Answer:
B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds
Explanation:
First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.
Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
a. Discretionary policy
b. An eclectic approach
c. Fixed rules
d. Fiscal policy
Answer:
C. Fixed rules.
Explanation:
This is simply a policy that is seen to be a monetary or in some cases fiscal; they are said to be automated in most of its cases and are based on the criteria that are predetermined.
In most cases, these policies are seen to be binding and also categorically constrain officials' policy choices based on certain predetermined criteria to direct them toward serving the public interest.
Many cases by policymakers made this policy to be put in place because most of them generally cannot bind their own future choices, also fixed policy rules usually have to be enforced by some kind of higher authority in order to be binding etc.
Garfield Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory $230,000 Fixed manufacturing overhead in production 850,000 Ending fixed manufacturing overhead in inventory 50,000 Beginning variable manufacturing overhead in inventory $40,000 Variable manufacturing overhead in production 140,000 Ending variable manufacturing overhead in inventory 30,000 What is the difference between operating incomes under absorption costing and variable costing?
Answer:
the difference between operating incomes under absorption costing and variable costing is $180,000 .
Explanation:
The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.
So, calculation of the difference will be as follows :
Beginning fixed manufacturing overhead in inventory $230,000
Less Ending fixed manufacturing overhead in inventory ($50,000)
Difference between absorption costing and variable costing $180,000
Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow.
Summary Income Statement Data
Sales $11,692,900
Cost of goods sold 5,135,000
Selling expenses 938,000
Administrative expenses 780,000
Interest expense 2,210,000
Income tax expense 905,000 9,968,000
Net income $1,724,900
Summary Balance Sheet Data
Cash $117,000
Total liabilities $900,000
Noncash assets 1,183,000
Stockholders' equity 400,000
Total assets $1,300,000
Total liabilities and equity $1,300,000
Round answers to two decimal places.
a. Compute the ratio of times-interest-earned.
b. Compute the debt-to-equity ratio.
Answer:
a. Compute the ratio of times-interest-earned.
times-interest-earned = EBIT / interest expense
EBIT = $4,839,900interest expense = $2,210,000times-interest-earned = $4,839,900 / $2,210,000 = 2.19
b. Compute the debt-to-equity ratio.
debt-to-equity ratio = total liabilities / total stockholders' equity
total liabilities = $900,000total stockholders' equity = $400,000debt-to-equity ratio = $900,000 / $400,000 = 2.25
Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $85,000 with a $7,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $20,210 per year. In addition, the equipment will have operating and energy costs of $4,130 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %
Answer:
17.89%
Explanation:
Calculation Determine the average rate of return on the equipment
Using this formula
Average rate of return =Avarage annual income /Average investment
Where,
Avarage annual income=Annual saving - Annual depreciation- Annual operating costs
Average investment= (Beginning costs + Residual value)÷2
Let plug in the formula
Average rate of return=$20,210 - ($85,000- $7,000)÷10 years-$4,130/($85,000+$7,000)÷2
Average rate of return=$20,210-($78,000÷10)-$4,180/($92,000)÷2
Average rate of return=$20,210-$7,800-$4,180/$46,000
Average rate of return=$8,230/$46,000
Average rate of return=0.1789*100
Average rate of return=17.89%
Therefore the average rate of return on the equipment will be 17.89%
Answer:
18%
Explanation:
This can be calculated as using the formula for calculating the average rate of return as follows:
Average rate of return = Average annual income / Average investment in equipment .................. (1)
To use equation (1), we first calculate the following:
Annual cost saving = $20,210
Annual depreciation = (Equipment cost - Residual value) / Useful number of years = ($85,000 - $7,000) / 10 = $7,800
Annual operating and energy costs = $4,130
Average annual income = Annual cost saving - Annual depreciation - Annual operating and energy costs = $20,210 - $7,800 - $4,130 = $8,280
Average investment in equipment = (Equipment cost + Residual value) / 2 = $46,000
Substituting the values for Average annual income and Average investment in equipment into equation (1), we have:
Average rate of return = $8,280 / $46,000 = 0.18, or 18%
Eric left high school to work in a factory where he has been for the last 9 years. He married at 19 and has two children. He is unhappy and cynical. He doesn't like working hard to make purchase decisions so he waits until a product is easy to find before he buys.
A. EA
B. EM
C. I
D. L
E. LM
Answer: D. L
Explanation:
Eric is a Laggard. A Laggard is one of the 5 Adopter categories when it comes to new products in the market. These categories define people in terms of when they adopt a product as well as why.
Laggards are the last group to adopt a product. They do not like change and as such will only adopt a product when it is forced on them on when they have no choice because the product is so widespread that everyone is using it. Eric prefers to make a purchase only when it is easy to find. That is when the product has become quite widespread which is during the Laggard adoption stage.
When the Federal Reserve buys long term MBS and Treasury securities from banks and announces its intention to keep buying these assets in large quantities for a long time the effect on commercial banks is to increase the value of fixed income securities that are not sold and at the same time to lower the interest spread between new loans originated and the cost of financing these loans. True False
Answer:
True
Explanation:
Since, Federal reserve purchased long term MBS in order to pay the less market interest rate and this will cause a rise in the amount of income i.e fixed securities. Also, due to less market interest rate, the financing cost is less and at the same time interest spread is narrower as it provides more liquidity
Therefore the given statement is true
Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:Steel per filing cabinet ............................................. 55 poundsDirect labor per filing cabinet ...................................... 20 minutesSupervisor salaries ................................................ $180,000 per monthDepreciation ...................................................... $28,000 per monthDirect labor rate................................................... $21 per hourSteel cost ......................................................... $0.40 per poundRequired:Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of August 2014.
Answer:
Total Flexible Budgets for 12,000, 15,000, and 18,000 units is $ 556,000 $ 643,000 and $830,000
Explanation:
Steelcase Inc.
Assembly Department:
Steel per filing cabinet ............................................. 55 pounds
Direct labor per filing cabinet ...................................... 20 minutes
Supervisor salaries ................................................ $180,000 per month
Depreciation ...................................................... $28,000 per month
Direct labor rate................................................... $21 per hour
Steel cost ......................................................... $0.40 per pound
Steelcase Inc.
Flexible budget
For the month of August 2014.
Units: 12000 15000 18000
Steel for filing cabinet 660,000 825000 990,000 pounds
Steel cost $264,000 330,000 $ 396,000
Direct labor Hrs 4,000 5,000 6,000
Direct labor Cost $84,000 $105,000 $ 126,000
Supervisor salaries $180,000 $180,000 $180,000
Depreciation $28,000 $28,000 $28,000
Total $ 556,000 $ 643,000 $830,000
First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.
Similarly we find the direct labor hours and then the direct labor cost.
We assume that the supervisor salaries and depreciation are fixed.
g Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800 and a useful life of 131750 miles. It was driven 23000 miles in 2017 and 31000 miles in 2018. What is the depreciation expense for 2018
Answer:
$24,800
Explanation:
Calculation for the depreciation expense for 2018 for Sheffield Corp.
Using this formula
Depreciation expense = (Purchased at the beginning-Salvage value/Useful life)* Driven miles
Let plug in the formula
Depreciation expense=($109,200-$3,800/131,750)*31,000
Depreciation expense=($105,400/131,750)*31,000
Depreciation expense=0.80*31,000
Depreciation expense=$24,800
Therefore the depreciation expense for 2018 will be $24,800
The government wants to set the socially optimal level of nitrogen runoff, and government regulators believe that the actual marginal benefit of pollution (MBP) is given by the estimated MBP curve. The deadweight loss associated with a quota is _____, w
Answer:
Hello your question is incomplete attached below is the complete question
Explanation:
Dead weight loss = 0.5 [( Δp ) * ( ΔD ) ]
D = DEMAND
P = PRICE
DWL with quota = 0.5 [ ( $10 -$6 ) * (12 - 8 ) ]
= 0.5 ( 4*4 ) = $8
DWL with pigouvian tax = 0.5 [ ($10- $6 )*(9 - 8 ) ]
= 0.5 [ 4 * 1 ] = $2
Question 59 of 83 Project M requires an initial investment of $25 million. The project is expected to generate $2.25 million in after-tax cash flow each year forever. Calculate the IRR for the project. 10% 9% 8% 7%
Answer:
9%
Explanation:
In order to calculate the internal rate of return (IRR) for a project that yields cash flows perpetually, we need to divide the yearly cash flow by the project's initial outlay:
IRR = $2,250,000 / $25,000,000 = 0.09 = 9%
The IRR represents the discount rate at which the project's net present value (NPV) equals 0.
rancis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1
Answer:
$3.72
Explanation:
Francis incorporation stock has a required rate of return of 10.25%
The stock is sold at $87.50 per share
The growth rate is 6% per year
Therefore, the expected dividend can be calculated as follows
= Po(rs-g)
= $87.50(10.25%-6%)
= $87.50×4.25
= $3.72
Hence the expected year end dividend is $3.72
It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________
a. understand where the boundaries of the current negotiations are and should be.
b. are clear in their own minds about the scope of the negotiations.
c. understand how they would ideally like to work with the other party.
d. determine what ground the negotiation is going to cover and how the negotiators are going to work together.
e. understand that all the above are important to the shadow negotiations.
Answer:
b. are clear in their own minds about the scope of the negotiations.
Explanation:
Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.
Assume that your parents wanted to have a 170,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 6.5% per year on their investmenets.Required:a. How much would they have to save each year to reach their goal?b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
Answer:
a. They will have to save $5,245.28 each year to reach their goal of $170,000.
b. They will have to save $925.63 less to reach their new goal of $140,000.
Note: The answer to part b is based on the information in the question. Therefore, the correct answer is "they will have to save $925.63 less" not "save more" as suggested in the question. Kindly confirm this from your teacher.
Explanation:
a. How much would they have to save each year to reach their goal?
Since the saving started on your first birthday to have $170,000 saved, it implies the saving will be on your every birthday for 18 years. Therefore, the relevant formula to use to determine this is the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV = Future value of the amount after your 18th birthday = $170,000
M = Yearly saving to have $170,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M, we have:
$170,000 = M * {[(1 + 0.065)^18 - 1] / 0.065}
$170,000 = M * 32.4100673759666
M = $170,000 / 32.4100673759666
M = $5,245.28
Therefore, they will have to save $5,245.28 each year to reach their goal of $170,000.
b. If they think you will take five years instead of four to graduate to graduate and decide to have $140,000 saved just in case, how much more would they have to save each year to reach their new goal?
First, we have to calculate how much they will save each year, by also using the Future Value (FV) for calculating an Ordinary Annuity as follows:
FVn = Mn * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV1 = New future value of the amount after your 18th birthday = $140,000
M1 = New yearly saving to have $140,000 = ?
r = interest rate = 6.5%, 0.065
n = number of years this savings will be made = 18
Substituting the values into equation (1) and solve for M1, we have:
$140,000 = M1 * {[(1 + 0.065)^18 - 1] / 0.065}
$140,000 = M1 * 32.4100673759666
M1 = $140,000 / 32.4100673759666
M1 = $4,319.65
Therefore, they will have to save $4,319.65 each year to reach their goal of $140,000.
To obtain difference in yearly savings, we have:
Difference in yealy saving = M - M1 = $5,245.28 - $4,319.65 = $925.63
Since $5,245.28 each year to reach their goal of $170,000 is greater than $4,319.65 each year to reach their goal of $140,000, it therefore implies that they will have to save $925.63 less to reach their new goal of $140,000.
Improvements in labor productivity: A. affect the level of wages, but do not affect the rate of economic growth. B. affect the level of profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic growth, because they cause unemployment.
Answer:
C. contribute to economic growth
Explanation:
Economic growth is an increase in the the production of goods and services produced in an economy.
Improvements in labor productivity increases the output of labour and as a result contributes to economic growth.
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,588. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,424.97. Her net pay for the month is: (Round your intermediate calculations to two decimal places.)
a) $7,038.50
b) $5,141.03
c) $6,072.04
d) $6,566.00
e) $6,506.04
Answer: e) $6,506.04
Explanation:
Employees do not pay FUTA or SUTA. Employers pay those.
Ms. Grant's net pay for the month therefore is;
= Gross earnings - FICA Social Security - FICA Medicare - Federal Income tax withheld
= 8,588 - (6.2% * 8,588) - ( 1.45% * 8,588) - 1,424.97
= 8,588 - 532.46 - 124.53 - 1,424.97
= $6,506.04
Interest rates can be measured more accurately and quickly than reserve aggregates; hence an interest rate is preferred to the reserve aggregates as a policy instrument.
a. True
b. False
Answer:
False
Explanation:
This is false.
In reporting reserves aggregate there are lags interest rate such as the federal interest rate are quite easy to measure and easily observable. Such short term interest rate are nominal values and they do not measure the real cost of borrowing well. It does not show accurately what happens to Gross domestic product. Real interest rate equals nominal interest rate as a ratio of reduced inflation gives a representation of true cost of borrowing.
We cannot say with certainty that interests rate is a better policy instrument based on the ground of measurability.
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 25% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $81,000 to Ski Outfit and pays shipping costs of $8,700. By the end of the year, $61,000 of the merchandise has been sold to customers for a total of $86,000. Mogul allocates $6,500 of the shipping costs to inventory sold and the other $2,200 to inventory not sold. Mogul also paid advertising costs during the year of $10,500. What amount of inventory will Mogul report at year end
Answer:
$22,200
Explanation:
With regards to the above information Mogul company,
Cost of goods
= $81,000 + $8,700
= $89,700
= $61,000 + $6,500
= $67,500
Inventory = Cost of goods - Cost of goods sold
= $89,700 - $67,500
= $22,200
It therefore means that the amount of inventory Magu company will report at the year end is $22,200
Which of the following is included in the entry to record the issuance of shares of par value common stock at per share for cash?
A) Cash is debited for $294,000.
B) Common Stock is debited for $98,000.
C) Common Stock is credited for $294,000.
D) Paid-In Capital in Excess of Par-Common is debited for $196,000.
Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows:
Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.
Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900
Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
Answer:
Production budget for the first quarter of 202x
Particulars January February March Total
Expected sales 3,900 3,200 3,700 10,800
Required ending 800 925 1,100 2,825
inventory
Less beginning 975 800 925 2,700
inventory
Required number 3,725 3,325 3,875 10,925
of units to be produced
The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.
Which of the following policies often contains clauses that permit a social networking operator to collect and store data on users or even share it with third parties?
1) Terms of Trade policy
2) Terms of Use policy
3) Terms of Endearment policy
4) Terms of Retention policy
Answer: 2) Terms of Use policy
Explanation:
Terms of service are a contract or agreement between the user of a website or in this case a social networking operator and the social networking operator itself. This agreement is meant to govern the terms of the relationship between the 2 parties in terms of what will be expected of both, i.e, their rights and responsibilities.
On the side of the social networking operator, one of the rights usually listed is one stating that the operator can collect and store data on users or even share it with third parties and so it is important to read the terms of use policy as best you can when you can.
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit.
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:
Raw materials $10,200
Work in process $4,200
Finished goods $8,200
During the year, the following transactions were completed:
a. Raw materials purchased for cash, $170,000.
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
c. Costs for employee services were incurred as follows: |Direct labor|$156,000
Indirect labor $185,900
Sales commissions $22,000
Administrative salaries $50,000
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.Utility costs incurred in the factory, $16,000.
f.Advertising costs incurred, $13,000.
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
h. Manufacturing overhead cost was applied to jobs, $?
i.Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Required:
(Round your intermediate calculations to 2 decimal places)
1. Prepare journal entries to record the transactions for the year.
2. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
3. Prepare an income statement for the year.
Answer:
1)
a. Raw materials purchased for cash, $170,000.
Dr Materials inventory 170,000
Cr Cash 170,000
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
Dr Work in process: direct materials 121,000
Dr Manufacturing overhead 20,000
Cr Materials inventory 141,000
c. Costs for employee services were incurred as follows:
Dr Work in process: direct labor 156,000
Dr Manufacturing overhead 185,900
Dr Sales salaries expense 22,000
Dr Administrative salaries expense 50,000
Cr Cash 413,900
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling)
Dr Manufacturing overhead 13,600
Dr Rent expense 5,200
Cr Cash 18,800
e.Utility costs incurred in the factory, $16,000.
Dr Manufacturing overhead 16,000
Cr Cash 16,000
f. Advertising costs incurred, $13,000.
Dr Advertising expenses 13,000
Cr Cash 13,000
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
Dr Manufacturing overhead 15,000
Dr Depreciation expense 6,000
Cr Accumulated depreciation: manufacturing equipment 15,000
Cr Accumulated depreciation: office equipment 6,000
h. Manufacturing overhead cost was applied to jobs, $?
Dr Work in process 265,200
Cr Manufacturing overhead 265,200 (170% of direct labor)
i. Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
Dr Finished goods inventory 226,000
Cr Work in process 226,000
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Dr Cash 514,000
Cr Sales revenue 514,000
Dr Cost of goods sold 220,000
Cr Finished goods inventory 220,000
2)
Dr Manufacturing overhead ($265,200 - $250,500) 14,700
Cr Cost of goods sold 14,700
3) Gold Nest Company
Income Statement
Sales revenue $514,000
- Cost of goods sold -$205,300
Gross profit $308,700
Operating expenses:
Sales salaries expense -$22,000Administrative salaries expense -$50,000Rent expense -$5,200Advertising expenses -$13,000Depreciation expense -$6,000 -$96,200Operating profit $212,500
1. The preparation of journal entries to record the transactions for Gold Nest Company of Guandong, China, is as as follows:
a. Debit Raw materials $170,000
Credit Cash $170,000
b. Debit Work in Process $121,000
Debit Manufacturing Overhead $20,000
Credit Raw materials $141,000
c. Debit Work in Process $156,000
Debit Manufacturing Overhead $185,900
Credit Payroll Expenses $341,900
Debit Selling and Administrative Expenses $22,000
Credit Sales commissions $22,000
Debit Selling and Administrative Expenses $50,000
Credit Administrative salaries $50,000
d. Debit Manufacturing Overhead $13,600
Debit Selling and Administrative Expenses $5,200
Credit Rent Expenses $18,800
e. Debit Manufacturing Overhead $16,000
Credit Utilities Expense $16,000
f. Debit Selling and Administrative Expenses $13,000
Advertising costs $13,000
g. Debit Manufacturing Overhead $15,000
Debit Selling and Administrative Expenses $6,000
Credit Depreciation Expenses $21,000
h. Debit Work in Process $265,200
Credit Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Debit Finished Goods Inventory $226,000
Credit Work in Process $226,000
j. Debit Cash $514,000
Credit Sales Revenue $514,000
j. Debit Cost of goods sold $220,000
Credit Finished Goods Inventory $220,000
2. The journal entry to close the balance in the Manufacturing Overhead account to the Cost of goods sold is as follows:
Debit Manufacturing Overhead $14,700
Credit Cost of goods sold $14,700
3. Gold Nest Company
Income Statementfor the year ended December 31
Sales Revenue $514,000
Cost of goods sold 205,300
Gross profit $308,700
Selling and Administrative Expenses:
Sales commission $22,000
Administrative salaries 50,000
Rent Expenses 5,200
Advertising Expenses 13,000
Depreciation Expenses 6,000
Total selling/admin. $96,200
Net income $212,500
Data Calculations:Estimated manufacturing overhead = $76,500
Estimated direct labor dollars = $45,000
Predetermined overhead rate = $1.70 ($76,500/$45,000)
Beginning inventory balances:Raw materials = $10,200
Work in process = $4,200
Finished goods = $8,200
Data Analysis:a. Raw materials $170,000 Cash $170,000
b. Work in Process $121,000 Manufacturing Overhead $20,000 Raw materials $141,000
c. Work in Process $156,000 Manufacturing Overhead $185,900 Payroll Expenses $341,900
Selling and Administrative Expenses $22,000 Sales commissions $22,000
Selling and Administrative Expenses $50,000 Administrative salaries $50,000
d. Manufacturing Overhead $13,600 Selling and Administrative Expenses $5,200 Rent Expenses $18,800
e. Manufacturing Overhead $16,000 Utilities Expense $16,000
f. Selling and Administrative Expenses $13,000 Advertising costs $13,000
g. Manufacturing Overhead $15,000 Selling and Administrative Expenses $6,000 Depreciation Expenses $21,000
h. Work in Process $265,200 Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Finished Goods Inventory $226,000 Work in Process $226,000
j. Cash $514,000 Sales Revenue $514,000
j. Cost of goods sold $220,000 Finished Goods Inventory $220,000
2. Manufacturing Overhead $14,700 Cost of goods sold $14,700
Manufacturing Overheadb. Raw materials $20,000
c. Payroll Expenses $185,900
d. Rent Expenses $13,600
e. Utilities Expense $16,000
g. Depreciation Expenses $15,000
h. Work in Process $265,200
Cost of goods sold (Over-applied
overhead) $14,700
Cost of goods soldFinished goods $220,000
Over-applied manufacturing overhead (14,700)
Adjusted cost of goods sold $205,300
What is a job-order costing system?A job-order costing system is a costing system that tracks the costs and revenues according to jobs, with jobs allocated job numbers. It is unlike process costing, which tracks jobs for each process in order to determine the unit costs instead of per job.
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Bronn tells Jaime, "I really like your armor." Jaime responds, "I will sell it to you for $800." Bronn states, "Sure, and throw in your sword too." Jaime then writes out the contract, detailing only that he will sell Bronn his armor and the sword. He also lists the delivery date for next Wednesday. The next week on the day of performance, Jaime fails to deliver the armor and sword. Bronn sues him for breach of contract, but Jaime claims the contract is not enforceable because it was missing the price. When Bronn filed his lawsuit, which of the following needed to be included in the written contract for enforceability?
a. signature of both parties
b. price subject
c. matter
d. delivery
e. performance
Answer:
B. price subject
Explanation:
For this contract to be enforceable, it must include price, matter and delivery date. These aspects are all best essential and should be included in the contract. From the question when Jaime wrote the contract he failed to detail the price they agreed upon. Even though the rest were included. Therefore this contract cannot be enforced since it is missing this important aspect. Option b is the answer to the question
A consumer plays the role of:
A)a wage earner.
B)a saver.
C)a borrower.
D)All of these choices are correct.
Answer:
c) borrower
Explanation:
A consumer plays the role of a borrower. The consumer is the important role in the economy. Thus, option (c) is correct.
What is consumer?The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consumed the product and services. The consumer are buying the product and services with exchange of money.
According to the role of the consumer are the played in the significant role of the economy. The business are the sale of the goods and the services are the borrower are the paid the money to the business. The economy cycle was the continue run.
As a result, the consumer plays the role of a borrower. The consumer is the significant role in the economy. Therefore, option (c) is correct.
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Research an organization that makes people their primary focus and another organization that makes productivity and efficiency their primary focus. Compare, contrast, and discuss the control techniques and measurements for each organization.
Answer:
Ritz Carlton hotel focuses on people.
Sony Focuses on their products.
Explanation:
Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority.
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers. Their main focus is on their product features and its qualities.
Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is hours. The direct labor standard wage rate at the firm is per hour. Last month, direct labor hours were used to prepare tax returns. Total wages were .
Answer:
Tax Services
Total wages were:
= hourly wage rate * total hours spent on returns for the month
For example, if the hourly wage rate is $50 and the total hours spent on the returns equal 560 hours, the total wages will be equal to $28,000 ($50 x 560).
Explanation:
The Tax Services' total wages will be equal to the hourly wage rate multiplied by the total hours spent on returns during the month. The total hours spent on the returns for the month is obtained by adding up the hours spent on all the returns. The total wages depend on the hours worked and the standard wage rate that has been established in the firm.
Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False
Answer:
True
Explanation:
If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.
Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $9,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be:
Answer:
Initial value of building = $4,050,000
Initial value of land = $2,700,000
Initial value of equipment = $2,250,000
Explanation:
The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.
The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.
The initial value of each asset from a group of asset can be calculated using the following formula:
Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)
Where, from the questio;
Lump-sum price = $9,000,000
FVA = Fair value of a particular asset. From the question, we have:
Building fair value = $4,500,000
Land fair value = $3,000,000
Land fair value = $2,500,000
TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000
Substituting the values into equation (1), we can determine the initial value of each asset as follows:
Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000
Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000
Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 3 percent less than that for preferred stock.
Debt can be issued at a yield of 11.0 percent, and the corporate tax rate is 20 percent. Preferred stock will be priced at $60 and pay a dividend of $6.40. The flotation cost on the preferred stock is $6.
a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Based on the facts given above, is the treasurer correct?
Answer:
a. Compute the after tax cost of debt.
after tax cost of debt = 11% x (1 - tax rate) = 11% x 0.8 = 8.8%
b. Compute the after tax cost of preferred stock.
after tax cost of preferred stock = cost of preferred stock (no taxes are deducted for paying preferred dividends since they are paid in capital)
cost of preferred stocks = $6.40 / ($60 - $6) = $6.40 / $54 = 11.85%
c. Based on the facts given above, is the treasurer correct?
the difference = 11.85% - 8.8% = 3.05%, so the treasurer was right
Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared to industry standards?
A) Benchmarking
B) Motivating unit managers
C) Promoting goal congruence
D) Providing feedback
Answer:
A) Benchmarking
Explanation:
Benchmarking refers to a process in which the performance of the company could be measured with respect to the product, services, processes as compared with the industry performance
Here in the given situation, when an actual result is compared with the industry standards than we called as a benchmarking and the same is to be used for the evaluation of the performance system
The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced
Answer:
Unites actually produced = 4,000 units
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Material quantity variance in unit = Materials quantity variance in value /standard price
Material quantity variance in unit = 350/2.50 =140 pounds
Actual quantity used (in pounds) = standard quantity allowed - Material quantity variance
= 4000 - 140 = 3,860 pounds
Actual units produced = Standard quantity allowed/ standard quantity per unit
= 4,000/1 = 4000 units
Unites actually produced = 4,000 units
