Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 72,000 Direct labor $ 36,500 Variable manufacturing overhead $ 16,200 Fixed manufacturing overhead 28,900 Total manufacturing overhead $ 45,100 Variable selling expense $ 12,600 Fixed selling expense 19,200 Total selling expense $ 31,800 Variable administrative expense $ 4,300 Fixed administrative expense 25,600 Total administrative expense $ 29,900 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost

Answers

Answer 1

Answer:

Product cost= $153,600

Explanation:

Giving the following information:

Direct materials $ 72,000

Direct labor $ 36,500

Variable manufacturing overhead $16,200

Fixed manufacturing overhead 28,900

Total manufacturing overhead $ 45,100

The product cost is the sum of direct material, direct labor, and total manufacturing overhead.

Product cost= 72,000 + 36,500 + 45,100

Product cost= $153,600


Related Questions

(Ignore income taxes in this problem.) Assume you can invest money at a 14 percent rate of return. How much money must be invested now to be able to withdraw $5,000 from this investment at the end of each year for eight years, the first withdrawal occurring one year from now

Answers

Answer:

the original amount invested = $285,714.29

Explanation:

Let original amount invested be x

Amount to be withdrawn per year = $5,000

Total number of years = 8

Total amount to be withdrawn = 5,000 × 8 = $40,000

Next, we are told that 14% return on x is realized,

∴ 14% return on x = $40,000

0.14 × x = 40,000

x = 40,000 ÷ 0.14 = $285,714.29

Therefore, the original amount invested = $285,714.29

Now suppose country A imposes a tax on A's production of to curb emissions. Country B, however, is not taxed. A's cost function is now , while B's cost function is . World demand is . The amount of greenhouse gas emissions per unit is still , such that total world emissions are given by . What are total world emissions after country A enacts a carbon tax?

Answers

Answer:

286.5

Explanation:

P=99-qa-qb

MRa=99-2qb-qb

MCa=48

99-2qa-qb=48

Qa=25.5-0.5qb{ best response function of firm A)

MRb=99-qa-2qb

MCb=4

99-qa-2qb=4

Qb=47.5-0.5qa{ best response function of form b}

Qb=47.5-0.5(25.5-0.5qb)

Qb=34.75/0.75=46.33

Qa=25.5-0.5*46.33=2.33

Total world output=46.33+2.33=48.66

Total world emission=0.5*48.66=24.33

p=1146-qa-qb-qc

MRa=1146-2qa-qb-qc

MCa=0

1146-2qa-qb-qc=0

Qa=573-0.5(qb+qc) best response function of firm a)

By symmetry,

Qb=573-0.5(qa+qc)

Qc=573-0.5(qa+qb)

Qb+qc=1146-qa-0.5(qb+qc)

Qb+qc=764-qa/1.5

Qa=573-0.5(764-qa/1.5)=191+qa/3

Qa=191*3/2=286.5

Qa=Qb=Qc=286.5

Total output=3*286.5=859.5( cournot equilibrium market output)

Cartel output=573

Lower QUANTITY in cartel equilibrium compare to cournot equilibrium

=859.5-573

=286.5

The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $36,300 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine's net present value

Answers

Answer:

$2007.6

Explanation:

According to the scenario, computation of the given data are as follow:-

4th Year Cash Flow = Salvage Value + Expected End Year Net Cash Flow

= $1,200 + $11,300

= $12,500

Year  Cash flow ($) PVF at 8%  Present value ($)

0              36,300 1.000          -36,300

1              11,300         0.9259           10462.67

2               11,300 0.8573            9687.49

3               11,300 0.7938            8969.94

4               12,500 0.7350            9187.5

 Net present value                   2007.6

According to the analysis, net present value of machine is $2007.6

Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 4.20 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 5.20 Fixed selling expense $ 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 12,500 units? b. What is the total indirect ma

Answers

Answer:

a. $142,500

b. $86,250

Explanation:

a. The computation of the total direct manufacturing cost is shown below:

= (Direct material per unit + direct labor per unit)  × number of units manufactured

= ($7.20 + $4.20) × 12,500 units

=  $142,500

b. The computation of the total indirect manufacturing cost is shown below:

= (Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit)  × number of units manufactured

= ($1.70 + $5.20) × 12,500 units

=  $86,250

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________. opportunity cost; production cost production cost; resource cost production cost; opportunity cost resource cost; production cost

Answers

Answer:

production cost; opportunity cost

Explanation:

The  $15 is the production cost and the shirt is the opportunity cost

What is opportunity cost?

Simply put, opportunity cost is the alternative forgone, it is the benefit forfeited for another.

In this case, the shirt was forfeited for the production of jeans, despite the possibility of still making a profit in shirt production.

Learn more about opportunity costs here:

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Colil Computer​ Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During​ January, the accounting department noted that there was no beginning inventory. Direct materials of $ 300 comma 000 were used in production during the month. Workminusinminusprocess records revealed that 12 comma 500 card units were started in​ January, 6 comma 250 card units were​ complete, and 4 comma 000 card units were spoiled as expected. Ending workminusinminusprocess card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. What is the direct material cost assigned to good units​ completed? A. $ 258 comma 621 B. $ 150 comma 000 C. $ 96 comma 000 D. $ 246 comma 000

Answers

Answer:

D. $246,000

Explanation:

As per the given question the solution of direct material cost assigned to good units​ completed is provided below:-

To reach Cost transferred out we need to follow some steps which is following below:-

Step 1. Cost per unit = cost of material used ÷ Units started

= $300,000 ÷ 12,500

= $24

Now,

Step 2. Goods units completed = Started units × Cost per unit

= 6,250 × $24

= $150,000

Step 3. Normal spoilage = Cards units × Cost per unit

= 4,000 × $24

= $96,000

and finally

Cost transferred out = Goods units completed + Normal spoilage

= $150,000 + $96,000

= $246,000

To reach allocation of Cost transferred out we simply put the values into formula.

The I-75 Carpet Discount Store has an annual demand of 10,000 yards of super shag carpet. The annual carrying cost for a yard of carpet is $0.75 and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet.; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards. How much should the store order, and what will be the total inventory cost for that order quantity?

Answers

Answer:

5 units and $2,175

Explanation:

a. The computation of the economic order quantity is shown below:

= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}[/tex]

=[tex]\sqrt{\frac{2\times \text{10,000}\times \text{\$150}}{\text{\$0.75}}[/tex]

= 2,000 units

The total cost of ordering cost and carrying cost equals to

= Annual ordering cost + Annual carrying cost

= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit  

= 10,000 × $8 + 10,000 ÷ 2,000 × $150 + 2,000 ÷ 2 × $0.75

= 80,000 + $750 + $750

= $81,500

Now in case of ordering 5,000 yields at discount price of $6.50 the total cost is

= Purchase cost + Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit  

= 10,000 × $6.50 + 10,000 ÷ 5,000 × $150 + 5,000 ÷ 2 × $0.75

= $65,000 + 300 + $1,875

= $67,175

Therefore there will be 5 units should store at a time and cost of inventory is 300 + $1,875 = $2,175

he income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.

Answers

Answer:

Cash flow from operating activities

Cash Receipts from Customers                    $7,240,000

Cash Paid to Suppliers and Employees      ($6,460,000)

Net Cash from Operating Activities                 $780,000

Explanation:

Prepare a statement of cash flows` operating activities section as follows :

Cash flow from operating activities

Cash Receipts from Customers                    $7,240,000

Cash Paid to Suppliers and Employees      ($6,460,000)

Net Cash from Operating Activities                 $780,000

Cash Receipts from Customers Calculations

Sales revenue                                             $6,890,000

Add Decrease in Accounts Receivables      $350,000

Cash Receipts from Customers                 $7,240,000

Cash Paid to Suppliers and Employees Calculations

Cost of goods sold                                       $4,700,000

Add

Selling expenses                                            $460,000

Administrative expenses                                $700,000

Less depreciation expense of                         $50,000

Decrease in Accounts Payable                     $300,000

Decrease in Accrued Expenses                      $90,000

Increase in  Prepaid expenses                       $160,000

Cash Paid to Suppliers and Employees    $6,460,000

Suppose that you are the international treasurer of Apple with an extra U.S. $10 million to invest for 9 months. You are considering the purchase of U.S. T-bills that yield 1.50% annual rate. The spot exchange rate is $1.00 = ¥100, and the 9 month forward rate is $1.00 = ¥110. What must the interest rate in Japan be before you are willing to consider investing there for 9 months? A. 14.5515 B. <8.8975 C. >13.4983 D. 12.5050

Answers

Answer:

Japan Interest Rate = 0.15%  

Explanation:

As per Interest Rate Parity Theory

Spot Rate : 1$ = 100

Forward Rate : 1 $ = 110

r = 9/12

As per interest rate parity, forward rate = Spot rate(1+Interest rate Japan)/(1+Interest rate US)

Forward rate = Spot rate *(1+ iD)/(1+iF)

110 / 100 = (1 + Japan Interest Rate * 9 /12)  / 1.01125

1.1 * 1.01125 = 1 + Japan Interest Rate * 0.75

1.112375 = 1 + Japan Interest Rate * 0.75

Japan Interest Rate * 0.75 = 1.112375 - 1

Japan Interest Rate * 0.75 = 0.112375

Japan Interest Rate = 0.112375 / 0.75

Japan Interest Rate = 0.15%  

Please help ASAP giving BRAINLIEST , Did I get this correct?

Answers

Answer:

No, in my opinion I would choose:

A) the properties of free-market system that determine what the outcomes will be.

Explanation:

That would be my answer because the definition of market forces is "the economic factors affecting the price of, demand for, and availability of a commodity."(off the internet) and the answer which fits that definition the most in my opinion is A.

That would be my answer at least.

Hope this helps!

he principle that suggests that the distribution of income should be based on the contribution made by individuals to​ society's total output is known as A. the functional distribution of income. B. the relative poverty standard. C. the productivity standard. D. the egalitarian principle. The productivity standard fails to yield an equal distribution of income because A. individuals have different abilities and skills. B. it is difficult to measure productivity accurately. C. richer countries have higher productivity than poorer countries. D. diminishing marginal productivity holds.

Answers

Answer:

The principle that suggests that the distribution of income should be based on the contribution made by individuals to​ society's total output is known as:

C. the productivity standard.

The productivity standard fails to yield an equal distribution of income because:

A. individuals have different abilities and skills.

Explanation:

Generally speaking, productivity refers to how many units of output we can produce by using X amount of units of inputs. The higher the output, the more productive we are.

The same principle is used by the productivity standard to allocate resources in a society. This is a basic doctrine of capitalism that believes that more work and more productivity should equal more income. That is why capitalistic countries tend to have unequal income distribution.

Pharoah Company has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $4 par value common stock has increased from $15 per share to $55. During this period, paid-in capital remained the same at $6,000,000. Retained earnings increased from $4,500,000 to $30,000,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders’ equity, and (c) par value per share.

Answers

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) 15% Stock Dividend-

Retained Earnings = Increase Value of Retained Earnings - (Total Shares × 15% Stock Dividend × Increase Value of Per Share)

= $30,000,000 - (500,000 × 15% × $55)

= $30,000,000 - $4,125,000

= $25,875,000

2)  2-for-1 stock split-

Retained earnings = $30,000,000

The 2-for-1 stock split will not impact retained earnings.

a and b) The before, after effects of each option are shown in the attachment below

c) Par value per share  

Par value per share of stock dividend = $4

Par value per share of 2-for-1 stock split = $4  ÷ 2 = $2

According to the analysis, stock dividend will not make any impact.

       

The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

Answers

Answer:

$59,080

Explanation:

The calculation of September cash disbursements is shown below:-

September cash disbursement = Company's budgeted fixed manufacturing overhead - Depreciation + Variable manufacturing overhead

= $43,120 - $3,640 + $7.00 × 2,800

= $43,120 - $3,640 + $19,600

= $62,720 - $3,640

= $59,080

Therefore for computing the September cash disbursement we simply applied the above formula.

Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow: JulyAugustSeptemberBudgeted sales$64,000 $80,000 $48,000 Budgeted cash payments for Direct materials 16,160 13,440 13,760 Direct labor 4,040 3,360 3,440 Factory overhead 20,200 16,800 17,200 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month).rev: 03_17_2020_QC_CS-2046792. Prepare a cash budget for each of the months of July, August, and September.

Answers

The Preparation of cash budget for each of the months of July, August, and September is shown below:

Preparation of the cash budget:

                                              Cash budget

                             For the month of July, August and September

                                             July           August          September

Beginning cash balance   $15,000      $15,000         $25,505

Cash receipts from

customer (Working note) $57,800      $67,200        $73,600

Total cash available         $72,800      $82,200       $99,105

Less:

Cash disbursements

Direct Materials                 $16,160         $13,440         $13,760

Sales commission             $6,400         $8,000          $4,800

(10% of sales)

Office salaries                   $4,000          $4,000          $4,000

Rent                                    $6,500         $6,500          $6,500

Direct Labor                       $4,040         $3,360           $3,440

Overhead Cost                 $20,200       $16,800         $17,200

Interest on bank loan    

For July (5,000 × 1%)             $50  

For August                                                  $46            

($5,000 - $4,550) × 1%))

For September                                                                  $0

Preliminary Cash

balance                                    $15,450    $30,055      $49,405

Repayment of loan to

Bank                                          $450        $4,550

                                                                ($5,000 - $450)

Ending cash balance              $15,000     $25,505     $49,405

Working Note

The ending balance of the particular month should be treated as a opening balance of next month

August ending balance will be forwarded in Sept as a opening balance.

Working Note

                                        July           August          September

Sales                            $64,000      $80,000            $48,000

Less:

Ending accounts

receivable

(80% of sales)            $51,200       $64,000             $38,400

Cash sales                 $12,800        $16,000              $9,600

Last month cash

collection                   $45,000         $51,200          $64,000

Cash receipts from

customer                    $57,800      $67,200        $73,600

Therefore we added the cash receipts as it increase the cash balance and deduct all cash payment as it decrease the cash balance

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In performing accounting services for small businesses, you encounter the following situations per taining to cash sales. 1. Poole Company enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500. 2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax. Prepare the entry to record the sales transactions and related taxes for each client.

Answers

Answer and Explanation:

According to the scenario, journal entries of the given data are as follow:-

1.Journal Entry of Poole Company

April  10

Cash A/c  Dr.  $31,500

 To Sales A/c $30,000

               To Sales tax payable A/c $1,500

(Being the sales and sales tax payable is recorded)

2. Since Register total for April $25,680 includes 7% sales tax.

So Sales of Waterman Company

= Registered Total Amount ÷ (1 + Sales Tax Rate)

= $25,680 ÷ (1 + 7%)

= $25,680 ÷ 1.07

= $24,000

Now

Sales tax = $24,000 × 7% = $1,680

Journal Entry of Waterman Company

On 15 April  

Cash A/c     Dr.  $25,680

 To Sales A/c   $24,000

               To Sales tax payable A/c $1,680

(Being the sales and sales tax payable is recorded)    

Flyaway Travel Company reported net income for 2021 in the amount of $105,000. During 2021, Flyaway declared and paid $3,625 in cash dividends on its nonconvertible preferred stock. Flyaway also paid $25,000 cash dividends on its common stock. Flyaway had 55,000 common shares outstanding from January 1 until 25,000 new shares were sold for cash on April 1, 2021. What is 2021 basic earnings per share?

Answers

Answer:

The 2021 basic earnings per share is $1.68

Explanation:

In order to calculate the 2021 basic earnings per share we would have to use the following formula:

Basic EPS = (Net income - Preferred Dividend) / Weighted average common shares outstanding

According to given data:

Net income=$105,000

Preferred Dividend=$3,625

The calculation of the Weighted average common shares outstanding would be as follows:

Period                Months   Number of shares outstanding   Weighted Number

                             A                                    B                                     A*B /12

Jan 1 to Mar 31       3                                55,000                                13,750

April 1 to Dec. 31    9                               80,000 (55,000 +25,000)   60,000

                                                                            (40000+10000)

The Weighted average common shares  is 60,000

Therefore, Basic EPS = (Net income - Preferred Dividend) / Weighted average common shares outstanding

Basic EPS= ($105,000 - $3,625) / 60,000

Basic EPS=$1.68

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

Answers

On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:

Then intended files that supposed to be here are added in the attachments below:

Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

Answer:

Explanation:

We are tasked to Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.

 

                     Schedule remeasuring Swiss francs to dollars

                     Trial Balance Translation Schedule

                      December 31, 20X1

                                             Sfr            Exchange Rate      U.S dollar        

Cash                             $7,200                   0.73               $5,256

Accounts                      $25,000                0.73               $18,250

receivable (net)

Receivable from           $6,300                  0.73                $4,599

Creek

Inventory                       $26,000               0.73                $18,980

Plant & equipment        $110,000              0.73                $80,300

Cost of good sold         $71,500                0.75                $53,625

Depreciation expense  $10,100                0.75                $7,575

Operating expense       $35,000              0.75                $26,250

Dividends paid              $16,400               0.74                 $12,136

                                                                                                                     

Total:                             $307,500                                     $226,971

                                                                                                                     

[tex]Accumulated - \ translation \\other \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ adjustment\\Comprehensive \\ loss[/tex]  (233,031 - 226,971)           $6060

                                                                                                                                   

TOTAL DEBITS                                                                    $233,031

Accumulated              $10,100                 0.73                  $7,373

Depreciation

Account                      $13,600                 0.73                  $9,928  

Payable

Bond                           $51,000                 0.73                  $37,230

Payable

Common stock          $78,000                 0.80                $62,400

Sales                          $154,800                 0.75               $116,100

                                                                                                                       

Total:                         $307,500                                        $233,031

No entry necessary                                                         $   -

TOTAL CREDITS                                                               $233,031              

Hancock Medical Supply Co., earned $90,500 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $71,400 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1

Answers

Answer:

$18,195

Explanation:

The computation of the net realizable value is shown below:

As we know that

Net Realizable Value of Receivables =  Ending Accounts Receivable - Estimated Uncollectibles  amount

where,

Ending balance of Accounts Receivable is

= Revenue on Account - Accounts collected

= $90,500 - $71,400

= $191,00

And,

Estimated Uncollectibles i.e  Bad debt Expense is

= Revenue on Account × given percentage

= $90,500 × 1%

= $905

So, the net realizable value is

= $19,100 - $905

= $18,195

We simply applied the above formula

Option A has an expected value of $2,000, a minimum payoff of -$4,000, and a maximum payoff of $18,000. Option B has an expected value of $2,200, a minimum payoff of -$1,000, and a maximum payoff of $6,000. Option C has an expected value of $1,900, a minimum payoff of $100, and a maximum payoff of $2,000. In this situation, a risk-averse decision maker would pay __________ for his risk aversion, and a risk-seeking decision maker would pay __________ for his risk seeking.

Answers

Answer:

Option A is the answer

Explanation:

A risk-averse decision maker will go for the option with the least chance of loss incurred (the highest minimum payoff of $100) and settle for an expected value of 1900. He'll pay for his risk avoidance in this way (2200-1900 = 300) while a risk-seeking decision maker will go for the option with the highest payoff chances ($18,000), regardless of the possibility of failure. This would make the risk-seeking decision maker go for option A.

Harry and Meghan have considered starting their own business but are concerned about the possibility of losing even their personal assets if the business fails. One way for BOTH Harry and Meghan to avoid this liability risk would be to :

A.
divorce as soon as possible and establish two sole proprietorships

B.
Organize a limited partnership with Harry as the general partner

C.
set up offshore accounts

D.
form a corporation

Answers

Answer:

The correct option is D,form a corporation

Explanation:

The rationale for my choice of answer is that limited liability applies to a corporation which is found in other types of businesses.

Limited liability is a concept which implies that the liability of shareholders in a limited liability company is limited to the amount contributed to the business by a way of shares held in the company.

When a company runs into debt,the shareholders would not be required to make up such debts from their private pockets,hence Harry and Meghan personal effects are secure.

The way for Harry and Meghan to avoid liability risk is to form a corporation

Typically, a limited liability applies to a corporation which means that the owner liability is limited to the amount he owns in the business.

Limited liability implies that liability of shareholders is limited to the amount contributed to the business by a way of shares held in the company.

So, when company runs into debt, the shareholders would not be required to make up such debts from their private pockets,therefore, the investment of Harry and Meghan are secure.

Hence, the only way for Harry and Meghan to avoid liability risk is to form a corporation

Therefore, the Option D is correct.

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Arlington Clothing, Inc., shows the following information for its two divisions for year 1: Lake Region Coastal Region Sales revenue $ 4,200,000 $ 13,110,000 Cost of sales 2,711,300 6,555,000 Allocated corporate overhead 252,000 786,600 Other general and administration 557,900 3,759,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes.

Answers

Answer:

                                          Lake Region   Coastal region

Operating income ($)                 678,800.   2,009,400.

Explanation:

                                                Lake Region   Coastal region

                                                       $'000        $'000

Sales revenue                           4,200             13,110

Cost of sales                             (2,711)             (6.555)

Gross profit                               1,488.7           6,555

Allocated overhead                   (252)              (786.6)

Other general overhead           (557.9)          ( 3,759)

Operating income                      678.8             2,009.4

                                       Lake Region   Coastal region

Operating income                 678,800.   2,009,400.

 

Assume that at the end of 2019, Clampett, Inc. (an S corporation) distributes property (fair market value of $40,000, basis of $5,000) to each of its four equal shareholders (aggregate distribution of $160,000). At the time of the distribution, Clampett, Inc., has no corporate earnings and profits and J.D. has a basis of $50,000 in his Clampett, Inc., stock. What is J.D.'s stock basis after the distribution

Answers

Answer:

J.D.'s stock basis after the distribution is $85,000

Explanation:

In order to calculate the J.D.'s stock basis after the distribution we would have to use the following formula:

J.D.'s stock basis after the distribution=original basis +increase/decrease in basis from gain from property distribution

original basis=$50,000

basis from gain from property distribution=$40,000-$5,000

basis from gain from property distribution=$35,000

Therefore, J.D.'s stock basis after the distribution=$50,000+$35,000

J.D.'s stock basis after the distribution=$85,000

In 2017, Cullumber Corporation incurred research and development costs as follows: Materials and equipment $111000 Personnel 131000 Indirect costs 171000 $413000 These costs relate to a product that will be marketed in 2018. It is estimated that these costs will be recouped by December 31, 2020. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2017

Answers

Answer:

The amount of research and development costs that should be expensed in 2017 is $413,000

Explanation:

In order to calculate the amount of research and development costs that should be expensed in 2017 we would have to use the following formula:

amount of research and development costs that should be expensed in 2017=  Materials and equipment costs+ Personnel costs+Indirect costs

amount of research and development costs that should be expensed in 2017= $111,000+ $131,000+$171,000

amount of research and development costs that should be expensed in 2017=$413,000

The amount of research and development costs that should be expensed in 2017 is $413,000

The amount of research and development costs that should be expensed in 2020

$ 99000 + $ 119000 + $ 159000

$377,000

The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of conversion costs.

Answers

Answer:

Conversion costs= $488,000

Explanation:

Giving the following information:

depreciation expense - factory building, $133,000

direct labor, $250,000

factory utilities, $105,000

The conversion costs are the sum of direct labor and manufacturing overhead.

Manufacturing overhead= 133,000 + 105,000= 238,000

Direct labor= 250,000

Conversion costs= $488,000

Granite State Airlines serves the route between New York and Portsmouth, NH, with a single-flight-daily 100-seat aircraft. The one-way fare for discount tickets is $100, and the one-way fare for full-fare tickets is $150. Discount tickets can be booked up until one week in advance, and all discount passengers book before all full-fare passengers. Over a long history of observation, the airline estimates that full-fare demand is normally distributed, with a mean of 56 passengers and a standard deviation of 23, while discount-fare demand is normally distributed, with a mean of 88 passengers and a standard deviation of 44.
a) A consultant tells the airline they can maximize expected revenue by optimizing the booking limit. What is the optimal booking limit? (Hint: Use the standard normal cumulative distribution table)
b) The airline has been setting a booking limit of 44 on discount demand, to preserve 56 seats for full-fare demand. What is their expected revenue per flight under this policy? (Hint: First find the expected revenue when b= 0. Here you can assume Probability{df = k} = Ff(k+0.5) – Ff(k-0.5) and use a spreadsheet. Then using the recursive formula, find the expected revenue if b is increased by 1 until it reaches b=44 using a spreadsheet)
c) What is the expected gain from the optimal booking limit over the original booking limit?
d) A low-fare competitor enters the market and Granite State Airlines sees its discount demand drop to 44 passengers per flight, with a standard-deviation of 30. Full-fare demand is unchanged. What is the new optimal booking limit?

Answers

Answer:

Given data: One flight with total seats = 100

Full fare passengers, cost per ticket=$150, mean=56 passengers, SD=23

Discount fare passengers, cost per ticket=$100, mean=88 passengers, SD=44

(a) Here, though there is a hint to use the CDF, since the confidence interval is not given we will make some simplying assumptions that will reduce the complexity of the question, of course keeping the question statistically correct.

this question wants us to maximize total revenue per flight (one way), we can do that by taking only full fare passengers or total revenue will be 150*100=$15,000, but since historical probability shows a mean of 56 with a standard deviation of 23, we can assume in best case scenario total full fare ticket passengers will be 56+23=79, leaving 21 tickets for discount passenger, in this case the total revenues will be 79*150+21*100=$13,950

(b) Now, the new constrained policy is giving a clear cut number of seats to each category of pasengers, 44 for discount (total revenues 44*100) and 56 for full fare (total revenues 56*150) both of which are within the probabilities given earlier (full fare mean=56, discount mean=88). Total revenues in case will be 44*100+56*150=$12,800.

(c) Gain is the difference of the excess revenues in both cases of optimal total revenues and limited seats policy or answer (a) - answer (b) = $13,950- $12,800=$1,150

(d) Realistically speaking, there is no answer for this question without a clear cut confidence interval. Another simplifying assumption we can make here is taking the mean passengers as expected bookings (can be tweaked once confidence interval or degree of significance is given). so total revenues in this case will be 44*100 from discount and 56*150 from full fare passengers. That is still similar to answer (c) due to our assumption/lack of constraints, so our optimal booking will be 54 full fare tickets and 44 discount passenger tickets. You can also take worst case scenario by subtracting SD of each passenger type from the mean or go the best case scenario in which SD of full fare will be added to the mean while the pending seats (left over from 100) will be the total to discount fare for optimal revenue collection.

Given knowledge: One flight with a total capacity of 100 passengers.

Passengers paying full fare, the average ticket price of $150, mean of 56 passengers, SD of 23

Participants on a discount price, with a ticket cost of $100, a mean of 88 passengers, and a standard deviation of 44.

(a) Spite of the fact there is a hint to utilize the CDF because statistical power is not supplied, we will make some presumptions to minimize the complexity of the question whilst retaining statistical accuracy.

We can do so by hardly taking full-fare passengers, in which particular instance total revenue will be 150*100=$15,000, but since historical probability shows a mean of 56 with a standard deviation of 23.

we can assume that total full fare ticket passengers will be 56+23=79, leaving 21 tickets for discount passengers, in which case total revenues will be[tex]79\times150+21\times100=\$13,950.[/tex]

(b) This new limited program now assigns a specific number of seats to each passenger category: 44 for discount (total revenues [tex]44\times100[/tex]) and 56 for full-fare (total revenues [tex]56\times150[/tex]), both of which are within the probability (full fare mean=56, discount mean=88).

In this instance, total revenues will be [tex]44\times100+56\times150=\$12,800.[/tex]

(c) Gain is the differential between the excess earnings in both the ideal overall revenue and restricted seat policies or $13,950- $12,800=$1,150.

(d) Without a well-defined standard error, there is no real answer to this question. Another assumption we might make to make things easier is to treat the average passengers as projected bookings. In this instance, total revenues will be 44*100 from discount passengers and 56*150 from full rate passengers.

Due to our assumption/lack of limitations, our ideal booking will be 54 full-price tickets and 44 discount passenger tickets, which is comparable to the solution (c).

You may alternatively go for the worst-case scenario by subtracting the SD of each passenger type from the mean, or the best-case scenario by adding the SD of the full fare to the mean and using the pending seats (leftover from 100) to discount the fare for optimal revenue collection.

To know more about the discounted price of the airline's tickets, refer to the link below:

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The focused differentiation strategy differs from the differentiation strategy in that Group of answer choices a. the focused differentiators have a broader competitive scope b. the value-creating activities of focused differentiators are more constrained. c. focused differentiators target a narrower customer market d. there are fewer risks with the focused differentiation strategy.

Answers

Answer:

The answer is option C) The focused differentiation strategy differs from the differentiation strategy in that focused differentiators target a narrower customer market.

Explanation:

Product differentiation is a marketing strategy that creates competitive advantage with designing a product superior to that of rivals, priced higher and sometimes created for exclusive users.

However, the focused differentiation strategy takes it a step further by targeting a small group of customers with ostensible goods.

The bourgeoisie are the main target for focused differentiators. They have the economic power to foot the bill and they enjoy the exclusivity of being the few to consume such products. A good example of such products is the Bugatti and Ferrari.

Matt and Joel are equal partners in the MJ Partnership. For the current year ended December​ 31, the partnership has book income of​ $80,000, which includes the following​ deductions: (1) guaranteed payments​ (salaries) to​ partners: Matt,​ $35,000; and​ Joel, $25,000; and​ (2) charitable​ contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any taxminusexempt income. Based on the above​ information, what amount should be reported as ordinary income on the partnership​ return?

Answers

Answer:

$86,000

Explanation:

A partnership is a pass through entity that is not taxed directly, but instead its partners are taxed. Even the partners' salaries are recorded as drawings, not salary expense.

The partnership's total ordinary income = book income + any donations or contributions to charities = $80,000 + $6,000 = $86,000

On January 1, 2021, Cobbler Corporation awarded restricted stock units (RSUs) representing 29.7 million of its $1 par common shares to key officers, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $5.2 per share. Required: 1. Determine the total compensation cost pertaining to the RSUs. 2. to 6. Prepare the appropriate journal entries.

Answers

Answer and Explanation:

The computation and the journal entries are shown below:

1)  Total compensation cost

= Common shares × market price per share

= 29,700,000 × $5.2

= $154,440,000

2)The journal entries are shown below:  

On Jan 1 2021

No  journal entry is required for awarded the restricted stock units  

On Dec 12 2021

Compensation expense (154,440,000 ÷ 3 years) $5,1480,000  

         Paid-in capital- restricted stock  $51,480,000

(Being the compensation expense is recorded)  

For recording this we debited the compensation expense as it increased the expenses and credited the paid in capital as it increased the equity

On Dec 31 2022

Compensation expense (154,440,000 ÷ 3 years) $5,1480,000  

         Paid-in capital- restricted stock  $51,480,000

(Being the compensation expense is recorded)  

For recording this we debited the compensation expense as it increased the expenses and credited the paid in capital as it increased the equity

On Dec 31 2023

Compensation expense (154,440,000 ÷ 3 years) $5,1480,000  

         Paid-in capital- restricted stock  $51,480,000

(Being the compensation expense is recorded)      

For recording this we debited the compensation expense as it increased the expenses and credited the paid in capital as it increased the equity

On Dec 31 2023

Paid-in capital - restricted stock $154,440,000  

         Common stock (29.7 million × $1)  $29,700,000

         Paid-in capital- excess of par  $124,740,000   (Balancing figure)

(Being the lifting of restrictions and issuance of the shares is recorded)  

For recording this we debited the paid in capital as it decreased the equity and credited the paid in capital and common stock as it increased the equity

On January 1, 2020, Pina Corporation sold a building that cost $263,240 and that had accumulated depreciation of $101,140 on the date of sale. Pina received as consideration a $253,240 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of the building be reported?

Answers

Answer:

Gain from sale = $23,067

Explanation:

the none interest bearing note must be recorded at present value:

present value of the note = face value / (1 + r)ⁿ

face value = $253,240r = 11%n = 3

PV = $253,240 / (1 + 11%)³ = $185,167

the note receivable must be recorded at $253,240, but $68,073 will be recorded as interest revenue.

the journal entry for the transaction should be:

January 1, 2020, sale of a building:

Dr Notes receivable 253,240

Dr Accumulated depreciation 101,140

    Cr Building 263,240

    Cr Interest revenue 68,073

    Cr Gain from sale 23,067

The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 75% complete. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,360 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Answers

Answer:

Equivalent Units

Material cost = 26,560

Conversion Cost= 25,540

Explanation:

We would assume the company uses  weighted average method of valuation.

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.

Equivalent units = Degree of completion (%) × Number of units

Material cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           100%× 1,360       1360

Total equivalent units                                                 26,560

Conversion Cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           25%× 1,360        340

Total equivalent units                                                  25,540

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