Answer and Explanation:
The Preparation of income statement is prepared below:-
Rushmore Biking Inc.
Income statement
For the month ended February 28
Particulars Amount
Revenues $7,30,300
Less: Cost of goods sold $4,41,400
Gross profit $2,88,900
Selling and administrative expenses:
Selling expenses $1,48,500
Administrative expenses $72,200
Less: Total Selling and administrative
expenses $2,20,700
Income from operations $68,200
QUESTIONS: What is the state’s role in enforcing federal drug laws? Even in states where marijuana is legal, many large employers have company-wide policies that prohibit the hiring of anyone who tests positive for recent marijuana use. How do you think Congress should respond to protect the rights of citizens to sell and use marijuana in states where it is legalized while protecting the interests of employers? Given this complex dynamic and the legal theory of preemption, do you think marijuana is really legal in the states in which it is legalized? Why or why not
Answer:
States have a high duty to adhere to the federal laws and state rule as well, wherever it is applicable. But in case the state has unique requirement, it may enact and enforce its own law which suits the local population rather than use of federal law. When it comes to federal drug laws, the states have a responsibility to work along with the federal authorities and government to make sure that the laws are in place. This includes not bringing about conflicting laws.
Congress should allow the employers to set their own rules. For example, if an employer does not allow employees to drink during working hours, there is no problem with it. Similarly if an employer chooses not to hire anyone with visible tattoo on their body, then that is completely employers’ discretion. Similarly if the employers have company wide policy to avoid marijuana, then that is employers’ business. There are many NGOs where the employers do not allow smoking or recruit smokers. There is nothing wrong with it. Now, unless an employee has medical justification for consuming marijuana, the employer should be within their right to decide on action on the employee. This is why Congress should not interfere in the employer-employee relationship.
Given that in absolute conflict, the federal laws trump the state laws, marijuana is not legal in any of the states even if the state law permits it. The only reason the US Government is not taking action against recreational marijuana in the mentioned states is because it is too cumbersome and the outcome is not that significant. There is not a great deal of state benefit by arresting the farmers growing marijuana or the people distributing it. Thus it is still illegal but the government is not acting upon it.
A business has fixed costs of $45,000 per month and a variable costs of $32,000 per month . What is the average total cost of 7,700 units
Answer:
$10 per unit
Explanation:
The average total cost (AC) is the estimated per-unit cost in a given output. The formula for calculating the average cost
=(Total fixed costs + total variable costs) / number of units produced = average total cost.
Adding Total fixed cost to total variable cost equal to Total cost (TC)
For this business, the average total costs
=$45,000 + $32,000 /7,700
=$77,000/7700
=$10
AC= $10 per unit
True or false is public disclosure laws are laws that require companies to provide full information about their products
Answer:
True
Explanation:
Public disclosure entails making information or data easily accessible and available to all interested parties. Public disclosure may be in the form of statements released to the general public through media, publication in an official bulletin, website, or special report document.
Public disclosure laws are regulations requiring businesses to provide full information about their products. The information provided includes ingredients or components of a product and any hazards that may arise from its usage. Public disclosure laws exist to protect consumers.
Gordon, an employee, is provided group term life insurance coverage equal to twice his annual salary of $125,000 per year. According to the IRS Uniform Premium Table (based on Gordon's age), the amount is $12 per year for $1,000 of protection. The cost of an individual policy would be $15 per year for $1,000 of protection. Since Gordon paid nothing towards the cost of the $250,000 protection, he must include in his 2019 gross income which of the following amounts?
Answer:
1
Explanation:
1+1=2
The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for bad debts of $9,887 and $17,439, respectively $173,948 $239,842
Required:
a. If $11,722 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown) Bad debt xpemse
b. The December 31, 2020, Allowance account balance includes $3,094 for a past due account that is not likely to be collected. This account has not been written off (1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?
Answer:
Avanti's, Inc.
Bad Debts Expense = $4,170
Explanation:
a) Data:
Current assets section of the balance sheets of
Avanti's, Inc.,
at December 31, 2020 and 2019: 12/31/20 12/31/19
Accounts receivable, $183,835 $257,281
less allowance for bad debts of $9,887 $17,439
Balance of Accounts receivable $173,948 $239,842
Allowance for bad debts account
Account Details Debit Credit
Balance, 12/31/19 $17,439
Accounts receivable $11,722
Balance, 12/31/20 9,887
Bad debt expense 4,170
Journal Entries:
Debit Bad Debts Expense $4,170
Credit Allowance for Bad Debts $4,170
To record bad debts expense for the period.
Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for internal failures? 1. Repairs for dog beds under warranty 2,127 2. Seamstress training 822 3. Wages of part-time inspector of products 1,314 4. Cost of replacements given to customers for defective dog beds 1,460 5. Product liability insurance 3,931 6. Inspection of sewing machines as part of routine maintenance 3,295 7. Inspection of fabric and thread for defects 1,661 8. Repairing defective dog beds prior to sale 1,651
Answer: $1,651
Explanation:
The only cost for Internal failure is Repairing the dog beds prior to sale which is $1,651.
The other costs are classified as;
Repairs for dog beds under warranty - External failure cost Seamstress training. - Prevention cost Wages of part-time inspector of products - Appraisal costCost of replacements given to customers for defective dog beds - External failure cost Product liability insurance - External failure costInspection of sewing machines as part of routine maintenance -Appraisal costInspection of fabric and thread for defects - Appraisal costWally Company's cost of quality for internal failures is $1,651
Calculation of the cost of quality for internal failure:= repairing defective dog
= $1,651
We know that
Repairs for dog beds under warranty - External failure cost
Seamstress training. - Prevention cost
Wages of part-time inspector of products - Appraisal cost
Cost of replacements given to customers for defective dog beds - External failure cost
Product liability insurance - External failure cost
Inspection of sewing machines as part of routine maintenance -Appraisal cost
Inspection of fabric and thread for defects - Appraisal cost
learn more about the cost here: https://brainly.com/question/19817278
What is database fraud?
Answer:
The National Fraud Database hold records of first and third party fraud risk, such as account takeover, identity fraud, false insurance claims, application fraud and more. It also holds data on individuals who have been, or are at risk of becoming, victims of fraud.
What is the meaning
economics
Answer:
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
2.
the condition of a region or group as regards material prosperity.
Linden, Inc. uses a 6,900 square foot factory space that it rents for $3,500 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 3,100 square feet of the factory are used for machining, while 1,400 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 1,000 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer: $710.14
Explanation:
Out of the total space of 6,900 square foot, Preparation and Setup uses 1,400 out of this.
Rent is $3,500
The total rent to be apportioned to it will therefore be;
= 1,400/6,900 * 3,500
= $710.14
Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for an average of $140,000 each. Class C homes are priced at $59,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper
Answer:
$46,900,000
Explanation:
Calculation for the erosion cost of adding the mid-range camper
Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]
Erosion cost =(250×$140,000)+(200×$59,500)
Erosion cost =$35,000,000+$11,900,000
Erosion cost = $46,900,000
Therefore the erosion cost of adding the mid-range camper will be $46,900,000
Select each concept with its best description by selecting its letter in the dropdowns.
Flexible product designs can be modified to accommodate customer choices.
Focuses on quality throughout the production process.
Reports on financial, social, and environmental performance.
Inventory is acquired or produced only as needed.
Every manager and employee constantly looks for ways to improve company operations.
Answer:
This question is incomplete, the concepts are missing. Those concepts are the following:
1) Just in time manufacturing
2) Continuous improvement
3) Customer orientation
4) Total quality management
5) Triple bottom line
And the matches are the following:
1 - D ; 2 - E ; 3 - A ; 4 - B ; 5 - C
Explanation:
Just in time manufacturing is a concept known in the business field that refers to the method used by the companies who believe that having every little detail in time would improve the production process of the company and that is to have great agreements with the suppliers as well. That is why that inventory is acquired or produced only as needed.
Continuous improvement is the concept that refers to the state where the managers and employees of the company are always looking for new ways to improve the operations of the company itself.
Costumer orientation is the concept known as the flexible product design that the company chooses to use in order to adjust their products in order to what the customers really need or want.
Total quality management is the concept that refers to the situation where all the company is completely focused in the quality throughout the production process.
Triple bottom line is refered to the corporation social responsibility and that is why that this method is related to the financial, social and environmental performance of the company as a whole to the society where it resides.
The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for the month of July, when production is expected to be 470,000 units to meet the ending inventory requirements and sales of 475,000 units. Fortnight Co.'s budget analyst has the following actual data for the last three months. Month Production in Units Manufacturing Supplies March 450,000 $723,060 April 540,000 853,560 May 480,000 766,560Using the high-low method to develop a cost estimating equation, the estimate of needed manufacturing supplies for July would be: (CMA adapted)
Answer:
Total cost= $752,060
Explanation:
To calculate the fixed and variable cost under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (853,560 - 723,060) / (540,000 - 450,000)
Variable cost per unit= $1.45
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 853,560 - (1.45*540,000)
Fixed costs= $70,560
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 723,060 - (1.45*450,000)
Fixed costs= $70,560
Now, the total cost for 470,000 units:
Total cost= 70,560 + 1.45*470,000
Total cost= $752,060
Page 4 of 17
Please read and answer each question carefully.
Summa
4. Which of the following is a contract?
A) O An Insurance policy
B) O A repair order
C) O Both of the above
D) O None of the above
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Answer:
C. Both of the above
Explanation:
Insurance policy and repair order are both contracts.
The insurance policy is an agreement between the insurer (person or company) and the policyholder (the person who takes the cover). On the other hand, the repair order is also a contract because it is an agreement between the company who will provide the service repair and the customer who will receive the service.
As long as both parties consent to the agreement, are capable of doing what is asked in the agreement and that the agreement is legal, then it is considered a contract.
The following information is available for Trailblazer, a manufacturer of four-wheel all-terrain vehicles for its first two years of operation: 2020 2021 Vehicles produced 1,000 1,400 Vehicles sold 900 1,200 Selling price per unit $1,200 $1,200 Direct material per unit $350 $350 Direct labor per unit $220 $220 Variable manufacturing overhead per unit $40 $40 Fixed manufacturing overhead per year $112,000 $112,000 Variable selling and administrative expense per unit $20 $20 Fixed selling and administrative expense per year $35,000 $35,000 Calculate net income for 2021 using full costing. Net income $enter a net income in dollars 523000
Answer:
$537,000
Explanation:
The computation of net income for 2021 using full costing is shown below:-
Net income = Sales - Cost of goods sold - Selling and administrative expenses
= (1,200 × 1,200) - (((1,200 × (350 + 220 + 20)) + 112,000) - ((1,200 × 20) + 35,000)
= $1,440,000 - $844,000 - $59,000
= $537,000
So, for computing the net income we simply applied the above formula.
Why do companies frequently expand their business operations into other countries?
The equity is owned by LP investors and MP in a ratio of 5 to 1. The total invested equity is $120. The outstanding mortgage balance at the end of 2019 is $240. The property sells for $400 net of all expenses at the end of 2019. The rules established for sales proceeds are, first pay the mortgage off, next return capital to equity partners and finally split all remaining proceeds 70 LP/30 MP. How much cash flow will the MP get from the sales transaction (do not put the $ sign in the answer)
Answer:
MP will get a cash flow of:
$128
Explanation:
a) Data and Calculations:
Equity shares
LP = 5
MP = 1
Ratio of equity = 5 : 1
Invested equity = $120
Share of invested equity:
LP = 5/6 * $120 = $100
MP = 1/6 * $120 = $20
Mortgage = $240
Property Sales = $400
Sales Proceeds Rules:
Property Sales = $400
Mortgage 240
Remaining 160
Equity share:
LP (100)
MP (20)
Balance 40
Sharing Ratio:
LP = 70% * $40 = $28
MP = 30% * $40 = $12
MP's cash flow:
Equity = $100
Balance Shared = $28
Total = $128
What is the foundation of a career strategy?
Explanation:
i think its self-assessment
Answer:
The correct answer is C. A career goal
Explanation:
For all Plato users
Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information:
Units Costs
Beginning work in process (27% complete) 36,000
Direct materials $ 48,000
Conversion cost 105,000
Total cost of beginning work in process $ 153,000
Number of units started 74,000
Number of units completed and transferred to finished goods ?
Ending work in process (52% complete) 89,000
Current period costs
Direct materials $ 91,000
Conversion cost 161,000
Total current period costs $ 252,000
Required:
1 & 2. Using the weighted-average method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)
d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)
Answer:
a. Reconciliation of the number of physical units worked on during the period.
As at Beginning 36,000
Units started in current period 74,000
Units to be accounted for 110,000
Transferred out 21,000 Balancing figure
(110,000 - 89,000)
As at end 89,000
Units accounted for 110,000
b. Calculation of equivalent units.
Direct Materials Conversion Costs
Transferred out (A) 21,000 21,000
Units as at end (B) 89,000 89,000
Percentage of completion (C) 100% 52%
Equivalent units as at 31 Dec 89,000 46,280
(D = B * C)
Total equivalent units (A+D) 110,000 67,280
c. Calculation the cost per equivalent unit.
Direct Materials Conversion Total
As at beginning 48000 105000 153000
Added during the period 91000 161000 252000
Costs to be accounted for 139000 266000 405000
Total equivalent units 110,000 67,280
Cost per equivalent unit 1.26364 3.95363 5.21726
Note: Cost per equivalent unit = Costs to be accounted for / Total equivalent units
d. Reconciliation the total cost of work in process.
Direct Materials Conversion Total
Units as at end (A) 89,000 89,000 89,000
Cost per equivalent unit (B) 1.26364 3.95363 5.21726
Percentage of completion (C) 100% 52%
Total cost (A*B*C) 112,464 182,974 295,437
Cost of closing WIP = Costs to be Accounted for - Costs Transferred Out
= 405000 - (21000 units * 5.21726)
= 405,000 - 109,562.46
= 295437.54
= $295,4378
The following book and fair values were available for Westmont Company as of March 1.
Book Value Fair Value
Inventory $ 231,000 $191,750
Land 822,000 1,119,750
Buildings 2,130,000 2,447,250
Customer relationships 0 867,750
Accounts payable(104,000) (104,000)
Common stock (2,000,000)
Additional paid-in capital (500,000 )
Retained earnings 1/1 (417,500)
Revenues (464,500)
Expenses 303,000
Note: Parentheses indicate a credit balance.
Arturo Company pays $3,780,000 cash and issues 28,700 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont%u2019s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $32,800 and Arturo pays $47,500 for legal fees to complete the transaction.
Prepare Arturo%u2019s journal entry to record its acquisition of Westmont.
Answer:
1. Debit Inventory for $191,750; Debit Land for $119,750; Debit Buildings for $2,447,250; Debit Customer Relationships for $867,750; and Debit Goodwill for $1,692,500. But Credit Accounts payable for $104,000; Credit Common Stock (28,700 shares * $2) for $57,400; Credit Additional Paid-In Capital [28,700 shares * ($50-$2)] for $1,377,600; and Credit Cash for 3,780,000.
2. Debit Professional Services Expense for $47,500; and Credit Cash for $47,500.
3. Debi Additional Paid-In Capital for $32,800; and Credit Cash for 32,800.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. Please, see the attached pdf file for the represented question with the sorted data.
Also note: See the attached excel file to see how the prepared Arturo’s journal entry look like.
Note that the Goodwill is calculated as follows:
Goodwill = Inventory + Land + Buildings + Customer Relationships - Accounts payable - Common Stock (28,700 shares * $2) - Additional Paid-In Capital [28,700 shares * ($50-$2)] - Cash = $191,750 + $119,750 + $2,447,250 + $867,750 - $104,000 - $57,400 - $1,377,600 - $3,780,000 = $1,692,500
Use the following data to compute total manufacturing costs for the month:
Sales commissions $ 11,800
Direct labor 40,600
Indirect materials 16,200
Factory manager salaries 8,200
Factory supplies 10,000
Indirect labor 7,300
Depreciation—office equipment 6,000
Direct materials 41,500
Corporate office salaries 43,500
Depreciation—factory equipment 8,500
a) $150,100.
b) $132,300.
c) $50,200.
d) $90,800.
e) $61,300.
Answer:
$132,300
Explanation:
The total manufacturing costs for the month can be calculated as follows
Direct labor + indirect materials + factory manager salary + indirect labour + direct materials + depreciation on factory equipment
= 40,600 + 16,200 + 8,200 + 10,000 + 7,300 + 41,500 + 8,500
= $132,300
Hence the total manufacturing costs if $132,300
The FOMC has instructed the FRBNY Trading Desk to purchase $820 million in U.S. Treasury securities. The Federal Reserve has currently set the reserve requirement at 5 percent of transaction deposits. Assume U.S. banks withdraw all excess reserves and give out loans. a. Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? b. What is the full effect of this purchase on bank deposits and the money supply if borrowers return only 95 percent of these funds to their banks in the form of transaction deposits? (For all requirements, enter your answers in billions. Round your final answers to 2 decimal places. (i.e., 5,500,000,000 should be entered as 5.50).)
Answer: See explanation
Explanation:
a. . Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply?
Based on the above scenario, there'll be an increase in bank deposits and money supply by $16.4 billion.
= (1/5%) × $820 million
= (1/0.05) × $820 million
= 20 × $820 million
= 16,400,000,000
= 16.4 billion
b.What is the full effect of this purchase on bank deposits and the money supply if borrowersreturn only 95 percent of these funds to their banks in the form of transaction deposits?
This will lead to an increase in the bank deposits and money supply by $8.2 billion
= [1/(0.05+(1-0.95)] × $820 million
= [1/0.05+0.05] × $820 million
= (1/0.1) × $820 million
= 10 × $820 million
= $8.2 billion
Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 1,250 Direct materials $ 1,070 2,766 Conversion 3,400 3,350 Costs added during March Direct materials $ 10,140 $ 9,456 Conversion 11,100 18,725 Transferred in from cutting dept. 17,110 Transferred to finished goods 33,000 Determine the ending balances in the Work in Process Inventory accounts of each department.
Answer:
Cutting $8,600
Binding $19,657
Explanation:
Calculation to Determine the ending balances in the Work in Process Inventory accounts of each department
Ending work in process:
Cutting = $1,070 + $3,400+ $10,140 + $11,100- $17,110
Cutting = $8,600
Binding = $1,250 + $2,766 + $3,350+ $9,456+ $18,725 + $17,110 - $33,000
Binding= $19,657
Therefore the ending balances in the Work in Process Inventory accounts of each department is:
Cutting $8,600
Binding $19,657
Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory. April May June Required purchases (on account) $ 106,000 $ 126,000 $ 138,000 Vivian Books’s accountant prepared the following schedule of cash payments for inventory purchases. Vivian Books’s suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Answer:
A.
April $102,400
May $124,000
June $136,800
B. $13,800
Explanation:
a. Calculation to Complete the schedule of cash payments for inventory purchases
April May June
Payment for current accounts payable
$95,400 $113,400 $124,200
Payment for previous accounts payable
$7,000 $10,600 $12,600
Total Budgeted payments for inventory
$102,400 $124,000 $136,800
Workings:
Payment for current accounts payable
April 95,400
May 126,000*90% =113,400
June 138,000*90=124,200
Payment for previous accounts payable
April 7,000
May 106,000*10%=10,600
June 126,000*10%=12,600
b. Calculation to Determine the amount of accounts payable that the company will report on its pro forma balance sheet
Accounts payable amount=$ 138,000 June purchase amount x 10% to be paid in July
Account payable amount=$13,800
Therefore the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter will be $13,800
A cost-benefit analysis is a way
Answer:
Cost Benefit Analysis
Way of thinking that compares the cost of an action to its benefits.
Explanation:
I hope it helps.
A problem of interest to health officials (and others) is to determine the effects of smoking during pregnancy on infant health. One measure of infant health is birth weight; a birth weight that is too low can put an infant at risk for contracting various illnesses. Since factors other than cigarette smoking that affect birth weight are likely to be correlated with smoking, we should take those factors into account. For example, higher income generally results in access to better prenatal care, as well as better nutrition for the mother. An equation that recognizes this is bwght 5 b0 1 b1cigs 1 b2 faminc 1 u. (i) What is the most likely sign for b2
Answer:
β2 should have a positive sign
Explanation:
The regression equation is:
βwght = β0+β1cigs+β2faminc+μ
The equation tells us that the birth weight of a child is dependent on factors like cigarette consumption and family income.
β1 should have a negative sign because smoking during pregnancy has an adverse effect on birth weight. So there would be a negative correlation between birth weight and cigarette consumption.
β2 should have a positive sign. This is because while pregnant, a family with more income has the ability to provide better prenatal care and also better nutrition to the expectant mother. Therefore we have a positive correlation.
By observing an individual’s behavior in the situations outlined below, determine therelevant income elasticities of demand for each good (i.e., whether the good is normal orinferior). If you cannot determine the income elasticity, what additional informationmight you need?
a. Bill spends all his income on books and coffee. He finds $20 while rummagingthrough a used paperback bin at the bookstore. He immediately buys a newhardcover book of poetry.
b. Bill loses $10 he was going to use to buy a double espresso. He decides to sell hisnew book at a discount to his friend and use the money to buy coffee.
c. Being bohemian becomes the latest teen fad. As a result, coffee and book pricesrise by 25 percent. Bill lowers his consumption of both goods by the same percentage.
d. Bill drops out of art school and gets an M.B.A. instead. He stops reading books anddrinking coffee. Now he reads The Wall Street Journal and drinks bottled mineralwater
Answer:
Normal goods are those goods which see their demand rise when income rises and fall when income falls. Inferior goods on the other hand will see their demand fall when income rises and vice versa.
a. Book = Normal Good
Coffee = Neutral good
The demand for Books increased when Bill had more money which makes it a normal good.
The demand for coffee did not change when new income came thereby making it a neutral good.
b. Book = Normal Good
Coffee = Inferior good
The demand for Books decreased when Bill had less money which makes it a normal good.
The demand for coffee increased when Bill's income reduced thereby making it an inferior good.
c. Book = Normal Good = Coffee
Both coffee and books are normal goods because Bill is buying less of them when their prices increase because it means that Bill has less income to spend on them.
d. More information needed.
We are unable to tell which goods are normal or inferior as we are not given information on the relative changes in demand as a result of income changing.
Item1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 Item 1Item 1 Time Remaining 2 hours 44 minutes 44 seconds02:44:44 On April 1, Garcia Publishing Company received $19,080 from Otisco, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year
Answer and Explanation:
The journal entry is shown below:
Unearned revenue $4,770
To fees earned $4,770
(Being the adjusting entry is passed)
The calculation is shown below:
= Received amount ÷ total months × calculated months
= $19,080 ÷ 36 months × 9 months
= $4,770
Hence, the above entry should be recorded and the same is to be considered
Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings. Which of the following statements is/are correct? I. The cost of the direct materials in 's products is considered a variable cost. II. The cost of the depreciation of 's plant machinery is considered a variable cost because uses an accelerated depreciation method for both book and income tax purposes. III. The cost of electricity for 's manufacturing facility is considered a fixed cost, even if the cost of the electricity has both variable and fixed components.
Answer:
The cost of the depreciation of plant's machinery is considered a variable cost because machinery uses an accelerated depreciation method for book and income tax purposes
Explanation:
A variable cost is an expense that is proportional to the production output. That is variable costs increase or decrease with respect to a company's production. This cost rise as production rises and falls as production falls. Costs of raw materials and packaging are examples of variable costs.
Here,
Corporation, a manufacturing company, is analyzing its cost structure in a project to achieve some cost savings.
The cost of the depreciation of plant's machinery is considered a variable cost because machinery uses an accelerated depreciation method for book and income tax purposes
Assume that the following events occurred at a division of Generic Electric for March of the current year:
1. Purchased $100 million in direct materials.
2. Incurred direct labor costs of $46 million.
3. Determined that manufacturing overhead was $76 million.
4. Transferred 90 percent of the materials purchased to work-in-process.
5. Completed work on 75 percent of the work-in-process. Costs are assigned equally across all work-in-process.
6. The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable.
Required:
Give the amounts for the following items in the Work-in-process account: (Do not round your intermediate calculations. Enter your final answers in millions rounded to 2 decimal places.)
Transfers-In ____ Million
Transfers-Out ______ Million
Ending Balance _____ Million
Answer:
Transfers-In
= Direct materials + Direct labor costs + Manufacturing overhead
= (90% * 100) + 46 + 76
= $212 million
Transfer-Out
= Cost transferred in * work completed
= 212 * 75%
= $159 million
Ending Balance
= Cost transferred in - Cost transferred out
= 212 - 159
= $53 million
Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition $ 800 per student Variable costs (tiles, supplies, and so on) 480 per student Fixed costs (advertising, salaries, and so on) 160,000 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $80,000 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 10 percent? Increased by 20 percent? 3. What would be the operating profit if variable costs per student decreased by 10 percent? Increased by 20 percent? 4. Suppose that fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected. What would be the operating profit for the year?
Answer:
Alameda Tile
a. The enrollment to enable Alameda Tile to break even = 500 students.
b. To make an operating profit of $80,000, number of students
= 750 students
c. With projected enrollment for the year of 800 students:
1. Operating profit = Total Contribution - Fixed Costs
= ($320 * 800) - $160,000
= $96,000
2. a) Operating Profit, if the tuition per student decreased by 10%.
New selling price = $720 which is $800 * (1 - 10%)
Variable cost 480
Contribution $240
Operating profit = Total Contribution - Fixed Costs
= ($240 * 800) - $160,000
= $32,000
2. b) Operating Profit, if the tuition per student increased by 20%.
New selling price = $960 which is $800 * (1 + 20%)
Variable cost 480
Contribution $480
Operating profit = Total Contribution - Fixed Costs
= ($480 * 800) - $160,000
= $224,000
3. a) Operating Profit, if variable costs per student decreased by 10%.
Selling price = $800
Variable cost 432 $480 * (1 - 10%)
Contribution $368
Operating profit = Total Contribution - Fixed Costs
= ($368 * 800) - $160,000
= $134,400
3. b) Operating Profit, if variable costs per student increased by 20%.
Selling price = $800
Variable cost 576 $480 * (1 + 20%)
Contribution $224
Operating profit = Total Contribution - Fixed Costs
= ($224 * 800) - $160,000
= $19,200
4. Operating profit, if fixed costs reduced by 10% and variable cost increased by 10%:
Selling price = $800
Variable cost 528 $480 * (1 + 10%)
Contribution $272
Operating profit = Total Contribution - Fixed Costs
= ($272 * 800) - $144,000 ($160,000 * (1 - 10%)
= $73,600
Explanation:
a) Data and Calculations:
Tentative Price and Cost Characteristics:
Tuition $ 800 per student
Variable costs (tiles, supplies, and so on) 480 per student
Fixed costs (advertising, salaries, and so on) 160,000 per year
Per unit Tentative
Selling price = $800
Variable cost 480
Contribution $320
b) Computation of break-even point:
To break-even with fixed cost of $160,000, sales unit will be equal to:
Fixed cost/Contribution per unit = $160,000/$320 = 500 students
c) Fixed cost + Target Profit /Contribution per unit:
= ($160,000 + $80,000)/$320
= $240,000/320
= 750 students