Answer:
Pone Hill Company
The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is: _________
d. 25%
Explanation:
a) Data and Calculations:
Costs Square Feet Number of Employees
Janitorial Department $450,000 100 20
Cafeteria Department 200,000 10,000 10
Cutting Department 1,500,000 2,000 60
Assembly Department 3,000,000 8,000 20
Janitorial departments costs = square footage service
Cafeteria department costs = number of employees
Cost Allocation:
Janitorial Cafeteria Cutting Assembly Total
Direct costs $450,000 $200,000 $1,500,000 $3,000,000 $5,150,000
Janitorial (450,000) 225,000 45,000 180,000 0
Cafeteria (425,000) 318,750 106,250 0
Total allocated costs $1,863,750 $3,286,250 $5,150,000
Allocation of costs:
Janitorial:
Cafeteria = $225,000 ($450,000 * 10,000/20,000)
Cutting = $45,000 ($450,000 * 2,000/20,000)
Assembly = $180,000 ($450,000 * 8,000/20,000)
Cafeteria:
Cutting = $318,750 ($425,000 * 60/80)
Assembly = $106,250 ($425,000 * 20/80)
Percentage usage of the Cafeteria Department by the Assembly = 25% ($106,250/$318,750 * 100)
A strategy that attempts to reduce the overall risk of an entire investment portfolio by investing in a variety of assets is called
Answer:
Portfolio diversification
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
to diversify assets in the portfolio should have zero correlation
g In the global stage of a firm's globalization, ________. A. the need for training is high B. training is focused on local culture and interpersonal skills C. the need for training is virtually nonexistent D. host-country nationals are trained to understand parent-country products and policies
Answer:
D
Explanation:
The global stage represents the understanding of the products and policies mainly to evaluate the best possible alternative for manufacturing in the home or host country. It emphasizes evaluating the most beneficial strategy to produce goods, whether domestic or global produced.
Dallas Products is a division of a major corporation. The following data are for the most recent year of operations: Sales $ 37,880,000 Net operating income $ 3,508,960 Average operating assets $ 9,400,000 The company's minimum required rate of return 14 % The division's margin used to compute ROI is closest to:
Answer:
See below
Explanation:
Given the above information, margin is computed as;
Margin = Net operating income / Sales
Sales = $37,880,000
Net operating income = $3,508,960
Then,
Margin = $3,508,960 / $37,880,000
Margin = 9.26%
Therefore, the division's margin used to compute ROI is closest to 9.26% approximately
1. A certain family has a car loan of $24,623 with a local bank. Because of this loan balance the family would classified as a: demander of loanable funds deficit savings unit deficit budget unit all of the above none of the above
Answer: None of the above
Explanation:
The deficit spending unit is used in describing a scenario when an economy, the household or firm, has spent more than it earned for a particular period of time.
Since the family has a car loan of $24,623 with a local bank, thus means that they spent more than they earned and therefore took loans and are a deficit spending unit.
Since the option isn't given, the correct option is None of the above.
CompuTop Company sells toy laptop computers for $30 each. If the variable cost for each laptop is $20 and fixed costs total $25,000, how much sales in dollars must it sell to generate a target income of $66,667
Answer:
the sales in dollars sell to generate the target income is $183,334
Explanation:
The computation of the sales in dollars sell to generate the target income is shown below:
= (Fixed cost + target income) ÷ (selling price - variable cost) ÷ selling price
= ($25,000 + $66,667) ÷ ($30 - $20) ÷ $20
= $91,667 ÷ 50%
= $183,334
Hence, the sales in dollars sell to generate the target income is $183,334
hamilton construction company uses the percentage of completion method of accounting. in 2020. hamilton began work under
Question Completion:
Hamilton construction company uses the percentage of completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 202O 2021 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 2020?
Answer options: 2,195,000 878,000 1,097,500 427,000 343,000
Answer:
Hamilton Construction Company
The portion of the total contract price would be recognized as revenue in 2020 is:
= $878,000.
Explanation:
a) Data and Calculations:
Contract price = $2,195,000.
2020 2021
Costs incurred during the year $637,600 $1,000,000
Total estimated cost 1,594,000 1,637,600
Billings during the year 427,000 2,195,000
Collections during the year 343,000 1,509,000
Percentage of completion= Cost incurred in 2020/Total estimated cost in 2020 * 100
= $637,600/$1,594,000 * 100
= 40%
Revenue to be recognized in 2020 = 40% * Contract Price
= $878,000 ($2,195,000 * 40%)
A farmer sells a bushel of corn to the supermarket for $12. The supermarket then sells the corn to customers for $25. What is the total contribution to GDP?
Answer:
$ 25
Explanation:
As per the description, the exact amount that is being contributed from the corn bushel to the Gross Domestic Product would be $ 25. The price at which the farmer sold it to the supermarket would not be included in the GDP because it would be considered as an intermediary good because the good purchased for the resale purpose is not included in GDP as it leads to double-counting. Thus, only the price of the final good i.e. $ 25 would be included in GDP as it will now be used for final consumption by the customers.
The following data relates to Black-Out Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 300,000 $ 400,000 Direct labor hours 60,000 DLH 80,000 DLH Machine hours 1,000 MH 2,000 MH What is the company's plantwide overhead rate if machine hours are the allocation base
Answer:
Predetermined manufacturing overhead rate= $233.33 per machine hour
Explanation:
Giving the following information:
Total estimated overhead= 300,000 + 400,000= $700,000
Machine hours= 1,000 + 2,000= 3,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 700,000 / 3,000
Predetermined manufacturing overhead rate= $233.33 per machine hour
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
John F. Kennedy, Jr. crashed his airplane as a result of being disoriented while flying in marginal weather conditions at night. In order to reduce the risk of an accident during these conditions, a pilot should
Answer: b. Rely more on flight instruments than normal
Explanation:
Due to the weather conditions, John Kennedy Jr. became disoriented and in the process did not know which way to best fly to plane towards which means that he lost direction and that was why he crashed.
In such a situation, it is advised that a pilot should rely more on their navigation equipment instead of the horizon or other navigation patterns that could have been affected by the weather. The flight equipment on board would be less affected and so would be safer to use.
A bond that pays interest semiannually has a price of $941.35 and a semiannual coupon payment of $26.00. If the par value is $1,000, what is the current yield
Answer:
5.52%
Explanation:
Calculation to determine the current yield
Current yield = ($26.00 × 2)/$941.35
Current yield=$52/$941.35
Current yield= .0552*100
Current yield= 5.52%
Therefore the Current yield is 5.52%
Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:
Bouquet Production Delivery Other
Wages and salaries 60% 30% 10%
Other overhead 50% 35% 15%
Riverside anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:
a. $12.50.
b. $7.15.
c. some other amount.
d. $8.75.
e. $13.75.
Answer:
b. $7.15
Explanation:
Cost of wages & salaries per bouquet = [($180,000*60%) + ($70,000*50%)] / 20,000
Cost of wages & salaries per bouquet = ($108,000 + $35,000) / 20,000
Cost of wages & salaries per bouquet = $143,000 / 20,000
Cost of wages & salaries per bouquet = $7.15
So, the cost of wages and salaries and other overhead that would be charged to each bouquet made will be $7.15.
The current ratio of a firm with current assets of $300,000, current liabilities of $100,000, and inventory of $100,000 is:
Answer: 3.0
Explanation:
The current ratio of a firm allows us to tell whether the company is able to pay off its current obligations using its current assets.
Current ratio is calculated by:
= Current assets / Current liabilities
= 300,000 / 100,000
= 3.0
Inventory is already included in current assets so there is no need to add it again.
The following information is available for Jorgensen Company: a. The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000. b. The Sales Budget for March indicates sales of $120,000. Accounts receivable is expected to be 70% of March sales.
Answer:
Accounts receivable is
Explanation:
Expected accounts receivable is 70% of sales amount. The sales budget is $120,000 then accounts receivable will be $84,000. The rest of sales will be in cash, so the cash collection for the month of march will be $36,000. The new cash balance will be $36,000 + $48,000 = 84,000.
You have been asked to create a synthetic short position in a forward contract that permits you to sell 10 units of the underlying one year from now at a price of $50 per unit. (1) Describe the positions you need to take in call and put options to achieve the synthetic short forward position. (2) If the underlying is selling for $48 today (i.e. So = 48), what is the cost of your synthetic short position?
Solution :
[tex]\text{Short forward = buy a put + short a call on the same stock}[/tex] with the same exercise price.
X = exercise price = 50
1). Position to be taken :
-- buy 10 numbers of Put options with strike price of $ 50 per unit.
--- short (sell) 10 numbers of Call option with strike price of $ 50 per unit.
2). Cost of synthetic short position = [tex]$10 \times (P-C)$[/tex],
where, P = price of 1 put ption
C = price of 1 call option
The Call - Put parity equation :
[tex]$\frac{C+X}{(1+r)^t}=S_0+P$[/tex]
Here, C = Call premium
X = strike price of call and Put
r = annual rate of interest
t = time in years
[tex]$S_0$[/tex] = initial price of underlying
P = Put premium
Therefore,
[tex]$P-C=PV(X)-S_0=\frac{X}{(1+r)^t}-S_0$[/tex]
Here, t = 1, [tex]S_0[/tex] = 48, X = 50
So the cost of the position is given as : [tex]$\frac{50}{(1+r)} -48$[/tex]
During June, Cisco Company produced 12,000 chainsaw blades. The standard quantity of material allowed per unit was 1.5 pounds of steel per blade at a standard cost of $8 per pound. The actual cost was $7 per pound. The actual pounds of steel that Cisco purchased were 19,500 pounds. All materials purchased were used. Calculate Cisco's materials usage variance.
Answer:
Direct material quantity variance= $12,000 unfavorable
Explanation:
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1.5*12,000 - 19,500)*8
Direct material quantity variance= (18,000 - 19,500)*8
Direct material quantity variance= $12,000 unfavorable
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $9.50; direct labor, $13.50, variable overhead $2.50 and fixed overhead, $7.50. An outside supplier has offered to sell the product to Paxton for $33.00. Compute the net incremental cost or savings of buying the component.
Answer:
$7.50 per unit
Explanation:
Cost of buying from outside supplier = $33 per unit.
Relevant cost of making such component in-house = Direct materials+ Direct labor+ Variable overhead
= $9.50 per unit + $13.50 per unit + $2.50 per unit
= $25.50 per unit
Net incremental cost of buying the component = Cost of buying from outside supplier- Relevant cost of making such component in-house
= $33.00 per unit - $25.50 per unit
= $7.50 per unit
Selected account balances before adjustment for Atlantic Coast Realty at July 31, the end of the current year, are as follows: Debits CreditsAccounts Receivable $ 79,500 Equipment 342,700 Accumulated Depreciation—Equipment $102,700Prepaid Rent 9,300 Supplies 3,180 Wages Payable –Unearned Fees 14,100Fees Earned 670,200Wages Expense 329,600 Rent Expense – Depreciation Expense – Supplies Expense – Data needed for year-end adjustments are as follows:• Unbilled fees at July 31, $10,250.• Supplies on hand at July 31, $930.• Rent expired, $5,800.• Depreciation of equipment during year, $8,750.• Unearned fees at July 31, $2,100.• Wages accrued but not paid at July 31, $4,900. Required:1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles.2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?4. What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?Chart of AccountsCHART OF ACCOUNTSAlantic Coast RealtyGeneral Ledger ASSETS11 Cash12 Accounts Receivable13 Supplies14 Prepaid Rent15 Land16 Equipment17 Accumulated Depreciation-Equipment LIABILITIES21 Accounts Payable22 Unearned Fees23 Wages Payable24 Taxes Payable EQUITY31 Owner’s Equity32 Withdrawals REVENUE41 Fees Earned42 Rent Revenue EXPENSES51 Advertising Expense52 Insurance Expense53 Rent Expense54 Wages Expense55 Supplies Expense56 Utilities Expense57 Depreciation Expense59 Miscellaneous ExpenseJournal1. Journalize the six adjusting entries required at July 31, based on the data presented. Refer to the Chart of Accounts for exact wording of account titles.PAGE 10JOURNALACCOUNTING EQUATIONDATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY1 Adjusting Entries2345678910111213Final Questions2. What would be the effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Over/Understated AmountFees earned Wages expense Net income 3. What would be the effect on the balance sheet if the adjustments for unbilled fees and accrued wages were omitted at the end of the year? Over/Understated AmountAccounts receivable Total assets Wages payable Total liabilities Owner’s equity Total liabilities and owner’s equity 4. What would be the effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year?
Answer:
Atlantic Coast Realty
1. Adjusting Journal Entries:
Debit 12 Accounts Receivable $10,250
Credit 41 Fees Earned $10,250
To record the unbilled fees at July 31.
Debit 55 Supplies Expense $2,250
Credit 13 Supplies $2,250
To record supplies used during the period.
Debit 53 Rent Expense $5,800
Credit 14 Prepaid Rent $5,800
To record expired rent.
Debit 57 Depreciation Expense $8,750
Credit 17 Accumulated Depreciation-Equipment $8,750
To record depreciation expense for the year.
Debit 41 Fees Earned $2,100
Credit 22 Unearned Fees $2,100
To record unearned fees.
Debit 54 Wages Expense $4,900
Credit 23 Wages Payable $4,900
To record accrued wages.
2. The effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year:
Income will be understated by $10,250.
Income will be overstated by $4,900.
3. The effect on the income statement if the adjustments for unbilled fees and accrued wages were omitted at the end of the year:
Income will be understated by $10,250.
Income will be overstated by $4,900.
4. The effect on the "Net increase or decrease in cash" on the statement of cash flows if the adjustments for unbilled fees and accrued wages were omitted at the end of the year:
a. Net increase in cash will be less by $4,900 (if the indirect method is used).
b. Net decrease in cash will be more by $10,250 (if the indirect method is used).
Explanation:
a) Data and Calculations:
Unadjusted account balances at July 31:
Debits Credits
Accounts Receivable $ 79,500
Prepaid Rent 9,300
Supplies 3,180
Equipment 342,700
Accumulated Depreciation—Equipment $102,700
Wages Payable –Unearned Fees 14,100
Fees Earned 670,200
Wages Expense 329,600
Rent Expense –
Depreciation Expense –
Supplies Expense –
Analysis of Adjustments:
12 Accounts Receivable $10,250 41 Fees Earned $10,250
55 Supplies Expense $930 13 Supplies $2,250
53 Rent Expense $5,800 14 Prepaid Rent $5,800
57 Depreciation Expense $8,750 17 Accumulated Depreciation-Equipment $8,750
41 Fees Earned $2,100 22 Unearned Fees $2,100
54 Wages Expense $4,900 23 Wages Payable $4,900
CHART OF ACCOUNTS
Atlantic Coast Realty
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Rent
15 Land
16 Equipment
17 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Unearned Fees
23 Wages Payable
24 Taxes Payable
EQUITY
31 Owner’s Equity
32 Withdrawals
REVENUE
41 Fees Earned
42 Rent Revenue
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Rent Expense
54 Wages Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
The cost of preferred stock
Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.
Characteristics Debt Equity
Dividends are fixed
Usually has no specified maturity date
Consider the case of Tamin Enterprises:
At the present time, Tamin Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $11 per share. If the investors pay $97.95 per share for their investment, then Tamin's cost of preferred stock (rounded to four decimal places) will be:_____.
Answer:
Dividends are fixed ⇒ Debt
Preferred dividends are fixed much like the interest payments made on debt which makes this a characteristic of debt.
Usually have no specified maturity date ⇒ Equity
Equity does not have an expiration or maturity date and preferred shares share this same characteristic.
Cost of preferred stock.
The value of a Preferred stock is calculated by the formula:
Price = Dividend / Cost of preferred stock
97.95 = 11 / Cp
97.95 * Cp = 11
Cp = 11/ 97.95
= 11.23%
Duerr company makes a $67,000, 90-day, 10% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
Answer:
the maturity value of the loan is $68,675
Explanation:
The maturity value of the loan is shown below:
= Loan amount + interest charged
= $67,000 + ($67,000 × 10% × 90 days ÷ 360 days)
= $67,000 + $1,675
= $68,675
hence, the maturity value of the loan is $68,675
You would like to use the periodic review model to compute the desired order quantity for a company. You know that vendor lead time is 5 days and the number of days between reviews is 20. Which of the following is the standard deviation of demand over the review period and lead time (sT L) if the standard deviation of daily demand is 8?
a. 40
b. 200
c. 8
d. 25
e. 100
Answer:
a. 40
Explanation:
The computation of the standard deviation of the demand is shown below:
= 8 × √(5+20)
= 8 × √25
= 8 × 5
= 40
Hence, the standard deviation of the demand is 40
Therefore the first option is correct and the same is to be considered
The table below pertains to a small agricultural economy where the typical consumer's basket
consists of 10 pounds of apples and 20 pounds of oranges. If 2017 is the base year, then the CPI
for 2018 was?
Year
Price of Apples
Price of Oranges
2017
$2.0 per pound (Apples)
$2.00 per pound (Oranges)
2018
$1.5 per pound (Apples)
$3.00 per pound (Oranges)
A) 125.0
B) 100.0
C) 95.0
D) 110.0
Answer:
125
Explanation:
Given the table:
Year
Price of Apples
Price of Oranges
2017
$2.0 per pound (Apples)
$2.00 per pound (Oranges)
2018
$1.5 per pound (Apples)
$3.00 per pound (Oranges
Consumer price index is obtained using the formular :
CPI = (Cost of market basket In current period / Cost of market basket in base period) * 100
Current period (2018):
Cost of 10 pounds of apple and 20 pounds of oranges :
($1.5 * 10) + ($3 * 20) = $15 + $60 = $75
Base year (2017)
Cost of 10 pounds of apple and 20 pounds of oranges :
($2 * 10) + ($2 * 20) = $20 + $40 = $60
Hence,
CPI = ($75 / $60) * 100
CPI = 1.25 * 100
CPI = 125
Cost of occupancy, general management and salesforce management are considered ______________.
a) full costs
b) indirect costs
c) contribution accounting
d) All of the above
e) None of the above
Answer:
B) indirect costs
Explanation:
Indirect costs can be regarded as costs incurred whereby this cost are not directly assigned to a cost object specifically. Indirect costs can comes as a fixed cost, it can also come as variable cost. Some of Indirect costs are; personnel as well as
administration and security costs. They are costs that are not regarded as been directly related to production.
It should be noted that Cost of occupancy, general management and salesforce management are considered indirect costs.
ABC Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales $18,080,000
Net operating income $940,160
Average operating assets $4,810,000
The division's return on investment (ROI) is closest to:____.
a. 5.60%.b. 20.56%.c. 16.71%.d. 2.60%.
Answer:
the return on investment is 19.55%
Explanation:
The computation of the return on investment is shown below:
Return on investment is
= (Net operating income ÷ Average operating assets) × 100
= ($940,160 ÷ 4,810,000) × 100
= 19.55%
Hence, the return on investment is 19.55%
In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly process. The chips, manufactured in batches sizes are
Answer:
defective
Explanation:
In an electronic firm it is necessary to keep check for every circuit as they turn out to be defective. There can be minor error is circuit formation but this will be considered as defective because circuits are very sensitive and even minor error can lead to short circuits which could lead to a disaster. It is necessary for a firm to keep track and quality of every circuit should be checked.
McoLawn Ltd manufactures a single product, an ecologically designed electronic lawn-mower, which they sell for £40. The variable costs of the lawn-mower are as follows: Fixed costs are £140,000. McoLawn Ltd. have budgeted profits for the coming year at £120,000. How many lawn-mowers must McoLawn Ltd. sell in order to reach budgeted profit levels? Group of answer choices
Answer: 20,000 lawn mowers
Explanation:
The formula for calculating the number of lawn mowers needed to reached the budgeted profit levels is:
= (Fixed costs + Budgeted profit) / Contribution margin
Contribution margin = Selling price - Variable cost
= 40 - (14 + 8 + 5)
= 40 - 27
= $13
Number of lawn-mowers required:
= (140,000 + 120,000) / 13
= 20,000 lawn mowers
ng 40\%; \$4.400 A company is considering the purchase of a new machine for $ 63,000 . Management predicts that the machine can produce sales of $ 17,500 each year for the next 10 years . Expenses are expected to include direct materials , direct labor , and factory overhead totaling 6,500 per year including depreciation of per year . Income tax expense is per year based on a tax rate of What the payback period for the new machine
Answer:
3 years and 8 months
Explanation:
The payback period is the length of time that it takes for the cashflow of a project to equal the initial investment of the project.
Initial investment = $ 63,000
Cash flow :
Sales $ 17,500
Less Expenses ($6,500)
Add Depreciation ($ 63,000 ÷ 10) $6,300
Annual Cash flow $17,300
thus,
It takes 3 years and 8 months ($11,100/$17,300 x 12) for the cashflow of a project to equal the initial investment for the new machine.
An analysis of the income statement revealed that interest expense was $100000. Waterway Company's times interest earned was
Answer: 8.3
Explanation:
The times interest earned is used to estimate the ability of a company to pay its debt payments using income from operations.
It is calculated by the formula:
= Earnings before interest and tax / Interest expense
Earnings before interest and tax:
= Earnings before tax + Interest expense
= 730,000 + 100,000
= $830,000
Times interest earned:
= 830,000 / 100,000
= 8.3
The inventory records of Global Company indicate that $76,800 of merchandise should be on hand at the end of the month. The physical inventory indicates that $74,900 is actually on hand. The journal entry to adjust for inventory shrinkage will include
Answer:
Debit : Inventory $1,900
Credit : Adjustment to inventory account $1,900
Explanation:
The journal entry to adjust for inventory shrinkage will include a Debit entry to Inventory Account (to raise the balance) and a Credit entry to a Contra account Adjustment to inventory account with the difference between the two balances.
1 points Time Remaining 41 minutes 43 seconds00:41:43 Item 13 Time Remaining 41 minutes 43 seconds00:41:43 Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 80,000 units, 60% complete as to materials and 20% complete as to conversion. Units started and completed: 250,000. Units completed and transferred out: 330,000. Ending Inventory: 30,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials.
Answer:
1000$
Explanation:
no why sorry lol i just count in my brain lol
