Answer:
Part 1. Calculate the total prime cost for last week
Direct materials 28,000
Add Direct labor 28,000
Prime Cost 56,000
Part 2. Calculate the per-unit prime cost
per-unit prime cost=$56,000/5,600
=$10.00
Part 3. Calculate the total conversion cost for last week
Direct labor 28,000
Add Manufacturing Overheads 55,000
Total conversion cost 83,000
Part 4. Calculate the per-unit conversion cost.
per-unit conversion cost=$83,000/5,600
=$14.82
Explanation:
Part 1. Calculate the total prime cost for last week
Prime Cost = Direct Materials + Direct Labor
Part 2. Calculate the per-unit prime cost
Per Unit Prime Cost = total prime cost/number of units manufactured
Part 3. Calculate the total conversion cost for last week
Conversion Cost = Direct Labor + Manufacturing Overheads
Part 4. Calculate the per-unit conversion cost.
Per-unit conversion cost =Total Conversion Cost / number of units manufactured
The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.
Explanation:The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = $56,000.
The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = $10 per unit (rounded to the nearest cent).
The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = $83,000.
The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).
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The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $700. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $8,000. Mar. 4 Purchased office supplies for $700 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $7,800 on account for the services previously recorded What is the balance in Cash on March 6?
The balance in the Cash account on March 6, after accounting for the listed transactions, is $10,400.
To calculate the balance in Cash on March 6, we need to account for all the cash inflows and outflows from March 1 through March 6, as per the transactions given. Here's a breakdown of the cash transactions:
Mar. 1: Cash inflow from issued common stock: +$7,000
Mar. 2: Rent payment: -$700
Mar. 3: Purchase of equipment by paying cash: -$3,000
Mar. 4: Purchase of office supplies: -$700
Mar. 5: No change in cash as it is billing on account.
Mar. 6: Received cash for services: +$7,800
Starting with the initial cash balance of $0 before March 1st, we can add and subtract these amounts to find the final cash balance.
Calculation:
Starting balance: $0
Add $7,000 (common stock issued)
Subtract $700 (rent)
Subtract $3,000 (equipment purchase)
Subtract $700 (office supplies)
Add $7,800 (cash received for services)
Final Cash balance on March 6 = $0 + $7,000 - $700 - $3,000 - $700 + $7,800 = $10,400.
Therefore, the balance in the Cash account on March 6 is $10,400.
Four friends plan to form a corporation for purposes of constructing a shopping center. Charlie will be contributing the land for the project and wants more security than shareholder status provides.
He is contemplating two possibilities:
receive corporate bonds for his land or take out a mortgage on the land before transferring it to the corporation.
Comment on the choices Charlie is considering. What alternatives can you suggest?
Charlie is contemplating the degree of risk and security in either receiving corporate bonds or mortgaging the land before transferring it to the corporation. Both options have their pros and cons related to risk, cash flow, and personal financial responsibility. Another possibility for Charlie is to enter the corporation as a secured creditor by lending the corporation money secured by the land.
Explanation:Charlie's deliberation between receiving corporate bonds for his land or taking out a mortgage on the land prior to its transfer to the corporation involves weighing different levels of security and risk. If Charlie opts for corporate bonds, he essentially exchanges his land for debt securities that can be monetized or held until maturity. This option has a predictable cash flow, though it may not increase in value. However, the risk is the corporation's solvency and bond coverage.
If he mortgages and then transfers the land, he can access immediate funds, retaining a sort of ownership on the property due to the lien. However, this increases his personal financial burden as he is legally obligated to repay the mortgage, even if the corporation fails.
An alternative suggestion might include entering the corporation as a secured creditor where instead of receiving shares, Charlie lends money to the corporation using the land as security for the loan. This could potentially offer more security than being just a shareholder.
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A major purpose of SPIN (situation questions, problem questions, implication questions, and need-payoff questions) or ADAPT (assessment questions, discovery questions, activation questions, projection questions, and transition questions) is to help a salesperson identify the _____ of a product for a buyer.
Answer:
The correct word for the blank space is: confirmed benefits.
Explanation:
SPIN (situation questions, problem questions, implication questions, and need-payoff questions) is an approach used by salespeople to understand the current situation of consumers and through a series of four (4) questions help them understand the implications of the decision they will take thanks to the solution the salesperson is to provide.
ADAPT (assessment questions, discovery questions, activation questions, projection questions, and transition questions) as well as SPIN, aims to assess consumers in their decision-making. The difference relies on how the questions are formulated. ADAPT uses a sequence of questions starting from the broadest questions to end with the most specific, narrow inconvenience the consumer might have.
Both SPIN and ADAPT allow salespeople to find out what are the confirmed benefits of the product that should be offered to the clients.
Answer:
Comfirmed Benefits
Explanation:
I'm pretty sure it wrong, but why not try to answer it...
The following information is available for Birch Company at December 31:
Money market fund balance $2,790
Certificate of deposit maturing June 30 of next year $10,000
Postdated checks from customers $1,475
Cash in bank account $21,430
NSF checks from customers returned by bank $650
Cash in petty cash fund $200
Inventory of postage stamps $24
U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year $5,000
Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
A $29,420
B $41,345
C $31,345
D $39,420
E $38,770
Answer:
Cash and cash equivalents of $29,420,option A.
Explanation:
The amount of cash and cash equivalents Birch should report on December 31 is made up of the following:
Money market fund balance $2790
Cash in bank account $21430
Cash in petty cash fund $200
U.S treasury bill $5000
Total cash and cash equivalents $29,420
Cash and cash equivalents are resources of the company that are readily amount of cash and those can could be easily converted to cash without significant portion of its value.
Money market fund is the fund set aside for trading in securities on a recognized exchange ,since securities being bought and sold are tradeable on stock exchange,the securities can be converted into cash in no distant time.
U.S treasury bills are viewed as cash equivalent if maturity is less than 3 months.
Brown Company incurred costs of $20,000 for material, $10,000 for labor, and $16,000 for factory Overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred out. The unit cost for material is:
Answer:
Unit cost of material is $4
Explanation:
Cost of production is the cost incurred during production of goods and services. Production cost is made up of the direct cost which include cost of material, and indirect cost such as labour and factory overhead. Total cost are then allocated to units produced to get the total amount spent per unit of the product.
However we were asked to calculate the unit cost of material, which is the direct input used in this production process.
Unit cost of material= Cost of material/number of units
Unit cost of material= 20,000/5,000
Unit cost of material = $4
The unit cost for material at Brown Company, with a total material cost of $20,000 for producing 5,000 units, is calculated to be $4 per unit. This calculation is critical for understanding cost distribution in production.
Explanation:In this scenario, the Brown Company is calculating the unit cost for material used in the production of 5,000 units, where the total material cost is $20,000. To find the unit cost for material, you must divide the total material cost by the number of units produced. This calculation represents a fundamental concept in cost accounting, emphasizing the importance of understanding how individual costs contribute to the total production cost.
Now, let's perform the calculation:
Total Material Cost = $20,000Number of Units Produced = 5,000 unitsUnit Cost for Material = Total Material Cost / Number of Units ProducedUnit Cost for Material = $20,000 / 5,000 unitsUnit Cost for Material = $4 per unitThis example illustrates how dividing the total cost by the number of units gives us a per-unit breakdown of the costs, which is essential for pricing, budgeting, and financial analysis within a company.
Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used S1 Department S1 S2 P1 P2 Direct costs $180,000 $162.000 $ 197000 $140000 S2 0.70 P1 0.10 0.300.50 P2 0.20 0.20 Under the step-method of cost allocation, the amount of costs allocated from $2 to P2 would be_________________.a. $81000b. $84 250c. $180,000d. $93.500
Solution:
S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )
S2 total is $162,000 + $126,000 = $288,000
S2 $126,000 is allocated 19.7% to P2 or $81000
Under the step-method of cost allocation,
the amount of costs allocated from $2 to P2 would be $81000
g suppose that bigbucks company pays a dividend this year of $7 per share. You expect the dividend to grow by 2% per year, so you discount bigbucks dividend at 4%. What is the most youwould be willing to pay for a share of stock in bigbucks
Answer:
$357
Explanation:
The price that g would pay for the stock of the bigbucks shall be determined through the following mentioned formula:
Price of stock of big bucks=[D(1+g)/(r-g)]
In the given question
D=dividend paid by the Big bucks this year=$7
g=growth rate in dividend=2%
r=discount rate=4%
Price of stock of big bucks=[7(1+2%)/(4%-2%)]
=$357
On April 1, 2018, On April 1, 2018, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $570,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $570,000 and acceptance of the note receivable on April 1, 2018. 2. The adjustment for accrued interest on December 31, 2018. 3. Cash collection of the note and interest on April 1, 2019. Record the above transactions for Shoemaker Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $570,000 to its supplier using a 12-month, 11% note. Required: 1. The loan of $570,000 and acceptance of the note receivable on April 1, 2018. 2. The adjustment for accrued interest on December 31, 2018. 3. Cash collection of the note and interest on April 1, 2019. Record the above transactions for Shoemaker Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Explanation:
1. April 1, 2018
Dr Notes Receivable 570,000
Cr Cash 570,000
2. Dec 31, 2018
Dr Interest Receivable 47,025
Cr Interest revenue 47,025
*Interest Revenue = Face value*Annual int. rate*Fraction of the year = 570,000*11%*9/12 = 47,025
3. April 1, 2019
Dr Cash 632,700
Cr Notes receivable 570,000
Cr Int receivable 47,025
Cr Int revenue 15,675
*Int revenue = 570,000*11%*3/12 = 15,675
Answer:
JOURNAL ENTRIES
1) Debit Note Receivable $570,000 Credit Bank $570,000
2) Debit Accrued Interest income $47,025 Credit Interest income $47,025
3) Debit Bank $632,700 Credit Note receivable $570,000 Credit Accrued interest income $47,025 Credit interest income $15,675
Explanation:
Interest income = $570,000 * 11% * 9/12 = $47025 for 2018
interest income for 2019 = $570,000*11%*3/12 = $15,675
The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31.
Account Name Debits Credits
Cash 69,600
Accounts Receivable 5,200
Prepaid Insurance 5,000
Equipment 78,750
Land 26,550
Accounts Payable 32,600
Unearned Revenue 2,100
Notes payable (long-term) 66,000
Common stock 5,000
Retained Earnings 51,815
Dividends 0
Service Revenue 33,500
Wages Expense 4,800
Repairs and Maintenance-
Expense 830
Office Expenses 285
Totals 191,015 191,015
(a) Using the unadjusted trial balance provided, create an Income Statement for Equilibrium Riding, Inc., for the year ended December 31.
(b) Using the unadjusted trial balance provided, create a Statement of Retained Earnings for Equilibrium Riding, Inc., for the year ended December 31.
(c) Using the unadjusted trial balance provided, create a classified Balance Sheet for Equilibrium Riding, Inc., for the year ended December 31.
Answer:
Part a) Net Income for the year $27,585
Part b) Balance of Retained Earnings for the year $79,400
Part c) Total Assets as the December 31 $185,100
Explanation:
Part a)
Equilibrium Riding Inc.
Income Statement for the year ended as of 31 December
Service Revenue $33,500
Less Expenses
Wages Expense $4,800
Repairs and Maintenance Expense $830
Office Expenses $285
Net Revenue $27,585
Part b)
Equilibrium Riding Inc.
Statement of changes in Equity for the year ended as of 31 December
Retained Earnings at the beginning of the period $51,815
Add: Net income for the year $27,585
Less Dividends $0
Retained earnings at the end of the period $79,400
Part c)
Equilibrium Riding Inc.
Balance Sheet as at 31 December
Assets
Non-Current Assets
Equipment $78,750
Land $26,550
Current Assets
Accounts Receivable $5,200
Cash $69,600
Prepaid Insurance $5,000
Total Assets $185,100
Equity and Liabilities
Owners Equity
Common Stock $5,000
Retained Earnings $79,400
Non Current Liabilities
Notes Payable (long-term) $66,000
Current Liabilities
Accounts Payable $32,600
Unearned Revenue $2,100
Total Equity and Liabilities $185,100
Answer:
Please find the answer below
Explanation:
1. Equilibrium, Inc
Income statement for the year ended December 31
($)
Service revenue 33, 500
Other income 0
Gross Income 33, 500
Expenses:
Wages expense 4, 800
Repairs and maintenance 830
Office expenses 285
Total Expenses (5, 915)
Net Income 27, 585
2. Equilibrium, Inc
Statement of retained earnings
for the year ended December 31
($)
Retained earnings, 1 Jan 51, 815
Dividends (0)
Net profit 27, 915
Retained earnings , Dec 31 79, 400
3. Equilibrium, Inc
Balance sheet
for the year ended December 31
($)
Non-Current assets
Equipment 78, 750
Land 26, 550
Total Non-current assets 105, 300
Current Assets
Cash 69, 600
Accounts Receivable 5, 200
Prepaid insurance 5, 000
Total non-current assets 79, 800
TOTAL ASSETS 185, 100
Equity
Common stock 5, 000
Retained earnings 79, 400
Total equity 84, 400
Liabilities
Notes payable (long-term) 66, 000
Unearned revenue 2, 100
Accounts payable 32, 600
Total liabilities 100, 700
TOTAL EQUITY AND LIABILITIES 185, 100
The method used by managers when comparing unit costs with budgeted costs or other measures is broadly known as: Multiple Choice Account reconciliation. Sales management. Cost control. Employee evaluation.
Answer:
Option A, ACCOUNT RECONCILIATION.
Explanation:
Reconciliation is an accounting process that compares two sets of records to check that figures are correct and in agreement. Account reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete.
Account reconciliation is particularly useful for explaining the difference between two financial records or account balances.
* Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations.
* Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process.
* An employee evaluation is the assessment and review of a worker’s job performance.
The method used by managers when comparing unit costs with budgeted cost or other measures is broadly known as ACCOUNT RECONCILIATION.
Scenario 13-6 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce Refer to Scenario 13-6. An economist would calculate Ziva's total cost of farming to equal _____________.A. $300B. $250C. $130 D. $380
Answer:
The correct answer is:
$380 (D.)
Explanation:
The cost of production of a good or service is the amount used up or forfeited in the production of the good or service. In this scenario, from Ziva used 10 hours for farming and because she dedicated 10 hours, if she had been available for her consultancy service which paid her $25 per hour, she would have earned a total of $250 at the end of the 10 hours she used in farming. In addition, she also spend $130 on the seed that she used for planting, which is the direct cost of farming (production). Hence the total amount given up in the farming process will make up the total cost of farming, and this includes; the $250 given up for consultancy, and the $130 spent on seeds, hence, the total cost of production is;
= 250 + 130 = $380
Suppose that you own 1,000 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $100 per share. (LO17-1) a. What will be the number of shares that you hold after the stock dividend is paid? b. What will be the total value of your equity position after the stock dividend is paid? c. What will be the number of shares that you hold if the firm splits five-for-four instead of paying the stock dividend?
Answer:
a. 1250 shares
b. $125000
c. 1250 shares
Explanation:
A stock dividend refers to dividend payment by an entity in the form of stocks and not in cash, thereby increases the number of shares held.
Dividend Declared = 25% of $100 = $ 25 per share
Total dividend declared = $25 × 1000 shares = $25,000
Number of shares held after the stock dividend is declared = 1000 shares + [tex]\frac{25000}{100}[/tex] = 1250 shares
(b) Total value of equity position = $1250 shares × 100 = $125,000
(c) Number of shares held after stock split = 1000 shares × [tex]\frac{5}{4}[/tex] = 1250 shares
After the stock dividend, you will hold a total of 1,250 shares and the total value of your equity position will be $125,000. If the firm splits five-for-four, you will hold 1,250 shares.
Explanation:a. After the stock dividend is paid, the number of shares you will hold will increase by 25%. Since you initially own 1,000 shares, your new holdings will be 1,000 x 1.25 = 1,250 shares.
b. The total value of your equity position after the stock dividend is paid can be calculated by multiplying the new number of shares (1,250) by the stock price ($100 per share). Therefore, the total value will be 1,250 x $100 = $125,000.
c. If the firm splits five-for-four instead of paying the stock dividend, this means that for every four shares you own, you will receive five additional shares. Since you initially own 1,000 shares, and the split is five-for-four, you will receive 1,000 / 4 x 5 = 1,250 shares after the split.
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Required information Accounts receivable are amounts due from customers for credit sales. A subsidiary ledger lists amounts owed by each customer. Credit sales arise from at least two sources: (1) sales on credit and (2) store credit card sales. Sales on credit refers to a company's granting credit directly to customers. Store credit card sales involve customers' use of store credit cards. Messing Company has their own credit card and makes a credit sale on February 1 to one of its customers for $5,000. Prepare the February 1 journal entry for Messing Company by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns
Answer:
Messing company Journal entries for Store Credit Card usage for a Customer
Explanation:
The Journal entries required includes
a. Recognition of the Bank credit advanced via usage of Credit Card (Liability)
b. Recognition of the Customer Account funded by this Credit line (Accounts receivable)
c. Recognition of the Sales created by this credit utilization
Kindly refer to attachment for detailed Journal entries
A credit sale of $5,000 made by Messing Company would create a journal entry where the Accounts Receivable is debited by $5,000 and Sales Revenue is credited by $5,000. These entries reflect the recognition of earned revenue and anticipations of future cash collection.
Explanation:When Messing Company makes a credit sale, two accounts are impacted: Accounts Receivable and Sales Revenue. Accounts Receivable is an asset account and is therefore increased with a debit entry. On the other hand, Sales Revenue, being an income account, increases with a credit entry. The journal entry for this $5,000 credit sale would be as follows:
Debit: Accounts Receivable - $5,000Credit: Sales Revenue - $5,000
This indicates that the company has earned revenue of $5,000 (even though the cash has not been received yet) by extending credit to a customer. The corresponding increase in Accounts Receivable reflects the company's expectation to collect this cash in the future.
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Ethan conducted multiple marketing research activities for the Protiviti global consulting firm. After he created reports highlighting his marketing findings he considered his next step.
What is the next step Ethan needs to take with sharing the information?
Answer: Implementation of Findings and Sharing Information gathered with decision-makers to aid implementation.
Explanation:
Marketing Research is a series of steps taken in gaining a better understanding of a company's goods and services in the market field, as well as, methods that can be employed to improve the distribution and value of the product.
The series of steps involved in marketing research include; Problem Identification, Enumeration of the research goals, Research Planning and design, Data collation, Data analysis, presentation of the report, and Implementation of findings.
Ethan has just reached the concluding part of his marketing research where he now creates a report of his findings and proposes several actions.
His next step would be to take action. He should also be willing to share the information gathered from the findings with decision-makers in the organization as this would be a helpful guide to them in executing actions.
Under CARD, colleges and universities must: a. disclose financial relationships with the credit card companies. b. provide debt counseling for students. c. limit locations for student solicitation for credit cards. d. do all of these.
Answer: D. do all of these.
Explanation:CARD(credit card accountability, responsibility and disclosure) act is a set of guidelines and rules which guides consumers and help them to better understand their credit cards and reduce and control unfair practices from credit card companies, those rules, also concerns college students.
ALL THE OPTIONS ARE CORRECT REGARDING CARD RULES AND GUIDELINES FOR COLLEGE STUDENTS.
When a foreman orders an assembly-line employce to carry out a task, which the employee perceives as unethical yet the employee feels compelled to complete, the foreman is exercising a. legitimate power. b expert power c. reward power d. contingent punishment power e. noncontingent reward behavior.
Answer:
The correct answer is option A,legitimate power.
Explanation:
Legitimate power refers to the power attained by virtue of formal position occupied by a superior that make subordinates believe in the legitimacy of his position and compelled to obey the instructions given by the superior.
When subordinates obey a superior as a result of wealth of knowledge, experience and skills set of the superior, such is said to be said expert power.
A manager might also offer some benefits or rewards in order to bring about obedience in the employee,this is known as reward power.
Contingent punishment power is a way to improve employee's performance by giving negative feedback inform of low appraisal score ,reprimands and so on
Non-contingent reward behavior implies giving rewards to employees which are not in any way related to employee's performance
The Sonny Bono Copyright Extension Act: a. does not apply to individual copyright ownership. b. does not apply to corporate copyright ownership. c. does not provide protection for movies. d. extended the time for the federal copyright protection to 70 years beyond the life of the creator/author. e. none of the above
Answer:
The correct answer is letter "D": extended the time for the federal copyright protection to 70 years beyond the life of the creator/author.
Explanation:
The Sonny Bono Copyright Extension Act mostly known as the Copyright Term Extension Act (CTEA) is a regulation passed in 1998 to extend the length of copyrights. It is an amendment to the Copyright Act of 1976 where copyrights granted exclusiveness over inventions for 50 years after the decease of the author if individual or 75 years for corporate creations.
With the CTEA copyrights are granted to be used by individual creators only for until 70 years after their decease or 120 years for corporate authorship.
The following is a listing of all of the income statement accounts for Mulberry Street Sportswear as they appear on the adjusted trial balance as of December 31 Advertising Expense $11,100 Cost of Goods Sold 88,000 Delivery Expense 4,300 Insurance Expense 1,100 Income Tax Expense 6,560 Rent Expense 12,000 Interest Expense 1,400 Sales Revenue 162,000 Sales Discounts 9,100 Sales Returns and Allowances 18,600 a. Prepare a multistep income statement.b. Compute the gross profit percentage.
a. The Gross Profit is = 46300
b. Then the Gross Profit Percentage is 34.48 %.
Computation of the Gross profit
a.) When Multi-Step income statement separately shows operating and also non-operating revenues and then Expenses.
Then Advertising Expense = 11000
Cost of Goods Sold = 88000
Delivery Expense is = 4300
Then Insurance Expense = 1100
Income Tax Expense = 6560
Rent Expense is = 12000
Then Interest Expense = 1400
Sales Revenue is = 162000
Sales Return & Allowance is = 18600
Sales Discount is = 9100
Computation
Sales Revenue 162000
Sales Discount -9100
Sales return & allowance -18600
Net Sales revenue 134300
Cost of goods sold -8800
Gross Profit 46300
Operating Expenses
Selling Expenses
Advertising Expense -11000
Delivery Expense 4300
Administrative Expenses
Rent Expense -12000
Insurance Expense -1100
Operating income 17900
Non-Operating Revenues % Expense
Interest Expense -1400
Net Income Before Tax 16500
Income Tax Expense -6560
Net Income After Tax 9940
b. When the Gross Profit Percentage is = (Gross Profit / Net Sales ) x 100
Gross Profit %age is = (46300/134300) x 100 = 34.48 %
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To prepare a multistep income statement, start with sales revenue and subtract sales discounts and returns/allowances. Then subtract cost of goods sold and other expenses to get operating income. Finally, subtract income tax expense to get net income. The gross profit percentage is calculated by dividing gross profit by net sales and multiplying by 100.
Explanation:a. Multistep Income Statement:To prepare a multistep income statement, we need to break down the various components of revenue and expenses. Here's how we can do it:
Start with Sales Revenue: $162,000Subtract Sales Discounts: $9,100Subtract Sales Returns and Allowances: $18,600This gives us Net Sales: $134,300Subtract Cost of Goods Sold: $88,000This gives us Gross Profit: $46,300Subtract other expenses: Advertising Expense ($11,100), Delivery Expense ($4,300), Insurance Expense ($1,100), Rent Expense ($12,000), and Interest Expense ($1,400)This gives us Operating Income: $16,400Finally, subtract Income Tax Expense: $6,560This gives us Net Income: $9,840b. Gross Profit Percentage:
To compute the gross profit percentage, divide Gross Profit ($46,300) by Net Sales ($134,300) and multiply by 100:
Gross Profit Percentage = (Gross Profit / Net Sales) * 100 = ($46,300 / $134,300) * 100 = 34.5%
Some research has suggested that laissez faire leadership in conjunction with transactional and transformational leadership may be most effective, bringing to light one of the main themes in the textbook, which is ______.
A. situational leadership is the most effective form of leadership
B. oftentimes the best approach is a combination of leadership approaches
C. the traits of effective leaders depend on the context
D. all leadership approaches have an element of laissez faire
Answer:
D. all leadership approaches have an element of laissez faire.
Explanation:
Laissez faire is the leadership style where the leader sets objectives, communicates them, and leaves the employees toale decision on how to achieve the set targets.
This style of leadership goes with some level of trust as the leader is hands off from the day to day activities of subordinates.
Every leadership style Jada degree of laissez faire because the leader cannot do everything but must delegate some functions.
2. You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. How do you explain to your friends that despite making a profit, it is too costly for you to continue running your store
Answer:
Economic profit is negative
Explanation:
The difference between accounting and economic profit is that economic profit includes notional profit or implicit profit/loss, referred to as opportunity cost.
Opportunity cost refers to the benefits foregone of opting for an alternative when another alternative is chosen instead.
In the given case, Accounting profit = Revenues - Costs
Accounting Profit = $200,000 - ($100,000 + 20,000)
Accounting Profit = $80,000
Economic Profit = Accounting profit - Implicit Costs
Economic Profit = $80,000 - (40,000 + 50,000)
= ($10,000)
Here, the salary foregone of $40,000 and rent foregone of $50,000 represents implicit or opportunity cost.
Thus, economic loss of $10,000 makes the option of running the bike store non viable.
Final answer:
Despite an accounting profit of $80,000 for the bike store, the economic profit is negative $30,000 after considering a potential salary as an accountant ($40,000) and rental income from the store ($50,000). Thus, it's too costly to continue operating the store compared to alternative options.
Explanation:
To explain why running the bike store is too costly despite making a profit, we discuss the differences between accounting profit and economic profit.
The accounting profit for the bike store is calculated by subtracting explicit costs (the cost to obtain the bikes and other expenses) from the revenue, which is $80,000 ($200,000 revenue - $100,000 cost to obtain bikes - $20,000 other expenses).
However, the economic profit also considers implicit costs, which are opportunity costs of not pursuing the next best alternative.
In this case, the opportunity cost includes the potential salary as an accountant ($40,000) and the rental offer from the clothing retail chain ($50,000).
When these implicit costs are factored in, the total costs rise to $170,000 ($100,000 + $20,000 + $40,000 + $50,000), making the economic profit a negative $30,000 ($200,000 - $170,000 implicit and explicit costs).
Despite the accounting profit, the business owner would be better off financially by taking the accounting job and renting out the store, hence running the store is too costly when considering the economic profit.
Colonial Furniture's net profits before taxes for 2019 totaled $354,000. The company's total retained earnings were $338,000 for 2018 year-end and $389,000 for 2019 year-end. Colonial is subject to a 21 percent tax rate. What was the cash dividend declared by Colonial Furniture in 2019?
The cash dividend declared by Colonial Furniture in 2019 is calculated by first finding the difference in retained earnings between 2019 and 2018, then subtracting the after-tax net profit from this amount. The resulting number is $228,660.
To calculate the dividend declared by Colonial Furniture in 2019, we start with the retained earnings at the end of 2019 and subtract the retained earnings at the end of 2018.
This difference is then reduced by the net profit after tax for 2019.
To find the net profit after tax, we take the total net profits before tax and subtract the company's tax (which is calculated as 21% of the net profits before tax).
So, first, we find the difference in retained earnings between 2019 and 2018, which is $389,000 - $338,000 = $51,000.
Then, we calculate the net profits after tax, which is $354,000 - ($354,000 * 0.21) = $279,660.
Now, we subtract this from the increase in retained earnings: $51,000 - $279,660 = -$228,660.
Because dividends reduce retained earnings and we're looking for a reduction in retained earnings, we take the absolute value of this number to find the declared dividend, which is $228,660.
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Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,550, $1,750, $1,750, and $2,050. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
You are looking to buy a car. You can afford $360 in monthly payments for four years. In addition to the loan, you can make a $1,900 down payment. If interest rates are 9.25 percent APR, what price of car can you afford? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answer: a) total value of deposits becomes $18,332
b) price of car affordable is $17716.93364
Explanation:detailed calculation and explanation is shown in the image below
Final answer:
You can calculate the future value of deposits made in different years and determine the maximum price of a car you can afford based on monthly payments and down payment with a given interest rate.
Explanation:
Future Value of Deposits:
Year 1: $1,550(1.03)^5 = $1,818.35Year 2: $1,750(1.03)^4 = $1,932.73Year 3: $1,750(1.03)^3 = $1,868.13Year 4: $2,050(1.03)^2 = $2,121.32Car Affordability Calculation:
Monthly payment for 4 years: $360, Down payment: $1,900, Interest rate: 9.25%
Using the loan payment formula, you can afford a car priced at approximately $15,338.43.
Morrow Corporation had only one job in process during May—Job X32Z—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:
Job X32Z
Beginning balance $ 7,000
Charged to the job during May
Direct materials $ 12,600
Direct labor $ 3,500
Manufacturing overhead applied $ 6,900
Units completed 250
Units in process at the end of May 0
Units sold during May 115
In May, overhead was overapplied by $450. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.
Required:
1. Using the direct method, what is the cost of goods sold for May?
Cost of good sold: ______
2. What is the total value of the finished goods inventory at the end of May?
Total cost of ending finished good inventory: ______
3. What is the total value of the work in process inventory at the end of May?
Ending work in process inventory: _______
Answer:
1 Cost of goods sold $ 13,350
2. Value of finished goods ending inventory $ 16,200
3. Value of work in process inventory $ 0
Explanation:
Computation of cost of goods sold
Determination of per unit cost
Opening balance $ 7,000
Direct Materials $ 12,600
Direct Labour $ 3,500
Manufacturing overhead applied $ 6,900
Total cost of Job X32Z $ 30,000
Units completed 250
Cost per unit $ 120
Units sold 115 units
Cost of goods sold $ 120 * 115 $ 13,800
Add; Adjustment for over applied overhead $ ( 450)
Cost of goods sold $ 13,350
Computation of Finished Goods Inventory value
Units produced 250
Units sold 115
Units in ending inventory 135
Cost per unit $ 120 per unit
Value of ending inventory $ 120 unit * 135 units $ 16,200
Computation of Work in process inventory
There are no units in process at the end of May, so there is no work in process. so then value is $ 0
Final answer:
The cost of goods sold for Morrow Corporation in May was $29,100. The total value of the ending finished goods inventory was $34,155. Since Job X32Z was the only job and it was completed, the ending work in process inventory was $0.
Explanation:
Calculation of Cost of Goods Sold for May
Cost of goods sold (COGS) is the carrying value of goods sold during a particular period. Jobs are measured by the costs of direct materials, direct labor, and manufacturing overhead applied, and these costs must be adjusted for any overapplied or underapplied overhead to determine the accurate cost of goods sold.
In this scenario with Morrow Corporation, we calculate COGS for May by adding the beginning balance to the additional charges incurred during May and subtracting the overapplied overhead.
COGS = Beginning Balance + Direct Materials + Direct Labor + Manufacturing Overhead Applied - Overapplied Overhead
COGS = $7,000 + $12,600 + $3,500 + $6,900 - $450
COGS = $29,550 - $450
COGS = $29,100
Total Value of Finished Goods Inventory at the End of May
The total cost of the ending finished goods inventory can be calculated by taking the total costs accumulated for the job and subtracting the cost of goods sold. Only 115 out of 250 units were sold, which means the remaining units are part of the finished goods inventory.
Total job cost = COGS (for units sold) + Cost of ending inventory
Since COGS for 115 units is $29,100, we need to find the cost per unit and then multiply it by the number of unsold units to find the ending inventory value.
Cost per unit = Total COGS for May / Units sold = $29,100 / 115
Cost per unit = $253
Cost of ending inventory = Cost per unit × (Total units completed - Units sold)
Cost of ending inventory = $253 × (250 - 115)
Cost of ending inventory = $253 × 135
Cost of ending inventory = $34,155
Value of Work in Process Inventory at the End of May
Ending work in process inventory refers to the costs associated with the production that has not been completed by the end of a period. Since Job X32Z was completed in May and there was no mention of any other jobs in process, the ending work in process inventory for Morrow Corporation would be $0.
Bruno Company accumulates the following data converning a mixed cost, using miles as the activity level.
.......................Miles Driven......................Total Cost
January........... 8,000...................................$14,150
February..........7,500...................................$13,500
March..............8,500.................................. $15,000
April................. 8,200................................. $14,490
Compute the variable - and fixed-cost elemts using the high-low method.
Answer:
The answer is stated below:
Explanation:
Taking the highest and second lowest cost and miles driven as:
Cost = Highest - Lowest
Cost = $15,000 - $14,150
Cost = $850
Miles Driven = Highest - Lowest
Miles driven = 8,500 - 8,000
Miles Driven = 500
So,
= Cost / Miles driven
= $850 / 500
= $1.70
Total Cost would be 15,000 and 13,500
So, computing the variable cost as:
Variable cost of highest cost (VC) = Miles driven of $15,000 cost × $1.70
VC = 8,500× $1.70
VC = $14,450
Variable cost of lowest cost (VC) = Miles driven of $13,500 cost × $1.70
VC = 7,500× $1.70
VC = $12,750
Computing fixed cost as:
Fixed cost of highest cost = Total cost - VC
= $15,000 - $14,450
= $550
Fixed cost of lowest cost = Total cost - VC
= $13,500 - $12,750
= $750
Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue $ 140,000 Cost of Goods Sold Beginning Inventory $ 15,000 Purchases 91,000 Goods Available for Sale 106,000 Ending Inventory 22,000 Cost of Goods Sold 84,000 Gross Profit 56,000 Operating Expenses 31,000 Income from Operations 25,000 Income Tax Expense (30%) 7,500 Net Income $ 17,500 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Item Quantity Per Unit Total Replacement Cost per Unit A 1,500 $ 3 $ 4,500 $ 4 B 750 4 3,000 2 C 3,500 2 7,000 1 D 1,500 5 7,500 3 $ 22,000 Required: Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1.
Answer:
Ending Inventory Net Realisable Value or LCM is $ 14,000
Net Income Net Realisable Value or LCM is $ 11,900
Explanation:
Purchase Cost Replacement Cost per
Item Quantity Per Unit Total Unit Total Cost NRV
A 1,500 $ 3 4,500 $ 4 $ 4500 $4500
B 750 4 3,000 2 $1500 $ 1500
C 3,500 2 7,000 1 $3500 $ 3500
D 1,500 5 7,500 3 $ 4500 $ 4500
$ 14000
Ending Inventory $ 22,000
Income Statement
Sales Revenue $ 140,000
Cost of Goods Sold
Beginning Inventory $ 15,000
Purchases 91,000 Goods
Available for Sale 106,000
Ending Inventory 14,000 Applying LCM/NRV
Cost of Goods Sold 92,000
Gross Profit 48,000
Operating Expenses 31,000
Income from Operations 17,000
Income Tax Expense (30%) 5,100
Net Income $ 11,900
The new cost of inventory using the LCM/NRV valuation method is $15,500. This adjustment results in a new cost of goods sold of $90,500 and thus a gross profit of $49,500. After accounting for operating expenses, the revised net income at LCM/NRV valuation comes out to be $12,950.
Explanation:Lower Cost or Market (LCM) or Net Realizable Value (NRV) is an accounting principle that an entity applies to record its inventory at the lower of the cost or the market value. In this case, Springer Anderson Gymnastics Company hasn't applied LCM/NRV to its inventory valuation. Let's do this step-by-step:
Let's calculate the new costs under LCM/NRV for each item:Item A = quantity of 1,500 * replacement cost of $4 = $6,000Item B = quantity of 750 * replacement cost of $2 = $1,500Item C = quantity of 3,500 * replacement cost of $1 = $3,500Item D = quantity of 1,500 * replacement cost of $3 = $4,500So, the new total at LCM is $6,000 + $1,500 + $3,500 + $4,500 = $15,500Now, let's restate the income statement. The change in inventory cost will affect the Cost of Goods Sold (COGS) and thus the gross profit.
Here is the restated income statement:
Beginning Inventory: $15,000Purchases: $91,000Goods Available for Sale: $106,000Ending Inventory at LCM: $15,500New COGS = Beginning Inventory + Purchases - Ending Inventory at LCM = $15,000 + $91,000 - $15,500 = $90,500Sales Revenue: $140,000COGS: $90,500Gross Profit: $140,000 - $90,500 = $49,500Operating Expenses: $31,000Income from Operations: $49,500 - $31,000 = $18,500Income Tax Expense (30%) = $18,500 * 30% = $5,550Net Income = Income from Operations - Income Tax Expense = $18,500 - $5,550 = $12,950Learn more about LCM/NRV Valuation here:https://brainly.com/question/30029846
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Jerome was preparing to host a graduation party for his friends and relatives when he suddenly realized that he did not have a blender to mix certain beverages that he knew his guests would like. Having never purchased a blender before, Jerome felt that he needed to shop carefully and enlist in the help of friends for advice. After visiting several stores and examining numerous models, Jerome settled on a Kitchen-Aid model that cost nearly $100.
(Scenario 5-5) Jerome mentions to someone else shopping at the store that low-quality blenders are made of plastic and high-quality blenders have a stainless steel base. This comment represents Jerome’s
beliefs.
brand loyalty.
brand attitude.
habits.
Answer:
The correct answer is letter "A": beliefs.
Explanation:
Beliefs are preconceived ideas individuals have based on their thoughts and experiences. Some beliefs could be wrong moreover when the individual experience is little or insignificant about a topic. Beliefs tend to be subjective most of the time and represent a true for individuals that can be confirmed or corrected.
Under what conditions could a company artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account? a. When the current ratio is equal to one before this transaction. b. When the current ratio is less than one before this transaction. c. When the current ratio is greater than one before this transaction. d. The company's current ratio would not increase after this transaction.
Answer:
d. The company's current ratio would not increase after this transaction.
Explanation:
Taking out a short-term loan includes taking out cash via short-term loan. Present liabilities are known as short term loan.
Revenues from Short term loan positions in cash account meaning that current assets will grow as cash is listed as current assets.
This implies the existing liabilities are now raised in the same proportion as the current assets.
Current Ratio formula is as follows, Current Ratio = Current Assets / Current Liabilities.
If the current assets and current liabilities are both increased in the same proportion then this ratio has no impact.
Which means the ratio won't change after this transaction.
Answer:
The answer for the condition under which a company could artificially increase their current ratio at the end of their accounting reporting period by taking out a short term loan and placing the proceeds in the cash account is option A) When the current ratio is equal to one before this transaction.
Explanation:
When a company seeks to increase their current ratio at the end of their account reporting, It shows that the company is less liquid and the business is closer to having no working capital.
In terms of current ratio for the condition of less liquidity, the current ratio is either approaching one and when it finally gets to 1:1, a company will be forced to take a short term loan as shown in the question to aid with operating expenses while taking the necessary steps to reduce liability and increase assets.
When there are many producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a A. single planner who makes all production decisions and allocates all goods and services to consumers. B. freely operating economy with some very large firms that make most production and pricing decisions. C. freely operating economy in which all markets are perfectly competitive. D. centralized system in which the government owns all productive resources and allocates all goods and services to consumers.
Answer:
C. freely operating economy in which all markets are perfectly competitive.
Explanation:
When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.
In such a free economy, demand for goods and services are not controlled. The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not. It is better to make such market competitive without interfering into how resources are managed and dispensed.In a small, closed economy, national income (GDP) is $ 500.00 million for the current month. Individuals have spent $ 300.00 million on the consumption of goods and services. They have paid a total of $ 200.00 million in taxes, and the government has spent $ 150.00 million on goods and services this month. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy?
Answer:
The total investment in the economy is $50 million
Explanation:
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)
Using this formula we can determine the amount of investment.
Investment = 500 (GDP) - 300 (private consumption) - 150 (government spending) = $50.
When no-par stock is issued, the entire proceeds are credited to Capital Stock and this amount is viewed as legal capital not subject to withdrawal. True or False True False
Answer:
True
Explanation:
If there is no-par stock is issued, the entire proceeds are credited to Capital Stock. Also, the amount we get in for this capital amount can not be legally withdrawn for any purposes. It also reduces any responsibility faced from payable by the issuance of no face value. The journal entry will be as follows:
Cash Debit
Common stock Credit
The statement is true. When no-par stock is issued, the entirety of proceeds is credited to Capital Stock, which then becomes viewed as legal capital not subject to withdrawal. Always verify with local laws.
Explanation:The statement is true. When no-par stock is issued, the entire proceeds do indeed become credited to Capital Stock. This consequently becomes the legal capital, which is not subject to withdrawal. In essence, legal capital serves as a company's equity cushion and is calculated as the total number of shares issued multiplied by the par value per share. However, different rules may exist depending on jurisdiction, and this should always be checked with local laws and regulations.
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