Answer:
Pier Imports Inc.
a. Investing section:
Purchase of equipment -16,000
Sale of equipment 7,200
Purchase of treasury stock, -24,000
Sale of available-for sale debt securities 12,800
b. Financing section:
Non-trade short-term notes payable $64,000
Increase in interest payable 10,240
Payment of loan -400
Cash dividends of -4,000
Explanation:
a) Data and Analysis:
1. Decrease of $4,800 in Utilities payable = operating activity
2. Increase of $64,000 in non-trade short-term notes payable to banks = financing activity. They are not related to normal business operations.
3. Increase of $10,240 in interest payable = financing activity
4. Cash payment of $400 to reduce non-trade bank loan = financing activity
5. Increase of $16,000 in gross equipment account = investing activity
6. Cash $7,200 from sale of equipment = investing activity
7. Purchase of treasury stock, $24,000 = investing activity
8. Cash dividends of $4,000 = financing activity
9. Cash sale, $12,800 of available-for-sale debt securities = investing activity
Data for 2021 were as follows: PBO, January 1, $246,000 and December 31, $276,000; pension plan assets (fair value) January 1, $190,000, and December 31, $239,000. The projected benefit obligation was underfunded at the end of 2021 by:
Answer: $37000
Explanation:
The projected benefit obligation was underfunded at the end of 2021 by:
PBO December 31 = $276,000
Less: Pension plan assets (fair value) December 31 = $239,000.
Then, the projected benefit obligation was underfunded at the end of 2021 by ($276000 - $239000) = $37000
Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Nondurable goods 700 Inventory investment 200 Government transfer payments 100 Purchases of new residential housing 450 Government purchases 900 Refer to Exhibit 7-3. Consumption is equal to
Answer:
$9,700
Explanation:
The computation of the consumption is shown below;
= Durable goods + Services + Non-durable goods
= $3,000 + $6,000 + $700
= $9,700
We simply added the durable goods, services and the non-durable goods so that the consumption could be come
Hence, the consumption is $9,700
Therefore the same is to be considered
Bramble Corp. factors $3250000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 9% of the accounts receivable for possible adjustments. Bramble estimates the fair value of the recourse liability at $300000. What would be the debit to Cash in the journal entry to record this transaction
Answer: $3,672,500
Explanation:
Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:
= $3,250,000 - ($3,250,000 × 4%) + ($3,250,000 × 9%)
= $3,250,000 - $130,000 + $292,500
= $3,672,500
Therefore, the debit to cash will be $3,672,500.
Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: How much will Bidder B have to spend to purchase all of the shares that have been allocated to him
Answer:
$4,320.00
Explanation:
Calculation to determine How much will Bidder B have to spend to purchase all of the shares that have been allocated to him
Bidder B Cost = 300 *[900/(100 + 300 + 400+200)] *$16
Bidder B Cost = 300*[900/1,000)*$16
Bidder B Cost = 300*0.9*$16
Bidder B Cost = $4,320.00
Therefore The amount that Bidder B will have to spend to purchase all of the shares that have been allocated to him is $4,320.00
The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 30%. Currently, sales are $830,000 per year and cost of sales are 65% of sales. The equipment is expected to last for 4 years with no residual value. The cash outflow expected at the beginning of the year is $289,200. Ignoring income taxes, what is the estimated annual net operating income increase/decrease
Answer:
Annual net operating income= $14,850
Explanation:
The annual net operating income is the incremental sales less costs of good sold and annual depreciation.
Annual depreciation = (Cost of equipment - Salvage value)Number of years
= (289,200-0)/4 = 72,300
Increase in sales= $249,000
Annual net operating income = 249,000- (65%×249,000)-72,300=301,200
Annual net operating income= $14,850
The political business cycle refers to Group of answer choices the fact that about every four years some politician advocates greater government control of the Fed. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle. changes in output created by the monetary rule the Fed must follow.
Answer:
the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
Explanation:
A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.
Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.
The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Additionally, Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being such as Real GDP.
Selma Inc. is comparing several alternative capital budgeting projects as shown below.
Projects A B C
Initial Investment $40,000 $60,000 $80,000
Present value of cash inflows $60,000 $55,000 $100,000
Using the profitability index, rank the projects, starting with the most attractive.
Answer:
A
C
B
Explanation:
1.5
0.9
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $26 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $22 per pound to produce. The differential cost of producing Product C is a.$22 per pound b.$34 per pound c.$61 per pound d.$26 per pound
Answer:
a.$22 per pound
Explanation:
The computation of the differential cost for producing product C is given below:
As we know that
Differential cost is the extra cost that to be incurred for producing or generating the product.
Since in the question it is given that there is an additional cost of $22 per pound so the same would be considered
hence, the option a is correct
Perfectly competitive, unregulated markets with no externalities will provide the efficient level of Group of answer choices private goods. private goods, artificially scarce goods, and common property resources. private goods and artificially scarce goods. private goods, artificially scarce goods, common property resources, and public goods. canva
Answer: private goods
Explanation:
Private goods are referred to as the goods that are excludable and also possess the characteristics of rivalry. Such goods can only be consumed when people pay for them and those who don't pay will noy benefit from the goods.
The demand and supply of private goods will bring about an efficient level of output such that the demand will be equal to the supply. It should be noted that other goods may be faced with challenges like the externality problem, free rider problem etc.
A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $64,500. The annual variable production costs associated with the old machine are estimated to be $156,700 per year for 8 years. The annual variable production costs for the new machine are estimated to be $101,400 per year for 8 years.
Required:
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine.
C. What is the sunk cost in this situation?
X
Differential Analysis
A company is considering replacing an old piece of machinery, which cost $600,000 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual variable production costs associated with the old machine are estimated to be $61,000 per year for eight years. The annual variable production costs for the new machine re estimated to be $19,000 per year for eight years.
Required:
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine.
C. What is the sunk cost in this situation?
X
Differential Analysis
A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
Differential Analysis
Continue with Old Machine (Alternative. 1) or Replace Old Machine (Alternative. 2)
September 13
1
Continue with Old Machine
Replace Old Machine
Differential Effect on Income
2
(Alternative 1)
(Alternative 2)
(Alternative 2)
3
4
5
6
7
8
Answer:
Question Aa. Alternative 1–$1,253,600
Alternative 2 –$1,230,300
Differential effect $ 23,300
b.The company should replace the old machine.
c Sunk cost $250,400
Question Ba. Alternative 1–$488,000
Alternative 2 –$466,000
Differential effect $ 22,000
b.The company should replace the old machine.
c Sunk cost $250,000
Explanation:
Question Aa. Preparation of a differential analysis dated September 13
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)
September 13
Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential
on Income (Alternative 2)
Revenues:
Proceeds from sale of old
machine $ 0 $64,500 $64,500
Costs:
Purchase price 0 –$483,600 –$483,600
Variable production costs (8 years)–$1,253,600 –$811,200 $442,400
($156,700*8=$1,253,600)
($101,400*8=$811,200)
Income (Loss) –$1,253,600 –$1,230,300 $ 23,300
b. The company should replace the old machine.
c. Calculation for The sunk cost
Using this for formula
Sunk cost= Book value- Accumulated
depreciation
Let plug in the formula
Sunk cost=$601,300-$350,900
Sunk cost=$250,400
Question Ba. Preparation of a differential analysis dated September 13
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)
September 13
Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential
on Income (Alternative 2)
Revenues:
Proceeds from sale of old
machine $ 0 $231,000 $231,000
Costs:
Purchase price 0 –$545,000 –$545,000
Variable production costs (8 years)–$488,000 –$152,000 $336,000
($61,000*8=$488,000)
($19,000*8=$152,000)
Income (Loss) –$488,000 –$466,000 $ 22,000
b. The company should replace the old machine.
c. Calculation for The sunk cost
Using this for formula
Sunk cost= Book value- Accumulated
depreciation
Let plug in the formua
Sunk cost=$600,000-$350,000
Sunk cost=$250,000
Grass Frog Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available:
Sales (all on credit) $2,100,000
Accounts Receivable, January 1, 2018 305,000
Allowance for doubtful accounts,
January 1, 2018 (credit) 25,000
Cash collections during 2018 1,980,000
Accounts written off as uncollected
(default) during 2018 15,000
1. Determine the balance of Accounts Receivable at December 31, 2018.
2. Assume that the company estimates bad debts at 4% of credit sales. What amount will the company record as bad debt expense for 2018?
3. What journal entry Grass Frog prepare to record bad debt expense for 2018 (related to part 2)?
4. Now assume the company estimates bad debts based on the aging method. Estimate the ending balance in the allowance for doubtful accounts at December 31, 2018 using the information below:
AGE CLASS % UNCOLLECTIBLE AMOUNT
Not Past Due 1% $220,000
1-30 Days Past Due 5% $110,000
31-60 Days Past Due 10% $40,000
61-90 Days Past Due 25% $30,000
Over 90 Days Past Due 50% $10,000
1. What journal entry would Grass Frog prepare to record bad debt expense for 2018 (related to part 4)?
2. What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog)?
Answer:
Grass Frog Company
1. The balance of Accounts Receivable at December 31, 2018 is:
= $410,000.
2. The amount that the company will record as bad debt expense for 2018 is:
= $74,000.
3. Journal Entry to record the bad debt expense for 2018:
Debit Bad Debt Expense $74,000
Credit Allowance for Doubtful Accounts $74,000
To record the bad debt expense for the year.
4. The ending balance in the allowance for doubtful accounts at December 31, 2018 is:
= $24,200
a. Journal Entry to record bad debt expense:
Debit Bad Debt Expense $14,200
Credit Allowance for Doubtful Accounts $14,200
To record the bad debt expense for the year.
b. The net realizable value of the receivables to be reported on the balance sheet at year-end (assuming aging method was used by Grass Frog) is:
Accounts receivable balance $410,000
Allowance for doubtful accounts (24,200)
Net realizable value = $385,800
Explanation:
a) Data and Calculations:
December 31, 2018:
Accounts Receivable
January 1, 2018 $305,000
Sales (all on credit) 2,100,000
Cash collections during 2018 (1,980,000)
Accounts written off during 2018 (15,000)
Dec. 31, 2018 balance $410,000
Allowance for doubtful accounts,
Accounts written off during 2018 $15,000
December 31, 2018 (4%) 84,000
January 1, 2018 (credit) (25,000)
Bad Debts Expense 74,000
AGE ANALYSIS:
AGE CLASS % UNCOLLECTIBLE ALLOWANCE
AMOUNT
Not Past Due 1% $220,000 $2,200
1-30 Days Past Due 5% $110,000 5,500
31-60 Days Past Due 10% $40,000 4,000
61-90 Days Past Due 25% $30,000 7,500
Over 90 Days Past Due 50% $10,000 5,000
Total $410,0000 $24,200
Accounts written off during 2018 $15,000
December 31, 2018 24,200
January 1, 2018 (credit) (25,000)
Bad Debts Expense 14,200
Using the estimated sales and production of 140,000 boxes of Chap-Off, the Accounting Department has developed the following manufacturing cost per box: Direct material $ 3.70 Direct labor 2.00 Manufacturing overhead 1.60 Total cost $ 7.30 The costs above relate to making both the lip balm and the tube that contains it. As an alternative to making the tubes for Chap-Off, Silven has approached a supplier to discuss the possibility of buying the tubes. The purchase price of the supplier's empty tubes would be $1.20 per box of 24 tubes. If Silven Industries stops making the tubes and buys them from the outside supplier, its direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and its direct materials costs would be reduced by 20%. Required: 1. If Silven buys its tubes from the outside supplier, how much of its own Chap-Off manufacturing costs per box will it be able to avoid
Answer:
Silven Industries
If Silven buys its tubes from the outside supplier, it will be able to avoid $1.10 of its own Chap-Off manufacturing costs per box
Explanation:
a) Data and Calculations:
Estimated Production and Sales Units of Chap-Off = 140,000 boxes
Manufacturing cost per box: Avoidable costs
Direct material $ 3.70 $0.74 ($3.70 * 20%)
Direct labor 2.00 0.20 ($2.00 * 10%)
Manufacturing overhead 1.60 0.16 ($1.60 * 10%)
Total cost $ 7.30 $1.10
Outside supplier's price for tubes = $1.20 per box
b) Unless there an alternative use for the machine used in making the tubes internally exists, it may not be cost-effective for Silven to buy from the outside supplier. Alternatively, it should renegotiate a price per box that is less than $1.10 in order to stop making the tubes internally.
Angie relocated for her job and is looking for a new fitness facility to attend an aerobics class. She should make sure that these facilities follow the guidelines for health and fitness facilities established by the _____.
a. The National Center for Complementary and Alternative Medicine
b. The Better Business Bureau
c. The National Strength and Conditioning Association
d. The American Council on Exercise
e. The American College of Sports Medicine
Answer:
c
Explanation:
A company started the year with the following: Assets $104,000; Liabilities $34,000; Common Stock $64,000; Retained Earnings $6,000. During the year, the company earned revenue of $5,400, all of which was received in cash, and incurred expenses of $3,200, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,400 to owners. Assume no other activities occurred during the year. What was the amount of net income for the year?
a. $3,200.
b. $2,200.
c. $1,400.
d. $5,400.
Answer:
b. $2,200.
Explanation:
Net income = Revenue - Expenses
Net income = $5,400 - $3,200
Net income = $2,200
Therefore, the amount of net income for the year is $2,200
Ginger attacks Richard and cuts him with a knife. He sues Ginger. The jury awards Richard $50,000 for medical expenses and lost time at work and adds $100,000 to the award because Ginger was so vicious. The $100,000 is called: A. punitive damages B. compensatory damages C. nominal damages D. an equitable remedy E. none of the other choices
Answer: A. punitive damages
Explanation:
Punitive damages are awarded by a court in order to further punish the guilty party for their actions which according to the court shows that the party committed the crime intentionally.
They are awarded on top of the compensatory damages and are usually larger than the compensatory damage. The compensatory damage here is the $50,000 that was awarded for medical expenses which means that the $100,000 is for punitive damages.
Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investment. b. purchases of all types of durable goods, all new construction, and inventory investment. c. purchases of capital goods, all new construction, and purchases of consumer durable goods. d. purchases of capital goods, all new commercial construction, and inventory investment.
Answer:
a. purchases of capital goods, all new residental constructionand inventory investment
Explanation:
It is the investment measure used for determining the GDP. It is an important part of GDP as it is used as an indicator for the productive capacity i.e. future. It involves the purchase i.e. replacement, net addition made to the capital assets, and the investment made in inventories
So according to this, the option a is considered as it involved all three thins that are shown above
Suppose that Freddie's Fries has annual sales of $520,000; cost of goods sold of $395,000; average inventories of $11,000; average accounts receivable of $27,000, and an average accounts payable balance of $22,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)
Answer:
8.78
Explanation:
The computation of the cash cycle is given below;
We know that
Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.
Here
1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)
= (11,000) ÷ (395000 ÷ 365)
= 10.16
2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)
= (27000/520000) × 365
= 18.95
3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases × 365)
= (22000 ÷ 395000) × 365
= 20.33
Now the cash cycle is
= 10.16 + 18.95 - 20.33
= 8.78
The following credit sales are budgeted by Sunland Company: January $274000 February 350000 March 470000 April 360000 The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is
Answer:
$374,000
Explanation:
April Collection = $360000 x 70 % + $ 470000 x 20 % + $ 350000 x 8 %
= $374,000
The anticipated cash inflow for the month of April is $374,000
Suppose you've just inherited $66,000 from your rich Aunt. You're trying to decide whether to keep the $66,000 in cash so that you can use it for transactions or to deposit the entire amount in a savings account for one year. Suppose that the interest rate on a savings account is 2.5% per year. What would be the opportunity cost of holding the $66,000 as money
Answer:
Opportunity cost of holding the money = $1.650
Explanation:
Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.
The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.
Interest on savings deposit = interest rate × deposit
= 2.5%× 66,000= $1,650
Opportunity cost of holding the money = $1.650
The opportunity cost of holding the money is $1,650.
Opportunity cost can be described as the cost of the next best option forgone when one alternative is chosen over other alternatives. The opportunity cost of holding the cash is the interest on the deposit that would be forgone.
Interest rate = amount deposited x interest rate
$66,000 x 2.5%
= $66,000 x 0.025 = $1,650
A similar question was answered here: https://brainly.com/question/25811386
Which statements describe options for exporting query data? Select all that apply.
Copy a database object and paste it into a new program.
Save the entire database as a spreadsheet.
Save a single database object in a new file type, such as .csv.
Copy the entire database and paste it into a new program.
DONE
Answer:
1)Copy a database object and paste it into a new program
3) Save a single database object in a new file type, such as .csv
Explanation:
Dos Amugus Company has income from continuing operations of $621,000 (after tax) for the year ended December 31, 2020. It also has the following items (before considering income taxes): (1) An unrealized loss of $120,000 available-for-sale-securities. (2) A gain of $60,000 on the discontinuance of a major component. (3) A cumulative effect of a change in accounting principle that resulted in an increase in prior years' depreciation of $50,000. Assume all items are subject to income taxes at a 30% tax rate. Prepare an income statement, beginning with income from continuing operations. DOS AMUGUS COMPANY Partial Statement of Comprehensive Income For the Year Ended December 31, 2020
Answer:
Dos Amugus company
Partial Statement of Comprehensive Income
Particulars Amount
Income from continuing operations $621,000
Discontinued operations. Gain on discontinued $42,000
segment net of tax (60,000 * 30% of 60,000)
Net income $663,000
Other comprehensive income ($84,000)
Unrealized holding loss, on available for sale
securities net of income tax (120,000-30%*120,000)
Comprehensive income $579,000
On January 1, 2018, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2020, and expire on January 1, 2024. Each option can be exercised to acquire one share of $1 par common stock for $12. An option-pricing model estimates the fair value of the options to be $5 on the date of grant. If unexpected turnover in 2019 caused the company to estimate that 10% of the options would be forfeited, what amount should M recognize as compensation expense for 2019? Group of answer choices $150,000. $30,000. $60,000. $120,000.
Answer:
$120,000
Explanation:
Calculation to determine What amount should M recognize as compensation expense for 2019
First step is to calculate the Value of the option using this formula
Value of the option = Stock options × Fair value of the options
Let plug in the formula
Value of the option=90,000*$5
Value of the option=$450,000
Now let determine compensation expense for 2019
2019 Compensation expense=[($450,000*(100%-10%))*2/3]-$450,000/3 years
2019 Compensation expense=[($450,000*90%)*2/3]-$150,000
2019 Compensation expense=($405,000*2/3)-$150,000
2019 Compensation expense=$270,000-$150,000
2019 Compensation expense=$120,000
Therefore The amount that M recognize should recognize as compensation expense for 2019 is $120,000
Hordel Company needs to determine a markup for a new product. Hordel expects to sell 6,100 units and wants a target profit of $93 per unit. Additional information is as follows: Variable product cost per unit $ 80 Variable administrative cost per unit 35 Total fixed overhead 53,000 Total fixed administrative 11,050 Using the variable cost method, what markup percentage to variable cost should be used
Answer:
See below
Explanation:
Total variable cost = Variable product cost + Variable administrative cost per unit
= (6,100 × $80 per unit) + (6,100 × $35)
= $488,000 + $213,500
= $701,500
Total fixed cost = Total fixed overhead + Total fixed administrative cost
= $53,000 + $11,050
= $64,050
Total fixed cost per unit = $64,050 ÷ 6,100 = $10.5
Total cost = Total variable cost + Total fixed cost
= $701,500 + $64,050
= $765,550
Target profit = 6,100 × $93 = $567,300
Desired selling price = Total cost + Target profit
= $765,550 + $567,300
= $1,332,850
Desired selling price per unit = $1,332,850 ÷ 6,100 = $218.5
Therefore,
Markup percentage on variable cost
= [(Desired selling price per unit - Variable cost per unit) ÷ Variable cost per unit] × Variable cost per unit
= [($218.5 - 115) ÷ (115)] × 115
= 103.5%
FIFO Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete)
Units started ?
Total units to account for: ?
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed ?
Units accounted for ?
1-a. Prepare a schedule of equivalent units.
1-b.Compute the unit cost for the month of December.
Question Completion:
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $32,000; conversion costs, $50,000; and transferred in, $40,000.
Answer:
Fordman Company
1-a. A Schedule of Equivalent Units:
Direct materials Conversion Transferred in
Beginning work in process 2,400 (60%) 2,400 (60%) 2,400 (60%)
Units transferred out 16,000 (100%) 16,000 (100%) 16,000 (100%)
Ending work in process 4,000 (50%) 4,000 (50%) 4,000 (50%)
Equivalent units 22,400 22,400 22,400
1-b. Cost per unit for the month of December = $5.45
Explanation:
a) Data and Calculations:
Beginning work in process:
Direct materials costs = $5,000
Conversion costs = $6,000
Transferred-in costs = $8,000
Units transferred from the Grinding Department = 20,000
Direct materials Conversion Transferred in
Cost added during the month $32,000 $50,000 $40,000
Equivalent units of production:
Direct materials Conversion Transferred in
Beginning work in process 2,400 (60%) 2,400 (60%) 2,400 (60%)
Units transferred out 16,000 (100%) 16,000 (100%) 16,000 (100%)
Ending work in process 4,000 (50%) 4,000 (50%) 4,000 (50%)
Equivalent units 22,400 22,400 22,400
Cost per equivalent unit:
Direct materials Conversion Transferred in
Cost added during the month $32,000 $50,000 $40,000
Equivalent units 22,400 22,400 22,400
Cost per equivalent unit $1.43 $2.23 $1.79
Cost per unit for the month of December = $5.45 ($1.43 + $2.23 + $1.79)
Physical Flow Schedule for December:
Units to account for:
Units, beginning work in process 4,000 (40% complete) 60% in the month
Units started 20,000
Total units to account for: 24,000
Units accounted for:
Units, ending work in process 8,000 (50% complete)
Units completed 16,000
Units accounted for 24,000
Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an
Answer:
Garth is known in the law of insider trading as a
secondary insider.
Explanation:
Garth's contact with inside information in GPI is not primary since he does not have the direct privileged information, unlike Wayne, his friend, who is also the CEO of GPI. However, he has benefited from secondary information through Wayne. His conduct is also a violation of the Securities Act as amended. He used non-publicly available information to trade on the stock of GPI and made huge profits.
The following transactions occurred during July: Received $1,600 cash for services performed during July. Received $7,800 cash from the issuance of common stock to owners. Received $800 from a customer as payment for services performed during June. Billed $4,700 to customers for services performed on account in July. Borrowed $3,300 from the bank and signed a promissory note. Received $2,200 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31
Answer:
the amount of revenue that should be reported is $6,300
Explanation:
The computation of the amount of revenue that should be reported is shown below;
= Cash received + service revenue earned on the account
= $1,600 + $4,700
= $6,300
hence, the amount of revenue that should be reported is $6,300
Basically we add the two items so that the correct value could arrive
Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human stylists to deliver a personalized online shopping experience to customers through a subscription service. Users fill out a survey that outlines their style preferences and price range, then stylists hand-select clothing and ship it to the customers. Which of the following statements most likely does not represent an opportunity for Stitch Fix?
A. increasing life expectancy by 5 years.
B. increase in the company's efficiency due to improvements in the value chain.
C. global economic growth will reach 10% next year.
D. a growing population of environmentally conscious consumers.
Answer:
A
Explanation:
there is no correlation between the clothes been made for customers and an increase in life expectancy
The company's efficiency is increased as a result of tailoring customers clothes to be exactly what they want.
Also, Stitch Fix contributes to GDP as a result they can contribute to global economic growth
On December 31, 2019, Burke Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of
Answer:
$39,405
Explanation:
Computation for the present value of the lease payments.
Using this formula
Present value of the lease payments=Beginning annual payments*Present value of an annuity due of 1 for 5 periods at 5%.
Let Plug in the formula
Present value of the lease payments=$8,668 × 4.54595
Present value of the lease payments=$39,405
Therefore the present value of the lease payments is $39,405
Total quality management (TQM) is defined as a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction. TQM is led by top management and supported throughout the organization. This activity is important because TQM requires hard work, and managers should understand its core principles in order to properly instill and support TQM in their organizations.
1. Employees, suppliers, and customers are all entrusted with decision-making power.
(Click to select) People orientation Improvement orientation
2. The way to success in business is through continuous, small enhancements to products.
(Click to select) People orientation Improvement orientation
3. Is driven by strong support at the highest levels of the organization.
(Click to select) People orientation Improvement orientation
4. The focus is on creating the most value possible for customers.
(Click to select) People orientation Improvement orientation
5. Assumes that it is better to expend more resources getting something right the first time than to have to engage in costly repairs and reworking after the fact.
(Click to select) People orientation Improvement orientation
6. Executives and researchers at the corporate level frequently interact with front-line salespeople to garner information on customer and product issues.
(Click to select) People orientation Improvement orientation
Solution :
TQM stands for Total quality management. It is a comprehensive approach and is led by the top management and is supported through the organization. This process is dedicated to the continuous quality improvement and training and customer satisfaction.
People orientation :
Entrusted, focus, interact
Improvement orientation :
Enhancement, resources, strong
define biospheredefine biosphere
Answer:
Explanation:
The biosphere (from Greek βίος bíos "life" and σφαῖρα sphaira "sphere"), also known as the ecosphere (from Greek οἶκος oîkos "environment" and σφαῖρα), is the worldwide sum of all ecosystems. It can also be termed the zone of life on Earth. The biosphere is virtually a closed system with regards to matter, with minimal inputs and outputs. With regards to energy, it is an open system, with photosynthesis capturing solar energy at a rate of around 130 Terawatts per year. However it is a self-regulating system close to energetic equilibrium. By the most general biophysiological definition, the biosphere is the global ecological system integrating all living beings and their relationships, including their interaction with the elements of the lithosphere, cryosphere, hydrosphere, and atmosphere. The biosphere is postulated to have evolved, beginning with a process of biopoiesis (life created naturally from non-living matter, such as simple organic compounds) or biogenesis (life created from living matter), at least some 3.5 billion years ago.
Answer:
the regions of the surface, atmosphere, and hydrosphere of the earth (or analogous parts of other planets) occupied by living organisms.