Answer:
The only dominant strategy in this game is for Kyoko to choose Left. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses Right and Kyoko chooses Left.
Explanation:
A dominant strategy is strategy that makes a player better off regardless of the strategy of his opponents in a game.
From the payoff matrix, it can be observed that, when Jacques plays Left, Kyoko will also play Left because 4 > 3. But, when Jacques plays Right, Kyoko will still play Left because 4 > 3. This indicated that Kyoko will always play Left no matter what Jacques plays. As a result, the dominant strategy for Kyoko is Left.
On the other hand, when Kyoko plays Left, Jacques will play Right because 5 > 4. But when Kyoko plays Right, Jacques will play Left because 6 > 5. This shows that Jacques does not have any particular strategy that make him better off. As a result, Jacques does not have a dominant strategy.
Based on the above analysis, we have:
The only dominant strategy in this game is for Kyoko to choose Left. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses Right and Kyoko chooses Left.
A young college student on a tight budget is campaigning for an open city council seat. A friend in her economics class estimates that voters are influenced by TV and newspaper ads according to the following function: Votes = 300TV0.6 NP0.2, where TV represents the number of television ads and NP represents the number of newspaper ads. Thus, the marginal product of a newspaper ad is 60TV0.6 NP–0.8 and the marginal product of a TV ad is 180TV–0.4 NP0.2. A local television ad costs $400, and a local newspaper ad costs $250. If the candidate needs 1,800 votes to win, what is the lowest-cost combination of newspaper and TV ads that will bring her victory?
Answer:
Explanation:
..
Assume that the U.S. borrowing rate is 8% while the German is 10%. If Euros are borrowed by a U.S. firm for one year, they would have to _____ against the dollar by_____ to have the same effective financing rate as borrowing dollars. Group of answer choices Appreciate, 1.1818%. Appreciate, 1.8518%. Depreciate, 1.6363%. Depreciate, 1.8518%. Depreciate, 1.1818%.
Answer:
Depreciate 1.1818
Explanation:
U.S. has a borrowing rate of 8% and German has borrowing rate of 10%. If U.S. dollars are borrowed from firm then Euros will depreciate to match with the dollar borrowing.
[1 + 8% ] / [ 1 + 10%] - 1 = - 1.1818
Reliability is how long an item or system will perform its function before it breaks. Good reliability will ______________________. Decrease logistics support requirements Increase life cycle sustainment costs Decrease system readiness Increase manpower waste
Answer:
Decrease logistics support requirements.
Explanation:
Decrease logistics support requirements is the correct answer because the increase in reliability decreases the requirement to correct the commodity or equipment. Therefore, the logistic support decreases which further decreases the manpower waste. Additionally, the good reliability shows that the product's quality is good and it will work efficiently for a longer time period. Thus, a good quality product requires less logistic support.
Reliability is a quality of being trustworthy and in performing constantly well. It result in measurement and calculations and tends to be more accurate.
Thus there is a decrease in logistics support requirements. When the system function before it breaks. Good reliability will always support the system.Hence the option A is correct.
Learn more about the or system will perform its function before.
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The management of Felipe Inc. is reevaluating the appropriateness of using its present inventory cost flow method, which is average-cost. The company requests your help in determining the results of operations for 2020 if either the FIFO or the LIFO method had been used. For 2020, the accounting records show these data:
Question Completion:
Inventories:
Beginning 9,940 units $19,880
Ending 24,140 units
Total net Sales (255,600 units) $1,060,740
Cost of goods purchased (269,800 units) $867,620
Quarterly Purchases:
Quarters Units Unit Costs Total Costs
1 71,000 $2.98 $211,580
2 56,800 3.10 176,080
3 56,800 3.26 185,168
4 85,200 3.46 294,792
Answer:
Felipe Inc.
Income Statement for the year ended December 31, 2020:
FIFO LIFO
Sales Revenue $1,060,740 $1,060,740
Cost of goods sold 803,976 825,304
Operating results $256,764 $235,436
Explanation:
a) Data and Calculations:
Quarters Units Unit Costs Total Costs
Beginning 9,940 $2.00 $19,880
1 71,000 $2.98 211,580
2 56,800 3.10 176,080
3 56,800 3.26 185,168
4 85,200 3.46 294,792
Total 279,740 $887,500
Units sold 255,600
Ending inventory = 24,140 (279,740 - 255,600)
FIFO:
Cost of goods sold
= Cost of goods available for sale - Ending inventory
= $803,975.60 ($887,500 - $83,524.40)
Ending Inventory:
= $83,524.40 (24,140 * $3.46)
LIFO:
Cost of goods sold
= Cost of goods available for sale - Ending inventory
= $825,304 ($887,500 - $62,196)
Ending Inventory:
= (9,940 * $2.00) + (14,200 * $2.98)
= ($19,880 + $42,316)
= $62,196
Aug. 1 Madison Harris, the owner, invested $10,250 cash and $44,075 of photography equipment in the company.
2 The company paid $3,900 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,948 cash.
20 The company received $3,050 cash in photography fees earned.
31 The company paid $866 cash for August utilities.
Prepare general journal entries for the above transactions.
Answer and Explanation:
The journal entries are shown below:
(i) On August 1,
Cash A/c Dr. $10,250
photography equipment A/c Dr. $44,075
To common stock $54,325
(Being the issuance of common stock for cash and photography equipment is recorded)
(ii) On August 2,
Prepaid insurance A/c Dr. $3,900
To cash $3,900
(Being the cash paid in advance for insurance is recorded)
(iii) On August 5,
Office supplies A/c Dr. $1,948
To cash $1,948
(Being the cash paid for office supplies is recorded)
(iv) On August 20,
Cash A/c Dr. $3,050
To photography fees earned $3,050
(Being the photography fees earned is recorded)
(v) On August 31,
Utilities A/c Dr. $866
To cash A/c $866
(Being the cash paid for utilities)
MC Qu. 114 Lowden Company has an overhead application... Lowden Company has an overhead application rate of 155% and allocates overhead based on direct material cost. During the current period, direct labor cost is $60,000 and direct materials used cost $90,000. Determine the amount of overhead Lowden Company should record in the current period.
Answer:
the overhead amount recorded is $139,500
Explanation:
The computation of the overhead amount recorded is shown below:
= Overhead application rate × direct material cost
= 155% × $90,000
= $139,500
Hence, the overhead amount recorded is $139,500
We simply applied the above formula so that the correct value could come
Classify each statement about the Federal Reserve System as either true or false.
1. The Federal Reserve was established by the U.S. Constitution in the late 1700s.
2. The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
3. All Federal Reserve actions are subject to veto by the executive branch.
4. The Federal Reserve determines monetary policy in the United States.
5. The Federal Reserve was created by the Federal Reserve Act of 1913.
Answer:
1. The Federal Reserve was established by the U.S. Constitution in the late 1700s
Classification: False
2. The national objectives of the Federal Reserve include promoting economic growth, full employment, stable prices, and moderate interest rates.
Classification: True
3. All Federal Reserve actions are subject to veto by the executive branch.
Classification: False
4. The Federal Reserve determines monetary policy in the United States.
Classification: True
5. The Federal Reserve was created by the Federal Reserve Act of 1913.
Classification: True
Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction. What would be included in those additional steps
Answer: order-routine specification
problem recognition
Explanation:
Business-to-business transactions occur when a business makes a transaction with another business. It should be noted that this takes place when the business is sourcing materials which will be used for their production process.
Since Gary is walking through his organization's buying process and has identified some additional steps that are needed in a B2B transaction, the additional steps should include the order-routine specification and the problem recognition.
How do you feel when you buy a product that is overpriced?
any traditional costing systems: Multiple Choice write off manufacturing overhead as an expense of the current period. combine widely varying elements of overhead into a single cost pool. produce results far superior to those achieved with activity-based costing. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.
Answer:
combine widely varying elements of overhead into a single cost pool
Explanation:
A Traditional cost system is the system where the overhead cost are allocated that depend upon the cost driver volume. It determined the overhead cost per unit by measuring the total overhead cost i.e. incurred and this is be divided by the number of units produced
So as per the given options, the above option should be considered
The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families:
Buildings and improvements $ 234 Goodwill $ 593
Prepaid expenses and other current assets 392 Machinery, equipment, and software 504
Allowance for doubtful accounts 16 Accumulated depreciation 509
Other noncurrent assets 658 Inventories 340
Accumulated amortization (other intangibles) 798 Other intangibles 1,123
Cash and cash equivalents 893 Land and improvements 7
Accounts receivable 1,111
Required:
Prepare the asset section of the balance sheet for Hasbro, Inc., classifying the assets into Current Assets, Property, Plant, and Equipment (net), and Other Assets. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated by a minus sign.)
Answer:
Hasbro, Inc.
Balance Sheet
Assets
Current Assets:
Cash and cash equivalents $893
Accounts receivable 1,111
Allowance for doubtful accounts (16) 1,095
Inventories 340
Prepaid expenses and
other current assets 392
Total current assets $2,720
Property, Plant, and Equipment (net):
Buildings and improvements $ 234
Land and improvements 7
Machinery, equipment, and software 504
Other noncurrent assets 658
Accumulated depreciation (509)
Property, Plant, and Equipment (net) $894
Other Assets:
Goodwill $ 593
Other intangibles 1,123
Accumulated amortization
(other intangibles) 798 325
Other assets $918
Total assets $4,532
Explanation:
a) Data and Calculations:
Current Assets:
Cash and cash equivalents $893
Accounts receivable 1,111
Allowance for doubtful accounts (16) 1,095
Inventories 340
Prepaid expenses and
other current assets 392
Total current assets $2,720
Property, Plant, and Equipment (net):
Buildings and improvements $ 234
Land and improvements 7
Machinery, equipment, and software 504
Other noncurrent assets 658
Accumulated depreciation (509)
Property, Plant, and Equipment (net) $894
Other Assets:
Goodwill $ 593
Other intangibles 1,123
Accumulated amortization
(other intangibles) 798 325
Other assets $918
Profit margin is calculated by dividing Group of answer choices sales by cost of goods sold. gross profit by net sales. net income by stockholders' equity. net income by net sales. Flag question: Question 19
Answer:
net income by net sales.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider and it eventually determines the profit margin of a business firm.
In Financial accounting, profit margin can be defined as a measure of the profitability of a business over a specific period of time. Thus, it is simply the amount of money by which revenue generated through sales exceed the costs of a product.
Hence, profit margin is calculated by dividing net income by net sales or net profits by net sales over a specific period of time.
Strack Houseware Supplies Inc. has $889 million in total assets. The other side of its balance sheet consists of $142.24 million in current liabilities, $257.81 million in long-term debt, and $488.95 million in common equity. The company has 29,400,000 shares of common stock outstanding, and its stock price is $88 per share. What is Strack's market-to-book ratio
Answer:
See below
Explanation:
Given the above information,
Market value = Common stock outstanding × Stock price
Market value = 29,400,000 × $88
Market value = $2,587,200,000
Common equity = $488.95 million
Then,
Market to book ratio = $2,587,200,000 / $488,095,000
Market to book ratio = 5.30
Therefore, Strack's market to book ratio is 5.30
Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of interest income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Answer:
$532
Explanation:
The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.
a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)
b. $14,000 ($214,000 - $200,000)
Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.
Net Investment Income = $14,000
Net investment income tax liability = Net Investment Income * 3.8%
Net investment income tax liability = $14,000 * 3.8%
Net investment income tax liability = $532
So, Allen's net investment income tax liability this year is $532.
Poorer developing countries which often produce and export primary commodities tend to face unfair _____________________ in relationship to rich countries that produce manufactured (capital) goods. Question 15 options:
Answer:
Poorer developing countries which often produce and export primary commodities tend to face unfair _______exchange values______________ in relationship to rich countries that produce manufactured (capital) goods.
Explanation:
Unfair exchange value means that rich countries that use the primary commodities of poorer developing countries to produce manufactured goods, especially capital goods, sell the manufactured goods at values that are not real or too exorbitant. This practice contributes to the unfairness of international trade. It also means that the prices at which the primary commodities are bought form the poorer countries are too low when compared with the prices of the manufactured capital goods sold by rich countries to poorer countries.
The expected average rate of return for a proposed investment of $4,250,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $8,500,000 over the 20 years is:_________ (round to two decimal points).
a. 10.00%
b. 20.00%
c. 40.00%
d. 1.00%
Answer:
A
Explanation:
Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
average rate of return = average net income / average cost of investment
average net income = (total net income - depreciation) / useful life
(8,500,000 - $4,250,000) / 20 = 212,500
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
($4,250,000 - 0) / 2 = 2,125,000
ARR = 212,500 / 2125,000 = 0.1 = 10%
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,300 and will produce cash flows as follows:
End of Year Investment
A B
1 $8,300 $0
2 8,300 0
3 8,300 24,900
The present value factors of $1 each year at 15% are: __________
George Washington Carver developed new
A.military strategies
B. web 2.0 products
C. agricultural innovations
D. long-distance communication
George Washington Carver developed new agricultural innovations. Thus, the correct answer is option (C).
Who was George Washington Carver?George Washington Carver was an American agricultural scientist and inventor who advocated for non-cotton crops and ways to avoid soil depletion. He was a famous black scientist in the early twentieth century.
Carver created an agriculture extension in Alabama as well as an industrial research lab, where he worked tirelessly on the development of hundreds of novel plant applications. Carver created his crop rotation technique at Tuskegee, which alternated nitrate-producing legumes like peanuts and maize with cotton, which depletes the soil of nutrients. His innovations are attributed with ensuring the South's economic survival in the early twentieth century.
Therefore, George Washington Carver is considered to have made large contributions in agricultural innovations.
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On May 10, 2020, Marin Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,350. Marin delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Marin related to this contract. Either party may terminate the contract without compensation until one of the parties performs
Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
Explanation:
Preparation of the journal entries for Cosmo related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: A/R for 2,060
Credit: Revenue for 2,060
Debit: COGS for 1,350
Credit: Inventory for 1,350
July 15, 2020
Debit: Cash for 2,060
Credit: A/R for 2,060
A firm that operates outside of a trading bloc will likely face the improved position of competitors within the trading bloc. True False
Answer:
True
Explanation:
In the case when the firm operated outside for a trading bloc due to which it improved the position of the competitors so this should be true as the trading bloc should be the economic integration and it can shape the pattern of thw world trade that protect from non-members imports
So, the given statement is true
A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the shipping channels for imported goods have closed due to the weather. What will happen to the price and quantity sold of hot chocolate made with imported cocoa?1) Price and quantity will both increase2) Price will increase and the effect on quantity cannot be determined3) Price will increase and quantity will decrease4) Neither the effect on quantity nor the effect on price can be determined
Answer:
2
Explanation:
As a result of the weather, the demand for chocolate increases. the demand curve shifts to the right. there is an increase in equilibrium price and quantity
As a result of the channels closing, the supply of imported cocoa falls. As a result, supply decreases. the supply curve shifts to the left
A real estate attorney employed by a large national clothing store evaluates sites across the United States, searching for ideal locations for new stores. Which type of property is the attorney surveying?
Answer: Commercial
Explanation:
Commercial property refers to the real estate which is used for business activities. It simply refers to the buildings that are used for business purposes, as well as land that are utilized for the generation of profit.
Since the real estate attorney employed by a large national clothing store evaluates sites across the United States, searching for ideal locations for new stores, the attorney is looking for a commercial property.
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost of goods sold? Group of answer choices $7 million overstated $7 million understated no effect none of the above
Answer:
$7million understated
Explanation:
Based on the information given the effect on 20x8 COST OF GOODS SOLD will be UNDERSTATED by $7 million reasons been that since the OPENING INVENTORY IS UNDERSTATED by $7 million which means that the COST OF GOODS SOLD will as well be UNDERSTATED by the same amount based on the fact that opening inventory adds to Cost of goods sold.
The material cost per equivalent unit using the weighted average costing method is calculated as a.total material costs to account for divided by equivalent units for materials. b.total material costs to account for divided by number of partially completed units for materials
Answer:
total material costs to account for/equivalent units for materials
Explanation:
The formula to calculate the material cost per equivalent unit is given below:
= Total material cost ÷ material equivalent units
It means that if we divide the total material cost by the material equivalent unit so we can ge the material cost per equivalent unit
Hence, the above should be the answer
A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your simple annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond
Answer:
the present value is $1,115.57
Explanation:
the computation of the present value is shown below:
Given that
Future value be $1,000
RATE is 12% ÷ 4 = 3%
NPER is 10 × 4 = 40
PMT is $35
The formula is shown below:
=-PV(RATE,NPER,PMT,FV,TYPE)
= $1,115.57
Hence, the present value is $1,115.57
Which of the following accurately describes the correlation between task interdependence and team performance?
a. It is weak and positive.
b. It is moderate and negative.
c. It is strong and negative.
d. It is moderate and positive.
e. It is weak and negative.
Answer: it is moderate and positive.
Explanation:
Task interdependence has to do with the degree to which there's an interaction and reliance on the team members which is vital in the accomplishment of the goals of the organization.
The correlation between task interdependence and the team performance is that it is moderate and positive. Therefore, the correct option is D.
The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company's chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on December 1, one month in the future. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed.
The controller has been asked by the president of the company for advice on whether to continue production during November or to suspend the manufacture of aloe vera hand lotion until December 1. The controller has assembled the following pertinent data:
Sales (400,000 units) $32,000,000
Cost of goods sold 28,330,000
Gross profit $3,670,000
Selling and administrative expenses 4,270,000
Loss from operations ($600,000)
The production costs and selling and administrative expenses, based on production of 400,000 units in October, are as follows:
Direct materials $15per unit
Direct labor 17per unit
Variable manufacturing cost 35per unit
Variable selling and administrative expenses 10 per unit
Fixed manufacturing cost $1,530,000 for October
Fixed selling and administrative expenses 270,000 for October
Sales for November are expected to drop about 20% below those of the preceding month. No significant changes are anticipated in the fixed costs or variable costs per unit. No extra costs will be incurred in discontinuing operations in the portion of the plant associated with aloe vera hand lotion. The inventory of aloe vera hand lotion at the beginning and end of November is expected to be inconsequential.
Required:
Prepare an estimated income statement in absorption costing form for November for aloe vera hand lotion, assuming that production continues during the month.
Answer:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000.
Explanation:
The following calculations are done first:
Direct materials per unit = $15
Direct labor per unit = $17
Variable manufacturing cost per unit = $35
Fixed manufacturing cost per unit = Fixed manufacturing cost for October / Number of units in October = $1,530,000 / 400,000 = $3.825
Cost of goods sold per unit = Product cost per unit = Direct materials per unit + Direct labor per unit + Variable manufacturing cost per unit + Fixed manufacturing cost per unit = $15 + $17 + $35 + $3.825 = $70.825
Also, we have:
Expected sales in unit for November = Sales in unit for October * (100% - Expected percentage drop in sales) = 400,000 * (100% - 20%) = 320,00 units
Selling price per unit = Sales in October / Units sold in October = $32,000,000 / 400,000 = $80
Variable selling and administrative expenses per unit = $10
Fixed selling and administrative expenses for October = $270,000
Based on the above calculations, an estimated income statement in absorption costing form for November for aloe vera hand lotion can be prepared as follows:
Smooth Skin Care Products Inc.
Estimated Income Statement for Aloe Vera Hand Lotion
(Absorption Costing)
For November
Particulars $
Sales Revenue ($80 * 320,000) 25,600,000
Cost of good sold ($70.825 * 320,000) (22,664,000)
Gross profit 2,936,000
Selling and administrative expenses:
Variable ($10 * 320,000) (3,200,000)
Fixed (270,000)
Loss from operations (534,000)
Therefore, we have:
Estimated loss from operations for aloe vera hand lotion in November = -$534,000
If the demand for a product was 16, 28, 20 and 24 units in four consecutive months, and the corresponding forecasts in those four months were 20, 16, 20 and 30 units respectively, what is the MAD at the end of four months
Answer:
5.5 units
Explanation:
Period Actual Forecast Absolute deviation
1 16 20 4
2 28 16 12
3 20 20 0
4 24 30 6
Total 22
Mean absolute deviation(MAD) = Sum of absolute deviation / Number of periods
Mean absolute deviation(MAD) = 22 / 4
Mean absolute deviation(MAD) = 5.5 units
Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Craig uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2014.2. Not included in the physical count of inventory is $13,420 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived and was recorded on December 31.3. Included in inventory is merchandise sold to Champy on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Champy received it on January 3.4. Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. The invoice, which has not yet arrived, has not been recorded.5. Not included in inventory is $8,540 of merchandise purchased from Glowser Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.6. Included in inventory was $10,438 of inventory held by Craig on consignment from Jackel Industries.7. Included in inventory is merchandise sold to Kemp f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale for $18,900 on December 31. The cost of this merchandise was $10,520, and Kemp received the merchandise on January 5.8. Excluded from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.Craig Company asks you to review its December 31, 1. Determine the proper inventory balance for Craig Company at December 31, 2014.Inventory balance as on December 31, 2014 2. Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed.
Answer:
1. $237,392
2. Dr Sales Revenue $12,800
Cr Accounts Receivable $12,800
Dr Purchases (Inventory) $15,630
Cr Accounts Payable $15,630
Dr Sales Returns and Allowances $2,600
Cr Accounts Receivable $2,600
Explanation:
1. Calculation to determine the proper inventory balance for Craig Company at December 31, 2014.
December 31, 2014 Inventory balance=$234,890+$13,420+$8,540-$10,438-$10,520+$1,500
December 31, 2014 Inventory balance=$237,392
Therefore Inventory balance as on December 31, 2014 is $237,392
2. Preparation of any correcting entries to adjust inventory to its proper amount at December 31, 2014.
Dr Sales Revenue $12,800
Cr Accounts Receivable $12,800
Dr Purchases (Inventory) $15,630
Cr Accounts Payable $15,630
Dr Sales Returns and Allowances $2,600
Cr Accounts Receivable $2,600
A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per unit, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is
Answer:
Total unitary product cost= $35
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary overhead= (120,000 + 70,000) / 10,000) $19
Now, the total product cost:
Total unitary product cost= 10 + 6 + 19
Total unitary product cost= $35
