Answer:
b. False
Explanation:
The trial balance shows the total debit and credit balances of individual accounts in a company's books. It shows all the balances of the assets, liabilities, income and expenses in two columns; debits and Credits.
A trial balance can only show an error where the debits and credit balances are not equal.
A credit to account receivables that should have been posted to the cash account would understate the receivables account but overstate the cash account. However, these are two assets accounts. As such, the trial balance would not detect this as the debits and credits would still be equal.
The right option is b. False
Which of the following refers to a clause in a contract that identifies the state law that will apply to any disputes that arise under the contract
forum selection clause.
escalator clause.
omnibus clause.
reserve clause.
Answer:
Forum selection clause
Explanation:
Forum selection clause is a provision that is usually a part of all written contractual agreement that are commercial in nature. It aims to indicate where a litigation of a dispute relating to a written contract can be carried out. Therefore, the courts of a specific jurisdiction saddled with the responsibility of hearing and settling a dispute is indicated by the clause.
Choosing between a state court in particular state and another one in another states can allow be allowed by the forum selection when it is permissive.
Why would an insurer perform more rigorous underwriting on a term insurance applicant than a whole-life insurance applicant?
Answer:
Please see the answer below
Explanation:
As the rigorous of underwriting is depending on the types of insurance for the applicant who opt for it. Also depend on the sum assured and distribution process by the insurance company. In Term insurance if the sum insured is too high it is strictly underwritten than the whole life insurance because the risk taken by the insurer is high in term insurance. If underwriting is not strict, there are chances for anti selection in which policy holder use information for his own benefit choice. Risk to the insurer always rise with the sum insured. Application which contains high sum insured tend to be underwritten more rigorously.
Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix, one of the company’s products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Supermix occur. To keep production and sales moving smoothly, the company has the following inventory requirements:
a.
The finished goods inventory on hand at the end of each month must be equal to 4,000 units of Supermix plus 25% of the next month’s sales. The finished goods inventory on June 30 is budgeted to be 21,250 units.
b.
The raw materials inventory on hand at the end of each month must be equal to one-half of the following month’s production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 88,000 cc of solvent H300.
c. The company maintains no work in process inventories.
A sales budget for Supermix for the last six months of the year follows.
Budgeted Sales
in Units
July 69,000
August 74,000
September 84,000
October 64,000
November 54,000
December 44,000
Required:
1.
Prepare a production budget for Supermix for the months July, August, September, and October.
2.
Prepare a direct materials budget showing the quantity of solvent H300 to be purchased for July, August, and September, and for the quarter in total.
Answer:
Pearl Products Limited of Shenzhen, China
Finished Goods Production Budget
For the months of July August Sept October November Dec
Units required to 51,750 55500 63,000 48,000 40,500 33,000
meet Sales budget
Desired Ending 22,500 37,600 20,000 17,500 15,000 *15,000*
Inventory
Total Units Req. 74,500 93,100 83,000 65,500 55,500 48,000
Less Estimated
Beg. Inventory 21,250 22,500 37,600 20,000 17,500 15,000
Planned Production 53,250 70,600 45,400 45,500 38,000 33,000
Explanation:
Working Notes:
Units required to meet Sales budget is calculated by multiplying 3/4 of the given months sales as 25 % of it is already included in that months opening inventory . For example July's unit required to meet sales budget would be 69,000 * 3/4= 51,750
Each month's beginning inventory is previous month's ending inventory
As no data for sales budget of January is given the desired ending inventory is taken on the basis of previous months desired inventory.
Pearl Products Limited of Shenzhen, China
Direct Materials Budget
For the months of July August Sept October November Dec
Units to Meet
Production Budget 159,750 211,800 136,200 136,500 114,000
Desired Ending 105,900 68,100 68,250 57,000 49,500
Inventory
Less Beginning
Inventory 88,000 105,900 68,100 68,250 57,000
Direct Materials
Budget 177,650 174,000 136,350 125,250 106,500
Explanation:
Working Notes:
Each finished goods units requires 3 units of direct material . The units to meet the production budget are estimated by multiplying them with 3. for example the July Production budget is 53,250 so it is multiplied with 3 to get the direct material required and 53,250 *3= 159,750
1. Pearl Products Limited's Production Budget for Supermix for the months of July, August, September, and October
July August September October
Sales in units 69,000 74,000 84,000 64,000
Ending Inventory 22,500 25,000 20,000 17,500
Total units required 82,500 99,000 104,000 81,500
Beginning Inventory 21,250 22,500 25,000 20,000
Production Units 61,250 76,500 79,000 61,250
2. Pearl Products Limited's Direct Materials Budget for Solvent H300 for the quarter:
July August September Total
Solvent H300 required 183,750 229,500 239,000 652,250
Ending Inventory 114,750 119,500 91,875 326,125
Total materials 298,500 349,000 330,875 978,375
Beginning Inventory 88,000 114,750 119,500 322,250
Purchases of H300 210,500 234,250 211,375 656,125
Data and Calculations:
Sales Budget and Production Budget
July August September October November December
Sales in units 69,000 74,000 84,000 64,000 54,000 44,000
Ending
Inventory 22,500 25,000 20,000 17,500 15,000
Total units
required 82,500 99,000 104,000 81,500 69,000
Beginning
Inventory 21,250 22,500 25,000 20,000 17,500
Production 61,250 76,500 79,000 61,250 51,500
Raw materials Inventory:
July August September October November
Production Units 61,250 76,500 79,000 61,250 51,500
Raw materials (1 unit = 3cc of H300)
required 183,750 229,500 239,000 183,750 154,500
Ending Inventory 114,750 119,500 91,875 77,250
Total materials 298,500 349,000 330,875 261,000
Beginning
Inventory 88,000 114,750 119,500 91,875
Purchases 210,500 234,250 211,375 169,125
For the production units, calculate the ending inventory based on 4,000 + 25% of the next month's sales units. Add this to the sales units for the month to obtain the total units required. Subtract the beginning inventory from this total to get the units that must produced each month.For the units to be purchased, first multiply the production units by 3 cc of H300. This gives the raw materials required for production. Then work out the ending inventory and add to the required production materials to get the units that must be available to meet production and ending inventory requirements. Subtract the beginning inventory from this total to get the units of raw materials that must be purchased each month.Thus, the production units are as given above, while the units to be purchased of H300 are also indicated.
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Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called a. multiple channeling. b. strategic channel alliance. c. intensive distribution. d. market splitting. a. multi channel distribution.
Answer:
Option "A" is the correct answer for the following.
Explanation:
Multichannel marketing highlights the importance by which businesses deal with customers through multiple channels, both directly and indirectly, to sell products and services to them.Multichannel marketing carries the risk of engaging opportunities, leads, and clients across a mix of explicit and implicit channels of communication.In this way, the consumer controls the procurement process more than just the marketing company.Therefore option "A" is the correct answer.
Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.
a. Variable
b. Direct
Answer:varible
Explanation: you welcome
Final answer:
The hourly workers' cost in a carpet cleaning service company is both a variable and a direct cost because they vary with the number of services provided and are directly associated with those services. Both is correct
Explanation:
The cost of the hourly workers who clean carpets for a service company would be classified as both variable and direct. Variable costs change in proportion to the amount of service provided or goods produced.
For the carpet cleaning company, as more carpets are cleaned, more hours of labor will be necessary, hence increasing the variable costs of labor. Additionally, the cost is direct because it is directly associated with the service provided to customers - carpet cleaning.
An investment will pay you $120 in one year and $200 in two years. If the interest rate is 4%, what is the present value of these cash flows?
Answer:
Present value= $300.29
Explanation:
Giving the following information:
An investment will pay $120 in one year and $200 in two years. The interest rate is 4%.
To calculate the present value we need to use the following formula:
PV= FV/(1+i)^n
PV= present value
FV= final value
i= interest rate
n= number of years
PV1= 120/1.04^1= 115.38
PV2= 200/1.04^2= 184.91
Present value= $300.29
The present value of the $120 payment due in one year and the $200 payment due in two years, given a 4% interest rate, is approximately $300.
Explanation:The present value of future cash flows can be calculated by using the present value formula. The formula is:
PV = FV / (1 + r)^n
Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
For the first payment, FV is $120, r is 0.04 (4%), and n is 1. So, the present value of the first payment is:
PV = $120 / (1 + 0.04)^1 = $115.38
For the second payment, FV is $200, r is 0.04 (4%), and n is 2. So, the present value of the second payment is:
PV = $200 / (1 + 0.04)^2 = $184.62
Therefore, the total present value of these cash flows is $115.38 + $184.62 = $300.
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Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current assets Cash $60,000 $30,000 Short-term investments 40,000 10,000 Accounts receivable 55,000 95,000 Inventory 110,000 90,000 Prepaid expenses 35,000 20,000 Total current assets $300,000 $245,000 Current liabilities Accounts payable $140,000 $110,000 Salaries payable 40,000 30,000 Income tax payable 20,000 15,000 Total current liabilities $200,000 $155,000 During 2017, credit sales and cost of goods sold were $750,000 and $400,000, respectively. Compute the following liquidity measures for 2017: (Round current and acid-test ratios to 2 decimal places, e.g. 52.71.) 1. Current ratio :1 2. Working capital $ 3. Acid-test ratio :1 4. Accounts receivable turnover times 5. Inventory turnover times
Answer:
Liquidity measures for the year 2017 are as under:
Current Ratio = 1.5
Working Capital = $100,000
Acid Test Ratio = 0.95
Accounts Receivables Turnover = 10 times
Inventory turn over = 4 times
Explanation:
Current Ratio
Current Ratio = Current Assets ÷ Current Liabilities
Dec 31, 2017 Dec 31, 2016
$300,000 ÷ $200,000 $245,000 ÷ $155,000
Current Ratio 1.5 1.6
Working Capital
Working Capital = Current Assets – Current Liabilities
Dec 31, 2017 Dec 31, 2016
$300,000 – $200,000 $245,000 – $155,000
Working Capital $100,000 $90,000
Acid Test Ratio
Acid Test Ratio = (Current Assets – Inventory) ÷ Current Liabilities
Dec 31, 2017 Dec 31, 2016
($300,000 – $110,000) ÷ $200,000 ($245,000 – $90,000) ÷ $155,000
Acid Test Ratio 0.95 1.00
Accounts Receivables Turnover Times
Accounts Receivables Turnover = Credit Sales ÷ Average Accounts Receivables
Average Accounts Receivables = (Opening Accounts Receivables + Closing Accounts Receivables) ÷ 2
Average Accounts Receivables = ($55,000 + $95,000) ÷ 2 = $75,000
Accounts Receivables Turnover = $750,000 ÷ $75,000 = 10 Times
Inventory Turnover Times
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Average Inventory = (Opening Inventory + Closing Inventory) ÷ 2
Average Inventory = ($110,000 + $90,000) ÷ 2 = $100,000
Inventory Turnover = $400,000 ÷ $100,000 = 4 Times
Liquidity can be defined as the company’s capability of raising the cash in the required times.
Current ratio has been the liquidity ratio that has been the liquidity ability of the year. Current ratio can be given by:Current ratio = [tex]\rm \dfrac{current\;assests}{current\;liabilities}[/tex]
Current ratio for Dec. 31, 2017 = [tex]\rm \dfrac{300,000}{200,000}[/tex]
Current ratio for Dec. 31, 2017 = 1.5
Current ratio for Dec. 31, 2016 = [tex]\rm \dfrac{245,000}{155,000}[/tex]
Current ratio for Dec. 31, 2016 = 1.6
Working capital can be given by:Working Capital = Current Assets – Current Liabilities
Working capital for Dec. 31, 2017 = $300,000 – $200,000
Working capital for Dec. 31, 2017 = $100,000
Working capital for Dec. 31, 2016 = $245,000 – $155,000
Working capital for Dec. 31, 2016 = $90,000
Acid-test ratio can be given as:
Acid-test ratio = [tex]\rm \dfrac{Current\;Assets\; -\;Inventory}{Current\;Liabilities}[/tex]
Acid-test ratio for Dec. 31, 2017 = [tex]\rm \dfrac{(300,000\;-\; 110,000}{200,000}[/tex]
Acid-test ratio for Dec. 31, 2017 = 0.95
Acid-test ratio for Dec. 31, 2016 = [tex]\rm \dfrac{(245,000\;-\; 90,000}{155,000}[/tex]
Acid-test ratio for Dec. 31, 2016 = 1.00
Accounts Receivables Turnover can be given by:
Accounts Receivables Turnover = [tex]\rm \dfrac{Credit\;sales}{Average\;accounts\;receivable}[/tex]
Accounts Receivables Turnover for Dec. 31, 2017 = [tex]\rm \dfrac{750,000}{75,000}[/tex]
Accounts Receivables Turnover for Dec. 31, 2017 = 10 times
Inventory turnover times can be given by:
Inventory turnover times = [tex]\rm \dfrac{cost\;sold}{average\;inventory}[/tex]
Inventory turnover times = [tex]\rm \dfrac{400,000}{100,000}[/tex]
Inventory turnover times = 4 times.
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Your plant produces 100 snowmobiles per month. Direct costs are $2,000 per snowmobile. Monthly overhead is $90,000. What is the average cost per snowmobile with overhead?
Answer:
$2,900
Explanation:
If we use a cost function, it will be easy to understand. Cost function = (variable cost per unit × quantity) + fixed cost.
Here,
Direct cost per snowmobile = $2,000. It is the variable cost.
Overhead cost = $90,000. It is a fixed cost.
Total snowmobiles = 100 units
Total cost = ($2,000 × 100 snowmobiles) + $90,000
Total cost = $290,000
We know,
Average cost per snowmobile = Total cost ÷ total quantity
Average cost per snowmobile = $290,000 ÷ 100
Average cost per snowmobile = $2,900
Consider the list of economic questions and issues below. Which are microeconomic issues, and which are macroeconomic issues? Place each item in the correct column. How much will the economy grow next year? Why do economics majors earn more than marketing majors? How does Apple decide how many iPads to produce? Why does the unemployment rate increase during a recession? What happens to prices when the government increases the money supply? Which company’s stocks should your mother buy? Should the government pass a jobs bill to stimulate the economy? Why does the price of gasoline increase during the summer? Categories Macroeconomics Drag and drop here Microeconomics Drag and drop here
Answer:
See explanation section
Explanation:
1. How much will the economy grow next year? - This is a macroeconomic issue. Macroeconomic deals with the economy as a whole. It also deals with the large-scale structure and performance of an industry, behavior, and decision making of a country. Macroeconomic issues include global or national economies. Since the question is about whether an economy grows, it is about entire country's economy.
2. Why do economics majors earn more than marketing majors? - Microeconomics issue. Generally, microeconomics issues deal with the individual level and firm-level decision-making. Since the question does not involve whole the industry or economy, it is a microeconomics issue. Instead the question is about whether the major of economics students earn more or less. It is only about an individual level topic.
3. How does Apple decide how many iPads to produce? - Microeconomics issue as we are talking about only Apple company. Since it is an individual level economics, it is micro issue.
4. Why does the unemployment rate increase during a recession? - As the question is related to a country's unemployment, it deals with the overall economy. So, it is Macroeconomic issue. Unemployment generally covers the whole economy of a country because it suggests how many people are unemployed in an economy.
5. What happens to prices when the government increases the money supply? - Macroeconomic issue as money supply is for the whole economy. Money supply is the total value of a country's economy. Therefore, money supply is a macroeconomic-related topic.
6. Which company’s stocks should your mother buy? - Microeconomics issue as your mother will not purchase all of the company's stock. It is an individual level purchase. It means only one person will purchase the stock, which is a microeconomics issue.
7. Should the government pass a jobs bill to stimulate the economy? - Again, If anything is related to the large-scale and whole economy, it will be a macroeconomic issue. Since the government should pass the bill to stimulate economy which is for the country's economy, it is a macroeconomic issue.
8. Why does the price of gasoline increase during the summer? - Only the price of gasoline and not other petroleum related products, so it is a microeconomics issue. It is not for the large-scale and industry level issue. Instead it is only a part of a petroleum corporation.
Microeconomics deals with individual actions and decisions, while macroeconomics evaluates the economy as a whole. The questions provided can be categorized into these two areas, with questions about individual earnings, business production decisions, and consumer choices being microeconomic, and those concerning economic growth, unemployment, and government policy being macroeconomic.
Economics is a vast field that can be divided into two main areas: microeconomics and macroeconomics. Microeconomics focuses on the actions and decisions of individual agents, such as households and businesses, while macroeconomics analyzes the economy as a whole, including issues like growth, unemployment, and inflation.
Reviewing the list provided, the classification is as follows:
Macroeconomic issues:
How much will the economy grow next year?
Why does the unemployment rate increase during a recession?
What happens to prices when the government increases the money supply?
Should the government pass a jobs bill to stimulate the economy?
Microeconomic issues:
Why do economics majors earn more than marketing majors?
How does Apple decide how many iPads to produce?
Which company’s stocks should your mother buy?
Why does the price of gasoline increase during the summer?
Each question reflects either the narrow focus of individual agents and choices in microeconomics or the wide lens on the collective economy in macroeconomics.
Which of the following is NOT an example of the technical support that the International Monetary Fund (IMF) provides to governments
Technical Support
Monetary fund
Loans
Halth support
Answer:
Halth support
Explanation:
IMF (International Monetary Fund), with its International Monetary Fund or more commonly known abbreviation, is an international organization that has duties such as following the global financial order, conducting audits and organizations on issues such as stock exchange, exchange rates, payment plans, as well as providing technical and financial support. To prevent the international trade from shrinking by giving credit to temporary (short-term) payment difficulties that may arise in the balance sheets of the European states; The World Bank was established to provide reconstruction of European states and to eliminate the inherent imbalances in the balance sheets by giving long-term investment loans.
The IMF mainly offers technical assistance and training in four areas:
- Monetary and financial policy (monetary policy tools, banking system supervision and restructuring, external management and operations, payment clearing systems, and central banks);
- Financial policy and management (tax and customs policy and management, budgeting, spending management, social security networking and internal and external debt management);
- Compilation, management, distribution and improvement of statistical data;
- Advice on economic and financial legislation.
The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is
Answer:
Verifiability
Explanation:
A high degree of consensus is the common result of a discussion. The consensus is the best possible result to achieve within a specific period. Verifiability is a characteristic that can help to gain a consensus using the same measurement method. The verifiability helps to ease the process of measurement, and it helps to gain effective and efficient results.
The characteristic is reliability, which refers to the consistency of a measurement.
Explanation:The characteristic that is demonstrated when a high degree of consensus can be secured among independent measurers using the same measurement methods is reliability. Reliability refers to the consistency or stability of a measurement. It is an important aspect of measurement in fields such as statistics, psychology, and social sciences.
For example, if different researchers use the same measurement scale to assess the same variable and consistently obtain similar results, it indicates a high degree of reliability. This suggests that the measurement tool is reliable and can be used to gather consistent and accurate data.
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Use your knowledge of organizational behavior to select the correct answer for the following question. Organizational behavior is the study of human behavior in organizational settings, the interface between human behavior and
Answer:
and the organization, and the organization itself.
Explanation:
Organization behavior is the study of human behavior in organization settings, the interface between human behavior and the organization, and the organization itself.
Organizational behavior involves the study of human behavior within an organization. It focuses on job satisfaction, management and leadership styles, organizational culture, teamwork, employee wellbeing, discrimination, and workplace violence. It's a branch of Industrial and Organizational Psychology, with the end goal of enhancing productivity, safety, and health.
Explanation:Organizational behavior refers to the study of human behavior within an organizational context, predominantly focusing on the interactions between individuals and the overall impact on both the individuals and the functioning of the organization. Specifically, it delves into areas such as job satisfaction, different styles of management and leadership, organizational culture, and teamwork. The framework for understanding organizational behavior originates from Industrial and Organizational psychology, focusing on areas such as the social interactions at work, performance appraisal, the creation of a healthy organizational culture, and the impact of leadership and management styles on organizational productivity.
Other areas of exploration include discrimination in hiring, workplace violence, sexual harassment, and the wellbeing of employees. Particularly, the effects of these factors on employees' motivation, commitment, and job satisfaction are assessed. Furthermore, the interplay between workers, their tools, and their physical environment (ergonomics) is an important aspect of organizational behavior.
Overall, organizational behavior aims to enhance employee job satisfaction, cultivate effective leadership and management styles, foster healthy organizational culture, and promote effective teamwork, with a keen focus on ensuring the optimization of worker's productivity, safety, and health.
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Culture makes organizations feel different from one another. Different companies, even companies in the same industry, just do things differently. You can experience this for yourself by going to two local supermarkets—one a part of a large chain and the other locally owned. Look around you and answer the followig questions.
1. Does someone offer to help you when you walk in the door?
2. Do the employees seem happier at one location compared to the other?
3. Do people wear uniforms at one place but not at the other?
Please
Answer:
1. Yes whenever I walk into the supermarket chains sales representatives asks to help.
2. Yes the employees at supermarket chains seemed to be happier.
3. Yes people do wear uniforms at supermarket chains.
Explanation:
1. Normally supermarket chains have many sales representatives and help desk staff who are ready to help us, whenever we visit there as compared to locally owned supermarkets where staff is nearly less than 10 employees.
2. Employees at supermarket chains look happier than the locally owned supermarket mainly because of their pay difference, job security and work environment satisfaction.
3. Staff do wear proper uniforms at the supermarket chain to look different and easily accessible for the customers whereas at locally owned supermarket there is rarely staff wearing uniforms.
The question relates to the differences in culture between two local supermarkets, specifically focusing on customer service, employee satisfaction, and dress code.
Explanation:The subject of this question is Business. The question asks about the differences in culture between two local supermarkets. Culture refers to the shared beliefs, values, norms, and behaviors that exist within an organization. In this case, the culture of the two supermarkets can be observed through factors such as customer service, employee satisfaction, and dress code.
1. The presence or absence of someone offering to help when a customer walks in the door can indicate a difference in the customer service culture between the two supermarkets. A large chain supermarket might have well-defined procedures in place for greeting customers, while a locally owned supermarket might have a more informal approach.
2. The happiness of employees can reflect the organizational culture at each supermarket. If employees at one location seem happier than the other, it may be a result of factors such as work environment, management style, or employee benefits.
3. The presence of employee uniforms at one place but not the other can also provide insight into the cultural differences. Employees wearing uniforms can indicate a more formal approach to the job, while a lack of uniforms may suggest a more relaxed or informal atmosphere.
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Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture in its factory. Classify the items into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead
1. salaries for assembly line inspectors
2. insurance on factory machine
3. property taxes on the factory building
4. factory repairs
5. upholstery used in manufacturing furniture
6. wages paid to assembly line workers
7. factory machinery depreciation
8. glue,nails,paint, and other small parts used in production
9. factory supervisors salaries
10. wood used in manufacturing furniture
Answer:
Explanation:
The direct material is the cost which is directly related to the manufacturing process of the product or we can say the raw material
The direct labor is the cost which is directly related to the manufacturing process of the product i.e wages paid, labors like - assembly line workers, etc
And the manufacturing overhead cost is the cost which is indirect in nature that means it dis not directly related i.e depreciation on equipment factory, property taxes etc
So, the categorization is shown below:
1. salaries for assembly line inspectors = Direct labor or manufacturing overhead
2. insurance on factory machine = manufacturing overhead
3. property taxes on the factory building = manufacturing overhead
4. factory repairs = manufacturing overhead
5. upholstery used in manufacturing furniture = direct material
6. wages paid to assembly line workers = direct labor
7. factory machinery depreciation = manufacturing overhead
8. glue,nails,paint, and other small parts used in production = manufacturing overhead
9. factory supervisors salaries = manufacturing overhead
10. wood used in manufacturing furniture = direct material
ltems from the income statement, statement of retained earnings, and balance sheet are listed below in alphabetical order. For the companies shown in each column, solve for the missing amounts.
Weil Inc. Simon Inc. Kealy Corp.
Common Stock $10 $19 $18
Dividends 0 0 2
Net Income 15 10 12
Retained Earnings, Beginning of Year 20 21 27
Retained Earnings, End of Year 35 31 _____
Total Assets 73 63 _____
Total Expenses 52 21 34
Total Liabilities 28 13 14
Total Revenues 67 31 46
To solve for missing amounts in financial statements, formulas and equations associated with each statement need to be applied.
To solve for the missing amounts in the income statement, statement of retained earnings, and balance sheet, we need to apply the formulas and equations associated with each financial statement. For example, to find the missing retained earnings for Kealy Corp, we can use the formula:
Retained Earnings, End of Year = Retained Earnings, Beginning of Year + Net Income - Dividends.
Therefore, the missing retained earnings for Kealy Corp is 31. To solve for the missing total assets, we can use the formula:
Total Assets = Total Liabilities + Stockholders' Equity. Therefore, the missing total assets for Weil Inc. is 38.
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If an insurer and insured have a dispute about whether a particular loss is covered under a policy, which authority will settle the dispute?
Answer:
The court
Explanation:
The court is the judicial arm of government that is saddled with the responsibility of interpreting the laws made by the legislative arm of government. The court by law hear cases and adjudicate among people in dispute.
where an insurer and insured have a dispute, the correct step to take is to approach a court of competent jurisdiction for interpretation. The court they say is the final hope of the common man.
All of the contributions were to qualified charitable organizations. When Kell computes the maximumallowable deduction for contributions, what percentage of contribution base income should Kelluse?A. 50%B. 30%C. 10%D. 5%
The percentage of base income that Kell should use is 10 percentage
Explanation:
There are some factors that must be considered while calculating the base income the contribution that is used for deduction the then the dividend amount that is received after deduction
The net operating loss that is carried back and then the capital loss carry back is also calculated and they are calculated in percentage and the final amount is given
Assume that Frank, a farmer in a competitive market, is maximizing profits selling 80 bushels of corn. If his total variable cost is $120, and his total fixed cost is $80, and her marginal revenue is $4, then Frank:_______
Answer:
Frank will be earning positive economic profit.
Explanation:
Data provided in the question:
Number of Units sold for maximizing profit = 80 bushels of corn
Total variable cost = $120
Total fixed cost = $80
Marginal revenue = $4
Now,
Marginal revenue is defined as the additional revenue generated by on increasing the sales by one unit.
Here,
The marginal revenue is positive
Therefore,
Frank will be earning positive economic profit.
Four Corners is an IBC company that sells delicious Navajo tacos in the Crossroads Food Court. Part of their success can be attributed to the freshly fried Indian bread that is used not only for the tacos, but also for dessert items. As demand grows the fry-bread process is becoming a bottleneck. Operations management for the company is looking at two different process options to replace the highly manual process currently being used. Option 1 (medium automation) would cost $175 to implement whereas Option 2 (high automation) would cost $350. With Option 1 the variable cost per fry bread produced would be $0.20. The variable cost for Option 2 would be $0.09 per fry bread. a. At what volume (demand) of fry breads is the cost for the two options the same? (Display your answer to two decimal places.) b. What is the total cost for either option at this break-even volume (answered in the last question)?
Answer:
For Option 1:
Cost = $175
Variable Cost = $0.20
For Option 2:
Cost = $350
Variable Cost = $0.09
A).
Volume demand would be same at
175 + x × 0.20 = 350 + x × 0.09
175 + 0.20x = 350 + 0.09x
0.20x – 0.09x = 350 – 175
X = 175/0.11
X = $1590.9
B).
Total cost at this break-even volume is
For option 1:
= $175 +1590.9 × 0.20
= $493.18
For Option 2:
= $350 + 1590.9 × 0.09
= $493.18
During December, Moulding Corporation incurred $87,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $85,000. Required: Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
The Journal entries are as follows:
(i) Manufacturing overhead A/c Dr. $87,000
To various accounts $87,000
(To record the Manufacturing Overhead costs incurred)
(ii) Work in process A/c Dr. $85,000
To Manufacturing overhead $85,000
(To record the manufacturing overhead applied to work in process)
Final answer:
The question involves preparing journal entries for the incurrence and application of manufacturing overhead costs at Moulding Corporation. Two journal entries are required: one to record the $87,000 in actual overhead costs incurred and another to apply $85,000 of these costs to Work in Process.
Explanation:
The question involves preparing journal entries for the incurrence and application of manufacturing overhead costs in a manufacturing company. In December, Moulding Corporation incurred $87,000 of actual manufacturing overhead costs and applied $85,000 of manufacturing overhead to Work in Process. The necessary journal entries to reflect these transactions are as follows:
For the incurrence of manufacturing overhead costs:
Debit Manufacturing Overhead $87,000
Credit Various Accounts $87,000
For the application of manufacturing overhead to Work in Process:
Debit Work in Process $85,000
Credit Manufacturing Overhead $85,000
The first entry records the actual overhead costs incurred, including costs such as utility bills, rent, and indirect labor. The second entry reflects the application (allocation) of these costs to the Work in Process account, based on the company's overhead allocation method. This process is crucial for accurately assigning production costs to products.
Explain how to determine the maximum amount of money a company is willing to pay for a a consultant that can be predict the future (the location of the new airport) in the Magnolia Inn example.
Final answer:
To determine the maximum amount a company is willing to pay for a consultant who can predict the future, they need to consider the potential benefits and returns they can gain from this information.
Explanation:
To determine the maximum amount of money a company is willing to pay for a consultant who can predict the future, such as the location of a new airport in the Magnolia Inn example, the company needs to consider the potential benefits and returns they can gain from this information. They would assess how much money they could make or save by having this information, such as attracting more customers, optimizing routes, or avoiding costly mistakes.
The maximum amount they would be willing to pay would be the amount that is less than or equal to the expected financial gain or cost savings they can achieve through the consultant's predictions. For example, if the company estimates that knowing the future location of the new airport will enable them to generate an additional $1 million in revenue or cost savings, they may be willing to pay up to $1 million for a consultant who can accurately predict the location.
Missing amount from an account
On August 1, the supplies account balance was $1,025. During August, supplies of $3,110 were purchased, and $1,324 of supplies were on hand as of August 31. Determine supplies expense for August.
Final answer:
The supplies expense for August is calculated by adding the purchases to the initial balance and subtracting the ending balance. The result is a supplies expense of $2,811 for the month of August.
Explanation:
To determine the supplies expense for August, we'll use the following information: the initial supplies account balance, the amount spent on purchases during the month, and the value of supplies on hand at the end of the month.
Starting supplies balance on August 1: $1,025.
Add purchases of supplies during August: $3,110.
Deduct supplies on hand as of August 31: $1,324.
The balance that remains is the supplies expense for August.
We calculate the expense as follows:
Initial Balance + Purchases - Ending Balance
$1,025 + $3,110 - $1,324
$4,135 - $1,324
Supplies Expense = $2,811
Therefore, the supplies expense for August is $2,811.
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Poole Company enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500.
2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax.
Prepare the entry to record the sales transactions and related taxes for each client.
E10-3 Poole Company
Apr. 10
Waterman Company
15
Answer:
1. Debit Cash $31,500
Credit Sales Revenue $30,000
Credit sales taxes payable $1,500.
Being sales of goods and 5% sales tax
2, Debit Cash $25,680
Credit Sales Revenue $24,000
Credit Sales taxes payable $1,680.
Being sales of goods and 7% sales tax
Explanation:
1. When sales are made in cash, the amount received or the sales value is debited to cash/bank account while the corresponding credit entries go to both sales revenue account and sales tax payable account. The tax element must be separated from the sales revenue because of its statutory nature and also to allow for easy remittance.
The following entries will be passed
1. Debit Cash $31,500
Credit Sales Revenue $30,000
Credit sales taxes payable $1,500.
Being sales of goods and 5% sales tax
2, The same entries will be passed as it is in number 1 above, but since Waterman Company does not segregate sales and sales taxes, we need to compute the net sales and sales tax payable before passing any entry.
Let the net sales = X
Gross Sales = $25,680
Gross sales = X + (7% of X)
$25,680 = X + 0.07X
$25,680 = 1.07X
Divide both sides by the coefficient of X
$25,680/1.07 = 1.07X/1.07
$24,000 = X
That is, sales net of tax is $24,000
The Tax payable is 7% of $24,000 = 1,680
Therefore the following entries will be passed
Debit Cash $25,680
Credit Sales Revenue $24,000
Credit sales taxes payable $1,680
Being sales of goods and 7% sales tax
According to the _____, people strive to justify their behavior by reducing the degree to which their beliefs or impressions are inconsistent with reality. A. cognitive theory of satisfactionB. stimulus-response theoryC. equity theoryD.theory of cognitive dissonanceE. expectancy theory
The theory of cognitive dissonance explains that people experience psychological discomfort when they hold conflicting beliefs and behaviors, and they try to reduce this discomfort by justifying their actions.
According to the theory of cognitive dissonance, people strive to justify their behavior by reducing the degree to which their beliefs or impressions are inconsistent with reality. The concept was introduced by psychologist Leon Festinger in 1957 and addresses the psychological discomfort that arises from holding two or more inconsistent attitudes, behaviors, or cognitions. For instance, if someone believes that smoking is harmful but continues to smoke, they are likely to experience cognitive dissonance due to the conflict between their belief and their behavior.
The main reason that a firm would strive to reduce the number of days sales outstanding is to increase is?
Answer:
Cash flow
Explanation:
Days sales outstanding (DSO) is the average number of days (from the day sales were made) it takes for an entity to collect cash from credit or receivable customers. It is a financial ratio that is used generally to measure
how an entity is able to manage its account receivable and improve cash flow. The formula for the calculation of DSO is:
(Accounts Receivable / Net Credit Sales) x 365
Apart from the lost of interest on deposit associated with high DSO, entities will enjoy the advantage of increase cash flow when they are able to drive down their days sales outstanding (DSO)
A company would aim to reduce the number of days sales outstanding (DSO) to improve its cash flow. The DSO represents the average time it takes for a firm to get paid after a sale has been made. The quicker a company can collect its payments, the better its cash flow.
Explanation:The primary reason a firm would work to decrease the number of days sales outstanding (DSO) is to improve cash flow. The DSO refers to the average time it takes for a company to collect payment after a sale has been made, operationalizing businesses' credit and collection policies.
A high DSO could indicate poor cash management or problematic customers difficulties in paying on time. By reducing the DSO, companies can get their money quicker, enhancing financial performance and stability through improved cash flow.
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All of the following are characteristics of today's consumer market except:
Group of answer choices.
O longer product life cycles
O shorter product life cycles
O more customized products
O product proliferation
Answer:
O longer product life cycles
Explanation:
Product made today are short-lived, their life cycle is always very short compare to the product made in the past. the product life cycle is the space of time from the time a product if first introduced into the market and the time it will no longer enjoy patronage and it will eventually disappear from the market.
The shorter product life cycles characterized by today's product is due to increase in competition and constant change in technology.
Organizational culture is: Select one:
a. amorphous and changeable.
b. a potential source of competitive advantage.
c. so difficult to analyze that most firms should choose to ignore it.
d. rarely unique to a single firm.
Answer:
The correct answer is letter "B": a potential source of competitive advantage.
Explanation:
Competitive advantages are those factors inherent of a company that makes it different from its competitors. Organizational culture is considered a competitive advantage because it is difficult to imitate from one firm to another. Organizational culture represents the set of values and beliefs that rule how people act in the organization.
Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.
Answer:
$468,844 approx.
Explanation:
Assumption: Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingly.
The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.
[tex]B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }[/tex]
wherein,
[tex]B_{0}[/tex] = price of bond as on today
i = annual coupon payments
ytm= investor's expectation of interest or market rate of interest on similar bonds
RV = Redemption value of such bonds assumed to be the face value
n = term to maturity
[tex]B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }[/tex]
[tex]B_{0}=[/tex] 12.46221 × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5
[tex]B_{0} =[/tex] $468,844 approx
This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.
Which of the following methods of employee evaluation is best used when employees are heavily involved in teamwork? Critical incident technique. 360-degree performance appraisal. Behaviorally anchored rating scales (BARS). Attribution method.
Answer:
The correct answer is letter "B": 360-degree performance appraisal.
Explanation:
A 360-degree performance appraisal is an employee-evaluation approach in which the coworkers, subordinates, supervisors, and the same employees provide a rating of their performance. This type of activity allows employees' performance to be tracked after different intervals and requires the collaboration and interaction of all the individuals possible within the organization.
Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) of 2002?
a. Made it difficult for companies to hide wrongdoing
b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
c. Forced increased oversight of companies
Answer:
b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
Explanation:
The Sarbanes-Oxley Act (SOX) of 2002 is a legislation fashioned and passed to oversee the financial reporting system for financial professional.
The purpose is to check the audit requirements in a bid to protect investors in improving the reliability and accuracy of financial statements in terms of corporate disclosures.
Considering the spirit behind the act, the right option (which is not true of the act) is that it the Act calls for decreased independence of outside auditors reviewing corporate financial statements.
Option B.
The Sarbanes-Oxley Act (SOX) of 2002 does not call for decreased independence of outside auditors reviewing corporate financial statements.
Explanation:The correct answer is b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements. This statement is not true regarding the Sarbanes-Oxley Act (SOX) of 2002. In fact, SOX was enacted to strengthen the independence and objectivity of external auditors to prevent conflicts of interest. The Act requires the audit committee of a company's board of directors to be responsible for the appointment, compensation, and oversight of the external auditors.
SOX was introduced in response to major accounting scandals, such as the Enron scandal, to restore public trust in the reliability and accuracy of financial reporting by publicly traded companies. It aimed to increase transparency, accountability, and minimize financial fraud and corporate wrongdoing.
Therefore, the correct answer is b. The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
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