Explain how each of the following events changes the demand for or supply of jeans. A. Upper A new technology becomes available that reduces the time it takes to manufacture a pair of jeans. B. The price of the cloth (denim )used to make jeans rises. C. Jeans go out of fashion. D. The price of a pair of jeans falls. E. The wage rate paid to garment workers falls. F. Many jeans producers go out of business. G. The price of a denim skirt halves. H. People’s incomes increase.
Answer:
A. Where a new technology that reduces the time it takes to manufacture a pair of jeans is available, it will leads to a change in supply. For example if a new machine is invented which decreases output per unit of time, there will decrease in the supply of a pair of jeans.
B. Where the price of the cloth (denim) used to make jeans rises, it will affect the change in the supply of jeans because an increase in the price of the raw materials used (denim) in making jeans, it will lead to a reduction in supply.
C. Where Jeans go out of fashion, it will cause a change in demand or supply because taste changes over time. For example, if jeans go out of fashion there would be a decrease in demand and supply for it.
D. Where the price of a pair of jeans falls, it will not affect the change in demand or supply of the jeans because a change in the price of a commodity is not a factor that causes a change in demand or supply.
E. Where the wage rate paid to garment workers falls, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.
F. Where many jeans producers go out of business, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.
H. Where people's incomes increase, it will affect the change in demand that leads to increase in demand for a pair of jeans
Explanation:
Causes of changes in demand and supply
Demand refers to the quantity of a commodity which consumers are willing and able to purchase at a particular price and at a particular period of time.
The Law of demand sates that 1) the higher the price of a commodity, the lower the quantity demanded, and 2) the lower the price of a commodity, the higher the quantity demanded.
The Change in demand (shift in the demand curve): There is a change in demand if the demand curve shifts to an entirely new position. A change in demand is determined by the factors affecting demand, other than price in a commodity. Factors affecting change in demand include changes in taste, fashion, population size, and income.
The Supply of a commodity is the quantity of that commodity which sellers are willing and able to offer for sale at a particular price, at a particular period of time.
The Law of supply states that the higher the price of a commodity, the higher the quantity supplied while the lower the price of a commodity, the lower the quantity supplied.
The Change in supply (shift in the supply curve): There is a change in supply if the supply curve shifts to an entirely new position. A change in supply is determined by the factors affecting supply, other than price in a commodity. Factors affecting supply include Technological development, weather and climate, government policies/effects of subsidies and taxation, a new source of raw materials. A change in supply could be a decrease or increase in supply of a commodity.
The supply and demand for jeans can be influenced by multiple factors. Factors such as technological advancements, cost of materials, fashion trends, pricing, wages, producer availability, alternative product pricing and consumer income can increase or decrease both demand and supply.
Explanation:To the question of how certain events change the demand for and supply of jeans:
A new technology that reduces manufacturing time would likely increase the supply of jeans because more could be produced in less time. When the cost of denim rises, the supply of jeans may decrease because it becomes more expensive for businesses to make each pair. If jeans go out of fashion, then demand for jeans would decrease as fewer people want to buy them. If the price of a pair of jeans drops, demand may increase because people can afford to buy more, however, it might also result in decreased supply as manufacturers may not find it profitable to continue production. If the wage rate paid to garment workers falls, the cost of producing jeans also falls, leading to an increase in supply. If many jeans producers go out of business, supply will decrease due to fewer manufacturers.The halving of denim skirt prices could affect the demand of jeans if consumers perceive them as alternatives. If skirt prices drop, demand for jeans might decrease as people switch to cheaper skirts. Finally, if people’s incomes increase, the demand for jeans might increase because people have more spending power.Learn more about Supply and Demand here:
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Issued common stock at par for $23,700.Recorded depreciation on buildings for $16,900.Paid salaries of $6,400.Issued 1,300 shares of $1 par value common stock for equipment worth $8,000.Sold equipment (cost $11,800, accumulated depreciation $8,260) for $1,416. For each transaction above, prepare the journal entry.
Explanation:
The journal entries are shown below:
1. Cash A/c Dr 23,700
To Common stock A/c 23,700
(Being the common stock is issued for cash)
2. Depreciation Expense A/c Dr $16,900
To Accumulated Depreciation - Buildings A/c $16,900
(Being depreciation expense is recorded)
3. Salaries expense A/c Dr $6,400
To Cash A/c $6,400
(Being the salaries expense is paid for cash)
4. Equipment A/c Dr $8,000
To Common stock A/c $1,300
To Additional paid-in capital in excess of par value A/c $6,700
(Being the equipment is purchased)
5. Cash A/c Dr $1,416
Accumulated depreciation - Equipment A/c Dr $8,260
Loss on sale of equipment A/c Dr $2,124
To Equipment A/c $11,800
(Being the equipment is sold)
J Bryant, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31.Sales revenue $779,000 Cost of goods sold 334,500 Gross margin 444,500 Less operating expenses Selling expense$24,720 Administrative expense 51,100 75,820 Net operating income $368,680 Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.Contribution Format Income Statement Total Per Unit Sales 779,000.00250.00Less: Variable Expenses Cost of Goods Sold334,500.00 107.35Selling Expense20,254.00 6.50Administrative Expenses38,950.00 12.50Total Variable Expenses 393,704.00126.35Contribution Margin 385,296.00123.65Less: Fixed Expenses Selling Expense4,466.00 Administrative Expenses12,150.00 Total Fixed Expenses 16,616.00 Operating Income 368,680.00 QUESTION:1. Operating Expenses = __________x + $_______________2. If 3100 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 45,000.)
Answer:
1: $75,820
2: $442,215.
Explanation:
1: The operating expenses can be described as normal or routine expense of a business. The operating expense for the J Bryant, Ltd For the month ended January 31 will be $75,820. This figure includes Selling expense and Administrative Expense which is $24,720 and $ 51,100.
2: The contribution margin is determined by subtracting Total Variable cost from Total Revenue. When the company sells 3,100 units next month then Total Sales is $775,000 (3,100 units * $250 per unit) and Total Variable Cost is $332,785 (3,100 * $107.35 per unit). To calculate total contribution margin we subtract Total variable cost from Total sales which gives us $442,215 ($775,000 - $332,785).
Suppose that Greece and Austria both produce jeans and stained glass. Greece's opportunity cost of producing a pane of stained glass is 5 pairs of jeans while Austria's opportunity cost of producing a pane of stained glass is 10 pairs of jeans. By comparing the opportunity cost of producing stained glass in the two countries, you can tell thatGreece has a comparative advantage in the production of stained glass andAustria has a comparative advantage in the production of jeans. Suppose that Greece and Austria consider trading stained glass and jeans with each other. Greece can gain from specialization and trade as long as it receives more than5 pairs of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than1/10 pane of stained glass for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and Greece to gain from trade? Check all that apply. a. 9 pairs of jeans per pane of stained glass. b. 3 pairs of jeans per pane of stained glass. c. 1 pair of jeans per pane of stained glass. d. 8 pairs of jeans per pane of stained glass
Answer:
a. 9 pairs of jeans per pane of stained glass.
d. 8 pairs of jeans per pane of stained glass.
Explanation:
Greece and Austria both produce jeans and stained glass. Greece opportunity cost is 5 pairs of jeans per stained glass and Austria opportunity cost 10 pairs jeans per stained glass. Greece has comparative advantage in producing stained glass whereas Austria has comparative advantage in producing Jeans.
If these both countries agree to trade with each other, the trade would be beneficial if Greece receives more than 5 pairs of jeans per pane of stained glass. If the trade took place at more than 5 pairs of jeans for per pane of stained glass it will be beneficial for both countries. Option a and option d has more than 5 pairs of jeans. Option b has 3 pairs of jeans so the trade is not beneficial for either countries and option c has 1 pair of jeans per pane of stained glass which also a trade not suitable to both countries.
Greece has a comparative advantage in stained glass production and Austria has a comparative advantage in jeans production. Both countries can gain from trade if the price of stained glass is 3 pairs of jeans per pane.
Explanation:Greece has a comparative advantage in the production of stained glass and Austria has a comparative advantage in the production of jeans. In order for both countries to gain from trade, the price of stained glass in terms of jeans should be between 5 and 10 pairs of jeans per pane of stained glass. Options a, c, and d do not fall within this range. Therefore, the correct answer is option b: 3 pairs of jeans per pane of stained glass.
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Kimball’s Vintage Hats is an online-only business selling unique and affordable replicas of vintage designer hats. The business is new, but Kimball worked in Europe for years as a milliner. He sells his wares through an Etsy storefront and has the objective of becoming successful enough to work full time at his passion, this company. What tool or model would most assist Kimball’s Vintage Hats to effectively set its marketing objectives and strategies?
Answer:
SWOT analysis
Explanation:
SWOT analysis -
It refers to the planning method , which is adapted by the organisation or person , in order to analyse and determine the weakness , strength and opportunities for the organisation , is referred to as SWOT analysis .
The method is useful for the betterment of the organization or company .
Hence , from the given scenario of the question,
The correct term is SWOT analysis .
The SMART goal framework is the most effective tool for Kimball's Vintage Hats to set marketing objectives and strategies.
Explanation:The most effective tool or model for Kimball's Vintage Hats to set marketing objectives and strategies would be the SMART goal framework. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. By using this framework, Kimball can define specific and measurable objectives, ensure they are achievable and relevant to his business, and set clear time-bound deadlines for achieving them.
The business can create a roadmap for a certain target by setting a goal. Together, the components of the framework provide a goal that is well thought out, attainable, and verifiable. For example, a SMART marketing objective for Kimball's Vintage Hats could be to increase online sales by 20% within the next six months through targeted social media advertising and collaborations with fashion bloggers.
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Calculate Cove’s new break-even point under each of the following independent scenarios: (Round your answers to the nearest whole number.) a. Sales price increases by $2.00 per cake. b. Fixed costs increase by $520 per month. c. Variable costs decrease by $0.38 per cake. d. Sales price decreases by $0.20 per cake.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
We are not provided with enough information to calculate the break-even point in units, but I will the formula and explanation on each case to solve it:
Break-even point= fixed costs/ contribution margin
a. Sales price increases by $2.00 per cake.
Break-even point= fixed costs/ [(selling price + 2) - unitary variable cost]
b. Fixed costs increase by $520 per month.
Break-even point= (fixed costs + 520)/ contribution margin
c. Variable costs decrease by $0.38 per cake.
Break-even point= fixed costs/ [selling price - (unitary cost - 0.38)]
d. Sales price decreases by $0.20 per cake.
Break-even point= fixed costs/ [(selling price - 0.20) - unitary variable cost]
Joe is confused about refundable versus nonrefundable credits. His preparer explains nonrefundable credits can reduce tax liability to zero but never add to his refund. Which of the following credits is a nonrefundable credit? a) Child and dependent care credit b) Additional child tax credit c) Earned income credit d) Excess Social Security withheld
Answer:
a) Child and dependent care credit
Explanation:
there are two types of credit tax one is refundable and other one is non-refundable and Child and dependent care credit which is non refundable , this basis on income level and earning of individual. This is type of credit which actually relief anyone who is spend more on their child care or souse care i-e disbale spouse or ill child.
Brief Exercise 4-09 At Raymond Company, the following errors were discovered after the transactions had been journalized and posted. 1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870. 2. The purchase of store supplies on account for $1,510 was recorded as a debit to Supplies $1,150 and a credit to Accounts Payable $1,150.
Answer:
Dr Cash 870
Cr Account Receiable 870
Dr Supplies 360
Cr Account Payable 360
Explanation:
1. whenever sales is recorded, Account receivable is debited and sales revenue is credited,cash is recorded when collection is made against that receivable in this case directly cash has been recorded without first generating account receivable entry.
2.in this case (1510-1150=$360) of purchases has not been recorded therefore we have to create an entry of $360.
The errors in Raymond Company's accounting records can be corrected through adjusting entries.
Explanation:The errors described in the question are related to the journalizing and posting of transactions in the accounting records of Raymond Company. These errors include recording a collection on account as a debit to Cash and a credit to Service Revenue, and recording a purchase of store supplies on account as a debit to Supplies and a credit to Accounts Payable.
To correct these errors, the company needs to make adjusting entries. For the first error, they should credit Cash and debit Accounts Receivable to adjust the collection on account. For the second error, they should debit Supplies and credit Accounts Payable to adjust the purchase of store supplies.
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True or False. The periodic (for example, monthly, quarterly, or annual) payment for an amortized loan is determined as the payment term in the formula for the calculation of the present value of an annuity. False
Answer: The correct answer is "false".
Explanation: The payment term in the formula for the calculation of the present value of an annuity consists of 3 variables.
Term of the operation: The term of the operation is the duration in the time that the operation has, from the constitution of the annuity until its expiration.
Periodic payment: The periodic payment is how often the annuity pays interest. (For example: monthly, quarterly or annual).
and "N": It is the number of times that the periodic payment enters within the term of the operation. For example, if the term of the operation is 1 year, and the periodic payment monthly, N = 12. If the term is 1 year and the periodic payment is quarterly, N = 4.
This number "n" is the one used in the formula for calculating the present value of an annuity.
Ratio Calculations Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.2x Return on assets (ROA) 5% Return on equity (ROE) 13% Calculate Caulder's profit margin assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. % Calculate Caulder's debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Round your answer to two decimal places. %
Answer:
2.27% ; 61.54%
Explanation:
Given that,
Sales/Total assets = 2.2x
Return on assets (ROA) = 5%
Return on equity (ROE) = 13%
Therefore,
Return on assets = Profit margin × Assets turnover
0.05 = Profit margin × 2.2
Profit margin = 0.05 ÷ 2.2
Profit margin = 0.0227 or 2.27%
Percent of total assets is from equity:
= Return on assets ÷ Return on equity
= 0.05 ÷ 0.13
= 0.3846 or 38.46%
Hence, the debt is as follows:
Debt = Assets - equity
= 1 - 0.3846
= 0.6154 or 61.54%
"Health care is so special that price will never matter. People will either buy what medical care they need, or else they will just go without treatment if they can't afford the fees."Do you agree with this statement, disagree with it, or are you uncertain?
Answer:
This statement is true.Explanation:
It is agreeable that health care is very important. People often doesn't care about the cost of medical care as far as they get treated from their illness. Healthcare ranges from daily nutrient supplements to the most complicated open heart surgery. It includes all expenses incurred on health issues and problems.
People are mostly left with the choice to go for expensive treatment or go without treatment if can't afford it. This happens because there is a lack of proper governmental healthcare scheme in between and also due to medical expenses skyrocketing every single day. People who can afford treatment go for it no matter what the cost might be. Often leaving them penniless after the treatment.
However, some people who can't afford such treatments usually have to deal with their sicknesses and illness lifelong without any treatment. Thus, making them unproductive to earn a good livelihood. They can hardly make ends meet or earn nothing because of health issues.
Therefore, the need for a proper social healthcare scheme is important. These problems can be eliminated or avoided if the people are provided concessions, free medical care, reimbursement, etc. through social healthcare.
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The costs of overfishing and other overly intensive uses of resources Expenditures on federal highways The variety of goods available to consumers The value produced by doing your own laundry
Answer:
The variety of goods available to consumers: GDP only looks a at the value of goods that are produced within the country, it does not take into account the variety available in the market to consumers.
The value produced by doing your own laundry: GDP does not measure non-market activities, so personal jobs like doing your own laundry is not accounted for.
Explanation:
Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year.
What is the ending work in process inventory balance?
a. $172,000
b. $ 11,400
c. $ 4,150
d. $ 79,250
Answer:
Option (b) is correct.
Explanation:
Given that,
Beginning work in process inventory balance = $32,000
Direct materials was placed into production = $54,500
Direct labor = $63,400
Actual manufacturing overhead = $86,500
Jobs costing completed during the year = $225,000
Ending work in process inventory balance:
= Beginning work in process inventory balance + Direct materials was placed into production + Direct labor + Actual manufacturing overhead - Jobs costing completed during the year
= $32,000 + $54,500 + $63,400 + $86,500 - $225,000
= $11,400
The ending work in process (WIP) inventory balance for Davy Company is $23,650.
To calculate the ending work in process (WIP) inventory balance, we can use the following formula:
Ending WIP Inventory = Beginning WIP Inventory + Total Manufacturing Costs - Cost of Completed Jobs
First, calculate the total manufacturing costs:
1. Direct Materials = $54,500
2. Direct Labor = $63,400
3. Indirect Labor = $19,500
4. Manufacturing Overhead Applied = 125% of Direct Labor Costs = 1.25 * $63,400 = $79,250
Total Manufacturing Costs = Direct Materials + Direct Labor + Indirect Labor + Manufacturing Overhead Applied
Total Manufacturing Costs = $54,500 + $63,400 + $19,500 + $79,250 = $216,650
Now, calculate the ending WIP inventory balance:
Beginning WIP Inventory = $32,000
Total Manufacturing Costs = $216,650
Cost of Completed Jobs = $225,000
Ending WIP Inventory = $32,000 + $216,650 - $225,000 = $23,650
So, the ending work in process inventory balance is $23,650.
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Inflation is running at 1.2% per year when you deposit $11,000 in an account earning 6% compounded monthly. In constant dollars, how much money will you have four years from now?
Answer:
$13,316.54
Explanation:
Data provided in the question:
Inflation rate, i = 1.2% = 0.012
Deposits = $11,000
Interest rate, r = 6% = 0.06
Time, t = 4 years
since compounded monthly, number of periods n = 12
Now,
Future value of money with the interest
= Deposits × [tex][1+ \frac{r}{n}]^{n.t}[/tex]
= $11,000 × [tex][1+ \frac{0.06}{12}]^{12\times4}[/tex]
= $13,975.38
Considering the inflation,
Amount after 4 years = Future value × [1 - i ]ⁿ
= $13,975.38 × [1 - 0.012]⁴
= $13,316.54
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $31,000 bill from her accountant for consulting services related to her small business. Reese can pay the $31,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 11 percent on her investments. a. What is the after-tax cost if she pays the $31,000 bill in December?b. What is the after-tax cost if she pays the $31,000 bill in January?
Answer:
Explanation:
a)
If Reese pays in December,
31,000*0.32(marginal tax rate)=9920
After tax cost = Pretax cost - Present value of tax saving = 31,000-9,920 = 21,080
b)
If Reese pays in January,
31,000*0.35 = 10,850
After tax cost = Pretax cost - Present value of tax saving = 31,000-10,850(discount factor 1 year, 11%) = 31,000 - 10,850* 0.9009
= 31,000 - 9,774.765= 21,225.235
January 1, Biden, Inc.'s WorkminusinminusProcess Inventory account had a balance of $ 30 comma 800. During the year, $ 58 comma 500 of direct materials was placed into production. Manufacturing wages incurred amounted to $ 85 comma 000, of which $ 66 comma 000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $ 91 comma 200. Jobs costing $ 220 comma 700 were completed during the year. What is the December 31 balance of WorkminusinminusProcess Inventory? A. $ 13 comma 800 B. $ 234 comma 500 C. $ 30 comma 800 D. $ 155 comma 300
Answer:
Option (A) is correct.
Explanation:
Given that,
Direct materials = $58,500
Direct labor = $66,000
Manufacturing overhead = 120% of direct labor cost
Opening WIP = $30,800
Cost of goods manufactured:
= Direct materials + Direct labor + Manufacturing overhead
= $58,500 + $66,000 + 120% of direct labor cost
= $58,500 + $66,000 + (120% × $66,000)
= $58,500 + $66,000 + $79,200
= $203,700
December 31 balance of Work-in-Process Inventory:
= Opening WIP + cost of goods manufactured - cost of goods completed
= $30,800 + $203,700 - $220,700
= $13,800
Final answer:
The December 31 balance of Work-in-Process Inventory is calculated by adding the starting inventory to the total manufacturing costs incurred and then subtracting the cost of completed jobs. The ending balance is $13,800.
Explanation:
To calculate the December 31 balance of Work-in-Process (WIP) Inventory, we need to account for all manufacturing costs added during the year. We begin with the starting WIP inventory balance. Then we add the costs of direct materials, direct labor, and manufacturing overhead to calculate the total manufacturing costs incurred for the year. Finally, we subtract the cost of jobs completed during the year from this total to find the ending WIP inventory balance.
Starting WIP Inventory: $30,800
Direct Materials Used: $58,500
Direct Labor: $66,000
Manufacturing Overhead (allocated at 120% of direct labor cost): $66,000 imes 120% = $79,200
Total Manufacturing Costs Incurred: $30,800 + $58,500 + $66,000 + $79,200 = $234,500
Completed Jobs Cost: $220,700
Ending WIP Inventory: $234,500 - $220,700 = $13,800
Therefore, the December 31 balance of Work-in-Process Inventory is $13,800.
Use the price of apples and oranges to calculate a price index called the Apple and Oranges Price Index (AOPI). Apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009. If 10 apples and 5 oranges were purchased in 2002, and 5 apples and 10 oranges were purchased in 2009, the AOPI for 2009, using 2002 as the base year, is:
Answer:
2009 AOPI is 125
Explanation:
The question is to determine the Apples and Oranges Price Index (AOPI) for 2009 with 2002 as the base year
First step: For the base year 2002, the goods were bundled as 10 apples and 5 oranges
Therefore, we calculate the cost of these two in 2002 as follows
= 10 apples x $0.5 + 5 oranges x $1 = $10
Second step: For the 2009, the goods were 5 apples and 10 oranges however, since we are using 2002 as the base year, we will calculate the cost of this same 10 aples and 5 oranges using the 2009 value.
= 10 apples x $1 + 5 oranges x $0.25
= $12.5
Step 3: Based on these calculations with 2002 as the base year
The consumer price index = (12.5/10) x 100
The AOPI (Apple and Oranges Price Index) for 2009 assuming that of 2002 is 100 will be 125
Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period. A. allocate B. approximate C. assign D. accumulate
Answer: (D) Accumulate
Explanation:
The accumulate is the term that is used to refers to the increase in the business equity and also the working capital due to the high profit in an organization.
It is basically refers to the flow account in which we record all the asset and the financial and also the non-financial liabilities during the time of transaction.
According to the given question, the manufacturing overhead is one of the type of temporary account that is typically used to accumulate the indirect production cost at the time of accounting.
Therefore, Option (D) is correct answer.
Woodland industries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $13 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 52,800 units for the year, which will require 220,000 direct labor hours:
Activity-Cost Driver Budgeted Costs for 2016 Cost Driver Used as Allocation Base Cost Allocation Rate
Materials handling $61,600 Number of parts used $0.28 per part
Cutting and lathe work $2,710,400 Number of parts used $12.32 per part
Assembly and inspection $3,850,000 Direct labor hours $17.50 per hour
The following production, costs and activities occurred during the month of July:
Units Produced Direct Materials Costs Number of Parts Used Direct Labor Hours
3,050 $101,500 508 13,600
Required:
a. Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of July(using the activity-based costing approach). (Round "Cost per unit produced" to 2 decimal places.)
b. Assume instead that Woodland Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activity-based costing system). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month of July. (Round "Cost per unit product" to 2 decimal places.)
c. Which approach do you think provides better information for manufacturing managers?
Answer:
Explanation:
a.
Direct materials 101,500
Direct labour (13,600 * 13) 176, 800
Materials handling (508 * 0.28) 142.24
Cutting and lathe work (508 * 12.32) 6258.56
Assembly and inspection (13,600 * 17.5) 238,000
Total manufacturing cost 522,700.8
Cost per unit produced = 522,700.8 / 3,050 =
= 171.377 per unit.
b.
Predetermined overhead rate = Estimated overhead costs / Estimated Direct labour hours
(61,600 + 2,710,400 + 3,850,000) / 220,000
= 30.1 per direct labour hour
Direct materials 101,500
Direct labour (13,600 * 13) 176,800
Manufacturing overhead (13,600 * 30.1) 409,360
Total manufacturing cost 687,660
Cost per unit produced = 687,660/ 3,050
= 225.46 per unit.
The total manufacturing cost for July using activity-based costing is $522,100.80, resulting in a cost of $171.18 per unit. If overhead is applied based on direct labor hours, the total cost is $688,412 with a cost of $225.70 per unit. The ABC method provides more detailed and accurate costing.
Explanation:Activity-Based Costing Calculation
To calculate the total manufacturing costs for July using the activity-based costing (ABC) approach, consider the following steps:
Determine the cost of materials handling: 508 parts * $0.28/part = $142.24Calculate the cost of cutting and lathe work: 508 parts * $12.32/part = $6,258.56Compute the cost of assembly and inspection: 13,600 labor hours * $17.50/hour = $238,000Now add direct materials and direct labor costs to overheads: $101,500 (direct materials) + $176,800 (direct labor) + $142.24 + $6,258.56 + $238,000 = $522,100.80 total manufacturing costsTo find the cost per unit: $522,100.80 total cost / 3,050 units = $171.18 per unit produced.Costing on Direct Labor Hours Basis
If Woodland Industries applies manufacturing overhead on a direct labor hours basis, assume a single predetermined overhead rate:
First, calculate the total overhead costs using the provided overhead rates and multiply by the actual direct labor hours: ($0.28 + $12.32 + $17.50) * 13,600 hours = $410,112Now add direct materials and direct labor costs: $101,500 + $176,800 + $410,112 = $688,412 total manufacturing costsCost per unit on this basis: $688,412 / 3,050 units = $225.70 per unit.The ABC approach provides more accurate and detailed cost information because it traces overhead costs to specific activities, more accurately reflecting the consumption of resources.
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The actual behavior of the person who occupies a status is termed Select one: a. role performance. b. master status. c. role set. d. duties.
Answer:
The correct answer is letter "A": role performance.
Explanation:
In sociology, the role of a person is described as the expected behavior of an individual according to the status possessed. Then, the real behavior those individuals have according to their status is called the role performance. The individuals' status is their social position in their corresponding communities.
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%. What amount of interest has accrued as of 12/31/12?
Answer:
The amount of interest has accrued as of 12/31/12: $720
Explanation:
Porters Inc. issued a 120-day note in the amount of $160,000 on 12/14/12 with an annual rate of 9%.
The amount of interest Porters Inc. pays per year = $160,000 x 9% = $14,400
Assuming 1 year period to calculated interest has 360 days.
From 12/14/12 to 12/31/12, Porters Inc. had issued the note for 18 days.
The amount of interest has accrued on 12/31/12:
$14,400/360 x 18 = $720
Final answer:
To calculate the accrued interest of $160,000 at a 9% annual interest rate for 17 days, the calculation yields an interest amount of $680 as of 12/31/12.
Explanation:
The question involves calculating the amount of interest accrued on a note payable by Porters Inc.
To find out how much interest has accumulated as of 12/31/12, we first need to calculate the number of days from the issue date (12/14/12) to the date of interest calculation (12/31/12), which is 17 days. The formula for the interest accrued on a note is: Interest = Principal × Rate × Time. Here, the note's principal is $160,000, the annual interest rate is 9%, and the time in years for the 17 days of interest (since there are 360 days in the banking year) is 17/360.
To calculate the accrued interest: $160,000 × 9% × (17/360) = $680. Therefore, as of 12/31/12, the accrued interest is $680.
Allocating product cost between cost of goods sold and ending inventory
Jones Co. started the year with nno inventory. During the year, it purchased two identical inventory items at different times. The first purchase cost $1,060 and the other $ 1,380. Jones sold one of the itmes during the year.
Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements,assuming use of
A.FIFO?
B.LIFO?
C. Weighted average
Explanation:
The computation of the product cost under each inventory method is shown below:
A. FIFO
Cost of goods sold = $1,060
Ending inventory = $1,380
B. LIFO
Cost of goods sold = $1,380
Ending inventory = $1,060
C. Weighted average
Weighted average cost per unit = ($1,060 + $1,380) ÷ 2 = $1,220
Cost of goods sold = ($1,060 + $1,380) ÷ 2 = $1,220
Ending inventory = ($1,060 + $1,380) ÷ 2 = $1,220
Agreement and disagreement among economists
Suppose that Lorenzo, an economist from a research institute in Texas, and Neha, an economist from a nonprofit organization on the West Coast, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Neha: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Lorenzo: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Neha: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
The disagreement between these economists is most likely due to differences
A.) in perception versus reality.
B.) in value.
C.) in scientific judgment.
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
A.) Lawyers make up an excessive percentage of elected officials.
B.) Tariffs and import quotas generally reduce economic welfare.
C.) Minimum wage laws do more to harm low-skilled workers than help them.
Answer:
The correct answers are:
B.) in value.
B.) Tariffs and import quotas generally reduce economic welfare.
Explanation:
In the first case, both economists disagree on a value issue.
One of them believes that government programs cause more harm than good, while the other believes that it helps the less fortunate, this is an example that the difference is in value, over whom the government helps.
Despite their differences, the proposition in wich this two economists are most likely to agree is Tariffs and import quotas generally reduce economic welfare.
Because both believe, at some point, that government participation in the economy is ineffective.
One believes that it is totally inefficient and another believes that it is only partially, therefore both would agree on this.
The disagreement between the economists is likely due to value differences rather than perception or scientific judgment. The statement most economists would likely agree on is that tariffs and import quotas generally reduce economic welfare.
Explanation:The disagreement between economists Lorenzo and Neha is most likely due to differences in value, as they express divergent beliefs about the role and efficacy of government intervention in the economy. In terms of a proposition on which two economists chosen at random are most likely to agree, it would probably be B.) Tariffs and import quotas generally reduce economic welfare. This point of agreement is less about personal belief systems and more about economic theory, which most economists abide by. Many economists agree that tariffs and import quotas can lead to a drop in economic welfare because these measures can distort trade and create inefficiencies.
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John has just won the state lottery and has three award options from which to choose. He can elect to receive a lump sum payment today of $46 million, 10 annual end-of-year payments of $7 million, or 30 annual end-of-year payments of $4 million. If he expects to earn a 7% annual return on his investments, which option should he choose and why?
Answer:
John should opt for the 30 annual end-of-the-year payments of $4 million as that gives the highest present of value of $49,636,164.73 as shown below.
Explanation:
The options are evaluated as follows:
Option 1 $46,000,0000 today
Option 2
The present of value of this option is calculated using the below formula:
Present value of annuity = ((1-(1/((1+i)^n))/i) X PMT
where i=rate=7%
n=10years
PMT=$7m
PV=((1-(1/((1+0.07)^10))/0.07) X 7000000
PV=$ 43,834,929.21
Option 3
The present value of this option using the formula in option 2 is:
PV=((1-(1/((1+0.07)^30))/0.07) X 4000000
PV=$49,636,164.73
Hence, the last option is preferable.
For claims about the product, positioning statements should: ________________a. cite all of the benefits that the brand offers. b. focus only on the points of differentiation between this brand and others. c. avoid any reference to points of similarity with competitor brands. d. focus on the single, most important value claim.
Positioning statements should focus on the single, most important value claim and highlight the brand's unique benefits and differentiation from competitors.
Explanation:For claims about the product, positioning statements should focus on the single, most important value claim (option d).
Positioning statements should clearly communicate the unique value that the brand offers to customers, which sets it apart from competitors.
These statements should highlight the key benefits and points of differentiation of the brand, while also acknowledging potential points of similarity with competitor brands that may not be the main focus.
The AQCD test refers to the need for key external factors to exhibit what attributes? A. Actionable and decisive B. Decisive and comparative C. Actionable and commonality D. Quantitative and divisional E. Algebraic and decisive
Answer:
D. Quantitative and divisional
Explanation:
AQCD stands for actionable, quantitative, comparative, and divisional.
Hence, the only choice that contains two of those attributes is D.
AQCD are criteria that the factors used in a SWOP analysis must meet to ensure that the factors are as specific as possible. This is, the the external and internal factors in the SWOP analysis should be stated in the most actionable, quantitative, comparative, and divisional terms to avoid vagueness.
Remember that SWOT analysis is the tool for stratetic management to analyse the strengths, weaknesses, opportunities, and threats that the enterpise posses or face. The two former are internal factors and the two latter are external factors.
Those AQCD is aimed to state the factors as specific as possible.
The AQCD test refers to the need for key external factors to be Actionable, Quantitative, Comparative, and Divisional. These attributes suggest that the factors should be capable of guiding decisions, measurable, comparable, and subdividable for detailed analysis.
Explanation:The AQCD test in the context of business stands for Actionable, Quantitative, Comparative, and Divisional. These four attributes deal with critical aspects of data that businesses require to make informed decisions.
They indicate that the data should be Actionable (they can guide strategic decisions), Quantitative (numeric and measurable), Comparative (can be compared with other data sets or benchmarks), and Divisional (can be broken down into smaller segments for closer analysis).
So, in response to your question, the key external factors need to exhibit the attributes of being Actionable and Quantitative, Comparative, and Divisional (Option E).
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Bad debts analysis-Allowance account On January 1, 2019, the balance in Kubera Co.'s Allowance for Bad Debts account was $25,160. During the year, a total of $65,700 of delinquent accounts receivable was written off as bad debts. The unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $30,440. As the result of a comprehensive analysis, it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $19,000. Show the adjustment required in the horizontal model or in journal entry format.
Answer:
Debit Allowance for bad debt account $11,440
Credit Accounts receivables $11,440
Being entries to recognized bad debts previously provided for.
Explanation:
The allowance for bad debt is an account used to estimate how much of the receivables recorded by an entity may become uncollectible. Once determined, the company would post a debit entry to the bad debt account and a credit entry to the allowance for bad debts account.
Given that;
Opening balance in the Allowance for Bad Debts account was $25,160 and during the year, a total of $65,700 of delinquent accounts receivable was written off as bad debts while unadjusted balance in the Allowance for Bad Debts account at December 31, 2019, was $30,440. This means that
$25,160 + x = $30,440
x = $30,440 - $25,160 = $5,280
where x was the net addition to the allowance for bad debt during the year.
If it is determined that the December 31, 2019, balance of the Allowance for Bad Debts account should be $19,000, then the difference between the unadjusted balance and the determined balance will be posted. This difference is
= $30,440 - $19,000
= $11,440
In the journal entries format, adjustments required would be
Debit Allowance for bad debt account $11,440
Credit Accounts receivables $11,440
Being entries to recognized bad debts previously provided for.
Kubera Co. needs to adjust its Allowance for Bad Debts account from a balance of $30,440 to $19,000. This will require a debit of $11,440 to the account, likely paired with a credit to the Bad Debts Expense account.
Explanation:The Allowance for Bad Debts account represents the amount that Kubera Co. anticipates will not be collected from its accounts receivable. Over the course of the year, Kubera Co. wrote off $65,700 in bad debts, and the unadjusted balance at the end of the year was $30,440. However, after a comprehensive analysis, it was determined that the year-end balance should be adjusted to $19,000.
Let's go ahead and make that adjustment in the form of a journal entry:
If the Allowance for Bad Debts account has a higher year-end balance ($30,440) than what is proposed after analysis ($19,000), an entry to decrease the account balance will be needed. That means a debit of $11,440 ($30,440 - $19,000 = $11,440) to the Allowance for Bad Debts account, which could be coupled with a credit to Bad Debts Expense, another income statement account, etc.The resulting journal entry would be:
Debit Allowance for Bad Debts $11,440Credit Bad Debts Expense $11,440Learn more about Accounting journal entry here:https://brainly.com/question/32466059
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If the government wants to increase production of a good to achieve marginal social benefit, then the following policy will most likely be implemented
a. a subsidy so that the firm can operate where marginal social benefit equals marginal social cost.
b. a tax so that the firm can operate where marginal private costs equal marginal revenue.
c. a subsidy so that the firm can operate where marginal private costs equal marginal revenue.
d. a tax so that the firm can operate where marginal social benefit equals marginal social cost.
e. None of the above.
f. It will establish a government owned operation.
Answer:
a. a subsidy so that the firm can operate where marginal social benefit equals marginal social cost.
Explanation:
The private company is producing when the marginal revenue matches the marginal cost. The governemtn will want to decrease the cost (that's by subsidize the activity) to match the marginal revenue considering the positive externalities.
The government will do a pigouvian subsidy.
The government reasons to go for this is that the good or services provide positive externalities Which are enjoy by people who doens't purchase the good. Thus, this subsidy will increase the amount of ooutput thus, generating a better social benefit.
International business is a broad and potentially complex field of study and practice. There are many different definitions and concepts that are critical to this field, and this activity will emphasize several of the most critical ones that are used throughout the text. Understanding these terms and concepts will help students, managers and policy makers to better understand what international business is, how it differs from domestic business? why it is becoming increasingly important? and how international business has evolved throughout history?
Explanation:
International business can be defined as the expansion of the activities of a certain company, such as its goods and services, technologies, resources, ideas and other variables beyond national borders.
Internationalizing business activities is increasingly common in a globalized economic society, where companies seek to expand to locations that present opportunities to gain market and facilities for the implementation of the company. Many countries have favorable conditions to encourage the entry of foreign companies, such as red tape, government agreements, cheap labor, tax cuts, etc.
One factor that contributed to the internationalization strategy becoming a common practice by large companies was technological innovations, which made it possible to shorten logistical distances by means of efficient and faster means of transport, and another example was also the creation of the internet, which streamlined communication by making processes faster and easier.
Ray works as an accountant for a non-profit organization. Ray got his current position after volunteering at a few of the non-profit’s events and becoming friends with some of its employees. Which method did Ray use to develop his professional network?
Ray used Strategic method to develop his professional network.
Explanation:
Ray works as an accountant at Non profit organisation.There is always important to know a lot of people from that industry.Ray started volunteering in the event, Event are most important place.It helps in socializing with people getting to know from diversity.A conversation said by other people helps people get into the business.This works with allot of organization to help make friends and socialize.