Danielle Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 8,200 units, but its actual level of activity was 8,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting
Fixed element per month Variable element per unit
Revenue $34.20
Direct labor $0 $6.20
Direct materials 0 13.80
Manufacturing overhead 37,000 1.70
Total expenses $62,500 $21.90
Selling and administrative expenses 25,500 0.20
Actual results for May:
Revenue $228,900
Direct labor $41,130
Direct materials $93,235
Manufacturing overhead $43,500
Selling and administrative expenses $30,470
The direct materials in the flexible budget for May would be closest to:________.
a. $89,735.
b. $92,230.
c. $90,420.
d. $91,020.

Answers

Answer 1

Answer:

$113,850

Explanation:

The computation of the direct material in the flexible budget is shown below:

= Actual level of activity × direct material per unit

= 8,250 units × $13.80

= $113,850

By multiplying the actual level of activity with the direct material per unit we can get the direct material in the flexible budget and the same is shown above

This is the answer but the same is not provided in the given options


Related Questions

Salyers Family Inn is a bed and breakfast establishment in a converted 100 year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity Level 57 guests Variable overhead costs Supplies $148.20 Laundry 216.60 Fixed Overhead costs Utilities 170.00 Salaries and wages 4,310.00 Depreciation 2,340.00 Total Overhead Cost $7,184.80 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 53 guests. Group of answer choices $6,680.60 $26,154.40 $7,159.20 $7,184.80

Answers

Answer:

The budgeted overhead= $7,159.2

Explanation:

The budgeted Overhead cost can be determined as follow

The budgeted overhead= Fixed cost + variable cost

Fixed overhead cost =  170.00 + 4,310.00 + 2,340.00 = 6820

Variable cost per activity  = ( 148.20 + 216.60)/57 = 6.4  per guest.

The budgeted cost equation = 6820  + 6.4 x

Where X represent the number of guest

The budgeted overhead = 6820  + (6.4 × 53)= $7,159.2

The budgeted overhead= $7,159.2

Flex-Tite manufactures plastic parts. The inventory policy at Flex-Tite is to hold inventory equal to 125% of the average monthly sales for its main product. Sales for the following year are expected to be 870,000 units. Based on the inventory policy, the budget calls for the production of 880,000 units. Required: What is the beginning inventory of the component?

Answers

Answer:

Beginning inventory = 80,650

Explanation:

Lets us use the following method to solve the given problem

Average Monthly Sales = 882000/12= 72,500

Required inventory = 72,500*127%= 90650

Beginning inventory of the component = 90650-(880,000-870,000) = 80,650

On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. Thenote requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The firstpayment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a:_____

Answers

Answer:

Credit to notes payable for $165000

Explanation:

Journal entries for issuance of Note Payable :

Cash Account ..... Debit $165000

7% Note payable Accounts .... Credit $165000

Note:

Note payable is a liability so it is credited as on date of issuance.

Now consider the case in which the manufacturer offers a marginal unit quantity discount for the plywood. The first 20,000 square feet of any order are sold at $1 per square foot, the next 20,000 square feet are sold at $0.98 per square foot, and any quantity larger than 40,000 square feet is sold for $0.96 per square foot. What is the optimal lot size for Prefab given this pricing structure? How much cycle inven

Answers

Answer:

Explanation:

We can use the following method to solve the given problem

We are given following

Annual demand,

D = 20000*12

D = 240,000 sqft

Fixed order cost, is given as

S = $ 400

Considering the unit cost, is given as

C = $ 1

Holding cost, H = 1*20% = $ 0.2

EOQ = sqrt(2DS/H)

= √(2*240000*400/0.2)

= 30,984 sq ft

This is higher than 20,000 and less than 40,000 sq ft. For this reason, the applicable price for this quantity is $ 0.98

For C = $ 0.98, holding cost, H = 0.98*20% = $ 0.196

Revised EOQ = sqrt(2*240000*400/0.196) = 31,298 sq ft

Total annual cost of EOQ policy = D*C + H*Q/2 + S*D/Q

= 240000*0.98 + 0.196*31298/2 + 400*240000/31298

= $ 241,334.5

Now consider the next level of price, C = $ 0.96

Holding cost, H = 0.96*20% = $ 0.192

EOQ = sqrt(2*240000*400/0.192)

= 31633 sqft

This amount is will not be feasible for this price, because it requires a minimum order of 40000 sqft.

Therefore, Q = 40,000

Total annual cost = 240000*0.96 + 0.192*40000/2 + 400*240000/40000

Total annual cost = $ 236,640

Total annual cost is lowest for order quantity of 40,000 sq ft.

1) Optimal lot size = 40,000 sq ft.

2) the annual cost of this policy

= $ 236,640

3) the cycle inventory of plywood at Prefab = Q/2 = 40000/2

At prefeb= 20,000 sq ft

4) let's assume the manufacturer sells all plywood at $ 0.96, then

Holding cost, H = 0.96*20%

H= $ 0.192

EOQ = sqrt(2*240000*400/0.192)

EOQ = 31633 sqft

Total annual cost = 240000*0.96 + 0.192*31633/2 + 400*240000/31633

Total annual cost = $ 236,471.6

Difference in total annual cost = 236640 - 236471.6 = $ 168.4

The FI Corporation’s dividends per share are expected to grow indefinitely by 5% per year. a. If this year’s year-end dividend is $8 and the required rate of return is 10% per year, what must the current stock price be according to the DDM? b. If the expected earnings per share are $12, what is the value of the ROE on the firm’s investment opportunities? c. How much is the market paying per share for growth opportunities?

Answers

Answer and Explanation:

The computation is shown below:

a. The current stock price is

As we know that

Current stock price = (Dividend) ÷ (Required rate of return - growth rate)

= ($8) ÷ ( 10% - 5%)

= $160

b. Now the value of the ROE on the firm’s investment opportunities is

Given that

Dividend  = $8

And,  

The payout ratio = Dividend ÷ Earning per share

                            = $8 ÷ $12

                            = 0.666666666666667

And, retention  ratio (b) is

= 1- 0.666666666666667

= 0.333333333333333

In addition to it

indefinite growth rate (g) = 5%

So, the ROE is

= Growth rate ÷ retention ratio

= 0.15 ÷ 0.3333

= 15%

c. And, the market paying per share is

PVGO = Price - Earning per share ÷ required rate of return

where,

PVGO = Present Value of Growth Opportunity

So, the market paying per share is

= $160 - $12 ÷ 10%

= $160 - $120

= $40

At the market price of​ $8, the quantity demanded is nothing ​units, and quantity supplied is nothing units. At this​ price, ▼ a surplus a shortage an equilibrium exists. At a market price of​ $4, ▼ an equilibrium a surplus a shortage now exists. The market equilibrium exists at a price of ​$ nothing. In​ equilibrium, the quantity demanded by consumers is ▼ greater than equal to less than to the quantity supplied by producers.

Answers

Answer:

The answer is explained in the explanation section below

Explanation:

Solution

(1)At the market price of $8, the  Demanded Quantity is 20 units per week , and the Quantity Supplied is 60 units.

(2)  At this price Surplus exists.

Economic Surplus is a is a situation in which the quantity supplied is higher than the quantity demanded. This situation is also referred to as excess supply.

(3) At price $4 there is an exist shortage

At price $4 The quantity Supplied is 20 units and the Quantity Demanded is 60 units respectively. hence, at price $4 Demand is higher/greater than Supply.

(4) At a price of $6 per unit, the market equilibrium exists

Market equilibrium is a situation when the Quantity Demanded of a commodity by the consumer is the same to the respective Quantity Supplied of that commodity by the producers.

(5) )Quantity Demanded by the consumers is equal to the quantity supplied by the producers. In the equilibrium

At price $4 per unit , the quantity supplied by the producers is  equal to 40 units and the quantity demanded by the consumers is equal to 40 units Thus the supplied quantity is equal to the  demanded quantity this point.

Firm 1 produces output X with a cost function C_1(X)=\frac{X^2}{200}. Firm 2 produces output Y with a cost function C_2(X,Y)=\frac{Y^2}{100}-2X. Both firms face competitive markets. The competitive price of X is 6 and the competitive price of Y is \$ 5. There is no entry or exit into this market. What is the socially optimal production of X?

Answers

Answer:

800

Explanation:

The objective here is to determine the socially optimal production of X.

For this to occur ; it is crucial that both firm must merge together.

Therefore; the Profit will be = Total revenue - Total Cost

From the question; the total revenue = 6X + 5Y ;     &

The total cost is : [tex]\dfrac{X^2}{200} + \dfrac{Y^2}{100} - 2X[/tex]

Now: The profit = [tex]6X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}-2X[/tex]

= [tex]8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}[/tex]

If the socially optimal production of X is the differential of the equation [tex]8X+5Y - \dfrac{X^2}{200}- \dfrac{Y^2}{100}[/tex]

(X) = [tex]8-\frac{2X}{200} =0[/tex]

= [tex]8-\frac{X}{100} =0[/tex]

= [tex]\dfrac{X}{100}=8[/tex]

= 800

Thus the social optimal production of X = 800

The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes _________.
O price and the profits of firms in the market to increase.
O price to decrease and the profits of firms in the market to increase.
O price to increase and the profits of firms in the market to decrease.
O price and the profits of firms in the market to decrease.

Answers

Answer:

C

Explanation:

The correct option is  C :price to increase and the profits of firms in the market to decrease

This can be explained by the fact that, since it always been mandatory to possess a license in order to work in a particular market. This certainly  reduces the competition in the market and thus, the prices would increase; therefore, as the firms have to pay for licence thus would reduce the profits of firm.

Consider a continuous operation in which raw tomatoes arrive to a processing unit in bulk. The tomatoes arrive at an average steady rate of 75 tons per hour from 8 a.m. to 1 p.m. every day. The processing begins as soon as the tomatoes start arriving, at 8 a.m. However, the processing unit can only process at a steady rate of 25 tons/hr. If need be, the processing unit can process for 24 hours a day. If tomatoes arrive when the processing unit is busy, a queue of inventory will form.
a. How many hours a day does the processing unit operate?
b. What is the maximum inventory of raw tomatoes?
c. What is the capacity utilization of the processing unit?
(Hint: This is equivalent to the fraction of a day the plant operates)
d. How long on average does a tomato stay in the queue?
(Hint: First calculate average inventory and average throughput for the entire time
the processing unit is operating. Then use little’s law to calculate CT.)

Answers

Answer:

15250 T62.5%5 h

Explanation:

a) The amount of tomatoes that arrive in the 5 hours between 8 a.m. and 1 p.m each day is ...

  (75 T/h)(5 h) = 375 T

Processing at the rate of 25 T/h takes ...

  (375 T)/(25 T/h) = 15 h

The processing unit must operate 15 hours per day to process the arriving tomatoes.

__

b) The arriving tomatoes are processed at the rate of 25 T/h, so the net addition to inventory from 8 a.m. to 1 p.m. is 75 -25 = 50 T/h. Over those 5 hours, an inventory accumulates in the amount of ...

  (50 T/h)(5 h) = 250 T

The maximum inventory of raw tomatoes is 250 tons.

__

c) The processing unit operates 15 hours of each 24-hour day, so is operating at 15/24 = 5/8 = 62.5% of capacity.

The capacity utilization of the processing unit is 62.5%.

__

d) Inventory both increases and decreases linearly, so the average inventory is half the peak inventory. Average inventory is 250/2 = 125 tons. This is processed at the rate of 25 T/h, so the amount of time the average tomato spends in inventory is ...

  (125 T)/(25 T/h) = 5 h

The average tomato stays in the queue 5 hours.

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 7% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 19%. The stock of Todd Mountain Development Corporation has a beta of 0.60. Using the constant-growth DDM, the intrinsic value of the stock is _________. Multiple Choice

Answers

Answer:

$60

Explanation:

r = return = Risk-free rate + [beta * (Portfolio expected return - Risk-free rate)] 0.04 + [0.60 * (0.19 − 0.04)] = 0.13

Intrinsic value = Next dividend / (r - Growth rate) = 3 / (0.13 - 0.08) = $60

Therefore, the intrinsic value of the stock of Todd Mountain Development Corporation is $60.

Which marketing function that involves communicating information about products
and services to potential customers?
a) Strategic planning
b) Promotion
c) Distribution
O d) Product development

Answers

The answer is distribution

Number of Days Past Due Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 15 $12,000 Bales Auto October 4 2,400 Derby Auto Repair June 26 3,900 Lucky's Auto Repair September 10 6,600 Pit Stop Auto September 24 1,100 Reliable Auto Repair July 2 9,750 Trident Auto August 25 1,800 Valley Repair & Tow May 23 4,000 Determine the number of days each account is past due as of October 31. Account Due Date Number of Days Past Due Avalanche Auto August 15 Bales Auto October 4 Derby Auto Repair June 26 Lucky's Auto Repair September 10 Pit Stop Auto September 24 Reliable Auto Repair July 2 Trident Auto August 25 Valley Repair & Tow May 23

Answers

Answer:

Check the explanation

Explanation:

Account                      Due Date                        Number of Days Past Due

Avalanche Auto          August 15                           (23+30+31)=84 days

Bales Auto                  October 4                                 20 days

Derby Auto Repair       September 24             (7+31+31+30+31)=130 days

Lucky's Auto Repair   September 24                       (28+31)=59 days

Pit Stop Auto              September 19                       (11+31)=42 days

Reliable Auto Repair      July 15                          (16+31+30+31)=108 days

Trident Auto                August 25                           (7+30+31)=68 days

Valley Repair & Tow       May 28          (14+30+31+31+30+31)=167 days

Scenario 28-1 Suppose that the Bureau of Labor Statistics reports that the entire adult population of Mankiwland can be categorized as follows: 25 million people employed, 3 million people unemployed, 1 million discouraged workers, and 1 million people who are either students, homemakers, retirees, or other people not seeking employment. Refer to Scenario 28-1. What is the unemployment rate?

Answers

Answer:

10.7%

Explanation:

Solution:

Recall that:

The Reports from Bureau of labor statistics is shown as follows:

Employed people = 25 million

Unemployed people = 3 million

Discouraged workers = 1 million

Workers or Homemakers or retirees, or students = 1 million

The next step from this scenario is to find out the unemployment rate

Now,

The rate of unemployed =  (unemployed x 100 ) / labor force

= 300/28

=10.7%

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

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

Check attachment for the table

Lee is considering buying one of two newlyminusissued bonds. Bond A is a twentyminus​year, ​7.5% coupon bond that is nonminuscallable. Bond B is a twentyminus​year, ​8.25% bond that is callable after two years. Both bonds are comparable in all other aspects. Lee plans on holding his bond to maturity. What should Lee do if he feels that interest rates are going to decline by​ 2% in the near future and then remain relatively stable​ thereafter?

Answers

Answer:

Bond A will be purchased

Explanation:

He will purchase Bond A, since the 20-year interest payments are fixed guaranteed and can not be named called. When he buys bond B, after 2 years the corporation will actually call the bond, as it would be easier to call the bond and issue a new bond at a lesser interest rate.

When a bond is named it means the issuer takes the bond back and charges the holder the bond's face value (what the initial purchaser paid for it)

In some industries, competitive dynamics eventually drive long-run projections of the future returns earned by the firm to an equilibrium level equal to the long-run expected cost of equity capital in the firm. At that point, a firm can be expected to earn ____________ residual income in the future. increasing. zero. decreasing. There is not enough information to answer this question.

Answers

Answer:Zero

Explanation:

Residual income is stated as the excess income part estimation that is left after calculation of all debts and expenses with firm or industry following minimum return of equity is paid.

According to the question,long run projections tend to produce zero residual income as it reaches to that particular point of equilibrium level towards the long period in amount of equity capital. Rather continuing growth rate should be chosen as it tends to produce increase or decrease in residual income.

Other options are incorrect because increasing residual income and decrease residual income cannot be expected from firm. There is appropriate amount of information present in question. Thus, the correct answer is zero.

c. Assume that neither country experiences population growth or technological progress and that 6 percent of capital depreciates each year. Assume further that country A saves 15 percent of output each year and country B saves 23 percent of output each year. Using your answer from part b and the steady-state condition that investment equals depreciation, find the steady-state level of capital per worker (k∗) , income per worker (y∗) , and consumption per worker (c∗) for each country.

Answers

Answer:

Check Explanation.

Explanation:

Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.

Thus Y/L = b; b = k^1/2 L^1/2/ L.

b = k^1/2.

From the question we are given that L = 6% = 0.06.

Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.

For country A,

(a). the steady state;

∆k = 0 = y - dk.

0 = 0.15 × k^1/2 - 0.06k.

K^1/2 = 2.5, k* = 6.25

(b). y = K^1/2 = (6.25)^1/2.

y* = 2.5

(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.

C* = 2.125.

Then, for COUNTRY B.

(a). ∆k = 0 = y - dk.

0 = 0.25 × k^1/2 - 0.06k.

K^1/2 = 4.167, k* = 17.36

(b). y = K^1/2 = (17.36)^1/2.

y* = 4.167.

(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.

C* = 3.127.

C* = 2.125.

Which of the following statement is true? a. ​The demand for puma shoes is more elastic than the demand for shoes b. ​The demand for Cheerios is less elastic than the demand for cereal c. ​Products with many complements have a more elastic demand d. ​The demand for gas is more elastic in the short-run than in the long-r

Answers

Answer:

a. ​The demand for puma shoes is more elastic than the demand for shoes.

Explanation:

Price elasticity of demand refers to the degree of change in the desire to buy something when there arises a change in the price of the commodity. With the increase in the price of the commodity, the desire to buy the commodity decreases. The first statement is true among the given four statements. The demand for puma shoes is subjected to the price of it. While the demand for normal shoes can be kept under the basic requirement which is not elastic.

Bannister Co. is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing 1,000 units follows: Direct material $ 45,000 Direct labor 30,000 Factory overhead (30% is variable) 98,000 If Bannister can buy 1,000 units from an outside supplier for $100,000, it should: Multiple Choice Make the product because current factory overhead is less than $100,000. Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000. Buy the product because the total incremental costs of manufacturing are greater than $100,000. Buy the product because total fixed and variable manufacturing costs are greater than $100,000. Make the product because factory overhead is a sunk cost.

Answers

Answer:

Buy the product because the total incremental costs of manufacturing are greater than $100,000.

Explanation:

Relevant cost of making the product = 45000 +30,000 + (30%× 98,000)

                                                          =$ 104,400

Cost of buying the product = $100,000

Difference in cost = 104,400- $100,000 =  $4,400.

Note the balance of 70% of the fixed manufacturing overhead id is a sunk cost which would be incurred which ever decision is taken.

The incremental cost of making is greater the cost of buying by $4,400. To buy from the outside supplier would mean Bannister Co saving $4,400

On January 1, 2019, Broker Corp. issued $2,200,000 par value 9%, 9-year bonds which pay interest each December 31. If the market rate of interest was 11%, what was the issue price of the bonds? (The present value factor for $1 in 9 periods at 9% is 0.4604 and at 11% is 0.3909. The present value of an annuity of $1 factor for 9 periods at 9% is 5.9952 and at 11% is 5.5370.)

Answers

Answer:

$ 1,956,306.00  

Explanation:

The issue price of the bonds issued is the present  value of all cash flows promised by the bonds  discounted using the market interest rate of 11%.

The cash flows which comprise of annual coupon payment for nine years as well as the repayment of the face value at the end of the ninth year as computed thus:

annual coupon payment=face value*coupon rate=$2,200,000*9%=$198,000.00  

The present value of $198,000 for nine years= 198,000*5.5370=$ 1,096,326

The present of $2,200,000 at the end of nine years=0.3909*2,200,000=$ 859,980.00  

Total present values=$ 859,980+$ 1,096,326=$1,956,306.00  

Using the following accounts and an overhead rate of 140% of direct labor cost, compute the amount of applied overhead. Work in Process Inventory Beginning WIP 35,100 Direct materials 57,200 Direct labor ? Factory Overhead ? To Finished Goods 213,300 Ending WIP 25,100 Finished Goods Inventory Beginning FG 5,100 Cost of Goods Mfg'd 213,300

Answers

Answer:

$85,225

Explanation:

The computation of the applied overhead is shown below:

Let us assume that the Direct labor be X

And, the factory overhead be 1.4X

As we know that

Cost of goods manufactured = Beginning work in process + direct material + direct labor + factory overhead - ending work in process

$213,300 = $35,100 + $57,200 + X + 1.4X - $25,100

$213,300 = $67,200 + 2.4X

$146,100 = 2.4X

X = $60,875

And, the factory overhead is

= $60,875 × 1.4

= $85,225

hence, the applied overhead is $85,225

The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio.

Answers

Answer:

a) Current ratio for Kansas company is  1.475

Current ratio for Montana company is 1.814

b) Since the current ratio for the Montana company is more than that of the Kansas company which shows better liquidity, the Montana company has the greater likelihood of being able to pay its bills.

c) Kansas company would produce the higher return-on-assets ratio.

Explanation:

                                    Current Assets           Current liabilities

Kansas Company           $ 59,000                     $ 40,000

Montana Company        $ 78,000                      $ 43,000

a) To calculate the current ratio of A company

Current ratio = [tex]\frac{Current Assets}{Current Liabilities}[/tex]

Therefore current ratio for Kansas company = $ 59,000 ÷ $ 40,000 = 1.475

Current ratio for Montana company =  $ 78,000 ÷ $ 43,000 = 1.814

Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $1,100,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Inventory at Current Date Current Prices Price Index December 31, 2020 $1,284,000 1.07 December 31, 2021 1,450,000 1.25 December 31, 2022 1,625,000 1.30 What is the cost of the ending inventory at December 31, 2020 under dollar-value LIFO?

Answers

Answer:

$1,281,200

Explanation:

Gross Corporation

Ending inventory

2019 1100000

2020 1284000/1.07 = 1200000

Ending Inventory(1100000+100000*1.07) = 1207000

2021 1450000/1.25 = 1160000

Ending inventory(1100000+60000*1.07) = 1164200

2022 1625000/1.30 = 1250000

Ending inventory(1164200+90000*1.30) = $1281200

Therefore the cost of the ending inventory at December 31, 2020 under dollar-value LIFO will be $1,281,200

Mercredi, Inc., is considering investing in automated equipment with a ten-year useful life. Managers at Highpoint have estimated the cash flows associated with the tangible costs and benefits of automation, but have been unable to estimate the cash flows associated with the intangible benefits. Using the company's 14% required rate of return, the net present value of the cash flows associated with just the tangible costs and benefits is a negative $182,560. How large would the annual net cash inflows from the intangible benefits have to be to make this a financially acceptable investment? (Ignore income taxes.)

Answers

Answer:

$35,000

Explanation:

The computation of the annual net cash inflows from the intangible benefits is shown below:

= Tangibles cost and benefits ÷ PVIFA factor at 14% for 10 years

= $182,560 ÷ 5.2161

= $35,000

Refer to the PVIFA table

We simply divided the tangible cost from the PVIFA factor so that the correct amount could come

On January 2, 2018, Baltimore Company purchased 20,000 shares of the stock of Towson Company at $13 per share. Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $25,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $65,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $23 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)

Answers

Answer:

$344,000

Explanation:

The computation of value of investment is shown below:-

Initial Cost of investments         $260,000

(20,000 shares × $13)

Add: Share of profit                     $22,750

($65,000 × 35%)

Add: Increase in equity

reserves                                     $70,000

(($23 - $13) × 20,000 × 35%)

Less: Dividends received            $8,750

($25,000 × 35%)

Value of investment                    $344,000

Therefore the value of investment is $344,000

Consider the following estimates from the early 2010s of shares of income to each group.   Country Poorest​ 40% Next​ 30% Richest​ 30% Bolivia 10 25 65 Chile 10 20 70 Uruguay 20 30 50 ​1.) Using the​ 4-point curved line drawing tool​, plot the Lorenz curve for Bolivia. Properly label your curve. ​2.) Using the​ 4-point curved line drawing tool​, plot the Lorenz curve for Uruguay. Properly label your curve. Carefully follow the instructions​ above, and only draw the required objects.   Which country has the most nearly equal income​ distribution?   ▼ Chile Uruguay Bolivia .

Answers

Answer:

Check the explanation

Explanation:

Kindly check the attached images below to see the step by step explanation to the question above.

Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 6420 units. Additional information is as follows: Variable product cost per unit $ 23​ Variable administrative cost per unit 25​ Total fixed overhead 46,500​ Total fixed administrative 30,540​ Using the total cost method what price should Galla charge?

Answers

Answer:

The price Galla should charge is $75

Explanation:

Solution

Now

The total cost = variable product cost + variable administrative cost + fixed overhead + fixed administrative

= ($23 * 6,420) + ($25 * 6,420) + $46,500 + $30,540

= $147,660 + $160,500 + $46,500 + $30,540

= $385,200

Thus,

The total cost per unit = Total cost / units

= $385,200 / 6,420 units

= $60

Hence

The selling price should charge = Cost per unit * 1.25

= $60 * 1.25

= $75

Rebel Sound Inc. produced 30,000 audio devices last month. Rebel started the month with $10,000 worth of inventory in Finished Goods. The company incurred $15,000 of various utility and rent charges on their factory, paid $50,000 for raw materials to use in production, and paid employees $60,000 in wages.

During the month, inventory costing $120,000 was completed and transferred to the Finished Goods Inventory. At the end of the month, Rebel had $5,000 of Inventory in Finished Goods, $6,000 in Materials Inventory, and $24,000 still in Work in Process.

Required:

1. What was Rebel Sound Inc Cost of Goods Manufactured for the month?

Answers

Answer:

Cost of goods manufactured is $ 101,000 for the month

Explanation:

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Cost of Goods Manufactured:

$

Work in process inventory, beginning $ -

Direct materials:

Direct Material Used $ 60,000

Direct labor $ 15,000

Factory overhead Applied $ 50,000

Total manufacturing costs $125,000

Total work in process during period $125,000

Work in process inventory, ending $ -24,000

Cost of goods manufactured $ 101,000

Suppose the top five firms in a market have market shares of 23%,12%,8%, 7% and 5% respectively. The remaining 45 firms in the market each have a market share of 1%. Would the FTC be likely to approve a merger between the top two firms in this market?

Answers

Answer: Yes, The FTC will approve the merger.

Explanation:

The Herfindahl-Hirschman Index (HHI) is the common measure of market concentration used to determine market competitiveness. The HHI is calculated by the squaring of the market share of every firm competing in the market and then adding the resulting numbers

HHI (before the merger)

= 23² + 12² + 8² + 7² + 5² + 45 × 1²

= 529 + 144 + 64 + 49 + 25 + 45

= 856

HHI (after the merger) = (23 + 12)²

8² + 7² + 5² + 45 × 1² = 1408

Here, the market is less concentrated and the HHI is still below 1500 after the merger. Therefore, FTC will approve this merger. The answer is Yes.

On December 12, 2021, an investment in equity securities costing $77,000 was sold for $94,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)

Answers

Answer:

1.

Dr. Investment Account $17,000

Cr. Gain on Sale             $17,000

2.

Dr. retained Earning      $17,000

Cr. Gain on Sale             $17,000

Explanation:

1.

If an assets is sold more than the book value, then there is a gain on the sales of asset.

Gain on Sale = Sales Proceeds - Book value of Investment = $94,000 - $77,000 = $17,000

As sales proceeds of $94,000 are credited in the Investment account, which needs to be credited by $77,000 only. The excessive amount of $17,000 should be recorded in the Gain on sale account.

2.

Error is not discovered until 2022 and earning for 2021 was transferred to retained earning. So, adjustment should me made in the retained earnings to eliminate the effect.

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