Answer:
Journal Entries:
September 1:
Debit Cash $3,700
Credit Service Revenue $3,700
To record the provision of services for cash.
September 2:
Debit Land $5,400
Credit Long-term Note Payable $5,400
To record the purchase of land from Crimson company.
September 8:
Debit Accounts Receivable $5,000
Credit Service Revenue $5,000
To record the provision of services on account.
September 10:
Debit Supplies $1,000
Credit Accounts Payable $1,000
To record the purchase of supplies on account.
September 13:
Debit Long-term Notes Payable $3,000
Credit Cash Account $3,000
To record the payment to Crimson Company on long-term note.
September 18:
Debit Cash Account $4,000
Credit Accounts Receivable $4,000
To record the cash receipt from customers.
September 20:
Debit Rent Expense $800
Credit Cash Account $800
To record the payment of September's rent.
September 30:
Debit Utilities Expense $1,500
Credit Cash Account $1,500
To record the payment of September's utility bill.
September 30:
Debit Salaries Expense $3,000
Credit Cash Account $3,000
To record the payment of salaries for the month.
September 30:
Debit Dividend $1,000
Credit Cash Account $1,000
To record the payment of cash dividend to shareholders.
Explanation:
a) PIRATES INCORPORATED
Trial Balance
As of September 1
Accounts Debits Credits
Cash $5,500
Accounts Receivable 1,500
Supplies 6,600
Land 10,200
Accounts Payable 6,500
Notes Payable 2,000
Common Stock 8,000
Retained Earnings 7,300
Totals $23,800 $23,800
b) Pirates' Journal entries are made as business transactions occur on a daily basis. They are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
Fandry Company has obtained the following data concerning a new product: Production Costs, Using traditional costing method $3.00 per unit Production Costs, Using activity-based costing method $5.00 per unit Nonproduction Costs, Using activity-based costing method $2.50 per unit Fandry Company wants the price of the new product to cover all costs plus a 100% markup. The production process used for the low volume product is very complicated and it has a higher proportion of indirect costs than direct costs. What price per unit should Fandry Company charge for the new product
Answer:
$15.00 per unit
Explanation:
Calculation for the price per unit that Fandry Company should charge for the new product
Using this formula
Price per unit for new product =Production Costs, Using traditional costing method per unit ×
Production Costs, Using activity-based costing method per unit
Let plug in the formula
Price per unit for new product=$3.00 per unit ×$5.00 per unit
Price per unit for new product=$15.00 per unit
Therefore the price per unit that Fandry Company should charge for the new product will be $15.00 per unit
Jacqul makes $35 an hour working as an accounting assistant. She works 40 hours each month.
Answer:
35x40=1,400
Explanation:
jacqul will make 1,400 dollars per month or 16,800 a year
Answer:
9800
Explanation:
35x40=1400
1400x7=9800
Exercise 10-19 (LO. 4) Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500 in legal fees for drafting the LLC's operating agreement and $3,000 in accounting fees for tax advice of an organizational nature, for a total of $9,500 of organizational costs. Candlewood also incurred $30,000 of preopening advertising expenses and $24,500 of salaries and training costs for new employees before opening for business, for a total of $54,500 of startup costs. The LLC wants to take the largest deduction available for these costs. If required, round any division to six decimal places and use in subsequent computations. Round your final answers to the nearest dollar. How much can Candlewood deduct as organizational expenses
Answer:
deduction for organizational expenses = $5,000
Explanation:
Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.
In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500
According to the Law of Supply and Demand, what will happen when supply increases?
A Quantity supplied will decrease
B Demand will decrease
C Productivity will decrease
D Prices will decrease
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer and Explanation:
The presentation of each of the financial statement is presented below:
1.
GARY COOPER CO.
Income Statement
For the Year Ended December 31, 2020
Particulars Amount
Revenues:
Service revenue $13,010
Total revenue (a) $13,010
Less: Expenses:
Salaries and wages expense $8,260
Rent expense $2,154
Depreciation expense $251
Interest expense $189
Total expenses (b) $10,854
Net Income (a - b) $2,156
2.
GARY COOPER CO.
Retained Earnings Statement
For the Year Ended December 31, 2020
Particulars Amount
Beginning balance of Retained earnings $12,730
Add: Net income $2,156
Less: Dividends -$4,420
Ending balance of Retained earnings $10,466
3.
GARY COOPER CO.
Balance Sheet
For the Year Ended December 31, 2020
Assets:
Cash $20,892
Accounts receivables $8,340
Prepaid rent $3,700
Equipment 19470
Less: Accumulated depreciation
on equipment ($6,315) $13,155
Total Assets $46,087
Liabilities and Stockholder's Equity:
Current Liabilities:
Accounts payable $6,892
Notes payable $7,120
Interest payable $189
Total Current liabilities $14,201
Stockholder's equity:
Common stock $21,420
Retained earnings $10,466
Total Stockholder's Equity $31,886
Total Liabilities and Stockholder's Equity $46,087
On January 1, 2020, Pearl Company makes the two following acquisitions.
1. Purchases land having a fair value of $360,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $606,621.
2. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $560,000 (interest payable annually). The company has to pay 11% interest for funds from its bank.
(a) Record the two journal entries that should be recorded by Pearl Company for the two purchases on January 1, 2020.
(b) Record the interest at the end of the first year on both notes using the effective-interest method.
Answer:
a) journal entry to record land purchase
January 1, 2020
Dr Land 360,000
Dr Discount on notes payable 246,621
Cr Notes payable 606,621
journal entry to record purchase of equipment
January 1, 2020
Dr Equipment 444,725.96
Dr Discount on notes payable 115,274.04
Cr Notes payable 560,000
present value of $560,000 using bank interest rate = $560,000 / 1.11⁸ = $242,998.84
annual interest payment = $560,000 x 7% = $39,200
PV of annuity = $39,200 x 5.1461 (PV annuity factor, 11%, 8 periods) = $201,727.12
total present value of notes payable = $242,998.84 + $201,727.12 = $444,725.96
discount on notes payable = $560,000 - $444,725.96 = $115,274.04
b) interest expense for the first notes payable (used to purchase land) = $360,000 x 11% = $39,600
December 31, 2021, accrued interest expense on notes payable 1
Dr Interest expense 39,600
Cr Discount on notes payable 39,600
interest expense for the second note
interest expense = $444,725.96 x 11% = $48,919.86
cash paid = $560,000 x 7% = $39,200
discount on notes payable = $48,919.86 - $39,200 = $9,719.86
December 31, 2021, accrued interest expense on notes payable 2
Dr Interest expense 48,919.86
Cr Cash (or interest payable) 39,200
Cr Discount on notes payable 9,719.86
The cost C and the revenue R for a brokerage firm depend on the number T of transactions executed. (Both C and R are measured in dollars.) It costs $730 per day to keep the office open, and brokers are paid an average of $25 per transaction. Also, $35 in fees are collected for each transaction. (a) Find a formula that gives C as a function of T. C(T) = (b) Find a formula that gives R as a function of T. R(T) = (c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost. 33 daily transactions
Answer:
C(T) = $730 + $25T
R(T) = $35T
T = 193 transactions
Explanation:
Given that:
C = cost ; R = revenue ; T = number of transactions
Amount paid per transaction = $25
Cost keeping office open = $730
Amount collected on each transaction = $35
(a) Find a formula that gives C as a function of T.
C(T) = Cost of keeping office open + (cost per transaction × number of transactions)
C(T) = $730 + $25T
(b) Find a formula that gives R as a function of T.
R(T) = (Amount collected per transaction * number of transactions)
R(T) = $35T
(c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost.
R = C + 1200
Substitute the value of R and C into the equation:
35T = 730 + 25T + 1200
35T - 25T = 730 + 1200
10T = 1930
T = 1930 / 10
T = 193 transactions
Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.
2 Paid office rent for the month $1,067.
3 Purchased architectural supplies on account from Burlington Company $1,541.
10 Completed blueprints on a carport and billed client $2,253 for services.
11 Received $830 cash advance from J. Madison to design a new home.
20 Received $3,320 cash for services completed and delivered to M. Svetlana.
30 Paid secretary-receptionist for the month $1,780.
30 Paid $356 to Burlington Company for accounts payable due.
1.) Journalize the transactions. (If no entry is required, indicate "No entry". Record journal entries in the order presented in the problem.)
2.) Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.)
3.) Prepare a trial balance on April 30, 201
Answer:
1)
April 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.
Dr cash 21,341
Cr common stock 21,341
April 1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.
no journal entry required
April 2 Paid office rent for the month $1,067.
Dr rent expense 1,067
Cr cash 1.067
April 3 Purchased architectural supplies on account from Burlington Company $1,541.
Dr supplies 1,541
Cr accounts payable 1,541
April 10 Completed blueprints on a carport and billed client $2,253 for services.
Dr accounts receivable 2,253
Cr service revenue 2,253
April 11 Received $830 cash advance from J. Madison to design a new home.
Dr cash 830
Cr unearned revenue 830
April 20 Received $3,320 cash for services completed and delivered to M. Svetlana.
Dr cash 3,320
Cr service revenue 3,320
April 30 Paid secretary-receptionist for the month $1,780.
Dr wages expense 1,780
Cr cash 1,780
April 30 Paid $356 to Burlington Company for accounts payable due.
Dr accounts payable 356
Cr cash 356
2)
Cash
debit credit
21,341
1.067
830
3,320
1,780
356
22,288
accounts receivable
debit credit
2,253
supplies
debit credit
1,541
accounts payable
debit credit
1,541
356
1,185
unearned revenue
debit credit
830
common stock
debit credit
21,341
service revenue
debit credit
2,253
3,320
5,573
rent expense
debit credit
1,067
wages expense
debit credit
1,780
3) debit credit
cash $22,288
accounts receivable $2,253
supplies $1,541
accounts payable $1,185
unearned revenue $830
common stock $21,341
service revenue $5,573
rent expense $1,067
wages expense $1,780
totals $28,929 $28,929
On July 1, 2018, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $140 million cash. At the date of acquisition of the stock, VB net assets had a total fair value of $480 million and a book value of $280 million. Of the $200 million difference, $44 million was attributable to the appreciated value of inventory that was sold during the last half of 2018, $128 million was attributable to buildings that had a remaining depreciable life of 10 years, and $28 million related to equipment that had a remaining depreciable life of 5 years. Between July 1, 2018, and December 31, 2018, VB earned net income of $60 million and declared and paid cash dividends of $52 million.
Required:
1. Prepare all appropriate journal entries related to the investment in 2016, assuming equity method.
2. Determine the amounts to be reported by Gupta
a. As an investment in Gupta's 2016 balance sheet.
b. As investment revenue or loss on Gupta's 2016 income statement
c. Among investing activities in Gupta's statement of cash flows.
Answer:
Please below and attached detailed solution.
Explanation:
1. Prepare all appropriate journal entries related to the investment in 2016, assuming equity method - Please see attached detailed solution
2. Determine the amounts to be reported by Gupta;
a. As an investment in Gupta's 2016 balance sheet = $126.4 million
b. As an investment revenue or loss on Gupta's 2016 income statement = $0.6 million
c. Among investing activities in Gupta's statement of cash flow = $140 million.
Please find attached solution to the questions and answers above.
Paul White, the CFO of Crane Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,015, accounts payable of $163,257, common stock of $313,000, retained earnings of $512,159, inventory of $212,300, goodwill and other assets equal to $78,656, net plant and equipment of $713,500, and short-term notes payable of $21,115. It also had accounts receivable of $141,258 and other current assets of $11,223. How much long-term debt does Crane Automotive have
Answer: $170,421
Explanation:
Using the Accounting equation;
Assets = Liabilities + Equity
Assets = Cash + Inventory + Goodwill and other assets + Net plant and equipment + Accounts receivable + Other current assets
= 23,015 + 212,300 + 78,656 + 713,500 + 141,258 + 11,223
= $1,179,952
Equity
= Common stock + Retained earnings
= 313,000 + 512,159
= $825,159
Liabilities = Assets - Equity
Current Liabilities + Long term debt = Assets - Equity
Long term debt = Assets - Equity - Current Liabilities
= 1,179,952 - 825,159 - (163,257 + 21,115)
= $170,421
The CEO would like to see higher sales and a forecasted net income of $1,000,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization increase by 6% and interest expenses will increase by 5%. The tax rate, which is 40%, will remain the same. (Note that while the tax rate remains constant, the taxes paid will change.) What level of sales would generate $1,000,000 in net income? If necessary, round your answer to the nearest dollar at the end of the calculations.
Answer:
The numbers are missing, so I looked for a similar question, but the ones I found had different numbers. I hope it can help you understand how to solve this one:
Hermann Industries is forecasting the following income statement:
sales $8,000,000 operating costs excluding depr & amort. 4,400,000 EBITDA $3,600,000 depreciation & amortization 800,000 EBIT 2,800,000 Interest 600,000 EBT 2,200,000 Taxes (40%) 880,000 Net income 1,320,000The CEO would like to see higher sales and a forecasted net income of 2,500,000. Assume that operating costs (excluding depreciation and amortization) are 55% of sales and that depreciation and amortization and interest expenses will increase by 10%. the tax rate, which is 40%, will remain the same. what level of sales would generate 2,500,000 in net income?
We have to first calculate net income before taxes:
net income = net income before taxes x 60%
net income before taxes = $2,500,000 / 0.6 = $4,166,667
now, net income before taxes = EBIT - interests
$4,166,667 = EBIT - ($600,000 x 110%)
EBIT = $4,166,667 + $660,000 = $4,826,667
now it's EBITDA turn:
EBITDA = EBIT + depreciation and amortization
EBITDA = $4,826,667 + ($800,000 x 110%) = $5,706,667
finally:
total sales = EBITDA + operating costs excluding depr & amort., we can replace total sales by X
X = EBITDA + 0.55X
0.45X = $5,706,667
X = $5,706,667 / 0.45 = $12,681,482.22 ≈ $12,681,482
sales level that will result in a $2,500,000 net income = $12,681,482
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $39,000. The cab has an expected salvage value of $4,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 48,000 miles the first year and 51,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2
Answer:
depreciation expense year 2 = $8,925
book value end of year 2 = $21,675
Explanation:
depreciable value = $39,000 - $4,000 = $35,000
total miles driven = 200,000
depreciation expense per mile driven = $35,000 / 200,000 miles = $0.175 per mile driven
depreciation expense year 1 = 48,000 x $0.175 = $8,400
book value end of year 1 = $39,000 - $8,400 = $30,600
depreciation expense year 2 = 51,000 x $0.175 = $8,925
book value end of year 2 = $30,600 - $8,925 = $21,675
Streamsong Credit Bank is offering 5.4 percent compounded daily on its savings accounts. Assume that you deposit $5,100 today. a. How much will you have in the account in 6 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) b. How much will you have in the account in 12 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.) c. How much will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)
Answer & Explanation:
a. How much will you have in the account in 6 years?
The formula for Compound Interest is;
= Amount deposited ( 1 + rate)^no of periods
Rate is a yearly rate so daily rate is;
= 5.4%/365
No. of periods;
= 365 * 6
= 2,190 days
= 5,100 * ( 1 + 5.4%/365)^2,190
= $7,051.33
b. How much will you have in the account in 12 years?
No. of periods = 365 * 12
= 4,380 days
= 5,100 * ( 1 + 5.4%/365)^4,380
= $9,749.27
c. How much will you have in the account in 24 years?
No. of periods = 365 * 24
= 8,760 days
= 5,100 * ( 1 + 5.4%/365)^8,760
= $18,636.92
Which of the following are reasons that the short-run aggregate supply curve slopes upward?
Answer:
The short-run aggregate supply curve slopes upward because of all of the following reasons except a. in the short run, as prices of final goods and services increase, some firms are very slow to adjust their prices, thus their sales increase. b. in the short run, an unexpected change in the price of an important resource can change the cost to firms.
Hope this helps :)
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $1,060,000. Lonergan needs approximately $640,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:
a. Borrow $640,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 9% interest on the unpaid balance of the note at the beginning of the period.
b. Transfer $690,000 of specific receivables to the bank without recourse. The bank will charge a 2% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for:
a. alternative a.
b. alternative b.
2. Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for:
a. alternative a.
b. alternative b.
Answer and Explanation:
The Journal entry is shown below:-
1. a. Cash Dr, $640,000
To Notes Payable $640,000
(Being notes payable is recorded)
b. Cash Dr, $676,200
Loss on transfer of receivable Dr, $13,800 ($390,000 × 2%)
To Account receivable $690,000
(Being accounts receivable is recorded)
2. a. Cash Dr, 848,000
To Account Receivable $848,000 ($1060,000 × 80%)
(Being account receivable is recorded)
b. Cash Dr, $158,000 ($1060,000 × 80%) - $690,000
To Account Receivable $158,000
(Being account receivable is recorded)
Explain the following statement and answer to corresponding question. It is worth 15 points. "In a competitive model without consideration of space (distance) we would expect competition to lead to identical prices but when we include spatial elements we expect competition to lead to different delivered prices." If individuals have to pay a different price for products because they live a different distance from the factory do you think this is an example of discrimination of prices? Why or why not?
Answer:
In marketing, price discrimination refers to selling the same product to different buyers at different prices depending on each buyer's purchasing power or preferences which result in them being able and willing to pay different prices. E.g. a movie theater that charges different prices depending on the age of the movie goers.
In this case, the fact that a factory is located far away from your house might result in a higher price due to delivery costs, but that doesn't meant that it is using price discrimination. E.g. I just purchased a new refrigerator online and I had to pay a delivery fee that increased its price because the seller is from another state. I purchased the refrigerator from that retailer because it lower prices including delivery costs, but someone that purchased it from the same city will probably pay even less than me. But it is just logistics, since I live far away I have to wait 3 days for delivery and pay for it.
7. What is not an example of a spending mistake?
A Paying only the minimum payments on your credit card each month.
B Spending more than you make.
C Paying all of your bills on time. W
D Paying your cable bill late.
Jason sell appliances at Best Buy. He earns 12% on his total sales for the
week. Last week he made $690.48, what were his total sales for the week?
$3246.38
$1380.96
$5754
$7234.98
Answer:
$5754
Explanation:
Jason earns a 12% commission on total sales.
If he earned $690.48 last week, it means that 690.48 was equivalent to 12% of total sales.
i.e., 690.48 = 12% of total sales
Total sales = 100%
If 12% = 690.48
100% =690.48/12 x 100
=57.54 x 100
=$ 5,754
Cost data for D5-6b Company for the most recent year appears below: Direct labor ....................................... $138,000 Insurance on the factory building .................. $ 22,000 Indirect materials ................................. $ 53,000 Sales commissions .................................. $ 80,000 Factory supervisor's salary ........................ $ 64,000 Depreciation on copier in the sales office ......... $ 21,000 Property tax on the factory building ............... $ 13,000 Wages paid to factory janitors ..................... $ 40,000 Advertising ........................................ $ 46,000 CEO's Salary ....................................... $149,000 Utilities on the factory ........................... $ 37,000 D5-6b Company reported the following inventory balances during the most recent year: January 1 December 31 Direct materials $82,000 $68,000 Work in process $27,000 $44,000 Finished goods $91,000 $51,000 During the most recent year, D5-6b Company purchased direct materials totaling $148,000 and reported sales revenue of $500,000. Calculate D5-6b Company's cost of goods manufactured for the most recent year.
Answer:
cost of goods manufactured= $512,000
Explanation:
First, we need to calculate the direct materials used, direct labor, and manufacturing overhead:
Direct material= 82,000 + 148,000 - 68,000= $162,000
Direct labor= 138,000
Overhead= Insurance on the factory building + Indirect materials + Factory supervisor's salary + Property tax on the factory building + Wages paid to factory janitors + Utilities on the factory
Overhead= 22,000 + 53,000 + 64,000 + 13,000 + 40,000 + 37,000
Overhead= $229,000
Now, to calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 27,000 + 162,000 + 138,000 + 229,000 - 44,000
cost of goods manufactured= $512,000
Many companies have a _____ that their employees are responsible for abiding by. code of unethics code of ethics set of rules set of laws
Answer:
Code of Ethics
Explanation:
Answer: B) code of unethics
Explanation:
E4-2 (Static) Assigning Costs to Activity Cost Pools, Identifying a Cost Driver [LO 4-2, 4-3] Name of Budgeted CostBudgeted Cost Plant insurance$86,100 Testing raw materials 45,000 Manufacturing equipment setup 7,200 Quality inspections 57,000 Property taxes 23,000 Electricity, plant 14,000 Electricity, manufacturing equipment 51,250 Depreciation, plant 18,800 Depreciation, manufacturing equipment 36,700 Maintenance worker (manufacturing equipment) 22,500 Indirect labor (manufacturing equipment setup) 8,300 Design engineering 220,000 Required: 1. Assign each of the budgeted costs above to one of the following activity cost pools: Engineering Equipment setup Quality control Factory facilities Manufacturing equipment 2. Compute the total cost of each pool. 3. Indicate whether the activities in each
Answer:
Find attached the answer and format.
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 123,000. Units completed and transferred out: 161,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $56,000. Costs in beginning Work in Process - Conversion: $61,850. Costs incurred in February - Direct Materials: $375,730. Costs incurred in February - Conversion: $612,150. Calculate the cost per equivalent unit of conversion.
Answer:
cost per equivalent unit of conversion = $4.10
Explanation:
beginning WIP = 38,000
100% complete for materials
55% complete for conversion, 45% remaining to be completed
units started and completed = 123,000
units completed and transferred out = 161,000 (including 38,000 of beginning WIP)
ending WIP = 36,500
100% complete for materials
25% complete for conversion
equivalent units processed during this period:
materials = 123,000 + 36,500 = 159,500 EUP
conversion costs = (38,000 x 0.45) + 123,000 + (36,500 x 025%) = 149,225 EUP
cost per equivalent unit of conversion = $612,150 / 149,225 EUP = $4.102194672 ≈ $4.10
motors are packaged for sale in a certain warehouse. The motors sell for $100 each, but a double-your-money-back guarantee is in effect for any defectives the purchaser may receive (i.e. the seller pays buyer $200 for any defective item). Find the expected net gain for the seller if the probability of any one motor being defective is 0.08. (Assume that the quality of any one motor is independent of that of the others.) Show all work by defining the variables of interest and its distributions.
Answer:
$840
Explanation:
the question misses an important detail, number of motors.
I used 10 as the total number of cars. from the solution i believe you would be able to solve any other problem of this sort yourself.
n = 10
p = 1-probability of any 1 motor being defective
= 1-0.08
= 0.92
going further in solving this problem, i will use the binomial distribution
we have expected value as;
Σxp(x)
= $100 x p(of 100) - $100 x p(of losing 100)
= 100(0.92) - 100(0.08)
= 92 - 8
= $84
from here we multiply 84$ by n
remember n = total number of cars = 10
10 x $84
= $840
You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in Treasury bills? (Formula: Portfolio beta = w1 * beta 1 + w2 *beta 2; w1+w2 = 1) Round your answer to the integer. Note that the answer needs to be in PERCENTAGE. Weight in stock = Blank 1. Fill in the blank, read surrounding text. 67 % Weight in T-Bill = Blank 2. Fill in the blank, read surrounding text. 33 %
Answer:
33.33%
Explanation:
Let weight of T-bill be x, therefore weight of stock will be 1-x
Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills
1 = (1-x)*1.5 + x*0
1 = 1.5 - 1.5x
x = 0.5/1.5
x = 0.3333
x = 33.33%
Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.
Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,450 monthly. The contract currently sells for $114,000. a. What is the monthly return on this investment vehicle? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the APR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. 1.27%
b. 15.24%
c. 16.35%
Explanation:
a. What is the monthly return on this investment vehicle?
The formula for the value of a Perpetuity is;
Value = Payment/ rate
Rate = Payment/ Value
Rate = 1,450/114,000
= 0.0127
= 1.27%
b. What is the APR?
APR is the annual rate. The above figure is the monthly rate.
APR = Monthly rate * 12
= 1.27 * 12
= 15.24%
c. What is the effective annual return?
Effective annual return = [1 + (APR/n)]^n – 1
n is the number of compounding periods which is 12 here for monthly compounding.
= [1 + (15.24%/12)]^12– 1
= 16.35%
Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. In 2011, Hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. Suppose the following data show the number of cars in service (1,000s) and the annual revenue ($ millions) for six smaller car rental companies. Company Cars (1,000s) Revenue ($ millions) Company A 11.5 118 Company B 10.0 137 Company C 9.0 100 Company D 5.5 37 Company E 4.2 42 Company F 3.3 34
Answer:
The question does not include any requirements, so I looked for similar questions:
Use the least squares method to develop the estimated regression equation. For every additional car placed in service, estimate how much annual revenue will change.1) Y = -14.95 + 12.82X
2) for every 1 thousand cars put into service, revenue should increase by $12.82 million.
See attached PDF for calculations
What is a sales lead?
A. An employee on the customer service team who deals with existing customers
B. A sales person who works on a residual commission structure
C. An expert in Maslow's hierarchy of needs
D. A potential customer who has shown interest in the company's product
Please select the best answer from the choices provided
Answer:
D.
A potential customer who has shown interest in the company's product
Explanation:
edge. 2021
A potential customer who has shown interest in the company's product is a sales lead. Thus, option D is correct.
What is a sales lead?A possible sales relationship, person, or business that indicates interest in your services or products is known as a sales lead. Leads are often acquired through being referred by an existing client or by responding directly to press or promotion.
The phrase refers to a prospective buyer who now has taken part mostly in the company’s products. This indicates that if a purchaser is offered the right incentives and incentives, he may readily sign up as a client of the business.
Where the person has shown interest in buying the product therefore this person will be considered a prospective consumer. Therefore, option D is the correct option.
Learn more about sales lead, here:
https://brainly.com/question/1400724
#SPJ2
6. Blackberry announces that they are going bankrupt within the next 6 months. What happens to the demand for Blackberry
phones?
CostPercent Complete Materials costs$ 5,80050% Conversion costs$ 6,50030% A total of 7,700 units were started and 6,600 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs$ 85,300 Conversion costs$ 168,000 The ending inventory was 70% complete with respect to materials and 10% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:
Answer:
$11.49
Explanation:
The computation of cost per equivalent unit for materials for the month in the first processing department is shown below:-
Equivalent units for materials
= Units completed and transferred out + Units in ending inventory
(6,600 × 100%) + ((800 + 7,700 - 6,600) × 70%)
= 6,600 + $1,330
= 7,930 units
Cost per equivalent unit for materials
= (5,800 + $85,300) ÷ 7,930
= $11.49
The following information is available for Trinkle Company for the month of June:1. The unadjusted balance per the bank statement on June 30 was $81,5002. Deposits in transit on June 30 were $3,1503. A debit memo was included with the bank statement for a service charge of $404. A $5,611 check written in June had not been paid by the bank5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50RequiredDetermine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$79,039
Explanation:
The computation of the true cash balance is shown below:
Particulars Amount
Unadjusted Balance
as Per Bank Statement on Jun 30 $81,500
Add: Deposit in Transit Jun $3,150
Les : Outstanding Check Jun30 -$5,611
True Cash Balance As on Jun 30 $79,039
We simply applied the above format so that the correct value could come