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.
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Answer:
The complete solution is defined in the attached file please find it.
Explanation:
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Related Questions
A company has two segments with total sales of $500,000 and total variable costs of $343,750. Traceable fixed expenses are $50,000 and common fixed expenses are $80,000. The break even in dollars for the company as a whole equals $ _______. (Enter your answer as a whole number.)
Answers
Answer:
$416,000
Explanation:
The computation of the break even in dollars for the company is given below:
Total fixed expenses = Traceable fixed expenses + Common fixed expenses
= $50,000 + $80,000
= $130,000
Now
Contribution margin ratio = (Sales - Variable costs) ÷Sales × 100
= ($500,000 - $343,750) ÷ $500,000 × 100
= 31.25%
Now
Break-eve dollars = Fixed expenses ÷ Contribution margin ratio
= $130,000 ÷ 31.25%
= $416,000
Business Finance 344 Homework You plan to retire in 39 years. You are debating whether to deposit $69,931 into an account earning 9 percent annually today or waiting 14 years before making the deposit. How much more will be in the account when you retire in 39 years if you make the deposit today as opposed to waiting 14 years to make the first deposit
Answers
Answer:
If you made the deposits now, you would have $1,412,109.77 more than waiting 14 years.
Explanation:
Giving the following information:
Initial investment (PV)= $69,931
Interest rate (i)= 9%
Number of periods= 39 or 25
To calculate the future value, we need to use the following formula:
FV= PV*(1 + i)^n
Wait 14 years:
FV= 69,931*(1.09^25)
FV= $603,020.65
Deposit now:
FV= 69,931*(1.09^39)
FV= $2,015,130.42
If you made the deposits now, you would have $1,412,109.77 more than waiting 14 years.
MC Qu. 97 Bioclean Co. sells a biodegradable... Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following sales for the first four months of the current year: Jan. Feb. March April Sales in Units1,800 2,000 2,200 1,700 Ending inventory for each month should be 30% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February
Answers
Answer: 2,060 units
Explanation:
The Beginning inventory of February is 30% of the sales in February.
The ending inventory in February is 30% of March sales.
February beginning inventory = 30% * 2,000 = 600 units
Ending inventory = 30% * 2,200 = 660 units
Units to be purchased in February = Sales for February + Ending inventory - Beginning units
= 2,000 + 660 - 600
= 2,060 units
Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials $ 9.60 Direct labor 3.40 Variable manufacturing overhead 1.05 Variable selling and administrative expenses 0.40 Fixed Cost per Month Fixed manufacturing overhead $ 16,125 Fixed selling and administrative expenses 4,950 Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a variable costing income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full absorption costing income statement. 6. Suppose next month Dance Creations expects to produce 1,500 hula skirts and sell 1,600. Without recreating the new income statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher
Answers
Answer:
1. $14.05 per unit
2. Contribution Margin $21,381
Net Operating Income $306
3.$24.08 per unit
4.Gross Margin $7,150
Net Operating Income $4,620
6. $1,075
Variable costing would be higher
Explanation:
1. Calculation to determine the variable manufacturing cost per unit for last month
Using this formula
Variable manufacturing cost per unit = Direct material + Direct labor + variable manufacturing overhead
Let plug in the formula
Variable manufacturing cost per unit= $9.60+3.40+1.05
Variable manufacturing cost per unit=$14.05 per unit
Therefore Variable manufacturing cost per unit is $14.05 per unit
2. Calculation to Complete a variable costing income statement for the last month
Variable costing income statement
Sales Revenue $41,250
($30*1,375)
Less: Variable cost per unit $19,869
1,375*($9.60+3.40+1.05 +$0.4)
Contribution Margin $21,381
($41,250-$19,869)
Less: Fixed costs $21,075
($ 16,125+$4,950)
Net Operating Income $306
($21,381-$21,075)
Therefore the complete variable costing income statement for the last month will have Contribution Margn of $21,381 and Net Operating Income of $306
3. Calculation to determine the full manufacturing cost per unit for the last month
Using this formula
Full manufacturing cost per unit = Direct material + Direct labor + variable manufacturing overhead + Fixed manufacturing overhead per unit
Let plug in the formula
Full manufacturing cost per unit= $9.60+3.40+1.05+ $ 16,125/1,500
Full manufacturing cost per unit=$14.05+ $10.75
Full manufacturing cost per unit=$24.08 per unit
Therefore the full manufacturing cost per unit for the last month is $24.08 per unit
4. Calculation to Complete a full absorption costing income statement
Absorption costing Income Statement
Sales Revenue $41,250
($30*1,375)
Less: Cost of Goods sold $34,100
($24.08*1,375)
Gross Margin $7,150
($41,250-$34,100)
Less: Selling expenses $2,530
($0.4*1,375+4,950)
Net Operating Income $4,620
($7,150-$2,530)
Therefore the Complete a full absorption costing income statement will have Gross Margin of $7,150 and Net Operating Income of $4,620
6. Calculation to determine the difference in profit between variable costing and full absorption costing.
Difference=(1,600-1,500)*($16,125/1,500)
Difference= 100*($16,125/1,500)
Difference=100*$10.75
Difference= $1,075
Therefore Variable costing would be higher $1,075
Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved for each delivery: 21 cents per pound and 16 cents per mile. Also, there is a $26 handling fee per parcel.
a. Develop an expression that summarizes delivery charges. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
y = $
x1 + $
x2 + $
b. Determine the delivery charge for transporting a 50-pound parcel 30 miles. (Do not round your intermediate calculation. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
y = $
Answers
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Following are the solution to the given points:
For point a:
Allow 'Y' dollars for delivery fees.
[tex]\to Y= (0.30)X_1+ (0.10)X_2 + 20[/tex]
when [tex]X_1[/tex] is the parcel's weight in pounds and [tex]X_2[/tex] is the delivery distance in miles.
For point b:
when driving 30 kilometers with a 50-pound package:
[tex]\to X_1= 50\\\\\to X_2= 30[/tex]
Calculating the shipping fees:
[tex]\to Y= (0.30)X_1+ (0.10)X_2 + 20 \\\\\to Y= (0.30)50+ (0.10)30 + 20 \\\\[/tex]
[tex]= (0.30)50+ (0.10)30 + 20 \\\\= 15+ 3 + 20 \\\\=\$38[/tex]
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Automatic stabilizers are fiscal policy measures that A. do not require new legislation. B. are determined by the Federal Reserve System. C. are part of discretionary fiscal policy. D. must be determined by the Congress in each budget.
Answers
Answer: A. do not require new legislation.
Explanation:
Fiscal policy refers to measures used by the governments to stabilize the economy. Automatic stabilizers are part of this policy and as the term implies, they are automatic. They kick in when the economy is overheated to cool it down or when there is a recession to boost it.
They therefore require no new legislation because they have already taken effect. Automatic stabilizers are useful because they are not affected by the time lag it takes between the time new fiscal policy is announced and the time it actually take effect.
Cash Flow Activity 1. Sold stock investments for cash. 2. Received cash payments from customers. 3. Paid cash for wages and salaries. 4. Purchased inventories with cash. 5. Paid cash dividends. 6. Issued common stock for cash. 7. Received cash interest on a note. 8. Paid cash interest on outstanding notes. 9. Received cash from sale of land. 10. Paid cash for property taxes on building.
Answers
Answer:
Question is to classify each entry as either operating, investing, or financing activities assuming the indirect method.
Operating activities are those that involve the company's day to day activities of selling their goods and services.
Investing activities refer to those that involve the company buying or selling fixed assets or the securities of other companies.
Financing activities are those that have to do with Equity and long term debt which means that dividends fall here.
1. Sold stock investments for cash. ⇒ INVESTING
2. Received cash payments from customers. ⇒ OPERATING
3. Paid cash for wages and salaries. ⇒ OPERATING
4. Purchased inventories with cash.⇒ OPERATING
5. Paid cash dividends. FINANCING
6. Issued common stock for cash. ⇒ FINANCING
7. Received cash interest on a note. ⇒ OPERATING
8. Paid cash interest on outstanding notes. ⇒ OPERATING
9. Received cash from sale of land. ⇒ INVESTING
10. Paid cash for property taxes on building. ⇒ OPERATING
Brown Co. issued $100 million of its 10% bonds on April 1, 2016, at 99 plus accrued interest. The bonds are dated January 1, 2016, and mature on December 31, 2035. Interest is payable semiannually on June 30 and December 31. What amount did Brown receive from the bond issuance?
a) $87.8 million
b) $99.0 million
c) $100.0 million
d) $101.5 million
Answers
Answer:
d) $101.5 million
Explanation:
The computation of the amount received from the bond issuance is given below:
Interest Rate: 10%
Time period: 3 months (from 01.01.2016 to 31.03.2016)
Par Value=$100 million
Accrued Interest be 2.53 million
So,
Amount receive from Bond Issuance is
= 99 + 2.53
= $101.5 million
Suppose Gulf Shipping Company has the following results related to cash flows for 2019:
Net Income of $7,800,000
Decrease in Accounts Payable of $300,000
Increase in Accounts Receivable of $800,000
Depreciation of $1,200,000
Increase in Inventory of $900,000
Other Adjustments from Operating Activities of $700,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.
What is the Net Cash Flow from Operating Activities?
Note: Financial results are provided in dollars but the income statement units are thousands of dollars.
Please specify your answer in the same units as the statement of cash flows (i.e., enter the number from your completed statement of cash flows).
Answers
Answer:
$7,700
Explanation:
Cash Flow from Operating Activities
Particulars Amount
Net Income $7,800
Add: Depreciation $1,200
Add: Other adjustments $700
Cash flow before working capital adjustments $9,700
Less: Decrease in Accounts payable ($300)
Increase in Accounts receivable ($800)
Increase in Inventory ($900)
Net Cash flow from Operating activities $7,700
The contribution margin format income statement: Multiple Choice is most frequently used for financial statement reporting purposes. uses a behavior pattern classification for costs rather than a functional cost classification approach. emphasizes that all costs change in proportion to any change in revenues. results in a larger amount of operating income than the traditional income statement format.
Answers
Answer: uses a behavior pattern classification for costs rather than a functional cost classification approach.
Explanation:
The behavioral pattern of a cost refers to its relationship with the volume of production or sales. Costs that change along with the volume of production or sales are termed "variable costs" and costs that do not change are termed "fixed costs".
The Contribution Margin income statement classifies costs by whether they are variable or fixed which is why it is said that the format uses a behavioral for cost classification pattern not a functional one.
The company currently has $10.035 billion in long-term debt; assume $9.5 billion is in bonds. The company wishes to refinance its $9.5 billion bonds; therefore, it will reissue bonds. The structure of the new bonds is as follows: Maturity = 35 years, Coupon Rate = 3.5%, and they have a face value of $1,000 each. Similar bonds in the market have a yield-to-maturity (YTM) of 2.75%. What is the price of each bond? Are they trading at a discount or premium?
Answers
Answer:
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Explanation:
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Suppose that in 2014, currency in circulation was $950 billion, required reserves were $60 billion, and excess reserves were $840 billion. At that time, the value of open market operations by the Federal Reserve was $70 billion. The monetary base was
Answers
Answer: $1,850 billion
Explanation:
The following were given in the question:
Currency in circulation = $950 billion
Required reserves = $60 billion
Excess reserves = $840 billion
Open market operations = $70 billion
The monetary base will be the value of all the currency in circulation plus the reserves that is held by the banks and this will be:
= $950billion + $60billion + $840billion
= $1,850 billion
Comparing Three Depreciation Methods Waylander Coatings Company purchased waterproofing equipment on January 6 for $502,200. The equipment was expected to have a useful life of four years, or 9,600 operating hours, and a residual value of $41,400. The equipment was used for 3,600 hours during Year 1, 3,000 hours in Year 2, 1,700 hours in Year 3, and 1,300 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.
Answers
Answer:
Please find the complete question in the attached file.
Explanation:
[tex]Year\ \ \ \ \ \ \ \text{Straight - line method} \ \ \ \ \ \ \text{Units-of-Activitymethod}\ \ \ \ \ \ \text{Double-declining-balance method}\\\\[/tex][tex]1\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$316,800\ \ \ \ \ \ \ \ \$460,400\\\\2\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$264,000\ \ \ \ \ \ \ \ \$230,200\\\\3\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$149,600\ \ \ \ \ \ \ \ \$115,100\\\\4\ \ \ \ \ \ \ \ \$211,200\ \ \ \ \ \ \ \ \$114,400\ \ \ \ \ \ \ \ \$39,100\\\\[/tex]
[tex]Total\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\ \ \ \ \ \ \ \ \$844,800\\\\[/tex]
Your company has a cost of capital equal to 10%. If the following projects are mutually exclusive, and you only have the information that is provided, which should you accept?
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
a. A
b. B
c. C
d. B and C
e. E
Answers
Answer:
The project to accept is:
e. E
Explanation:
a) Data and Calculations:
Cost of capital = 10%
Mutually Exclusive Projects:
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
b) Project E should be preferred over all the other projects. It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital. It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.
Last year Aft charged $1,220,293 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal):
Answers
Answer: No impact on Net Cash from operations.
Explanation:
There are three main sections in the cash flows statement and these are the operating activities which includes the cash transactions which has an effect on the net income; the investing activites which are the cash transactions that has to do with non-current assets and the financing activities which are the cash transactions that involves the non current liabilities and equity.
It should be noted that the purchase of the long-term assets is an investing activities. Therefore, the item will be recorded in the Investing activities in the cash flow statement.
There will be a reduction in cash while there'll be an increase in the fixed. The income statement is also affected due to the fact that there will be an increase in the depreciation expense that's recorded.
Therefore, there'll be no impact on the net cash from operations.
Minor Electric has received a special... Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $11 per unit. Minor currently produces and sells 7,500 units at $12.00 each. This level represents 75% of its capacity. Production costs for these units are $13.50 per unit, which includes $9.00 variable cost and $4.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $625 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,075 on the special order, the size of the order would need to be:_______.
a. 3,400 units
b. 683 units
c. 1,700 units
d. 136 units
e. 850 units
Answers
Answer:
e. 850 units
Explanation:
Desired profit = $1,075
New machine cost = $625
Variable cost per unit = $9 per unit
Sale price per unit = $11 per unit
Order size = (Desired profit + Machine cost) / Contribution margin per unit
Order size = ($1,075 + $625) / ($11 - $9)
Order size = $1,700 / $2
Order size = 850 units
So therefore, if Minor wishes to earn $1,075 on the special order, the size of the order would need to be 850 units.
A farmer purchased a module builder for $50,000. The bank is willing to loan him $37,000. The terminal value of this investment is $15,000. There is a marginal tax rate of 25%, a growth rate of 2%, and a discount rate of 10%. What is the after tax terminal value of this investment
Answers
Answer:
the after tax terminal value would be $14,500
Explanation:
Direct Labor Variances The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs. at $22.50 Standard: 8,400 hrs. at $23.00
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance $ Time variance $ Total direct labor cost variance $
b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
Answers
Answer and Explanation:
The computation is given below:
a)
Direct labor rate variance = (Actual rate - Standard rate) × Actual hours
= ($22.50 - $23) × 8,450 hours
= -$4,225.00 Favorable
Direct labor time variance = (Actual hours - Standard hours) × Standard rate
= (8,450 hours - 8,400 hours) × $23
= $ 1,150.00 Unfavorable
Total direct labor cost variance is
= Direct labor rate variance + Direct labor time variance
= $4,225 Favorable + $1,150 Unfavorable
= -$3,075.00 Favorable
b. In the case when the employees are not much experienced or they are poorly trained so the less experience cause to less performance due to which the actual time needed should be more than the standard one
Precision Construction entered into the following transactions during a recent year.
January 2 Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a $230,000 note due in five years.
January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency.
January 30 Wrote a check for the amount owed on account for the work completed on
February 1 Replaced the seat on the bulldozer and wrote a check for the full $800 cost.
March 1 Paid $3,600 cash for the licensing rights to use computer software for a two-year period.
Required:
Prepare the journal entries for each of the above transactions.
Answers
Answer:
Jan-02
Dr Bulldozer $ 250,000
Cr Cash $ 20,000
Cr Note Payable $ 230,000
Jan-03
Dr Bulldozer $ 20,000
Cr Accounts Payable $ 20,000
Jan-30
Dr Accounts Payable $ 20,000
Cr Cash $ 20,000
Feb-01
Dr Repair and Maintenance Expense $ 800
Cr Cash $ 800
Mar-01
Dr Computer Software $ 3,600
Cr Cash $ 3,600
Explanation:
Preparation of the journal entries for each of the above transactions.
Jan-02
Dr Bulldozer $ 250,000
Cr Cash $ 20,000
Cr Note Payable $ 230,000
(Purchased bulldozer)
Jan-03
Dr Bulldozer $ 20,000
Cr Accounts Payable $ 20,000
(Replaced tracks on bulldozer)
Jan-30
Dr Accounts Payable $ 20,000
Cr Cash $ 20,000
(Paid cash)
Feb-01
Dr Repair and Maintenance Expense $ 800
Cr Cash $ 800
(Repaired seat of bulldozer)
Mar-01
Dr Computer Software $ 3,600
Cr Cash $ 3,600
(Purchase computer software)
Barton Corporation acquires a coal mine at a cost of $1,800,000. Intangible development costs total $360,000. After extraction has occurred, Barton must restore the property (estimated fair value of the obligation is $180,000). Barton estimates that 6,000 tons of coal can be extracted. What is the amount of depletion per ton
Answers
Answer: $390 per ton
Explanation:
The depletion per ton is:
= Total cost of acquiring the coal mine / Number of tons that can be extracted
= (Acquisition cost + intangible development cost + Fair value of restoration) / Number of tons that can be extracted
= (1,800,000 + 360,000 + 180,000) / 6,000
= $390 per ton
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
Answers
Answer:
$0.16
Explanation:
Particulars Quantity Price Amount
Cocoa 400 $1.25 $500
Sugar 80 $0.40 $32
Milk 120 $2.50 $300
Total $832
Standard direct materials cost per bar = Total amount / Number of bar
Standard direct materials cost per bar = $832 / 5,200 bars
Standard direct materials cost per bar = $0.16
MC Qu. 97 The standard materials cost to produce... The standard materials cost to produce 1 unit of Product R is 7 pounds of material at a standard price of $47 per pound. In manufacturing 6,000 units, 41,000 pounds of material were used at a cost of $48 per pound. What is the total direct materials cost variance
Answers
Answer:
total direct materials cost variance is $6,000 Favourable
Explanation:
first we get here Standard cost to manufacture
Standard cost to manufacture 6,000 units is = 7 × $47 × 6,000
Standard cost = $1,974,000
and
now we get here Actual cost to manufacturing
Actual cost to manufacturing 6,000 units is = 41,000 × $48
Actual cost = $1,968,000
and
now we get here Direct material cost variance that is express as
Direct material cost variance = Standard cost - Actual cost ..........1
put here value
Direct material cost variance = $1,974,000 - $1,968,000
Direct material cost variance = $6,000 Favourable
Let illustrate what you you know about materiality concept.
Answers
Answer:
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Aureolin Company manufactures toothpaste and packs them in tubes of 250 grams. Standard variable overhead rate (SVOR) $3.90 per direct labor hour Actual variable overhead $79,721 Actual hours worked (AH) 22,290 hours Hours allowed for production (SH) 18,000 hours Determine the variable overhead spending variance.
Answers
Answer:
Variable manufacturing overhead spending variance= $7,132.8 favorable
Explanation:
Giving the following information:
Standard variable overhead rate (SVOR) $3.90 per direct labor hour
Actual variable overhead $79,721
Actual hours worked (AH) 22,290 hours
To calculate the variable overhead spending variance, we need to use the following formula:
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (3.9 - 3.58)*22,290
Variable manufacturing overhead spending variance= $7,132.8 favorable
Actual rate= 79,721/22,290= $3.58
The process of acquiring political beliefs is called political socialization.
true or false
Answers
Political socialization is the "process by which individuals learn and frequently internalize a political lens framing their perceptions of how power is arranged and how the world around them is (and should be) organized; those perceptions, in turn, shape and define individuals' definitions of who they are and how they should behave in the political and economic institutions in which they live
Assume there is a perfectly competitive market for tangerines. What will happen in the long run for the market to achieve both allocative and productive efficiency if the price for tangerines is lower than the marginal cost of producing tangerines?
Answers
Answer: Producers will either exit the market or produce less tangerines
Explanation:
If the marginal cost of producing tangerines is more than the price of producing them, it means that the supply of tangerines is quite high which is why the market reduced the price of tangerines.
The producers in the market will therefore act to reduce supply. They will do this by either reducing the number of producers so that the smaller number of producers will produce less or they will reduce production jointly in order to reduce supply. As this is a perfectly competitive market, the former scenario is more likely.
Bramble Corp. is planning to sell 1200 boxes of ceramic tile, with production estimated at 1170 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bramble has 3200 pounds of clay mix in beginning inventory and wants to have 4100 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month
Answers
Answer: $6,435
Explanation:
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
Direct labor costs:
= Budgeted number of boxes to be produced* number of direct labor hours required * employee salary per hour
= 1,170 * 0.50 * 10
= $5,850
Manufacturing overhead is 110% of this:
= 5,850 * 110/100
= $6,435
Sales-Related Transactions
Merchandise is sold on account to a customer for $7,400, terms FOB shipping point, 1/10, n/30. The seller
paid the freight of $390. Determine the following:
a.
Amount of the sale
b.
Amount debited to Accounts Receivable
c.
Amount received within the discount period
7,326 X
Answers
Answer:
a. Particulars Amount
Sales revenue - Gross $7,400
Less: Sales discount $74 ($7,400*1%)
Net sales revenue $7,474
b. Particulars Amount
Sales revenue-Net $7,474
Add: Freight paid on behalf of purchaser $390
Account receivable debited $7,864
c. Particulars Amount
Total amount due $7,938
Less: Sales discount ($7,400*1%) $74
Net amount to be received $7,864
The company has net sales revenue of $3.6 million during 2018. The company's records also included the following information: Assets 12/31/17 12/31/18 Property, plant and equipment $ 2.3 million $ 2.5 million Licensing agreements $ 0.5 million $ 0.4 million Goodwill $ 0.3 million $ 0.3 million Investments $ 0.4 million $ 0.5 million What is the company's fixed asset turnover ratio for 2018
Answers
Answer:
1.5
Explanation:
Calculation to determine the company's fixed asset turnover ratio for 2018
Average Net Fixed Assets=3,600,000/ [(2,300,000 + 2,500,000)/2]
Average Net Fixed Assets=3,600,000/(4,800,000/2)
Average Net Fixed Assets=3,600,000/2,400,000
Average Net Fixed Assets = 1.5
Therefore the company's fixed asset turnover ratio for 2018 is 1.5
Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 1/4.
A Confirm that the bonds' selling price is approximately correct (within $100). Use the present value tables B.1 and B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your other final answers to the nearest whole dollar amount.)
Per value x price = Selling price
$240,000 117 1/4 $281,400
Cash flow Table value Present Value
$240,000 par (maturity) value
$12,000 interest payment
price of the bond
Difference due to rounding of table values
Answers
Par Value x price = Selling Price
240,000 x 117.25 = 281,400
Cashflow Table value = Present value
240,000 0.3083 (Present Value table 4%, 30 periods) 73,992
12,000 17.292 (PV annuity table 4%, 30 periods) +207,504
281,496
Difference due to rounding 281,400 -281,496 = -96
