Answer:
I prepared an amortization schedule using an excel spreadsheet. The original monthly payment was $836.44. After the 120th payment, the remaining principal balance was $68,940.64. Since she didn't pay anything for 1 year, the new principal balance will be $68,940.64 x (1 + 8%) = $74,455.89
I prepared another amortization schedule for the remaining 9 years, and the monthly payment is $969.32. She will pay off the loan in 108 months.
Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is hours. The direct labor standard wage rate at the firm is per hour. Last month, direct labor hours were used to prepare tax returns. Total wages were .
Answer:
Tax Services
Total wages were:
= hourly wage rate * total hours spent on returns for the month
For example, if the hourly wage rate is $50 and the total hours spent on the returns equal 560 hours, the total wages will be equal to $28,000 ($50 x 560).
Explanation:
The Tax Services' total wages will be equal to the hourly wage rate multiplied by the total hours spent on returns during the month. The total hours spent on the returns for the month is obtained by adding up the hours spent on all the returns. The total wages depend on the hours worked and the standard wage rate that has been established in the firm.
Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows:
Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.
Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900
Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
Answer:
Production budget for the first quarter of 202x
Particulars January February March Total
Expected sales 3,900 3,200 3,700 10,800
Required ending 800 925 1,100 2,825
inventory
Less beginning 975 800 925 2,700
inventory
Required number 3,725 3,325 3,875 10,925
of units to be produced
The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.
Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:Steel per filing cabinet ............................................. 55 poundsDirect labor per filing cabinet ...................................... 20 minutesSupervisor salaries ................................................ $180,000 per monthDepreciation ...................................................... $28,000 per monthDirect labor rate................................................... $21 per hourSteel cost ......................................................... $0.40 per poundRequired:Prepare a flexible budget for 12,000, 15,000, and 18,000 filing cabinets for the month of August 2014.
Answer:
Total Flexible Budgets for 12,000, 15,000, and 18,000 units is $ 556,000 $ 643,000 and $830,000
Explanation:
Steelcase Inc.
Assembly Department:
Steel per filing cabinet ............................................. 55 pounds
Direct labor per filing cabinet ...................................... 20 minutes
Supervisor salaries ................................................ $180,000 per month
Depreciation ...................................................... $28,000 per month
Direct labor rate................................................... $21 per hour
Steel cost ......................................................... $0.40 per pound
Steelcase Inc.
Flexible budget
For the month of August 2014.
Units: 12000 15000 18000
Steel for filing cabinet 660,000 825000 990,000 pounds
Steel cost $264,000 330,000 $ 396,000
Direct labor Hrs 4,000 5,000 6,000
Direct labor Cost $84,000 $105,000 $ 126,000
Supervisor salaries $180,000 $180,000 $180,000
Depreciation $28,000 $28,000 $28,000
Total $ 556,000 $ 643,000 $830,000
First we find the Steel for filing cabinets in pounds . Then we multiply with the rate to find the steel cost.
Similarly we find the direct labor hours and then the direct labor cost.
We assume that the supervisor salaries and depreciation are fixed.
Twilight Corporation acquired End-of-the-World Products on January 1, 2020 for $6,200,000, and recorded goodwill of $1,000,000 as a result of that purchase. At December 31, 2021, the End-of-the-World Products Division had a fair value of $5,440,000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5,740,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2021
Answer:
Loss on impairment of goodwill that should be recorded is $300,000
Explanation:
Carrying value of net identifiable assets $5,740,000
Less: Fair value $5,440,000
Loss on impairment of goodwill $300,000
g Sheffield Corp. purchased a truck at the beginning of 2017 for $109200. The truck is estimated to have a salvage value of $3800 and a useful life of 131750 miles. It was driven 23000 miles in 2017 and 31000 miles in 2018. What is the depreciation expense for 2018
Answer:
$24,800
Explanation:
Calculation for the depreciation expense for 2018 for Sheffield Corp.
Using this formula
Depreciation expense = (Purchased at the beginning-Salvage value/Useful life)* Driven miles
Let plug in the formula
Depreciation expense=($109,200-$3,800/131,750)*31,000
Depreciation expense=($105,400/131,750)*31,000
Depreciation expense=0.80*31,000
Depreciation expense=$24,800
Therefore the depreciation expense for 2018 will be $24,800
Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $85,000 with a $7,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $20,210 per year. In addition, the equipment will have operating and energy costs of $4,130 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %
Answer:
17.89%
Explanation:
Calculation Determine the average rate of return on the equipment
Using this formula
Average rate of return =Avarage annual income /Average investment
Where,
Avarage annual income=Annual saving - Annual depreciation- Annual operating costs
Average investment= (Beginning costs + Residual value)÷2
Let plug in the formula
Average rate of return=$20,210 - ($85,000- $7,000)÷10 years-$4,130/($85,000+$7,000)÷2
Average rate of return=$20,210-($78,000÷10)-$4,180/($92,000)÷2
Average rate of return=$20,210-$7,800-$4,180/$46,000
Average rate of return=$8,230/$46,000
Average rate of return=0.1789*100
Average rate of return=17.89%
Therefore the average rate of return on the equipment will be 17.89%
Answer:
18%
Explanation:
This can be calculated as using the formula for calculating the average rate of return as follows:
Average rate of return = Average annual income / Average investment in equipment .................. (1)
To use equation (1), we first calculate the following:
Annual cost saving = $20,210
Annual depreciation = (Equipment cost - Residual value) / Useful number of years = ($85,000 - $7,000) / 10 = $7,800
Annual operating and energy costs = $4,130
Average annual income = Annual cost saving - Annual depreciation - Annual operating and energy costs = $20,210 - $7,800 - $4,130 = $8,280
Average investment in equipment = (Equipment cost + Residual value) / 2 = $46,000
Substituting the values for Average annual income and Average investment in equipment into equation (1), we have:
Average rate of return = $8,280 / $46,000 = 0.18, or 18%
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 25% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $81,000 to Ski Outfit and pays shipping costs of $8,700. By the end of the year, $61,000 of the merchandise has been sold to customers for a total of $86,000. Mogul allocates $6,500 of the shipping costs to inventory sold and the other $2,200 to inventory not sold. Mogul also paid advertising costs during the year of $10,500. What amount of inventory will Mogul report at year end
Answer:
$22,200
Explanation:
With regards to the above information Mogul company,
Cost of goods
= $81,000 + $8,700
= $89,700
= $61,000 + $6,500
= $67,500
Inventory = Cost of goods - Cost of goods sold
= $89,700 - $67,500
= $22,200
It therefore means that the amount of inventory Magu company will report at the year end is $22,200
It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________
a. understand where the boundaries of the current negotiations are and should be.
b. are clear in their own minds about the scope of the negotiations.
c. understand how they would ideally like to work with the other party.
d. determine what ground the negotiation is going to cover and how the negotiators are going to work together.
e. understand that all the above are important to the shadow negotiations.
Answer:
b. are clear in their own minds about the scope of the negotiations.
Explanation:
Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.
Research an organization that makes people their primary focus and another organization that makes productivity and efficiency their primary focus. Compare, contrast, and discuss the control techniques and measurements for each organization.
Answer:
Ritz Carlton hotel focuses on people.
Sony Focuses on their products.
Explanation:
Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority.
Sony has always been striving to serve its customer better. Millennial are the top brands that are considered in market. They are the organizations which capture major market share and are massive market segment. Sony has offered wide range of products to its customers. Their main focus is on their product features and its qualities.
When the Federal Reserve buys long term MBS and Treasury securities from banks and announces its intention to keep buying these assets in large quantities for a long time the effect on commercial banks is to increase the value of fixed income securities that are not sold and at the same time to lower the interest spread between new loans originated and the cost of financing these loans. True False
Answer:
True
Explanation:
Since, Federal reserve purchased long term MBS in order to pay the less market interest rate and this will cause a rise in the amount of income i.e fixed securities. Also, due to less market interest rate, the financing cost is less and at the same time interest spread is narrower as it provides more liquidity
Therefore the given statement is true
Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False
Answer:
True
Explanation:
If you dress inappropriately, that is not showing a good first impression. Most, if not all jobs want to have employees that can dress well, cooperate, and work well with others.
A company purchased property for a building site. The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
Answer:
The question is incomplete, below is a possible match of the complete question:
a company purchased property for a building site. the costs associated with the property were:
purchase price $175,00
real estate commisions $15,000
legal fees 800
expenses of clearing the land 2,000
expenses to remove old building 1,000
what portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
Answer:
cost allocated to land = $193,800
cost allocated to new building = $0
Explanation:
The expenses associated with the ost of land purchase are all the necessary expenses made in the purchase of the land and in getting the land ready for use. These include legal fees, cost of clearing the land, cost of removing old structures etc. Therefore cost allocated to land is calculated as follows:
cost of land = purchase price + real estate commissions + legal fees + expenses of clearing the land + expenses to remove old building.
cost of land = 175,000 + 15,000 + 800 + 2,000 + 1,000 = $193,800
∴ cost of land = $193,800
cost of new building = $0
There is no transaction associated directly with setting up the new building, all the costs were associated with the acquisition of the land, hence the cost os the new building is $0
Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow.
Summary Income Statement Data
Sales $11,692,900
Cost of goods sold 5,135,000
Selling expenses 938,000
Administrative expenses 780,000
Interest expense 2,210,000
Income tax expense 905,000 9,968,000
Net income $1,724,900
Summary Balance Sheet Data
Cash $117,000
Total liabilities $900,000
Noncash assets 1,183,000
Stockholders' equity 400,000
Total assets $1,300,000
Total liabilities and equity $1,300,000
Round answers to two decimal places.
a. Compute the ratio of times-interest-earned.
b. Compute the debt-to-equity ratio.
Answer:
a. Compute the ratio of times-interest-earned.
times-interest-earned = EBIT / interest expense
EBIT = $4,839,900interest expense = $2,210,000times-interest-earned = $4,839,900 / $2,210,000 = 2.19
b. Compute the debt-to-equity ratio.
debt-to-equity ratio = total liabilities / total stockholders' equity
total liabilities = $900,000total stockholders' equity = $400,000debt-to-equity ratio = $900,000 / $400,000 = 2.25
Murray Company reports net income of $770,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 350,000 shares. Compute its basic earnings per share.
Answer:
EPS = 2.2
Explanation:
Earning per share is the amount due to each of the ordinary shareholders after settlement of interest due on loans , preferred dividends and tax.
Earnings per share (EPS) = Earnings attributable to ordinary shareholders ÷ Units of shares
Where ;
Earnings attributable to ordinary shareholders = Net income - Preferred dividends
EPS = $770,000 - 0 ÷ 350,000 shares
EPS = $2.2
You are the manager of a firm that produces goods X and Y. Your rm receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The price elasticity of demand for product X is |-0.75| and the cross price elasticity of demand between product Y and X is -1.7.
Required:
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
Answer:
price elasticity of demand = % change in quantity / % change in price
-0.75 = % change in quantity / 2%
-1.5 = % change in quantity
lets assume that 1,000 units of X were sold at $40 each, total revenue = $40,000
new total revenue = 985 x $40.80 = $40,188
revenue generated by good X will increase by 0.47%, from $40,000 to $40,188
price elasticity of demand = % change in quantity of Y / % change in price of X
-1.7 = % change quantity of Y / 2%
-3.4% = % change quantity of Y
lets assume that 1,000 units of Y were sold at $90 each, total revenue = $90,000
new total revenue = 966 x $91.80 = $88,678.80
revenue generated by good Y will decrease by -1.47%, from $90,000 to $88,678.80
The bookkeeper prepared a check for $48 but accidently recorded it as $95. When preparing the bank reconciliation, this should be corrected by:
Answer:
Adding $47 to the book balance.
Explanation:
The above is an example of transposition error, which is caused by substituting two or more sequential digits ; mistake would be corrected by adding $47 ($95 -$48) to the book balance.
A question that respondents can answer in an almost unlimited number of ways is called a ____ question.
Answer:
open question
Explanation:
An open question allows each respondent to interpret the final answer differently.
The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced
Answer:
Unites actually produced = 4,000 units
Explanation:
Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.
It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price
Material quantity variance in unit = Materials quantity variance in value /standard price
Material quantity variance in unit = 350/2.50 =140 pounds
Actual quantity used (in pounds) = standard quantity allowed - Material quantity variance
= 4000 - 140 = 3,860 pounds
Actual units produced = Standard quantity allowed/ standard quantity per unit
= 4,000/1 = 4000 units
Unites actually produced = 4,000 units
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 3 percent less than that for preferred stock.
Debt can be issued at a yield of 11.0 percent, and the corporate tax rate is 20 percent. Preferred stock will be priced at $60 and pay a dividend of $6.40. The flotation cost on the preferred stock is $6.
a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
c. Based on the facts given above, is the treasurer correct?
Answer:
a. Compute the after tax cost of debt.
after tax cost of debt = 11% x (1 - tax rate) = 11% x 0.8 = 8.8%
b. Compute the after tax cost of preferred stock.
after tax cost of preferred stock = cost of preferred stock (no taxes are deducted for paying preferred dividends since they are paid in capital)
cost of preferred stocks = $6.40 / ($60 - $6) = $6.40 / $54 = 11.85%
c. Based on the facts given above, is the treasurer correct?
the difference = 11.85% - 8.8% = 3.05%, so the treasurer was right
Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it with various products. This is an example of which category of inventory model?
Answer:
Fixed Time Period Model
Explanation:
a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is Fixed Time Period Model.
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
a. Discretionary policy
b. An eclectic approach
c. Fixed rules
d. Fiscal policy
Answer:
C. Fixed rules.
Explanation:
This is simply a policy that is seen to be a monetary or in some cases fiscal; they are said to be automated in most of its cases and are based on the criteria that are predetermined.
In most cases, these policies are seen to be binding and also categorically constrain officials' policy choices based on certain predetermined criteria to direct them toward serving the public interest.
Many cases by policymakers made this policy to be put in place because most of them generally cannot bind their own future choices, also fixed policy rules usually have to be enforced by some kind of higher authority in order to be binding etc.
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. All of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit.
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $76,500 of manufacturing overhead for an estimated activity level of $45,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:
Raw materials $10,200
Work in process $4,200
Finished goods $8,200
During the year, the following transactions were completed:
a. Raw materials purchased for cash, $170,000.
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
c. Costs for employee services were incurred as follows: |Direct labor|$156,000
Indirect labor $185,900
Sales commissions $22,000
Administrative salaries $50,000
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).
e.Utility costs incurred in the factory, $16,000.
f.Advertising costs incurred, $13,000.
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
h. Manufacturing overhead cost was applied to jobs, $?
i.Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Required:
(Round your intermediate calculations to 2 decimal places)
1. Prepare journal entries to record the transactions for the year.
2. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
3. Prepare an income statement for the year.
Answer:
1)
a. Raw materials purchased for cash, $170,000.
Dr Materials inventory 170,000
Cr Cash 170,000
b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
Dr Work in process: direct materials 121,000
Dr Manufacturing overhead 20,000
Cr Materials inventory 141,000
c. Costs for employee services were incurred as follows:
Dr Work in process: direct labor 156,000
Dr Manufacturing overhead 185,900
Dr Sales salaries expense 22,000
Dr Administrative salaries expense 50,000
Cr Cash 413,900
d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling)
Dr Manufacturing overhead 13,600
Dr Rent expense 5,200
Cr Cash 18,800
e.Utility costs incurred in the factory, $16,000.
Dr Manufacturing overhead 16,000
Cr Cash 16,000
f. Advertising costs incurred, $13,000.
Dr Advertising expenses 13,000
Cr Cash 13,000
g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)
Dr Manufacturing overhead 15,000
Dr Depreciation expense 6,000
Cr Accumulated depreciation: manufacturing equipment 15,000
Cr Accumulated depreciation: office equipment 6,000
h. Manufacturing overhead cost was applied to jobs, $?
Dr Work in process 265,200
Cr Manufacturing overhead 265,200 (170% of direct labor)
i. Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.
Dr Finished goods inventory 226,000
Cr Work in process 226,000
j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.
Dr Cash 514,000
Cr Sales revenue 514,000
Dr Cost of goods sold 220,000
Cr Finished goods inventory 220,000
2)
Dr Manufacturing overhead ($265,200 - $250,500) 14,700
Cr Cost of goods sold 14,700
3) Gold Nest Company
Income Statement
Sales revenue $514,000
- Cost of goods sold -$205,300
Gross profit $308,700
Operating expenses:
Sales salaries expense -$22,000Administrative salaries expense -$50,000Rent expense -$5,200Advertising expenses -$13,000Depreciation expense -$6,000 -$96,200Operating profit $212,500
1. The preparation of journal entries to record the transactions for Gold Nest Company of Guandong, China, is as as follows:
a. Debit Raw materials $170,000
Credit Cash $170,000
b. Debit Work in Process $121,000
Debit Manufacturing Overhead $20,000
Credit Raw materials $141,000
c. Debit Work in Process $156,000
Debit Manufacturing Overhead $185,900
Credit Payroll Expenses $341,900
Debit Selling and Administrative Expenses $22,000
Credit Sales commissions $22,000
Debit Selling and Administrative Expenses $50,000
Credit Administrative salaries $50,000
d. Debit Manufacturing Overhead $13,600
Debit Selling and Administrative Expenses $5,200
Credit Rent Expenses $18,800
e. Debit Manufacturing Overhead $16,000
Credit Utilities Expense $16,000
f. Debit Selling and Administrative Expenses $13,000
Advertising costs $13,000
g. Debit Manufacturing Overhead $15,000
Debit Selling and Administrative Expenses $6,000
Credit Depreciation Expenses $21,000
h. Debit Work in Process $265,200
Credit Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Debit Finished Goods Inventory $226,000
Credit Work in Process $226,000
j. Debit Cash $514,000
Credit Sales Revenue $514,000
j. Debit Cost of goods sold $220,000
Credit Finished Goods Inventory $220,000
2. The journal entry to close the balance in the Manufacturing Overhead account to the Cost of goods sold is as follows:
Debit Manufacturing Overhead $14,700
Credit Cost of goods sold $14,700
3. Gold Nest Company
Income Statementfor the year ended December 31
Sales Revenue $514,000
Cost of goods sold 205,300
Gross profit $308,700
Selling and Administrative Expenses:
Sales commission $22,000
Administrative salaries 50,000
Rent Expenses 5,200
Advertising Expenses 13,000
Depreciation Expenses 6,000
Total selling/admin. $96,200
Net income $212,500
Data Calculations:Estimated manufacturing overhead = $76,500
Estimated direct labor dollars = $45,000
Predetermined overhead rate = $1.70 ($76,500/$45,000)
Beginning inventory balances:Raw materials = $10,200
Work in process = $4,200
Finished goods = $8,200
Data Analysis:a. Raw materials $170,000 Cash $170,000
b. Work in Process $121,000 Manufacturing Overhead $20,000 Raw materials $141,000
c. Work in Process $156,000 Manufacturing Overhead $185,900 Payroll Expenses $341,900
Selling and Administrative Expenses $22,000 Sales commissions $22,000
Selling and Administrative Expenses $50,000 Administrative salaries $50,000
d. Manufacturing Overhead $13,600 Selling and Administrative Expenses $5,200 Rent Expenses $18,800
e. Manufacturing Overhead $16,000 Utilities Expense $16,000
f. Selling and Administrative Expenses $13,000 Advertising costs $13,000
g. Manufacturing Overhead $15,000 Selling and Administrative Expenses $6,000 Depreciation Expenses $21,000
h. Work in Process $265,200 Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)
i. Finished Goods Inventory $226,000 Work in Process $226,000
j. Cash $514,000 Sales Revenue $514,000
j. Cost of goods sold $220,000 Finished Goods Inventory $220,000
2. Manufacturing Overhead $14,700 Cost of goods sold $14,700
Manufacturing Overheadb. Raw materials $20,000
c. Payroll Expenses $185,900
d. Rent Expenses $13,600
e. Utilities Expense $16,000
g. Depreciation Expenses $15,000
h. Work in Process $265,200
Cost of goods sold (Over-applied
overhead) $14,700
Cost of goods soldFinished goods $220,000
Over-applied manufacturing overhead (14,700)
Adjusted cost of goods sold $205,300
What is a job-order costing system?A job-order costing system is a costing system that tracks the costs and revenues according to jobs, with jobs allocated job numbers. It is unlike process costing, which tracks jobs for each process in order to determine the unit costs instead of per job.
Learn more about accounting costs under job-order costing system at https://brainly.com/question/24516871
During December, Rainey Equipment made a $658,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
So starting out they purchase your equipment with a promissory note. That promissory note is Debited to your accounts receivable for the amount of sales price (658,000) + both sales & local taxes. 6%+1.5%= 7.5% so... 1+ (7.5%*658,000)= $707,350
then your sales tax payable is credited like this 7.5%*658,000= $49,350
and of course credit, the sales price for $658,000
Explanation:
Accounts Receivable $707,350 Sales Revenue $658,000 Sales taxes payable $49,350Good luck!
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Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $9,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment would be:
Answer:
Initial value of building = $4,050,000
Initial value of land = $2,700,000
Initial value of equipment = $2,250,000
Explanation:
The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.
The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.
The initial value of each asset from a group of asset can be calculated using the following formula:
Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)
Where, from the questio;
Lump-sum price = $9,000,000
FVA = Fair value of a particular asset. From the question, we have:
Building fair value = $4,500,000
Land fair value = $3,000,000
Land fair value = $2,500,000
TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000
Substituting the values into equation (1), we can determine the initial value of each asset as follows:
Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000
Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000
Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000
Which of the following is included in the entry to record the issuance of shares of par value common stock at per share for cash?
A) Cash is debited for $294,000.
B) Common Stock is debited for $98,000.
C) Common Stock is credited for $294,000.
D) Paid-In Capital in Excess of Par-Common is debited for $196,000.
Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Which of the following policies often contains clauses that permit a social networking operator to collect and store data on users or even share it with third parties?
1) Terms of Trade policy
2) Terms of Use policy
3) Terms of Endearment policy
4) Terms of Retention policy
Answer: 2) Terms of Use policy
Explanation:
Terms of service are a contract or agreement between the user of a website or in this case a social networking operator and the social networking operator itself. This agreement is meant to govern the terms of the relationship between the 2 parties in terms of what will be expected of both, i.e, their rights and responsibilities.
On the side of the social networking operator, one of the rights usually listed is one stating that the operator can collect and store data on users or even share it with third parties and so it is important to read the terms of use policy as best you can when you can.
Improvements in labor productivity: A. affect the level of wages, but do not affect the rate of economic growth. B. affect the level of profit, but do not affect the rate of economic growth. C. contribute to economic growth. D. hinder economic growth, because they cause unemployment.
Answer:
C. contribute to economic growth
Explanation:
Economic growth is an increase in the the production of goods and services produced in an economy.
Improvements in labor productivity increases the output of labour and as a result contributes to economic growth.
Your portfolio has a beta of 1.60. The portfolio consists of 16 percent U.S. Treasury bills, 36 percent Stock A, and 48 percent Stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of Stock B?
Answer: 2.58
Explanation:
Portfolio beta of 1.60 is weighted average of all the constituent betas.
US Treasury bills are riskless so beta is 0
Stock A has market risk so beta is 1.
1.60 = (0.16 * 0) + ( 0.36 * 1) + ( 0.48 * b)
1.60 = 0.36 + 0.48b
0.48b = 1.24
b = 2.58
On January 2, 2019, Konrad Corporation acquired equipment for . The estimated life of the equipment is 5 years or hours. The estimated residual value is . If Konrad Corporation uses the units of production method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the asset was used hours?
The question is incomplete. The complete question is,
On January 2, 2019, Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000 hours. The estimated residual value is $14,000. If Konrad Corporation uses the units of production method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the asset was used 6,000 hours?
A. $166,667
B. $97,200
C. $162,000
D. $171,333
Answer:
The depreciation expense for the year is $162000. Thus, option C is the correct answer
Explanation:
The depreciation expense is the systematic allocation of the cost of the asset over its estimated useful life. The depreciation can be calculated using various methods. Under the units of production method, the depreciation expense for the period is calculated using the following formula,
Depreciation expense = [(Cost - Residual value) / Total estimated production units] * Units produced in a particular period
Depreciation expense = [(500000 - 14000) / 18000] * 6000
Depreciation expense = $162000
Bramble Corp. receives $360,000 when it issues a $360,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $60,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments.
Answer:
The First Payment occurs on 31 December 2021 as :
Mortgage Payable $31,200 (debit)
Interest Expense $28,800 (debit)
Cash $60,000 (credit)
The Second Payment occurs on 31 December 2022 as :
Mortgage Payable $33,696 (debit)
Interest Expense $26,304 (debit)
Cash $60,000 (credit)
Explanation:
First prepare an amortization schedule using the following data concerning the mortgage note :
Hint : Determine the number of years, N of this bond.
PV = $360,000
PMT = - $60,000
P/Yr = 1
r = 8 %
FV = 0
N = ?
The length of the bond, N is 8.4969 or 9 years
The First Payment occurs on 31 December 2021 as :
Mortgage Payable $31,200 (debit)
Interest Expense $28,800 (debit)
Cash $60,000 (credit)
The Second Payment occurs on 31 December 2022 as :
Mortgage Payable $33,696 (debit)
Interest Expense $26,304 (debit)
Cash $60,000 (credit)
