Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics Company had 4,500 ounces in beginning work in process inventory (90% complete). During the period, 74,900 ounces were completed. The ending work in process inventory was 3,700 ounces (40% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process? fill in the blank 1 units
Answer: 74,100 units
Explanation:
If the materials are added at the beginning of the process then the opening work in process inventory would need to be deducted from the completed inventory for the period. Also there would be no need to multiply the units by their completion level because they are assumed to be at 100% completion because materials were added at the very beginning.
Total equivalent units for direct materials is:
= (Completed units - Opening inventory) + Closing work in process
= (74,900 - 4,500) + 3,700
= 74,100 units
Fox Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show:
Answer:
See below
Explanation:
Given the information above, we will calculate the predetermined overhead rate first.
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor
= $18,000 / 15,000
= $1.2
Then,
Manufacturing overhead = Predetermined overhead rate × Actual direct labor hours
= $1.2 × 16,000
= $19,200
Then,
Cost records for the period = Manufacturing overhead - Actual manufacturing overhead
= $19,200 - $19,500
= $300 over applied
You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now. What is the future value of these cash flows seven years from now if the interest rate is 7.4 percent, compounded annually
Answer:
Total FV= $27,805.2
Explanation:
Giving the following information:
You expect to receive $5,400 two years from now, $6,300 three years from now, and $10,900 six years from now.
Interest rate= 7.4%
To calculate the Future Value, we need to use the following formula:
FV= Cf*(1 + i)^n
Cf1= 5,400*(1.074^5)= 7,716.41
Cf2= 6,300*(1.074^4)= 8,382.19
Cf3= 10,900*1.074= 11,706.6
Total FV= $27,805.2
The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the tax? Under what conditions will producers pay most of it? A. It depends on who is legally obligated to pay the tax. Typically producers are required to pay the tax and therefore bear most of the burden. B. If demand is relatively more elastic than supply, producers will pay more of the tax. C. It depends on who is legally obligated to pay the tax. Typically consumers are required to pay the tax and therefore bear most of the burden. D. If demand is relatively less elastic than supply, producers will pay more of the tax.
Answer:
B
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Price elasticity of demand = midpoint change in quantity demanded / midpoint change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
If demand is more elastic than supply, if price is increased as a result of tax, demand would fall more than supply. As a result, producers would bear more tax burden
"ng liquidity) Aylward Inc. currently has $ in current assets and $ in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling belo"
Answer: $209,500
Explanation:
Current ratio = Current assets / Current liabilities
They plan to increase current assets by increasing inventory. They plan to do this by using a short term note which is a current liability. Both the numerator and the denominator will therefore increase.
Assume the maximum inventory increase to be:
2.20 = (2,161,000 + x) / (868,000 + x)
2.20 * 868,000 + x = 2,161,000 + x
1,909,600 + 2.20x = 2,161,000
2.20x - x = 2,161,000 - 1,909,600
1.20x = 251,400
x = 251,400 / 1.2
x = $209,500
You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta
Answer:
The Portfolio beta is 1.1045
Explanation:
The computation of the portfolio beta is given below:
Stock Beta Investment (Weight) Weighted Beta
Stock Q 0.8 0.3 0.2400
Stock R 1.18 0.25 0.2950
Stock S 1.19 0.25 0.2975
Stock T 1.36 0.2 0.2720
Portfolio beta 1.1045
Blume Corporation leases equipment for a ten-month period. The entire related lease payment is due at the end of the ten-month period. The journal entry to recognize the monthly accrual related to the lease will include a debit to:
Answer: d. short-term lease expense.
Explanation:
The debit has to go to an expense account to recognize that a lease expense is being incurred. The relevant account would be a short-term lease expense account because the lease is a short term lease as it is to last for less than a year.
The credit will go to an accrued lease account to recognize that it is a current liability because liabilities are credited when they increase.
acc 450 An engagement in which a CPA firm arranges for a critical review of its practices by another CPA firm is referred to as a(n):
Answer:
peer review engagement
Explanation:
A peer review refers to the external review done on the periodic basis that represent the quality control system of the firm in accounting & auditing
Also it is an engagement where the CPA firm arranged the critical review by other CPA
So it is a peer review engagement
Hence, the same should be considered
A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price for this bond is recorded as a:________
A. Credit to Interest Income
B. Credit to Premium on Bonds Payable.
C. Credit to Discount on Bonds Payable.
D. Debit to Premium on Bonds Payable
E. Debit to Discount on Bonds Payable
Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $258 two years ago and has an expected life of six years. A comparable microwave costs $366 today. What amount will the insurance company pay
Answer: $366
Explanation:
Replacement Cost Coverage refers to the valuation methods for the establishment of the value of an insured property which is used in knowing the amount that an insurer will
have to pay in case there is a loss and in such case, the insurance company will have to pay the costs at the present price to replace the damaged product.
Since the comparable microwave costs $366 today, therefore the insurance company will pay $366.
When Job 117 was completed, direct materials totaled $13,116; direct labor, $22,560; and factory overhead, $16,788. A total of 2,186 units were produced at a per-unit cost of a.$35,676 b.$24 c.$52,464 d.$2,186
Answer:
Unitary cost= $24
Explanation:
Giving the following information:
Total direct material= $13,116
Direct labor= $22,560
Factory overhead= $16,788
Number of units= 2,186
First, we need to calculate the total cost:
Total cost= 13,116 + 22,560 + 16,788
Total cost= $52,464
Now, the unitary cost:
Unitary cost= total cost / number of units
Unitary cost= 52,464 / 2,186
Unitary cost= $24
22.On January 1, 2021, Amazon purchased a $64,000 office equipment and expected its useful economic life of 5 years. At the end of year 5th, the company expected to sell the equipment for $4,000. It is now December 31, 2021. Which of the following entries are needed to be made before preparing financial statements?
a. Debit Office equipment $64,000; Credit Cash $64,000
b. Debit Depreciation expense - Office equipment $64,000; Credit Cash $64,000
c. Debit Depreciation expense - Office equipment $12,000; Credit Accumulated depreciation – Office equipment $12,000
d. Debit Accumulated depreciation – Office equipment $12,000; Credit Depreciation expense - Office equipment $12,000
Answer:
C.
Explanation:
64000-4000 (salvage value)=60000
60000/5=12000 (annual depreciation)
depreciation expense. 12000
Accumulated depreciation. 12000
Supply-side economists believe that a reduction in the tax rate a. always decrease government tax revenue. b. would decrease consumption. c. provides no incentive for people to work more. d. shifts the aggregate supply curve to the right.
Answer: D. shifts the aggregate supply curve to the right.
Explanation:
Supply side economics refers to the macroeconomic theory which states that the economic growth in an economy can be improved by the reduction in taxes and decrease in regulations.
Such Economists believe that this is vital as the consumers will benefit as there'll be an increase in the supply of goods from the manufacturers. Also, there'll be reduction in prices due to less taxes being paid. Also, there'll be an increase in employment.
Perteet Corporation's relevant range of activity is 6,600 units to 13,000 units. When it produces and sells 9,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.30 Direct labor $ 3.70 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.10 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 0.50 Variable administrative expense $ 0.55 If 7,300 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
Total overhead cost= $43,520
Explanation:
Giving the following information:
Variable manufacturing overhead $ 1.80
Fixed manufacturing overhead $ 3.10
First, we need to calculate the total fixed overhead:
Total fixed overhead= 3.1*9,800 = $30,380
Now, the total overhead cost for 7,300 units:
Total variable overhead= 7,300*1.8= 13,140
Total fixed overhead= 30,380
Total overhead cost= $43,520
Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.65, what is the current share price
Answer:
$87.03
Explanation:
Calculation to determine the current share price
First step is to calculate p1
p1= $2.65(1+.30)^3(1+.04) / (.10 - .04)
p1= $2.65(1.30)^3(1.04) / (.10 - .04)
p1=6.054932/.06
p1=100.92
Now let calculate the Current price
p0= [$2.65(1.30) / 1.10] +[$2.65(1.30)^2 / 1.10^2] + [$2.65(1.30)^3 / 1.10^3] + [$100.92/ 1.10^3]
p0=3.1318+4.4782/1.21+5.82205/1.331+$100.92/1.331+
p0=3.1318+3.700992+4.37419+75.82
p0=$87.03
Therefore the current share price is $87.03
The process of gathering and evaluating information to determine whose interests should be emphasized throughout the project is called
Answer:
whose interests shoud be emphasized throughout the project
Explanation:
Discuss the six HRM practices from which companies can choose for implementing their strategy. Illustrate by specific examples.
Answer:
Explanation:
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Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. The estimated value of the land after the ore is removed is $200,000.1. Prepare the entry(ies) to record the cost of the ore mine.2. Prepare the year-end adjusting entry if 180,000 tons of ore are mined and sold the first year.3. Calculate the depletion expense from the information given.
Answer:
1. Date Account titles and explanation Debit Credit
Ore mine $1,400,000
Cash $1,400,000
(To record ore mine cost)
2. Date Account titles and explanation Debit Credit
Depletion expenses $288,000
Accumulated depletion $288,000
(To record depletion expenses)
3. Particulars Amount
Cost $1,800,000 ($1,400,000+$400,000)
Salvage $200,000
Amount subject to depletion $1,600,000 ($1,800,000 - $200,000)
Total units of capacity 1,000,000
Depletion per unit $1.6 ($1,600,000/1,000,000)
Units extracted & sold in period 180,000
Depletion expense $288,000 (180,000*$1.6)
When the management team reviewed its government contract on office chairs, they noticed that in order to bid on the project, at least 37 percent of the value of the office chairs had to be produced in the United States. This stipulation is an example of a(n)
Answer:
local content requirement.
Explanation:
In the case when the management team is reviewed the government contract so they notice that minimum 37% of the office chairs value should be generated so this stipulation represent the local content requirement as under this clause, the firm is needed to source the goods portion from the local producers
Therefore the above term should be the answer
Correctly complete the following statement. We may be more likely to consider using qualitative forecasting techniques when Select one: a. a lot of historical (quantitative) demand data exists. b. we are faced with a short-term, operational decision-making problem. c. the relevant environment is likely to be quite stable (less variable) over the forecast horizon. d. the forecast horizon is long (e.g., more than three to five years).
Answer:
b
Explanation:
There are two types of forecasting method
1. Qualitative forecasting
2. Quantitative forecasting
Qualitative forecasting can be described as when subjective judgement or non quantifiable information in forecasting.
When is qualitative forecasting suitable ?
It is used when historical data in unavailable. this method is suitable when it is predicted that future result would depart from what historical data may suggestAdvantages of Qualitative forecasting
it is flexible It can be used when data available is ambiguous or unclearDisadvantage of Qualitative forecasting
It is subjective.
Quantitative forecasting can be described as forecasting using historical data
The University Store, Incorporated is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: University Store, Incorporated Income Statement For the Quarter Ended March 31 Sales $ 800,000 Cost of goods sold 560,000 Gross margin 240,000 Selling and administrative expenses: Selling $ 100,000 Administrative 110,000 210,000 Net operating income $ 30,000 On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.The contribution margin for the University Store for the first quarter is: A) $660,000 B) $700,000 C) $180,000 D) $140,000
Answer:
The University Store
The contribution margin for the University Store for the first quarter is:
= D) $140,000
Explanation:
a) Data and Calculations:
University Store,
Incorporated Income Statement
For the Quarter Ended March 31
Sales $ 800,000
Cost of goods sold 560,000
Gross margin 240,000
Selling and administrative expenses:
Selling $ 100,000
Administrative 110,000 210,000
Net operating income $ 30,000
Selling price per book = $40.00
Variable selling expenses per book = $3.00
Variable administrative expenses = 5% of sales
Sales Revenue $800,000
Cost of goods sold 560,000
Selling expense 60,000
Admin. expense 40,000
Total variable costs 660,000
Contribution margin 140,000
Shareholders may prefer the compensation package that includes stock options because the options give the CEO the incentive to maximize the price of the company's stock, thus benefiting the shareholders. A fixed salary, regardless of stock price performance, can lead to a CEO who is willing to do the minimum necessary to maintain the job, but who is not motivated to work extra hard for shareholders.
a. True
b. False
Answer: True
Explanation:
There exists a problem known as the Agency Problem between managers and the shareholders of a company. The manager is the agent and the shareholders are the owners. Sometimes, it has been shown that the agent might act in their best interests as opposed to be best interests of the owners of the business.
To solve this, the manager should be made an owner as well and one way to do so is to give them stock options. This way, they will be motivated to work hard for the owners because they will benefit as well.
The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 819,000 Net income for the year 230,000 Cash dividends declared for the year 42,000 Retained earnings balance at the end of the year 1,007,000 Cash dividends payable at the beginning of the year 10,000 Cash dividends payable at the end of the year 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows
Answer: $41000
Explanation:
The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows will be calculated thus:
Beginning dividend = $10000
Add: Dividend declared = $42000
Less: Ending dividend payable = $11000
Cash dividend paid = $41000
Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 common size percentages for cost of goods sold using Net sales as the base.
2017 2016
Net sales $522,200 $423,400
Cost of goods sold 219,400 135,440
Operating expenses 79,990 $77,090
Net earnings 40,420 28,670
a. 42.0% for 2017 and 32.0% for 2016.
b. 7.7% for 2017 and 6.8% for 2016.
c. 123.3% for 2017 and 100.0% for 2016.
d. 57.3% for 2017 and 50.2% for 2016.
e. 174.4% for 2017 and 199.2% for 2016.
Answer:
a. 42.0% for 2017 and 32.0% for 2016
Explanation:
Common size % for cost of goods sold = Cost of goods sold/Net sales
For 2017
= $219,400 / $522,200
= 0.4201456
= 42%
For 2016
= $135,440 / $423,400
= 0.31988663
= 31.99%
ou own a portfolio that is 30 percent invested in Stock X, 20 percent in Stock Y, and 50 percent in Stock Z. The expected returns on these three stocks are 11 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio
Answer:
The expected return on the portfolio is:
= 13.2%
Explanation:
a) Data and Calculations:
Portfolio
Stock Percentage Expected Weighted
Holding Returns Returns
Stock X 30% 11% 3.3%
Stock Y 20% 17% 3.4%
Stock Z 50% 13% 6.5%
Total 100% 13.2%
b) The expected return on the portfolio is the addition of the weighted returns from each investment. The weighted returns are obtained by multiplying the percentage holding of each stock with its expected returns.
An organization implements an information system to optimize its supply chain. The system helps the organization decrease wastage. Hence, the system provides a competitive advantage to the organization. Here, the information system helped the organization achieve competitive advantage by
Answer:
Reducing cost
Explanation:
Competitive advantage is defined as the edge a firm has over others that results in greater profits.
It can be as a result of technology, price, cost reduction, or quality.
In the given scenario where an organization implements an information system to optimize its supply chain by decreasing wastage, it is reducing its cost as a way of gaining competitive advantage over other companies.
A good speaker in the Group discussion is the one who is always :
1. Loud
2.Loud and aggressive
3. Calm and composed
4. strong and powerful
5. confident and assertive
Answer:
5. confident and assertive
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $12.50 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $78,650 Actual output 900 units What is the labor efficiency variance for the month
Answer:
the labor efficiency variance for the month is $16,625 favorable
Explanation:
The computation of the labor efficiency variance for the month is given below:
= Standard labor rate × (actual hours - actual output × standard hours per unit)
= $12.5 × (6,500 hours - 900 units × 8.7 hours)
= $16,625 Favorable
Hence, the labor efficiency variance for the month is $16,625 favorable
The same is relevant
a) The market for automobile tires after the price of rubber increases. b) The market for a hardcover book in which the publisher overestimated demand, charging more than the equilibrium price. (Instead of a shift, indicate the quantity of the shortage or surplus of the book.) c) The market for a normal consumer good after a significant rise in average income. d) The market for infant cribs after a significant decline in the birth rate. For the following three parts, answer each question completely, directly, and succinctly. e) If the demand for a good decreases, ceteris paribus, what will happen to the equilibrium price
Answer:
Decreases.
Explanation:
If the demand for a good decreases and all other things are equal then there will be decrease in equilibrium price because there is a direct relationship between demand and equilibrium price. In direct relationship, if one increases the other automatically increases and vice versa so same is the case with demand and equilibrium price. As demand increases the equilibrium price will also increases and vice versa.
Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 560,000 units are expected to be produced requiring 0.90 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?
Estimated: Department 1 Department 2
Manufacturing overhead costs $2,530,000 $900,000
Direct labor hours 168,000 DLH 110,000 DLH
Machine hours 30,000 MH 8,000 MH
a. $12.34 per unit
b. $63.95 per unit
c. $7.32 per unit
d. $11.11 per unit
e. $15.06 per unit
Answer:
d. $11.11 per unit
Explanation:
Plant wide overhead rate = Total manufacturing cotsts / Total direct labor hours
Plant wide overhead rate = ($2,530,000 + $900,000) / (168,000+110,000)
Plant wide overhead rate = $3,430,000 / 278,000
Plant wide overhead rate = $12.34 per DLH
Overhead cost per unit = Plant wide overhead rate * Direct hours per unit
Overhead cost per unit = $12.34 * 0.90
Overhead cost per unit = $11.11 per unit
