Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: Actual Budgeted Units sold 290,000 300,000 Sales $1,450,000 $1,515,000 Variable costs 652,500 636,300 Contribution margin $ 797,500 $ 878,700 Market size (in units) 1,250,000 1,200,000 Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. In your computations, round the contribution margin per unit to three decimal places. Contribution margin variance $ Unfavorable Contribution margin volume variance $ Unfavorable 2. Calculate the market share variance and the market size variance. In your computations, round the unit contribution margin to three decimal places and round the market share percentage to one decimal place (for example, .8439 would be rounded to 84.4%). Round your final answers to the nearest dollar. (CMA adapted) Market share variance $ Unfavorable Market size variance $ Favorable

Answers

Answer 1

Answer:

1. Market share variance= $65,903(Unfavorable)

2. Market size variance= $36,613(favourable)

Check attachment for the table

Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size

Related Questions

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 600,000 Variable expenses $ 241,000 Fixed manufacturing expenses $ 232,000 Fixed selling and administrative expenses $ 180,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,500 of the fixed manufacturing expenses and $107,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E

Answers

Answer:

$127,000

Explanation:

Suire Corporation Net operating income

Sales $ 600,000

Variable Costs $ 241,000

Contribution Margin $ 359,000

Fixed Expenses $232,000

Net Operating Income $127,000

Oldham Corporation bases its predetermined overhead rate on a variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, what would be the fixed component in the predetermined overhead rate

Answers

Answer:

$21.42

Explanation:

The computation of fixed component in the predetermined overhead rate is shown below:-

Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours

= $87,822 ÷ 4,100

= $21.42

Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.

And all the other information i.e given is not relevant. Hence, ignored it

For the cost and price functions below, find



a. the number, q, of units that produces maximum profit



b. the price, p, per unit that produces maximum profit



c. the maximum profit, P.



C(q) = 70 + 17q



p = 77 - 2q

Answers

Answer:

a) The number, q, of units that produces maximum profit = 15

b) The price, p, per unit that produces maximum profit = 47 (currency not giben in the question)

c) Maximum Profit = P = 380 (currency not given in the question).

Explanation:

The cost function and price per unit function are given respectively as

C(q) = 70 + 17q

p = 77 - 2q

where q = quantity or number of units

a.) the number, q, of units that produces maximum profit

Total cost = C(q) = 70 + 17q

Revenue = (price per unit) × (Number of units) = p × q = (77 - 2q) × q = (77q - 2q²)

Profits = P(q) = (Revenue) - (Total Cost)

P(q) = (77q - 2q²) - (70 + 17q)

P(q) = -2q² + 60q - 70

To maximize the profits, we just obtain the point where the profit function reaches a Maximum.

At the maximum of a function, (dP/dq) = 0 and (d²P/dq²) < 0

Profit = P(q) = -2q² + 60q - 70

(dP/dq) = -4q + 60

At maximum point,

(dP/dq) = -4q + 60 = 0

q = (60/4) = 15

(d²P/dQ²) = -4 < 0 (hence, showing that the this point corresponds to a maximum point truly)

Hence, the number, q, of units that produces maximum profit = 15.

b.) the price, p, per unit that produces maximum profit

The price per unit is given as

p = 77 - 2q

Maximum profit occurs at q = 15

p = 77 - (2×15) = 47

Hence, the price, p, per unit that produces maximum profit = 47 (currency not given in the question)

c.) the maximum profit, P.

The Profit function is given as

Profit = P(q) = -2q² + 60q - 70

At maximum Profit, q = 15

Maximum Profit = P(15)

= -2(15²) + 60(15) - 70

= 380 (currency not given in the question).

Hope this Helps!!!

A) The number, q, of units that produce maximum profit is = 15

B) The price, p, per unit that creates maximum profit is = 47

C) Maximum Profit is = P = 380

What is the cost and price function?

When The cost procedure and price per unit procedure are presented respectively as:

C(q) is = 70 + 17q

p is = 77 - 2q

where that q is = quantity or number of units

a.) When the number, q, of units that produce maximum profit

The Total cost is = C(q) = 70 + 17q

When the Revenue is = (price per unit) × (Number of units) that is = p × q = (77 - 2q) × q is = (77q - 2q²)

After that Profits is = P(q) = (Revenue) - (Total Cost)

Then P(q) is = (77q - 2q²) - (70 + 17q)

Now, P(q) is = -2q² + 60q - 70

When To maximize the profits, Then we just obtain the point where the profit function reaches a Maximum.

When At the maximum of a function, (dP/dq) is = 0 and (d²P/dq²) < 0

Profit is = P(q) = -2q² + 60q - 70

(dP/dq) is = -4q + 60

Then At maximum point are:

(dP/dq) is = -4q + 60 = 0

After that, q = (60/4) = 15

Then (d²P/dQ²) = -4 < 0 (hence, showing that this point corresponds to a maximum point truly)

Therefore, the number, q, of units that produce maximum profit is = 15.

b.) When the price, p, per unit that produces maximum profit

The price per unit is given as

p is = 77 - 2q

Then Maximum profit occurs at q is = 15

p is = 77 - (2×15) = 47

Therefore, the price, p, per unit that produces maximum profit is = 47 (currency not provided in the question)

c.) When the maximum profit, P.

The Profit function is given as

Profit is = P(q) = -2q² + 60q - 70

Then At maximum Profit, q = 15

So, The Maximum Profit is = P(15)

Then = -2(15²) + 60(15) - 70

Therefore, = 380 (currency not given in the question).

Find more information Cost and price function here:

https://brainly.com/question/17185609

Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $104,000 and budgeted cash disbursements total $87,000. The desired ending cash balance is $70,000. The company can borrow up to $90,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

Answers

Answer:

                                                     Zolezzi Inc.

                                          Cash budget for March

                                                       Amount in $'000                          

Opening balance                                27

Add;

Cash receipts                                    104      

Less;

Cash disbursements                        (87)                

Ending balance                                  44  

Amount to be borrowed                   26  

Desired ending balance                   70                                                                                                

Explanation:

The cash budget a forecast of the expected movement in cash balance. This is as a result of expected cash receipts and disbursements and may be expressed mathematically as

opening cash balance + cash receipts - Cash disbursed = closing cash balance

27 + 104 - 87 = ending balance

Ending balance = 44

Desired ending balance = 70

Amount to be borrowed = 70 - 44

= 26

The following materials standards have been established for a particular product: Standard quantity per unit of output 5.3 pounds Standard price $ 14.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 6,150 pounds Actual cost of materials purchased $ 63,780 Actual materials used in production 5,650 pounds Actual output 790 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?The following materials standards have been established for a particular product: Standard quantity per unit of output 5.3 pounds Standard price $ 14.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 6,150 pounds Actual cost of materials purchased $ 63,780 Actual materials used in production 5,650 pounds Actual output 790 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month?

Answers

Answer:

Direct material quantity variance= $20,628.3

Explanation:

Giving the following information:

Standard quantity per unit of output 5.3 pounds

Standard price $14.10 per pound

Actual materials used in production 5,650 pounds

Actual output 790 units

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= (5.3*790 - 5,650)*14.1

Direct material quantity variance= $20,628.3

Sheffield Corp. issued $7080000 of 11%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1416000 of these bonds were converted into 600 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2020

Answers

Answer:

The amount of the debit to "interest expense" on October 1, 2020 is $194,700

Explanation:

According to the given data we have the following:

Bond face value=$7,080,000

interest rate=11%

There are 3 months interest recognized from july to september, therefore, to calculate the amount of the debit to "interest expense" on October 1, 2020 we would have to make the following calculation:

amount of the debit to "interest expense" on October 1, 2020=$7,080,000*11%*3 months / 12 months

amount of the debit to "interest expense" on October 1, 2020=$194,700

The amount of the debit to "interest expense" on October 1, 2020 is $194,700

In this assignment, you will develop a more personalized understanding of the Balanced Scorecard concept and see how your vision and mission can be linked to your goals and objectives. Using the S-M-A-R-T tools in section 6.7 of Chapter 6 in the text, create your own list of goals and objectives.

Create 4 to 5 S-M-A-R-T goals and objectives and demonstrate how they link to your Strategy Diamond and personal vision and mission statements.​

Answers

Explanation:

The following are my SMART goals:-

Specific

1. I want to be physically fit within 6 months on order to be able to run a marathon in less than 3 hours.

2. I want to become a manager in my current organization from my current position as an assistant manager within the next 3 years in order to be able lead a team.

3. I want to be a lovable dad to my daughter in the next 3 months so that I can spend more quality time with her.

4. I want to become an amazing husband to my wife by spending more quality time with her and also taking her on vacations in the next 6 months.

Measurable

1. I would start my training from next week. Initially I would run 3 to 5 kilometers with walk breaks.

2. I would talk to my boss next week to ask for more responsibilities and also to ask him to let me know what is required to get promoted.

3. I would start leaving office early by being more efficient and effective in the office. I will also take my daughter on walks and play with her for 1 hour daily.

4. I would come back from office early and spend time with my wife.

Attainable

1. I will talk to other marathoners to know whether my goal is attainable and will also research about it.

2. I will talk to my colleagues whom are managers about what they did to get promoted.

3. I will talk to other dads to know whether my goal is attainable.

4. I will talk to other husbands that are successful.

Realistic

When I start measuring my progress weekly and getting a feedback from people whom I admire, then I would know how realistic my goals are.

Timely

I have given a time frame for the attainment of all these goals which is very vital.

For implementing these goals, I m going to use the Plan-Do-Act-Dare cycle.

Since my objective is to become a well rounded person in my personal and also my professional life, the above steps will surely help me in becoming that person.

The strategy diamond will consist of:-

1. Arenas- Professional and Personal

2. Vehicles- Focus and hard work

3. Differentiation- Being different and unique from others.

4. Staging- Speed of initiatives

Also, there should be an economic logic binding this.

Assume that you are a retail customer. Use the information below to answer the following question. Bid Ask Borrowing Lending S0($/€) $1.42 = €1.00 $1.45 = €1.00 i$ 4.25% APR 4% APR F360($/€) $1.48 = €1.00 $1.50 = €1.00 i€ 3.10% APR 3% APR If you borrowed $1,000,000 for one year, how much money would you owe at maturity? A. $1,450,352 B. $1,042,500 C. € 1,024,500 D. $1,525,400

Answers

Answer:

$1,042,500.

Explanation:

From the question above, we are given the following parameters; under the bid, we have $1.42 = €1.00 and $1.48 = €1.00; the borrowing and lending are $ 4.25% and 4% APR respectively for S0($/€).

Also, for F360($/€), the bid and ask values are: $1.48 = €1.00 and $1.50 = €1.00 respectively; the borrowing and lending values are 3.10% APR and 3% APR.

Therefore, the Borrowing rate is ($) 4.25% in $ . Thus, $1,000,000 for one year, one we owe

$1,000,000 × (1 + 0.0425) = $1,042,500 at maturity.

Financial Crisis

Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending should remain depressed for some time. Refer to Financial Crisis. In the long run, if the Fed does not respond, the change in price expectations created by the crisis shifts:

a. short-run aggregate supply right.

b. aggregate demand right.

c. aggregate demand left.

d. short-run aggregate supply left.

Answers

Answer:

The correct answer to the given question is “D – Short-Run Aggregate Supply Left”

Explanation:

While the problem is there for offering and deriving, less asset is being completed on the budget. Thus due to the lack of capital. The investment standard growing will decrease and therefore as an outcome, short run cumulative source curve will move to the left.

The Donut Stop acquired equipment for $10,000. The company uses straight-line depreciation and estimates a residual value of $2,000 and a four-year service life. At the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time, the company also changed the estimated residual value to $1,000 from the original estimate of $2,000. Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6.

Answers

Answer:

Cost of Equipment: $10,000

Less Accumulated Depreciation ($10,000 - $2,000 / 4*2):   $4,000

= Book Value (End of Year 2):     $6,000

Less New Residual Value:       $-1,000

= New Depreciated Cost: $5,000

Remaining Service Life:  4

Annual Depreciation in Years 3 to 6 ($5,000 / 4):  $1,250

Depreciation by Two Methods A storage tank acquired at the beginning of the fiscal year at a cost of $80,000 has an estimated residual value of $4,000 and an estimated useful life of 20 years. a. Determine the amount of annual depreciation by the straight-line method. $ b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

Answers

Answer:

a. Annual depreciation = $3,800

b. First year depreciation is $8,000' while second year depreciation is $7,200.

Explanation:

a. Determine the amount of annual depreciation by the straight-line method.

Depreciable amount = $80,000 - $4,000 = $76,000

Annual depreciation = $76,000 / 20 = $3,800

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

Straight line depreciation rate = 1 / 20 = 0.05, or 5%

Double declining depreciation rate = 5% * 2 = 10%

First year depreciation = $80,000 * 10% = $8,000

Second year depreciation = ($80,000 - $8,000) * 10% = $7,200

Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 9,000 MHs Actual level of activity 9,100 MHs Standard variable manufacturing overhead rate $ 6.20 per MH Budgeted fixed manufacturing overhead cost $ 55,000 Actual total variable manufacturing overhead $ 56,600 Actual total fixed manufacturing overhead $ 59,500 What was the fixed manufacturing overhead budget variance for the month?

Answers

Answer:

$4,500 U

Explanation:

Teall Corporation

Budget variance = Actual fixed overhead cost − Budgeted fixed overhead cost

Actual total fixed manufacturing overhead $ 59,500

Less Budgeted fixed manufacturing overhead cost $ 55,000

Fixed manufacturing overhead budget variance for the month $4,500 U

Therefore the fixed manufacturing overhead budget variance for the month is $4,500 U

Exercise 24-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $520,000 and have a useful life of six years. The system yields an incremental after-tax income of $150,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. A machine costs $380,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $60,000 per year after straight-line depreciation.

Answers

Answer and Explanation:

The computation of the payback period is shown below:

1. Payback period = Initial investment ÷ Net cash flow      

where,

Initial investment is $520,000

Net cash flow is =  incremental after-tax income + depreciation expense

= $150,000 + $85,000

= $235,000

The depreciation expense is

= ($520,000 - $10,000) ÷ (6 years)

= $85,000

Now the payback period is

= $520,000 ÷ $235,000

= 2.21 years

2. Payback period = Initial investment ÷ Net cash flow      

where,

Initial investment is $380,000

Net cash flow is =  incremental after-tax income + depreciation expense

= $60,000 + $45,000

= $105,000

The depreciation expense is

= ($380,000 - $20,000) ÷ (8 years)

= $45,000

Now the payback period is

= $380,000 ÷ $105,000

= 3.62 years

On January 1, 2017, Shamrock Inc. issued $400,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31.

Answers

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $400,000

           To Bonds payable  $400,000

(Being the bond is issued for cash)

For recording this we debited the cash as it increased the assets and at the same time it increased the liabilities so the bond payable is credited

On July 1

Interest expense  $14,000

             To Cash  $14,000

(Being the payment of interest is recorded)

The computation is shown below:

= $400,000 × 7% × 6 months ÷ 12 months

= $14,000

For recording this we debited the expenses as it increased the expenses and at the same time it decreased the assets so the cash is credited

On Dec 31

Interest expense $14,000

           To Interest payable $14,000

(Being the accrual of interest is recorded)

For recording this we debited the expenses as it increased the expenses and at the same time it increased the liabilities so the interest payable is credited

Indigo Incorporated factored $135,100 of accounts receivable with Sweet Factors Inc. on a without-recourse basis. Sweet assesses a 3% finance charge of the amount of accounts receivable and retains an amount equal to 7% of accounts receivable for possible adjustments. Prepare the journal entry for Indigo Incorporated and Sweet Factors to record the factoring of the accounts receivable to Sweet.

Answers

Answer:

Indigo Incorporated Journal entrie

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Explanation:

Indigo Incorporated Journal entries

Dr Cash 121,590

Dr Due from Factor 9,457

Dr Loss on Sale of Receivable 4,053

Cr Accounts Receivable 135,100

Sweet Factors Inc

Dr Account Receivable 135,100

Cr Due to Customer 9,457

Cr Finance Revenue 4,053

Cr Cash 121,590

Due from Factor = 7% x $135,100 = $9,457

Loss on Sale of Receivables = 3% x $135,100= $4,053

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 232,200 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month’s sales. The inventory at the start of the budget period is 15,600 units. Sales occur evenly throughout the year. Required: Estimate the production level required for the coming year to meet these objectives.

Answers

Answer:

Production= 235,950 units

Explanation:

Giving the following information:

Sales= 232,200 units during the coming year.

Desired ending inventory= one month's sales

Beginning inventory= 15,600 units.

First, we need to calculate the desired ending inventory:

Desired ending inventory= 232,200/12= 19,350

Now, we can determine the production for the year:

Production= sales + desired ending inventory - beginning inventory

Production= 232,200 + 19,350 - 15,600

Production= 235,950 units

The Red Wolf Society, a nongovernmental not-for-profit organization, receives numerous contributed hours from volunteers during its busy season. Tom, a clerk at the local government utility’s office, volunteered ten hours per week for 8 weeks transferring wolf food from the port to the wolf shelter. His rate of pay at the utility office is $20 per hour, and the prevailing wage rate for laborers is $15 per hour. What amount of contribution revenue should Red Wolf Society record for this service? Multiple Choice $1,200 $400 $1,600 $0

Answers

Answer:

$1,600

Explanation:

Revenue is recognized as and when the control of a good or service is transferred to the customer.

Total Hours = 10 hours × 8 weeks

                    = 80 hours

Use the rate of pay at the utility office to determine the contribution revenue for Red Wolf Society

Revenue = 80 hours × $20 per hour

               = $1,600

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting Assembly Direct costs $ 20,400 $ 25,500 $ 76,500 $ 105,400 No. of personnel 15 15 45 Sq. ft. of space 10,000 15,000 The total cost of operating the Maintenance Department for the current period is:

Answers

Answer:

The total cost of operating the Maintenance Department for the current period is $29,580

Explanation:

In order to calculate The total cost of operating the Maintenance Department for the current period we would have to calculate first the Overhead allocated to Maintenance from Payroll department as follows:

Overhead allocated=Payroll overhead×(Maintenance payroll personnel/Total personnel)

Overhead allocated=$ 20,400×(15/15+15+45)

Overhead allocated=$4,080

Therefore, to calculate the The total cost of operating the Maintenance Department for the current period we would have to use the following formula:

Total cost of operating Maintenance Department=Overhead allocated+Direct overhead incurred

Total cost of operating Maintenance Department=$4,080+$25,500

Total cost of operating Maintenance Department=$29,580

The total cost of operating the Maintenance Department for the current period is $29,580

Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniques— warranties and premiums— to attract customers.
Below is the information to answer the required question.
a. Musical instruments and sound equipment are sold with a one- year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 2% of sales.
b. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $ 20 for a CD player. Garison pays $ 32 for each CD player and estimates that 60% of the coupons given to customers will be redeemed.
c. Garison’s total sales for 2010 were $ 7,200,000—$ 5,700,000 from musical instruments and sound reproduction equipment and $ 1,500,000 from recorded music and sheet music.
d. Replacement parts and labor for warranty work totaled $ 164,000 during 2010.
e. A total of 6,500 CD players used in the premium program were purchased during the year and there were 1,200,000 coupons redeemed in 2010.
f. The accrual method is used by Garison to account for the warranty and premium costs for financial reporting purposes.
The balances in the accounts related to warranties and premiums on January 1, 2010, were as shown below.
Inventory of Premium CD Players $ 37,600
Estimated Premium Claims Outstanding 44,800
Estimated Liability from Warranties 136,000
Question:
(a) Garison Music Emporium is preparing its financial statements for the year ended December 31, 2010. Determine the amounts that will be shown on the 2010 financial statements for the following.
(1) Warranty Expense -
(2) Estimated Liability from Warranties -
(3) Premium Expense -
(4) Inventory of Premium CD Players -
(5) Estimated Premium Claims Outstanding -

Answers

Answer:

Explanation:

(a)

Given:

Warranty exp = 2% of musical instrument & sound equipment

Calculation:

Warranty exp = Warranty exp * 5,424,000

Warranty exp = 2% * 5,424,000

Warranty exp = 108,480

(b)

Warranty liability as on December 2017 = Opening Balance + Warranty Expense - Warranty Claim

Warranty liability as on December 2017 = 138,000 + 108,480 - 156,400

Warranty liability as on December 2017 = $90,080

(c)

The customer receives one coupon for each dollar spend 2,138,000 only 50% coupon will be redeemed.

Exp provision liability created = 50% * 2,138,000

Exp provision liability created = 1,069,000

Customer can exchange 200 coupon & $30 for MP3 player which is purchase for 42 that mean 200 coupon will be for 12 i.e. (42-30) value of coupon will be

12

200

= 0.06.

Value of 1,069,000 coupon = 1,069,000 * 0.06

Value of 1,069,000 coupon = 64,140

(d)

1,138,000 coupons had been redeemed during the year each MP3 player required 200 coupons.

N

o

o

f

M

P

3

p

l

a

y

e

r

o

f

f

e

r

e

d

=

1

,

138

,

000

200

N

o

o

f

M

P

3

p

l

a

y

e

r

o

f

f

e

r

e

d

=

5

,

690

M

P

3

p

l

a

y

e

r

Cost = 5,690 * 42

Cost = 238,980

Inventory Premium = Opening Balance + Purchases - Utilized Redeemed Coupon

Inventory Premium = 39,210 + (7,010 * 42) - 238,980

Inventory Premium = 39,210 + 294,420 - 238,980

Inventory Premium = $94,650

(e)

Premium liability balance = Opening Balance + Premium Exp Provision - Coupon Redeemed

Premium liability balance = 41,670 + 64,140 - (1,138,000 * 0.06)

Premium liability balance = 41,670 + 64,140 - 68,280

Premium liability balance = 37,530

Beerbo purchased a patent from Mitter Lite Co. for $1,000,000 on January 1, 2018. At that time, the patent's useful life was 10 years, expiring on December 31, 2027. In early 2020, Beerbo determined that the economic benefits of the patent would not last longer than 4 more years (6 years from the date of acquisition). Given the revised useful life, Beerbo expects the useful life of the patent to expire on December 31, [a1]. (Input year; e.g. "2020") At the end of 2019 / beginning of 2020, what was the value / net book value of the patent in Beerbo's books

Answers

Answer:

$800,000

Explanation:

As per the data given in the question,

Beerbo expects patent's useful life to expire on Dec-31 2023.

At the beginning of 2020 / end of 2019, the value of the patent in Beerbo's book = $1,000,000 - ($1,000,000 ÷ 10×2))

= $800,000

Amortix patent year = 4

Patent amortization expense at the end of 2020 = $800,000 ÷ 4

=$200,000

Bramble Company purchased equipment on January 1, 2018 at a total invoice cost of $347000; additional costs of $5000 for freight and $32000 for installation were incurred. The equipment has an estimated salvage value of $11000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2019 if the straight-line method of depreciation is used is:__________
a. $153600.
b. $136400.
c. $134400.
d. $149200.

Answers

Answer:

d. $149200.

Explanation:

Depreciation is a method used in expensing the cost of an asset.

Deprecation expense using the straight line method = (Cost of asset - Salvage value) / useful life

Cost of asset = $347,000 + $5,000 + $32,000 = $384,000

( $384,000 - $11,000) / 5 = $74,600

Deprecation expense each year would be $74,600.

Accumulated depreciation in 2019 would be the sum of deprecation expense in 2018 and 2019

$74,600 × 2 = $149,200

I hope my answer helps you

Chiasso Co. reported a retained earnings balance of $200,000 at December 31, 2020. In September 2021, Chiasso determined that insurance premiums of $30,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. Chiasso has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings?

Answers

Answer:

$215,000

Explanation:

Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.

Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.

The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.

Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000

The adjustment should be added in the retained earning balance as it was expensed earlier.

Adjusted retained earning balance = $200,000 + $15,000 = $215,000

Windsor Co. is building a new hockey arena at a cost of $2,420,000. It received a down payment of $510,000 from local businesses to support the project, and now needs to borrow $1,910,000 to complete the project. It therefore decided to issue $1,910,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%.

Prepare the journal entry to record the issuance of the bonds on January 1, 2019.

Answers

Answer:

Dr    Cash   $2,032,577.26

Cr premium on bonds payable  $122,577.26  

Cr bonds payable                        $1,910,000

Explanation:

First and foremost the proceeds received from the bond issuance needs to determine the pv formula in excel as follows:

=-pv(rate,nper,pmt,fv)

rate is the yield  to maturity of 9%

nper is the number of annual coupons payable by the bond which is 10

pmt is the amount of annual coupon i.e  $1,910,000*10%=$191000

fv is the face value of the bond which is  $1,910,000

=-pv(9%,10,191000,1910000)=$2,032,577.26  

premium on bonds issuance= 2,032,577.26-1,910,000.00= $122,577.26  

Consider a portfolio manager with a $20,500,000 equity portfolio under management. The manager wishes to hedge against a decline in share values using stock index futures. Currently a stock index future is priced at 1250 and has a multiplier of 250. The portfolio beta is 1.25. Calculate the number of contracts required to hedge the risk exposure and indicate whether the manager should be short or long.

Answers

Answer:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

$1,550,000

Explanation:

Assume that a month later the equity portfolio has a market value of $20,000,000 and the stock index future is priced at 1150 with a multiplier of 250. Calculate the profit on the equity position.

Calculate the overall profit.

The manager should be short on the stock index futures because the position on the equity portfolio is long.

Number of contracts required to hedge

= [$20,500,000/(1250*250)] * 1.25 = 82 contracts

Profit on the equity portfolio

= $20,000,000 - $20,500,000 = -$500,000

Profit on the stock index future

= [(1250)(250) – (1150)(250)] x 82 = $2,050,000

Overall profit

=  $2,050,000 - $500,000

= $1,550,000

therefore, the overall profit is  $1,550,000

Vandy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 31 $ 29 Accounts receivable 61 73 Inventory 59 61 Property, plant, and equipment 684 550 Less accumulated depreciation 349 319 Total assets $ 486 $ 394 Liabilities and stockholders' equity: Accounts payable $ 53 $ 54 Accrued liabilities 20 21 Income taxes payable 52 48 Bonds payable 203 190 Common stock 61 60 Retained earnings 97 21 Total liabilities and stockholders' equity $ 486 $ 394 Income Statement Sales $ 807 Cost of goods sold 492 Gross margin 315 Selling and administrative expense 182 Net operating income 133 Gain on sale of equipment 16 Income before taxes 149 Income taxes 45 Net income $ 104 The company sold equipment for $18 that was originally purchased for $14 and that had accumulated depreciation of $12. It paid a cash dividend of $28 during the year and did not retire any bonds payable or repurchase any of its own common stock. Required: Prepare a statement of cash flows for the year using the indirect method.

Answers

Answer:

See below the statement of Cash flow from Vandy Corporation.

Explanation:

Vandy Corporation

Statement of Cash Flow

CASH FLOW FROM OPERATING ACTIVITIES:

Net Income                                                                                     $104

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation on Fixed Assets ($349-$319+$12)                             $42

Gain on Sale of Equipment                                                              ($16)

(Increase) Decrease in Current Assets:

Accounts Receivables                                                                       $12

Inventory                                                                                             $2

Increase (Decrease) in Current Liabilities:

Accounts Payable                                                                              ($1)

Accrued Liabilities                                                                              ($1)

Income taxes payable                                                                        $4

Net Cash provided by Operating Activities                                $146

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of Equipment                                                    $18

Purchase of Property, plant and equipment ($684-$550+$14)     ($148)

Net Cash Flow from Investing Activities                                      ($130)

CASH FLOWS FROM FINANCING ACTIVITIES:

Bonds Payable                                                                                       $13

Issuance of Common Stock                                                                   $1

Payment of Dividends                                                                       ($28)

Net Cash from Financing Activities                                                ($14)

Net Increase (Decrease) in Cash                                                        $2

Opening Cash Balance                                                                       $29

Ending Cash Balance                                                                           $31

What accounting assumption, principle, or constraint would Target Corporation use in each of the situations below? (a) Target was involved in litigation over the last year. This litigation is disclosed in the financial statements. select an option (b) Target allocates the cost of its depreciable assets over the life it expects to receive revenue from these assets. select an option (c) Target records the purchase of a new Dell PC at its cash equivalent price. select an option

Answers

Answer:

a. ASC 450 (previously recognized as SFAS 5) includes the declaration of a risk in proceedings and there is at minimum a "fair probability" that a loss has been sustained, and the report must provide an estimation of the probable damage or extent of damage or a declaration that this very calculation is not practicable.

b. Three specific criteria dictate however much depreciation they can subtract: (1) the real estate value, (2) the property rehabilitation time and (3) the form of depreciation utilized. You can't actually subtract as an benefit the lease or interest contributions, or the cost of furniture, decorations and appliances. The depreciation will only be deducted on the specific property used during leasing purposes.

c. For overclockers as well as operation in the federation the Computer is still the obvious winner. If you want to change hardware to maintain the cutting edge of your program, then a Laptop is the way forward. Further software must be installed for the PC like a large and ever-growing free software computer collection. Even so, thanks to an embedded tool named "Boot camp," you can install a Windows ® operating system on a Mac along with PC applications

 

Sheffield Co. is building a new hockey arena at a cost of $2,630,000. It received a downpayment of $520,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. Sheffield paid $50,000 in bond issue costs related to the bond sale.
Required:
(a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2019.
(b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.

Answers

Answer:

Explanation:

a.

Prepare the journal entry to record the issuance of the bonds on January 1, 2019.

Accounting homework question answer, step 1, image 1

Accounting homework question answer, step 1, image 2

Step 2

b.

Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.

The file attached below has the calculations

Which of the following statement(s) is(are) true regarding municipal bonds? I) A municipal bond is a debt obligation issued by state or local governments. II) A municipal bond is a debt obligation issued by the federal government. III) The interest income from a municipal bond is exempt from federal income taxation. IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

Answers

Answer:

I, III and IV Only.

Explanation:

A municipal bond is explained to be a debt obligation issued by a nonprofit organization, a private-sector corporation or another public entity using the loan for public projects such as constructing schools, hospitals and highways.

A municipal bond is categorized based on the source of its interest payments and principal repayments. A bond can be structured in different ways offering various benefits, risks and tax treatments. Income generated by a municipal bond may be taxable.

Answer: I) A municipal bond is a debt obligation issued by state or local governments.

III) The interest income from a municipal bond is exempt from federal income taxation.

IV) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

Explanation:

A municipal bond is usually a debt security issued by a state, or local government to finance its capital expenditures, which usually includes the construction of Roads, Bridges or Institutions( schools ). They can be considered as loans that an investor gives to local governments. This kind of bonds are exempted from federal taxes and most state and local taxes, Which makes them very attractive to interested individuals who are on high income tax brackets.

Indicate the effect—Understate, Overstate, No Effect—that each of the following errors has on 2020 net income and 2021 net income. 2020 2021 (a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018. Select an option Select an option (b) Wages payable were not recorded at 12/31/20. Select an option Select an option (c) Equipment purchased in 2020 was expensed. Select an option Select an option (d) 2020 ending inventory was overstated. Select an option Select an option (e) Patent amortization was not recorded in 2021. Select an option Select an option

Answers

Answer: The answer is provided below

Explanation:

The net income is excess of revenues over expenses after the adjustment for depreciation expense and the income tax expense. Net income is also called the net profit.

(a) Equipment (with a useful life of 5 years) was purchased and expensed in 2018.

2020 : It will be overstated in the net income.

2021: It will be overstated in the net income.

b. Wages payable were not recorded at 12/31/20.

2020: It will be overstated in the net income.

2021: It will be understated in the net income.

c. Equipment purchased in 2020 was expensed.

2020: It will be understated in the net income.

2021: It will be overstated in the net income

d. 2020 ending inventory was overstated.

2020: It will be overstated in the net income.

2021: It will be understated in the net income.

e. Patent amortization was not recorded in 2021.

2020: It will be no effect in the net income.

2021: It will be overstated in the net income

Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.2 ounces $ 4.00 per ounce $ 24.80 Direct labor 0.5 hours $ 17.00 per hour $ 8.50 Variable overhead 0.5 hours $ 4.00 per hour $ 2.00 The company reported the following results concerning this product in February. Originally budgeted output 4,900 units Actual output 5,000 units Raw materials used in production 30,200 ounces Actual direct labor-hours 2,080 hours Purchases of raw materials 32,600 ounces Actual price of raw materials $ 67.10 per ounce Actual direct labor rate $ 57.60 per hour Actual variable overhead rate $ 5.80 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is:

Answers

Answer:

Variable overhead efficiency variance $1,680  Favorable

Explanation:

Variable overhead efficiency variance:  Variable overhead efficiency variance aims to determine whether or not their exist savings or extra cost incurred on variable overhead as a result of workers being faster or slower that expected.

Since the variable overhead is charged using labour hours, any amount by which the actual labour hours differ from the standard allowable hours would result in a variance

                                                                                                      Hours

5000 units should have taken (5000×0.5 hours)                    2,500

but did take                                                                                 2,080  

Labour hours variance                                                                 420  favorable

Standard variable overhead rate                                             ×$ 4.00 per hour

Variable overhead efficiency variance                                   $1,680  Favorable

                 

                                                             

Other Questions
Which of the following represents an example of synthesis?Creons change of heart toward the burial of PolyniecesOdysseuss deception of the CyclopsPerseuss rescue of AndromedaJunos transformation of Io A CONE IS 1/3 OF A CYLINDER, SO THE VOLUME FORMULA IS 1/3 THE CYLINDER. What is the approximate area of a circle with diameter 6? PLEASE HURRY !Choose the item that best matches the verb givensentarsela navajael saco de dormirla butacael espejola camisael champel cepillo para los dientesel nombreNetel cerealla pastilla de jabn What does the first person narrative reveal about the setting? Can someone explain to me how to do itShow me an example please? Match the time period with the correct layer of fossils (mya = millions of years ago). ITEM BANK: Move to Bottom 175 mya250 mya400 mya 175 mya 0 2.25x = 1.5x + 6What is the value of x Write two sentences on global warming how wwl was connected to wwll What is the slope line through (-5,-10) and (-1,5) 7. Which kind of grant-in-aid has to beapplied for?A. a categorical grantB. a project grantC. revenue sharingD. a block grant 5n + 5= 45 Please help...constant=_, coefficient=_ why is the moon white I NEED HELP NOW PLZ. What is the mean of the data set?17, 24, 25, 13 Por qu Gabriel no quiere salir con Rosa?Porque Rosa es su hermanaPorque ella es su primaPorque est muy chiquitaPorque ya es su novia . can someone help asap will mark brainliest answer What was president Johnsons broad program of domestic policies called A dice was rolled five times and the following were rolled: 1, 3, 3, 4, 4Based on this information, find the experimental P(1). Answer Choices:y= x + 10; lineary= x + 10; non lineary= 10x + 1; lineary= 10x + 1; nonlinear