1, 2017
Cash $23,000
Account Payable $23,000
December 31, 2017
Account Payable $5,029
Interest Expense $2,070
Cash $7,099
December 31, 2018
Account Payable $5,482
Interest Expense $1,617
Cash $7,099
December 31, 2019
Account Payable $5,975
Interest Expense $1,124
Cash $7,099
December 31, 2020
Account Payable $6,514
Interest Expense $585
Cash $7,099
Explanation:
Installment of $7,099 is divided in interest and principal payments. As Interest payment is decreasing with the balance due is reducing each year due to principal payment with interest payment after paying interest the loan amount is zero after 4th installment. Loan Amortization schedule shows the amortization of loan and interest payment each year and their balances.
Loan Amortization schedule
Date Opening Interest @ 9% Principal Balance
January 1, 2017 $23,000 $23,000
Dec 31, 2017 $23,000 $2,070 $5,029 $17,971
Dec 31, 2018 $17,971 $1,617 $5,482 $12,489
Dec 31, 2019 $12,489 $1,124 $5,975 $6,514
Dec 31, 2020 $6,514 $585 $6,514 $0
Zapato Company produces two types of boots: vaquero and vaquera. There are four activities associated with the two products. Drivers for the four activities are as follows:
Vaquero Vaquera
Cutting hours 4,000 5,400
Assembly hours 2,850 4,650
Inspection hours 945 2,430
Rework hours 150 450
Required:
Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
Activity Driver Vaquero Vaquera
Cutting hours
Assembly hours
Inspection hours
Rework hours
Answer:
Attached is the complete questions containing the missing variables:
The activity rates for each activity are stated thus:
Cutting activity rate =$24/cutting hour
Assembly activity rate =$40/ assembly hour
Inspecting activity rate =$20/ inspecting hour
Reworking activity rate=$75/reworking hour
Explanation:
Cutting activity rate =$225600/(4000+5400)=$24/cutting hour
Assembly activity rate =$300000/(2850+4650)=$40/ assembly hour
Inspecting activity rate=$67500/(945+2430)=$20/ inspecting hour
Reworking activity rate=$45000/(150+450)=$75/reworking hour
Obviously you did not include the overheads incurred for each activity in your question,but I have the overhead for each activity in the attached full question with which I computed the required overhead activity rates
Answer:
Vaquero Vaquera
Cutting hours 42.55% 57.45%
Assembly hours 38% 62%
Inspection hours 28% 72%
Rework hours 25% 75%
Explanation:
The question is incomplete, it does not have total capacity for the four activities available but i will assume that the activities maximize consumption and shares it amongst themselves hence to get the consumption ratio from their total.
cutting hours 4000+5400 = 9400
Assembly Hours 2850 + 4650= 7500
Inspection hours 945 + 2430= 3375
Rework hours 150 + 450 = 600
consumption ratio = capacity per activity / total capacity per total activities
A customer wants to implement a wireless network in a historic location, but is concerned about the structural and aesthetic impact to the facility. Which benefit of using wireless mesh addresses these concerns?
A. Power is required only at the installation location.
B. The APs do not have LED lights.
C. More wireless channels can be supported.
D. APs do not need network connections.
Answer:
D-APs do not need network connections.
Explanation:
The benefit of using wireless mesh which addresses the concerns of the
customer who wants to implement a wireless network in a historic location, but is concerned about the structural and aesthetic impact to the facility is that APs do not need network connections because it is easily set up and does not required an access point.
Howard, a salesperson for Kemco Sanitation Systems, told a purchasing agent, "Our new system can save your company $60,000 annually in energy, chemicals, and water use compared to the type of sanitation system you're using now." Howard's statement reflects _____ in this scenario.
Answer:
Benefits.
Explanation:
Benefits are what a person or group stand to gain by using a product or engaging in a process. It is different from the features of the product in that it focuses on what the consumer stands to gain from the use of various features of the product.
Howard told a purchasing agent, "Our new system can save your company $60,000 annually in energy, chemicals, and water use compared to the type of sanitation system you're using now."
Howard is focusing on the benefits to the client's company to get his buy in.
Answer: Benefits
Explanation: Benefits is defined as anything that proffers an advantage or profit to someone while minimizing wastage or loss. They are what a consumer hopes to get, feel or achieve when he/she uses a product; benefits also describes the qualities a product offers to satisfy the needs, desires and wants of its users. By highlighting the qualities of the product or system that the purchasing agent might find useful, Howard, the sales person's, statement reflects benefits.
You are the supervisor of an employee who just learned that she did not receive the promotion she had anticipated. You call her into your office and ask her to discuss her reaction. What type of listening are you engaged in?
a. Casual listening
b. Listening for information
c. Intensive listening
d. Empathetic listening
Answer:
The correct answer is letter "D": Empathetic listening.
Explanation:
Empathetic listening is used in cases when people must be heard more than in a situation when two parties want to come up to a solution. Empathetic listening goes beyond active listening because it requires the listening party to put in the other party's shoes. Most often, empathetic listening has the mission of deeply understanding others' points of view.
A common excuse for carrying out a morally questionable project is, "If I don’t do it somebody else will." This rationale may be tempting for engineers who typically work in situations where someone else might be ready to replace them on a project.
Do you view it as a legitimate excuse for engaging in projects that might be unethical? In your answer, comment on the concept of responsible conduct developed in this section.
Answer:
It is not a legitimate excuse for engaging in unethical projects
Explanation:
Ensuring scientific integrity and avoiding professional misconduct is a collective role of Scientists and Engineers. Every professional, engineers inclusive, must ensure they stay committed and faithful to the oath of practice they have sworn to. Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity. Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.
Every engineer must be familiar with the code of ethics of the profession, abide by it, and report erring professionals for punitive measures to be taken rather than giving excuses for carrying out an unethical project.
The concept of responsible conduct emphasizes ethical decision making, professional responsibilities, and strict adherence to professional standards and values. Every engineer and professional must take into cognizance all the responsible conducts required by their professions
Engaging into projects that are unethical is not a legitimate excuse as it is against work ethics. Every employee should adhere to high ethical standards. Thus, these are part of responsible conduct.
What do understand by responsible conduct?
The concept of responsible conduct focuses on ethical decision-making, professional obligations, and strict adherence to professional standards and values. All engineers and technicians should consider all the ethics required by their profession.
Ensuring scientific integrity and avoiding professional misconduct is a fundamental role of Scientists and Engineers. All professionals, including engineers, must make sure that they stay committed to their work and to the vows they have made.
Every engineer should familiarize himself with the code of conduct, adhere to it, and report any misconduct to the professional rather than giving excuses for doing wrong.
Engineers and technicians should follow the required code of conduct and ethical standards and be an example for society and for future generations.
Hence, it is not a legitimate excuse to engage in projects that might be unethical.
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Bridgeport Company sold $8,780 of its specialty shelving to Elkins Office Supply Co. on account. Bridgeport estimates that an additional $215 in allowances will be granted to Elkins. Prepare the entries when (a) Bridgeport makes the sale. (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 the amount is entered. Do not indent manually.) (b) Bridgeport grants an allowance of $722 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (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 the amount is entered. Do not indent manually.) (c) at year-end. (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 the amount is entered. Do not indent manually.)
Answer:
Statement is given below.
Explanation:
Prepare the necessary journal entries as shown below:
Date Accounts Title and Explanation Ref. Debit Credit
a Accounts Receivable $ 8:780
Sales Revenue $ 8380
(To record the sales made on account)
Sales Returns and Allowances $ 215
Provision for Sales Return and Allowances $ 215
vTo record the estimated allowance on sales
b Sales Returns and Allowances ($722-$215) $ 507
Provision for Sales Return and Allowances $ 215
Accounts Receivable $ 722
(To record the allowance granted towards sales
returns)
c No entry
(Since the cash is not received and hence no
adjustment needed)
The sale of shelving is recorded by debiting Accounts Receivable and crediting Sales Revenue. An allowance is recorded by debiting Sales Returns and Allowances and crediting Accounts Receivable. At the year-end, an entry may be needed if additional allowances are anticipated.
When Bridgeport Company makes the sale of specialty shelving worth $8,780 to Elkins Office Supply Co., the corresponding accounting entries are as follows:
Debit Accounts Receivable for $8,780.Credit Sales Revenue for $8,780.
Upon granting an allowance of $722 when some shelving does not meet specifications, the entries are:
Lastly, at year-end, if the previously estimated allowance of $215 has not been granted, no additional entry is needed beyond the $722 actual allowance already recorded. If Bridgeport still anticipates granting the additional $215 allowances, it would make the following entry:
Debit Sales Returns and Allowances for $215.Credit Allowance for Sales Returns and Allowances (a contra account to Accounts Receivable) for $215.Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000, Accounts receivable $33,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $36,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much are total assets?
Answer:
$294,000
Explanation:
Asset are resources controlled and owned by a company from which future economic benefits will flow to the entity.
Asset may be current or non current based on how soon they can be realized. Assets usually have debit balances and it is an element of the balance sheet. Examples of assets include Accounts receivable, cash, land, equipment, prepayments, Inventory etc.
Total Assets
= $33,000 + $50,000 + $36,000 +$5,000 + $123,000 + $47,000
= $294,000
ABC has bonds outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $908.72 per $1,000 bond. What is the cost of debt
Answer:
The cost of debt is 10.04%
Explanation:
The cost of debt is also another way of a yield to maturity of a bond so therefore we will calculate the yield to maturity for the following problem to get the cost of debt therefore using the following formula:
Yield to maturity =[(face value/current value)(1/period to maturity)] -1
where the face value is $1000 the original bond price
current value is the value of the bond which is $908.72 which its currently selling for.
period to maturity is the period of which the bond took to mature which is not specified but we know a bonds price is valuated every year so it will be 1 year.
now we substitute to the above mentioned formula :
Yield to maturity = ($1000/$908.72)(1/1) - 1 then compute
Yield to Maturity = 0.1004489832 then we multiply by 100 for percentage
Yield to maturity = 10.04% rounded off to two decimal places,
we know the cost of debt is the interest rate at which entities pay over their loans or debts, so in this case that is the yield to maturity of a bond therefore the cost of debt is 10.04%
Suppose an economist tests the theory that when the price of leather increases, fewer pairs of shoes are produced. He observes more shoes being produced when the price of leather increases. At the same time, a new production technology allowed for more shoes to be produced in less time.
He:
a. has confused association and causation.
b. cannot test his theory because his observations violate the ceteris paribus assumption.
c. used normative economics to answer a positive question.
d. built a model with too many variables.
Answer:
b. cannot test his theory because his observations violate the ceteris paribus assumption
Explanation:
As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).
Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.
When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.
In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.
The economist's observations were affected by an unnoticed variable - the new production technology. Therefore, the economist could not accurately test his theory about the relationship between the price of leather and shoe production due to violating the ceteris paribus assumption.
Explanation:The economist in your question is trying to test the theory that when the price of leather increases, fewer pairs of shoes are produced. However, he observes the opposite. He observes an increase in shoe production when the price of leather increases. His observations may not necessarily be incorrect, but he has failed to consider a critical assumption in economics, called the ceteris paribus assumption.
This assumption implies that 'all other things being equal.' In reality, the economist identified that a new production technology was introduced which allows for more efficient production. Therefore, when trying to assess the impact of leather price increases on shoe production, not all things remain unchanged. As a result, the correct answer to your question would be: b. he cannot test his theory because his observations violate the ceteris paribus assumption.
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