Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: Job 86 Job 87 Direct materials $4,800 $1,600 Direct labor 1,200 3,000 Applied overhead 888 2,220 Balance, March 1 $6,888 $6,820 During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were added to the four jobs during the month of March: Job 86 Job 87 Job 88 Job 89 Direct materials $3,000 $7,000 $2,100 $1,500 Direct labor 800 6,000 900 500 At the end of March, Jobs 86, 87, and 89 were completed. Only Job 87 was sold. On March 1, the balance in Finished Goods was zero.
Answers
Answer and Explanation:
1. The computation of overhead rate based on direct labor cost is shown below:-
Overhead rate = Overhead applied × 100 ÷ Direct labor cost
= 888 × 100 ÷ 1,200
= 74%
2. The Preparation of job-order cost sheet for the four jobs is shown below:
Particulars Job 86 Job 87 Job 88 Job 89
Beginning balance $6,888 $6,820
Direct materials $3,000 $7,000 $2,100 $1,500
Direct labor $800 $6,000 $900 $500
Applied overhead
is 74% of direct labor $592 $4,440 $666 $370
Total $11,280 $24,260 $3,666 $2,370
3. The computation of ending balances of Work in Process and Finished Goods is shown below:-
Work in process of Job 88 = $3,666
Finished goods = Total of Job 86 + Total of Job 89
= $11,280 + $2,370
= $13,650
4. The computation of the Cost of Goods Sold for March is shown below:-
Cost of goods sold is
= Job 87
= $24,260
Related Questions
Quantas Industries sold $300,000 of consumer electronics during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On June 20, a customer was given $183 cash under terms of the warranty. Journalize the entry to record (a) the estimated warranty expense on January 31 for January sales on page 10 of the journal and (b) the June 20 warranty work on page 14 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
Answers
Answer:
January 31.
Warranty Expense $18,000 (debit)
Warranty Provision $18,000 (credit)
June 20.
Warranty Provision $183 (debit)
Cash $183 (credit)
Explanation:
There is no option on the customer to take the warranty or not. There this type of Warranty is known as an Assurance Type Warranty.
Assurance type warranties are accounted in terms of the Provision Standards as follows ;
Entry when the warranty is granted
Warranty Expense $18,000 (debit)
Warranty Provision $18,000 (credit)
Being recognition of warranty cost and provision.
Warranty Expense $300,000 × 6% = $18,000
When the Warranty Claim is subsequently received.
Warranty Provision $183 (debit)
Cash $183 (credit)
Being utilization of Provision when the warranty claim is received.
The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $12.50, all of which was reinvested in the company. The firm’s expected ROE for the next five years is 21% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting in year 6, the firm’s ROE on new investments is expected to fall to 16%, and the company is expected to start paying out 45% of its earnings in cash dividends, which it will continue to do forever after. DEQS’s market capitalization rate is 20% per year.A. What is your estimate of DEQS’s intrinsic value per share?B. Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year?C. What do you expect to happen to price in the following year?D. What is your estimate of DEQS’s intrinsic value per share if you expected DEQS to pay out only 25% of earnings starting in year 6?
Answers
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed explanation
Using a LIFO perpetual cost flow, calculate the value of the ending inventory and the cost of goods sold for the month of November of Beamer Company using the data below.
Nov 1 Purchased 600 units $80 each
Nov 4 Sold 200 units
Nov 11 Purchased 350 units $82 each
Nov 12 Sold 275 units
Nov 22 Purchased 175 units $84 each
Nov 23 Sold 155 units
Calculate the following:
Inventory valuation at the end of November
Answers
Answer:
Ending inventory= $39,830
Explanation:
Giving the following information:
Company using the data below.
Nov 1 Purchased 600 units $80 each
Nov 4 Sold 200 units
Nov 11 Purchased 350 units $82 each
Nov 12 Sold 275 units
Nov 22 Purchased 175 units $84 each
Nov 23 Sold 155 units
Under the LIFO (last-in, first-out) method, the ending inventory cost is calculated using the cost of the firsts units incorporated. Using the perpetual method, the company identifies the cost with each specific unit.
Ending inventory in units= total units - units sold= 495 units
COGS:
Nov 4= 200*80= 16,000
Nov 12= 275*82= 22,550
Nov 23= 155*84= 13,020
Ending inventory= 400*80 + 75*82 + 20*84= $39,830
The River Falls Company has two divisions. The Cutting Division prepares timber at its sawmills. The Coating Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20X5. During the year, the Cutting Division prepared 60,000 cords of wood at a cost of $720,000. All the lumber was transferred to the Coating Division, where additional operating costs of $5 per cord were incurred. The 600,000 boardfeet of finished wood were sold for $2,500,000.
Required:
a. Determine the operating income for each division if the transfer price from Cutting to Assembly is at cost - $11 a cord.
b. Determine the operating income for each division if the transfer price is $9 per cord.
c. Since the Cutting Division sells all of its wood internally to the Assembly Division, does the manager care what price is selected? Why? Should the Cutting Division be a cost center or a profit center under the circumstances?
Answers
Answer:
a) Operating income at the cost of $11 is $660,000
b) Operating income at the cost of $9 is $540,000
c) Yes, the manager care what price is selected. The Cutting Division be a cost center.
Explanation:
a) Cutting Assembly
Revenue $660,000 $2,500,000
Cost of services
Incurred $660,000 $360,000
Transferred-in $0 $660,000
Total $660,000 $1,020,000
Operating income $0 $1,480,000
Operating income at the cost of $11 = 60,000 cords × $11 = $660,000
b) Cutting Assembly
Revenue $540,000 $2,500,000
Cost of services
Incurred $660000 $360,000
Transferred-in $0 $540,000
Total $660000 $900,000
Operating income ($120,000) $1,600,000
Operating income at the cost of $9 = 60,000 cords × $9 = $540,000
Asonia Co. will pay a dividend of $5.30, $9.40, $12.25, and $14.25 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 9.8 percent on the company's stock, what is the stock price?
Answers
Answer:
$31.68
Explanation:
The computation of the stock price is shown below:
= Dividend for year 1 ÷ (1 + required return)^number of years + Dividend for year 2 ÷ (1 + required return)^ number of years + Dividend for year 3 ÷ (1 + required return)^ number of years + Dividend for year 4 ÷ (1 + required return)^ number of years
= $5.30 ÷ (1 + 9.8%) + $9.40 ÷ (1 + 9.8%)^2 + $12.25 ÷ (1 + 9.8%)^3 + $14.25 ÷ (1 + 9.8%)^4
= 4.82695810564663 + 7.79692170895252 + 9.25399090557962 + 9.80404969365523
= 31.681920413834
= $31.68
We have learned about four types of adjustments: (1) prepaid expenses, (2) unearned revenues, (3) accrued revenues, and (4) accrued expenses. With those concepts in mind, review the following scenario, As the book-keeper for your company you are required to create quarterly financial statements (Income Statement, Statement of Owner's Equity Balance Sheet and Statement of Cash Flows) in order to report on the financial activities of the company for the quarter (three months). It is now March 29th, and in preparation for creating the 1st quarter's financial statements (as of 3/31), you have called a meeting with the Dept. Managers for Accounts Receivable and Accounts Payable to confirm deadlines that have to be met for recording March-related transactions. As the meeting starts the owner walks in - she sits quietly as you explain the deadlines, but as soon as you have finished she says "Well, for this quarter, if we have not paid March invoices by March 31, there is no need to record them in March. We can record/expense those invoices when we pay them in April or May." Required:
1. Do you agree with the owner, or, do you feel that an adjusting entry is necessary in the situation described? If so - which type of adjusting entry is needed?
2. Why is the adjustment necessary? (Refer to concepts in the chapter) In your post:
a) discuss the impact (understated or overstated) on the accounts affected if the adjustment is not made, and
b) explain how the adjustment affects the appropriate financial statements
3, Assume one of the unpaid invoices is for $2,000 in Advertising. Show the type of adjusting entry you would create.
Answers
Answer:
1. Do you agree with the owner, or, do you feel that an adjusting entry is necessary in the situation described? If so - which type of adjusting entry is needed?
She is wrong, because the accrual principle states that both revenues and expenses must be recognized during the periods that they actually occur, not when they are collected or paid for.2. Why is the adjustment necessary? (Refer to concepts in the chapter) In your post:
If you do not record accrued expenses, then you are understating first quarter expenses and overstating second quarter expenses.a) discuss the impact (understated or overstated) on the accounts affected if the adjustment is not made, and
March invoices represent costs and expenses associated to the activities carried out during March, and not recording them properly will result in net income being over stated during March (first quarter)and under stated during the second quarter.b) explain how the adjustment affects the appropriate financial statements
First quarter's net income will be over stated while second quarter's net income will be under stated.3, Assume one of the unpaid invoices is for $2,000 in Advertising. Show the type of adjusting entry you would create.
Dr Advertising expense 2,000
Cr Accounts payable 2,000
Explanation:
Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or HoursStandard Price or Rate Direct labor 0.40hours$29.00per hour Variable overhead 0.40hours$4.90per hour In August the company produced 8,800 units using 3,700 direct labor-hours. The actual variable overhead cost was $17,020. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for August is:
Answers
Answer: -882
Explanation:
A variable overhead efficiency variance is simply defined as the actual labor hours less the budgeted labor hours which is then multiplied by the hourly rate for the standard variable overhead. It should be note that the standard variable overhead consist of the indirect labor costs like the security and the shop foreman.
Bases on the explanation above, the variable overhead efficiency will be:
= [(8800 × 0.40) - 3700] × 4.90
= -882
This is an unfavorable variance which means that the number of actual hours worked is more than the budgeted hours.
Lenders charge a loan origination fee to A. cover the expenses involved in generating the loan B. guard against charges of usury C. guard against losses in the event of a short sale D. cover the losses involved if the borrower repays the loan before the end of the loan term.
Answers
Answer:
A
Explanation:
An origination fee is the fee charged to cover expenses involved with processing a loan application.
Describe at least three exchange rate factors that are likely to attract foreign investors to a country's currency. Explain why these factors are attractive to foreign investors.
Answers
Answer: 1. High Interest
2. Low Government Debt
3. Political Stability
Explanation:
Foreign Investors are Investors and investors always like to invest where there are prospects of growth and profit.
High Interest Rates give them the opportunity to invest their money in a currency that will give them a great return because a country where there are high interest rates imparts this on its currency which causes it to rise in value thereby giving currency holders a capital gain.
Another factor is Government Debt. A country with high Government debt will typically be unable to raise funds through the bond market easily. This shortage of funds can lead to inflation which devalues currency causing foreign currency investors to flee.
Finally there is the Political Factor (other factors exist). A stable country politically stands a better chance of maintaining a higher value currency that one with lower political stability. This is because political Stability attracts investors and as more investments come into a country, this reflects in its currency by making it stronger which will attract foreign currency investors.
A company reported net income of $6 million. During the year the average number of common shares outstanding was 3 million. The price of a share of common stock at the end of the year was $5. There were 400,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is noncumulative. The Price/Earnings Ratio is approximately:
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
Answers
Answer:
The correct answer is $2.5, but it is not included in the option.
Explanation:
Earning per share (EPS) = Net income / Average number of common shares outstanding = $6,000,000 / 3,000,000 = $2 per share
Common stock market price per share (MPS) = $5
Price/Earnings Ratio = MPS / EPS = $5 / $2 = $2.5
The correct answer is $2.5.
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (and source of cash flow for interest and principal payments) consisted of future royalties from classic songs such as "What's Going On," and "I Heard It Though The Grapevine." The bond issue had a $1,000 face value and a coupon rate of 5%. If the bond matures in 26 years, pays semiannual coupons, and the yield to maturity is 6%, what will the bond sell for
Answers
Answer:
The bond will sell for the amount of $869.17
Explanation:
According to the given data coupon amount = 50/2 = 25
Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:
selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)
selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150
selling price of the bond= $869.17
The bond will sell for the amount of $869.17
The bond will sell for $869.17, if the bond matures in 26 years, pays semiannual coupons, and the yield to maturity is 6%.
What is the present value of annuity factor?PVIFA is an abbreviation of the Present Value Interest Factor of Annuity. It is an idea based on the time value of money; the money you have now is worth more than the same amount of money a few years from now.
As per the given information:
[tex]\rm\,By \;the \; amount \;of \;coupon \;data \; provided \; = \dfrac{50}{2} = \$25[/tex]
Therefore, in order to calculate the selling price of a bond we will need to do the following calculations:
[tex]\rm\,Bond \; sale \;price = 25 \times PVIFA (3\%, 52) + 1,000 \times PVIF (3\%, 52)\\\\Bond sale price = 25 \times 26.1662 + 1,000 \times 0.2150\\\\ Bond sale price = \$869.17[/tex]
Hence, the bond will sell for $869.17
To learn more about present value of annuity factor, refer:
https://brainly.com/question/25792915
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.6 percent, a YTM of 7.6 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.6 percent, a YTM of 9.6 percent, and also has 13 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000.
Required:
a. What are the prices of these bonds today?
b. What do you expect the prices of these bonds to be in one year?
c. What do you expect the prices of these bonds to be in three years?
d. What do you expect the prices of these bonds to be in eight years?
e. What do you expect the prices of these bonds to be in 12 years?
f. What do you expect the prices of these bonds to be in 13 years?
Answers
Answer:Hi
Explanation:Hi
Consider two ways to protect your car from theft. The Club is a conspicuous steering wheel lock that makes it difficult for a thief to take a car. Lojack is a secret tracking system that makes it easier for police to catch a thief who steals a car on which it is installed.
If a car thief encounters a car with the Club and a car without it, the car with the Club imposes a________externality on the car without the Club. A policy implication of this result is a______those who use the Club.
If a car thief encounters two cars without the Club, but the car thief fears a Lojack system might be installed in one of the cars, the car with the Lojack system imposes a_______externality on the other car. A policy implication of this result is a_______those who use the Lojack technology.
Answers
Answer and Explanation:
According to the given situation,
The car with the club enforces on the car without the club a negative externality if a robber experiences a car with the club and a car without them. A policy implication of that result is a tax on those who use the club.
If a car thief reaches two cars even without club, however the car thief is afraid to build a lojack system in one of cars, the car with the Lojakc system forces on the other car positive externality. A resulting policy consequence is a subsidy for those who use the Lojack system.
Problem 15-1A Production costs computed and recorded; reports prepared LO C2, P1, P2, P3, P4
[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $510,000, and factory payroll cost in April is $365,000. Overhead costs incurred in April are: indirect materials, $53,000; indirect labor, $27,000; factory rent, $32,000; factory utilities, $20,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308
Balances on March 31
Direct materials $ 25,000 $ 40,000
Direct labor 25,000 18,000
Applied overhead 12,500 9,000
Costs during April
Direct materials 131,000 205,000 $105,000
Direct labor 105,000 152,000 101,000
Applied overhead ? ? ?
Status on April 30
Finished (sold) Finished (unsold)
In process
Problem 15-1A Part 1
Required:
Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31).
Answers
Answer:
Job No 306 351,000 Cost Of Goods Sold
Job No 307 500,000 Finished Goods Inventory
Job No 308 256,500 Work In Process Inventory
Explanation:
We add the March balance and the April balances for each of the jobs to get the desired results.
Marcelino Co
Job No 306
March
Direct Materials 25000
Direct Labor 25000
Applied Overhead 12500
Opening Work In Process 62500
April
Direct Materials 131000
Direct Labor 105000
Applied Overhead (50% of 105,000) 52,500
Total Costs Added In April 288500
Total Costs 351,000
Status on April 30 Finished & Sold
Included in Cost Of Goods Sold
Job No 307
March
Direct Materials 40000
Direct Labor 18000
Applied Overhead 9000
Opening Work In Process 67,000
April
Direct Materials 205000
Direct Labor 152000
Applied Overhead (50% of 152,000) 76,000
Total Costs Added In April 433,000
Total Costs 500,000
Status on April 30 Finished & Unsold
Included in Finished Goods Inventory
Job No 308
March
Direct Materials ------
Direct Labor --------
Applied Overhead -------
Opening Work In Process ------
April
Direct Materials 105000
Direct Labor 101000
Applied Overhead (50% of 101,000) 50,500
Total Costs Added In April 256,500
Total Costs 256,500
Status on April 30 In Process
Included in Work In Process Inventory
On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, and on November 19, it issued for cash 50,000 shares of preferred stock, $75 par at $80. a. Journalize the entries for October 31 and November 19. For a compound transaction, if an amount box does not require an entry, leave it blank.
Answers
Answer and Explanation:
The journal entries are shown below:
On Oct 31
Cash (400,000 × $18) $7,200,000
To Common stock (400,000 × $10) $4,000,000
To Paid in capital in excess of par value - common stock $3,200,000
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
On Nov 19
Cash (50,000 × $80) $4,000,000
To Preferred stock (50,000 × $75) $3,750,000
To Paid in capital in excess of par value - Preferred stock $250,000
(Being the issuance of the preferred stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and paid in capital as it also increased the stockholder equity
Consider a low-wage labor market. Workers in this market are not presently covered by the minimum wage, but the government is considering implementing such legislation. If implemented, this law would require employers in the market to pay workers a $5 hourly wage. Suppose all workers in the market are equally productive, the current market clearing wage rate is $4 per hour, and that at this market clearing wage there are 600 employed workers. Further suppose that under the minimum wage legislation, only 500 workers would be employed and 300 workers would be unemployed. Finally, assume that the market demand and supply curves are linear and that the market reservation wage, the lowest wage at which any worker in the market would be willing to work, is $2. Compute the dollar value of the impact of the policy on employers, workers, and society as a whole.
Answers
Answer:
the total impact of minimum wage on employers, workers, and society as a whole is -$150
Explanation:
From the information given ;
As a result of the increase in the wage they must pay; employers will lose surplus that relates to the area of a trapezoid resulting from the reduction in the size of the surplus triangle according to the demand curve of labor; In short, since the trapezoid is a parallelogram ; it could be thought to be as a rectangle with sides equal to the wage increase of ( $5 - $4) = $1
Also; the new employment level is $500
The triangle with a height equal to the wage increase is $1 with a base equal to the reduction in the number of workers demanded (600 - 500 = 100)
Summing up all two areas together;we get:
= (1)(500) + (1) (100/2)
= 500 + 50
= $550
The worker who remain in the market each gain a surplus equal to the amount of $1 increase in the wage that they receive.
Therefore; the total increase in surplus = (1)(500) = $500
The 100 workers who lose their job will definitely lose surplus.
If these worker are evenly distributed along the market supply curve between the market reservation wage of $2 and market equilibrium wage of $4.
Their average loss of surplus can be computed as:
= 1/2($4 - $2)
=0.5($2)
= $1
Thus; the total loss of surplus is :
= $100× $1
= $100
Thus , the total impact of minimum wage on employers, workers, and society as a whole is :
= $550 -$ 100 - $550
= -$150
Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,750 1,840 2 2,910 1,920 3 3,060 2,000 4 3,170 2,020 5 3,250 2,050 6 3,220 2,030 7 3,160 2,010 8 3,000 1,990 9 2,770 1,850 10 2,370 1,250 11 2,380 1,450 12 2,600 1,740 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
Answers
Answer:
Month Maintenance Machine Equation MAPE
costs hours error (Abs.)
1 $2,750 1,840 $269 9.78%
2 $2,910 1,920 $197 6.77%
3 $3,060 2,000 $135 4.41%
4 $3,170 2,020 $47 1.48%
5 $3,250 2,050 0 0%
6 $3,220 2,030 $8 0.25%
7 $3,160 2,010 $46 1.46%
8 $3,000 1,990 $184 6.13%
9 $2,770 1,850 $260 9.39%
10 $2,370 1,250 0 0%
11 $2,380 1,450 $210 8.82%
12 $2,600 1,740 $309 11.88%
60.37%
variable cost per unit = (highest activity cost - lowest activity cost) / (highest activity units - lowest activity units) = ($3,250 - $2,370) / (2,050 - 1,250) = $880 / 800 units = $1.10 per unit
fixed cost = $3,250 – ($1.10 x 2,050) = $995
Cost model = $995 + $1.10X
2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
MAPE = 60.37% / 12 = 5.03%
The Blossom Hotel opened for business on May 1, 2022. Here is its trial balance before adjustment on May 31. BLOSSOM HOTEL Trial Balance May 31, 2022 Debit Credit Cash $ 2,513 Supplies 2,600 Prepaid Insurance 1,800 Land 15,013 Buildings 67,600 Equipment 16,800 Accounts Payable $ 4,713 Unearned Rent Revenue 3,300 Mortgage Payable 33,600 Common Stock 60,013 Rent Revenue 9,000 Salaries and Wages Expense 3,000 Utilities Expense 800 Advertising Expense 500 $110,626 $110,626 Other data: 1. Insurance expires at the rate of $450 per month. 2. A count of supplies shows $1,070 of unused supplies on May 31. 3. (a) Annual depreciation is $2,760 on the building. (b) Annual depreciation is $2,160 on equipment. 4. The mortgage interest rate is 5%. (The mortgage was taken out on May 1.) 5. Unearned rent of $2,620 has been earned. 6. Salaries of $720 are accrued and unpaid at May 31.
Answers
Answer:
BLOSSOM HOTEL
Trial Balance
May 31, 2022
Debit Credit
Cash $2,513
Supplies $2,600
Prepaid Insurance $1,800
Land $15,013
Buildings $67,600
Equipment $16,800
Accounts Payable $4,713
Unearned Rent Revenue $3,300
Mortgage Payable $33,600
Common Stock $60,013
Retained earnings $4,700
$106,326 $106,326
Rent Revenue $9,000
Salaries and Wages Expense $3,000
Utilities Expense $800
Advertising Expense $500
net income $4,700
adjusting entries:
Dr Insurance expense 450
Cr Prepaid insurance 450
Dr Supplies expense 1,530
Cr Supplies 1,530
Dr Depreciation expense 4,920
Cr Accumulated depreciation building 2,760
Cr Accumulated depreciation equipment 2,160
Dr Interest expense 140
Cr Interest payable 140
Dr Unearned revenue 2,620
Cr Rent revenue 2,620
Dr Wages expense 720
Cr Wages payable 720
BLOSSOM HOTEL
Income Statement
May 31, 2022
Rent Revenue $11,620
Salaries and Wages Expense $3,720
Utilities Expense $800
Supplies expense $1,530
Depreciation expense $4,920
Advertising Expense $500
Insurance expense $450
Interest expense $140
net loss -$440
BLOSSOM HOTEL
Balance Sheet
May 31, 2022
Debit Credit
Cash $2,513
Supplies $1,070
Prepaid Insurance $1,350
Land $15,013
Buildings $64,840
Equipment $14,640
Accounts Payable $4,713
Interest payable $140
Wages payable $720
Unearned Rent Revenue $680
Mortgage Payable $33,600
Common Stock $60,013
Retained earnings ($440)
$99,426 $99,426
Multiple Choice Question 72 Sheffield Corp. produces a product that requires 2.1 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.2 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.1 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.2 hours and 0.1 hours, respectively. The standard direct materials quantity per unit is
Answers
Answer:
Standard quantity= 2.4 pounds
Explanation:
Giving the following information:
Sheffield Corp. produces a product that requires 2.1 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.2 pounds and 0.1 pounds, respectively.
To calculate the standard quantity, we need to add the allowance for waste and spoilage.
Standard quantity= 2.1 + 0.2 + 0.1
Standard quantity= 2.4 pounds
Evaluate the following investment options by comparing their risk and liquidity: buying a franchise real estate (buying property) mutual fund Which of the three investment alternatives is the best for you? Explain the reasons for your choice.
Answers
Answer:
Buying a franchise: For me, this is the riskiest investment, because the success of the business depends on the product or service it sells. If there is no demand for the product or service, the business will go under. This investment is also highly illiquid—in addition, finding someone willing to buy a business is difficult.
Mutual fund: This is the least risky of the three investment options. It is highly liquid compared to buying a franchise or real estate. Mutual fund investors can easily cash in their investments by selling the units they hold in a fund at the current market price.
Real estate: Real estate is a risky investment. First, property prices can fall in a depressed housing market. Second, real estate properties are illiquid. They can’t be sold quickly for a good price, especially in times of recession in the housing market or in the overall economy.
A mutual fund is the best of the three investment options for me, for the following reasons:
I can invest small amounts of money regularly and get higher returns on the investment than I would from a savings account. Also, this is a highly liquid investment. In case of a financial emergency, I can quickly sell my mutual fund units at their current market price.
Real estate is currently both a risky and illiquid investment, because of poor market conditions.
Buying a franchise is not a good option for me, because I don’t plan to go into business. In any case, I don’t have the money to make this investment.
Explanation: PLATO
Buying a franchise: For me, this is the riskiest investment, because the success of the business depends on the product or service it sells. If there is no demand for the product or service, the business will go under. This investment is also highly illiquid in addition to someone willing to buy a business is difficult. Mutual fund is the least risky of the three investment options. It is highly liquid compared to buying a franchise or real estate. Mutual fund investors can easily cash in their Investments by selling the units they hold in a fund at the current market price. Real estate: Real estate is a risky investment. First, property prices can fall in a depressed housing market. Second, real estate properties are illiquid. They can't be sold quickly for a good price, especially in times of recession in the housing market or in the overall economy. A mutual fund is the best of the three investment options for me, for the following reasons: I can invest small amounts of money regularly and get higher returns on the investment than I would from a savings account. Also, this is a highly liquid investment. In case of a financial emergency, I can quickly sell my mutual fund units at their current market price. Real estate is currently both a risky and liquid investment, because of poor market conditions. Buying a franchise is not a good option for me, because I don't plan to go into business. In any case, I don't have the money to make this investment.
Explanation:
plato and i change it up a little
RT Renovations is organized with two service departments (S1 and S2) and two production departments (P1 and P2). The company uses the step method to allocate service department costs, allocating from S1 to S2, P1, and P2 first. The cost accountant tells you that in November, $104,000 was allocated from S2 to P1 (including any cost allocated from S1 to S2). She also tells you that $54,000 was allocated from S1 to S2 in November.P1 used 25 percent of S2 services and P2 used 75 percent of S2 services in November. Finally, S2 used 40 percent of S1 services in November.Required:a. What are the total costs incurred by S1 in November? (Do not round intermediate calculations.)b. What are the total costs incurred by S2 (before any allocations) in November? (Do not round intermediate calculations.)
Answers
Answer:
a. $135,000
b. $362,000
Explanation:
a. The computation of the total costs incurred by S1 in November is shown below:
= costs assigned by S1 to S2 ÷ percentage of S1 services used by S2
= $54,000 ÷ 40%
= $135,000
b. The total cost incurred by S2 before any allocations is
= (costs assigned by S2 to P1 ÷ percentage of S2 services used by P1) - costs assigned from S1 to S2
= ($104,000 ÷ 25% - $54,000)
= $416,000 - $54,000
= $362,000
g Question 1 of 1010.0 Points A company's unethical behavior may result in the following except A. buyers will shun the company B. the company will have difficulty recruiting and retaining talented employees C. the company risks damage to shareholders in the form of lost revenues, higher costs, and lower profits, and the company's reputation will suffer D. the company will have to deal with the Sarbanes-Oxley Act of 2002, which requires the company remove the tarnished employees E. All of these choices are correct
Answers
Answer:
E
Explanation:
Answer:
the answer is E
Explanation:
A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog vendor decides to start producing turkey dogs and ham sandwiches as well. Since the new products were introduced, average costs rose dramatically. The vendor is experiencing:__________.
a. Economies of scope
b. Diseconomies of scope
c. Economies of scale
d. Diseconomies of scale
Answers
Answer:
The correct answer is (b) Dis-economies of scope
Explanation:
Solution
Dis-economics of scope : This refers to a situation when the average cost of production is greater from the shared production of services than the average costs from the preceding independent production of the services.
The vendor here in this case is experiencing Dis-economics of scope.
Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate, and (c) open-market operations would you recommend? Explain in each case how the change you advocate would affect commercial bank reserves, the money supply, interest rates, and aggregate demand. g
Answers
Answer:
Explanation:
1. Assuming an economy is experiencing a sharp and prolonged inflationary trend, I'll recommend the following changes:
a. Reserve ratio: I will increase the reserve ratio.
b. Discount rate: I will increase the discount rate.
c. Open market operations: I will recommend tightening the money supply through the selling of more government bonds.
2a. The reserve requirement is the central bank regulation which sets the minimum amount of reserves which must be held by a commercial bank. An increase in the reserve ratio will lead to less money in circulation.
b. the money supply: Thhe money supply will contract i.e tighten
c. Interest rates: Interest rates will rise leading to an increase in the investments which keeps money out of circulation and also lead to a decrease in inflation rates.
d. Aggregate demand. Aggregate demand would reduce, and this would lead to a reduction in inflation.
A team has prepared and estimate for what it can get accomplished in a Sprint. The Product Owner has wanted more to get accomplished in the upcoming Sprint and wants the Team to take on an additional user story. What should the ScrumMaster do in response to this conflict?
Answers
Answer: ScrumMaster should ask the Product Owner which other User Story they would like to give up in exchange for the one they want to add for this upcoming Sprint.
Explanation:
The options to the question are:
a. ScrumMaster should replan the Product Backlog and propose better user stories to address in the Sprint.
b. ScrumMaster should ask the Product Owner which other User Story they would like to give up in exchange for the one they want to add for this upcoming Sprint.
c. Stay out of the way as this is not the ScrumMaster's job to resolve.
d. ScrumMaster should ask the team to take the story on and work overtime.
From the question, we are informed that a team has prepared an estimate for what it can get accomplished in a Sprint and that the Product Owner has wanted more to get accomplished in the upcoming Sprint and therefore wants the team to take on an additional user story.
The best way to tackle this conflict is for the ScrumMaster should ask the Product Owner which other User Story they would like to give up in exchange for the one they want to add for this upcoming Sprint. Since an estimate has already been prepared, taking an additional user story will bring about an overestimation. Therefore, to being the right track, the thing to do is to actually give up a user story for the new one to be added.
For the next nine questions, use the data in the following tables for an economy that produces only two things, bread and computers. Assume that all production is consumed in each year:
Year 1
Good Quantity Price
Bread 30 $10
Computers 10 $50
Year 2
Good Quantity Price
Bread 40 $15
Computers 15 $60
1. Using the chain weighted method, and selecting year 1 as a base, what is real GDP in year 2?
2. Using the chain weighted method, and selecting year 2 as a base, what is real GDP in year 2?
Answers
Answer:
1. Using the chain weighted method, and selecting year 1 as a base, what is real GDP in year 2?
$1,1502. Using the chain weighted method, and selecting year 2 as a base, what is real GDP in year 2?
$1,500Explanation:
When you use the chain weighted method, you must multiply the base year's price times the current quantities to determine real GDP.
Year 1 Year 2
Quantity Price Quantity Price
Bread 30 $10 40 $15
Computers 10 $50 15 $60
real GDP in year 2 using year 1 as base = (15 x $50) + (40 x $10) = $750 + $400 = $1,150
real GDP in year 2 using year 2 as base = (15 x $60) + (40 x $15) = $900 + $600 = $1,500
QS 11-6 Recording employer payroll taxes LO P3 Merger Co. has 10 employees, each of whom earns $1,550 per month and has been employed since January 1. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. Prepare the March 31 journal entry to record the March payroll taxes expenses. (Round your answers to 2 decimal places.)
Answers
Answer:
March 31, 202x, payroll tax expenses
Dr FICA tax (OASDI) expense 961
Dr FICA tax (Medicare) expense 224.75
Dr FUTA tax expense 93
Dr SUTA tax expense 837
Cr FICA tax (OASDI) payable 961
Cr FICA tax (Medicare) payable 224.75
Cr FUTA tax payable 93
Cr SUTA tax payable 837
Explanation:
Since we are calculating only payroll taxes, the wages expense is not included in this journal entry.
total payroll for the 10 employees = 10 x $1,550 = $15,500
each employee has accumulated earnings of $1,550 x 3 = $4,650
Record the following transactions of Fronke’s Fashions in a general journal:
April 1 Purchased merchandise for cash, $2,310.
2 Returned merchandise for cash purchased on April 1; received a cash refund of $218.
4 Purchased merchandise on credit from Breit Distributors, Invoice 125, $871, terms n/30; freight of $46 prepaid by Breit Distributors and added to the invoice.
7 Returned damaged merchandise purchased on April 4 from Breit Distributors; received Credit Memorandum 202 for $58.
30 Paid the amount due to Breit Distributors for the purchase of April 4, less the return on April 7, Check 1458.
Answers
Answer:
Fronke's Fashions
General Journal:
April 1:
Debit Purchases $2,310
Credit Cash Account $2,310
To record purchase of merchandise for cash.
April 2:
Debit Cash Account $218
Credit Purchases Returns $218
To record return of merchandise for cash.
April 4:
Debit Purchases $825
Debit Freight-in $46
Credit Accounts Payable (Breit Distributors) $871
To record purchase of merchandise on credit, Invoice 125, terms n/30
April 7:
Debit Accounts Payable (Breit Distributors) $58
Credit Purchases Returns $58
To record return of damaged merchandise, Credit Memo 202.
April 30:
Debit Accounts Payable (Breit Distributors) $813
Credit Cash Account $813
To record payment of amount due via Check 1458.
Explanation:
Journal entries are made to record business transactions as they occur on a daily basis. The journal is the first accounting record kept about a transaction. It shows the account that will be debited or credited in the General Ledger.
A noncancelable lease contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's expected fair value so that the exercise of the option appears reasonably certain. The fair value of the asset exceeds the lessor's cost of the asset. Therefore, the lease will be accounted for by the lessor as a(n):________ a) Guaranteed lease. b) Financing lease. c) Operating lease. d) Sales-type lease.
Answers
Answer:
d) Sales-type lease.
Explanation:
A bargain purchase option is a non-cancelable lease that contains an option to purchase a leased asset at a price that is sufficiently lower than the asset's expected fair value so that the exercise of the option appears reasonably certain.
Hence, the fair value of the asset exceeds the lessor's cost of the asset. Therefore, the lease will be accounted for by the lessor as Sales-type lease.
A Sales-type lease is a type of capital lease that doesn't meet the criteria to be classified as operating and the lessor makes both interest income and a loss or profit on the transaction, thus causing the fair market value of the leased asset to exceed the lessor's cost to purchase the leased asset.
Additionally, in a sales-type lease, the lessor should ensure net investment, impairment, variable lease payment, interest income are accounted for before the commencement date of the lease.
Debit CreditCash $2,870 Accounts Receivable $3,231 Supplies 800 Equipment 3,800 Accounts Payable 2,666 Unearned Service Revenue 1,200 Common Stock 6,000 Retained Earnings 3,000 Service Revenue 2,380 Salaries and Wages Expense 3,400 Office Expense 940 Totals $13,371 $16,91Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.4. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).6. A debit posting to Salaries and Wages Expense of $670 was omitted.7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.8. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.
Answers
Answer:
TRIAL BALANCE
Assets:
Cash $2,920
Accounts Receivable $3,051
Supplies $300
Equipment $4,300
Total assets 10,571
Liabilities + Stockholders' Equity
Accounts Payable $2,200
Unearned Service Revenue $875
Common Stock $6,000
Retained Earnings $1,496
Total liabilities + stockholders' equity 10,571
Explanation:
1.Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
Dr Cash 180
Cr Accounts receivable 180
2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
Dr Equipment 500
Cr Supplies 500
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
Dr Accounts receivable 0
Cr Service revenue 801
4. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
Dr Office expense 0
Cr Cash 130
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).
Dr Unearned service revenue 325
Cr Service revenue 325
6. A debit posting to Salaries and Wages Expense of $670 was omitted.
Dr Wages expense 670
Cr Cash 0
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
Dr Accounts payable 466
Cr Cash 0
8. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.
Dr Retained earnings 575
Cr Wages expense 575
Service Revenue 2,380 + 801 + 325 = 3,506
Salaries and Wages Expense 3,400 + 670 - 575 = 3,495
Office Expense 940
net loss -929
Cash $2,870 + 180 - 130 = 2,920
Accounts Receivable $3,231 - 180 = 3,051
Supplies 800 - 500 = 300
Equipment 3,800 + 500 = 4,300
Accounts Payable 2,666 - 466 = 2,200
Unearned Service Revenue 1,200 - 325 = 875
Common Stock 6,000
Retained Earnings 3,000 - 575 - 929 = 1,496
