Whispering Company is planning to produce 1,100 units of product in 2020. Each unit requires 2.60 pounds of materials at $4.80 per pound and a half-hour of labor at $14.00 per hour. The overhead rate is 90% of direct labor. (a) Compute the budgeted amounts for 2020 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor $ Overhead $ (b) Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) Standard cost $
Answer:
Explanation:
a. The answer to question (a) goes thus:
Direct materials will be:
= (1,100 × $2.60) × $4.80
= $13,728
Direct labor will be:
= (1,100 × 1/2) × $14.00
= $7,700
Overhead will be:
= $7,700 × 90%
= $7700 × 0.9
= $6,930
b. The standard cost of one unit of product will be calculated as follows:
Direct materials = ($2.60 × $4.80) = $12.48
Add: Direct labor (1/2 × $14.00) = $7.00
Add: Overhead = ($7.00 × 90%) = $6.30
Standard cost = $12.48 + $7.00 + $6.30 = $25.78
Benny is 57 years old and is employed by the state as a school bus driver.He has an exemplary record,with no accidents in the past 27 years.Tom,aged 31,replaces Benny.Benny intends to file a discrimination claim under the Age Discrimination in Employment Act (ADEA)with the Equal Employment Opportunity Commission.If Benny lives in a state that has not waived sovereign immunity,which of the following statements is most likely to be true?
A) Benny has a valid claim and can sue the state because he can establish all of the elements of a prima facie case.
B) Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
C) Benny is a state employee and must file his claim pursuant to the Older Workers' Benefit Protection Act.
D) Benny does not have a claim for age discrimination under the ADEA as he was replaced by an employee who is older than 30.
Answer: B. Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Explanation:
Based on the information given in the question, since Benny lives in a state that has not waived sovereign immunity, thus simply means that Benny cannot file a claim for age discrimination under the ADEA because he is a state employee.
Eben though the Age Discrimination in the Employment Act protects workers that are 40 years and above and Benny is 57 years, it should be noted that in the states whereby sovereign immunity hasn't been waived, the state employees cannot due their employers as they're barred from doing so.
Therefore, the correct option is B.
Axil Corp. has not tapped the Deutsche mark public debt market because of concern about a likely appreciation of that currency and only wishes to be a floating-rate dollar borrower, which it can be at LIBOR + 1%. Bevel Corp. strongly prefers fixed-rate DM debt, but it must pay 1.5% more than the 6.25% coupon that Axil's DM notes would carry. Bevel, however, can obtain Eurodollars at LIBOR + 1/2%. Show work and explain.
1. What is the maximum possible cost savings to Axil from engaging in acurrency swap with Bevel?
2. What is the maximum possible cost savings to Bevel from engaging in acurrency swap with Axil?
Answer:
2%2%Explanation:
First step : determine total cost experienced in both cases
Total cost experienced by both firms without swap
= Axil floating dollar cost + Bevel fixed DM cost
= Libor + 1% + 7.75% = Libor + 8.75%
Total cost of funds by both firms when they are involved in a swap
= Bevel Floating dollar cost + Axil fixed Dm cost
= Libor + 0.5% + 6.25%
= Libor + 6.75%
1) the maximum possible cost savings to Axil Corp
Libor + 8.75% - Libor + 6.75% = 2%
2) the maximum possible cost savings to Bevel Corp
Libor + 8.75% - Libor + 6.75% = 2%
Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02, the 180-day forward rate is $2.00. The British interest rate is 6%, and the U.S. interest rate is 4% over the 180-day period. $351,210. $381,210. $371,210. $400,152
Answer:
$400,152
Explanation:
Given :
Amounts payable = 200,000 pounds
Fuds required = [tex]$\frac{200,000}{1+0.06 \times \frac{180}{360}}$[/tex]
= 194,174.76 pounds
Cost of dollars = 194,174.76 x 2.02
= $ 392,233
Therefore, the amount borrowed today in dollars = $ 392,233
The payment of loan after the 180 days = [tex]$392,233 \times \left( 1 + 0.04 \times \frac{180}{360}\right)$[/tex]
= $ 400,077.67
= $ 400,152 (rounding off)
The number of days taken in a year = 360
Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down method, all service department costs are eventually allocated to production departments. II. The order in which service department costs are allocated is important. III. After a service department's costs have been allocated to other departments, no costs are re-circulated back to that service department. Which of the above statements is (are) correct?
a. I, II, and III.
b. I only.
c. I and II.
d. II only.
e. I and III.
Answer:
The correct statements under the step-down method are:
a. I, II, and III.
Explanation:
The step-down method of allocating the costs of service departments is one of the three methods in use. The others include the direct method and the reciprocal method. With the direct method, service departments' costs are directly allocated to the production departments without any allocation to a service department. The reciprocal method is much more involved, using formulas and calculations. The step-down method allocates the service departments' costs to all the other service and production departments, except itself. This step is eventually followed until all the service departments' costs have been allocated to the production departments.
Project Z will result in unit sales of 2,250, at a price of $650 each. The variable cost (VC) of each unit is $325. The cost accountant will allocate overhead on the existing plant to Project Z at a rate of $21 per unit. A special piece of equipment must be leased for $75,000 per year for purposes related solely to Project Z. Project Z will reduce sales of the same company’s Project X by 900 units (selling price of $950 with variable cost of $510 and overhead allocation of $32 per unit). What is the total incremental cash flow for Project Z?
Marin Company’s general ledger indicates a cash balance of $22,340 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $1,500 returned to a customer and incurred service charges of $45. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $500 when in fact the check was for $550.
Required:
Calculate Marin’s correct September 30, 2016, cash balance.
Answer:
See below
Explanation:
With regards to the above, Marin's correct September 30, 2016 cash balance is computed below;
Balance as per cash book
$22,340
Add: Error in recording cash receipt
($550 - $500)
$50
Less: Bank service charge
($45)
Less: NSF check
($1,500)
Corrected cash book
$20,845
The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31.
January 13: Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate.
February 1: Arrange a three-month bank loan of $4.3 million with First Bank under the line of credit agreement. Interest at the prime rate of
7% is payable at maturity.
May 1: Pay the 7% note at maturity.
Record the appropriate entries, if any, on January 13, February 1, and May 1.
Answer: See explanation
Explanation:
The appropriate entries will be recorded thus:
13 Jan No entry
1 Feb Debit Cash account $4,300,000
Credit Note payable $4,300,000
(For note issued on borrowing)
1 May Debit Interest Expense $4,300,000 × 7% × 3/12 = $75250
Debit Notes payable $4,300,000
Credit Cash account $4,375,250
(For amount paid on maturity)
_____ allow job seekers to search several different sources at the same time. Indeed.com and Jobs2Careers.com are both examples of this type of Web site.
Job board Web sites
Meta job search engine Web sites
Corporate career center Web sites
Industry-specific Web sites
Answer:
I think the answer is job board websites
Explanation:
Answer:
Meta job search engine Web sites
Explanation:
I looked up each one of the possible answer's and Meta job search engine web sites makes the most amount of sense. I guess Job board web sites when I took the quiz and got it wrong so I know for sure that it isn't that one.
Gibson Guitar Corporation has chosen to build instruments one at a time, by hand. Gibson's century-old tradition of creating investment-quality instruments represents the highest standards of imaginative design and masterful craftsmanship. Gibson's CEO has found an inverse price-demand relationship exists. He states, "the more we charged, the more guitars we sold." Thus, consumers think that higher prices mean more quality in the case of _____.
Answer:
product
Explanation:
You got asked to analyze a 5 year project for your firm. The project produces an annual revenue of $28,500, but requires an annual labor and materials cost of $5,000. To initiate the project your firm must invest $20,000. The salvage value of the project is $5,000 and has a 5 year useful life.
Use straight line depreciation and a 40% income tax rate to compute the after tax cash flows and the IRR for the ATCF of this project.
Answer:
15,300
72.70%
Explanation:
After tax cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($20,000 - $5,000) / 5 = $3,000
($28,500 - $5,000 - $3000) x (1 - 0.4) + $3000 = $15,300
Terminal year cash flow = after tax cash flow + salvage value
$15,300 + $5,000 = $20,300
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $20,000.
Cash flow in year 1 - 4= $15,300
Cash flow in year 5 = $20,300
IRR = 72.70%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each phrase that follows with the term it describes. Clear All Includes gross profit on the income statement. Generally provides the most useful report for controlling costs. Treats fixed selling cost as a period cost. Required by generally accepted accounting principles. Absorption costing only Variable costing only Both absorption and variable costing
Answer and Explanation:
The matching is as follows
1. In the absorption costing, the gross profit is on the income statement
2. The variable cost provided the useful report with respect for controlling cost
3. The fixed selling cost be the period cost in both the absorption & variable costing
4. In absorption costing, it required by GAAP
In this way it should be matched
hence, the same would be relevant and considered
Why do governments usually support and regulate natural monopolies?
A two or more firms are cost-prohibitive
B competition makes prices lower in a natural monopoly
C owners of natural monopolies do not know how to manage them efficiently
D itis difficult to keep up with advancing technology
Answer:
c
Explanation:
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
A natural monopoly occurs due to the high start-up costs or a large economies of scale.
Natural monopolies are usually the only company providing a service in a particular region. there is no competition in a natural monopoly so prices tend to be high. government intervenes in a monopoly to ensure that customers are treated fairly
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 210 million shares at $1 par $ 210 Paid-in capital—excess of par 1,260 Paid-in capital—share repurchase 1 Retained earnings 1,200 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 9 million shares at $10 per share. On July 9, 2021, the corporation sold 3 million shares at $12 per share. On November 14, 2023, the corporation sold 3 million shares at $7 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to shareholders as cash dividends.
Answer:
TNL Systems Inc.
Journal Entries:
Retired shares:
February 5, 2021:
Debit Treasury stock $9
Debit Paid-in capital - excess of par $81
Credit Cash $90
To record the repurchase of shares.
Debit Common stock $9
Credit Treasury stock $9
To record the retirement of shares.
b) Viewed as treasury stock:
February 5, 2021:
Debit Treasury Stock $9
Debit Paid-in capital - excess of par $81
Credit Cash $90
To record the repurchase of 9 million shares at $10 each.
July 9, 2021:
Debit Cash $36
Credit Treasury Stock $3
Credit Paid-in capital - excess of par $33
To record the resale of 3 million treasury shares at $12 each.
November 14, 2023:
Debit Cash $21
Credit Treasury Stock $3
Credit Paid-in capital - excess of par $18
To record the resale of 3 million treasury shares at $7 each.
2a. Retired Shares
At December 31, 2020:
Shareholders' Equity ($ in millions)
Common stock, 210 million shares at $1 par $ 201
Paid-in capital—excess of par 1,161
Paid-in capital—share repurchase 1
Retained earnings 1,200
2b. Treasury stock:
At December 31, 2020:
Shareholders' Equity ($ in millions)
Common stock, 210 million shares at $1 par $ 210
Paid-in capital—excess of par 1,230
Paid-in capital—share repurchase 4
Retained earnings 1,200
Explanation:
a) Data and Calculations:
At December 31, 2020:
Shareholders' Equity ($ in millions)
Common stock, 210 million shares at $1 par $ 210
Paid-in capital—excess of par 1,260
Paid-in capital—share repurchase 1
Retained earnings 1,200
Transactions Analysis:
Retired shares:
February 5, 2021:
Common stock $9 Paid-in capital - excess of par $81 Cash $90
Treasury stock:
February 5, 2021:
Treasury Stock $9 Paid-in capital - excess of par $81 Cash $90
July 9, 2021:
Cash $36 Treasury Stock $3 Paid-in capital - excess of par $33
November 14, 2023:
Cash $ 21 Treasury Stock $3 Paid-in capital - excess of par $18
Treasury stock
Beginning balance $1
February 5, 2021 9
July 9, 2021 (3)
November 14, 2023 (3)
Ending balance $4
Paid-in capital - excess of par
Beginning balance $1,260
February 5, 2021 (81)
July 9, 2021 33
November 14, 2023 18
Ending balance $1,230
Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay. If this bridge is constructed, it will reduce the travel time from Buenos Aires, Argentina, to Sao Paulo, Brazil, by over 10 hours and has the potential to significantly improve the flow of manufactured goods between the two countries. The cost of the new bridge, which will be the longest bridge in the world, spanning over 50 miles, will be $700 million. The bridge will require an annual maintenance of $10 million for repairs and upgrades and is estimated to last 80 years. It is estimated that 550,000 vehicles will use the bridge during the first year of operation, and an additional 50,000 vehicles per year until the tenth year. These data are based on an a toll charge of $90 per vehicle. The annual traffic for the remainder of the life of the bridge life will be 1,000,000 vehicles per year. The Argentine government requires a minimum rate of return of 9% to proceed with the project.
(a) Does this project provide sufficient revenues to offset its costs?
(b) What considerations are there besides economic factors in deciding whether to construct the bridge
Answer:
Argentine Bridge Across the Rio de la Plata
a. The project provides sufficient revenues to offset its costs.
b. Non-economic factors deciding the bridge construction include:
Social connections and enhancement of relationships
Reduction of travel time
Infrastructural development
Explanation:
a) Data and Calculations:
Reasons for constructing the bridge:
Connect northern Argentine coast to the southern coast of Uruguay
Reduce travel time from Buenos Aires to Sao Paulo by 10 hours
Improve the flow of manufactured goods between the two countries
Longest bridge in the world, spanning over 50 miles
Cost of the new bridge = $700 million
Annual maintenance cost = 800 million ($10m * 80 years)
Total cost of new bridge $1,500 million
Minimum required rate of return = 9% of $1,500 million ($135 million)
Estimated Revenue from the new bridge:
Vehicles using the bridge:
1st Year to 10th year = 550,000 each
Basic number of vehicles using the bridge = 5,500,000
Additional vehicles per year until tenth year = 50,000
Total additional vehicles = 450,000 (50,000 * 9)
Total number of vehicles using the bridge for the first 10 years = 5,950,000 (5,500,000 + 450,000)
Annual vehicular traffic from 11th year to 80th year = 1 million per year
Total from 11th to 80th year = 70 million ( 1 million * 70)
Overall vehicular traffic throughout the bridge's life = 75,950,000 (70,000,000 + 5,950,000)
Toll charge per vehicle = $90
Total revenue = $6,835,500,000 (75,950,000 * $90)
Variable Fixed Output Marginal Total Total Marginal cost
Input Input units Physical Product of fixed variable cost
Variable input cost (dollars) (dollars)
$0 1 0 $500 0
1 1 10 (A) $500 $200 E
2 1 25 (B) $500 400 (G)
3 1 45 (C) $500 600 (H)
4 1 60 (D) $500 800 (I)
5 1 70 (E) $500 1000 (J)
What is the average total cost of producing 60 units of output?
a. $24.17
b. $21.67
c. $12.50
d. $1.33
Answer:
The average total cost of producing 60 units of output is:
b. $21.67
Explanation:
a) Data and Calculations:
Variable Fixed Output Marginal Physical Total Total Marginal
Input Input Product of Variable fixed variable Cost
input cost cost
0 1 0 $500 $0
1 1 10 (A) $500 $200 (F)
2 1 25 (B) $500 400 (G)
3 1 45 (C) $500 600 (H)
4 1 60 (D) $500 800 (I)
5 1 70 (E) $500 1000 (J)
The total cost of producing 60 units of output = $1,300 ($500 + $800)
Average total cost of producing 60 units of output = $21.67 ($1,300/60)
Sunland Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $259,000, and fixed costs $99,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. 2. Reduce variable costs to 65% of sales. Compute the net income to be earned under each alternative. 1. Net Income $enter a dollar amount 2. Net Income $enter a dollar amount Which course of action will produce the highe
Answer:
Option 2 produces the higher net income = $115,150
Explanation:
Option 1: Increase selling price by 12%
Selling price = 382,500/5,100=$75
$
Sales revenue (112%×75×5,100) 428,400
Variable cost sales (259,000)
Fixed cost cost ( 99,000)
Net income 70400
Option 2 $
Sales revenue 382,500,
Variable cost sales(65%× 259,000) (168,350 )
Fixed cost cost ( 99,000)
Net income 115,150
Option 2 produces the higher net income = $115,150
You are Heidi Ganahl, CEO and Founder of Camp Bow Wow, and you are intending to expand the brand to new global locations. If you are expanding into a country that values humane-oriented leadership, which of the following behaviors is most in line with that perspective?
a. You implement weekly team building session to create a collaborative work environment.
b. You involve all employees in all decisions, ensuring that everyone participates in the decision making process.
c. You articulate a dear vision for changing the organization so that it will focus on consistently delivering high levels of performance.
d. You provide compassionate support when an employee is having difficulty with family issues.
Answer:
a. You implement weekly team building session to create a collaborative work environment.
Explanation:
Humane-oriented leadership may be defined as that kind of leadership which reflects the supportive as well as considerate leadership. It also exhibits the qualities of generosity, compassionate and modesty towards the humane employees or the work force.
In the context, Camp Bow Wow is expanding its brand in a new country which values humane-oriented leadership qualities. So implementing a team building session every week in order to create a collaborative work environment reflects the qualities of humane-oriented leadership of the brand.
A. When You implement weekly team building sessions to make a collaborative work environment.
Humane-oriented leadership
Humane-oriented leadership is also defined as that sort of leadership that reflects the supportive further as considerate leadership. It also exhibits the qualities of generosity, compassion, and modesty towards the humane employees or the workforce.
In this context, When Camp Bow Wow is expanding its brand in a new country that is the values are human-oriented leadership qualities. So implementing a team-building session each week to form a collaborative work environment reflects the qualities of human-oriented leadership of the brand.
Thus, the Correct option is A
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17. Andy Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Andy uses the perpetual inventory system. The journal entries that Andy will make on October 1 will include: A) Debit to Accounts Receivable for $4,000 B) Credit to Merchandise Inventory for $5,800 C) Debit to Cost of Goods Sold for $5,800 D) Credit to Merchandise Inventory for $4,000 E) Credit to Net Income for $1,800
Answer:
D) Credit to Merchandise Inventory for $4,000
Explanation:
Date Account and Explanation Debit ($) Credit ($)
Account Receivable 5,800
Sale 5,800
(Recorded the sale on credit)
Cost of goods sold 4,000
Merchandise Inventory 4,000
(Recorded the cost of goods sold)
When bonds are issued at a premium and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:
Answer:
Greater than the interest expense
Explanation:
Based on the information given the CASH PAID is GREATER THAN THE INTEREST EXPENSE reason been that at every subsequent interest payment date the CASH PAYMENT does not change which means that the CASH PAID tend to remains the same but interest expense on the other hand tend to decreases at every interest payment date which inturn means that CASH PAID will be greater than the interest expense as the time passed by.
There are different kinds of bond. When bonds are issued at a premium and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is Less than the interest expense.
The effective interest method is often applied or used to discount, or write a bond off.The amount of the bond that is often discounted is said to be amortized to interest expense over the bond's life.
Therefore as a bond's book value increases, the amount of interest expense also increases.
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Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Ownership rights cannot be easily transferred
2. Owners have unlimited liability for corporate debts
3. Capital is more easily accumulated than with most other forms of organization.
4. Corporate income that is distributed to shareholders is usually taxed twice.
5. It is a separate legal entity. It has a limited life.
6. Owners are not agents of the corporation.
Answer: See explanation
Explanation:
1. Ownership rights cannot be easily transferred - False
The ownership rights can be transferred easily.
2. Owners have unlimited liability for corporate debts - False
They have a limited liability.
3. Capital is more easily accumulated than with most other forms of organization. - True
This is true as shares can be issued in order to generate capital.
4. Corporate income that is distributed to shareholders is usually taxed twice. -
True
5. It is a separate legal entity. - True
The corporate form of organization enjoys separate existence as their assets and the liabilities of the organization are different from their owners.
6. It has a limited life. - False
They've an unlimited life.
7. Owners are not agents of the corporation. - True
This is true. It should be noted that the owners aren't the agents of the corporation.
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 200 Variable cost per unit $ 80 Total annual fixed manufacturing and operating costs $ 600,000 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $240,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Answer and Explanation:
The computation is shown below:
1. The contribution margin per unit is
As we know that
Contribution margin per unit = Sale Price - Variable Cost
= $200 - $80
= $120
2. The break even sales in units is
= Fixed Cost ÷ Contribution margin per unit
= $600,000 ÷ $120
= 5,000 units
3. The sales units that earned $240,000 is
Required Sales (in units) = (Fixed Cost + Desired Profit) ÷ Contribution Margin Per unit
= ($600,000 + $240,000) ÷ $120
= 7,000 units
4. The margin of safety in units, sales dollars & percentage is
The Margin of Safety (in Units)
= Sales - Break even Sales
= (7,000 - 5,000) units
= 2,000 units
The Margin of Safety (in dollars)
= Margin of Safety (in units) × Sale Price
= 2,000 units × $200
= $400,000
Margin Of Safety (in percentage) is
= (Actual Sales - Break even sales) ÷ Actual Sales
= (7,000 units -5,000 units) ÷ 7,000 units
= 28.57%
On January 1, Cheyenne Corp. had 61,400 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 11,250 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.90 per share to stockholders of record on June 30.
July 10 Paid the $1.90 cash dividend. Dec. 1 Issued 5,000 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.
Required:
Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
Journal entry
Date Account & Explanation Debit Credit
June 15 Cash dividend $138,035
(61400+11250)*$1.9
Dividend payable $138,035
(To record dividend declared)
July 10 Dividend payable $138,035
Cash $138,035
(To record dividend paid)
Dec 15 Cash dividend $155,300
(61400+11250+5000)*2
Dividend payable $155,300
(To record dividend declared)
Shantel is trying to implement the use of data bars on a report that she created. She has selected the Conditional Formatting Rules Manager dialog box. What should she do next?
Edit a rule.
Create a rule.
Close the dialog box.
View the data bars.
Answer:
C
Explanation:
Answer:
b
Explanation:
b. Create a rule
Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs.
Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways.
Assembling Payroll
Billing Plant supervision
Digging trenches Product design
Janitorial Purchasing materials
Machine maintenance Selling
Machine setups Testing
Molding Welding
Packaging
Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways.
WATERWAYS CORPORATION
Activity Cost Estimated Expected Use
Pools Cost Drivers Overhead of Cost Drivers Actual Use
per Activity of Drivers
Irrigation
installation Labor cost $1,928,440 13,030 13,010
Machining (all
machine use) Machine hours 1,668,750 33,375,000 33,376,000
Customer
orders Number of
orders 28,600 2,600 2,562
Shipping none (direct) N/A N/A traced directly
Design Cost per design 763 7 6
Selling Number of sales
calls 306,000 20,400 20,610
How would you classify each of the following activities by level-unit level, batch level, product level, or facility level?
Testing of products (if all items are tested)
Testing of products (if all items are not tested)
Designing new products
Packaging
Molding
Assembling
Depreciation
Machine maintenance
Advertising
Equipment setups
Electricity required to run equipment
Requisitioning materials
Answer:
WATERWAYS CORPORATION
1. Overhead Rates and Actual Cost
Activity Cost Activity-based Actual Cost
Pools Overhead Rates Assigned
Irrigation Installation $148 ($1,928,440/13,030) $1,925,480 ($148 * 13,010)
Machining $0.05 $1,668,800
(all machine use) ($1,668,750/33,375,000) ($0.05 * 33,376,000)
Customer Orders $11 ($28,600/2,600) $28,182 ($11 * 2,562)
Design $109 ($763/7) $654 ($109 * 6)
Selling $15 ($306,000/20,400) $309,150 ($15 * 20,610)
2. Classification of activities by level, unit level, batch level, product level, or facility level:
Testing of products (if all items are tested) Unit level
Testing of products (if all items are not tested) Batch level
Designing new products Product level
Packaging Unit level
Molding Product level
Assembling Batch level
Depreciation Facility level
Machine maintenance Facility level
Advertising Product level
Equipment setups Batch level
Electricity required to run equipment Unit level
Requisitioning materials Unit level
Explanation:
a) Data and Calculations:
ABC system for Waterways.
WATERWAYS CORPORATION
Activity Cost Estimated Expected Use
Pools Cost Drivers Overhead of Cost Drivers Actual Use
per Activity of Drivers
Irrigation Installation Labor cost $1,928,440 13,030 13,010
Machining
(all machine use) Machine hours 1,668,750 33,375,000 33,376,000
Customer orders Number of orders 28,600 2,600 2,562
Shipping none (direct) N/A N/A traced directly
Design Cost per design 763 7 6
Selling Number of sales calls 306,000 20,400 20,610
Assume that Jordan Enterprises's radio broadcast license is renewable at the end of each 10-year term and management has provided evidence that approval of the renewal is highly probable. In this case, the broadcast license qualifies as anindefinite-life intangible asset and is not subject to amortization. Therefore, the firm carries the broadcast license at its original cost of $786,000.
On December 31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radiosubscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators, management believes that it is more likely than not that the broadcast license may be impaired. Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this indefinite-life intangible asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated forindefinite-life intangible asset at the end of the year and determine the impairment loss, if any. (If you selected "No" that an impairment loss is not indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus sign.)
2.) Next, prepare the journal entry required to record any impairment loss. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the tableblank.)
Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
33. A tripeptide has
A. 3 amino acids and 1 peptide bond
B. 3 amino acids and 2 peptide bond
6.3 amino acids and 3 peptide bond
D. 3 amino acids and 4 peptide bond I need the answer
Answer: Probably B.
Explanation:
Description: A tripeptide is a peptide derived from three amino acids joined by two or sometimes three peptide bonds. As for proteins, the function of peptides is determined by the consistuent amino acids and their sequence. The simplest tripeptide is glycylglycylglycine.
g The following totals for the month of April were taken from the payroll records of Kingbird Company. Salaries $144000 FICA taxes withheld 11020 Income taxes withheld 30000 Medical insurance deductions 5400 Federal unemployment taxes 380 State unemployment taxes 2590 The journal entry to record the monthly payroll on April 30 would include a debit to Salaries and Wages Expense for $144000. debit to Salaries and Wages Expense for $97580. credit to Salaries and Wages Payable for $144000. debit to Salaries and Wages Payable for $144000.
Answer:
debit to Salaries and Wages Expense for $144000
Explanation:
The journal entry to record the monthly payroll is given below
Salary & Wages Expenses $144,000
To FICA Tax withheld $11,020
To Income Tax withheld $30,000
To Medical Insurance deduction $5,400
To Salary & Wages Payable $97,580
(To record salary and wages expenses)
In this way, the journal entry should be made to record the monthly payroll as on April 30
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as follows: Direct materials $ 7 Direct labor 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 5 Unit product cost $ 21 An outside supplier has offered to provide the annual requirement of 2,900 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice ($3) per unit on average $3 per unit on average $6 per unit on average ($8) per unit on average
Answer: $6 per unit on average
Explanation:
Since 60% of the fixed manufacturing overhead can be eliminated when the parts are bought from an outside supplier, therefore (100% - 60%) = 40% are unavoidable when when it buys from suppliers outside.
Therefore, the unit product cost when the parts are bought will be:
= Purchase cost + Unavoidable fixed manufacturing overhead
= $13 + ( 40% * $5 )
= $15
Then, the financial advantage (disadvantage) will be:
= $21 - $15
= $6
Therefore, the correct option is $6 per Unit on average.
According to supporters of globalization,
a.
Free trade encourages countries to be economically independent.
b.
Free trade will result in countries specializing in the production of those goods and services they can produce most efficiently.
c.
The costs of free trade outweigh the benefits.
d.
The dislocation of jobs resulting from free trade can be avoided by increasing domestic wages.
e.
The labor supply is easily controlled on a global basis.
Answer:
According to supporters of globalization,
b.
Free trade will result in countries specializing in the production of those goods and services they can produce most efficiently.
Explanation:
Globalization has been described as a phenomenon that encourages increased interaction and integration of peoples, companies, and governments from different backgrounds. This phenomenon or process is propelled by free international trade and investments. The emerging advances in information technology has made globalization possible.