Answer: $0.67 per unit
Explanation:
Find the target cost per unit:
= 168,000 / 400,000
= $0.42 per unit
If the desired profit is $0.25 and the target cost is $0.42, the market price per unit is:
= Desired profit + Target cost
= 0.25 + 0.42
= $0.67 per unit
You plan to save $6,500 per year for the next 8 years. After the last deposit, you will keep the money in the account for 6 more years. The account will earn an interest rate of 6.8 percent. How much will there be in the account 14 years from today
Answer:
$98,254.57
Explanation:
Value after 8 years
Future Value of Annuity = P * ((1 + r)^n - 1 ) / r
Future Value of Annuity = 6500 * ((1 + 6.8%)^8 - 1) / (6.8%)
Future Value of Annuity = 6500 * [(1.69266113113-1) / 0.068]
Future Value of Annuity = 6500 * 10.18619
Future Value of Annuity = $66,210.24
Value after 14 years
FV = PV * (1 + r )^n
FV = 66210.26*(1+ 6.8%)^6
FV = 66210.26 * 1.483978
FV = $98,254.57
So, the amount that will be there in the account 14 years from today is $98,254.57.
“A worksheet is a permanent accounting record and its use is required in the accounting cycle.” Do you agree? Explain. Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet?
I do not agree with the statement that "a worksheet is a permanent accounting record but I agree that its use is required in the accounting cycle.”
A worksheet does not form a part of the permanent accounting records but only acts as a device used by accountants to achieve the following purposes in each accounting cycle:
Planning the accounting work to be done in the current yearCarrying out computations and checking computationsPreparing unadjusted and adjusted trial balancesAdjustment of accountsEntering adjusted balances to the financial statements.A permanent accounting record forms part of the journal or the general ledger.
Formal financial statements must still be prepared despite the fact that all the data are in the statement columns because the worksheet is not a standardized format for preparing the financial statements for the consumption of users of financial statements. Only the professionals request worksheets as part of their going work.
Thus, a worksheet is not a part of the journal or the ledger. It is not a permanent accounting record. Moreover, the column statements in the worksheet are not acceptable formats for presenting financial statements.
Learn more about accounting worksheets (computer-based and paper-based) here: https://brainly.com/question/11440871
Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price—hourly wage rate $16.70, payroll taxes $0.60, and fringe benefits $1.40. (2) Quantity—actual production time 1.60 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)
(a) Standard direct labor rate per hour. $ ______
(b) Standard direct labor hours per gallon. hours
(c) Standard labor cost per gallon. $______
Answer:
a. Standard direct labor rate per hour = Hourly wage rate + Payroll taxes + Fringe benefits
Standard direct labor rate per hour = $16.70 + $0.60 + $1.40
Standard direct labor rate per hour = $18.70
b. Standard direct labor hours per gallon = Actual production time + Rest periods and cleanup + Setup and downtime
Standard direct labor hours per gallon = 1.60 hours + 0.30 hours + 0.20 hours
Standard direct labor hours per gallon = 2.1 hours
c. Standard labor cost per gallon = Standard direct hours per gallon * Standard direct labor rate per hour
Standard labor cost per gallon = 2.1 hours * $18.70
Standard labor cost per gallon = $39.27
The January 1, Year 1 trial balance for the Tyrell Company is found on the trial balance tab. The beginning balances are assumed. Tyrell Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1.
Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash.
July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable.
Aug. 17 Paid the amount due on the note to Locust at the maturity date.
Nov. 5 Paid the amount due on the note to NBR Bank at the maturity date.
Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2
Jan. 27 Paid the amount due on the note to Fargo Bank at the maturity date.
Required:
Prepare the 2016 journal entries related to the notes and accounts payable of Tyrell Co.
Answer:
Tyrell Company
Journal Entries:
2016
Apr. 20 Debit Inventory $40,250
Credit Accounts Payable (Locust) $40,250
To record the purchase of inventory on account, terms n/30.
May 19 Debit Accounts Payable (Locust) $40,250
Credit 10% Note Payable (Locust) $35,000
Credit Cash $5,250
To record the issuance of note payable for 90 days and cash payment.
July 8 Debit Cash $80,000
Credit 9% Note Payable (BR Bank) $80,000
To record the borrowing on note payable for a 120-day period.
Aug. 17 Debit 10% Note Payable (Locust) $35,000
Debit Interest Expense $875
Credit Cash $35,875
To record payment on account, including interest calculated as follows: ($35,000 + $35,000 * 10% * 90/360)
Nov. 5 Debit 9% Note Payable (BR Bank) $80,000
Debit Interest Expense $2,400
Credit Cash $82,400
To record payment on account, including interest calculated as follows:
($80,000 + $80,000 * 9% * 120/360)
Nov. 28 Debit Cash $42,000
Credit 8% Notes Payable (Fargo Bank) $42,000
To record the borrowing on note payable for a 60-day
Dec. 31 Debit Interest Expense $308
Credit Interest Payable $308
To accrue interest ($42,000 * 8% * 33/360).
Explanation:
a) Data and Analysis:
2016
Apr. 20 Inventory $40,250 Accounts Payable (Locust) $40,250 terms n/30.
May 19 Accounts Payable (Locust) $40,250 10% Note Payable (Locust) $35,000 Cash $5,250
July 8 Cash $80,000 9% Note Payable (BR Bank) $80,000 a 120-day
Aug. 17 10% Note Payable (Locust) $35,000 Interest Expense $875 Cash $35,875 ($35,000 + $35,000 * 10% * 90/360)
Nov. 5 9% Note Payable (BR Bank) $80,000 Interest Expense $2,400 Cash $82,400 ($80,000 + $80,000 * 9% * 120/360)
Nov. 28 Cash $42,000 8% Notes Payable (Fargo Bank) $42,000 a 60-day
Dec. 31 Interest Expense $308 ($42,000 * 8% * 33/360) Interest Payable $308
2017
Jan. 27 8% Notes Payable (Fargo Bank) $42,000 Interest Payable $308 Interest Expense $252 Cash $42,560
The _____ perspective of the Balanced Scorecard management system describes the economic consequences of actions taken in the other three perspectives.
a. customer
b. internal
c. financial
d. learning and growth
Answer: financial
Explanation:
Balanced Scorecard is referred to as the performance based metric that is used by companies for strategic management.
The four perspectives of a traditional balanced scorecard include:
1. Financial
2. Customer
3 Internal Process
4. Learning and Growth.
The financial perspective helps in improving financial results. It also describes the economic consequences of actions taken in the other three perspectives.
A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:______.
a. $520 unfavourable.
b. $400 unfavourable.
c. $120 favourable.
d. $520 favourable.
e. $400 favourable.
Answer:
d. $520 favourable.
Explanation:
Calculation to determine what The direct materials price variance is:
Using this formula
Material Price variance= AQ(SP- AP)
Where,
Actual Quantity= 5200
Standard price= $2
Actual Price= $1.9
Let plug in the formula
Material Price variance=5200($2-$1.9)
Material Price variance=5200*$0.1
Material Price variance=$520 Favourable
Therefore The direct materials price variance is:$520 Favourable
Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $15,000 during college of which $3,750 was paid for by scholarships. To finance his education, he borrowed $9,500 through a federal student loan program and borrowed another $5,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $950 of interest on the federal loans and $550 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $113,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any
Answer:
The amount of student loan interest can Zach and his spouse deduct in 2017 is $1,125
Explanation:
The amount of student loan interest can Zach and his spouse deduct in 2017 is $1,125
The amount of student loan interest can Zach and his spouse deduct in 2017 is
Education Expenses:
= $15,000 Incurred Expenses - $3,750 Scholarship
= $11,250
$11,250 / $15,000 = 75%
Interest Incurred:
= $950 Federal Loan Interest + $550 Lending Loan Interest
= $1, 500
$1,700 x 90% = $1,125
5. For the following observations, calculate the class width for a histogram.
4
8
14
10
12
9
15
17
10
6
8
11
Answer:
See Explanation
Explanation:
Given
The histogram
Required
The class width
The question is poorly formatted, as the histogram cannot be read. So, I will answer your question with the attached histogram
The class width is:
[tex]Width = Upper - Lower\ Limits[/tex]
Using the first class, as reference:
[tex]Lower\ Limits = 1[/tex]
[tex]Upper\ Limits = 4[/tex]
So, the class width is:
[tex]Width = 4 -1[/tex]
[tex]Width = 3[/tex]
A buyer of $7,000 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:_________
a. 100
b. 77
c. 1155
d. 770
e. 231
Given:
The credit terms are: [tex]\bold{\frac{2}{15} \ \ \frac{n}{45}}[/tex]When the [tex]2\%[/tex] discount with [tex]\bold{45\ days}[/tex] to paySo, the price of the merchandise is: [tex]\bold{ 7000}[/tex]Calculating the cash discount:
[tex]= \bold{7000 \times 2\%}\\\\= \bold{7000 \times \frac{2}{100}}\\\\= \bold{70\times 2}\\\\= \bold{\$140}[/tex]
Therefore the answer is "140", and all the given choices are wrong.
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1 if we want to fill the post, we'll have to........ ........ a qualified technician
2 our agent .... $500 .....the fire-damaged merchandise
3 the whole company is going to.....the south american order
4 the management and workers....each other...the strike.
5. all reports need to be carefully written and above all.........facts
6 the managing director was very satisfied; he approve of my recommendations.
account for advertise for apply to backlog of bid for blame for bring up benefit from
Answer:
1. hire
2. charges
3. get
4. support
5. mentioned
6. all
Explanation:
The company wants to hire a qualified technician for the vacant post. The management and workers both support the strike for common purpose. The reports need to be carefully written and all mentioned facts should be reported correctly.
Frank is a 60- year-old man who is well-loved in his community since he was a boy. He is someone who is outgoing, a party lover, and love to have fun hanging out with peers. Frank is confident about life. From an early age he knew exactly what he wanted to become, and now as a man, he is confident about his career and family and want to leave them a good life when he departs this life. Frank express that he is not afraid of dying but he wants them to be ok when he is gone. At work Frank is helpful to his colleagues, and even in his community he is well-known among the elderly since he is always putting on Christmas treats for them. Imagine that Frank is your colleague, and that your boss asks you to write a character reference for Frank. Using Jung’s personality theory to guide your writing, present a minimum one- page character reference in which you spell out Franks behaviour, his outlook on life, his philosophy about people and all the other important things you know about him. Ensure you point out how these different parts of Franks life fits into Jung’s theory and overall what Jung’s theoretical concept says about him.
Answer:
Jung's personality theory-
Carl Gustav Jung's research was deep-rooted in psychoanalysis and was a Swiss Psychiatrist. He was greatly influenced by Freud and had also worked with him. He had research in personality, the human psyche, and dream analysis.
Jung gave this theory based on different learning styles or attitudes. Jung distinguished the human personality on the basis of types of attitudes:
Introvert vs. Extrovert Perceiving vs. Judging Thinking vs. Feeling Intuition vs. SensationExplanation:
Introvert people are those that have their own world, own privacy, feeling exhausted while having interactions with others and obtain energized in their own company, wish to observe others before getting started, quiet, first listen, watch then reflect. Extrovert people are those that like to interact with different people, like to enjoy parties, get energized within the outer world, would like working in groups, like to socialize, able to jump in without prior guidance. Frank has an 'extroversion' personality who may be a lover of outgoing and enjoying parties with peers, likes to socialize, and generating ideas from people. Perceiving- people that don't have firm decisions and alter their decisions on getting new information. Judging- people that are firm on their decisions and don't change their decisions on any new information. Frank may be a judging sort of person, he has firm decisions. Thinking- Those people that make decisions on the idea of some reason and logic but not on the idea of emotions. Feeling- Those people that believe in relationships first and make their decisions emotionally. Frank may be a Thinking sort of one that isn't afraid to die and is prepared to go away his family to be ok. Intuition- wish to work briefly sessions, considering ideas for the longer term, not practical, always brooding about future goals, belief in theories. Sensation- specialize in this, reasonable and practical, solver. Frank is wise as he's not a daydreamer, confident about his life, and knows what to try to do in his life and for his family.A stock is expected to pay annual dividends of $1.20 and sell for $42.60 three years from today. Which of these is the correct formula for computing the value of the stock today if the discount rate is 9 percent?
A. Po = $1.20 ($1.20/1.09) + [($1.20+ $42.609)/1.09^2].
B. Po = ($1.20/1.09) + ($1.20/1.09^2) + ($42.60/1.09^2).
C. Po = ($1.20/1.09) + ($1.20/1.09^2) + [(1.20+ $42.60)/1.09^2].
D. Po = $1.20^2/1.09^2 + ($42.60/1.09^2).
Answer:
C. Po = ($1.20/1.09) + ($1.20/1.09^2) + [(1.20+ $42.60)/1.09^2].
Explanation:
Given that
The annual dividend is $1.20
And, the stock should be sold at $42.60
The no of years is 3 from today
Discount rate is 9%
So, the formula for determining the value of the stock today is the option c as the value of the stock should be equivalent to the present value of all future cash flow that are discounted at the required rate of return
Required information Skip to question [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Answer:
The complete solution is defined in the attached file please find it.
Explanation:
A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real
interest rate for the bank's profit margin is 10%.
The next year, unanticipated INFLATION has increased another 7%.
The new real interest rate is
and the
was hurt.
O 3%; lender
O 15%; lender
O 8%; borrower
O 3%; borrower
O 5%; lender
O 8%; lender
Answer:
The new real interest rate is 15%
and the lender was hurt.
O 15%; lender
Explanation:
a) Data and Calculations:
Fixed nominal interest rate = 13%
Real interest rate for the bank's profit margin = 10%
Inflation rate = 3% (13% - 10%)
Unanticipated inflation rate = 7%
Nominal interest rate = 17% (10% + 7%)
But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.
Darby Company, operating at full capacity, sold 163,500 units at a price of $87 per unit during the current year. Its income statement is as follows:
Sales $14,224,500
Cost of goods sold 5,046,000
Gross profit $9,178,500
Expenses:
Selling expenses $2,523,000
Administrative expenses 1,508,000
Total expenses 4,031,000
Income from operations $5,147,500
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 60% 40%
Selling expenses 50% 50%
Administrative expenses 30% 70%
Management is considering a plant expansion program for the following year that will permit an increase of $1,131,000 in yearly sales. The expansion will increase fixed costs by $150,800, but will not affect the relationship between sales and variable costs.
Required:
Determine the total variable costs and the total fixed costs for the current year.
Answer:
Variable costs in current year:
= Variable Cost of goods sold + Variable Selling expense + Variable Admin expenses
= (5,046,000 * 60%) + (2,523,000 * 50%) + (1,508,000 * 30%)
= 3,027,600 + 1,261,500 + 452,400
= $4,741,500
Fixed costs:
= (Total cost of goods sold + Total selling expenses + Total admin expenses) - Variable expenses
= (5,046,000 + 2,523,000 + 1,508,000) - 4,741,500
= $4,335,500
A bond has a coupon rate of 8% and matures in 10 years. What are its expected cash flows if this bonds have a principal amount of $1000 and pay interest semi-annually
Answer:
$1080
Explanation:
Calculation to determine the expected cash flows
Since the bonds have a principal amount of the amount of $1000 first step is to calculate the Cash flow CO1
CO1=$1000(.08)/2
CO1=$80/2
CO1= $40
Second step is to calculate the Frequency of PMT
Frequency of PMT= 10 years x 2 (semi-anually)
Frequency of PMT= 20
Now let determine the Cash Flow CO10
Cash Flow CO10=1000+80
Cash Flow CO10=$1080
Therefore the expected cash flows is $1080
Assume that inflation averages 3.50% over the next 20 years. If Carlos invests $25,000 in an exchange-traded fund within a tax-deferred account and that investment grows to $45,000 at the end of 20 years, will he have maintained his purchasing power
Answer: Yes, because the ETF is worth more than his original investment
Explanation:
From the information given in the question, the average inflation for next 20 years = 3.50%
Amount invested by John = $25,000
Then, the amount in 20 years after the adjustment of inflation will be:
= Amount invested (1+inflation rate)^n
= 25000(1+0.035)^20
= 25000(1.035)^20
= 25000 × 1.9898
= $49745
In this case, the answer is Yes due to the fact that the ETF is worth more than his original investment.
A job order costing system does which of the following? Select one: A. Is used to determine period costs in a service company B. Is used to determine unit costs when products are manufactured in a continuous flow process C. Allocates manufacturing costs to individual jobs to determine unit costs D. Both A and B E. None of the above
Answer: C. Allocates manufacturing costs to individual jobs to determine unit costs
Explanation:
Job order costing is used to identify the cost of producing a single units of a good. It is usually used by small to medium scale companies who produce per good or by companies that specialize in the production of a custom goods and services.
Under job order costing, manufacturing costs are allocated to individual jobs in order to determine what the individual jobs cost so that an appropriate selling price can be given.
Payroll Entries Widmer Company had gross wages of $256,000 during the week ended June 17. The amount of wages subject to social security tax was $230,400, while the amount of wages subject to federal and state unemployment taxes was $32,000. Tax rates are as follows:
Social security 6.0%
Medicare 1.5%
State unemployment 5.4%
Federal unemployment 0.8%
The total amount withheld from employee wagen for federal taxes was $51,200.
a. Journalize the entry to record the payroll for the week of June 17. June 7
b. Journalize the entry to record the payroll tax expense incurred for the week of June 17. June 7
Answer:
a.
Date Account Title Debit Credit
June 17 Salaries and Wages Expense $256,000
Social Security taxes Payable $13,824
Medicare taxes payable $3,840
Federal income tax payable $51,200
Salaries and Wages Payable $187,136
Working
Social security taxes payable = 6% * 230,400 = $13,824
Medicare taxes payable = 1.5% * 256,000 = $3,840
Salaries payable = 256,000 - 13,824 - 3,840 - 51,200 = $187,136
b.
Date Account Title Debit Credit
June 17 Payroll tax expense $19,648
FICA Taxes payable $13,824
Medicare taxes payable $3,840
State unemployment taxes payable $1,728
Federal unemployment taxes payable $ 256
Working
FICA = Social security
State unemployment taxes payable = 5.4% * 32,000 = $1,728
Federal unemployment taxes payable = 0.8% * 32,000 = $256
Payroll tax expense = 13,824 + 3,840 + 1,728 + 256 = $19,648
Final goods or services used to compute GDP refer to: the value of outstanding shares of stock of manufacturing firms. the value of outstanding shares of stock of manufacturing firms. the factors of production used to produce output. the factors of production used to produce output. goods and services at the final stage of production they have reached during the year.
Answer:
goods and services at the final stage of production they have reached during the year.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. Also, gross domestic products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Hence, the gross domestic products (GDP) of a country is computed using final goods or services, which simply are goods and services at the final stage of production they have reached during the year.
In conclusion, the goods or services that are purchased by consumers (end users) are typically used for computing final goods or services.
You made an investment of $15,000 into an account that paid you an annual interest rate of 3.8 percent for the first 8 years and 8.2 percent for the next 10 years. What was your annual rate of return over the entire 18 years
Answer: 6.22%
Explanation:
To find the annual rate of return, find the geometric mean of the returns:
= ¹⁸√ (1 + 3.8%)⁸ * (1 + 8.2%)¹⁰ - 1
= ¹⁸√ 2.9638173484126186153 - 1
= 1.0622187633434 - 1
= 6.22%
QS 8-9 Revenue and capital expenditures LO C3 Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $200 cash per truck for the cost of their annual tune-ups. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $225,000 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Answer:
1. a = Capital expenditure
b = Revenue expenditure
c = Revenue expenditure
d = Capital expenditure
2. Journal Entries
a. Debit Equipment $40,000
Credit Cash $40,000
To record a replacement on equipment that extends its useful life by four years.
d. Debit Building $225,000
Credit Cash $225,000
To record the payment for additional building completed.
Explanation:
a) Data and Analysis:
a. Equipment $40,000 Cash $40,000
to replace a motor on equipment that extends its useful life by four years.
b. Tune-ups Expenses $200 Cash $200
c. Repairs Expenses $175 Cash $175
d. Building $225,000 Cash $225,000
MC Qu. 133 Cahuilla Corporation predicts... Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units380 420 440 380 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 152 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 230 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:
Answer:
$4,280
Explanation:
Calculation to determine what The budgeted purchases of pounds of direct material B during May should be:
For the month of APRIL
Units required to be produced in April = Units required to be sold April - Opening Inventory 40% of Sales of May
Units required to be produced in April= 380 - 152 + (420 * 40%)
Units required to be produced in April=380-152+168
Units required to be produced in April= 336 units
Total units of raw material to be purchased =336 *5 pounds
Total units of raw material to be purchased= 1,680 pounds
Now for the month of MAY
First step is to calculate May Units required to be produced in May using this formula
Using this formula
Units required to be produced in May = Sales for the month - Opening Inventory + % of Sales of June
Let plug in the formula
Units required to be produced in May= 420 -(420 * 40%) + (440 * 40%)
Units required to be produced in May= 420 -168+176
Units required to be produced in May= 428
Second step is to calculate the Total units of raw material to be purchased
Total units of raw material to be purchased = 428*5 pounds
Total units of raw material to be purchased = 2,140 pounds
Now let determine the budgeted purchases of pounds of direct material B
Purchase cost for the month = $2,140 * $2.00 per pound.
Purchase cost for the month= $4,280
Therefore The budgeted purchases of pounds of direct material B during May should be:$4,280
The Assembly Department produced 1,000 units of product during March. Each unit required 1.25 standard direct labor hours. There were 1,300 actual hours used in the Assembly Department during March at an actual rate of $12 per hour. The standard direct labor rate is $12.5 per hour.
Required:
Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31.
Answer:
Debit Work in process for $15,625
Debit Direct labor time variance for $625
Credit Direct labor rate variance for $650
Credit Wage payable for $15,600
Explanation:
Before preparing the journal, the following calculations are done first:
Wage payable = Actual hours * Actual rate per hour = 1,300 * $12 = $15,600
Direct labor time variance = (Actual hours - Standard hours) * Standard direct labor rate = (1,300 - (1,000 * 1.25)) * $12.50 = $625 Unfavorable
Note: Direct labor time variance is Unfavorable because Actual hours is greater than Standard hours.
Direct labor rate variance = (Actual rate - Standard rate) * Actual hours = ($12 - $12.50) * 1,300 = -$650 Favorable
Note: Direct labor rate variance if Favorable because Actual rate is lower than the Standard rate.
Work in process = Wage payable + Absolute value of direct labor rate variance - Direct labor time variance = $15,600 + $650 - $625 = $15,625
The journal entries will now look as follows:
Date Particulars Debit ($) Credit ($)
Mar. 31 Work in process 15,625
Direct labor time variance 625
Direct labor rate variance 650
Wage payable 15,600
(To record the direct labor in the Assembly Department.)
Entries for Installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $63,000 by giving a five-year, 12% installment note to Soros Bank. The note requires annual payments of $17,773, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $7,560 and principal repayment of $10,213. Journalize the entries to record the following:
a. Issued the installment note for cash on the first day of the fiscal year.
b. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry, leave it blank.
c. Explain how the notes payable would be reported on the balance sheet at the end of the first year.
Answer:
Shiller Company
Journal Entries:
a) Jan. 1 Debit Cash $63,000
Credit 12% Note Payable (Soros Bank) $63,000
To record the issuance of the five-year, 12% installment note.
December 31: Debit Note Payable (Soros Bank) $10,213
Debit Interest Expense $7,560
Credit Cash $17,773
To record the first repayment, including interest.
c. The notes payable would be reported as Long-term Liability at $52,787.
Explanation:
a) Data and Analysis:
Jan. 1 Cash $63,000 12% Note Payable (Soros Bank) $63,000
Issuance of a five-year, 12% installment note.
December 31: Note Payable (Soros Bank) $10,213 Interest Expense $7,560 Cash $17,773
Balance of Notes Payable on December 31:
Amount of note = $63,000
Repayment = (10,213)
Balance of note = $52,787
A downside to absorption costing is: ____________
a. not including fixed manufacturing overhead in the cost of the product
b. that it is not really useful for managerial decisions
c. that it is not allowable under GAAP
d. that it is not well designed for cost-volume-profit analysis
Answer: that it is not well designed for cost-volume-profit analysis
Explanation:
Absorption costing refers to the managerial accounting method that is used for capturing all the costs that are associated with the manufacturing of a product. In this case, the direct costs and the indirect costs are all accounted for through the use of this method.
Some of the downside to absorption costing include the fact that it isn't
helpful in a scenario whereby improvement in the financial and operational efficiency is to be analysed. Also, the true reflection of the profit of a business may not be given and it is not well designed for cost-volume-profit analysis.
Therefore, the correct option is D.
According to purchasing power parity, if the domestic inflation rate is ________ than that in the foreign country, the domestic currency should be ________ than that of the foreign country.
Answer:
lower; stronger
Explanation:
Purchasing power parity (PPP) is a theory where the exchange rates of the states that lies between the currencies should be in equilibrium
Also their purchasing power should be similar in each and every of the two countries
So as per the purchasing power parity when the inflation rate of domestic one should be less as compared to the foreign country so the domestic currency should be stronger as compared to the foreign country
state and explain five (5) challenges you will encounter as a service marketer.
Explanation:
1.Not finding your market segment
2.Not knowing how to explain the product or dervice you want to sell
Some of the challenges a service marketer faces are:
It being harder to sell a service than a product. The fact that services are perishable. Services being variable which means that others can offer it. Customers being rude. Finding it difficult to find a niche.A service marketer will find it harder to sell a service than a good because services are perishable which means that they cannot be stored like goods. People might therefore not want to buy because they can only use the service once.
Services are also variable which means that several people can offer it at reduced prices which makes it difficult to make a profit. Customers can also be rude.
Some services are also applicable to certain people and finding those people can be difficult to a service marketer.
Find out more on service marketing at https://brainly.com/question/6474788.
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $8 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. Round answers to the nearest whole dollar.
a. Determine the shipping and handling activity for each product.
Glasses $
China $
Everyday dinnerware $
b. Determine the total shipping and receiving costs for the china if 3,500 boxes are shipped.
$
Answer and Explanation:
The computation is shown below:
a. For shipping and handling activity for each product is
For Glasses
= $8 × 2
= $12
For China
= $8 × 4
= $32
And, for Everyday dinner ware
= $8 × 6
= $48
b. the total shipping and receiving costs for the china is
= 3,500 × $32
= $112,000
Hence, in this way the parts could be determined
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: 20Y1, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares of common stock, $15 par. Assuming a market price per share of $25.00 for the preferred stock and $17.50 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Answer:
Pecan Theatre Inc.
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Explanation:
a) Data and Calculations:
Dividends: Cumulative Common Stock
Preferred Stock Dividends
Dividends Per share Per share
20Y1, $80,000 $80,000 $0.40 $0 $0
20Y2, $90,000 90,000 $0.40 0 $0
20Y3, $150,000 150,000 $0.40 0 $0
20Y4, $150,000 100,000 $0.40 50,000 $0.10
20Y5, $160,000 100,000 $0.40 60,000 $0.12
20Y6, $180,000 100,000 $0.40 80,000 $0.16
Average annual percentage return
Cost Market 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6
per share
Preferred stock $20.00 $25.00 2% 2% 2% 2% 2% 2%
Common stock $15.00 $17.50 0% 0% 0% 0.7% 0.8% 0.11%
Average annual percentage return = Dividend per share/Initial Cost per share
