Answer:
Part a.
October Labor Rate Variance (2600) unfavorable
October Labor Efficiency Variance 6440 favorable
Labor Cost Variance For October 3840 favorable
November Labor Rate Variance (4250) unfavorable
November Labor Efficiency Variance (45080) unfavorable
Labor Cost Variance For November 49330 unfavorable
Part b.
Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.
Explanation:
Direct Labor Rate Variance For October
Time * Rate = Amount
Actual Hours Worked 13000 * 16.3 actual = 211900
Actual Hours Worked 13000 * 16.10 standard = 209300
Labor Rate Variance 0.2 (2600) unfavorable
When actual rate is greater than the standard rate the variance is unfavorable.
Direct Labor Rate Variance For November
Time * Rate = Amount
Actual Hours Worked 17000 * 16.35 actual = 277950
Actual Hours Worked 17000 * 16.10 standard = 273700
Labor Rate Variance 0.25 (4250) unfavorable
When actual rate is greater than the standard rate the variance is unfavorable.
Direct Labor Efficiency Variance for October
Time * Rate = Amount
Actual Hours Worked 13000 * 16.1 standard = 209300
Standard Hours Allowed 13400 * 16.10 standard = 215740
( 2* 6700)
Labor Efficiency Variance 400 6440 favorable
When actual hours are less than the standard hours allowed the variance is favorable.
Direct Labor Efficiency Variance for November
Time * Rate = Amount
Actual Hours Worked 17000 * 16.1 standard = 273700
Standard Hours Allowed 14200 * 16.10 standard = 228620
( 2* 7100)
Labor Efficiency Variance 2800 (45080) unfavorable
When actual hours are more than the standard hours allowed the variance is unfavorable.
Labor Cost Variance For October
Standard hours * standard rate- Actual hours * actual rate
13400 * 16.10- 13000 * 16.3
= 215740 -211900
=3840 favorable
Labor Cost Variance For November
Standard hours * standard rate- Actual hours * actual rate
14200 * 16.1 - 17000 * 16.35
= 228620 - 277950
=49330 unfavorable
Direct labor Efficiency variance for November will be investigated further as it varies more than 5 % 0f actual direct labor cost.
45080> 5% of 277950
5% of 277950 = 13897.5
13897.5 > 45080
Under an installment contract, a buyer can:
A. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
B. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that
installment alone.
C. Reject an installment no matter how minor the nonconformance is
D. None of these answers
Answer:
A. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, installment contract, etc.
Total installment price is the total amount a consumer or customer end up paying for goods and services.
Mathematically, it can be calculated by using the formula below;
Total Installment Price = ([Monthly payment] × [No. of payments] + Down payment)
Hence, you multiply the monthly revenue by the amount of payments and add it to the down the payment.
Under an installment contract, a buyer can reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure. This is in accordance with the uniform commercial code (UCC).
The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.
There are special rules known as the special business standards that are set up by UCC governing the merchants and the sales of goods in the Article 2 of the uniform commercial code.
What should be the primary objective of managers?
Answer:
to manage everything in that business
Answer:
In servant leadership, the organization recognizes employees as experts in their field and work to help them work efficiently. No matter which type of management style is used by an organization, the main objective of managers is to help employees reach company goals and maintain company standards and policies.
HOPE U UNDERSTAND
Put the following statements in the correct order to summarise the sequence of events in moving from the short-run to the long-run in perfect competition.
Answer:
ok
Explanation:
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,349,100 of merchandise (that had cost $981,900) on credit, terms n/30. Wrote off $20,200 of uncollectible accounts receivable. Received $674,200 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.70% of accounts receivable would be uncollectible.Year 2 e. Sold $1,514,600 of merchandise (that had cost $1,299,000) on credit, terms n/30. f. Wrote off $26,700 of uncollectible accounts receivable. g. Received $1,110,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) View transaction list Journal entry worksheet 5 In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit h. Clear entry View general journal Record entry
Answer:
1). Account receivables A/c Dr. $1,345,000
To sales revenue A/c $1,345,000
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $975,700
To merchandise inventory A/c $975,700
(Being the cost is recorded)
2. Allowance for doubtful accounts A/c Dr. $19,400
To accounts receivable A/c $19,400
(Being the written off is recorded)
3. Cash A/c Dr. $670,800
To accounts receivables A/c $670,800
(Being cash received is recorded
1. .Account receivable A/c Dr. $1,529,400
To sales A/c $1,529,400
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $1,332,100
To merchandise inventory A/c $1,332,100
(Being the cost of goods sold is recorded)
2. Allowance for doubtful accounts A/c Dr. $27,000
To Account receivable A/c $27,000
(Being the written off amount is recorded)
3. Cash A/c Dr. $1,391,600
To account receivable A/c $1,391,600
(Being the cash received is recorded)
4. Bad-debts expense A/c Dr. $28,000
(765,600 × 1% + 20,344)
To allowance for doubtful accounts A/c $28,000
(Being the bad debt expense is recorded)
Working note:
Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600
Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800
Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000
= 6,548 - 27,000
= 20,344 Debit BalanceThe journal entries are shown below:
According to the scenario, computation of the given data are as follows:-
Journal Entries for 1st year
1). Account receivables A/c Dr. $1,345,000
To sales revenue A/c $1,345,000
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $975,700
To merchandise inventory A/c $975,700
(Being the cost is recorded)
2. Allowance for doubtful accounts A/c Dr. $19,400
To accounts receivable A/c $19,400
(Being the written off is recorded)
3. Cash A/c Dr. $670,800
To accounts receivables A/c $670,800
(Being cash received is recorded)
4. Bad-debts expense A/c Dr. $38,389
(1,345,000-19,400-670,800) × 2.90+ $19,400
To allowance for doubtful accounts A/c $38,389
(Being the bad debt expense is recorded)
Journal Entries for 2nd year
1. .Account receivable A/c Dr. $1,529,400
To sales A/c $1,529,400
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $1,332,100
To merchandise inventory A/c $1,332,100
(Being the cost of goods sold is recorded)
2. Allowance for doubtful accounts A/c Dr. $27,000
To Account receivable A/c $27,000
(Being the written off amount is recorded)
3. Cash A/c Dr. $1,391,600
To account receivable A/c $1,391,600
(Being the cash received is recorded)
4. Bad-debts expense A/c Dr. $28,000
(765,600 × 1% + 20,344)
To allowance for doubtful accounts A/c $28,000
(Being the bad debt expense is recorded)
Working note:
Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600
Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800
Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000
= 6,548 - 27,000
= 20,344 Debit Balance
Explanation:
Oriole Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2700 shares of Ayayai Company (10%) for $68850 cash. June 1 Received cash dividends of $3 per share on Ayayai stock. Oct. 1 Sold 1890 shares of Ayayai stock for $51630 less brokerage fees of $600. The entry to record the sale of the stock would include a
Answer and Explanation:
The journal entry for recording the sale of the stock is shown below:
Cash Dr ($51,630 - $600) $51,030
To Investment ($68,850 × 1890 ÷ 2700) $48,195
To Gain on sale of investment $2,835
(Being the sale of the stock is recorded)
Here the cash is debited as it increased the assets, the investment and gain is credited as it reduced the assets but increased the revenue
you start out with $2,000 in a savings account and save $100 a month for 10 years and the account has a 2.5% interest rate. based on that calculation how much interest would you earn?
Answer: 25%
Explanation:
On June 30, 2020, Pier1 Inc. issued 500 shares of $1 common stock for $15 per share. On June 30, 2020, Pier5 Inc. reacquired 100 shares of common stock at $12 per share and immediately retired the shares. On December 15, 2020, Pier5 Inc. reacquired 200 shares of common stock at $19 per share and immediately retired the shares. By what amount did retained earnings decrease as a result of the reacquisition of common stock on December 15, 2020
Answer:
DON'T USE THAT LINK ITS A MALWARE SPAM
06-14 Calculating EAR [LO4] First National Bank charges 13.1 percent compounded monthly on its business loans. First United Bank charges 13.4 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan
Answer:
13.92%
13.85%
Explanation:
Effective annual interest = (1 + periodic interest)^m - 1
m = number of compounding
Periodic interest = annual interest rate / number of compounding
(1 + 0.131/12)^12 - 1 = 13.92%
(1 + 0.134/2)^2 - 1 = 13.85%
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 600 units at $10 on January 8, and (3) 930 units at $11 on January 29. Assume 1,130 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 800 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Answer:
(a) FIFO
Cost of Goods Sold = $6,800
Ending Inventory = $12,230
(b) LIFO
Cost of Goods Sold = $7,400
Ending Inventory = $11,630
(c) weighted average cost
Cost of Goods Sold = $7,040
Ending Inventory = $11,990
Explanation:
Perpetual inventory method ensures that cost of sales and inventory value is determined after each and every transaction.
FIFO
This method assumes that the units to arrive first, will be sold first. This means the cost of sales is based on the earlier (old) prices and inventory valuation is based on recent (later) prices.
Cost of Goods Sold = 400 x $7 + 400 x $10 = $6,800
Ending Inventory = 200 x $10 + 930 x $11 = $12,230
LIFO
This method assumes that the units to arrive last , will be sold first. This means the cost of sales is based on the recent (later) prices and inventory valuation is based on earlier (old) prices.
Cost of Goods Sold = 600 x $10 + 200 x $7 = $7,400
Ending Inventory = 200 x $7 + 930 x $11 = $11,630
Weighted Average Cost Method
A new unit cost is calculated with each and every purchase made. This new unit cost is then used to determine the cost of goods sold and the value of inventory.
New Unit Cost - 8 jan = (400 x $7 + 600 x $10) ÷ 1,000 = $8.80
New Unit Cost - 29 jan = (200x $8.80 + 930 x $11) ÷ 1,130 = $10.61
therefore,
Cost of Goods Sold = 800 x $8.80 = $7,040
Ending Inventory = 1,130 x $10.61 = $11,990
Economics
Many manufacturing companies are investing in robots to complete the work traditionally done by employees. How would this have an impact on the companies' fixed and variable costs?
Investment in robots will increase the fixed cost and reduce the variable cost.
What is the impact on fixed and variable cost?
Fixed cost is the cost that remains constant regardless of the level of output. Variable cost is the cost that is determinant on the level of output. It increases with the level of output.
Investment in robots would be expensive for the firm. This would increase the fixed cost but cost of using the robots do not depend on their output. Thus variable cost will be reduced.
On the other hand, using employees would reduce fixed cost and increase the variable cost. Employees are usually paid based on their level of output. This would increase the variable cost. There is little or no upfront cost required with employing labor. Thus fixed cost is low.
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It doesn't surprise you at all that Alex is a bit confused by what these activities mean. You explain the following: Cash flows from operations are cash inflows and outflows caused by the restaurant's main business -- selling food and beverages and catering. Cash flows from investing are payments made to acquire long-term assets or cash received from the sale of long-term assets. Cash flows from financing reflect changes in debt, loans, or dividends. You're still getting a blank look from Alex, so you give him a series of examples to help him understand the different categories. Consider each of the following items and determine whether it affects cash flows from operating, investing, or financing, and whether it is a cash inflow or a cash outflow. Then drag and drop that item into the correct bucket and click Submit. 1. The restaurant buys a new 10-burner range and convection oven. 2. You pay off the mortgage on the building. 3. You obtain a short-term loan from the bank. 4. You pay the supplier for a shipment of meat. 5. You sell a used walk-in cooler. 6. A company pays for its catering bill by giving you a check. 7. You send in your quarterly estimated income tax payment. 8. The restaurant buys a new delivery truck to be used in its growing catering business. 9. You incorporate the restaurant and sell shares of stock. 10. You purchase the building next door to the restaurant so you can add more seating area for customers.A. Cash Inflow from Operations B. Cash Outflow from OperationsC. Cash Inflow from InvestingD. Cash Outflow from InvestingE. Cash Inflow from FinancingF. Cash Outflow from Financing
Answer:
Statement of Cash Flows Activities
1. Investing activity: D. Cash Outflow from Investing
2. Financing activity: F. Cash Outflow from Financing
3. Financing activity: E. Cash Inflow from Financing
4. Operating activity: B. Cash Outflow from Operations
5. Investing activity: C. Cash Inflow from Investing
6. Operating activity: A. Cash Inflow from Operations
7. Operating activity: B. Cash Outflow from Operations
8. Investing activity: D. Cash Outflow from Investing
9. Financing activity: E. Cash Inflow from Financing
10. Investing activity: D. Cash Outflow from Investing
Explanation:
a) Data and Options:
A. Cash Inflow from Operations
B. Cash Outflow from Operations
C. Cash Inflow from Investing
D. Cash Outflow from Investing
E. Cash Inflow from Financing
F. Cash Outflow from Financing
All the terms are already explained in the scenario.
Answer T or F to the following: _____ In general, job shop operations are larger than line flow operations. _____ In general, job shop operations use more general purpose equipment than line flow operations. _____ In general, job shop operations have higher variety of output than line flow operations. _____ In general, job shop operations have lower labour content than line flow operations. _____ In general, job shop operations are less flexible than line flow operations. _____ In general, job shop operations are more likely to measure their capacity by their outputs. _____ In general, job shop operations have less work in process inventory than line flow operations. _____ In general, job shop operations have higher skilled workers than line flow operations. _____ In general, job shop operations are less likely to compete on cost than line flow operations. _____ In general, job shop operations produce larger volume output than line flow operations.
Answer:
FalseTrueTrueFalseFalseFalseTrueTrueTrueFalseExplanation:
FalseThis is because Job shop operations are smaller than line flow operations
TrueThis is because line flow operations require more specific more specific tools
True.This is because high volume of a specific type of product
FalseThis is because in job shop the production of variety of products require a higher number of labor content
FALSEJob shop operations are more flexible than line flow operations
FALSEoperations are measured by degree of customization in job shops
TRUEJob shops are not usually involved in mass productions
TRUEJob shops posses higher skilled labors because of the customization involved with job shops
TRUELine flow operations are more cost effective because they produce in large quantities
FALSEThere is mass production in lie flow operation
Maple Company purchases new equipment (7-year MACRS property) on January 10, 2020, at a cost of $430,000. Maple also purchases new machines (5-year MACRS property) on July 19, 2020 at a cost of $290,000. Maple wants to maximize its MACRS deductions; assume no taxable income limitations apply. What is Maple's total MACRS deduction for 2020
Answer:
$720000
Explanation:
This answer is quite sole and can be obtained by simple addition.
The answer to this question can be gotten by adding the MACR property of 8byears that has a cost of $430,000 with the purchases of new machines whose cost is $290000.
= $430000 + $290000
= $720000
Therefore Maple's total MACRs deduction for the year 2020 is equal to
$720000.
Thank you!
Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 The total fixed costs are $42,000. Determine target sales needed to earn a $20,000 target profit. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$101,639.34
Explanation:
Given the above information,
Product A Product B Total
Sales revenue $59,000 $51,000 $110,000
Contribution margin $47,600 $19,500 $67,100
Overall contribution margin ratio 61%
Fixed cost + Target profit [$42,000 + $20,000] $62,000
Break even dollars in sales = $62,000 / 61% = $101,639.34
Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the business. They will require him to submit a business plan and a(n) _____.a.buy-out planb.income statementc.partnership agreementd.financial plan
Answer:
d.financial plan
Explanation:
A financial plan is a document that gives a picture of the monetary position of a person or entity, their future monetary goals, along with strategies that are aimed meeting such goals.
A business plan is the general goals of a business and ways in which they can be achieved.
In the given scenario Jefferson has given his business plan. But he also needs to give a financial plan that will show the bank how feasible his business is.
how to manage stress throughout the year
applicable to Performance Based Logistics (PBL).
Question 1 of 8.
Which of the following provides guidance related to Product Support and Performance Based Logistics (PBL) policies? (Choose three that Apply)
DOD PBL Guidebook: A Guide to Performance Based Arrangements
DoD Instruction 5000.02, Enclosure 6 "Life Cycle Product Support"
DOD Product Support Manager Guidebook
DAG Chapter 4 "Systems Engineering"
Mark for follow up
Save / Return Later
Summary
Next >>
Answer:
jwkwkwkwj
Explanation:
nssjkswkwkwkwk....
The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.50 Units Produced 39,000 Units Sold 33,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $21,000 Prepare an income statement under variable costing method.
Answer:
Results are below.
Explanation:
First, we need to calculate the total unitary variable cost:
Total unitary variable cost=2.5 + 1.5 + 0.25 + 1.5
Total unitary variable cost= $5.75
Now, the variable costing income statement:
Sales= 33,000*12= 396,000
Total variable cost= (33,000*5.75)= (189,750)
Total contribution margin= 206,250
Fixed Manufacturing Expenses= (117,000)
Fixed Selling and Administration Expenses= (21,000)
Net operating income= 68,250
(4) Asset A has an expected return of 15% and a Sharpe ratio of .4. Asset B has an expected return of 20% and a Sharpe ratio of .3. A rational risk-averse investor would prefer a portfolio using the risk-free asset and ______. A. asset A B. asset B C. no risky asset D. not enough information to determine the answer
Answer: A. Asset A
Explanation:
The Sharpe ratio is used to adjust the return earned on an asset based on its risk. This allows investors to know the returns they are getting for risk being taken.
A higher Sharpe ratio is preferred to a lower one as it shows that more returns are being received per risk taken. A rational risk averse investor would therefore pick Asset A because they would be getting more return for the risk they take regardless of how little this risk is.
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 794,300 47,000 machine-hours Processing orders $ 61,280 1,600 orders Inspection $ 109,681 1,430 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 500 Annual machine-hours 1,130 Annual number of orders 115 Annual inspection hours 20 Direct materials cost $ 42.00 per unit Direct labor cost $ 41.31 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to:
Answer:
Unitary costs= $133.38
Explanation:
First, we need to calculate the activities rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 794,300 / 47,000= $16.9 per machine-hour
Processing orders= 61,280 / 1,600= $38.3 per order
Inspection= 109,681 / 1,430= $76.7 per inspection-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 16.9*1,130= 19,097
Processing orders= 38.3*115= 4,404.5
Inspection= 76.7*20= 1,534
Total allocated costs= $25,035.5
Finally, the unitary costs:
Unitary allocated costs= 25,035.5/500= $50.07
Unitary costs= 50.07 + 42 + 41.31
Unitary costs= $133.38
Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,398 machine hours available a month. The three products have the following data: A B C Selling Price per unit 6.00 16.00 11.00 Variable Cost per unit 2.00 4.00 6.00 Machine hours required 2 4 5 Demand for product in units 1,009 3,847 1,037 How much of product B should be produced?
Answer:
Total products produced by B = 3847
Explanation:
Given - Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,398 machine hours available a month.
The three products have the following data:
A B C
Selling Price per unit 6.00 16.00 11.00
Variable Cost per unit 2.00 4.00 6.00
Machine hours required 2 4 5
Demand for product in units 1,009 3,847 1,037
To find - How much of product B should be produced?
Solution -
Products A B C
Selling Price per unit 6 16 11
Variable cost per unit 2 4 6
Contribution (Selling - Variable) 4 12 5
Machine hours required 2 4 5
Contribution per hr 2 3 1
(Conribution / Machine hour)
Rank II I III
Demand 1009 3847 1037
Now,
Hours allocated to B -
No. of hours available = 3847 × 4 = 15,388
Available hours = 17,398
Now,
Extra hours = 17,398 - 15,388 = 2,010 (Allocated to A)
∴ The production of product B should be full capacity
i.e. Total products produced by B = 3847
The contribution margin is the amount of revenue left by the business after deducting all the variable costs from the selling price. The contribution margin includes the fixed costs. For decision making those products are chosen for selling those are having a higher contribution margin.
Find the attachment for the contribution margin of the products.
Now, Number of hours available = [tex]3847 \times 4 &= 15, 388[/tex]
Available hours = [tex]17,398[/tex]
Also, the extra hours are = [tex]17, 398 - 15, 388&=2010[/tex] (Allotted to A).
Thus, product B should produce with full capacity, which is B = 3847.
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Happy Lawn Company started a lawn services business on January 1, 20X1 (so all account balances were zero on January 1, 20X1). It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. All of these sales were made on credit. During 20X1, cash collected from its customers totaled $750,000 for services rendered during the year. At the end of 20X1, the Accounts Receivable for Happy Lawn had a balance of $60,000. After all write-offs but before the year-end adjusting entry, the Allowance for Doubtful Accounts had a debit balance of $4,000. Given the above information and considering the recording of Bad Debt Expense for the year, regardless of the method used to estimate bad debts, the ending Allowance for Doubtful Accounts balance for 20X1 will be: Multiple Choice
Question Completion:
Assume that Happy Lawn uses the percentage of credit sales method to directly calculate the bad debt expense) instead of the aging method, and it is estimated that it will not collect 1% of the total credit sales.
Answer:
Happy Lawn Company
Given the above information and considering the recording of Bad Debt Expense for the year, regardless of the method used to estimate bad debts, the ending Allowance for Doubtful Accounts balance for 20X1 will be:
= $8,140.
Explanation:
a) Data and Calculations:
Total credit sales:
Cash collected from customers = $750,000
Accounts receivable balance 60,000
Write-off of debts 4,000
Total credit sales for the year $814,000
Allowance for Doubtful Accounts 8,140 ($814,000 * 1%)
Bad Debts Expense = $12,140 ($8,140 + $4,000)
b) Since Happy Lawn is a new outfit, it does not have beginning balances of Accounts Receivable and Allowance for Doubtful Accounts. With a debit balance of $4,000 in the Allowance for Doubtful Accounts, signifying a write-off (contrary entry from the Accounts Receivable), the balance in the Allowance for Doubtful Accounts at year-end is expected to be equal to 1% of the credit sales. This will require a credit entry for Bad Debts Expense.
The following materials standards have been established for a particular product at Zoom Industries: Standard quantity per unit of output 6.3 pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,650 pounds Actual cost of materials purchased $64,780 Actual materials used in production 7,150 pounds Actual output 890 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month
Answer:
the material quantity variance is $23,299.30 unfavorable
Explanation:
The computation of the material quantity variance is shown below:
= (standard quantity - actual quantity) × standard rate
= (6.3 × 890 - 7,150) × $15.10
= (5,607 - 7,150) × $15.10
= $23,299.30 unfavorable
Hence, the material quantity variance is $23,299.30 unfavorable
Mariana works for a large pharmaceutical company. Last week she visited with an advisor at the nearby university because her employer encourages workers to continue their education. The company even gives employees time off to go to academic-related appointments during regularly scheduled work hours. One would assume that management at Mariana's company values the results of the Hawthorne studies, more so than traditional scientific management principles.
a. true
b. false
The use of planning techniques is an example of
Answer:
whats this a part of anyway
it help with essays & missions thats all i know
Explanation:
Which of the following is an effective way to deal with change and innovation? Insist on success and punish failure. Hold closely to established methods of getting the job done. Innovate by varying existing products that are already on the market. Have flexibility and adaptability. Offer different explanations for the change to different work groups.
Answer:
Have flexibility and adaptability.
Explanation:
A radical innovation also known as the disruptive innovation is an innovative approach aimed at destroying or supplanting old business strategies and models with an invention to breakthrough and change the whole industries by creating new products.
Because workgroups develop their own subcultures, intranets build a common cultural foundation that can help unify employees in different units and locations around common company values.
An effective way to deal with change and innovation is to have flexibility and adaptability.
This ultimately implies that, an entrepreneur or business owner should be flexible and adaptive to changes in the industry, as well as developing the courage to follow his or her brilliant ideas.
g Equipment was purchased for $94700 on January 1, 2021. Freight charges amounted to $3800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $25000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used
Answer:
$34,200
Explanation:
Calculation of total Cost of Equipment
Purchase Price $94700
Freight charges $3800
Foundation and Installation $12000
Total $110,500
Annual Depreciation = Cost - Salvage Value / Useful Life
= ( $110,500 - $25000) / 5
= $17,100
Accumulated Depreciation = $17,100 x 2 = $34,200
Therefore,
the amount of accumulated depreciation at December 31, 2022 is $34,200.
Assume an investee has the following financial statement information for the three years ending December 31, 2013:(At December 31) 2011 2012 2013Current assets $310,500 $416,550 $428,205Tangible fixed assets 844,500 861,450 992,595Intangible assets 75,000 67,500 60,000Total assets $1,230,000 $1,345,500 $1,480,800Current liabilities $150,000 $165,000 $181,500Noncurrent liabilities 330,000 363,000 399,300Common stock 150,000 150,000 150,000Additional paid-in capital 150,000 150,000 150,000Retained earnings 450,000 517,500 600,000Total liabilities and equity $1,230,000 $1,345,500 $1,480,800(At December 31) 2011 2012 2013Revenues $1,275,000 $1,380,000 $1,455,000Expenses 1,162,500 1,260,000 1,314,000Net income $112,500 $120,000 $141,000Dividends $37,500 $52,500 $58,500Review of pre-consolidation cost method (controlling investment in affiliate, fair value equals book value)Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the cost method to account for its investment in the investee, what is the balance in the "investment in investee" account in the investor company's preconsolidation balance sheet on December 31, 2013?A. $900,000B. $750,000C. $675,000D. $1,480,800Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the cost method to account for its investment in the investee, what is the balance in the "income from investee" account in the investor company's preconsolidation income statement for the year ended December 31, 2013?A. $141,000B. $82,500C. $58,500D. $112,500Assume that on January 1, 2011, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee's identifiable net assets had fair values that approximated their historical book values, except for tangible fixed assets, which had fair value that was $150,000 higher than the investee's recorded book value. The tangible fixed assets had a remaining useful life of 10 years. In addition, the acquisition resulted in goodwill in the amount of $300,000 recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the equity method to account for its investment in the investee, what is the balance in the "income from investee" account in the investor company's pre-consolidation income statement for the year ended December 31, 2013?A. $126,000B. $82,500C. $67,500D. $141,000
Answer:
1. The balance in the "investment in investee" account in the investor company's preconsolidation balance sheet on December 31, 2013 is:
A. $900,000
2. The balance in the "income from investee" account in the investor company's preconsolidation income statement for the year ended December 31, 2013 is:
B. $82,500
3. The balance in the "income from investee" account in the investor company's pre-consolidation income statement for the year ended December 31, 2013 is:
D. $141,000
Explanation:
a) Data and Calculations:
Financial Statements for the three years ending December 31, 2013:
(At December 31) 2011 2012 2013
Current assets $310,500 $416,550 $428,205
Tangible fixed assets 844,500 861,450 992,595
Intangible assets 75,000 67,500 60,000
Total assets $1,230,000 $1,345,500 $1,480,800
Current liabilities $150,000 $165,000 $181,500
Noncurrent liabilities 330,000 363,000 399,300
Common stock 150,000 150,000 150,000
Additional paid-in capital 150,000 150,000 150,000
Retained earnings 450,000 517,500 600,000
Total liabilities and equity $1,230,000 $1,345,500 $1,480,800
(At December 31) 2011 2012 2013
Revenues $1,275,000 $1,380,000 $1,455,000
Expenses 1,162,500 1,260,000 1,314,000
Net income $112,500 $120,000 $141,000
Dividends $37,500 $52,500 $58,500
Income retained for the current year $82,500
Retained income for year 2012 517,500
Retained income for year 2013 $600,000
Common stock 150,000
Additional paid-in capital 150,000
Total equity $900,000
Three identical units of merchandise were purchased during July, as follows: Date Product T Units Cost July 3 Purchase 1 $31 10 Purchase 1 34 24 Purchase 1 37 Total 3 $102 Average cost per unit $34 Assume one unit sells on July 28 for $48. Determine the gross profit, cost of goods sold, and ending inventory on July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) average cost flow methods.
Answer:
(a) first-in, first-out,
Cost of Sales = $31
Ending Inventory = $71
Gross Profit = $17
(b) last-in, first-out,
Cost of Sales = $37
Ending Inventory = $65
Gross Profit = $17
(c) average cost flow methods.
Cost of Sales = $48
Ending Inventory = $96
Gross Profit = $0
Explanation:
(a) first-in, first-out,
FIFO method assumes that the units to arrive first, will be sold first. This means cost of sales will be based on earlier (old) prices whilst inventory valuation will be on recent (new) prices.
Cost of Sales = 1 x $31 = $31
Ending Inventory = 1 x $34 + 1 x $37 = $71
Gross Profit = $48 - $31 = $17
(b) last-in, first-out,
LIFO method assumes that the units to arrive last will be sold first. This means cost of sales will be based on recent (new) prices whilst inventory valuation will be on earlier (old) prices.
Cost of Sales = 1 x $37 = $37
Ending Inventory = 1 x $34 + 1 x $31 = $65
Gross Profit = $48 - $37 = $17
(c) average cost flow methods.
This method calculates a new average unit cost with each and every purchase made. This unit cost is used to determine the cost of sales and inventory value.
Cost of Sales = 1 x $48 = $48
Ending Inventory = 2 x $48 = $96
Gross Profit = $48 - $48 = $0
what is a business administration
Answer:
Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations.
Explanation:
This is what I found during my research. Please correct me if I am wrong which I feel like I am right. Hope this helped a bit and have a good one!
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