The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

Year 0 Year 1 Year 2 Year 3 Year 4
Investment $ 43,000
Sales revenue $ 22,000 $ 22,500 $ 23,000 $ 20,000
Operating costs 4,600 4,700 4,800 4,000
Depreciation 10,750 10,750 10,750 10,750
Net working capital spending 490 540 590 490 ?
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

Year 1 Year 2 Year 3 Year 4
Net income $ $ $ $
b.
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.)

Year 0 Year 1 Year 2 Year 3 Year 4
Cash flow $ $ $ $ $
c.
Suppose the appropriate discount rate is 11 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

NPV $

Answer:

Austin's Tavern should record $5,500 as rent expense at May 31.

Explanation:

When an amount is prepaid, it is recorded in the books by debiting prepaid expense (rent in this case) and crediting cash account. When the expense is incurred, the required entries are debit rent expense and credit prepaid rent.

If $13,200 was prepaid for the full year as at 1 January, as at May 31, expense incurred

= 5/12 × $13,200

= $5,500

Hence Austin's Tavern should record $5,500 as rent expense at May 31.

Answer:

April 1

Dr.  Account receivable  $1,600

Cr.  Sales                          $1,600

April 10

Dr.  Cash                          $1,552

Dr.  Sales Discount          $48

Cr.  Account receivable  $1,600

Explanation:

Term 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.

According to given data

Sales = $1,600

As the payment is made within discount period, so discount will be availed

Discount  = $1,600 x 3% = $48

Payment = $1,600 - $48 = $1,552

Discount of $48 is an expense.

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Assume that the Assembly Department allocates overhead using a plantwide overhead rate based on machine hours.

The first thing that we need is the predetermined overhead rate. We weren't provided with this information, but I will give the formula and a small example to guide an answer:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

For example:

Estimated overhead= $200,000

Estimated machine hours= 35,000

Estimated manufacturing overhead rate= 200,000/35,000= $5.71 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Because it is a plantwide overhead rate, we need to sum the total machine hours required:

Machine hours= 2.5 + 0.5= 3 machine hours

Allocated MOH= 5.71*3= $17.13 per unit

Final answer:

To calculate the total overhead assigned to the product, the overhead rates for the Assembly and Finishing Departments are determined based on their respective allocation bases. These rates are then applied to the product's usage of machine hours and labor hours, resulting in a total overhead of $13.985.

Explanation:

To calculate the total overhead assigned to the product, we need to determine the overhead rates for both the Assembly and Finishing Departments and then apply these rates to the product's resource usage.

The Assembly Department allocates overhead based on machine hours (MH), while the Finishing Department allocates based on direct labor hours (DLH).

First, we calculate the overhead rates:

Next, we apply these rates to the product's use of department resources:

The total overhead assigned to the product is the sum of the overheads from both departments.

Therefore, Total Overhead = Assembly Overhead + Finishing Overhead = $2.75 + $11.235 = $13.985.

Final answer:

The return on assets can be calculated by dividing the net income by the average total assets and expressing it as a percentage.

Explanation:

The return on assets can be calculated by dividing the net income by the average total assets and expressing it as a percentage.

Return on Assets (ROA) = Net Income / Average Total Assets

For General Motors (GM), to calculate the return on assets, you would need the net income and average total assets data from their financial statements.

Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

Tax rate = 35 %

P0 = $ 28.86

Growth g = 4.9 %

D1 = $ 0.94

First find the cost of common stock by

rS = D1/P0 + g

=0.94/$28.86 + 0.49

=0.523

= 52.3%

Finally, calculate the weighted average cost of capital WACC,

using rs= 0.523,

Tax rate =43% =0.43

Equity E 100% - 43% = 57% =0.57 and

kd=7.0 % = 0.07

so WACC = (D/A)(1 -­ Tax rate)kd+(E/A)rs

= 0.43(1 ­- 0.43)(0.07) + 0.57(0.523)

0.0172 + 0.298

= 0.315

= 31.5%

Answer:  The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated  IMA statement of ethical professional practice standards of Competence.

Explanation:

The IMA statement of ethical professional practice standards of Competence states that each member has the responsibility to provide information that supports the decision and recommend something accurate, clear and timely.

The managerial accountant at XYZ company provided information that was not very accurate. Based on that information, his friend immediately sells his stock in XYZ company. So, in this case, the manager has not helped his friend in taking a viable decision.

Answer:True

Explanation:

A country over all level of interest rate should have impact on the financial account of balance of payment because the BOP is the sources and the use of foreign exchange.

Final answer:

The initial purchasing power of Susan's $1,000 deposit is the ability to purchase 100 comic books, since each comic book costs $10.00.

Explanation:

The question you've asked is about how to calculate the initial purchasing power of Susan's $1,000 deposit in a bank with a nominal interest rate of 5%. Since Susan only buys comic books priced at $10.00 each, the purchasing power of her deposit is simply the number of comic books she can buy with $1,000.

If one comic book costs $10.00, then Susan can buy $1,000 / $10.00 = 100 comic books. This calculation does not require considering the interest rate because it asks for the initial purchasing power, meaning how much Susan can buy at the time of her deposit before any interest accrues.

Answer: Debit Unearned revenue (liability) $2,500, Credit Revenue $2,500.

Balance in unearned revenue as at 31 January 2018 is $30,000 - $2,500 = $27,500.

Explanation: In the answer above, it was assumed that the sale of the annual subscriptions took place at the end of December 2017. If it had taken place at the beginning of December 2017, the balance in the unearned revenue would reduce by 2 months.

The subscriptions were recorded as a liability because the total amount was not earned when the sale transaction took place. Unwinding of the unearned revenue to revenue takes place at the time the subscribers get their magazine.

Therefore, monthly unwinding of unearned revenue to revenue would be $30,000 / 12 = $2,500. The adjusting entries Teenage Fanclub Printings would have raised when the initial sale took place would be: Debit Account receivable / Cash $30,000, Credit Unearned revenue $30,000. Monthly unwinding of unearned revenue will therefore be Debit Unearned revenue $2,500 Credit Revenue $2,500 till the revenue is fully recognized and the unearned revenue becomes nil.

The adjusting entry should be

Unearned revenue (liability) $2,500

         Revenue $2,500.

The Balance in unearned revenue should be $27,500

The adjusting entry is

Unearned revenue (liability) $2,500 ($30,000 / 12 months)

         Revenue $2,500

(being the adjusting entry is recorded)

here the liability is debited as it decreased while the revenue is credited as it increased.

Now the balance in the unearned revenue should be

= $30,000 - $2,500

= $27,500

Learn more about revenue here: https://brainly.com/question/24599521

Answer:

Continuity

Explanation:

One of the Gestalt principles, Continuity, refers to drawing connections between things that occur in sequence.

Gestalt principle are group principle of psychology that define about how human brain percieve objects when it see group of element or sequence or certain patterns.

Gestalt has certain principle of visual perception to undertand how human brain create structure of an object:

In the given case, It talk about continuity principles that refer human brain percieve element to be more related to each other if it is arranged in line or curve than which are not arranged.

Answer:

Fiduciary.

Explanation:

A fiduciary is known as a person or organization that acts on behalf of another person or persons to manage assets. Essentially, a fiduciary owes to that other entity the duties of good faith and trust. The highest legal duty of one party to another, being a fiduciary requires being bound ethically to act in the other's best interests.

A fiduciary might also be responsible for general well-being, but often the task involves finances, managing the assets of another person, or of a group of people, for example. Money managers, financial advisors, bankers, accountants, executors, board members, and corporate officers all have fiduciary responsibility.

Answer:

$6.29

Explanation:

Dividend is $1.31 per share

Decreased by 4%

Required return is 16%

Therefore:

Price = [$1.31 × (1 - .04)]/[.16 - (-.04)] = $6.29

Answer:

I should pay $10.92 per share for the stock today  as shown below

Explanation:

The maximum price a rational investor could pay for a share is given by the formula:

Po=Div/rate of return-growth rate

Po is the price to paid

Rate of return here is 16%,which is similar to return on equity

The growth rate of the share of the dividend is 4%

Po=$1.31/(0.16-0.04)

Po =$10.92

The price has factored in both the dividend yield and gains yield of the share.

dividend yield is the return earned by share through dividends

gains yield is another return earned by share through appreciation in its price in the market place-stock exchange

Total return on return on share is the sum of both.

Answer:

The answer is A.

Explanation:

The price elasticity of demand is a little higher than 1.

This means it is price elastic. That is, the demand is sensitive to price. Why? -

1. The good has a lot of substitutes, meaning the bargaining power of buyers is high. Any increase in the price of the good will lead to customers switching to the substitutes.

2. Also, the good is also a luxury good and not a necessity. Luxury goods, unlike necessity goods are not essential. So an increase in price might see customers moving away.

If a demand is inelastic to price, price elasticity of demand will be less than one.

Answer:

1. Michael Hamwey Realtor Inc.

  Balance Sheet as at August 31 2017

Land $159,000

Furniture $10,500

RealtyGroup Franchise $18,000

Cash $65,000

Office Supplies $4,000

Accounts Payable $3,000

Liability for Land acquired $115,000

Net Assets = $138,500

Common Stock $65,000

2. no it wont be able to fulfill its debt obligation within 1 year without disposing of Assets or converting the loan to a long term liability

3. The Following items should not be included in the Balance sheet of the Realtor Inc because they are personal to Hamwey

a. Hamwey Bank balance $14,000

b. Hamwey bank balance in the Business Account $63,000

c. Hamwey's debt at local department store $9,300

d. Hamwey's Mortgage on his personal residence $196,000

Explanation:

1. Michael Hamwey Realtor Inc.

Balance Sheet as at August 31 2017

Land $159,000

Furniture $10,500

RealtyGroup Franchise $18,000

Cash $65,000

Office Supplies $4,000

Accounts Payable $3,000

Liability for Land acquired $115,000

Net Assets = $138,500

Common Stock $65,000

2. The Realtor Business looks unhealthy considering the Quick Ratio or working Capital ratio, and will be unable to fulfill its debt obligation without disposing of Assets or converting the Loan to a long term Liability.

Working Capital Ratio = (Bank + supplies in hand) divided by (the Accounts payable + Note Payable)

=$69,000/$118,000 = 0.58times

*assumption: note payable is assumed to fall due within 1 year

The Available resource in the Business isn't sufficient to meet its immediate obligations

3. The Following items should not be included in the Balance sheet of the Realtor Inc because they are personal to Hamwey

a. Hamwey Bank balance $14,000

b. Hamwey bank balance in the Business Account $63,000

c. Hamwey's debt at local department store $9,300

d. Hamwey's Mortgage on his personal residence $196,000

Final answer:

The balance sheet for Michael Hamwey Realtor, Inc. includes assets totaling $254,500 and liabilities of $118,000, with stockholder's equity at $65,000, indicating a positive financial position. Personal items such as Hamwey's personal bank account, charge account, and mortgage are excluded from the business balance sheet.

Explanation:

To prepare the balance sheet for Michael Hamwey Realtor, Inc. as of August 31, 2017, we first identify the assets, liabilities, and equity from the provided information. Assets include cash at the business bank account, business furniture, office supplies, a franchise, and land, while liabilities include accounts payable and a note payable. The equity is contributed through the issuance of common stock.

To assess the ability of the business to pay its debts, we look at the ratio of assets to liabilities. Despite having substantial liabilities, the business's assets exceed its liabilities, indicating a positive net position which suggests the business can cover its debts in the short term.

Personal items that should not be reported on the balance sheet include Hamwey's personal bank account balance, personal charge account, and personal mortgage. These are separate from the business and do not impact its financial statements.

Solution:

Let the size of old plant be x

New plant is 33% bigger than the old plant.

So,

Size of the new plant [tex]=x+(0.33 * x)[/tex]

= x + 0.33x = 1.33x

Cost of the old plant = $8 million

Capacity exponent = 0.90

Calculate the cost of new plant -

Cost of new plant = Cost of old plant * (Size of new plant/Size of old plant)capacity exponent

Cost of new plant =[tex]=\$ 8 \text { million } *(1.33 \mathrm{x} / \mathrm{x})^{0.90}[/tex]

Cost of new plant =[tex]\text { S8 million } *(1.33)^{0.90}[/tex] = $10.34 million

Thus,

The cost of building new plant is $10.34 million.

Final answer:

To find the cost for a fabrication plant 33% larger than a plant costing $8 million, the new plant capacity is calculated as $10.64 million. Due to the capacity exponent of 0.90, the cost increase is less than the capacity increase, resulting in a new cost of $10.248 million.

Explanation:

To find the cost of building a new fabrication plant that is 33% bigger than a similar plant that cost $8 million to build, we start by recognizing that this is a math problem involving economies of scale and the specific capacity exponent, which is 0.90 in this case. The capacity exponent is often used to determine how costs scale with production capacity.

First, we calculate the new size of the plant by increasing the similar plant size by 33%. Since the original plant cost $8 million, we find the increased capacity:
New Capacity = Original Capacity x (1 + Percentage Increase)
New Capacity = $8 million x (1 + 0.33)
New Capacity = $8 million x 1.33
New Capacity = $10.64 million  

However, due to the capacity exponent of 0.90, the cost increase will be less than proportional to the increase in capacity:
New Cost = Original Cost x (New Capacity / Original Capacity) ^ Capacity Exponent
New Cost = $8 million x (1.33) ^ 0.90
New Cost = $8 million x 1.281
New Cost = $10.248 million

Answer:

$15,000 under applied

Actual overhead of $220,000 minus applied overhead of $205,000 (200,000/40,000 direct labor hours • 41,000 actual hours worked) equals 15,000 under applied

Explanation:

Answer:

Part 1-a: The breakeven of the complete company is $375652.17

Part 1-b: The breakeven for the Chicago Office is $66857.14 while that of the Minneapolis office is $135000.

Part 1-c: The value of breakeven for the company is more than that of the Chicago and Minneapolis office.

Explanation:

Part 1-a

For the whole company

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $207,000

Sales is $450,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{207000 \times 100}{450000}\\Contribution \,Ratio=46\%[/tex]

Now Fixed cost of the company is given as sum of the traceable fixed expenses and non-traceable expenses which are given as

[tex]Fixed \,Cost=Traceable\, Fixed\, Expenses+Non-traceable\, Fixed\, Expenses[/tex]

Here

Traceable fixed expenses are $100,800

Non traceable fixed expenses are 72,000

[tex]Fixed \,Cost=Traceable\, Fixed\, Expenses+Non-traceable\, Fixed\, Expenses\\Fixed \,Cost=100800+72000\\Fixed \,Cost=172800[/tex]

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{172800}{46\%}\\Breakeven=\dfrac{172800}{0.46}\\Breakeven=\$375652.17[/tex]

So the breakeven of the complete company is $375652.17

Part 1-b

For the Chicago office

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $63,000

Sales is $90,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{63000 \times 100}{90000}\\Contribution \,Ratio=70\%[/tex]

Traceable fixed cost for Chicago are $46,800

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{46800}{70\%}\\Breakeven=\dfrac{46800}{0.70}\\Breakeven=\$66857.14[/tex]

So the breakeven of the Chicago office is $66857.14

For the Minneapolis office

[tex]Contribution \,Ratio=\dfrac{Contribution\, Margin \times 100}{Sales}[/tex]

Here the Contribution Margin is $144,000

Sales is $360,000

So the contribution ratio is given as

[tex]Contribution \,Ratio=\dfrac{144000 \times 100}{360000}\\Contribution \,Ratio=40\%[/tex]

Traceable fixed cost for Chicago are $54,000

Now the Breakeven is given as

[tex]Breakeven=\dfrac{Fixed\,Cost}{Contribution\,Ratio}\\Breakeven=\dfrac{54000}{40\%}\\Breakeven=\dfrac{54000}{0.40}\\Breakeven=\$135000[/tex]

So the breakeven of the Minneapolis office is $135000

Part 1-c

The sum of the breakeven for the Chicago and Minneapolis office is $66857.14+$135000=$201857.14

The value of breakeven for the company is $375652.17

As the value of breakeven for the company is more than that of the Chicago and Minneapolis office.

Final answer:

The companywide break-even point is $375,750, calculated by dividing total fixed costs by the contribution margin ratio. The Chicago office's break-even point is $66,861, and the Minneapolis office's break-even point is $135,000. The companywide break-even point is not equal to the sum of both offices' break-even points.

Explanation:

To calculate the companywide break-even point in dollar sales, we use the formula Break-even Point (BEP) = Total Fixed Costs / (Total Sales - Variable Costs). From the given information, total fixed costs are the sum of traceable fixed expenses and common fixed expenses not traceable to offices, which equals $100,800 + $72,000 = $172,800.

The total sales and variable costs are given as $450,000 and $243,000 respectively. Therefore:

To find the dollar amount of the break-even point, we multiply the BEP ratio by total sales:

The break-even point for each office is calculated separately using the same formula, including only the fixed costs traceable to that office.

For the Chicago office:

For the Minneapolis office:

The companywide break-even point is not equal to the sum of the Chicago and Minneapolis break-even points. When adding up the break-even points of both offices, we get $66,861 (Chicago) + $135,000 (Minneapolis) = $201,861, which is less than the companywide break-even point of $375,750.

Revenue and gross profit or loss are calculated using the percentage of completion method based on costs incurred and estimated total costs for each of Arrow Construction Company's fiscal years (2021, 2022, 2023). Journal entries would reflect the progression of the construction costs, billings, and revenue recognition.

Calculation of Revenue and Gross Profit/Loss

Using the percentage of completion method, the recognized revenue and gross profit or loss for each year would be calculated based on the costs incurred and the total estimated costs. Here's how to calculate it for each year:

2021:

Total costs incurred to date: $2,170,000

Total estimated costs: $2,170,000 + $4,170,000 = $6,340,000

Percentage of completion: $2,170,000 / $6,340,000 = 34.22%

Revenue recognized: 34.22% of $8,510,000 = $2,910,467

Gross profit: Revenue recognized - Costs incurred = $2,910,467 - $2,170,000 = $740,467

2022:

Total costs incurred to date: $2,170,000 + $2,670,000 = $4,840,000

Total estimated costs: $4,840,000 + $3,855,000 = $8,695,000

Percentage of completion: $4,840,000 / $8,695,000 = 55.68%

Revenue recognized: 55.68% of $8,510,000 = $4,736,028

Gross profit: Revenue recognized - Costs incurred to date = $4,736,028 - $4,840,000 = ($103,972) (loss)

2023:

Total costs incurred: $8,810,000

Total contract price: $8,510,000

Revenue recognized: $8,510,000 (full contract price as project is completed)

Gross profit: Revenue recognized - Costs incurred to date = $8,510,000 - $8,810,000 = ($300,000) (loss)

Journals entries for transactions and partial balance sheet presentations would follow the standard accounting format showing construction in progress, billings on construction contract, and construction costs, among other accounts.

1) Amount of Revenue and Gross profit or loss (2021,2022, and 2023) is $744,624, -$845,305 (Gross Loss), -$199,319 (Gross Loss)

2a) Journal entries for 2021 is (Record construction costs $2,170,000 , Record Billings $2,670,000 , Record cash collected $2,420,000)

2b) Journal entries for 2022 is (Record construction costs $2,670,000 , Record Billings $2,920,000, Record cash collected $2,645,000)

3a) Partial balance sheet for December 31, 2021 is $244,624

3b) Partial balance sheet for December 31, 2022 is $850,681

Percentage of Completion Method for Construction Contract:

Let's calculate the revenue and gross profit to be recognized in each year using the percentage of completion method:

1. Revenue and Gross Profit Calculation:

2021:

2022:

2023:

2. Journal Entries:

2021 Entries:

2022 Entries:

3. Balance Sheet Presentation:

As of December 31, 2021:

As of December 31, 2022:

Answer:

a. AT ACQUISITION DATE TOTAL   Parent      NCI

Capital stock    300   270           30

retained earnings   1650 1485 1650

goodwill       52050  46845 5205

investment    54000 51100 29000

b.Goodwill is allocated at 9:1 ratio

90% ; 10% given

Explanation:

The difference in these amounts is big, suspicions of error in typing amounts in the question. Even after the answer is in thousands

Original goodwill is calculated using the fair value of the consideration transferred plus the fair value of the noncontrolling interest, less the adjusted net assets at acquisition. It amounted to $50,000,000 for the Plaza Hotels acquisition of Stardust Casinos, with allocations of $45,000,000 to the controlling interest and $5,000,000 to the noncontrolling interest, following a ratio of 90:10.

Calculation of Original Goodwill and Its Allocation

The calculation of original goodwill in the context of a business combination, such as an acquisition, takes into account the fair value of the consideration transferred, the fair value of the noncontrolling interest, and the fair value adjustments for identifiable net assets of the acquire.

When Plaza Hotels acquired a 90 percent interest in Stardust Casinos, the goodwill was calculated based on the acquisition price, the fair value of the noncontrolling interest, and fair value adjustments.

The original purchase price for the 90% interest was $51,100,000, and the fair value of the noncontrolling interest for the remaining 10% was $2,900,000, leading to a total fair value of the business of $54,000,000 ($51,100,000 + $2,900,000).

The book value of Stardust's equity was $2,000,000, but adjustments were needed for items not reflected at fair value.

Plant and equipment were overvalued by $6,000,000 and needed to be reduced, while the previously unrecorded intangible assets valued at $8,000,000 were added.

Adjusted net assets of Stardust at acquisition were:
Book value of equity: $2,000,000

Less overvaluation of plant and equipment: $6,000,000

Addition for intangibles not previously recorded: $8,000,000

Adjusted net assets = $4,000,000 ($2,000,000 - $6,000,000 + $8,000,000). Original goodwill can then be calculated as follows:

Total fair value of Stardust ($54,000,000) - Adjusted net assets ($4,000,000) = $50,000,000.

This total goodwill is then allocated between the controlling and noncontrolling interests based on their ownership percentages:

Goodwill attributed to controlling interest (Plaza Hotels): 90% x $50,000,000 = $45,000,000

Goodwill attributed to noncontrolling interest: 10% x $50,000,000 = $5,000,000

The ratio of goodwill allocation between controlling and noncontrolling interests is 90:10.

Answer:

The correct answer is letter "A": The trend between the present and future values of an investment.

Explanation:

Compounding is the process in which earnings of an investment are reinvested to earn more profits in a determined period of time. In other words, present values are used to convert them into future values expecting they will be higher. Compounding can also be defined as interest on interest.

To compute compounding figures it is necessary the interest rate that could be earned out of an investment and its duration and the present value of the investment in dollars quantity.

Thus, the trend between the present and future value of the investment remains useless for compounding.

Answer:

Peter's net property, plant and equipment is $700,000.

Explanation:

Net Property, plant, and equipment is the Carrying value of PPE. It is also known as the Book value of PPE. This is the value at which PPE is stated on the face of Statement of Financial Position.

The formula to calculate it as follows:

                    Cost - Accumulated Depreciation = Carrying Value

Simply put values:

1,500,000 - (250,000 + 550,000) = $700,000.

Thanks!

Answer:

The correct answer is letter "C": Each batch of production, known as a job or lot.

Explanation:

Job order cost systems are used to accumulate the cost per unit of items that are different enough, each one having significant costs. Under this costing system each item produced is given its direct material costs, labor costs, and overhead. Clothing, food, and aircraft manufacturing companies use the job order cost system.

Unitary costs are accumulated per batch of productions under this type of costing system.

Final answer:

Costs in a job order cost system are accumulated for each job or lot, with total costs determined by the sum of all inputs multiplied by their factor payments. This system is suitable for tracking production costs of distinctive batches. Understanding economies of scale and the difference between fixed and variable costs is crucial in this context.

Explanation:

Under a job order cost system, costs are accumulated for each batch of production, known as a job or lot. This method is used to track the costs associated with producing a specific batch of products, rather than unit-by-unit or for entire departments. Each job may consist of a single item or a small batch of items, designed to be distinct from other jobs by its particular set of production requirements.

For every input, such as labor or materials, there's an associated factor payment, like wages or material costs. The total cost for producing a job is the sum of the amounts of each input required to produce that quantity of output multiplied by the respective factor payments.

In this context, understanding economies of scale is also necessary. As the quantity of output increases, the cost per unit typically goes down, which means larger production scales can be more cost-efficient.

When assessing costs, it's important to recognize the distinction between fixed costs, which are independent of output levels, and variable costs, which vary based on the production quantity.

Answer:

$6568.36

Explanation:

Money he wishes to have in future is $50 000 as he wishes to withdraw $5000 at the beginning on each year for the first ten years

$5000*10= $50000

Present value = FV/ (1+r)^n

                         50000/(1+0.07)^30

                        =$6568.36

Therefore he must invest 6568.36

Answer:

Department of transportation (DOT)

Explanation:

HazMat(hazardous materials) are hazardous substances in quantities that may pose a high risk to health, property, and the environment. HAZMATs include substances such as as toxic chemicals, fuels, nuclear waste products, and biological, chemical, and radiological agents.

HazMat is a substance that may pose serious threat to property, life or the environment if such substances are not well stored, shipped or handled.

Answer:

Date                         Description                                Debit           Credit

31st Dec              Sales Revenue                               $4,500

                          Refunds Payable                                               $4,500

31st Dec           Inventory Estimated Returns             $2,900

                        Cost of Goods Sold                                             $2,900

Explanation:

First, the obvious facts about the question

Estate of returned merchandise = 5%

Sales revenue for the year = $90,000

Cost of goods sold = $59,000

Step 1: Sales Revenue is already $90,000 Credit entry (it is an income) and as such any return will have a debit entry to reduce the revenue as follows

Return = 0.05 x $90,000 = $4,500

This same refunds will also go into the refunds payable account as a current liability  (credit entry)

Step 2: The returns will also affect the inventory and cost of sales as follows

0.05 x $58,000 =  $2,900

This will increase the inventory 9debit side and reduce cost of sales credit side.

Journal Entries

Date                         Description                                Debit           Credit

31st Dec              Sales Revenue                               $4,500

                          Refunds Payable                                               $4,500

31st Dec           Inventory Estimated Returns             $2,900

                        Cost of Goods Sold                                             $2,900

The entry in the Journal to account for estimated returns from sales of merchandise will require adjustments of Sales Returns and Allowances and the Cost of Goods Sold. This is done by estimating 5% of the sales and 5% of the COGS which result to $4,500 and $2,550 respectively.

At the end of the year, John Photography Supplies estimated that 5% of the $90,000 worth of sold merchandise will be returned. This implies that the return is expected to be $4,500 (5% of $90,000). The Cost of Goods Sold (COGS) is $58,000 for the year. When accounting for the estimated returns, we would have two adjusting entries:

This adjust the sales revenue and the COGS downwards, thereby estimating the impact of the goods that are expected to be returned.

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Answer:

No.    Account Titles & Explanation             Debit          Credit

1.

       Cash                                                  $38,000

       Barry Capital Account                                         $38,000

2.

       No Entry Requires as Employee are only Hired there id no financial transaction involved in hiring the employees only.

3.

       Prepaid Rent                                     $10,800

       Cash                                                                     $10,800

4.

       Wages Expense                                $500

       Cash                                                                     $500

5.

       Cash                                                  $2,900

       Revenue                                                               $2,900

Explanation:

1. Cash paid is the capital contribution in the business so cash account will be debited and capital account will be credit as per their nature.

2. Hired an employee does not need any transaction as there is no financial  involvement in just hiring an employee.

3. Prepaid expense is actually an asset for us as we paid expenses in advance which is not incurred yet. It will be recognized as expense with passage of time.

4. Payment to worker is an expenses against a credit to cash as wage is paid in cash.

5. Revenue earned should be recorded and also received so cash will be debited for the receipt from sales and revenue shold be debited due to its nature of account.

Answer:

$4,000

Explanation: the Child and Dependent Care Credit will be paid based on the $4,000 expenses incurred for Aaron.    

Answer:

The correct answer is 7.69.

Explanation:

According to the scenario, the given data are as follows:

Net credit sales = $2,000,000

Cost of goods sold = $1,400,000

Account receivable = $250,000

During year Account receivable = $250,000 + $20,000 = $270,000

So, we can calculate the accounts receivable turnover rate by using following formula:

Turnover rate = Net credit sales ÷ Average account receivable

Where Average account receivable = ($250,000 + $270,000) ÷ 2

= $260,000

So, by putting the value we get,

Turnover rate = $2,000,000 ÷ $260,000

= 7.69

Hence, the accounts receivable turnover rate is 7.69.

Answer:

The value of the treasury note is $ 876,205.93  

Explanation:

I simply discounted all relevant cash flows using the discount factor formula 1/(1+r)^N,where r is the yield to maturity divided by 2 as the interest is paid twice a year and N is the number of years of the bond 3, multiplied by number of interest payments in a  year,2.

Find attached for details.

Answer:

Existence of supplier clusters

Explanation:

Clusters increase productivity. This is because clusters include companies in the same industry or technology areas that share suppliers and distribution network. Meaning that companies withing their sphere can compete.

Several clusters serve as a driving force in regional economies. This clustering concept was popularized by Micheal Porter. A strong cluster can include the suppliers of raw materials and distributors and also primary producers, specialized services in finance, marketing, education, trade associations etc. Clusters can result in a lot of benefits such as increased productivity, rapid innovation and new business formation.