Answer: $1,350,000
Explanation:
If an exchange is said to have commercial substance, it means that the company will either record the asset received at its fair value and if this is not available, it will then record the value of the asset received at the fair value of the assets that were exchanged for it.
The fair value of the assets acquired are available in this instance so the machine will be recorded at its fair value of $1,350,000.
A call option on Barry Enterprises stock has a market price of $12. The stock sells for $23 a share, and the option has an exercise price of $17.50. What is the exercise value of the option
Answer:
the exercise value of the option is $5.50
Explanation:
The computation of the exercise value of the option is given below:
= Sale value of the stock - exercise price of the option
= $23 - $17.50
= $5.50
Hence, the exercise value of the option is $5.50
Simply we deduct the exercise price of the option from the sale value of the option
And, the same should be considered
The ROI on sustainability efforts can be difficult to quantify because a. the payback period is on the same time frame. b. the payback period is on a different time frame. c. benefits from such projects are tangible. d. an excess of necessary data for accurate calculation is readily available.
Answer:
B)the payback period is on a different time frame.
Explanation:
Return on sustainability investment can be regarded as performance measure that is been utilized in evaluation of the gains which is produced due to result of corporate sustainability initiatives as regards amount of money that is invested in those initiatives.
Sustainable return on investment can be regarded as methodology used in identification as well as quantifying of environmental and societal, impacts of investment as regards a projects and initiatives.
It should be noted that The ROI on sustainability efforts can be difficult to quantify because the payback period is on a different time frame.
he manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 3,600 direct labor-hours will be required in January. The variable overhead rate is $4 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,200 per month, which includes depreciation of $3,560. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $54,040 $39,640 $14,400 $57,600
Answer:
$54,040
Explanation:
Calculation to determine what The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Using this formula
Cash disbursements for manufacturing overhead= Variable + Fixed
Let plug in the formula
Cash disbursements for manufacturing overhead= (3600*4) + (43,200 - 3,560)
Cash disbursements for manufacturing overhead= $14,400 + $39,640
Cash disbursements for manufacturing overhead= $54,040
Therefore The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:$54,040
he following transactions are for Alonzo Company.
1. On December 3, Alonzo Company sold $500,000 of merchandise to Artis Co. on account. The cost of the merchandise sold was $330,000.
2. On December 8, Artis Co. returned $25,000 of merchandise purchased on December 3. The cost of the goods was $16,000.
3. On December 13, Alonzo Company received the balance due from Artis Co.
Prepare a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Assets
=
Liabilities
+
Stockholders' Equity
Retained Earnings
Date
Cash
+
Accts.
Rec.
+
Inventory
=
Accts.
Pay.
+
Common Stock
+
Rev.
-
Exp.
Answer:
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
Dr Cost of goods sold $330,000
Cr Inventory $330,000
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
3. Dec. 13
Dr Cash $470,250
Cr Sales Discounts $4,750
Cr Accounts Receivable $475,000
Explanation:
Preparation of a tabular summary to record these transactions for Alonzo Company using a perpetual inventory system
1. Dec. 3
Dr Account Receivable $500,000
Cr Sales Revenue $500,000
(To record the sales on account)
Dr Cost of goods sold $330,000
Cr Inventory $330,000
(To record the cost of goods sold)
2. Dec. 8
Dr Sales Returns and Allowances $25,000
Cr Accounts Receivable $25,000
(To record the Sales return and allowance)
3. Dec. 13
Dr Cash $470,250
($475,000 - $4,750)
Cr Sales Discounts $4,750
[($500,000 - $25,000) * 1%]
Cr Accounts Receivable $475,000
($500,000 - $25,000)
(To record the balance due from Arte Co.)
As long as a market is contestable, then even if it has only a few sellers, the Group of answer choices threat of new entrants will prevent the prices from rising above the competitive level. producers will be able to charge prices that are high enough to produce long-run economic profits. producers will not face new competition because the barriers to entry are high. market will never be expected to come close to the competitive result.
Answer: threat of new entrants will prevent the prices from rising above the competitive level.
Explanation:
A contestable market has competition such that sellers cannot unilaterally decide to sell at a certain price. They have to sell at a competitive price that is set by the market to ensure that goods are allocated efficiently.
If the prices attempt to rise above this competitive level, new sellers will enter the market so as to make a profit which would have the effect of driving the price back down to where it was and even lower if even more sellers come in. The price is therefore maintained to ensure that this does not happen.
The four main tools of monetary policy are Group of answer choices changes in government expenditures, the reserve ratio, the federal funds rate, and the discount rate tax-rate changes, changes in government expenditures, open-market operations, and interest on excess reserves the discount rate, the reserve ratio, interest on excess reserves, and open-market operations. tax-rate changes, the discount rate, open-market operations, and the federal funds rate
Answer:
the discount rate, the reserve ratio, interest on excess reserves, and open-market operations
Explanation:
Central banks applied the monetary policy in order to manage the money supply for the economy of the country. In this the central bank increase or decrease the value of the currency and the credit made in circulation by keeping an effort on an inflation, growth & employment
The four main tools with respective to the monetary policy are represented above
Alternative or non-traditional assessments are become more popular among teachers. One type of alternative assessment is called ___________
Answer:
Alternative or non-traditional assessments are becoming increasingly popular with teachers. An alternate evaluation type is called _Task
Explanation:
A person can choose to work any amount from 0 to 52 weeks per year at a wage of $1000 per week.The government implements a welfare program in which the welfare system pays $5000 per year to people with no labor market earnings, but benefits are reduced by $0.50 for each $1 in labor market earnings that a person receives.
a. True
b. False
Answer:
False
Explanation:
A horizontal merger between two firms occurs when: __________
a. the products of the merging firms were not related in any manner before the merger.
b. one firm is a producer of products, and the other firm is a producer of services.
c. one firm is a domestic firm, and the other is a foreign company
d. the firms stood in a buyer-seller relationship before the merger.
e. the merger partners were competitors.
Answer:
e
Explanation:
A merger can be described as the absorption of one firm by another firm.
When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.
Types of merger
1. Horizontal merger : this is a type of merger that occurs between firms in the same industry. The firms are usually competitors.
Reasons for an horizontal merger
It is done to increase the market power of a firmThis type of merger is done to achieve economies of scale.An example of an horizontal merger is the merger between Mobil and Exxon in 1999.
2. Vertical merger : this is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company
Reasons for a vertical merger
Cost savingsIt provides the firm acquiring a greater control of the production process.Types of vertical merger
a. Backward integration : it is when the acquiring firm purchases a firm ahead of it in the production process. e.g. a baker purchases a pastry distributing company
b. Forward integration : it is when the acquiring firm purchases a firm that is behind it in the production process. e.g. a baker purchases a firm that supplies grains
3. Conglomerate merger : This occurs when the products of the merging firms were not related in any manner before the merger.
Altoon Manufacturing's records were partially destroyed in a flood. The company does not know what sales have been for the year, but it does know all sales were on account. Also, the beginning accounts receivable balance was $19,000, and its accounts receivable balance at the time of the flood was $25,000. From the beginning of the year until the flood, cash collections from credit customers were $158,000. Given this information, what are Altoon Manufacturing's sales for the year until the flood?
a. $164,000
b. $114,000
c. $202,000
d. $209,000
e. $189,000
Answer:
a. $164,000
Explanation:
The computation of the Altoon Manufacturing's sales for the year until the flood is given below:
= Cash collections + ending receivables - opening receivables
= $158,000 + $25,000 - $19,000
= $164,000
hence, the Altoon Manufacturing's sales for the year until the flood is $164,000
Therefore the first option is correct
Management uses a voucher system to help control and monitor cash payments. Identify the key documents that are part of a voucher system of control.
a. Invoice
b. Outstanding check
c. Purchase order
d. Voucher
Answer:
a. Invoice
c. Purchase order
d. Voucher
Explanation:
Voucher system can be regareded s method used in authorization of the the disbursement of cash. In this system, A voucher will be filled out, this filled voucher will give amount to
be paid for as well as account number to be charged. After the approval of the voucher , there will be authorization of the disbursement system so that payment can be issued.
It should be noted that the Management uses a voucher system to help control and monitor cash payments. the key documents that are part of a voucher system of control are;
✓Invoice
✓ Purchase order
✓Voucher
To assign overhead costs to each product, the company:_____.
a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
b. assigns the cost of each activity cost pool in total to one product line.
c. multiplies the overhead rate by the number of direct labor hours used on each product.
d. multiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool.
Answer:
a. multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Generally, an activity-based costing uses multiple cost pools such as manufacturing cost or customer services and multiple cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Hence, to assign overhead costs to each product, the company multiplies the activity-based overhead rates per cost driver by the number of cost drivers expected to be used per product.
In activity-based costing, the activity rate for an activity cost pool is calculated by using the following formula;
Activity rate = total overhead cost/activity for the activity cost pool.
The following standards for variable manufacturing overhead have been established for a company that makes only one product: The following data pertain to operations for the last month: What was the variable overhead efficiency/quantity variance for the month? Group of answer choices
Answer:
$17,871 U
Explanation:
Note The missing word have been attached as picture below
Variable overhead efficiency variance = (Standard hour - Actual hour) * Standard rate
Variable overhead efficiency variance = (1,480 hours - 2,775 hours) * $13.80
Variable overhead efficiency variance = 1,295 hours * $13.80
Variable overhead efficiency variance = $17,871 U
Waterway Industries was organized on January 1, 2021. During its first year, the corporation issued 2,400 shares of $50 par value preferred stock and 150,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,800; 2022, $13,100; and 2023, $28,800.
Required:
Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative.
Answer:
Preferred dividend is noncumulative which means that it will not accrue if company was unable to pay in any period.
Dividends in 2021
Preferred dividends:
= Number of preferred shares * par value * dividend percentage
= 2,400 * 50 * 5%
= $6,000
Dividends of $5,800 were declared which is not enough to cover even preferred shares so preferred shares will take all the dividends.
Preferred share dividends = $5,800
Common share dividends = $0
Dividends in 2022:
Preferred dividends = $6,000
Common dividends:
= Declared dividends - Preferred dividends
= 13,100 - 6,000
= $7,100
Dividends in 2023:
Preferred dividends = $6,000
Common dividends:
= Declared dividends - Preferred dividends
= 28,800 - 6,000
= $22,800
Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment $3,000
Machining $15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Excellent Laptops Outstanding Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round your answer to two decimal places.)
a. 0.25
b. 0.48
c. 0.75
d. 0.45
e. 0.90
Answer:
Alpha Technology
Outstanding Computer's consumption ratio for setup hours is:
b. 0.48
Explanation:
a) Data and Calculations:
Overhead activities and costs:
Setting up equipment $3,000
Machining $15,000
Excellent Outstanding
Laptops Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75
Total setup hours = 155 hours
Outstanding Computer's consumption ratio for setup hours = 75/155 * 100
= 48%
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 33,000 $ 32,000 Work in process 9,400 20,800 Finished goods 50,000 34,600 Activities and information for May Raw materials purchases (paid with cash) 171,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 12,000 Indirect labor 57,500 Other overhead costs 110,000 Sales (received in cash) 1,700,000 Predetermined overhead rate based on direct labor cost 55 % Exercise 19-7 Cost flows in a job order costing system LO P1, P2, P3, P4 Compute the following amounts for the month of May using T-accounts. Cost of direct materials used. Cost of direct labor used. Cost of goods manufactured. Cost of goods sold\.\* Gross profit. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead.
Answer:
Lock-Tite Company
Cost of direct materials used = $160,000
Cost of direct labor used = $192,500 ($250,000 - $57,500)
Cost of goods manufactured = $446,975
Cost of goods sold = $462,375
* Gross profit = $1,237,625
Overapplied or underapplied overhead = $73,625
*Do not consider any underapplied or overapplied overhead.
Explanation:
a) Data and Calculations:
Inventories April 30 May 31
Raw materials $ 33,000 $ 32,000
Work in process 9,400 20,800
Finished goods 50,000 34,600
Activities and information for May:
Raw materials purchases (paid with cash) 171,000
Factory payroll (paid with cash) 250,000
Factory overhead:
Indirect materials 12,000
Indirect labor 57,500
Other overhead costs 110,000
Sales (received in cash) 1,700,000
Predetermined overhead rate based on direct labor cost 55 %
T-accounts:
Raw materials
Date Account Titles Debit Credit
April 30 Inventory balance $ 33,000
May Cash 171,000
May Factory overhead $12,000
May Work in process 160,000
May 31 Inventory balance $ 32,000
Work in process
Date Account Titles Debit Credit
April 30 Inventory balance $ 9,400
May Raw materials 160,000
Factory payroll 192,500
Factory overhead 105,875
Finished goods $446,975
May 31 Inventory balance $ 20,800
Finished goods
Date Account Titles Debit Credit
April 30 Inventory balance $ 50,000
May Work in process 446,975
May Cost of goods sold $462,375
May 31 Inventory balance $ 34,600
Factory overhead
Date Account Titles Debit Credit
May Raw materials 12,000
Payroll 57,500
Other expenses 110,000
May Work in process $105,875
May Underapplied overhead 73,625
Sales revenue = $1,700,000
Cost of goods sold (462,375)
Gross profit $1,237,625
Judd, Inc., owns 35% of Cosby Corporation. During the calendar year 2010, Cosby had net earnings of $300,000 and paid dividends of $30,000. Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively?
a. Understate, overstate, overstate
b. Overstate, understate, understate
c. Overstate, overstate, overstate
d. Understate, understate, understate
Answer: d. Understate, understate, understate
Explanation:
If using fair value, the effects of net earnings and dividends would not be accounted for. With the equity method however, this would have done leading to the investment account, net income, and retained earnings being understated if using fair value as opposed to equity.
The Equity method would have sent 35% of the net earnings to the investment account which would have increased it. 35% of the Cosby dividends would have been sent to the net income which would have increased it as well and when net income increases, so does retained earnings.
Suppose a stock had an initial price of $72 per share, paid a dividend of $2.60 per share during the year, and had an ending share price of $59. Compute the percentage total return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What was the dividend yield and the capital gains yield
Answer:
a. −14.44%
b.Dividend yield 3.61%
Capital gains yield −18.06%
Explanation:
a.Computation for the percentage total return
R = ($59 - 72 + 2.60) / $72
R = −.1444*100
R= −14.44%
Therefore the percentage total return is −14.44%
b. Calculation to determine the dividend yield and the capital gains yield
Dividend yield = $2.60 / $72
Dividend yield = .0361*100
Dividend yield =3.61%
Capital gains yield = ($59 - 72) / $72
Capital gains yield = −.1806*100
Capital gains yield =−18.06%
Therefore the dividend yield and the capital gains yield are :
Dividend yield 3.61%
Capital gains yield −18.06%
Suppose that XYZ Company hires labor and capital in competitive input markets. Assume that labor costs $200 per day and that a unit of capital costs $150 per day. At the current level of production, labor's marginal product is 40 units of output produced per day and capital's marginal product is 30 units of output per day.
a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.
b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.
Answer:
a) Yes, the firm is minimizing the cost of current production. This is because MRPL / w = MRPC / r = 0.20.
b) The long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.
Explanation:
a) Given the information provided, is the firm minimizing the cost of current production? Explain why or why not.
The condition for the cost minimization of a firm is as follows:
MRPL / w = MRPC / r ……………………………. (1)
Where:
MRPL = Labor's marginal product = 40
w = Cost of labour = $200
MRPC = Capital's marginal product = 30
r = Cost of capital = 150
Therefore, we have:
MRPL / w = 40 / 200 = 0.20
MRPC / r = 30 / 150 = 0.20
Since MRPL / w = MRPC / r = 0.20, this implies that these conditions are consistent with equation (1). Therefore, the firm is minimizing the cost of current production.
b) If the daily wages were to increase, explain the long run adjustments that the firm would likely make in response to the wage increase.
If the daily wages were to increase, the MRPL / w in equation (1) in part a above will fall and we will have:
MRPL / w < MRPC / r …………………… (2)
Since equation (2) is no longer consistent with equation (1), the firm is NOT minimizing the cost of current production.
Therefore, the long run adjustments that the firm would likely make in response to the wage increase is to use more labor and less capital until MRPL / w = MRPC / r, which is the condition for the cost minimization of a firm.
Use the cost information below for Laurels Company to determine the manufacturing costs added during the current year:
Direct materials used $5,000
Direct labor used 7,000
Total factory overhead 5,100
Beginning work in process inventory 3,000
Ending work in process inventory 4,000
Answer:
$17,100
Explanation:
Calculation to determine the manufacturing costs added during the current year
Direct materials used $5,000
Add Direct Labor $7,000
Add Total Factory overhead $5,100
Total manufacturing $17,100
($5,000+$7,000+$5,100)
Therefore the manufacturing costs added during the current year is $17,100
Gomez argues that we need to increase the nation's output. Chang contends that our top priority should be a more equal distribution of income and output. It can be correctly stated that these two goals are:
A. essentially unrelated.
B. complementary because the realization of one will promote fulfillment of the other.
C. at least partially competing because the redistribution of income might impair incentives to work and produce.
D. complementary because a more equal distribution of income always promotes economic growth.
Answer:
I can't understand the question
Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $12,000 and the year-end balance was $16,000. The additional paid-in capital account balance increased $3,700 during the year. The retained earnings balance at the beginning of the year was $70,000 and the year-end balance was $91,000. Net income was $38,000. How much were Superior's dividend declarations during its recent year of operation
Answer: $22000
Explanation:
The amount of Superior's dividend declarations during its recent year of operation will be calculated thus:
Ending retained earnings ($91000) = Beginning retained earnings ($75000) + Net income ($38000) - Dividend declared
$91000 = $113000 - Dividend declared
Dividend declared = $113000 - $91000
Dividend declared = $22000
Therefore, Superior's dividend declarations during its recent year of operation is $22000
One restaurant was experimenting with lowering the cholesterol level of recipes by substituting different cooking oils/fats in their dishes. They chose olive oil, canola oil, and margarine. Different patrons received the recipe prepared with one of the three oils/fats and then were asked for their evaluation of texture, flavor, and overall satisfaction, intention to repurchase the entree. The experiment involved three ____.
a. dependent variables.
b. treatment levels.
c. moderating variables.
d. control groups.
e. none of the above is correct.
Answer: a. dependent variables.
Explanation:
Dependent variables are those that are expected to be impacted during the experiment as a result of a change in the independent variable. In other words, the dependent variable changes as a result of the researcher changing something else.
In this scenario there are three dependent variables which are texture, flavor, and overall satisfaction, intention to repurchase the entree.
These change based on the different cooking oils and fats used in the preparation of the dishes and so are dependent variables.
Jefferson uses the percent of sales method of estimating uncollectible receivables. Based on past history, 2% of credit sales are expected to be uncollectible. Sales for the current year are $5,550,000. Which of the following is correct?
a. Allowance for Doubtful Accounts will be credited.
b. Cash will be debited.
c. Accounts Receivable will be debited.
d. Bad Debt Expense will be credited.
Answer:
a. Allowance for Doubtful Accounts will be credited.
Explanation:
Since 2% of credit sales are expected to be UNCOLLECTIBLE in which the Sales amount for the current year are $5,550,000 which therefore means that $111,000 calculated as (.02 x $5,550,000) will be Allowance for Doubtful Accounts amount that will be credited.
Therefore ALLOWANCE FOR DOUBTFUL ACCOUNTS can be defined as the amount that tend to reduce Accout Receivable amount shown on a company or organization balance sheet.
Marginal revenue product can be calculated using the formula marginal product × output price Group of answer choices only if the marginal product of labor is constant. only if output price is constant. only if the both marginal product of labor and the output price are constant. only if the firm has market power in the labor market
Answer:
only if output price is constant.
Explanation:
Marginal revenue can be defined as the amount of money (revenue) generated from the sales of an additional unit of a product.
Marginal revenue product can be calculated using the formula; (marginal product × output price), only if output price is constant i.e the amount of money charged by a seller remains the same.
Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $ 6.55
Direct labor $ 3.50
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.90
Fixed administrative expense $ 0.60
Sales commissions $ 0.70
Variable administrative expense $ 0.60
If 4,600 units are produced, the total amount of direct manufacturing cost incurred is closest to:____.
A) $63,560.
B) $16,800.
C) $87,640.
D) $80,360.
Answer:
the direct manufacturing cost is $46,230
Explanation:
The computation of the direct manufacturing cost is given below;
= (direct material per unit + direct labor per unit) × number of units produced
= ($6.55 + $3.50) × 4,600 units
= $46,230
hence, the direct manufacturing cost is $46,230
This is the answer but the same is not provided in the given options
The same should be considered
On February 10, the corporation purchases back 2,000 shares of its own common stock for $50 per share. The entry to record the purchase would include a:____.
a. debit to Cash for $100,000.
b. credit to Treasury Stock for $100,000.
c. debit to Treasury Stock for $100,00.
d. debit to Common Stock for $100,000.
Answer:
c. debit to Treasury Stock for $100,00.
Explanation:
The journal entry to record the purchase is given below:
Treasury stock Dr (2,000 × $50) $100,000
To cash $100,000
(Being the purchase is recorded)
Here treasury stock should be debited as it decreased the stockholder equity and credited the cash as it also decreased the assets
Therefore the option c is correct
Purple Cab Company had 70,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 40,000 shares of common stock. The company had outstanding fully vested incentive stock options for 7,000 shares exercisable at $12 that had not been exercised by its executives. The average market price of common stock was $14. The company reported net income in the amount of $289,915 for 2021. What is the basic earnings per share (rounded)
Answer:
Purple Cab Company
The basic earnings per share is:
= $2.64 per share.
Explanation:
a) Data and Calculations:
January 1, 2021, Outstanding common stock shares = 70,000
April 1, 2021, Issue of new common stock shares = 40,000
December, 31, 2021, Outstanding common stock shares = 110,000
Outstanding fully vested incentive stock options = 7,000
Exercise price of options = $12
Common stock market price = $14
Reported net income = $289,915
The basic earnings per share = $ (Net income/Outstanding common stock)
= $289,915/110,000
= $2.64 per share
b) The basic earnings per share does not include the fully vested incentive stock options. It is only when calculating the diluted earnings per share that the stock options will be included.
Should we, as Americans, be concerned with the economies and standard of living of other countries?
Answer: No the economy and standard of living should be american's focus.
Explanation: If we as american's can't find a solution to our own problem's then it's unlikely that we would be able to solve another countries problems.
No, If we as Americans can't find a solution to our own problem because there exist many differences in the levels of living between various countries.
What is the standard of living?
Standards of living can concern multiple aspects of a population, including satisfaction and productivity. This stands significant because the more significant productivity and happiness exist, the more suitable an economy grows to be as a whole.
The real cause for the dissimilarities in the levels of living between various countries exists the dissimilarity in their levels of national income. The group of national income relies upon the entire volume of an exhibition in the country.
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Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:
Total direct labor-hours 85,000
Total fixed manufacturing overhead cost $306,000
Variable manufacturing overhead per direct
labor-hour $ .00
Recently, Job P951 was completed with the following characteristics:
Number of units in the job $5
Total direct labor-hours $100
Direct materials $700
Direct labor cost $8,500
The total job cost for Job P951 is closest to:_____.
a. $9.200.
b. $1,660.
c. $9,460.
d. $10,160.
Answer:
Total cost= $10,160
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (306,000/85,000) + 6
Predetermined manufacturing overhead rate= $9.6
Now, we can allocate overhead to Job P951, and calculate the total cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.6*100
Allocated MOH=$960
Total cost= 700 + 8,500 + 960
Total cost= $10,160
