Answer:
THE TRANSACTION DATE : December 31, 2018.
TRANSACTION: Record the trading securities at fair value.
ASSETS: - 26,400
LIABILITIES:
STAKEHOLDERS' EQUITY: -26,400
REVENUE/GAINS:
EXPENSES/LOSSES: $26,400
NET INCOME: - 26,400
THE TRANSACTION DATE : July 1, 2019.
TRANSACTION: Adjust to fair value.
ASSETS: $29,800
LIABILITIES:
STAKEHOLDERS' EQUITY: $29,800
REVENUE/GAINS: $29,800
EXPENSES/LOSSES:
NET INCOME: $29,800
RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.
Explanation:
So, anything dealing with trading securities has to do with trading in which securities are held down for a period of time and then later the securities will be sold.
So, here are the categories for the transactions listed in the question above, assuming the securities are available-for-sale.
THE TRANSACTION DATE : December 31, 2018.
TRANSACTION: Record the trading securities at fair value.
ASSETS: - 26,400
LIABILITIES:
STAKEHOLDERS' EQUITY: -26,400
REVENUE/GAINS:
EXPENSES/LOSSES: $26,400
NET INCOME: - 26,400
THE TRANSACTION DATE : July 1, 2019.
TRANSACTION: Adjust to fair value.
ASSETS: $29,800
LIABILITIES:
STAKEHOLDERS' EQUITY: $29,800
REVENUE/GAINS: $29,800
EXPENSES/LOSSES:
NET INCOME: $29,800
RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.
In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:______ (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. units in beginning inventory
b. units completed and transferred to finished goods
c. units in ending work in process inventory
d. units sold
Answer:
Option B. Units completed and transferred to finished goods
&
Option C. Units in ending work in process inventory
Explanation:
The reason is that the Equivalent units of Production that include number of units that would have been completed if all the efforts required were applied to the product completion which are the products started and finished during the period. The definition clearly states that the units considered would be the one that are shifted to finished goods from work in progress state in the current year or the one which is at work in progress state.
In the nutshell, the only units that would be considered in the assignment of the cost in the Step 4 will be either Work in Progress (Option C) or the Finished Goods that is shifted to Work in Progress (Option B).
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer: kindly check attached picture
Explanation:
Kindly check attached picture
Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information or the year is as follows:
Activity Cost Driver Amount of Driver
Materials handling $72,000 Number of moves 3,000
Engineering 165,000 Number of change orders 10,000
Other overhead 280,000 Direct labor hours 50,000
Heitger worked on four jobs in July. Data are as follows:
Job 13-43 Job 13-44 Job 13-45 Job 13-46
Beginning balance $20,300 $19,800 $2,300 $0
Direct materials $6,500 $8,900 $12,700 $9,800
Direct labor cost $18,000 $20,000 $32,000 $2,400
Number of moves 44 52 29 5
Number of change orders 30 40 20 20
Direct labor hours 900 1,000 1,600 120
By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
Required:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Answer:
Kindly check attached picture
Explanation:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Kindly check attached picture for detailed explanation
Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $64,500, of which $21,000 is from November sales. Total sales for January and February are budgeted to be $107,000 and $127,000, respectively.
What are Boone Co.'s budgeted cash receipts for February?
a) $102,130.
b) $120,000.
c) $108,370.
d) $134,880.
e) $116,090.
Answer:
Total= $113,190
Explanation:
Giving the following information:
Boone Co.'s sales, based on experience, are 20% cash and 80% credit.
Credit sales are typically collected as follows:
40% in the month of sale
50% in the month after the sale
10% in the second month.
Sales:
On account December= 64,500 - 21,000= 43,500
Cash January= 107,000
Cash February= 127,000
We need to calculate the cash collected in February:
Cash collection:
From December= 43,500*0.1= 4,350
From January= (107,000*0.8)*0.5= 42,800
Cash From February= (127,000*0.2)= 25,400
On account February= (127,000*0.8)*0.4= 40,640
Total= $113,190
Perine Company has 5,460 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,200 and 6,000 units, respectively. 5 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 26% of next month’s materials requirements.
Prepare the direct materials budget for January.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Beginning inventory= 5,460 pounds of raw materials
Production:
January= 4,200 units
February= 6,000 units
5 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6.
Management desires an ending inventory equal to 26% of next month’s materials requirements.
Direct material budget= production + desired ending inventory - beginning inventory
Direct material budget (in pounds):
Production= 4,200*5= 21,000
Desired ending inventory= (6,000*5)*0.26= 7,800
Beginning inventory= (5,460)
Total= 23,340
Total cost= 23,340*6= $140,040
Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker Stunner $304,000 $496,000 $200,000 149,800 193,300 139.400 154,200 302,700 60,600 119.984 226,816 93,200 $34.216 $75,884 $(32,600) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,000 (Shocker), and $34.000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Cawley Company. Net income $ 77500 (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.)
Answer:
Explanation:
Computation of current net income for Cawley Company
Particulars Tingler Shocker Stunner Total
Sales $304,000.00 $496,000.00 $200,000.00 $1,000,000.00
Variable expense $149,800.00 $193,300.00 $139,400.00 $482,500.00
Contribution Margin (Sales - Variable
expenses) $154,200.00 $302,700.00 $60,600.00 $517,500.00
Fixed expenses $119,984.00 $226,816.00 $93,200.00 $440,000.00
Net Income (Contribution Margin - Fixed
expenses) $34,216.00 $75,884.00 -$32,600.00 $77,500.00
Computation of net income by product line and in total for Cawley Company if the company discontinues the Stunner product line
Particulars Tingler Shocker Total
Sales $304,000.00 $496,000.00 $800,000.00
Variable expense $149,800.00 $193,300.00 $343,100.00
Contribution Margin
(Sales - Variable expenses) $154,200.00 $302,700.00 $456,900.00
Fixed expenses:
Common Fixed expenses
(296000*304000/800000)
(296000*496000/800000) $112,480.00 $183,520.00 $296,000.00
Direct fixed expenses $30,000.00 $80,000.00 $110,000.00
Total Fixed expenses $142,480.00 $263,520.00 $406,000.00
Net Income (Contribution Margin
- Fixed expenses) $11,720.00 $39,180.00 $50,900.00
Tingler Net Income $11,720.00
Shocker Net Income $39,180.00
Total Net Income $50,900.00
=============
Should Cawley eliminate the stunner produc tline?
NO
Net income would decrease from $ 77,500 to $ 50900
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 26,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $62,100 consisted of $46,000 of direct material costs and $16,100 of conversion cost.
During the month, the forming department started 320,000 units. At the end of the month, the forming department had 32,000 units in ending inventory, 90% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
Beginning work in process inventory $ 62,100
Direct materials added during the month 1,393,760
Conversion added during the month 800,900
1. Calculate the equivalent units of production for the forming department. Direct Materials Conversion
2. Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.) EUP EUP Direct Materials Conversion
Answer:
1. Direct Materials = 342,800, Conversion = 326,800
2. Direct Materials = $4.20, Conversion = $2.50, Total = $6.70
Explanation:
Calculation of equivalent units of production for the forming department.
First Calculate the Units Completed and Transferred to the Painting department.
Units Completed and Transferred to the Painting department = 26,000 + 320,000 - 32,000 = 314,000
Direct Materials
Units Completed and Transferred to the Painting department = 314,000
Units in Closing Work In Process (32,000 × 90%) = 28,800
Total Equivalent Units = 342,800
Conversion
Units Completed and Transferred to the Painting department = 314,000
Units in Closing Work In Process (32,000 × 40%) = 12,800
Total Equivalent Units = 326,800
Calculation of the costs per equivalent unit of production for the forming department.
First calculate the costs incurred during the period for both Direct Materials and Conversion.
Direct Materials
Costs in Opening Work In Process = $46,000
Costs Added during the Period = $1,393,760
Total Costs = $1,439,760
Conversion
Costs in Opening Work In Process = $16,100
Costs Added during the Period = $800,900
Total Costs = $817,000
Then calculate the cost per equivalent unit of production for both Direct Materials and Conversion.
Cost per equivalent unit = Total Costs / Total Equivalent Units
Direct Materials ($1,439,760 / 342,800) = $4.20
Conversion ($817,000 / 326,800) = $2.50
Total = $6.70
Lara’s Inc. is currently an unlevered firm with 450,000 shares of stock outstanding, with a market price of $15 a share. The company has earnings before interest and taxes of $314,000. Lara's met with his bankers, Warne Incorporated and agreed to borrow $825,000, at 5 percent. You are an ardent investor and you currently own 20,000 shares of Lara's stock. If you seek to unlevered your position; how many shares of Lara's stock will you continue to own, if you can loan out funds at 5 percent interest? Ignore taxes in your deliberations. Kindly show all workings. (15 marks)
Answer:
The answer is 17556 shares.
Explanation:
Solution
Given that:
Now
In this example of Home made leverage.
It suggests that if taxes are not available and no other costs are there, an investor can create capital structure similar to Firm.
Here, firm is proposing to borrow 825000.
The all equity firm value is given as:
= 450000 x 15 = 6750000
As taxes are not present, the value of firm will not alter, total value will remain at 6750000
So
After issue of debt, the debt ratio will be given as :
= 825000/6750000 = 12.2222%
This is the important point.
Thus
To create same capital structure, you have to sell 12.2222% of your shares and the amount received from sale of shares, purchase debt
So you have to sell = 12.2222% x 20000 = 2444.44 shares
and continue to hold = 20000 - 2444.44 = 17555.56 share
17555.56 = 17556
Therefore, the amount of share you will continue own is 17556 share.
In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust company representing the bondholders' interests B) a memorandum that must be produced to describe the details of a bond offering C) a formal contract that specifies a firm's obligations to the bondholders D) a schedule of the fees charged by an underwriting company
Answer:
C) a formal contract that specifies a firm's obligations to the bondholders.
Explanation:
In terms of public offerings of bonds, an indenture is a formal contract that specifies a firm's obligations to the bondholders. It is typically a legal and binding contract between a firm (bond issuer) and its bondholders, which provides detailed information on terms and clauses.
The indenture specifies the essential features of a bond, these includes callabilty of bonds, interest payments time, maturity date of the bond, interest calculation method etc.
Hence, in case there's a conflict between the bond issuer and the bondholders; the indenture would be the reference document to be used for conflict resolution.
Manley Co. manufactures office furniture. During the most productive month of the year, 5,000 desks were manufactured at a total cost of $87,000. In its slowest month, the company made 2,000 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:
Answer:
$24,500
Explanation:
For computing the total fixed cost first we have to determine the total fixed cost which is shown below:
Variable cost per desk = (Total high cost - total low cost) ÷ (High number of desk manufactured - low number of desk manufactured)
= ($87,000 - $49,500) ÷ (5,000 desks - 2,000 desks)
= $37,500 ÷ 3,000 desk
= $12.5
Now the fixed cost equal to
= Total high cost - (High number of desk × Variable cost per hour)
= $87,000 - (5,000 desks × $12.5)
= $87,000 - $62,500
= $24,500
You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $ 30$30 million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $2.02.0 million. Investors are willing to provide you with $2.02.0 million in initial capital in exchange for 50 %50% of the unlevered equity in the firm. a. What is the total market value of the firm without leverage? b. Suppose you borrow $1.01.0 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $1.01.0 million you need? c. What is the value of your share of the firm's equity in cases (a) and (b)? a. What is the total market value of the firm without leverage?
Answer:
a. What is the total market value of the firm without leverage?
= $2 million / 50% = $4 millionb. Suppose you borrow $1.0 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $1.0 million you need?
= 33.33%c. What is the value of your share of the firm's equity in cases (a) and (b)?
a) = $4 x 50% = $2 millionb) = $2 millionExplanation:
if successful price = $30 million
if unsuccessful price = $0
investment required = $2 million
in exchange of 50% of the firm
if you borrow $1 million, you will have to give up 33.33% of the company in exchange for the other $1 million needed
= $1 / ($4 - $1) = $1 / $3 = 33%
according to Modigliani and Miller (MM), the value of a firm is determined by its profit.
Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.
Answer:
The first interest payment:
Dr interest expense $144,000
Cr cash $144,000
The issuance of the remaining bonds"
Dr cash $400,000
Cr bonds payable $400,000
Explanation:
The first interest paid on the bonds on 30 June is $144,000 ($3,600,000*8%*6/12) which is debited to interest expense account and credited to cash account as outflow of cash from the company.
The cash received from selling the remaining bonds is par value of $400,000 which is debited to cash account and credited to bonds payable account.
Grefrath Corporation is developing direct labor standards. A particular product requires 0.71 direct labor-hours per unit. The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit. The standard direct labor-hours per unit should be: Select one: a. 0.71 b. 0.87 c. 0.67 d. 0.55
Answer:
Direct labor hour per unit= 0.87 hours
Explanation:
Giving the following information:
A particular product requires 0.71 direct labor-hours per unit.
The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit.
The total direct labor hour per unit is the time required to produce one unit.
Direct labor hour per unit= 0.71 + 0.04 + 0.12
Direct labor hour per unit= 0.87 hours
If the aggregate supply curve is flat:_________
a. contractionary fiscal or monetary policy will cause significantly less inflation.
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
c. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
d. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP.
Answer:
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
Explanation:
The Keynesian aggregate supply curve is mostly horizontal (flat) because a decline in aggregate demand will always result in a decline in aggregate production (supply). In other words, during a recession, companies are willing to supply (produce and sell) all the products and services that their consumers demand at a given price. Even if the price does not change, if aggregate demand decreases, aggregate supply will also decrease.
That is why Keynesian economists argue that governments must intervene during economic recessions.
Project managment strategy depends on which of the followings?
a. The number of days that the project manager is allowed to complete the project.
b. The number of employees one person supervises.
c. The number of levels from top to bottom in an organization.
d. The number of departments involved in a project.
Answer:
a
Explanation:
The first step in any project management strategy is to build a timeline of all the necessary steps required in execution of the project.
The following financial statements and additional information are reported
IKIBAN INC
Comparative Balance Sheets
June 30, 2017 and 2016
2017 2016
Assets
Cash $ 73,100 $ 68,000
Accounts receivable, net 101,000 75,000
Inventory 87,800 122,500
Prepaid expenses 6,800 10,200
Total current assets 268,700 275,700
Equipment 148,000 139,000
Accum. depreciation-Equipment 39,000 21,000
Total assets $377,700 $393,700
Liabilities and Equity
Accounts payable $49,000 $66,000
Wages payable 8,400 19,800
Income taxes payable 5,800 8,600
Total current liabilities 63,200 94,400
Notes payable (long term) 54,000 84,000
Total liabilities 117,200 178,400
Equity
Common stock, $5 par value 268,000 184,000
Retained earnings 7,500 31,300
Total liabilities and equity $377,700 $393,700
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $81,600 cash. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit
Answer:
The closing cash balance is $ 93,100.00
The missing financial statements and partial cash flow are attached
Explanation:
The cash flow statement is the requirement of this question and hereby attached.
A legal written promise to pay borrowed money back at a fixed rate of interest over a fixed period of time is a
The answer is Promissory Note
Explanation:
The most common document used to register a loan and guarantee this is paid back is a Promissory Note. In this, the parties involved register the amount of money that was borrowed and the borrower promises through the document to pay this amount of money before a fixed specific date. Also, promissory notes register the rate of interest that will be paid by the borrower. Besides this, a promissory note is a legal document that registers the loan and can be used as a legal instrument in case the money is not paid back.
1. A country’s national saving is 20% of its national income and it needs $4 worth of capital for producing $1 worth of goods and services on the average. The economic planners want the country to grow at the rate of 10% per annum and expect that there will be no shortage of labor in the growth process. Is this growth rate consistent with what you have learned from the Harrod Domar Model? If not, how can the planners make a plan to achieve a 10% growth rate?
Answer: No. The growth rate inconsistent with what was learned from the Harrod Domar Model.
Explanation:
The Harrod–Domar model is a model of economic growth that is used to explain the growth rate of an economy in terms of the level of capital and saving. The Harrod-Domar models assumes that a full-employment level of income exist and that there is no government interference in the economy.
Based on the question, the growth rate will be: = 20% ÷ 4= 5%.
To achieve a 10 % growth rate in the economy, the savings must either rise to 40% or capital output ratio drop to 2. For example, when growth rate rises to 40%, this will be= 40% ÷ 4 = 10%.
McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:
Oct 27 Wages and salaries expense 522 $299,384.00
Federal withholding tax payable 220 $50,895.28
Social Security tax payable 221 18,040.82
Medicare tax payable 222 4,219.22
401(k) contributions payable 223
Health Insurance payable 224 8,655.68
Savings bonds payable 227 1,912.00
Wages and salaries payable 226 208,817.61
Oct 27 Wages and salaries payable 226 208,817.61
Cash 101 208,817.61
What is the amount of the 401(k) contributions for the pay date?
Answer:pp
Explanation:
The following information relates to Wildhorse Co. for the year ended December 31, 2020: net income $1,305 million; unrealized holding loss of $11.2 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.4 million on December 31, 2019. Assuming no other changes in accumulated other comprehensive income.
Determine:
a. Other comprehensive income for 2017
b. Comprehensive income for 2017.
c. Accumulated other comprehensive income at December 31, 2017.
Answer:
a. The Other comprehensive income for 2017 is $-11.2 million
b. The Comprehensive income for 2017 is $1,293.8 million
c. The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
Explanation:
a. According to the given data the company incurred a loss of $11.2 million as an unrealized income from available-for-sale debt securities. It is the actual loss.
Therefore, other comprehensive income is (-$11.2) million.
b. In order to calculate the Comprehensive income for 2017 we would have to use the following formula:
Comprehensive income=Net income−Unrealised holding loss
=$1,305 million−$11.2million
=$1,293.8 million
Therefore, comprehensive income for 2017 is $1,293.8 million
c. In ordert to Calculate the accumulated other comprehensive income we would have to use the following formula:
Accumulated comprehensive income = Existing income−Unrealised holding loss
=$56.4million−$11.2million
=$45.2million
The Accumulated other comprehensive income at December 31, 2017 is $45.2 million
On January 1, 2012, Coronado Industries purchased for $762000, equipment having a useful life of ten years and an estimated salvage value of $45000. Coronado has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $162500. As a result of this sale, Coronado should recognize a gain of
Answer:
$45,800
Explanation:
Coronado Industries
Cost of Equipment $762,00
Accumulated Depreciation
( $762,000 - 45,000 ) /10*9 years
=$717,000/10×9 years
=71,700×9 years
=$645,300
Therefore Dec 31,2012 book value of equipment will be:
= $762,000 - $645,300
= $116,700
Equipment sold $162,500
The gain to be recognize will be
= $162,500 - $116,700
= $45,800
1 January ,2012 to 31 December,2020 will give us 9 years
Answer:
$45,800
Explanation:
Given that: the cost of the equipment = $762000
We can determine the accumulated depreciation as follows:
Accumulated depreciation= ((cost of equipment - salvage value )/useful lifetime )×Depreciation from 2012 to 2020
[tex]\mathbf{Accumulated \ depreciation= \dfrac{762,000-45,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation= \dfrac{717,000}{10}*9 years}[/tex]
[tex]\mathbf{Accumulated \ depreciation}=[/tex] $ 645,300
The Book value of equipment as on December 31,2020 = cost of equipment - accumulated depreciation
= $762,000 - $645,300
= $ 116,700
Also; the sale value = $162500
The gain to be recognize = $162,500 - $ 116,700 = $45,800
The ambitious sprinkler system project was finally over and it was hard to believe that it took only two years. The project manager leaned back in his office chair and admired his emerald green lawn and flower garden that was filling in nicely He was amused by the birds that had gathered to bathe and drink at a persistent puddle just outside his window, a harbinger of the first major repair of his own shoddy workmanship. His review of receipts for the job was less entertaining; between trips to the local home improvement store, consultations with plumbers, city inspectors, and some hired labor, he had sunk a small fortune into his lawn. The manager's:_________
A) Historical records made for interesting reading.
B) Post-project analysis would someday appear in Better Housekeeping.
C) Financial closeout would be forever hidden from his wife.
D) Project plan was a document for the ages.
Answer:
Option C
Explanation:
In simple words, the given case relates to the indiscipline if work performed by a manager. The manager was completely unaware of the fact that he had sunk a good amount of money on the project that he is admiring a lot.
From the given case, we can estimate that the manager was also shocked for the first time after reading the receipt, therefore, he will definitely hide his financial reports from his wife or it would lead into a conflict.
1. Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue; the other is red. Ink is made in batches with setup costs being $2,000 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 300 hours of labor used to make the blue ink and the 100 hours of labor used to make the red ink. Under these circumstances:_______.
a. more of the total setup cost should be assigned to the red ink than to the blue ink.
b. more of the total setup cost should be assigned to the blue ink than to the red ink.
c. the total setup cost should be allocated equally between the red and blue ink.
d. one of the answers is correct.
If the Company uses a single company wide overhead rate based on labor hours, the amount of setup cost allocated to the:_______.
a. blue ink is $4,000 and red ink is zero.
b. blue ink is $1,000 and red ink is $3,000
c. blue ink is $3,000 and red ink is $1,000.
d. blue ink is $2,000 and red ink is $2,000.
2. Which of the following is an activity-based cost driver?
A. Number of machine setups
B. Machine hours
C. Material cost
D. All of these answers are correct.
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
A. Movement from full-time to part-time workers
B. Automation
C. Workers are not as productive as they were in the past
Answer:
1) c. the total setup cost should be allocated equally between the red and blue ink.
Setup costs depend on the number of production batches, since one production batch was made for each color of ink, then the costs should be allocated equally.
2. Which of the following is an activity-based cost driver?
A. Number of machine setups
Other examples include production orders, quality inspections, maintenance orders, etc.
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
B. Automation
The main reason why so many manufacturing jobs have been lost in recent years is not because of China or Mexico (or other countries with cheap labor), it is automation. Most modern companies are replacing workers with robots.
Explanation:
setup costs $2,000 per batch
one red and one blue
Demand for blue ink is significantly stronger than for red ink
1 hour of labor per gallon of ink
300 gallons of blue produced
100 gallons of red produced
Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposit falls over time.b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit.d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.
Answer:
The options which is NOT correct is C.
Purchasing power does not increase with inrease in the rate of inflation. There is an inverse relationship between inflation and purchasing power of money.
Explanation:
Inflation refers to the overall increase in prices of goods and services and the erosion of the power of the currency to purchase those goods and services. In otherwords, when inflation happens, one requires more dollar bills to purchase same unit of goods or services.
Deflation is the opposite of inflation. It refers to the decrease in the prices of goods and services and is usually accompained by an increase in the purchasing power of the currency.
Nominal interest rate simply put is the interest payable on a loan without considering processing fees, compounding interest payable and the erosion of the value of such money.
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Tom is responsible for ordering hardware for a custom home his company is building. The contractor installing the hardware is scheduled to start in 5 working days, but the hardware is on backorder and will not arrive for another 9 working days. Fortunately, Tom has 10 days of slack; however, he shares this slack with the hardware installer. He will have to let the contactor know that the hardware will be ready 4 days later than expected and that the slack for the installer has been reduced by 4 days. Tom and the installer share 10 days of:_______
Answer:
Total slack
Explanation:
Total slack is defines as the time that tasks are delayed which will eventually affect the finishing date of a project.
Total slack can be either positive or negative. Positive slack is when delay in tasks do not affect project finish date, and negative slack are delays that affect project finish date.
Total slack is calculated as difference between smaller value of late finish and early finish.
Tom shares 4 days of his slack with the contractor.
So he has 10- 4 = 6 days slack
The total slack is 6 + 4= 10 days
In this scenario the difference between late start and early start is 9 - 5= 4 days
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Ceatric’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2008?
Answer:
Sales= $940,800
Explanation:
Giving the following information:
At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Each surfboard costs $100 and is sold for $150.
First, we need to calculate the number of units sold in the third quarter:
1stQ= 5,000
2ndQ= 5,000*1.12= 5,600
3rdQ= 5,600*1.12= 6,272
Now, the sales revenue:
Sales= 6,272*150= $940,800
Variable costs= 6,272*100= (627,200)
Gross profit= $313,600
leutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is
Answer:
$5.28 per direct labor hour
Explanation:
The computation of the assembly department factory overhead rate is shown below:
The Assembly Department's factory overhead rate = Estimated total factory overhead ÷ Total Direct Labor hours
where,
Estimated total factory overhead for Assembly Department = $71,800.
And,
Total Direct Labor hours is
= [910 units × 6 hours per unit] + [2,710 × 3 hours per unit]
= 5,460 hours + 8,130 hours
= 13,590 direct labor hour
So, the assembly department factory overhead rate is
= $71,800 ÷ 13,590 direct labor hour
= $5.28 per direct labor hour
During 2019, Lincoln Company hires 20 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $16,600 during the year. Determine the amount of Lincoln's work opportunity credit.
Answer:
$48000
Explanation:
because employees work an excess of 600 hours which is more than 400 hour and they are certified, Lincoln company can take the full credit.
first $6,000 at 40% for each worker
= (6,000 X 40 percent) x 20 workers
= 6000 x 0.40 x 20
= 48000
The amount of Lincoln's work opportunity credit is $48000
The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.
Answer:
Results are below.
Explanation:
Giving the following information:
Production:
July= 650 units
August= 710 units
September= 570 units
Each unit produced requires one hour of direct labor.
he direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September.
We need to prepare the direct labor budget:
July:
Direct labor= (650*1)*16= $10,400
August:
Direct labor= (710*1)*16= $11,360
September:
Direct labor= (570*1)*16.75= $9,547.5
The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts.
a. Received $50,000 cash from owners in exchange for common stock.
b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.
c. Bought $900 of supplies on account.
d. Purchased $10,000 of equipment, paying cash.
e. Paid $500 on account for supplies purchased in transaction (c).
Required:
1. Determine the T-account balances.
2. Using the information in the transactions, prepare a classified balance sheet for Lantana Company.
(List long-term assets in alphabetical order)
Answer:
1. T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$400
Equipment
$10,000
2. A classified balance sheet for Lantana Company
Non - Current Assets
Land $20,000
Equipment $10,000
Total Non - Current Assets $30,000
Current Assets
Supplies $900
Cash $34,500
Total Current Assets $35,400
Total Assets $65,400
Equity and Liabilities
Equity
Common stock $50,000
Total Equity $50,000
Current Liabilities
Trade Payable $400
Total Current Liabilities $400
Non - Current Liabilities
Note Payable $15,000
Total Non - Current Liabilities $15,000
Total Equity and Liabilities $65,400
Explanation:
T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$50,000 - $5,000 - $10,000 - $500 = $34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$900 - $500 = $400
Equipment
$10,000
The T-accounts and the classified balance sheets are the financial statements or the annual reports of the company that provides information regarding the health and wealth of the firm or the corporate.
The T-account balances and the classified balance sheet have been attached below.
To know more about the T account balances and the classified balance sheet, refer to the link below:
https://brainly.com/question/14695345
