Answer:
Cole Co.
Bank Reconciliation Statement
Balance as per cash account adjusted $112,933
add uncredited deposits 11,317
less Outstanding checks -41,750
Balance as per bank statement $82,500
Explanation:
a) Data and Calculations:
Cash account debit balance = $95,250
Bank statement balance = $82,500
Outstanding checks = $11,317
Credit memorandum $18,000
Collection fee $45
Check 1115 for Rent Expense of $1,350 transposed as $1,050 = $300 ($1,350 - $1050)
Uncredited deposits = $41,750
Interest earned = $28
Cash Account Adjustment:
Cash account debit balance $95,250
Debit:
Credit memorandum 18,000
Interest earned 28
Credit:
Collection fee -45
Rent Expense (understated) -300
Adjusted cash account balance $112,933
b) The bank reconciliation statement above was prepared after adjusting the cash account with items that were recorded by the bank but not recorded by Cole Co. and other misstatements. With the adjusted cash account balance, the bank reconciliation was then carried out with the items that were not recorded by the bank. The resulting figure should agree with the bank statement balance.
PLEASE HELP
Question 6 of 20
Lisa decided to take a walk one Sunday afternoon. During her walk a
neighbor's dog broke away from the leash and attacked Lisa. For months
after the attack, Lisa would not go out of her house because she was so
shaken. Why would Lisa most likely be awarded aggravated damages?
A. Because there were witness to the attack who could prove the
attack was intentional
B. Because the neighbor intentionally let the dog loose to attack her
C. Because she was injured by the dog and had a lot of medical bills
to pay
D. Because the attack traumatized her so much that should couldn't
leave the house
Answer:
D. because (context clues)(process of illumination) let go back to "5th grade" ... first of all there was no witnesses mentioned in the scenario second were do they come off talking about a bill nothing was mentioned about a bill thirdly they said the dog 'broke Loose' so if it was intentional them he would have been at her door step. so that's why its D. and plus she was "traumatize" so that leads into fear and fear leads into staying away. and to be honest shes a idiot for not addressing the situation around the same month, if she was so traumatize by what happened.
Answer:
D. Because the attack traumatized her so much that should couldn't
leave the houseExplanation:
Suppose you bought 1,100 shares of stock at an initial price of $46 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $41. a. Compute your total dollar return on this investment
Answer:
$-4994
Explanation:
Total dollar return = number of stocks bought x (dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
$41 - $46 = $-5
1100 x ($-5 + $0.46) = $-4994
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials $170,000 Direct labor $110,000 Variable manufacturing overhead $200,000 Fixed manufacturing overhead $240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under variable costing, the company's net operating income for the year would be:
Answer:
Under variable costing, the company's net operating income for the year would be $60,000 lower than under absorption costing.
Explanation:
The computation of the operating income under variable costing is shown below:
But before that following calculations need to be done
Fixed manufacturing overhead per unit is
= $240,000 ÷ 20,000 units
= $12 per unit
Ending Inventory units is
= 20,000 units - 15,000 units
= 5,000 units
Now Cost of ending Inventory deferred under absorption costing is
= 5,000 units × $12
= $60,000
So, the second option is correct
Quantities on hand at the end of one month may not be sufficient to last until the next month's count. If the company has taken this into account in establishing reorder levels, then it is very possible that the company carrying too large an investment in inventory which can be costly.
a. True
b. False
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.
Suppose you expect Longs Drug Stores to pay an annual dividend of $2 per share in the coming year and to trade $40 per share at the end of the year. If investments with equivalent risk to Longs' stock have an expected return of 6%, what is the most you would pay today for Longs' stock
Answer:
$39.62
Explanation:
Calculation to determine what is the most you would pay today for Longs' stock
Using this formula
P0=Div1+P1/1+rE
Let plug in the formula
P0=$2+$40/(1+.06)
P0=$42/1.06
P0=$39.62
Therefore the most you would pay today for Longs' stock is $39.62
Eco Cycle, an eco-friendly bicycle manufacturer has developed a new product known as Green Ride. Green Ride is a stationary bicycle for home use which generates power for electronics and household appliances, such as televisions, video game consoles, dishwashers, and washing machines. Given the recent shift toward sustainable living, renewable energy sources, and a focus on positively impacting climate change, Eco Cycle expects this product to do well in the market. While the company knows that all consumers follow a similar adoption process for products, not all consumers follow it at the same time. In one or more fully formed paragraphs, identify each of the five types of adopters and explain in detail the characteristics of each type of adopter for Eco Cycle and the Green Ride.
Answer:
Explanation:
The Green Ride is an ecologically friendly bicycle product from Eco-Cycle. It is to be utilized at home to produce power for gadgets and family things in this way giving an inexhaustible wellspring of energy.
The milestone book " Diffusion of Innovations" by sociologist Everett Rogers in 1962 originally sorted the adopter types premise on specific attributes as recorded beneath:
1) Innovators: These arrangement of individuals receive new innovation or product as they are recently dispatched. This arrangement of individuals are prepared to face challenges and they are the boldest. For this situation, some corporates may get intrigued to evaluate the Green Ride alternative to perceive how it tends to be utilized to save cost on the force front.
2) Early Adopters: This arrangement of individuals make trends and need to see them on the ball, subsequently they will become the early adopters. For this situation, individuals who are lethargic towards open-air exercises will get their hands on this bicycle as it is locally (home) established and be the early adopter of this product.
3) Early Majority: These arrangements of individuals settle on choices dependent on utilities and the useful benefits of the product. For this situation, everyone who is worried about the use and benefits of Green Ride will get input from Early Adopters and can continue likewise.
4) Late Majority: This arrangement of individuals imparts a few qualities to the Early Majority set of individuals yet they are generally careful prior to submission. For this situation, youngsters may not get intrigued to utilize a bicycle which is kept to Indoors as it were.
5) Laggards: These arrangements of individuals are delayed to adjust to new innovation or product. They will in general embrace just when they are constrained. For this situation, the arrangement of individuals who are customary bicycle clients won't be prepared to acknowledge this new product except if compelled to do as such because of the limited development during circumstances such as the present.
A loan of $400,000 is taken out which requires an annual interest payment of 4.4% of the borrowed amount of money (in market dollars). No principal payments are made, only interest is paid. Inflation is 3.8% per year. What will be the value of interest payment at the end of fourth year in real dollars?
Answer:
payment in real dollars 4 years later = $15,160.84
Explanation:
in current dollars, the interest payment = $400,000 x 4.4% = $17,600
if the inflation rate is 3.8% annual, the value of real dollars will increase by (1 + 3.8%)⁴ - 1 = 1.1609 - 1 = 16.09%
this means that we need to discount the nominal payment by $16.09%;
payment in real dollars 4 years later = $17,600 / (1 + 16.09%) = $15,160.84
North Pole Toys needs to decide on their newest product line for Christmas. They narrowed their options to two possibilities: Product A would incur a fixed cost of $3,000 and a variable cost of $6 per unit and sells for $7.50; Product B would incur a fixed cost of $1,200 and a variable cost of $9 per unit and sells for $10.
A. What is the break-even point for each of the two products?
B. What is the point of indifference between the two products?
Answer:
A-1. Product A break-even point = 2,000 units
A.2. Product A break-even point = 1,200 units
B. Point of indifference between the two products = 600 units
Explanation:
A. What is the break-even point for each of the two products?
Break-even point which is the point at which the total cost of production of a product is equal to the total revenue of the product can be calculated using the following formula:
Break-even point = Fixed cost / (Selling price per unit - Variable cost per unit) ........ (1)
Using equation (1), we have:
A-1. Product A break-even point = $3,000 / ($7.50 - $6) = 2,000 units
A.2. Product A break-even point = $1,200 / ($10 - $9) = 1,200 units
B. What is the point of indifference between the two products?
Point of indifference between the two products which is the point at which the total costs of the two products are the same can be calculated as follows:
Differential fixed cost = Product A fixed cost - Product B fixed cost = $3,000 - $1,200 = $1,800
Differential variable cost per unit = Product B fixed cost variable cost per unit - Product A variable cost per unit = $9 - $6 = $3
Point of indifference between the two products = Differential fixed cost / Differential variable cost per unit = $1,800 / $3 = 600 units
Note: To obtain any of the two differentials, the lower must be deducted from the higher as done above.
Symington Corporation uses the periodic inventory system. At December 31, 20X1, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count: Goods held on consignment at Murphy Corporation $ 23,000 Merchandise shipped to a customer on 12/30/20X1 f.o.b. destination (merchandise arrived at customer's location on 1/3/20X2) 12,000 Merchandise shipped to a customer on 12/29/20X1 f.o.b. shipping point (merchandise arrived at customer's location on 1/2/20X2) 6,000 Merchandise purchased from a supplier, shipped f.o.b. destination on 12/29/20X1, in transit at year-end 24,000
Symington's 2018 ending inventory should be:________
Answer:
See below
Explanation:
With regards to the above information, Symington's 2018 ending inventory would be computed as seen below;
= Ending inventory balance at December 31, 20X1 + Goods held on consignment at Murphy corporation + Merchandize shipped to customer on 12/30 and arrived at customer' location on 1/3/2017
= $320,000 + $23,000 + $12,000
= $355,000
Therefore, Symington's 2018 ending balance should be $355,000.
Note that other given information are not relevant to the computation of the ending inventory.
Finances and lack of money are the main reasons that all businesses fail. Suppose your roommate, a Spanish major, tells you they have just inherited the family business from their grandparents. They know you are a business student who is studying entrepreneurship. Describe and explain in 4 separate sentences how the following 4 financial analysis tools can help the small business owner avoid going out of business due to lack of money.
1. Income statement - what is it and what information does it provide to the business owner?
2. Balance sheet - what is it and what information does it provide to the business owner?
3. Statement of cash flows - what is it and what information does it provide to the business owner?
4. Ratio analysis - what is it and what information does it provide to the business owner?
Answer:
See the explanation below.
Explanation:
1. Income statement - what is it and what information does it provide to the business owner?
An income statement can be described as a financial statement that provides information about how profitable a business was during a particular reporting period.
An income statement provides to the business owner information about revenue, expenses, income and losses of his/her business.
2. Balance sheet - what is it and what information does it provide to the business owner?
A balance sheet can be described as a financial statement shows the level of financial position of a company at a specific point in time.
A balance sheet provides to the business owner information about assets, liabilities and owner's equity of his/her business at a specific point in time.
3. Statement of cash flows - what is it and what information does it provide to the business owner?
A statement of cash flows can be described as a financial statement that provides the summary of how much cash and cash equivalents enter and leave a business.
A statement of cash flows provides to the business owner information about cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities of his/her business.
4. Ratio analysis - what is it and what information does it provide to the business owner?
A ratio analysis or financial ratio analysis can be described as a relative magnitude of two numerical values that selected the financial statements of a business.
A ratio analysis provides to the business owner information that enables him to gain insight into the liquidity, operational efficiency, and profitability of his/her business.
Trew Company plans to issue bonds with a face value of $909,000 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent.
Issuance price
Answer:
$757,943
Explanation:
face value = $909,000
maturity = 10 years x 2 = 20 periods
coupon rate = 6% / 2 = 3%
coupon = $27,270
YTM = 8.5% / 2 = 4.25%
using a financial calculator, the PV of the bonds = $757,943
Dr Cash 757,943
Dr Discount on bonds payable 151,057
Cr Bonds payable 909,000
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 20 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $7 per share on the grant date. Required: 1. Determine the total compensation cost pertaining to the restricted shares. 2. Prepare the appropriate journal entries related to the restricted stock through December 31, 2022.
Answer:
See below
Explanation:
1. Total compensation pertaining to the restricted shares
= Fair value per share × Shares granted
= $7 × 20,000,000
= $140,000,000
Therefore, the total compensation cost pertaining to the restricted shares is $140,000,000
2. Journal entries as at December 31, 2021 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid- in capital - restricted stock $70
Journal entries as at December 31, 2022 (in million dollars)
Dr Compensation expense ($140,000,000 ÷ 2 years) $70
Cr Paid in capital - restricted stock $70
Dr Paid in capital restricted stock $140
Cr Common stock (20 million shares × $1 par) $20
Cr Paid in capital in excess of par (remainder) $120
On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal annual installments payable on December 15, 2022, and December 15, 2023. Ignore interest charges. Rigsby has a December 31 year-end. In 2022, Rigsby would recognize realized gross profit of:
Answer:
I have the same gesture
Explanation:
idek
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $66,000. Immediately prior to the sale, the machine was recorded on Grey's books at a net book value of $25,000. Prior to the sale, Grey was depreciating the machine on a straight-line basis with 9 years of remaining life and no salvage value. Blue plans to adopt the same depreciation assumptions as Grey. What elimination adjustments with respect to this sale must be made to consolidated net income in 2018 (ignoring income tax effects)
Answer:
Journal 1 - Eliminate gain on sale :
Debit : Other Income ($66,000 - $25,000) $41,000
Credit : Machinery $41,000
Journal 2 - Eliminate the unrealized profit from the sale :
Debit : Accumulated depreciation $4,556
Credit : Depreciation $4,556
Explanation:
Grey Corp and Blue Company are in a group of Companies. Grey Corp is the Parent and should prepare Consolidated Financial Statements . Blue Company is a subsidiary (Grey owns more that 50 % of voting rights in Blue Company).
When preparing Consolidated Financial Statements, intragroup transaction must be eliminated. As they happen, a Company trades within its-self that is the reason they should be eliminated.
Concerning the sale of machine by Grey (Parent) to Blue (Subsidiary), we must first eliminate the Income (gain on sale) in Parent as well as the asset that sits in the Subsidiary.
Debit : Other Income ($66,000 - $25,000) $41,000
Credit : Machinery $41,000
Also, we have to eliminate the unrealized profit on the gain of the asset sold.
Debit : Accumulated depreciation $4,556
Credit : Depreciation $4,556
Deprecation calculation :
Deprecation = $41,000 ÷ 9 = $4,556
In 2020, Bertha Jarow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions:
Long-term capital loss ($6,000)
Long-term capital loss carryover from 2019 (12,000)
Short-term capital gain 21,000
Short-term capital loss (7,000)
Required:
What is Bertha's net capital gain or loss?
Answer:
Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
Explanation:
Bertha Jarrow had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two months for $18,000) a patent on a rubber bonding process. The patent had not yet been reduced to practice. Bertha purchased the patent as an investment. In addition, she had the following capital gains and losses from stock transactions: Long-term capital loss carryover from 2018 ($6,000) (12,000) 21,000 (7,000) Short-term capital gain Short-term capital loss a. What is Bertha's net capital gain or loss? Bertha has a net long-term capital loss of $ 7,000. Bertha has a net short-term capital gain of $ 14,000 As a result, Bertha has an overall net short-term capital gain of $ 7,000.
b. Complete the letter to Bertha, explaining the tax treatment of the sale of her personal residence. Assume Bertha's income from other sources puts her in the 24% bracket. Nellen, Young, Raabe, & Maloney, CPAs 5191 Natorp Boulevard Mason, OH 45040 March 17, 2020, Ms. Bertha Jarow 120 West Street Ashland, OR 97520 Dear Ms. Jarow: This letter is in response to your request for an explanation of the tax treatment of the sale of your residence. As you know, the residence was sold for less than your cost. Thus, you had a $ loss on the residence sale. Because the home was a personal use asset, tax law does not allow that loss to be deducted on your tax return. Thank you for the opportunity to be of service. Please telephone me if you have additional questions.
Interpersonal communication skills are necessary because they allow people _ and weigh the pros and cons of alternatives before coming up with the final solution.
to discuss problems
to make agreement between co-workers easier
to delegate work responsibilities
to resolve legal issues in the company before they hit the media
In the history of product liability, the rights of produces and consumers have
a.
favored producers.
b.
favored consumers.
c.
remained nuetral.
d.
None of the above
Answer:
a
Explanation:
Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18.56 trillion Be sure to put your answer in percentage form, and round answers to two decimal places. a. Calculate the output gap for 2017. % b. Calculate the output gap for 2018. % c. From 2017 to 2018, the output gap became more .
Answer:
a. Output gap for 2017 = –0.66%
b. Output gap for 2018 = 0.27%
c. From 2017 to 2018, the output gap became more positive.
Explanation:
The following are given in the question:
Year Potential GDP Real GDP
2017 $18.17 trillion $18.05 trillion
2018 $18.51 trillion $18.56 trillion
To calculate output gap in percentage form, the following formula is used:
Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)
Therefore, we have:
a. Calculate the output gap for 2017. %
Using equation (1), we have:
Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%
b. Calculate the output gap for 2018. %
Using equation (1), we have:
Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%
c. From 2017 to 2018, the output gap became more .
Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.
Peter and Lois are planning to open a restaurant that will feature Lois's world-renowned meatloaf. Everyone who has tasted Lois's meatloaf has ranted and raved that it is the most delectable meal they have ever had. Luckily for Peter and Lois, the meatloaf is made using a secret recipe that no one else in the whole world knows about. The only detail of the plan that troubles them is that neither of them knows anything about running a business. In S.W.O.T. Analysis, Lois's secret meatloaf recipe is a _____ and the couple's ignorance about running a business is a _____ in their situation analysis.
Answer:
Peter and Lois Restaurant
In S.W.O.T. Analysis, Lois's secret meatloaf recipe is a _strength____ and the couple's ignorance about running a business is a __weakness___ in their situation analysis.
Explanation:
SWOT means Strengths, Weaknesses, Opportunities, and Threats. Strengths and Weaknesses refer to internal capabilities or resources that are available or lacking. Opportunities and Threats refer to external returns and risks that can elevate or threaten the achievement of business goals.
Selling Something People Could Get for FREE". Is it possible? Comment with example.
Answer:
yes its possible. You could sell dirt
Exercise 13-06 a-b Here are the comparative income statements of Sarasota Corp.. SARASOTA CORP. Comparative Income Statement For the Years Ended December 31 2020 2019 Net sales $588,000 $490,000 Cost of goods sold 449,820 402,780 Gross Profit 138,180 87,220 Operating expenses 85,260 46,550 Net income $ 52,920 $ 40,670 (a) Prepare a horizontal analysis of the income statement data for Sarasota Corp., using 2019 as a base
Answer:
Horizontal Analysis of the Income Statement
For the Year Ended December 31, 2020:
Percentage
Increase
Net sales $588,000 20%
Cost of goods sold 449,820 11.68%
Gross Profit 138,180 58.43%
Operating expenses 85,260 83.16%
Net income $ 52,920 30.12%
Explanation:
a) Data and Calculations:
SARASOTA CORP.
Comparative Income Statement
For the Years Ended December 31
2020 2019 Increase
Net sales $588,000 $490,000 $98,000
Cost of goods sold 449,820 402,780 47,040
Gross Profit 138,180 87,220 50,960
Operating expenses 85,260 46,550 38,710
Net income $ 52,920 $ 40,670 12,250
Net Sales increase = $98,000/$490,000 * 100 = 20%
Cost of goods sold = $47,040/$402,780 * 100 = 11.68%
Gross profit = $50,960/$87,220 * 100 = 58.43%
Operating expenses = $38,710/$46,550 * 100 = 83.16%
Net Income = $12,250/$40,670 * 100 = 30.12%
b) Horizontal Analysis (%) = [(Amount in 2020 – Amount in 2019) / Amount in 2019] * 100. The analysis records the growth trend between the elements of the base year and the comparison year.
Partially correct answer. Your answer is partially correct. Try again. On January 10, 2019, Sheffield Corp. sold merchandise on account to Concord Co. for $21,600, n/30. On February 9, Concord Co. gave Sheffield Corp. a 12% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) (
Answer:
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
Explanation:
Preparation of the journal entry to record the sale and the settlement of the account receivable
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
(Being to record Sales revenue)
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
(Being to record settlement of the account receivable)
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 350 Revenue ($390.00q) $ 136,500 Expenses: Wages and salaries ($11,100 + $120.00q) 53,100 Supplies ($5.00q) 1,750 Equipment rental ($2,500 + $25.00q) 11,250 Insurance ($4,100) 4,100 Miscellaneous ($520 + $1.42q) 1,017 Total expense 71,217 Net operating income $ 65,283 During May, the company’s actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.)
Answer:
Puget Sound Divers
Puget Sound Divers Planning and Flexible Budgets
For the Month Ended May 31
Planning Flexible
Budget Budget
Budgeted diving-hours (q) 350 340
Revenue ($390.00q) $ 136,500 $132,600
Expenses:
Wages and salaries 53,100 51,900
Supplies ($5.00q) 1,750 1,700
Equipment rental 11,250 11,000
Insurance ($4,100) 4,100 4,100
Miscellaneous 1,017 1,003
Total expense 71,217 69,703
Net operating income $ 65,283 $ 62,897
Explanation:
a) Data and Calculations:
Puget Sound Divers Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 350
Revenue ($390.00q) $ 136,500
Expenses:
Wages and salaries ($11,100 + $120.00q) 53,100
Supplies ($5.00q) 1,750
Equipment rental ($2,500 + $25.00q) 11,250
Insurance ($4,100) 4,100
Miscellaneous ($520 + $1.42q) 1,017
Total expense 71,217
Net operating income $ 65,283
Flexing the budget with actual activity of 340:
Revenue ($390.00q) $ 136,500/350 * 340 = $132,600
Expenses:
Wages and salaries ($11,100 + $120.00 * 340) = $51,900
Supplies ($5.00q) 1,750/350 * 340 = $1,700
Equipment rental ($2,500 + $25.00 * 340 = $11,000
Miscellaneous ($520 + $1.42 * 340 = $1,003
You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
Inventory, July 1 $41,010
Purchases-goods placed in stock July 1-15 90,490
Sales revenue-goods delivered to customers (gross) $119,400
Sales returns-goods returned to stock $3,960
Your client reports that the goods on hand on July 16 cost $33,210, but you determine that this figure includes goods of $7,170 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.
Answer:
$23,003
Explanation:
Computation for the claim against the insurance company.
Using this formula
Claim against insurance company = Total cost of goods available for sales - Cost of goods sold - Owned inventory on hand on July 16
Let plug in the formula
Claim against insurance company= ($41,010 + 90,490) - [($119,400 - $3,960)*100/140)] - ($33,210- $7,170)
Claim against insurance company= $131,500 - $82,457 - $26,040
Claim against insurance company= $23,003
Therefore the claim against the insurance company is $23,003
Vaughn Company manufactures equipment. Vaughn’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Vaughn has the following arrangement with Winkerbean Inc.
Winkerbean purchases equipment from Vaughn for a price of $920,000 and contracts with Vaughn to install the equipment. Vaughn charges the same price for the equipment irrespective of whether it does the installation or not. The cost of the equipment is $644,000.
Winkerbean is obligated to pay Vaughn the $920,000 upon the delivery and installation of the equipment. Vaughn delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
Assuming Vaughn does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $35,700; Vaughn prices these services with a 30% margin relative to cost.
How should the transaction price of $920,000 be allocated among the service obligations?
Equipment $
Installation $
Answer: See explanation
Explanation:
The transaction price of $920,000 should be allocated among the service obligations as thus:
For Equipment:
= Fair value of equipment / Total fair value × Transaction price
= (920000 / (920000 + 276000) × 920000
= (920000 / 1196000) × 920000
= $707692
Installation:
= Fair value of installation / Total fair value × Transaction price
= 276000 / (920000 + 276000) × 920000
= (276000 / 1196000) × 920000
= $212308
Harlen Company is involved in a competitive bidding situation. The following costs are anticipated for a project to be bid with the City of Crimson:
Direct material $340,000
Direct labor 610,000
Allocated variable overhead 420,000
Allocated fixed cost 110,000
Which of the following cost figures should be used in setting a minimum bid price if Harlen has excess capacity?
A. $530,000.
B. $950,000.
C. $1,370,000.
D. $1,480,000.
E. None of the answers is correct.
Answer:
C. $1,370,000
Explanation:
Calculation to determine the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity
Direct material $340,000
Direct labor $610,000
Allocated variable overhead $420,000
Minimum bid price $1,370,000
($340,000+$610,000+$420,000)
Therefore the cost figures that should be used in setting a minimum bid price if Harlen has excess capacity is $1,370,000
Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and then he sold it once he had eliminated his loss. If other investors do the same to establish a trading pattern, this would contradict _______. Multiple Choice the strong-form EMH the semistrong-form EMH technical analysis the weak-form EMH
Harley-Davidson motorcycle owners, who pay a price premium for their motorbikes, have formed the Harley Owners Group (HOGs), whose members take motorcycle rides and road trips together. These owners also derive satisfaction by being able to express their individuality and nonconformity through the Harley bikes that they own. Based on these factors, these owners are deriving which types of value from the Harley-Davidson brand
Answer:
Experiential and social value
Explanation:
From the question we are informed about Harley-Davidson motorcycle owners, who pay a price premium for their motorbikes, and have formed the Harley Owners Group (HOGs), whose members take motorcycle rides and road trips together. These owners also derive satisfaction by being able to express their individuality and nonconformity through the Harley bikes that they own. In this case, Based on these factors, these owners are deriving Experiential and social value
from the Harley-Davidson brand.
Experiential value can be regarded as values that comes from perception of the customers that comes directly or indirectly from him/ her as a result of his/ her experience about the product/service. Social value on the other hand can be regarded as quantification of relative importance that is been placed by people on changes that comes their way or experience in their daily lives.
During Year 3, Anywhere, Inc. (AI) incurred the following product costs. Raw materials $ 78,000 Labor 94,288 Overhead 66,000 The Year 2 ending balance in the Work in Process (WIP) account was $34,000. Accordingly, this is the beginning WIP balance for Year 3. There were 125 units of product in beginning WIP inventory. AI started 1,940 units of product during Year 3. Ending WIP inventory consisted of 110 units that were 70 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.
Answer:
Units Complete 1955
Total Product Costs $ 272,288
$ 139.28 per EUP
Total Costs Accounted For = $ 272,292.4
Explanation:
Anywhere, Inc. (AI)
Physical Flow of Units
Beginning Units 125
Units Started 1940
Total units Available for Completion 2065
Less Ending Inventory 110
Units Complete 1955
Total Products Costs
Beginning Inventory Costs $34,000
Material Costs $ 78,000
Labor 94,288
Overhead 66,000
Total Product Costs $ 272,288
Cost Per Equivalents Units
Cost Per Equivalent Unit= Total Cost/ Equivalent Units
= 272288/1955
=139.277
= $ 139.28 per EUP
Costs Accounted For:
Cost Transferred to Finished Goods= ( 1955- 77=1878)*139.28= $261567.84
Ending Inventory Costs = (110*0.7=77)*139.28= 10724.39
Total Costs Accounted For = $ 272,292.4
Which is the almost the same as the given costs
Given Costs= $ 272,288
Costs Accounted For $ 272,292.4
The difference of $4 is due to rounding off.
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 330 employees and Bottling has 220 employees. Indirect factory costs include administrative costs of $192,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.
Answer:
Mixing= $115,199.7
Bottling= $76,799.8
Explanation:
First, we need to calculate the allocation rate for Administrative costs:
Allocation rate= total estimated costs for the period/ total amount of allocation base
Allocation rate= 192,000 / (330 + 220)
Allocation rate= $349.09 per employee
Now, we can allocate costs:
Mixing= 330*349.09= $115,199.7
Bottling= 220*349.09= $76,799.8