Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Material costs 7,500 75% Conversion costs 4,999 45% A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $112,900 Conversion costs $93,900 The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:__________.
a. $21.37
b. $19.47
c. $20.04
d. $20.76
Answers
Answer:
The answer is "21.37'
Explanation:
Please find the solution in the attached file.
Related Questions
7.You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U.S. Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent. What average risk premium did you earn
Answers
Answer: 1.9%
Explanation:
The risk premium is the return that an investment offers over the risk free rate in the market.
The risk free rate is the return on the U.S. Treasury bill in the same period:
Average risk premium = Return on long term corporate bond - Return on U.S. T-bill
= 6.1% - 4.2%
= 1.9%
Because of their sharp quality text output and fast printing speeds, ___ printers are often preferred by businesses.
Answers
Answer:
Laser printer
Explanation:
Laser printers are quicker than inkjet printers (producing more pages per minute), generate higher-quality output (with some limitations), and are better suited for high-volume production. Laser printers produce significantly finer lines than inkjet printers, making them ideal for text, logos, and corporate information graphics.
The SRT partnership agreement specifies that partnership net income be allocated as follows in the following order: Partner S Partner R Partner TSalary allowance $20,000 $25,000 $15,000Interest on avg. capital balance 10% 10% 10%Remainder 30% 30% 40%Average capital balances for the current year were $60,000 for S, $50,000 for R, and $40,000 for T.Refer to the information given. Assuming no restrictions and current year net income of $45,000, what amount should be allocated to each partner? Partner S Partner R Partner TA) $17,000 $21,000 $7,000B) ($9,000) ($9,000) ($12,000)C) $13,500 $13,500 $18,000D) $22,500 $22,500 $0
Answers
Solution :
Note 1
calculation of remaining income after distribution of salary and interest on capital.
Total Net Income $ 45,000
Less : Salary allowance $ 60,000
($20,000 + $25,000 + $15,00)
Less : Interest on capital $ 15,000
($ 6,000 + $ 5,000 + $ 4,000)
Remaining income / (loss) to be allocated $ 30,000
Since the remaining income is negative, i.e. it loss to the SR partnership, so such Loss will also be allocated to the partners. Since in a partnership, Partners are required to share profits as well as losses. Hence, such loss will be deducted from the other shares.
Scheduled of amount allocated to each partner
Partners S Partner R Partner T
a). Salary allowance allocated $ 20,000 $ 25,000 $ 15,000
b). Interest on average capital $ 6000 $ 5000 $ 4000
balance allocated.
c). Remaining income allocated $ 9000 $ 9000 $ 12,000
Total allocation (a + b - c) : $ 17,000 $ 21,000 $ 7,000
Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)
Answers
Answer:
Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238
Credit Notes Receivable $10,200.
Explanation:
Preparation of the the journal entry to record the dishonored note
Debit Accounts Receivable—Valley Spa $10,438
($10,200+$238)
credit Interest Revenue $238
($10,200 x 14% x 60/ 360)
Credit Notes Receivable $10,200
(To record the dishonored note)
During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a distribution of $75,000. On December 31, 2010, his stock basis was $24,000. The corporation earned $50,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct?
a. Kidman's stock basis will be $2,000
b. Kidman's return of capital is $50,000
c. Kidman recognizes a $1,000 LTCG
d. Kidman's ordinary income is $64,000
e. None of the above
Answers
Answer: c. Kidman recognizes a $1,000 LTCG
Explanation:
Long term gain can be calculated by the formula:
Capital gain = Distribution received - Basis in stock - Ordinary income earned
= 75,000 - 24,000 - 50,000
= $1,000
Long Term Capital gain is therefore $1,000.
When moving up along an existing supply curve, all variables other than price are
O increasing
decreasing
O held constant
O fluctuating
Answers
When moving up along an existing supply curve, all variables other than price are held constant. Hence, Option (C) is correct.
When analyzing a supply curve, economists typically assume that all other variables except price remain constant.
This assumption allows for a simplified analysis of the relationship between price and quantity supplied, isolating the impact of price changes on supply.
In reality, numerous factors influence supply, such as input costs, technology, government regulations, and producer expectations.
However, when studying the impact of price on supply, economists use the concept of ceteris paribus (all other things being equal) to hold these other factors constant and focus solely on the relationship between price and quantity supplied.
Thus, by assuming that all other variables are constant, economists can create a simplified model that helps understand the basic behavior of supply and the upward-sloping nature of the supply curve.
Learn more about the supply curve here:
https://brainly.com/question/14925184
#SPJ2
When moving up along an existing supply curve, all variables other than price are
A) increasing
B) decreasing
C) held constant
D) fluctuating
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours
Total fixed manufacturing overhead cost
Variable manufacturing overhead per machine-hour 31,400 $219,800 4
Recently. Job T687 was completed with the following characteristics:
Number of units in the job 10
Total machine-hours
Direct materials
Direct labor cost $ 580 $1,160
The total job cost for Job T687 is closest to: (Round your intermediate calculation to 2 decimal places)
Answers
Answer:
$1960
Explanation:
The computation of the total cost is shown below:
Total variable overhead estimated is
= (4 × 31400)
= $125600
Now
total overhead estimated is
= Total variable overhead estimated + Total fixed overhead estimated
= $125600 + 219800
= $345400
Now predetermined overhead rate is
= $345400 ÷ 31400
= $11 per machine hour
Now total overhead applied is
= (11 × 20)
= $220
So, total job cost is
= Direct material + Direct labor + Total overhead
= (580+1160+220)
= $1960
The following Information is avallable for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials Inventory Office supplies expense $ 4100 5,600 4,600 2,600 The amount of raw materials used in production for the year is: __________ a) $5.100 b) $8,300 c) $5,700 d) $5,600. e) $9,700
Answers
Answer:
a. $5,100
Explanation:
Raw materials used in production = Beginning raw materials inventory + Raw materials purchases - Ending raw materials inventory
Raw materials used in production = $4100 + $5,600 - $4,600
Raw materials used in production = $5,100
So, the amount of raw materials used in production for the year is $5,100.
The acid-test ratio differs from the current ratio in that: _______
a) The acid-test ratio is a measure of liquidity but the current ratio is not.
b) Liabilities are divided by current assets
c) The acid-test ratio measures profitability and the current ratio does not.
d) Prepaid expensand inventory are excluded from the calculation of the acid-test ratio.
e) The acid-test ratio excludes short-term investments from the calculation.
Answers
Answer:
d) Prepaid expensand inventory are excluded from the calculation of the acid-test ratio.
Explanation:
The acid-test can be regarded quick ratio, this ratio makes the comparison between most short-term assets of a company and most short-term liabilities of the company in order to ascertain if there is enough cash for the company to pay immediate liabilities in the company. These immediate liabilities could be short-term debt. There is usually disregards of current assets by acid-test ratio which it's liquidation is difficult example is inventory.
Current ratio can be regarded as ratio that compares current assets of a company and the current liabilities. It can be gotten by finding ratio of current assets of the company and current liabilities. liquidity of a company can be measured using current ratio by potential creditors.
It should be noted that The acid-test ratio differs from the current ratio in that Prepaid expensand inventory are excluded from the calculation of the acid-test ratio.
1. Sharon, a newly engaged woman, saw an advertisement in a bridal magazine for a beautiful pearl necklace priced at $69.99 from Precious Jewelry. She thought the necklace would be a wonderful present for her bridesmaids, so she ordered 5 necklaces from Precious Jewelry. After a few weeks, Sharon received a letter, along with her returned check from Precious Jewelry. The letter stated that the jeweler was sorry they could not fill her order because they had been overwhelmed with so many requests that their supply of necklaces ran out very quickly.
a. List the 3 elements of an offer and describe each (in your own words).
b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?
c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.
Answers
Answer:
a. The three elements which make an offer valid are communication, commitment, and definite terms. The communication of an offer happens between the offeror and the offeree and not with the general public, as depicted by the ad. Commitment in an offer requires that Sharon and Precious Jewelry are identified as the involved parties and are committed to enter a valid contract. Definite terms require no ambiguity.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to treat. Sharon initiated the offer when she ordered for the jewelries. At this point, Precious Jewelry could accept or reject the offer, depending on its capacity.
c. If Sharon sues Precious Jewelry to force it to fill her order, she does not have the good standing required to enforce specific performance of a contract because there is no basis for the existence of a contract between her and Precious Jewelry. Moreover, Sharon’s offer was never accepted by Precious Jewelry and there was no consideration.
Explanation:
A valid contract will exist between Sharon and Precious Jewelry when the five elements of a contract are present. These include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including the capacity of the contracting parties).
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,400,000 of 4-year, 7% bonds at a market (effective) interest rate of 6%, receiving cash of $1,449,138. Interest is payable semiannually on April 1 and October 1.
Required:
A. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles.
1. Issuance of bonds on April 1.
2. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.)
B. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.
Answers
Answer:
A1.Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
Cr Bonds Payable $1,400,000
A2. Oct. 1
Dr Interest Expense $24,431
Dr Premium on Bonds Payable $24,569
Cr Cash $49,000
B. The BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
Explanation:
A1. Preparation of the journal entry to record Issuance of bonds on April 1Apr.1
Dr Cash $1,449,138
Cr Premium on Bonds Payable $49,138
($1,449,138-$1,400,000)
Cr Bonds Payable $1,400,000
(To record Issuance of bonds)
A2. Preparation of the journal entry to record First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method.
Oct. 1
Dr Interest Expense $24,431
($49,000-$24,569)
Dr Premium on Bonds Payable $24,569
[($1,449,138-$1,400,000)4*2]
Cr Cash $49,000
( $1,400,000 x 7% x 6/12)
(To record First interest payment and amortization of bond premium )
B. Based on the information given the reason
WHY the company was able to issue the bonds for $20,811,010 RATHER THAN for the FACE AMOUNT of $20,000,000 was because the BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.
(Select all that apply) Maria is researching social media usage in her company for a marketing meeting later in the month. What should she consider as she chooses sources to read and/or include
Answers
Answer:
Hello,
this question above appears to be missing options from which one is to select from. In the absence of those, an alternative approach would suffice.
When considering sources for research, Maria should take she must consider sources that meet the following requirements:
DepthObjectivityCurrency of SourceAuthorityPurposeExplanation:
Depth: A source with just a simple cursory overview may not suffice. It is pertinent to elect a source that treats the subject matter in sufficient depth and which uses data to support its position on the topic she is researching Objectivity: If any source takes a biased position on the topic Maria is researching, then it is not a good source. Maria wants to ensure that the author of the source has not taken a position that does not have a balanced view. If any source is not properly cited it should not count.The currency of source: Simple logic requires that a source that is more up-to-date should be preferred above one that is dated. The rule of thumb requires that where possible, sources cited should not be older than 3 years.Authoritative: The more qualified an Author is in the field under consideration, the more reputable the company it works for, the more authoritative that source is considered to bePurpose: Sometimes a text may contain several sub-topics which build up to buttress its primary purpose. Sometimes, these sub-topics may deviate slightly from the main topic. To cite from the sub-topics because it aligns with her work would be a mistake on Maria's part. For example, if she cites from a research proposal whose main topic is Photo Journalism in the Wild West, but which references or the importance of social media in one of its paragraphs, that citation would not be considered adequate because the purpose of the main body is not specific to her work.Cheers
For a manufacturing company, selling price for an item is $480.00 per Unit, Variable cost is $248.00 per Unit, rent is $7,480.00 per month and insurance is $3000 per month. What is the contribution margin
Answers
Answer: $232
Explanation:
The Contribution margin of a business refers to the amount left from it's sales after the variable costs have been accounted for.
It can be calculated by the formula:
= Selling price per unit - Variable cost per unit
= 480 - 248
= $232
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment. a) True b) False
Answers
Answer:
a) True
Explanation:
Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by
companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.
Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.
It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.
We have created the following Planned Production Orders over the planning period: 130 Product A We have the following Raw Materials on hand and available to be dedicated to these Planned Production Orders: Enough Raw Materials to product 70 Product A There are Purchase Orders at our suppliers for the following Raw Materials: 40 Product A How many products should we order on New Purchase Orders with our suppliers
Answers
Answer:
20
Explanation:
The computation of the no of products that should be ordered on the new purchased is shown below
We know that
New purchase order = Planned Production Order - Raw material available - purchase order for planned production
In this if the value is in negative, so it will be zero
So,
New Purchase Order (POnew) = maximum(0, PP - RM - SR)
Here,
PP = 130 Product A
RM = 70 Product A
SR = 40 Product A
Therefore POnew is
= maximum (0, 130-70-40)
= maximum (0, 20)
= 20
hen Steve Jobs updated his company name from Apple Computer to Apple in 2007, which part of the brand positioning was he changing
Answers
Answer:
Frame of reference
Explanation:
In simple words, The "frame of reference" in marketing refers to how the targeted customer perceives a latest brand, service, or proposition. This conjures up a certain image or impression of a product, service, or concept that is being promoted. A frame of reference can be understood as the point of comparative valuation that your advertisers may use to assist position and distinguish your goods in the business.
Suppose the black market shrinks because firms shift to the formal sector, but production remains the same. GDP
Answers
Answer: will increase but this will not affect living standards
Explanation:
GDP is sometimes called an incomplete measure because there are certain measures that it does not include such as the black market.
If firms in the black market shift to the formal sector, they will now be included in GDP which means that GDP will increase.
The living standards of people in the country will probably not change however because the firms involved were simply shifting sectors and are not said to be more or less prosperous as a result. Assuming they remained the same, nothing changes for living standards.
Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following unadjusted trial balance at the end of its first year of operations:
Crazy Mountain Outfitters Co.
Unadjusted Trial Balance
April 30, 2018
Debit
Balances Credit
Balances
Cash 11,400
Accounts Receivable 72,600
Supplies 7,200
Equipment 112,000
Accounts Payable 12,200
Unearned Fees 19,200
Common Stock 20,000
Retained Earnings 117,800
Dividends 10,000
Fees Earned 305,800
Wages Expense 157,800
Rent Expense 55,000
Utilities Expense 42,000
Miscellaneous Expense 7,000
475,000 475,000
For preparing the adjusting entries, the following data were assembled:
Required:
Supplies on hand on April 30 were $1,380.
Fees earned but unbilled on April 30 were $3,900.
Depreciation of equipment was estimated to be $3,000 for the year.
Unpaid wages accrued on April 30 were $2,475.
The balance in unearned fees represented the April 1 receipt in advance for services to be provided. Only $14,140 of the services was provided between April 1 and April 30.
2. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. before the adjusting entries.
Revenues $
Expenses
Net income $
3. Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
Revenues $
Expenses
Net income $
4. Determine the effect of the adjusting entries on Retained Earnings.
Retained Earnings increases by $.
Answers
Answer:
1. Dr Supplies expense $5,820
Cr Supplies $5,820
Dr Accounts receivable $3,900
Cr Earned fees $3,900
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
Dr Wages expense $2,475
Cr Wages payable $2,475
Dr Unearned fees $14,140
Cr Fees earned $14,140
2. Revenues $305,800
Expenses $261,800
Net income $44,000
3. Revenue $323,840
Expense $261,800
Net income $50,745
4. $6,745 Increase
Explanation:
1. Preparation of the journal entries necessary on April 30. 2019
Dr Supplies expense $5,820
Cr Supplies $5,820
($7,200-$1,380)
(To record supplies used)
Dr Accounts receivable $3,900
Cr Earned fees $3,900
(To record accrued fees Earned)
Dr Depreciation expense $3,000
Cr Accumulated depreciation $3,000
(To record equipment Depreciation)
Dr Wages expense $2,475
Cr Wages payable $2,475
(To record accrued wages)
Dr Unearned fees $14,140
Cr Fees earned $14,140
(To record fees earned)
2. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries.
REVENUE
Fees earned $305,800
EXPENSE:
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Expense $261,800
NET INCOME $44,000
($305,800-$261,800)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters before the adjusting entries will be:
Revenues $305,800
Expenses $261,800
Net income $44,000
3. Calculation to Determine the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries.
REVENUE
Fees Earned $305,800
Fees earned but unbilled $3,900
Unearned fees $14,140
Revenue $323,840
EXPENSE
Wages Expense $157,800
Rent Expense $55,000
Utilities Expense $42,000
Miscellaneous Expense $7,000
Supplies expense $5,820
Depreciation of equipment $3,000
Unpaid wages accrued $2,475
Expense $273,095
NET INCOME $50,745
($323,840-$273,095)
Therefore the revenues, expenses, and net income of Crazy Mountain Outfitters Co. after the adjusting entries will be:
Revenue $323,840
Expense $261,800
Net income $50,,745
4. Calculation to Determine the effect of the adjusting entries on Retained Earnings.
Effect of the adjusting entries=$50,745-$44,000
Effect of the adjusting entries=$6,745
Therefore the effect of the adjusting entries on Retained Earnings is Retained Earnings increases by $6,745
Knoll Company started Year 2 with a $1,000 balance in its Cash account, a $200 balance in its Supplies account and a $1,200 balance in its common stock account. During Year 2, the company experienced the following events:_______.
(1) Paid $600 cash to purchase supplies.
(2) Physical count revealed $50 of supplies on hand at the end of Year 2. Based on this information the amount of supplies expense reported on the Year 2 income statement is:_______.
Answers
Answer:
$750
Explanation:
Calculation to determine what the amount of supplies expense reported on the Year 2 income statement is:
Using this formula
Supplies expense=Balance in Supplies account
+Cash paid to purchase supplies)-Supplies on hand
Let plug in the formula
Supplies total amount =($200 + $600) -$50
Supplies total amount=$800-$50
Supplies total amount=$750
Therefore the amount of supplies expense reported on the Year 2 income statement is:$750.
Nadal Inc. had two temporary differences at the end of 2013. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows:
Taxable amounts:
2014 $40,000
2015 $50,000
2016 $60,000
2017 $80,000
Deductible amounts:
2014 $0
2015 $(15,000)
2016 $(19,000)
2017 $0
As of the beginning of 2013, the enacted tax rate is 34% for 2013 and 2014, and 38% for 2015-2018. At the beginning of 2013, the company had no deferred income taxes on its balance sheet. Taxable income is expected in all future years.
A. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013.
B. Indicate how deferred income taxes would be classified on the balance sheet at the end of 2013.
Answers
Answer:
72,880
Explanation:
Given:
Taxable amounts are as follows,
2014$40,000
2015$50,000
2016$60,000
2017$80,000
Deducible amounts are as folllows,
2014$0
2015$(15,000)
2016$(19,000)
2017$0
Solution:
Taxable amount is as follows,
2014$40,000-34%-13,600
2015$35,000-38%-13,300
2016$41,000-38%-15,580
2017$80,000-38%-30,400
Therefore the deferred liability 72,880
To income tax provision 72,880
This would be shown as deferred tax liability under the long term liabilities head with amount of $72,880
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1000 and the one-year and 11-year spot interest rates are 5 and 7 percent respectively. What is the forward price of your contract
Answers
Answer:
$498.94
Explanation:
1 year interest rate = 5%
11 year interest rate = 7%
10 year spot interest rate at end of 1 year = [{(1+0.07)^11 / (1+0.05)}^(0.1) - 1]
10 year spot interest rate at end of 1 year = [(2.104852/1.05)^0.1] - 1
10 year spot interest rate at end of 1 year = 1.07202083615 - 1
10 year spot interest rate at end of 1 year = 0.072021
10 year spot interest rate at end of 1 year = 7.202%
Face value = $1,000
Forward Price of contract = $1000/(1+0.0720)^10
Forward Price of contract = $1000/2.00423136
Forward Price of contract = 498.944392915
Forward Price of contract = $498.94
Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $68,000 for $68,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually on December 31.
Required:
Record the bond issue and first interest payment on June 30, 2021.
Answers
Answer:
Here the answer is given as follows,
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currently is purchasing 26,000 units from an outside supplier for $16 per unit. Polk is currently operating at less than its full capacity of 630,000 units and has variable costs of $9 per unit. The full cost to manufacture the unit is $12. Polk currently sells 460,000 units at a selling price of $18 per unit.
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
b. What is the minimum transfer price from Polk’s perspective?
c. What is the maximum transfer price from Bishop’s perspective?
Answers
Answer:
a. The effect is that Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. Minimum transfer price = $9
c. Maximum transfer price from Bishop’s perspective = $16.
Explanation:
a. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
To determine this, fixed cost is ignored because it considered irrelevant. Therefore, we have:
Profit per unit = Purchase price from outside - Variable cost of production internally = $16 - $9 = $7
Total increment in operating profit = Current purchase unit of Bishop * Profit per unit = 26,000 * $7 = $182,000
Therefore, Avery Company’s operating profit will increase by $182,000 if the transfer is made internally.
b. What is the minimum transfer price from Polk’s perspective?
Since Polk is currently operating at less than its full capacity, this implies that it will not incur additional fixed cost to produce current purchase units of Bishop. Therefore, only its variable cost of $9 will have to recovered. By implication, we have:
Minimum transfer price = Variable cost = $9
c. What is the maximum transfer price from Bishop’s perspective?
Any price that is higher than $16 at which Bishop is currently purchasing from an outside supplier will result in a loss for Bishop and the increment profit of $182,000 will be lost by Avery Company. This therefore implies that:
Maximum transfer price from Bishop’s perspective = Price at which Bishop is currently purchasing from an outside supplier = $16
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost On August 1, Cairle Company's work-in-process inventory consisted of three jobs with the following costs: Job 70 Job 71 Job 72 Direct materials $1,600 $2,000 $850 Direct labor 1,900 1,300 900 Applied overhead 1,425 975 675 During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows: Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $800 $1,235 $3,550 $5,000 $300 $560 $80 Direct labor 1,000 1,400 2,200 1,800 600 860 172
Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.
Required:
1. Calculate the predetermined overhead rate based on direct labor cost.
% of direct labor cost.
2. Calculate the ending balance for each job as of August 31.
Ending Balance
Job 70 $
Job 71 $
Job 72 $
Job 73 $
Job 74 $
Job 75 $
Job 76 $
3. Calculate the ending balance of Work in Process as of August 31.
$
4. Calculate the cost of goods sold for August.
$
5. Assuming that Cairle prices its jobs at cost plus 20 percent, calculate Cairle’s sales revenue for August.
Answers
Answer:
Cairle Company
1. The predetermined overhead rate based on direct labor cost is:
= 75% of direct labor cost.
2. August 31 Ending Balances:
Job 70 $7,475
Job 71 $7,960
Job 72 $9,825
Job 73 $8,150
Job 74 $1,350
Job 75 $2,065
Job 76 $384
3. Ending balance of Work in Process, August 31:
= $9,694
4. The cost of goods sold for August = $11,890
5. Sales revenue for August = $14,268
Explanation:
a) Data and Calculations:
Work in process inventory on August 1:
Job 70 Job 71 Job 72 Job 73 Job 74 Job 75 Job 76
Direct materials $1,600 $2,000 $850
Direct labor 1,900 1,300 900
Applied overhead 1,425 975 675
Direct materials $800 $1,235 $3,550 $5,000 $300 $560 $80
Direct labor 1,000 1,400 2,200 1,800 600 860 172
Applied overhead 750 1,050 1,650 1,350 450 645 129
Total costs $7,475 $7,960 $9,825 $8,150 $1,350 $2,065 $384
Work in Process:
Job 71 $7,960
Job 74 1,350
Job 76 384
Total $9,694
Cost of goods sold:
Job 72 $9,825
Job 75 $2,065
Total $11,890
Sales revenue = $14,268 ($11,890 * 1.20)
Robot uses competitive analysis processs to collect data on what their competitors are doing. Which of the following is not a test does the company puts each competitor's robot through?
A. Drop.
B. Lab.
C. Edge.
D. Straight line.
E. Box.
Answers
Answer:
Drop
Explanation:
Competitive Analysis
This is commonly refered to as a form of research review and final evaluation of one's competitors. It is beneficial due to the fact that the information you obtained/known can help you to be based on your competitor weaknesses
When starting this analysis, always you set up expectations that can be achieved so that one's team has enough time to fully research, analyze, and share their findings.
Competitive analysis, as a part of your business planning, is a means by which an individual believes that their business will survive and thrive competitively in the market because the individual has full attachment to current competitors and one's potential competition too. Putting the robot through a drop test is not correct as it may destroy it.
everyone makes mistakes sometimes. when we ask your most recent manager what types of mistakes you would be least likely to make on the job what will they say
Answers
Answer:
needs to be more spefic
Explanation:
May 1 Prepared a company check for $450 to establish the petty cash fund.
May 15 Prepared a company check to replenish the fund for the following expenditures made since May 1.
a. Paid $160 for janitorial services.
b. Paid $120 for miscellaneous expenses.
c. Paid postage expenses of $80.
d. Paid $41 to The County Gazette (the local newspaper) for an advertisement.
e. Counted $63 remaining in the petty cash box.
May 16 Prepared a company check for $150 to increase the fund to $600.
May 31 The petty cashier reports that $240 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
f. Paid postage expenses of $205.
g. Reimbursed the office manager for business mileage, $103.
h. Paid $34 to deliver merchandise to a customer, terms FOB destination.
May 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $120, leaving a total of $480.
Required:
Journalize the entries.
Answers
Answer:
Journal Entries:
May 1 Debit Petty Cash $450
Credit Cash $450
To establish the petty cash fund.
May 15 Debit Petty Cash $387
Credit Cash $387
To replenish the fund for expenses.
a. Debit Janitorial Expenses $160
Credit Petty Cash $160
b. Debit Miscellaneous expenses $120
Credit Petty Cash $120
c. Debit Postage expenses $80
Credit Petty Cash $80
d. Debit Advertisement $41
Credit Petty Cash $41
e. Debit Petty Cash $14
Credit Cash overage $14
To recognize the cash overage.
May 16 Debit Petty Cash $150
Credit Cash $150
To increase the petty cash fund to $600.
May 31 Debit Petty Cash $360
Credit Cash $360
To replenish the fund for expenses.
f. Debit Postage expenses $205
Credit Petty Cash $205
g. Debit Transport expense $103
Credit Petty Cash $103
h. Debit Freight-out $34
Credit Petty Cash $34
Debit Shortage $18
Credit Petty Cash $18
May 31 Debit Cash $120
Credit Petty Cash $120
To reduce the petty cash fund to $480.
Explanation:
a) Data and Analysis:
May 1 Petty Cash $450 Cash $450
May 15 Petty Cash $387 Cash $387
a. Janitorial Expenses $160 Petty Cash $160
b. Miscellaneous expenses $120 Petty Cash $120
c. Postage expenses $80 Petty Cash $80
d. Advertisement $41 Petty Cash $41
e. Petty Cash $14 Cash overage $14
May 16 Petty Cash $150 Cash $150
May 31 Petty Cash $360 Cash $360
f. Postage expenses $205 Petty Cash $205
g. Transport expense $103 Petty Cash $103
h. Freight-out $34 Petty Cash $34
Shortage $18 Petty Cash $18
May 31 Cash $120 Petty Cash $120
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the cappuccino and Paul's Cafe and Bakery was willing to accept S1.25 for the cappuccino. Based on this information, answer the questions below.
Michelle's consumer surplus is equal to: _______
Paul's Bakery's producer surplus is equal to:__________
Answers
Answer:
$2
$3.50
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$6.75 - $4.75 = $2
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$4.75 - $1.25 = $3.5
The manager of an air conditioning manufacturing plant wants to train their service installers on the steps to follow to install the new units. Which visual aid listed below is the best option?
Answers
Answer: can you please provide me with some options
Explanation:
No options are listed
Henley Corporation has bonds on the market with 12 years to maturity, a YTM of 9.7 percent, a par value of $1,000, and a current price of $948. The bonds make semiannual payments. What must the coupon rate be on the bonds
Answers
Answer:
8.96%(9.0% rounded to 1 decimal place since YTM of 9.7% was also to 1 decimal place)
Explanation:
In ascertaining the coupon rate, we need to, first of all, determine the semiannual coupon payment(since the bond pays coupons on a semiannual basis) of the bond using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=24(number of semiannual coupons in 12 years left to maturity=12*2=24)
I/Y=4.85(semiannual yield to maturity without the "%" sign=9.7%/2=4.85%)
PV=-948( the current bond price of $948 shown as a negative since it is an outflow of cash for the bond investor)
FV=1000(the bond face value of $1000)
CPT
PMT=$44.79
semiannual coupon=face value*coupon rate/2
$44.79=$1000*coupon rate/2
$44.79*2==$1000*coupon rate
$89.58=$1000*coupon rate
coupon rate=$89.58/$1000
coupon rate=8.96%
