Answer:
The inventory control system for Tegdiws is 1224.74 Units, the re-order point for Tegdiws is 824.24 Units.
The economic order quantity is also called the inventory control system for Tegdiws.
Explanation:
Solution
Given that:
Now
For Tegdiws Company the following information is given below:
The Annual demand = 10,000
The cost of item = $10.00
The lead time (L)= 4 weeks
The safety cost = 55 units
The ordering cost (S)= $150.00
The holding cost (H) = 20%
The economic order quantity is referred to as the inventory control system for Tegdiws
Thus, we find the inventory control system for Tegdiws which is given below:
EOQ =√ 2DS/h
=√2*10000 *150/2
=1224.74 Units
The next step is to calculate the re-order point for Tegdiws company which is computed below:
R = dL + safety stock
Where
d = This is the demand done weekly
which is,
d = 10000/52
=192.31
Thus,
R = (192.31 * 4) +55
= 120 + 11
=824.24 Units.
Durable Plastics Company had the following total assets, liabilities, and equity as of December 31.Total Assets$ 450 comma 000Total Liabilities131 comma 000Total Equity319 comma 000What is the company's debt ratio as of December 31? (Round your percentage answer to two decimal places.)
Answer: Debt ratio = 29.11%
Explanation:
A company's Debt ratio explains the financial leverage of a company to paying off its liabilities using its assets by measuring a company's total liabilities as a percentage of its total assets.
Given ,
Total Assets $ 450,000
Total Liabilities $131, 000
Total Equity $319,000
Debt ratio = Total Liabilites /total asset x 100
=131000/450000 X 100
= 29.11%
Buckeye Incorporated had the following trial balance at the beginning of November.BUCKEYE INCORPORATEDTrail BalanceAccounts Debits CreditsCash $ 2,800Accounts Receivable 800Supplies 1,200Equipment 9,000Accounts Payable $ 1,500Notes Payable 2,100Common Stock 5,100Retained Earnings 5,100--------------------------------------------------------------------------------The following transactions occur in November:November 1 Issue common stock in exchange for $13,000 cash.November 2 Purchase equipment with a long-term note for $4,300 from Spartan Corporation.November 4 Purchase supplies for $2,000 on account.November 10 Provide services to customers on account for $10,000.November 15 Pay creditors on account, $2,000.November 20 Pay employees $3,500 for the first half of the month.November 22 Provide services to customers for $12,100 cash.November 24 Pay $3,000 on the note from Spartan Corporation.November 26 Collect $5,000 on account from customers.November 28 Pay $1,900 to the local utility company for November gas and electricity.November 30 Pay $4,600 rent for November.Record each transaction in a general journal
Answer:
Explanation:
November 1 Issue common stock in exchange for $13,000 cash.
Debit Cash 13,000
Credit Common Stock 13,000
November 2 Purchase equipment with a long-term note for $4,300 from Spartan Corporation.
Debit Equipment 4,300
Credit Note Payable 4,300
November 4 Purchase supplies for $2,000 on account.
Debit Supplies 2,000
Credit Accounts Payable 2,000
November 10 Provide services to customers on account for $10,000.
Debit Accounts receivable 10,000
Credit Service Revenue 10,000
November 15 Pay creditors on account, $2,000.
Debit Accounts payable 2,000
Credit Cash 2,000
November 20 Pay employees $3,500 for the first half of the month.
Debit Salary Expense 3,500
Credit Cash 3,500
November 22 Provide services to customers for $12,100 cash.
Debit Cash 12,100
Credit service revenue 12,100
November 24 Pay $3,000 on the note from Spartan Corporation.
Debit Note payable 3,000
Credit Cash 3,000
November 26 Collect $5,000 on account from customers.
Debit Cash 5,000
Credit Accounts receivable 5,000
November 28 Pay $1,900 to the local utility company for November gas and electricity.
Debit Utility expense 1,900
Credit cash 1,900
November 30 Pay $4,600 rent for November.
Debit rent expense 4,600
Credit cash 4,600
what does non current assets mean
Answer:
assets whose value is not realized in the current year
Explanation:
A noncurrent asset is generally a long-term investment whose value will not be fully realized in the current accounting year. The cost of the asset is allocated over the period the asset is in use, rather than being expensed in the year it is acquired.
Consumption Ratios; Activity Rates Saludable Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows:
Scented Cards Regular Cards
Inspection hours 1,080 720
Setup hours 420 180
Machine hours 960 2,880
Number of moves 2,880 720
The following activity data has been collected:
Inspecting products $45,000
Setting up equipment 28,500
Machining 30,720
Moving materials 16,200
Required:
1. Calculate the consumption ratios for the four drivers. Round your answers to two decimal places.
Scented Cards Regular Cards
Inspection hours
Setup hours
Machine hours
Number of moves
2. Which of the following statements indicate there is product diversity?
Explain the significance of product diversity for decision making if the company chooses to use machine hours to assign all overhead.
If machine hours are used as the only driver, cards would receive 21% of the overhead, and cards would receive 79% of the overhead. Yet, the cards consume well over 53% of the non-machine related overhead. Thus, the Scented cards are , and the Regular cards are . This inaccuracy can adversely affect many decisions, including pricing, keep or drop, and cost-volume-profit.
3. Calculate the activity rates that would be used to assign costs to each product. Round your answers to the nearest cent.
Rates:
Inspecting products $ per inspection hour
Setting up equipment $ per setup hour
Machining $ per machine hour
Moving materials $ per move
4. Suppose that the activity rate for inspecting products is $20 per inspection hour. How many hours of inspection are expected for the coming year?
Answer:
Saludable Company
Consumption Ratios= Amount of Activity per driver /Total Driver Quantity
Scented Cards Regular Cards Total
A B C
Inspection hours 1,080 720 1800
Setup hours 420 180 600
Machine hours 960 2,880 3840
Number of moves 2,880 720 3600
Consumption Ratios
Scented Cards Regular Cards
A/ C B /C
Inspection hours 1,080/1800 720/1800
0.6 0.4
Setup hours 420/600 180/600
0.7 0.3
Machine hours 960/3840 2,880/3840
0.25 0.75
Number of moves 2,880/3600 720/3600
0.8 0.2
2. Diverse products consume activities in different amounts. When they are different product line with diversification the product cost may vary than the actual costs IF ABC is not used. ABC helps removal of un necessary amounts allocated and assigns actual costs incurred.
The Scented cards are more costly than the Regular card. If machine hours are used as the only driver,Scented cards cards would receive 21% of the overhead, and Regular cards would receive 79% of the overhead. This shows that Scented cards are under costed and Regualr Cards are over costed if ABC is not used.
3. Activity Rate= Activity Cost/ Cost Driver
Activity
Inspecting products /Inspection hours= $45,000/1800= 25 $ per inspection hour
Setting up equipment/Setup hours= 28,500/600= $ 47.5 per setup hour
Machining/Machine hours = 30,720/3840 = $8 per machine hour
Moving materials /Number of moves=16,200/3600 = $ 4.5 per move
4. Activity Rate= Activity Cost/ Cost Driver
$ 20= $ 45000/ Hours
Hours = $ 45000/20 = 2250 inspection hours are expected for the coming year.
Your mom is thinking of retiring. Her retirement plan will pay her either $ 100 comma 000 immediately on retirement or $ 140 comma 000 five years after the date of her retirement. Which alternative should she choose if the interest rate is: a. 0 % per year? b. 8 % per year? c. 20 % per year?
Answer:
a.5 year plan will be chosen.
b.Immediately must be chosen
c.Immediately must be chosen
Explanation:
Present value of inflows = cash inflow / (1+r)^n
a. 0 % per year
Present value of inflows = $140,000 / (1)⁵
Present value of inflows = $140,000
5 year plan will be chosen.
b. 8 % per year
Present value of inflows = $140,000 / (1.08) ⁵
Present value of inflows = $140,000 / 1.469328
Present value of inflows = $95,281.6526
Immediately must be chosen
c. 20 % per year?
Present value of inflows = $140,000 / (1.20) ⁵
Present value of inflows = $140,000 / 2.48832
Present value of inflows = $56,262.8601
Immediately must be chosen
Prepare Natura Co.’s journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $120,000 cash to purchase Remed’s 90-day short-term debt securities ($120,000 principal), dated June 15, that pay 5% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. (Use 360 days in a year. Do not round your intermediate calculations.)
Answer: The answer has been attached below.
Explanation:
A journal entry is the record of the business transactions in an accounting books of a business. It is the first step in accounting cycle. The journal details all the financial transactions of a business. The accounts are either recorded in the credit or the debit side of accountings.
The calculation has been attached. Kindly note that the interest was gotten thus:
= 120,000 × 5% × 90/360
= 120,000 × 0.05 × 0.25
= 1500
The journal entry for the whole transactions has been attached.
You decide that you need more information on how employees feel about diversity, so you create a paper and pencil survey on employee attitudes toward diversity and ask managers to distribute it to current employees. If found to be present. What would be the most likely grounds for concern?
Answer:
Discrimination against women and other minorities
Explanation:
The most likely ground for concern would be Discrimination against women and other minorities.
Diversity in the workplace means that an organization employs a diverse team of persons that reflects the views of the society in which it exists and operates. Through diversity and inclusion, no employee is treated unfairly on account of their gender, race, ethnicity.
Discrimination in labor markets, occurs when workers who have the same skill levels by education, experience, and expertise receive different pay because of their race or gender.
The price charged by the theater for a ticket to the Broadway show Hamilton is so low that there is a huge excess demand for the tickets. Ticket brokers buy these tickets at the low price charged by the theater, and they resell them at much higher prices. These ticket brokers have used illegal software called "ticket bots" to buy tickets.In an effort to thwart the use of this software, theaters are now requiring buyers to type characters into a box to prove that they are human. This new policy, requiring people to type characters into a box, will have an impact on the market for Hamilton theater tickets. Below is a list of possible impacts. Move the impacts that will result from the requirement that buyers type characters into the box labeled "Will Occur." Move the impacts that should not occur into the box labeled "Will Not Occur."
Answer:
Will not occur:
- ticket brokers will not be able to obtain tickets to resell
- ticket brokers will hire human workers from other countries
Explanation:
Indeed, it is not logical to conclude that this ticket brokers will not be able to still resell tickets using other fraudulent ways.
Going to hire workers from another country would be a very expensive option that seems more likely not going to occur.
Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor. Required: 1. Journalize the adjusting entry required at September 30, the end of the first month of the current year, to record the estimated product warranty expense. 2. Journalize the entry to record the warranty work provided in October. If an amount box does not require an entry, leave it blank.
Answer:
Explanation:
The required journal is given below
1 Product Warranty Expense 20425 =475000*4.3%
Product Warranty Payable 20425
2 Product Warranty Payable 280
Supplies/Inventory 215
Wages Payable 65
Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
Price Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Dollars) (Tickets) (Tickets)
150 2,100 Tickets 1,000 Tickets
200 2,000 800
250 1,900 600
300 1,800 400
As the price of tickets rises from $150 to $200, the price elasticity of demand for business travelers is _________, and the price elasticity of demand for vacationers is__________ , using the midpoint method. Therefore, the demand for airline tickets in this price range is elastic for vacationers because business travelers are sensitive to changes in price.
Answer
Price elasticiy of demand for business travelers: -0.16
Price elasticity of demand for vacationers: -0.29
Explanation:
To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:
[tex]PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}[/tex]
Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.
Plugging the amounts into the formula we obtain the results of the answer.
Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year are listed below. The common stock was $120,000 and the retained earnings were $60,000 at April 1, the beginning of the current year. During the year, shareholders purchased an additional $25,000 in stock. Accounts payable $2,000 Miscellaneous expense $1,030 Accounts receivable 10,340 Office expense 1,240 Cash 21,420 Supplies 1,670 Fees earned 73,450 Wages expense 23,550 Land 47,000 Dividends 16,570 Building 157,630 Prepare a statement of stockholders' equity for the current year ended March 31. If a net loss is incurred or there is a decrease in stockholders' equity, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank. Thompson Computer Services Statement of Stockholders’ Equity For the Year Ended March 31 Common Stock Retained Earnings Total $ $ $ $ $ $
Answer:
$236,060
Explanation:
Thompson Computer Services Statement of stockholder's equity for the year ended March 31
Beginning common stock $120,000
Add:
Additional stock purchased $25,000
Retained earnings $60,000
Net income $47,630
Less: Dividends $16,570
Ending retained earnings $91,060
(60,000+47,630-16,570)
Ending stockholder's equity $236,060
(120,000+91,060+25,000)
Calculation of Thompson Computer Services Net income
Fees earned 73,450
Less:Miscellaneous expense $1,030
Office expense 1,240
Wages expense 23,550
Balance 47,630
Which journal entry reflects the following transaction?:
BOC bought a $300,000 building with $50,000 cash and a mortgage taken from a bank.
a. Dr. Building 300,000
Cr. Mortgage 250,000
Cr. Cash 50,000
b. Dr. Mortgage 250,000
Dr. Cash 50,000
Cr. Building 300,000
c. Dr. Cash 50,000
Cr. Building 300,000
d. Dr. Building 300,000
Cr. Cash 50,000
e. Dr. Building 300,000
Cr. Cash 300,000
Answer:
The correct answer is Option A.
Explanation:
The concept of double entry says for every debit entry, there must be a corresponding credit entry. This is necessary for the journal entries to balance, that is, the total of the debit balance must always equal the credit balance.
The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.
Network economics Select one: A. applies the law of diminishing returns to communities of users. B. balances the high cost of adding new members to a community against the lower cost of using network infrastructure. C. sees the cost of adding new members as inconsequential. D. applies traditional economics to networked usersh
Answer:
C. sees the cost of adding new members as inconsequential
Explanation:
Network Economics is a situation where a business accrues benefits through feedback that is provided by the who use the businesses product or service. It is a product of the network effect, an increase in the value of a good or service increases as the number of buyers or subscribers goes up.
Baruk Industries has no cash and a debt obligation of $36 million that is now due. The market value of Baruk's assets is $ 81$81 million, and the firm has no other liabilities. Assume perfect capital markets. a. Suppose Baruk has 1010 million shares outstanding. What is Baruk's current share price? b. How many new shares must Baruk issue to raise the capital needed to pay its debt obligation? c. After repaying the debt, what will Baruk's share price be?
Answer and Explanation:
The given values are:
Debt obligation
= $36 million
Market value
= $81 million
Outstanding shares
= $10 million
(a)...
Net Assets of the firm will be:
= [tex]81 - 36[/tex]
= $[tex]45 \ million[/tex]
Now, the current share price will be:
= [tex]\frac{45}{10}[/tex] = $[tex]4.5 \ per \ share[/tex]
(b)...
Number of shares to be issued to repay debt obligation will be:
= [tex]\frac{36}{4.5}[/tex] = $[tex]8 \ million \ shares[/tex]
(c)...
The total number of outstanding shares will be:
= [tex]10+8[/tex]
= $[tex]18 \ million[/tex]
Now,
The Current share price will be:
= [tex]\frac{Net \ assets \ of \ the \ firm}{Total \ no \ of \ outstanding \ shares}[/tex]
= [tex]\frac{81}{18}[/tex]
= $[tex]4.5 \ per \ share[/tex]
Data for Hermann Corporation are shown below:
Per unit Percentage of sale
Selling price $75 100%
expenses 51 68
contribution margin 24% 32%
Fixed expenses are $75,000 per month and the company is selling 4,000 units per month.
Required:
a. How much will net operating income increase (decrease) per month if the company uses higher-quality components that increase the variable expense by $4 per unit and increase unit sales by 25%.
b. Should the higher-quality components be used?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $75
expenses= $51
contribution margin= $24
Fixed expenses are $75,000 per month and the company is selling 4,000 units per month.
Higher quality:
Variable cost= $55
Increase in sales= 4,000*1.25= 5,000
First, we need to determine the effect on the income:
Effect on income= 1,000*(75 - 55) - 4,000*4
Effect on income= $4,000 increase
The higher quality component should be used because of income increase.
Consider the markets for head sets, smart phones, cellular telephone service, and cell phone applications. Assume the market for headsets is controlled by many firms selling similar products, smart phone manufacturers use advertising to differentiate their products, only a few firms control a large portion of the cellular telephone service market, and cell phone applications are produced by many firms selling differentiated products.
Classify the market for each of the following mobile goods and services as either monopoly, oligopoly, monopolistic competition, or perfect competition.
Monopoly Oligopoly Monopolistic Competition Perfect Competition
Head sets
Smart phones
Cellular telephone service
Cell phone applications
Answer: Please see answer below
Explanation:
Headsets- perfect competition ---- This is because the market structure has many firms selling selling similar products, so there will be competition with the absence of price control by a particular firm.
Smart phones- monopolistic competition ---- This smart phone manufacturers use advertising to differentiate their products because even though the smart phones market here have many firms producing slightly same products , each firm has different products which cannot be perfectly substituted therefore operating in a monopolistic competitive medium
Cellular telephone service - oligopoly --- . In this Cellular telephone service market, there are a few firms that are selling either same or different services and so the few firms influence each other.
Cell phone applications - monopolistic competitions---- This is because many firms are selling different products and therefore decisions on price and the company depend on individual firm which leads monopolistic competition.
The following information is available for Barkley Company: 2017 2016 Accounts receivable $ 360,000 $400,000 Inventory 280,000 320,000 Net credit sales 3,000,000 1,400,000 Cost of goods sold 1,200,000 1,060,000 Net income 300,000 170,000 Calculate the inventory turnover for 2017. 4.0 times 2.0 times 2.4 times 4.3 times
Answer:
4.0 times
Explanation:
Given that,
2016:
Accounts receivables = $400,000
Inventory = 320,000
Net credit sales = 1,400,000
Cost of goods sold = 1,060,000
Net income = 170,000
2017:
Accounts receivables = $360,000
Inventory = 280,000
Net credit sales = 3,000,000
Cost of goods sold = 1,200,000
Net income = 300,000
Inventory turnover ratio refers to the ratio between the cost of goods sold and average inventory.
Average inventory:
= (Beginning inventory + Ending inventory) / 2
= ($320,000 + $280,000) / 2
= $300,000
Therefore, the inventory turnover ratio for 2017 is as follows:
= Cost of goods sold / Average inventory
= 1,200,000 / 300,000
= 4.0 times
A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Multiple Choice Reflects an increase in amount due from a customer. Recognizes that a customer returned merchandise and/or received an allowance. Records the cost side of a sales return. Is recorded when a customer takes a discount. Reflects a decrease in amount due to a supplier.
Answer:
Recognizes that a customer returned merchandise and/or received an allowance.
Explanation:
When returning merchandise, sales return and allowances are debited to decrease sales and account receivable or cash is credited to refund / reduce cash company owes by the client. When a customer requires a cash refund, then we can only credit cash instead of account receivable because the debit entry is the same.
The journal entry is
Sales return and allowances XXXXX
To Account receivable XXXXX
(Being the sales return is recorded)
It only shows and records the returned merchandise
When Dave, the sales manager, is deciding on who will train the new sales trainee, he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive. This way he is not affected by the ________ bias.
Answer:
Availability.
Explanation:
This is explained as the ability to process information that comes to the mind immediately trying to think lesser or neglect that which is not yet in mind. That was what Dave, could not phatom in the above description. This phenomenon ends up making people often judge the likelihood of an event, or frequency of its occurrence subtly with which instances and scenarios come easily to mind.
In business dealings for example, an over-estimation can be the likelihood of attacks by sharks or list accidents. Also, some smokers may see one elderly heavy smoker and exaggerate the likely healthy life expectancy of this group.
Jamie Dimon is the CEO and chairman of JPMorgan Chase. He has held both roles since 2005--that is, before, during, and after the financial crisis. Few executives on Wall Street are as respected and recognized, or as well compensated—for instance, in 2013 it was approximately $11.5 million; in 2014, $20 million; and in 2015, $27 million.
In one sense, this is typical of total executive compensation in the finance industry. Mr. Dimon's straight salary is often $1.5 million, and the rest (more than 90 percent) is tied to some measure of firm performance, such as stock price and profitability.
However, JPMorgan and others have come under considerable pressure for what the compensation package doesn't consider directly--ethics. During this same period, JPMorgan has settled legal claims in excess of $25 billion! A few notable examples include: $920 million for allowing traders to fraudulently overvalue investments and conceal losses; $1 billion related to securities fraud and concealment of losses in the "London Whale" trading fiasco (JPMorgan lost $6.2 billion apart from the fines); $13 billion in settlement of risky mortgages; and another $2 billion for not identifying the Madoff Ponzi scheme and the losses it caused its own investors.money
To be fair, Dimon's low $11.5 million year was intended to reflect his role related to the London Whale debacle, but this bonus reduction took place only due to pressure from Congress (Dimon earned $23 million the year before). Defenders of Dimon, and the JPMorgan board of directors who granted the pay, say he deserves such rewards for negotiating smaller fines and for producing industry-leading profitability. JPMorgan had record profits in 2015.
This scenario nevertheless raises an obvious question: Is JPMorgan's pay for performance really pay for profits without consideration of other activities that are costing it billions of dollars in penalties and fines? Dimon was CEO before, during, and since all of these billions in penalties were paid. He did not inherit the problems of a previous executive. And a corporate ethics monitoring group reported that since the financial crisis of 2008 "there appears to be no change in the frequency of the ethical issues facing the company which suggests different types of intervention are needed." The combination of these details leads some to argue that Dimon should be fired.
What Would You Do?
As you may know, the board of directors is ultimately responsible for the performance of the firm, its CEO, and all executives' compensation. With this in mind, assume JPMorgan replaced its entire board. You are now the chair, and Jamie Dimon is only the CEO. What would you recommend?
a. Would you fire Mr. Dimon outright or suggest some other changes to keep this from happening again? Defend your choice.
b. Your answer to #1 aside, what recommendations do you have for the CEO's compensation from here on? Explain.
c. Details of the case aside, describe how you could be sure pay-for-performance for the CEO also includes performance related to ethical conduct.
Answer: The answer is provided below
Explanation:
a. Ethics play a very important role in any organization. Ethics ensures the legitimacy and reputation of the organization. Therefore, it cannot be ignored that Mr. Dimon has disregarded the ethical norms when serving as the CEO and Chairman of JPMorgan. Even though the business is earning profits, such fraudulent and unfair business activities should not be acceptable by the company.
With regards to this, as the chairman, I would fire Mr. Dimon for his immoral way in conducting business activities. This will also set an example for others.
b) As far as the CEO's compensation is concerned, pay shouldn't be just for business performance or profits but also for ethical performance. A business without values and ethics cannot succeed in the long run. Even though profits are vital, they shouldn't be at the cost of morality and ethics.
Therefore, it is vital to compensate the CEO after considering every essential factors and not just on the basis of the businesss performance.
c) A proper Performance Analysis in an organization is made up of all the criterias required to measure the performance of both the company and the employees. Regarding the situation in the question, the ethical dilemma can be solved through the consideration of ethical conduct as an equal and important factor when evaluating pay for performance. Therefore, the pay for performance should include ethical and business aspects together which will lead to more transparency when assessing the compensation.
At the beginning of the year, Plummer’s Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately
were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
By the end of the first year, each machine had been operating 4,800 hours.
Required:
1. Compute the cost of each machine.
Total Cost
Machine A
Machine B
Machine C
Required:
2. Prepare one entry to record depreciation expense at the end of year 1, assuming the following:
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Estimates
Machine Life Residual Value Depreciation Method
A 5 years $1,000 Straight-line
B 60,000 hours 2,000 Units-of-production
C 4 years 1,500 Double-declining-balance
Answer: Please see below
Explanation:
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
total cost $14,000 $32,000 $10,000
Machine Life Residual Value Depreciation Method
A 5 years $1,000 Straight-line
B 60,000 hours 2,000 Units-of-production
C 4 years 1,500 Double-declining-balance
for machne A, using Straight line Depreciation
Straight line Depreciation = total cost of asset - residual value /useful life
=14,000-1000/5= $,2,600
for machne b, using units of operation with production time = 4800
units of operation Depreciation= total cost of asset - residual value /useful life x Production time = ((32,000-2000)/60,000) x 4800= $2400
for machne b, using Double-declining-balance
Double-declining-balance depreciation = (cost of asset - accumulated depreciation/ useful life of asset) x 2 =(( $10,000- 0)/4) x2 = $5000
Journal for machine A at end of year 1
Account Debit Credit
depreciation expense $2600
accumulated depreciation $2,600
Journal for machine B at end of year 1
Account Debit Credit
depreciation expense $2400
accumulated depreciation $2,400
Journal for machine C at end of year 1
Account Debit Credit
depreciation expense $5,000
accumulated depreciation $5,000
1. The cost of each machine is computed as follows:
Machine A Machine B Machine C
Cost of machine $14,000 $32,000 $10,000
2. Depreciation Expenses $2,600 $2,400 $4,250
Journal Entries:
Debit Depreciation Expense $9,250
Credit Accumulated Depreciation:
Machine A $2,600
Machine B $2,400
Machine C $4,250
To record depreciation expense for the first year.
Data and Calculations:
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
Total recognized costs $14,000 $32,000 $10,000
Residual Value $1,000 $2,000 $1,500
Depreciable amount $13,000 $30,000 $8,500
Estimated useful life 5 years 60,000 hours 4 years
Depreciation rate $2,600 $0.50 50% (100/4 x 2)
Depreciation methods S/L Production units Double-declining
Depreciation expense, Yr 1 $2,600 $2,400 $4,250 ($8,500 x 50%)
Calculations ($13,000/5) ($30,000/60,000 x 4,800)
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Suppose that each day, northern, central and southern California each use 100 billion gallons of water. Also assume that northern California and central California have available 120 billion gallons of water, while southern California has 40 billion gallons of water available. The cost of shipping one billion gallons of water between the three regions is as follows:
Northern Central Southern
Northern $5,000 $7,000 $10,000
Central $7,000 $5,000 $6,000
Southern $10,000 $6,000 $5,000
We will not be able to meet all demand for water, so we assume that each billion gallons of unmet demand incurs the following shortage costs:
Northern Central Southern
Storage cost/billion $6,000 $5,000 $9,000
gallon short
How should California’s water be distributed to minimize the sum of shipping and shortage costs?
Answer:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
Explanation:
Presenta Don Quijote de la Mancha: autor,
fechas, tema, personajes.
2. Relata las diferentes etapas de la historia
de don Quijote de la Mancha.
3. Elige un adjetivo para calificar a don Quijote
y a Sancho Panza y justifica: aventurero,
razonable, loco, heroico, te
The type of rice that holds its shape best after cooking is
Answer:
parboiled
Explanation:
Parboiled rice (also called converted rice and easy-cook rice) is rice that has been partially boiled in the husk. The three basic steps of parboiling are soaking, steaming and drying.
Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: Cash collections in April are budgeted to be: Select one: a. $321,000 b. $313,000 c. $320,000 d. $292,000
Answer:
Instructions are below.
Explanation:
Giving the following information:
Cash collection= 20% of a month's sales in the month of sale
Account sales= 70% in the month following sale, and 6% in the second month following sale.
The remainder is uncollectible.
We weren't provided with information regarding sales. I can invent some numbers to show how it's done.
Sales:
February= 200,000
March= 188,000
April= 213,000
Cash collection:
Sales in cash April= (213,000*0.2)= 42,600
Sales on Account March= (188,000*0.7)= 131,600
Sales on Account February= (200,000*0.06)= 12,000
Total cash April= $186,200
Blossom Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 470 pounds of a spice mixture at $2.35 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had risen to $2.73 per pound. In 2020, Blossom should recognize:______.
A. No gain or loss.
B. A gain of $178.60.
C. A loss of $1104.50.
D. A loss of $178.60.
Answer:
No gain or loss.
Explanation:
Given:
Amount of spice mixture = 470 pound
Current price = $2.35 per pound
Future price = $2.73 per pound
Computation:
We know that, Future price of spice mixture is higher than current price of spices.
But contract price is fixed at $2.35.
Therefore, no gain or loss will be recognized.
Answer:
A. No gain or loss.
Explanation:
Relevant data provided as per the question is shown below:-
Spice mixture = $2.73 price per pound
Initial contract price = $2.35
Here the spice mixture is $2.73 price per pound as on 31 December 2020 is higher than the initial contract price $2.35, so no gain or loss should be recognized.
Therefore option A is correct.
Last year, Goran had $30,000 to invest. He invested some of it in an account that paid 7% simple interest per year, and he invested the rest in an account that paid 10% simple interest per year. After one year, he received a total of $2460 in interest. How much did he invest in each account?
Answer:
He invested $18,000 in the first account
he invested $12,000 in the second account
Explanation:
Let x represent the account that pays 7% simple interest
Let y represent the account that pays 10% simple interest
The sum of x and y gives a total investment of $30,000
x+y=30000..........1
From interest perspective , we have the below equation as well:
0.07x+0.10y=2460........2
From equation 1
x=30,000-y
substitute for x in equation 2
0.07(30,000-y)+0.10y=2460
2100-0.07y+0.10y=2460
0.03y=2460-2100
0.03y=360
y=360/0.03
y=$12,000
substitute for y in equation 1
x+12,000=30,000
x=30,000-12,000=$18,000
For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value Years Interest Rate Future Value
$ 2,550 8 18 % $
9,653 21 10 $
101,305 15 11 $
239,382 27 5 $
Answer:
$9585.09
$71,434.61
$484.702.84
$893,722.24
Explanation:
The formula used in calculating future value is given as :
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
1. $ 2,550 (1 + 0.18)^8 = $9585.09
2. 9,653 (1 + 0.1)^21 = $71,434.61
3. 101,305 (1 + 0.11)^ 15 = $484.702.84
4. 239,382(1 + 0.05)^27 = $893,722.24
I hope my answer helps you
Rojas Corporation’s comparative balance sheets are presented below.
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2017
2016
Cash
$ 14,600
$ 10,600
Accounts receivable
21,600
23,400
Land
20,400
26,000
Buildings
70,100
70,100
Accumulated depreciation—buildings
(15,000
)
(10,500
)
Total
$111,700
$119,600
Accounts payable
$ 12,700
$ 28,300
Common stock
75,200
71,200
Retained earnings
23,800
20,100
Total
$111,700
$119,600
Additional information:
1. Net income was $22,500. Dividends declared and paid were $18,800.
2. No noncash investing and financing activities occurred during 2017.
3. The land was sold for cash of $4,500.
Rojas Corporation’s comparative balance sheets are
Rojas Corporation’s comparative balance sheets are
(a) Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000).)
Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
Excerpt from Duty, Honor, Country / Every Man a King
General Douglas MacArthur / Huey P. Long
Duty, Honor, Country / Every Man a King
By: General Douglas MacArthur / Huey P. Long
Explanation:
A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
What is balance sheet?It is one of the three primary financial statements—the other two being the income statement and cash flow statement—that are used to assess a company's performance.
Investors and other stakeholders can use a balance sheet as a reference to assess an organization's financial standing. They can use it to compare current assets and liabilities to assess the company's liquidity or evaluate its return on investment.
Stakeholders can also comprehend the company's prospects with the help of this information. A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
Therefore, A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
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Carlberg Co.’s March 31 inventory of raw materials is $105,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $428,000. Overhead costs incurred in April are: indirect materials, $90,000; indirect labor, $38,000; factory rent, $70,000; factory utilities, $29,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 70% of direct labor cost. Job 306 is sold for $760,000 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 $ 39,000 $ 50,000 Direct labor 30,000 23,000 Applied overhead 21,000 16,100 Costs during April Direct materials 145,000 235,000 $ 110,000 Direct labor 105,000 175,000 110,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process
Answer:
Job 306 is Cost of Goods Sold 403,500
Job 307 is Finished Goods Inventory 621,600
Job 308 Is Goods Still in Process 287,000
Explanation:
Carlberg Co.
Cost of Goods Manufactured
For the Month of April
Opening Inventory Raw Materials $105,000
Purchases Raw Materials $ 590,000
Less Ending Inventory $ 205,000
Direct Materials Used 490,000 (145,000+235,000 + $ 110,000 )
Direct Labor 390,000 (105,000+ 175,000 + 110,000)
Applied Overhead (70% of DL) 273,000
Total Manufacturing Costs $ 1153,000
Add Work in Process Mar 31 169,100
Cost of Goods Available For Manufacture 1322,100
Less Work in Process April 30 287,000
Cost of Goods Manufactured $1035,100
We add the balances to get the required figures and then find out the cost of goods manufactured.
31 March Balances
Job 306 Job 307 Job 308
Direct materials $ 39,000 $ 50,000 ----
Direct labor 30,000 23,000 -----
Applied overhead 21,000 16,100 -----
Beginning WIP 80,000 89,100
Costs during April
Direct materials 145,000 235,000 $ 110,000
Direct labor 105,000 175,000 110,000
Applied overhead 73,500 122,500 77,000
Costs Added In April 323,500 532,500 287,000
Total Costs 403,500 621,600 287,000
Status On April 30 Finished Finished In Process
(sold) (unsold)
Cost Of Goods Finished Goods Goods In Process
Sold Inventory
Job 306 is Cost of Goods Sold
Job 307 is Finished Goods Inventory
Job 308 Is Goods Still in Process
Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment’. Do you agree or not? Justify using practical examples (9 marks)
Answer:
Yes, I agree.
Find explanation below.
Explanation:
The external environment of a business simply refers to the factors found outside the business which can have a profound effect on it. There are basically two types of external environments, namely;
1. The directly interactive which has a direct impact on the business. Examples include, business owners, the customers, contractors, and competitors.
2. Indirectly interactive whose impact on the business is not immediate. Examples include, the political , socio-cultural, economic influences among others.
Practical Examples:
1. Customers play a crucial role to the running of businesses. Managers must take care to listen to the concerns of the customers and attend to their needs urgently. For example, if a customer complains about his dissatisfaction with a style of service, managers should endeavor to address the concern to avoid losing the customer.
2.Political: Government rules and regulations have an impact on businesses because, not adhering to them could lead to sanctions and even closure of the business. Managers must ensure that they heed to and comply with governmental instructions, such as tax payment.
