Answer:
Negotiation
Explanation:
Negotiation -
It refers to the conversation between two or more people or parties in order to mutually resolve any conflict or fued , is referred to as negotiation .
The practice is mutually performed by both the parties .
The mutual understanding between the people or parties benefits both the parties in a very fair and equal manner .
Hence , from the given scenario of the question ,
The correct answer is negotiation .
A buyer values a house at $525,000 and a seller values the same house at $485,000. If sales tax is 8% and is levied on the seller, then what would be the lowest price that the seller would be willing to sell at?
Answer:
$523,800
Explanation:
Given parameters:
Cost price by buyer = $525000
Selling price by seller = $485000
Sales tax = 8%
Unknown:
The lowest selling price by the seller = ?
Solution:
To solve this business problem, we must understand that the price the seller would be will to part with will be his selling price and the percentage of sales tax incurred in the procurement.
This will be the minimum and least profitable estimated amount the seller is willing to sell at.
Lowest selling price = selling price by seller + amount of sales tax incurred
Sales tax amount = selling price x sales tax percentage
= $485000 x [tex]\frac{8}{100}[/tex]
= $38800
Lowest selling price = $485000 + $38800 = $523,800
Given a value of $485,000 for the house and a sales tax rate of 8%, the seller pays $38,800 in sales tax. Adding this to the initial value, the lowest sale price for the seller would be $523,800.
Explanation:In this problem, we are calculating the minimum selling price a seller would accept for a house, given a specific sales tax rate. The seller values the house at $485,000, but the 8% sales tax is deducted from this amount - so we need to determine how much exactly the sales tax is, and add it to the seller price.
The formula to calculate the sales tax is: 'Value of the house' x (sales tax rate / 100). Substituting the given values, the seller needs to pay $485,000 * (8 / 100) = $38,800 as sales tax. Adding this tax amount to the seller's value of the house, the lowest price the seller would be willing to sell at would be $485,000 + $38,800 = $523,800.
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Brief Exercise 5-9 Included in Sunland Company’s December 31, 2017, trial balance are the following accounts: Accounts Payable $244,000, Pension Liability $383,400, Discount on Bonds Payable $33,800, Unearned Rent Revenue $46,300, Bonds Payable $409,300, Salaries and Wages Payable $31,700, Interest Payable $14,810, and Income Taxes Payable $35,300. Prepare the long-term liabilities section of the balance sheet.
Explanation:
The preparation of the long-term liabilities section of the balance sheet is presented below:
Sunland Company’s
December 31, 2017
Long-term liabilities section
Long term liabilities
Bond payable $409,300
Less: Discount on Bonds Payable -$33,800 $375,500
Pension Liability $383,400
Total long term liabilities $758,900
Consider two gas stations. One is located at a major intersection used by people commuting from populous neighborhoods to jobs located in the downtown area. The other is located on the outskirts of the city. Both gas stations sell high-grade or premium-grade gas for a higher price than low-grade or regular-grade gas. However, the gas station along the more congested route charges higher gas prices for all grades than the station on the outskirts of town.Product differentiation within and among these gas stations is based on which of the following?a. Styleb. Locationc. Quality
Answer:
Consider two gas stations. One is located at a major intersection used by people commuting from populous neighborhoods to jobs located in the downtown area. The other is located on the outskirts of the city. Both gas stations sell high-grade or premium-grade gas for a higher price than low-grade or regular-grade gas. However, the gas station along the more congested route charges higher gas prices for all grades than the station on the outskirts of town.
Product differentiation within and among these gas stations is based on which of the following Location and Quality.
Explanation:
Location is certainly one of the criteria, this is due to the reason that there is a difference in the price being charged for the same quality of the product.
Quality is also another factor, the reason being that there are two different grades of gasoline. The price of one of them was raised high while the price for the other one was brought low.
Thus, product differentiation within and among these gas stations is based on Location and Quality.
Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's yearend
balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively.
If supplemental information disclosed raw materials used in production of $80,000, direct labor of
$140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have
been:
A. $130,000.
B. $10,000.
C. $66,000.
D. $390,000.
E. some other amount.
Answer:
The correct anwer is A.
Explanation:
Giving the following information:
Cost of goods manufactured= $520,000
Ending work in process= $70,000
Raw materials used in the production of $80,000
Direct labor= $140,000
Allocated manufacturing overhead of $240,000
To calculate the beginning work in process, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
520,000= beginning WIP + 80,000 + 140,000 + 240,000 - 70,000
beginning WIP= 130,000
Final answer:
The beginning work in process for Carolina Plating Company was $130,000, calculated by utilizing the Cost of Goods Manufactured formula and plugging in the provided values.
Explanation:
To determine Carolina Plating Company's beginning work in process, we need to use the Cost of Goods Manufactured (COGM) formula:
The formula to calculate COGM is:
Beginning Work in Process + Direct Materials Used + Direct Labor + Manufacturing Overhead - Ending Work in Process = Cost of Goods Manufactured.From the information given, we know the following:
Cost of Goods Manufactured: $520,000Ending Work in Process: $70,000Raw Materials Used: $80,000Direct Labor: $140,000Manufacturing Overhead: $240,000We are trying to solve for Beginning Work in Process. So, if we rearrange the formula, we get:
Beginning Work in Process = Cost of Goods Manufactured + Ending Work in Process - (Raw Materials Used + Direct Labor + Manufacturing Overhead)
Plugging in the numbers:
Beginning Work in Process = $520,000 + $70,000 - ($80,000 + $140,000 + $240,000)
Beginning Work in Process = $520,000 + $70,000 - $460,000
Beginning Work in Process = $130,000
Therefore, the company's beginning work in process must have been $130,000.
All of the following are true about the project scope statement EXCEPT:a.It is an output of the Verify Scope process. b.It describes, in detail, the project’s deliverables and the work required to create those deliverables.c.It provides a common understanding of the project scope among project stakeholders.d.It may contain explicit scope exclusions that can assist in managing stakeholder expectations.
Answer:
a. It is an output of the Validate Scope process.
Explanation:
We can define project scope statement as a tool which is used to manifest the main deliverables of project which includes the major milestones, all requirements, constraints and assumptions. It describes, in detail, the project’s deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. It may contain explicit scope exclusions that can assist in managing stakeholder expectations. It is an output or the result of scope process not the validate scope process, therefore, all other options are correct while option "a" is not true.
The project scope statement is not an output of the Verify Scope process. Rather, it is an output of the Define Scope process. It delineates the work to be done in the project, helps setting expectations among stakeholders, and can also clarify what is not part of the project.
Explanation:All the mentioned statements regarding a project scope statement are indeed true except for the first one. The project scope statement is not an output of the Verify Scope process. Instead, it's an output of the Define Scope process of the Project Management Body of Knowledge (PMBOK). It is integral in detailing the project's deliverables and the work needed to create these deliverables. It's also used to establish common comprehension of the project's scope among the stakeholders. Furthermore, it may also distinctly list what isn't included in the project scope (scope exclusions), aiding in managing stakeholder expectations.
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A movie theater substantially decreases the price of its soda during the same week that a heavily advertised new movie is being released to theaters. Assuming consumers like to enjoy movies, soda, and popcorn together, how does this impact the equilibrium price and quantity of popcorn?
Final answer:
When a movie theater decreases the price of soda during the release of a heavily advertised movie, it may lead to an increase in the equilibrium price and quantity of popcorn.
Explanation:
When a movie theatre decreases the price of its soda during the same week that a heavily advertised new movie is being released, it impacts the equilibrium price and quantity of popcorn in the following way:
The decrease in the soda price may lead more people to buy the soda, which in turn may increase the demand for popcorn as people like to enjoy movies, soda, and popcorn together.This increase in demand for popcorn may result in an increase in the equilibrium price of popcorn due to a higher demand for it.The increase in demand for popcorn will also lead to an increase in the equilibrium quantity of popcorn as more people want to buy it.If demand for a good is extremely elastic, raising the price of that good typically has what effect on total revenue? radio_button_unchecked No discernible change radio_button_unchecked Increases radio_button_unchecked Decreases SUBMIT
Answer:
Decreases.
Explanation:
The law of demand states that for an elastic good an increase in price results in a decrease in quantity demanded.
Elasticity of demand is the degree of responsiveness of quantity demanded to changes in price.
When a good is highly elastic that means the elasticity is above 1. For example if elasticity is 2, an increase in price by 1 unit will result in a decrease in quantity supplied by 2 units.
As total revenue is equal to price multiplied by units sold, total revenue will also reduce with price increase of a highly elastic good.
As the name suggests, convertible bonds allow the owner the option to convert the bonds into a fixed number of shares of common stock. Innovative Energy LLC is a start-up company that just raised $100,000 to conduct a third-party feasibility study on its business model. the company agreed to treat the $100,000 investment as debt at 10% interest rate; however, the investor has the right to exchange the debt for common stock during the company's next financing round. Which of the following terms best describes the $100,000 investment?
Convertible bond
Warrant
Answer:
The $100,000 investment is a convertible bond.
Explanation:
A convertible bond is an interest-bearing or non-interest bearing loan that a public limited company can borrow from an investor. The terms of the loan will determine whether the investor has the right, at the end of the loan period, to convert all or part of the loan amount into the company's shares according to a predetermined conversion ratio.
The conversion ratio (how many shares a lender receives for a given amount of loan) may be fixed or agreed upon based on the circumstances of the exchange, such as the financial ratios calculated from the company's financial statements. The exchange may take place at a pre-determined time or in certain circumstances. The convertible bond may be targeted to a specific target group so that the subscription right for the shares cannot be transferred.
The convertible bond combines the interest yield of the loan with the option of either repaying the principal loan or taking advantage of the increase in the value of the share. It is therefore an intermediate form of equity and debt. Convertible bonds are a popular form of financing, for example, in situations where a small growth company is being financed by venture capitalists. The option included in the loan to convert the growth company loan into equity at a later date may be extremely valuable to the investor. For this reason, a growth company does not usually have to pay the same interest on a convertible bond as on another loan.
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 7,300 units, but its actual level of activity was 7,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: The direct labor in the planning budget for May would be closest to:
Answer:
The variance of the direct labour in the planning budget of May is $330 Favorable.
Explanation:
As the data is not given in the question, the data is found online and is attached herewith.
Actual output = 7250 units
Actual cost of direct labor= $48,970
Standard direct labor cost per unit = $6.80
Standard direct labor cost for actual output = Actual output * standard direct materials cost per unit = 7250 units * $6.80 = $49300
Direct Labour Cost variance = Standard cost - Actual cost = $49300 - $48970= $330 F
As the actual cost is less than standard cost, the variance is favorable.
So, the answer is $330 Favorable.
Provide a real-world organization that is an example of each level of risk tolerance. Include the company name and industry for each. Include an explanation of whether the company is risk-averse, risk-neutral, or risk-seeking.
Final answer:
Companies exhibit varying levels of risk tolerance: Insurance Companies like State Farm are risk-averse, preferring certain outcomes; Finance Companies such as J.P. Morgan demonstrate risk neutrality, focusing on expected values; and Technology Start-Ups like SpaceX are risk-seeking, embracing high-risk opportunities for potential high rewards.
Explanation:
Identifying organizations based on their level of risk tolerance provides clear examples of how companies employ different strategies in the face of uncertainty. Businesses can generally be categorized as risk-averse, risk-neutral, or risk-seeking based on their approach to risk and decision-making.
Risk-Averse: Insurance Companies, such as State Farm in the insurance industry, exhibit risk aversion by preferentially offering guaranteed outcomes over gambles with similar expected values. Their strategy revolves around minimizing risks through diversification and careful risk assessment.Risk-Neutral: Many Finance Companies, for example, J.P. Morgan Chase & Co., operate with a risk-neutral perspective, focusing purely on the expected value of investments and decisions rather than showing a preference for or against risk.Risk-Seeking: Technology Start-Ups, such as SpaceX, often display a risk-seeking behavior, embracing high-risk, high-reward projects and innovations with the potential for substantial market disruption and growth.Each of these companies illustrates a distinct approach to handling risk, influenced by industry standards, market conditions, and corporate philosophy, impacting their operations, strategies, and investment decisions.
Lydia loves playing with animals. She is good at math and has taken several business classes that she enjoyed. Which career would be the best match for Lydia?
Answer:
The correct answer is letter "C": Owner of a pet sitting service.
Explanation:
According to the personality described in the case, Lydia would could be the owner of a petting service because she likes playing with animals, thus she likes spending time with pets but, as she has good mathematical skills and enjoys business classes she could be in charge of managing a group of people who just like her, have fun being around animals.
You are preparing for a business trip to Chile, where you will need to interact extensively with local professionals. Therefore, you would like to collect information regarding the local culture, and business practices prior to your departure. A colleague from Latin America recommends you to visit the Centre for Intercultural Learning and read though the country insights for Chile. Prepare a one -page description of the most striking cultural characteristics that may affect business interactions in this country.
Explanation:
I noticed some of the striking cultural features of the Intercultural Learning Center in Chile which could affect commercial interactions.
Meeting and Greeting
A handshake is customary when you meet someone in Chile. Rather of shaking your head, you can see people slapping each other on the right forearm. This is appropriate mark to shake hands with all those present when joining big groups. Once people are presented they begin formally and wait until they are informally invited. Present your surnames to people and Mr. Skip or Miss. Many Hispanic citizens have two parent names, a father's name and a mother's name. Typically just the dad's is included.
Gestures
In Chile, as you communicate, people leave little room among themselves. Don't be surprised because when you speak with the other you speak with either a hand on your back. Don't want to walk aside or feel nervous. Eye contact in Chile is critical because confidence, honesty and curiosity are expressed here. It is immoral in Chile to strike your right hand in your (stretched) left palm, a stretched palm with split fingers is crazy.
Business Meetings and Negotiating
A few weeks before arrival in Chile should be named. Summer holidays are January and February, so consider stopping them. Trust and communication as individuals are key to effective commercial ties. You should also use a first visit to Chile to set up a friendship and show who you are. Then the talk can be directed softly to your visit. Throughout Chilean culture, dignity plays a critical role. Never openly threaten or cause anyone shame. Keep to your word, since you'll be treated as unfaithful otherwise. With a strict and straight-forward way, Chileans negotiate. Ome frontline, still not overweight. Strong sales or intimidation tactics rarely succeeds. Be always willing to negotiate because this illustrates that you respect the partnership more than the financial elements of the arrangement.
To establish a business in a different country, such as Chile, it is necessary to learn about the local culture, so that the interaction with professionals and the Chilean consumer can be integrated and be effective for the company's positioning.
As characteristics of the culture of Chile, the following can be highlighted:
The influence of Spanish colonists and indigenous.The strong patriotism in the country.Tradition in wine production.It is the largest copper producer in the world.The country has a young population, the central region is well urbanized, and the economy is derived from mineral resources, agriculture, livestock and forestry resources.
Therefore, through this information, it is possible to develop a business that is more aligned with the interests of the population and economy of Chile.
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The balance in the unearned fees account, before adjustment at the end of the year, is $12,960. Required: Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $6,960. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
The journal entry is shown below:
Explanation:
The journal entry for the following is as follows:
On December 31
Unearned Fees A/c........................Dr $6,000
Fees Earned A/c..............................Cr $6,000
Being the adjusting entry is posted for the unearned fees.
The account of unearned fees is debited against the account of fees earned with the amount of $6,000.
Working Note:
Amount = Before adjustment amount - Unearned fees at the year end
where
Before adjustment amount is $12,960
Unearned fees at the year end is $6,960
Putting the values above:
Amount = $12,960 - $6,960
= $6,000
Central Industries has three product lines: A, B and C. The following information is available: Product A Product B Product C Sales $100,000 $90,000 $44,000 Variable costs 76,000 48,000 35,000 Contribution margin 24,000 42,000 9,000 Avoidable fixed costs 9,000 18,000 3,000 Unavoidable fixed costs 6,000 9,000 7,700 Operating income(loss) $9,000 $15,000 $(1,700) Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C and does not replace it. What will happen to operating income
Answer:
Operating Income will decrease by $6,000.
Explanation:
The unavoidable Fixed Cost of Product C will continue to incur even if it is dropped. So, Central Industries will still have to Incur $7,700 of Fixed Cost but by dropping Product C, they can save the existing loss of $1,700. This means that:
1,700 - 7,700 = -$6,000.
Thanks!
Answer:
It will decrease by 6,000 which is the operating contribtuion generated for the product before allocation of common fixed cost.
Explanation:
We have to build the segment income statement
[tex]\left[\begin{array}{ccccc}&A&B&C&Total\\$Sales&100000&90000&44000&234000\\$Variable Cost&-76000&-48000&-35000&-159000\\$Contribution&24000&42000&9000&75000\\$Tracable fixed&-9000&-18000&-3000&-30000\\$Operating Income&15000&24000&6000&45000\\$Fixed Cost&&&&-22700\\$Net Income&&&&22300\\\end{array}\right][/tex]
As the Product is generating a positive contribution for 6,000 it would be a financial disadvantage to discontinued. It is making a "loss" because of the common fixed cost allocated to the product not, the product.
Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $93,960 and 2,900 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $96,160 and actual direct labor-hours were 2,800.
Answer:
The question is missing the requirement stated below:
The predetermined overhead rate for the year was closest to: (Round your answer to 2 decimal places.)
The predetermined overhead rate is $32.40/ hour
Explanation:
The predetermined overhead rate is given by the below formula:
predetermined overhead rate=total estimated overhead/estimated direct labor hours
From the question,total estimated overhead is $93,960 while estimated direct labor hours is 2900 hours
Predetermined overhead rate=$93960/2900
Predetermined overhead rate=$32.40/hour
However overhead is computed thus:
Actual overhead rate =Actual manufacturing overhead/actual labor hours
Actual overhead rate=$96160/2800
=$34.34/hour
You have just received notification that you have won the $2.06 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 74 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? (Enter your answer in dollars, not millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $
Answer:
$1781.59
Explanation:
The present value is the current value of a future income or stream of money, at a specified interest rate (or discount rate).
The future value is the value of an income at a future date based on a rate of interest or discount rate.
We will use the present value (and future value) formula here to solve this problem. The formula is:
[tex]PV=\frac{FV}{(1+r)^n}[/tex]
Where
PV is the present value
FV is the future value
r is the rate of interest (or discount rate)
n is the time in years
Given in the problem, something that you will win 74 years from now, it will be worth $2.06 million, so this is the future value.
FV = 2,060,000
The rate of interest (discount rate) is 10 percent, which means:
r = 10% = 10/100 = 0.1
The time period in years would be 74 years, because 74 years from now you will get the money, so:
n = 74
Now, we plug these into the equation and get our answer:
[tex]PV=\frac{FV}{(1+r)^n}\\PV=\frac{2060000}{(1+0.1)^{74}}\\PV=\frac{2060000}{1.1^{74}}\\PV=1781.59[/tex]
Hence the present value is $1781.59
Final answer:
The present value of the specified $2.06 million future prize with a 10% discount rate over 74 years is approximately $687.53.
Explanation:
The present value of a future windfall can be determined using the formula for present value (PV), which is the future value (FV) divided by (1 plus the discount rate or interest rate) raised to the power of the number of periods (n). The question asks for the present value of a $2.06 million prize to be received in 74 years with a discount rate of 10%.
Using the formula PV = FV / (1 + r)^n, where FV is $2,060,000, the interest rate r is 10% or 0.10, and the number of periods n is 74, we get:
PV = $2,060,000 / (1 + 0.10)^74
Calculating this, we end up with a present value of:
PV = $2,060,000 / (1.10)^74 = $2,060,000 / 2995.57 ≈ $687.53
Therefore, the present value of the $2.06 million prize to be received in 74 years at a 10% discount rate is approximately $687.53.
"Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years?"
Answer:
I must deposit $12,103 today in order to have the same amount as your sister in 7 years.
Explanation:
Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.
Use following formula to calculate the future value of invested amount
FV = PV x ( 1+ r )^n
Invested by my sister
FV = $11,500 x ( 1 + 10% )^7
Invested by me
FV = PV x ( 1 + 9.2% )^7
According to given condition
FV of my investment = FV of my sister's investment
PV x ( 1 + 9.2% )^7 = $11,500 x ( 1 + 10% )^7
PV x ( 1.092 )^7 = $11,500 x ( 1.10 )^7
PV x 1.85165 = $11,500 x 1.9487
PV x 1.85165 = $22410.05
PV = $22410.05 / 1.85165
PV = $12,102.75 = $12,103
The language of price controls supposes that, in a competitive market without government regulations, the equilibrium price of hamburgers is $7 each.
Indicate whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
(a) There are many teenagers who would like to work at fast-food restaurants, but they are not hired due to minimum-wage laws.
(b) The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
(c) The government has instituted a legal minimum price of $8 each for hamburgers.
Answer:
A. Price floor, binding
B. Price ceiling, binding
C. Price ceiling binding
Explanation:
Price ceiling is when the government or an agency of the government sets the maximum price for a good or service. Price ceiling is binding if if is set below equilibrium price. Example of price ceiling is rent controls.
Price floor is the minimum price a good or service can be sold. Price floor is binding if it is set above equilibrium price.
Example of price floor is minimum wage.
In this question, minimum wage is an example of A binding price floor because it sets the minimum price labour should be paid and this has led to a fall in the demand for Labour.
In (b), the government sets a price ceiling because $5 is the maximum price hamburgers can be sold for. It is binding because $5 is below the equilibrium price.
In (c), the government set a price floor because $8 is the minimum price hamburgers can be sold for. It is binding because $8 is above equilibrium price,$7.
I hope my answer helps you
Kimberley, a manager at a large company, tends to assign group members to particular tasks, expects workers to maintain definite standards of performance, and emphasizes the meeting of deadlines. In the light of the Ohio State Studies, this indicates that Kimberley, as a leader, is ________.
Answer:
Kimberly, as a leader, is HIGH IN INITIATING STRUCTURE.
Explanation:
Consideration and initiating structures are two dimensions of leader behavior identified in 1945 as a result of the Ohio State Leadership Studies.
According to this studies:
Consideration (people-oriented) is the extent to which a leader exhibits concern for the welfare of the members of the group.
Initiating structure is the extent to which a leader defines leader and group member roles, initiates actions, organizes group activities and defines how tasks are to be accomplished by the group. This leadership style is task-oriented.
Since Kimberly tends to assign group members to particular tasks, expects workers to maintain definite standards of performance, and emphasizes the meeting of deadlines, this means that she is TASK-ORIENTED.
Therefore, In the light of the Ohio State Studies, this indicates that Kimberley, as a leader, is HIGH IN INITIATING STRUCTURE.
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,000 of indirect materials and $12,400 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Job 301
Direct materials $10,000
Direct labor 8,000
Factory overhead 6,000
Tota l$24,000
Job 302Direct materials $20,000
Direct labor 17,000
Factory overhead 12,750
Total $49,750
Job 303
Direct materials $24,000
Direct labor 18,000
Factory overhead
—Job 304
Direct materials $14,000
Direct labor 12,000
Factory overhead
—
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.
A. Direct and indirect materials used.
B. Direct and indirect labor used.
C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
D. Completion of Jobs 301 and 302
Answer:
WIP inventory 68,000 debit
Factory Overhead 8000 debit
Raw Materials Inventory 76,000 credit
WIP inventory 55.000 debit
Factory Overhead 12,400 debit
Factory Payroll payable 77,400 credit
WIP inventory 31,250 debit
Factory overhead 31,250 credit
Finished Goods Inventory 73,750 debit
WIP inventory 73,750 credit
Explanation:
Direct Materials used:
10,000 + 20,000 + 24,000 + 14,000 = 68,000
Direct Labor used:
8,000 + 17,000 + 18,000 + 12,000 = 55,000
Overhead Applied:
6,000 + 12,750 + 13,500 + 9,000 = 31,250
Overhead rate:
6,000 / 8,000 = 0.75
12,750 / 17,000 = 0.75
Finished goods:
24,000 + 49,750 = 73,750
Ballard Company uses the perpetual inventory system. The company purchased $9,700 of merchandise from Andes Company under the terms 3/10, net/30. Ballard paid for the merchandise within 10 days and also paid $420 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $18,400 cash. The amount of gross margin for this merchandise is:a. $8,280. b. $9,700. c. $8,571.d. $8,700.
Answer:
c. $ 8,571
Explanation:
Computation of gross margin
Purchase cost $ 9,700
Less: Discount availed 3 % $ ( 291)
Net purchases $ 9,409
Add: Freight $ 420
Total cost of merchandise $ 9,829
Sales value $ 18,400
Gross margin on merchandise sales $ 8,571
The following information was available for Paul Company at December 31, 2020: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $968,000; and sales $1,360,000. Paul’s inventory turnover in 2020 wasa21.5 days.b.26.4 days.c.30.2 days.d.33.8 days.
Answer:
Option (c) is correct.
Explanation:
Given that,
Beginning inventory = $90,000;
Ending inventory = $70,000;
Cost of goods sold = $968,000
Sales = $1,360,000
Average inventor:
= (Beginning inventory + Ending inventory) ÷ 2
= ($90,000 + $70,000) ÷ 2
= $160,000 ÷ 2
= $80,000
Inventory turnover is the ratio of cost of goods sold and average inventory.
Paul’s inventory turnover in 2020:
= Cost of goods sold ÷ Average Inventory
= $968,000 ÷ $80,000
= 12.1 times
Days in inventory:
= 365 days ÷ Inventory turnover ratio
= 365 days ÷ 12.1
= 30.16 or 30.2 days
Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $.0095. You expect the spot rate in 60 days to be $.0090. How many dollars will you receive for the 5,000,000 yen 60 days from now if you sell yen forward
Answer:
$ 47,500
Explanation:
The 60 day Forward rate is USD 0.0095 per JPY
5,000,000 JPY x 0.0095USD = 47,500 USD
The company would receive $ 47,500 at the maturity date.
Answer:
$47,500
Explanation:
A hedge is an investment position that is a strategic technique of employing financial instruments (such as a forward contract) or market techniques to offset or guide against all possible losses or gains that may result from a particular investment.
Since the position is hedged by selling Japanese yen forward, the relevant rate to use to calculate the number of dollars to receive for the 5,000,000 yen 60 days from now is the forward rate of $.0095. We therefore have:
The dollar amount to receive = 5,000,000 Japanese yen × $0.0095 forward rate = $47,500
Therefore, $47,500 will be received for the 5,000,000 yen 60 days from now if the company sells yen forward.
nternational trade generally results in ____ exposure to international political risk and ____ exposure to international economic conditions, when compared to other methods of international business.
International trade generally results in Lower exposure to international political risk and Lower exposure to international economic conditions, when compared to other methods of international business.
Explanation:
The term International trade refers to the exchange of capital, goods, and services across international boundaries /territories.
The international Trade represents a significant share of gross domestic product (GDP) of a country
Below mentioned are few Advantages of International Trade
It helps in increasing the revenues oof a nationSince the international market has a big size so the competition gets DecreasedIn international trade the countries benefit from from currency exchange. .International market serve as a disposal ground for the Disposal of surplus goods.The fact that the price of diamonds is higher than the price of water:
A. can be explained as the outcome of a consumer optimum in consumer choice theory.
B. cannot be explained by behavioral economics or consumer choice theory.
C. is an outcome of irrational behavior in consumer choice theory.
D. can be explained only by behavioral economics but not by consumer choice theory.
Answer: D
Explanation:
Behavioral economics studies the impact of cognitive, psychological, cultural, emotional and social factors on individuals economic decisions. Behavioral economics is concerned with the extent of rationality of individuals, firms and governments. The study includes how market choices are made and the components that propel public choices.
Behavioral economics is important because it gives us an idea about how the mind of humans work. The greater the supply of a particular good, the more we use the good, the less we appreciate it. There are oceans of water and we always get water easily but there are fewer diamonds embedded and hidden in rocks which are not cheap and readily available.
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 30 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 15 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. Assume that both countries have constant cost functions for both products. nstructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? unit(s) of fisih c. What is the opportunity cost of producing 1 unit of fish in Mountania? unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? unitis) of fish e. (Click to select)has a comparative advantage in the production of fish. ck to select) has a comparative advantage in the production of coconuts. f. What will be the terms of trade for fish? Betweena andunits) of coconuts . What will be the terms of trade for coconuts? and?
Answer a:
The opportunity cost of producing 1 unit of fish in Islandia:
Given Data: It can produce 60 units of fish or 30 units of coconuts
Opportunity cost of producing 1 unit of fish 30 coconuts/60 fish Opportunity cost of producing 1 unit of fish = 0.5 unit of coconuts.Thus,1 unit of fish has an opportunity cost of 0.5 units of coconuts.
Answer b :
The opportunity cost of producing 1 unit of coconuts:
Given Data: It can produce 60 units of fish or 30 units of coconuts
Opportunity cost = 60 fish/30 coconut Opportunity cost= 2 unit of fish.Thus,1 unit of coconut has an opportunity cost of 2 unit of coconut.
Answer c:
The opportunity cost of producing 1 unit of fish in Mountania:
Given Data:it can produce 15 units of fish or 45 units of coconuts.
Opportunity cost =45 coconuts/15 fishOpportunity cost = 3 units of coconutThus,1 unit of fish has an opportunity cost of 2 unit of fish.
Answer d;
The opportunity cost of producing 1 unit of coconuts in Mountania:
Given Data: it can produce 15 units of fish or 45 units of coconuts.
Opportunity cost =15 fish/45 coconut Opportunity cost= 0.33 unit of fishThus,1 unit of coconut has an opportunity cost of 0.33 unit of coconut.
Answer e:
The comparative advantage in the production of fish whereas the production of coconuts.
Islandia produces 60 units of fish or 30 units of coconuts and Mountania produces 15 units of fish or 45 units of coconuts.Thus,the Islandia has a comparative advantage in fish production because it can produce 45 more fish given same resources
Answer f:
Part 1 :
The terms of trade for fish :
Multiply the Opportunity Cost of Fish in Mountania (3 coconuts) by the Opportunity Cost of Fish in Icelandia (0.5 Coconuts) to get 1.5 units of coconut as a replacement standard. With 1.5 units of coconut per fish, both countries will be happy because they will be more than the benefits that Icelandia would have received and less than the costs that Mountainia would have incurred.
Part 2:
The terms of trade for coconuts:
By multiplying the Opportunity Cost of Islandia's Coconut (2) by the Opportunity Cost of Mountainia's Coconut (0.33 Coconut), you can derive 0.66 units of fish as the basis for the exchange. Both countries will be satisfied with 0.66 units of fish per coconut, which is lower than the cost that Icelandia will bear and higher than the profit that Mountainia will receive.Learn more :
https://brainly.com/question/20215707?referrer=searchResults
Sometimes word of mouth and expert recommendations cause a product to become more popular. However, the firm that produces this product may find it difficult to get parts to increase production, and it might have to pay higher prices to receive an adequate supply of parts. In this case, what will happen to the future price of the product?
Answer:
Invariably, the cost of the product will rise. A relatively increase in supply parts directly influences the price of a product.
Answer:
B. The equilibrium price should rise as the supply curve shifts to the left and the demand curve shifts to the right.
Explanation:
. What is the expected impact of increased security measures imposed by the federal government on airlines and consumers? What do you predict will happen to airline fares and volume of travel? Instructions: Draw a parallel shift in the demand and supply curves by grabbing, dragging, and then dropping the curves to the new positions. b. The impact of increased security measures on airline fares . The impact of increased security measures on the volume of travel
Answer:
Impact of security measures on airline fares - uncertain (see explanation)
Impact of security measures on the volume of travel - decreases
Explanation:
When security measures are increased by the federal government, it means that the cost of flying will increase. This affects both the supplier (airlines) as well as the consumer (travelers).
Refer Diagram from this point onwards :)
When there is increased security measures, airlines would have to be more cautious in their flying operations as they now have more legal standards to abide by. This will lead to a shift left in the supply curve from S1 to S2 causing a reduction in quantity supplied from Q1 to Q2.
At the same time, increased security measures will also discourage many travelers due to excessive rules and guidelines that they now have to follow while flying. Hence, there will be a left-hand shift in the demand curve from D1 to D2, causing quantity demanded to also fall from Q1 to Q2.
It is evident that the volume of travel will decrease with increased security measures. However, what happens to price is uncertain. it can be of 3 scenarios:
1. If quantity demanded shifts left equally to the left shift in quantity supplied, price will remain constant (as shown in the diagram).
2. If quantity demanded shifts further left than quantity supplied, supply exceeds demand. Thus, there will be a slight fall in price since now there is a surplus.
3. If quantity supplied shifts further left than quantity demanded, demand exceeds supply. Thus, there will be a slight rise in price since now there is a shortage.
Hope this helps!
Which of the following is not true regarding the use of simulation in multinational capital budgeting? a. It can be used to generate a probability distribution of NPVs. b. It can only be used for one variable at a time. c. It generates a probability distribution of NPVs by randomly drawing values for the input variable(s). d. It can be used to develop probability distributions of all variables with uncertain future values.
b. It can only be used for one variable at a time is the false statement regarding the use of simulation in multinational capital budgeting.
Explanation:
The process of determining the net present value of the project is known as multinational capital budgeting. The capital budget can be determined by estimating the present value of cash flow in the project and subtracting the initial expenditure required for the projects.
When considering the use of simulation in multinational capital budgeting, it can be used for many variables at a time.
The flow of cash is focused in the long-term investment projects. Multinational capital budgeting can help in determining investment opportunity of the company.
The following information is available for a company's utility cost for operating its machines over the last four months.
Month Machine hours Utility cost
January 1,020 $6,570
February 1,920 $7,140
March 2,640 $8,100
April 720 $4,500
Using the high-low method, the estimated variable cost per machine hour for utilities is:_______
Answer:
Using the high-low method, the estimated variable cost per machine hour for utilities is $1.875/ machine hour
Explanation:
High Low Method is a method used to separate Fixed and Variable Costs Components of a semi-variable cost/overhead.
Step 1 : Establish 2 points - The Highest and The Lowest
High - March 2,640 hrs : $8,100
Low - April 720 hrs : $ 4,500
Step 2 Calculate the variable Cost Component
Variable Costs = Overhead Cost difference /Activity difference
= ($8,100-$4,500)/(2,640hrs-720hrs)
= $3,600/1,920hrs
= $1.875/hr