Answer:
$18,000
Explanation:
The computation of overall effect on the company's monthly net operating income is shown below:-
Current Proposed
Sales $800,000 $837,000
(200 × 4000) (200 - 14) × (4,000 + 500)
Variable expenses $160,000 $180,000
(40 × 4000) (40 × (4,000 + 500))
Contribution margin $640,000 $657,000
Fixed expenses $531000 $566,000
($531,000 + $35,000)
Net operating
income $109,000 $91,000
Decrease in net operating income = Current - Proposed
= $109,000 - $91,000
= $18,000
So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.
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.
Be sure that your Learning Journal entry is a minimum of 500 words.
Answer: The answer is provided below.
Explanation:
The following are my SMART goals:-
Specific
1. I want to be physically fit within 5 months so as to be able to run a marathon in less than 2 hours.
2. I want to become a head of department in my current organization from my current position as a junior staff within the next 4 years in order to be able lead a team.
3. I want to become an amazing and better husband to my wife through spending more quality time with her.
4. I want to become a better father to my children by spending time with them and helping them with their school works.
Measurable
1. I would start my training from the following week. I would begin by running 3 to 5 kilometers with walk breaks.
2. I would talk to my boss next week and request for more responsibilities and also to ask him the requirements neccesary to get promoted.
3. I would come back from office early and spend time with my wife.
4. I would come early from work and spend my weekends together with my children.
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 head of departments about how they were promoted.
3. I will talk to other husbands that are successful.
4. I will talk to other dads to know whether my goal is attainable.
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
There should also be an economic logic that is binding this.
Never Forget Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $320,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project?
Answer:
The amount that should be used as the initial cash flow for this project is $1,350,000
Explanation:
The amount to be used as the initial cash flow for the project comprises of estimated building cost of $1.03 million and the market worth of the lot now.
The cost six years ago of $278,000,the cost of leveling as well as the cost of installing the storm drains were long ago time and are not relevant now.
In a nutshell the cost of the new project is $1,350,000($1,030,000+$320,0000)
You pay $20,800 to the Laramie Fund which has a NAV of $18.00 per share at the beginning of the year. The fund deducted a front-end load of 3.00%. The securities in the fund increased in value by 12% during the year. The fund's expense ratio is 1.50% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year
Answer:
6.92%
Explanation:
Beginning investment fund is $20,800.
Now, fund available= Beginning fund(1-front end load)
=20,800(1-0.03)=$20176
Now, the number of shares that can be brought with the available fund
[tex}\text{Number of shares}=\frac{\text{fund available}}{NAV_{beginning}}[/tex]
[tex]=\frac{20176}{18}[/tex]
=1120
Now calculating closing NAV
NAV(closing)=NAV(beginning)=(1+increased%)
=$18(1+12%)=18×1.12
=$20.16
Calculate year end asset value
Year end asset value =NAV(closing)×No. of shares
=$20.16×1120=$22579.2
Value of investment after deducting the expense ratio
Closing investment value = Year end asset value×(1-expense ratio)
=$22579.2×(1-1.5%)
=$22240.512
Now,
Return on the fund =[(closing investment value)-(Beginning investment fund)]÷Beginning investment fund
=(22240.512-20800)÷20800
=0.0692
or, 6.92%
The president of Ravens Inc. attended a seminar about the contribution margin model and returned to her company full of enthusiasm about it. She requested that last year’s traditional model income statement be revised, and she received the following report: Division Total Company A B C Sales $ 484,000 $ 188,000 $ 128,000 $ 168,000 Variable expenses 268,000 112,000 66,000 90,000 Contribution margin $ 216,000 $ 76,000 $ 62,000 $ 78,000 Fixed expenses 172,000 54,000 68,000 50,000 Net income (loss) $ 44,000 $ 22,000 $ (6,000 ) $ 28,000 The president was told that the fixed expenses of $172,000 included $94,500 that had been split evenly between divisions because they were general corporate expenses. After looking at the statement, the president exclaimed, "I knew it! Division B is a drag on the whole company. Close it down!"
Evaluate the President's remark.
Answer and Explanation:
a. The president remark in case of the allocated fixed expenses should be ignored the misleading result as it is seen that the division B has suffered a loss of $6,000 due to which the president exclaimed "I knew it!.
Moreover the president ignored the given information i.e $172,000 included $94,500 that had been split evenly between divisions as they are classified as a general corporate expenses
So if it is split evenly the general corporate expenses for division B is $31,500 which is come from by dividing the $94,500 from 3 divisions
And if we do not allocated the expenses so all divisions would come in profit
During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method
Answer:
Cost per equivalent unit of materials = $3.16
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Cost per equivalent unit = cost / total equivalent units
Total units completed and transferred out= 18,000 + 90000= 108,000
Items Unit Equivalent unit
Completed units 108,000 100% × 108,000 = 108,000
Closing inventory 30,000 100% × 30,000 = 30,000
Total equivalent unit of material 138,000
Cost per equivalent unit = Total cost/Total equivalent unit
= (107,000 + 329,000) /138,000 units
= $3.16
Okun's law states that
a. a change in the output gap occurs with a change in the rate of unemployment that is smaller in magnitude and in the opposite direction.
b. a change in the output gap occurs with a change in the rate of unemployment that is larger in magnitude and in the opposite direction.
c. inflation causes a decrease in the value of money held by the public.
d. the government may temporarily suspend citizens' rights during periods of hyperinflation in an attempt to maintain security and stability.
Answer:
C, I think is the answer.
Explanation:
The Nandina Corporation was formed and began operations on July 1, 2018, and incurred the following expenses during the year: State fees for incorporation $800 Legal and accounting fees incident to organization 1,500 Legal fees for the issuance of stock 600 Temporary directors’ fees 1,000 If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2018?
Answer:
$110.00
Explanation:
Nandina Corporation
The amount of amortization expenses for 2018
State fees for incorporation $800
Legal and accounting fees incident to organization 1,500
Temporary directors’ fees 1,000
Total $3,300
Hence:
$3,300/180 months x 6 months
= $110.00
Therefore the amount of its amortization expense for 2018 will be $110.00
On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31, Year 1. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Journalize the entries for the issuance of the note and the four annual note payments. Describe how the annual note payment would be reported in the Year 1 income statement.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) The amortization schedule is presented on the attachment below:
2).
Journal Entry
1 Jan Cash A/c Dr. $147,750
To Notes payable A/c $147,750
(Being the cash received is recorded)
31 Dec Interest expense A/c Dr. $10,342.50
Notes payable A/c $33,277.50
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $8,013.08
Notes payable A/c $33,606.93
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $5,520.59
Notes payable A/c $38,099.41
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $2,853.83
Notes payable A/c $40,766.17
To Cash A/c $43,620
(Being the annual payment of installment including interest and setting off liabilities is recorded)
3).
Bryson Company
Income Statement
Particular Amount ($)
Revenue -
Expenses
Less - Interest expense 10,342.50
Less - Other expenses -
Net Income -
On November 1, 2018, Green Valley Farm entered into a contract to buy a $150,000 harvester from John Deere. The contract required Green Valley Farm to pay $150,000 in advance on November 1, 2018. The harvester (cost of $110,000) was delivered on November 30, 2018. The journal entry to record the contract on November 1, 2018 includes a Group of answer choices a) credit to Accounts Receivable for $150,000 b) credit to Sales Revenue for $150,000. c) credit to Unearned Sales Revenue for $150,000. d) debit to Unearned Sales Revenue for $150,000.
Answer:
d) debit to Unearned Sales Revenue for $150,000
Explanation:
Green Valley Farm Journal entry
Dr Unearned Sales Revenue 150,000
Cr Sales Revenue150,000
Dr Cost of Goods Sold 110,000
Cr Inventory110,000
Therefore the journal entry to record the contract on November 1, 2018 is debit to Unearned Sales Revenue for $150,000
Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 6 million $2 4 million $1 Year 2017 8 million $3 6 million $2 a. $22 million. b. $26 million c. $16 million. d. $36 million.
Answer:
Option (a).
Explanation:
According to the scenario, computation of the given data are as follow:-
Real GDP = Base Year Price × Current Year Quantity
Real GDP in 2016= $2 × 6 million + $1 × 4 million
= $12 million + $4 million = $16 million
Real GDP in 2017 = $2 × 8 million + $1 × 6 million
= $16 million + $6 million = $22 million
According to the analysis, the real GDP in 2017 is $22 million. So (a) option is correct.
On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and 6,000 shares of 10% cumulative preferred stock ($100 par), convertible into 60,000 common shares.
On October 1, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $37. At December 31, 2021, there were 22,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44.
Net income was $940,000. The tax rate for the year was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands.)
Answer:
842,000 shares
Explanation:
Please the solution to the given problem in the file attached below
Answer:
Basic EPS = $1.82
Diluted EPS = $1.72
Explanation:
The picture attached herewith shows the calculation to the problem and it is so explanatory.
Teel Printing uses two measures of activity, press runs, and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $7,850 per month plus $402 per press run plus $952 per book set-up. The company expected its activity in July to be 206 press runs and 113 book set-ups, but the actual activity was 203 press runs and 112 book set-ups. The actual cost for wages and salaries in July was $196,180.
The spending variance for wages and salaries in July would be closest to
Answer:
Spending variance $100 unfavorable
Explanation:
The spending variance is the difference between the standard cost allowed for the actual activity and the actual cost of the activity
$
Standard cost allowed for the actual activity
=7,850 + (402×203) + (952×112)= 196,080
Actual cost 196,180
Spending variance 100 unfavorable
g Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. If an amount box does not require an entry, leave it blank. Apr. 30 b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31
Answer:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
Explanation:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. According to the given data, the carpet is estimated to have a 15-year useful life and no residual value, therefore the December 31 adjusting entry for the partial-year depreciation expense for the carpet would be to debit Depreciation expense - carpet for $800 and to credit Accumulated depreciation- carpet for $800.
The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be
Answer:
The budgeted cost of goods sold for June would be $ 13,320,000
Explanation:
Budgeted cost per unit = $30
Sales budget = 370,000 units
Less: Beginning inventory = 86,000 units
Add: Ending inventory = 160,000 units
Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30
= 444,000 × $30
= $13,320,000
Barbara's Bakery purchased three new 7-year assets during the current year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current year
Answer:
Depreciation in Current year is $14,939
Explanation:
Answer:
I think it is 4748. If it asks second year, it will be 16072.
Explanation:
Furnishings...in April, second quarter:
15,000x17.85%=2677.5
Equipment...in July, third quarter:
6,000x10.71%=642.6
Appliances...in November, fourth quarter
40,000x3.57%=1428
Total: 2677.5+642.6+1428=4748
In January 2020, Sunland Company, a newly formed company, issued 10300 shares of its $8 par common stock for $13 per share. On July 1, 2020, Sunland Company reacquired 1030 shares of its outstanding stock for $10 per share. The acquisition of these treasury shares decreased total stockholders' equity. increased total stockholders' equity. did not change total stockholders' equity. decreased the number of issued shares.
Answer:
The correct option is the acquisition of these treasury shares decreased total stockholders' equity.
Explanation:
Initially the total stockholders' equity is $133,900 ($13*10,300) which comprised of $82,400 common stock ($8*10,300) $51,500 paid in capital in capital in excess of par value.
By repurchasing 1,030 treasury stock at $10,the total stockholders' equity decrease by $10,300,which leaves a balance of $123,600 ($133,900-$10,300).
In other words,the first option is the correct choice of answer
Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)
Answer:
$360
Explanation:
The computation of the depreciation deduction during the first year is shown below:
= Basis of the camera × given percentage × weightage
= $3,000 × 60% × 20%
= $360
Since the 60% is used for business and 40% used for personal
And there is a recovery period of assets of 5 years so half year convention period applies
On December 31, Westworld Inc. has the following equity accounts and balances: Retained Earnings, $50,500; Common Stock, $2,100; Treasury Stock, $3,100; Paid-In Capital in Excess of Par Value, Common Stock, $40,100; Preferred Stock, $8,100; and Paid-In Capital in Excess of Par Value, Preferred Stock, $4,100. Prepare the stockholders’ equity section of Westworld’s balance sheet. (Negative amount(s) should be indicated by a minus sign.)
Answer:
$101,800
Explanation:
Westworld Inc.
Stockholder's equity section
Paid in the capital:
Particulars Amount Amount
Common stock $2,100
Additional paid-in capital in excess of par value-Common stock $40,100
Total$42,200
Preferred Stock $8,100
Additional paid-in capital in excess of par value-Preferred Stock $4,100
Total $12,200
Total Paid-in capital $54,400
($42,200+$12,200)
Retained earnings $50,500
Total Paid-in capital and Retained earnings $104,900
($54,400+$50,500)
Less: Treasury stock $-3,100
Total Stockholder's equity $101,800
The value of the total stockholder's equity will be $101800.
The stockholders’ equity section of Westworld’s balance sheet will be calculated thus:
Common stock = $2100Add: Additional paid in capital = $40100Add: Preferred stock = $8100Add: Additional paid in capital for preferred stock = $4100Add: Retained earnings = $50500Less: Treasury stock = $3100Total stockholders equity = $101800Read related link on:
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Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.
What is the slope of Japan’s short-run Phillips curve?
a. Steep downward slopeb. Flat downward slopec. Steep upward sloped. Flat upward slopee. Verticalf. Horizontal
Answer:
Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.
What is the slope of Japan’s short-run Phillips curve?
Option B is the correct answer.
Explanation:
The slope of Japan’s short-run Phillips curve will be a flat downward slope because "it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate".
Therefore, option B is the correct answer.
Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays.
In 2017 Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.
The following information is available to use in deciding whether to purchase the new backhoes.
Old Backhoes New Backhoes
Purchase cost when new $90,000 $200,000
Salvage value now $42,000
Investment in major overhaul needed in next year $55,000
Salvage value in 8 years $15,000 $90,000
Remaining life 8 years 8 years
Net cash flow generated each year $30,425 $43,900
Required:
1. Evaluate in the following ways whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)
a. Using the net present value method for buying new or keeping the old
b. Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.)
c. Comparing the profitability index for each choice.
d. Calculate the internal rate of return for the new and old blackhoes.
e. Comparing the internal rate of return for each choice to the required 8% discount rate.
Answer:
Explanation:
Base on the scenario been described in the question,Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want any specific sub-part to be answered then please submit that sub-part only or specify the question number in your message.
2
Compute the net present value to make decision for buying the new Backhoes or keeping the old:
We can fine the calculations in the file attached below
Company A sells paper coffee cups to all Caribou Coffee locations in the US. Company B sells dinner plates to Applebee’s. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.
Answer:
Company A and Company B
Determination of annual revenue:
a) The information needed to determine which company has higher annual revenue include:
i) The annual quantities of packs of paper coffee cups sold to the Caribou Coffee locations in the US for a number of years.
ii) The annual quantities of dinner plates sold to Applebee's for the same years as above.
b) The annual revenues can be calculated by multiplying the price for a pack of 100 cups by the annual quantity sold.
Explanation:
Revenue is a function of price and quantity sold. The price is unit selling price and the quantity depends on the period for which revenue is being computed.
Revenue is the earnings from the sale of goods and services. The excess of revenue over cost of sales gives the gross profit, from which expenses would be deducted to arrive at net income after adding other incomes from non-operational activities.
Gratuities: A customer has a large sailing yacht on a vessel that your company will be discharging. The customer is present and is watching the off-loading operation. The five stevedores you manage pull off a very tricky maneuver, safely transferring the yacht to the trailer. The customer is elated, and reaches into his pocket, pulling out a big wad of $50 bills. What do you do?
Answer:
The answer is "Shifting".
Explanation:
Some information, that is choices is missing in the question so that the correct option can be identified as follows:
We assume, that the company is doing, as per the given scenario, it set out from the Query, the Market of Packers, and adjusting operation involving shifts to one position of industrial vehicles.
The Refining Department of SweetBeet, Inc. had 79,000 tons of sugar to account for in July. Of the 79,000 tons, 49,000 tons were completed and transferred to the Boiling Department, and the remaining 30,000 tons were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted-average method is used. Calculate the total equivalent units of production for direct materials.
Answer:
79,000 tons
Explanation:
When you use the weighted average method for determining equivalent units, the total number of equivalent units = units completed and transferred out + equivalent units in ending inventory.
In this case, since the materials are added at the beginning of the production process, all the units are 100% complete regarding direct materials.
Apple Inc. designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod) and mobile phones (iPhone) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Apple: Property, Plant, and Equipment (in millions): Current Year Preceding Year Land and buildings $ 6,956 $ 4,863 Machinery, equipment, and internal-use software 37,038 29,639 Other fixed assets 5,263 4,513 Accumulated depreciation and amortization (26,786) (18,391)
a. Compute the book value of the fixed assets for the current year and the preceding year. Current year book value (in millions) $ Preceding year book value (in millions) $ A comparison of the book values of the current and preceding years indicates that they increased . A comparison of the total cost and accumulated depreciation reveals that Apple purchased $ million of additional fixed assets, which was offset by the additional depreciation expense of $ million taken during the current year.
b. Would you normally expect Apple's book value of fixed assets to increase or decrease during the year?
Answer:
Explanation:
current year($) preceeding year($)
Land and building 6956 4863
Machinery ,equipment 37038 29639
internal-use software
Other fixed asset 5263 4513
Total asset 49257 39015
less:Accumulated depreciation -26786 -18391
and amortization
Book value 22471 20624
Additional fixed asset purchased : 49257 - 39015 = 10242 million
Depreciation : 26786 - 18391 = 8395
b) It is generally expected that apple fixed asset will increase as it requires latest fixed asset and technology for its manufacturing process.
On January 2, 2020, Concord Corporation replaced its boiler with a more efficient one. The following information was available on that date: Purchase price of new boiler $140500 Carrying amount of old boiler 8500 Fair value of old boiler 3200 Installation cost of new boiler 21600 The old boiler was sold for $3200. What amount should Concord capitalize as the cost of the new boiler
Answer:
The amount that Concord should capitalize as the cost of the new boiler is $162,100
Explanation:
Solution
Recall that:
The price of purchasing a new boiler = $140500
The amount of old boiler = 8500
The cost of installation of new boiler = $21600
Old boiler sold for = $3200
Now,
The Cost of New Boiler = Purchase Price of new boiler + Installation cost of new boiler
= $140500 + 21600
= $162,100
Lidell Inc. budgeted production of 48,000 personal journals in 20Y6. Each journal requires assembly. Assume that three minutes are required to assemble each journal. If assembly labor costs $13 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.
Answer:
Direct labor cost= $31,200
Explanation:
Giving the following information:
Production= 48,000 units
Standard time= 3 minutes per unit
Rate= $13 per hour
First, we need to calculate the number of hours required:
The proportion of minuted per hour= 3/60= 0.05
Number of hours= 48,000*0.05= 2,400 hours
Now, the direct labor cost:
Direct labor cost= 2,400*13= $31,200
Whiplash Ltd. makes a single product and only one type of direct material is used to make this product. Whiplash uses a standard costing system and has provided the following data concerning the production of output in July: Actual number of units of output produced 7,800 units Materials quantity variance $2,609 Favorable (F) Materials spending variance $3,744 Favorable (F) Standard amount of materials used per unit of output 5.0 grams per unit Actual total materials purchased/used 37,830 grams Actual price per gram purchased/used $2.20 per gram Assume there were no beginning or ending inventories of direct materials. The standard price per gram for Whiplash, Ltd. is closest to:
Answer:
$2 per gram.
Explanation:
We are given the following parameters in the question above; the production of output in July: Actual number of units of output produced = 7,800 units, the Materials quantity variance = $2,609, the favorable (F) Materials spending variance = $3,744, the Favorable (F) Standard amount of materials used per unit of output = 5.0 grams per unit , the Actual total materials purchased/used = 37,830 grams and the Actual price per gram purchased/used = $2.20 per gram.
(37,830 × standard price) - (37,830 × 2.2 ) =$3,744.
Thus, (37,830 × standard price) = 79482.
Approximately, standard price = $2 per gram
Answer:
The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram
Explanation:
In order to calculate the The standard price per gram for Whiplash, Ltd we would have to use the following formula:
Material quantity variance=(standard quantity-Actual quantity)×standard price
$2,609=(5 grams×7,800-37,830)×standard price
$2,609=(39,000-37,830)×standard price
$2,609=1,170 grams×standard price
standard price=$2,609/1,170 grams
standard price=$2.23 per gram
The standard price per gram for Whiplash, Ltd. is closest to $2.23 per gram
Early in 2021, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2021 at a cost of $36 million. Of this amount, $24 million was spent before technological feasibility was established. Excalibur expects a useful life of five years for the new product with total revenues of $60 million. During 2022, revenue of $18 million was recognized. Required: 1. Prepare a journal entry to record the 2021 development costs. 2. Calculate the required amortization for 2022. 3. Determine the amount to report for the computer software costs in the December 31, 2022, balance sheet.
Answer:
Dr research and development expense $24,000,000
Dr computer software costs $12,000,000
Cr Cash $36,000,000
Amortization is $3,600,000
Balance sheet balance in 2022 is $8,400,000
Explanation:
The cash of $36 million spent would be credited to cash account as an outflow of cash while $24 million would be debited to research and development expense account with the balance of $12 debited to computer software costs as asset
amortization for 2022=cost of software*revenue in 2022/total estimated revenue=$12,000,000*$18,000,000/$60,000,000=$3,600,00
Amount of computer software at 31 December 2022=$12,000,000-$3,600,000=$ 8,400,000
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1; materials 100% complete;conversion 90% complete 76,000Pounds started into production during May 410,000Pounds completed and transferred out ?Pounds in process, May 31; materials 60% complete;conversion 40% complete 36,000Cost data: Work in process inventory, May 1: Materials cost$117,900Conversion cost$53,600Cost added during May: Materials cost$613,080Conversion cost$294,700 Required:1. Compute the equivalent units of production for materials and conversion for May.2. Compute the cost per equivalent unit for materials and conversion for May.3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.5. Prepare a cost reconciliation report for May.
Answer:
1.Total Equivalent Units Materials 471,600 Conversion 464,400
2. Cost Per Equivalent Unit Materials $ 1.33 Conversion $ 0.75
3. Cost of Ending Work In Process $ 39528
4. Cost Of Units Transferred Out = $ 936,000
5. Cost Materials $ 627 228 and Conversion $348,300
Explanation:
Builder Products, Inc.,
Weighted-Average Method
1. Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Transferred Out 450000 100 100 450,000 450,000
Ending WIP 36000 60 40 21,600 14,400
Total Equivalent Units 471,600 464,400
Transferred Out units are calculated by adding Opening Inventory and production started and subtracting ending inventory units.
Transferred Out units = Opening Inventory+ production started -ending inventory units
Transferred Out units =76,000 + 410,00 - 36000= 450000 units.
2. Cost Per Equivalent Units
Materials Conversion
Cost Of Opening Inventory 117,900 53600
Cost Added 613,080 294,700
Total Costs 624,980 348,300
Equivalent Units 471,600 464,400
Cost per Equivalent Unit 624980/471600 348300/464400
$ 1.33 $ 0.75
3. Cost of Ending Work In Process $ 39528
Materials = 21600 * $ 1.33= $ 28728
Conversion = 14400 * $ 0.75= $10800
We multiply the equivalent number of units with the cost per unit to find the cost.
4. Cost Of Units Transferred Out = $ 936,000
Materials = 450 000 * $ 1.33= $ 598,500
Conversion = 450000 * $ 0.75 = $ 337,500
5. A Cost Reconciliation Report
Materials Conversion
Ending WIP $ 28728 $10800
Transferred Out $ 598,500 $ 337,500
Total 627 228** 348,300
These calculated costs reconcile with the costs given in the above data.
Materials Conversion
Cost Of Opening Inventory 117,900 53600
Cost Added 613,080 294,700
Total Costs 624,980** 348,300
The difference is in the cost of materials which is actually 624,980** and we found it out to be 627 228** . This is because we rounded the Cost per Equivalent Unit of material from $ 1.325 to $1.33
If we multiply 1.325 * 471,600 we get $ 624870 which is almost the same.
Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,800 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $1,500, which Blossom is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $43,000. The implicit rate of the lease is not known to Blossom. Blossom’s incremental borrowing rate is 9%. Prepare Blossom’s 2020 journal entries
Answer and Explanation:
The Journal entry is shown below:-
1. Right of use Dr, $35,743.93
To lease liability $35,743.93
(Being lease assets and lease liability is recorded)
Working note as attached using spreadsheet
Here we debited the right of use as it increased the assets and we credited the lease liability as it also increased the liability
2. Lease liability Dr, $5,800
To Cash $5,800
(Being payment on lease liability is recorded)
Here, we debited the lease liability as it decrease the liability and we credited the cash as it decreased the asset
3. Interest expenses Dr, $2,694.95
To Lease liability $2,694.95
(Being interest expenses is recorded)
Here we debited the interest expense as it increased the expenses and we credited the leased liability as it increased the liability
4. Amortization expenses Dr, $3,574.39 ($35,743.93 ÷ 10 )
To Right of use $3,574.39
(Being amortization expenses is recorded)
Here we debited the amortization expenses as it increase the expenses and we credited the right of use as it reduced the assets
Working Note
Interest expenses = (Lease liability - First lease payment) × Incremental borrowing rate
= ($35,743.93 - $5,800) × 9%
= $2,694.95
