Answer:
$42,300 credit balance
Explanation:
The question is incomplete:
Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000. After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
uncollectible accounts = $2,010,000 x 3% = $60,300 credit
the adjusting entry at the end of the year:
December 31, 202x, bad debt expense:
Dr Bad debt 60,300
Cr Allowance for uncollectible accounts 60,300
the ending balance of the Allowance for uncollectible accounts account = $60,300 - $18,000 (debit balance) = $42,300
An aircraft company has an order to refurbish the interiors of 18 jet aircraft. The work has a learning curve percentage of 80. On the basis of experience with similar jobs, the industrial engineering department estimates that the first plane will require 300 hours to refurbish. Estimate the amount of time needed to complete:
a. The fifth plane
b. The first five planes
c. All 18 planes
Answer:
a. 125.43 hours
b. 767.92 hours
c. 2,129.04 hours
Explanation:
Using the mathematical approach, we have :
y = ax ^b
Where ,
y is the average time to manufacture x units
a is the time its takes to manufacture first plane
b is the log of 80% divided by log 2
Then,
Average time for 5 planes = 300 (5)^-0.322
= 178.67 hours
Total time for 5 planes = 178.67 hours × 5
= 893.35
Average time for 4 planes = 300 (4)^-0.322
= 191.98 hours
Total time for 5 planes = 191.98 hours × 4
= 767.92 hours
The fifth plane would take = 893.35 - 767.92
= 125.43 hours
Average time for the 18 planes = 300(18)^-0.322
= 118,28 hours
Total time for 18 planes = 118,28 hours × 18
= 2,129.04 hours
The most widely used presentation software program is Microsoft PowerPoint. You can produce a professional and memorable presentation using this program if you plan ahead and follow important design guidelines.
1. What text and background should you use in a darkened room?
A. Dark text on a light background
B. Dark text on a dark background
C. Light text on a dark background
2. How can you customize existing templates?
A. Eliminate boldface and italics
B. Adjust the color scheme
C. Add "visual cliches"
D. Add a company logo
E. Select different fonts
Answer:
1. C. Light text on a dark background
2. B. Adjust the color scheme
D. Add a company logo
E. Select different fonts
Explanation:
In order to produce a professional and memorable presentation using Microsoft Powerpoint program, the design guidelines should be applied in certain situations.
The text and background one should use in a darkened room is "Light text on a dark background"
Also, the correct way one can customize existing templates is to do the following:
1. Adjust the color scheme
2. Add a company logo
3. Select different fonts
With regard to consideration in a sales contract, the UCC differs from the common law in that:_______
A) terms of a sales contract may be modified without additional consideration.
B) consideration is not required in sales contracts
C) terms in a sales contract may be modified as long as additional consideration is provided.
D) consideration exchanged must be equal or very closely equal in sales contracts.
Answer:
A) terms of a sales contract may be modified without additional consideration.
Explanation:
Generally speaking, common law applies to everybody in an equal manner, i.e. the law is the same for everyone. While UCC rules vary depending if the parties involved are merchants or not. UCC has two standards, one that applies to merchants and another one that applies to everyone else.
Common law applies to all contracts that are not covered by UCC rules. UCC rules only apply to the sale of goods and this doesn't include money or securities. Under UCC rules, new consideration is not a requirement to modify an existing contract. E.g. a buyer places an order for 3,000 units, but the seller only has 2,000 units available. The seller can send the 2,000 units and if the buyer accepts them, a new contract is formed.
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,600 units are planned to be sold in March. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $35,760 per month, which includes depreciation of $4,100 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:________.a. $40,210.b. $44,410.c. $31,570.
Answer:
$39,720
Explanation:
Total fixed costs that represent current cash flows = $35,760 - $4,100
Total fixed costs that represent current cash flows = $31,660
Variable costs = 2,600 units * $3.10
Variable costs = $8,060
The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget will be
= $31,660 + $8,060
= $39,720
Logan Corporation issued $800,000 of 8% bonds on October 1, 2006, due on October 1, 2011. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31.
Instructions
(a) Prepare the amortization schedule (effective interest method) through October 1, 2007.
(b) Prepare the adjusting entry for December 31, 2007. Use the effective-interest method.
(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2007.
Answer:
a)
period interest interest discount amortized bond's
payment expense on BP discount carrying value
0 49,320.60 750,679.40
1 32,000 37,533.97 43,786.63 5,533.97 756,213.37
2 32,000 37,810.67 37,975.96 5,810.67 762,024.04
3 32,000 38,101.20 31,874.76 6,101.20 768,125.24
4 32,000 38,406.26 43,786.63 6,406.26 774,531.50
b)
December 31, 2017, accrued interest on bonds payable
Dr Interest expense 19,050.60
Cr Interest payable 16,000
Cr Discount on bonds payable 3,050.60
c)
total interest expense year 2007:
($37,533.97/2) + $37,810.67 + ($38,101.20/2) = $18,776.99 + $37,810.67 + $19,050.60 = $75,638.26
Explanation:
the market price of the bonds:
$800,000 / 1.05¹⁰ = $491,130.60
$32,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $259,548.80
market price = $750,679.40
discount on bonds payable $49,320.60
discount amortization first payment = (750,679.40 x 0.05) - 32,000 = 5,533.97
discount amortization second payment = (756,213.37 x 0.05) - 32,000 = 5,810.67
discount amortization third payment = (762,024.04 x 0.05) - 32,000 = 6,101.20
discount amortization fourth payment = (768,125.24 x 0.05) - 32,000 = 6,406.26
Duff Inc. paid a 2.34 dollar dividend today. If the dividend is expected to grow at a constant 1 percent rate and the required rate of return is 11 percent, what would you expect Duff's stock price to be 4 years from now?
Answer:
$24.60
Explanation:
The computation of the price for 4 years from now is shown below:
Price = Dividend ÷(Required rate of return - growth rate)
where,
Dividend is
= Dividend × (1 + growth rate)^number of years
= $2.34 × (1 + 0.01)^5
= $2.46
All the other items would remain the same
So, the price is
= $2.46 ÷ (11% - 1%)
= $24.60
The Cutting Department at Blanc Company had beginning work in process inventory of 4,000 units, transferred out 9,000 units, and had 2,000 units in ending work in process inventory. The number of units started into production by the Cutting Department during the month is
Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $402,000 on account. Of this amount, $52,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2021, is provided below.
Age Group Amount Estimated Percent
Receivable Uncollectible
Not yet due $ 32,000 4 %
0-30 days past due 10,200 6 %
31–60 days past due 7,200 12 %
More than 60 days past due 2,600 30 %
Total $ 52,000
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2021, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $400 (debit).
3. On April 3, 2022, a customer’s account balance of $500 is written off as uncollectible. Record the write-off.
4. On July 17, 2022, the customer whose account was written off in requirement 3 unexpectedly pays $100 of the amount but does not expect to pay any additional amounts. Record the cash collection.
Answer: Please see explanation for answers
Explanation:
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
Calculation
1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent Uncollectible =
4% x 32,000= $1,280
6% x 10,200=$612
12% x 7,200=$864
30% x2600=$780
Total = $3,536
The allowance for uncollectible accounts = $3,536
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously wrtten off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal to record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
A Journal Entry refers to simply a summary of the debits and also credits of the transaction entry to the Journal. When A Journal entries are important to the transaction because they allow us to sort our transactions into manageable data.
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
The formula apply Then we Estimated the Amount Uncollectible is =
Amount Receivable x Estimated Percent *Uncollectible =
4% x 32,000= $1,280
6% x 10,200= $612
12% x 7,200= $864
30% x2600= $780
Then the Total is = $3,536
The allowance for uncollectible accounts = $3,536
Journal Entry
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously written off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal entry to the record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
Find out more information about Journal entry here:
https://brainly.com/question/8913038
For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $314,000 budget; $300,800 actual. In the second quarter, budgeted sales were $381,000, and actual sales were $391,000.
Prepare a static budget report for the second quarter and for the year to date.
CROIX COMPANY
Sales Budget Report
For the Quarter Ended June 30, 2017
Second Quarter Year to Date
Product Line Budget Actual Difference Budget Actual Difference
Answer:
CROIX COMPANY
Sales Budget Report
For the Quarter Ended June 30, 2017
Second Quarter Year to Date
Product Line Budget Actual Difference Budget Actual Difference
The Edge 381,000 391,000 10,000 695,000 691,800 3,200 U
Explanation:
Croix's sales budget gives a forecast of the sales figure over the future period in order to help Croix plan its production or purchase of the newest guitar, The Edge so that customers' demand can be met and profit objectives of the company is achieved.
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 750 300 Desired inventory (units), June 30 500 250 Expected sales volume (units): Midwest Region 12,000 3,500 South Region 14,000 4,000 Unit sales price $60 $90 a. Prepare a sales budget.
Answer: please see explanation column
Explanation:
Rumble Thunder
Estimated inventory (units), June 1 750 300
Desired inventory (units), June 30 500 250
Expected sales volume (units):
Midwest Region 12,000 3,500
South Region 14,000 4,000
Unit sales price $60 $90
a) Sonic Inc. Sales Budget for June
Unit Sales Vol Unit Selling price Total Sales
Model Rumble:
Midwest Region 12000 60 $720,000
South Region 14000 60 $840,000
Total 1,560,000
Model Thunder:
Midwest Region 3500 $90 $315,000
South Region 4000 $90 $360,000
Total $675,000
Total revenue from sales 1,560,000 + $675,000 =$2,235,000
B) Sonic Inc. Production budget for June
Units Model Rumble Units Model Thunder
Expected units to be sold 26000 7500
Add: Desired ending inventory + 500 + 250
Total units required 26500 7750
Less: Beginning inventory - 750 - 300
Total units to be produced $25750 $ 7450
Calculation :
Expected units to be sold =12,000 + 14,000 = $26,000
3,500 + 4,000 = $7,500
Total units required=Expected units to be sold+ Desired ending inventory
26000 +500 =$26,500
7,500 +250= $7,750
1.1. Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
a. Profit margin
b. Equity ratio
c. Return on total assets
d. Total asset turnover
1.2. Which ratio summarizes the components applicable in 11?
a. Debt ratio
b. Profit margin
c. Return on total assets
d. Total asset turnover
2. What measure reflects the difference between current assets and current liabilities?
a. Gross margin
b. Day's sales uncollected
c. Retun on total assets
3. Which of the following short-term liquidity ratios measure how frequently a company collects its accounts? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
a. Days' sales uncollected
b. Days' sales in inventory
c. Accounts receivable turnover
d. Acid test rato
Answer:
1.1 The ratio from the list below which measures the efficiency of the operations of a company is D - Total Asset Turnover Ratio.
Explanation:
Total Asset Turn Over Ratio is calculated by dividing Net Sales by Average Total Assets.
For example, if company CDH is reporting a value of $499,650 as initial total assets and $387,656 as ending total assets. Within the same period, the company generated sales of $250,655, with sales returns of $17,000.
This means that, the asset turnover ratio for Company CDH is calculated as follows:
($250,655-$17,000)/(($387,656+$499,650)/2)
The answer is 0.52667
Thus, every dollar in total assets generates $0.52667 in sales.
Efficiency ratios are important for rating the operations of the business. They are also used by investors and lenders when conducting financial analysis of businesses to decide whether the companies are a good investment.
1.2 The component which summarises the components applicable in 1.1 is D Total Asset Turnover
2. Working capital is the variance between current assets and current liabilities.
. This is simply the capital that an organisation uses in its day-to-day business operations.
3. The short-term liquidity ratios which calculate how frequently a company collects its accounts are:
A) Days' sales Uncollected and
C) Accounts receivable turnover.
A) Days' sales Uncollected is calculated by
(Accounts receivable/Net annual credit sales) x 365
It is the number of days before receivables are collected.
The lower the ratio the more liquid the company is likely to be. High Days' Sales Uncollected Ratios are bad for business.
C) Accounts receivable turnover is the annual rate at which a business collects its average accounts receivable.
Cheers!
Ideally, in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when.
Answer:
The answer is quantified and measurable.
Explanation:
Goals need to be quantified and measurable in effective marketing planning. To determine what needs to be accomplished and when, we must put figures to it. This makes performance measurement easier where variances at the end can be analysed.
For example, one of the marketing goals for bank A might be to onboard 100 new customers every month for a year after the launching of its new mobile app.
This example is quantified and can be measured every month.
Suppose you observe the following situation: Security Beta Expected Return Pete Corp. 1.80 .190 Repete Co. 1.49 .163 a. Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the risk-free rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. 12.03%
b. 3.32%
Explanation:
The computation is shown below:
As we know that
Expected rate of return = Risk free rate of return + [Beta × Risk premium]
Let us assume Risk free rate of return be x and Risk premium be y
Now the equations are as follows
For Pete Corp
19 = x + 1.80y ...................... (1)
For Repete Corp
16.3 = x + 1.49y .....................(2)
Now Solving (1) and (2)
After solving we get
y = 8.70967741935
x = 3.3225806452
i.e Risk free rate = x = 3.32%
And, the Risk premium = 8.70967741935%
So,
Expected return on market = Risk free rate + Risk premium
= 3.3225806452 + 8.70967741935
= 12.03%
Sheridan Company prepared a 2019 budget for 150000 units of product. Actual production in 2019 was 175000 units. To be most useful, what amounts should a performance report for this company compare
Answer:
The actual results for 175,000 units with a new budget for 175,000 units.
Explanation:
To be more useful, actual results should be compared with budgeted amounts of actual production.
The actual results for 175,000 units should be compare with a new budget for 175,000 units
In an Oligopoly industry a change in price by one firm will _____ impact the other firms in the industry.
Answer:
The answer is significantly.
Explanation:
Oligopoly is a market situation in which there are few sellers, selling similar goods and services and many buyers. The barriers to entry in this market in high. Example of a oligopoly market is OPEC.
The competition amongst the few sellers is high because they are selling the same thing and a change in price by one firm will significantly affect other firms in the industry. For example, if a firm reduces the price of its goods, this creates a price war and other firms to start reducing their price to match the lower price. And if another firm increases its price, consumers will switch to competitors
Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $50,000 $31,000 $60,000 $140,000 $30,000 $311,000
Compute the payback period for this investment.
Answer:
Pay back period =3 years 4 months
Explanation:
The payback period is the estimated length of time it takes cash inflow from a project to recoup the cash outflow.
The payback period uses cash flows and not profit.
The payback period can be determined by accumulation the cash inflow consecutively to ascertain the length of time it will take the sum to equate the initial cost.
This will be done as follows:
The sum of the cash in flows for the first three years would equal
50,000 + $31,000 + $60,000 = 141,000
The balance required to equate 190,000 would be
balance = 190,000 - 140,000 = 50,000
Pay back period = 3 years + (50,000/140,000)× 12 months
= 3 years 4 months
Pay back period =3 years 4 months
Discount stores that try to keep prices as low as possible are more likely to function using ________ operations.
Answer: self service
Explanation:
Discount stores that try to keep prices as low as possible are more likely to function using self service operations.
Self-Service Operations is quite a straightforward concept whereby the individuals will have to serve themselves. An example of such is discount houses that deals with clothing.
Many managers describe performance appraisal as the responsibility that they like least. Why is this so? What could be done to improve the situation?
Answer:
Many managers describe performance appraisal as the responsibility that they like least. Why is this so?
it might be so because managers may feel that performance appraisal is not as productive as other activities, or because they lack the personal skills, or the motivation, to engage in that activity.
What could be done to improve the situation?
Managers should be taught that performance appraisal can be a very effective and productive method for the firm. When workers are praised for their work (when they deserve it), they are likely to be happier in the workplace, and it has been shown by countless studies that happier workers are also more productive.
The following data is given for the Bahia Company: Budgeted production 1,049 units Actual production 971 units Materials: Standard price per pound $1.971 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,302 Actual price paid for materials $23,169 Labor: Standard hourly labor rate $15.00 per hour Standard hours allowed per completed unit 4.3 Actual labor hours worked 5,000.65 Actual total labor costs $76,260 Overhead: Actual and budgeted fixed overhead $1,014,000 Standard variable overhead rate $27.00 per standard labor hour Actual variable overhead costs $140,018 Overhead is applied on standard labor hours. The variable factory overhead controllable variance is a.$75,397.52 unfavorable b.$75,397.52 favorable c.$27,284.90 unfavorable d.$27,284.90 favorable
Answer:
c.$27,284.90 unfavorable
Explanation:
Standard variable overhead rate =$27.00
Standard hours allowed per completed unit =4.3
Actual production unit =971
Actual variable overhead costs =$140,018
Variable factory overhead controllable variance = (Standard variable overhead rate * Standard hours allowed per completed unit * Actual production unit) - Actual variable overhead costs
Variable factory overhead controllable variance = ($27 * 4.3 * 971) - $140,018
Variable factory overhead controllable variance = $112,733.1 - $140,018
Variable factory overhead controllable variance = $27,284.9 (Unfavorable)
Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos:
Answer:
demand for pesos would fall and supply would rise. their value would decrease as a result
Explanation:
Inflation is a persistent rise in general price level.
When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.
A division of a manufacturing company has a return on investment of 24%. The division has an opportunity to accept a project that is expected to earn a return on investment of 22%. The company’s hurdle rate is 20% which of the following statements is true?
a) A division reports the following figures: Profit margin =20% Investment turnover = 0.5. The division return on investment is
b) If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $ .
Answer:
Return on Investment
The statement that is true is:
b) If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%, the company will need to earn a net income of $600,000 (30% of $2,000,000).
Explanation:
The company's Return on Investment is a financial performance measure that calculates the efficiency of the use of investment resources by dividing the returns generated by an investment by the cost of the investment during a period of time. It can be used to evaluate a divisional manager's performance based on the returns generated from the investments made in the division.
Angie Pereira and Ferro Schwartz are employees of Free Star, Inc. In February 2019. Angie's gross pay was $6000, and Ferro's gross pay was $7400. All earnings are subject to FICA-OASDI Tax of 6.296 and FICA--Medicare Tax of 1.4596. Which of the following would be included in the entry to record the salaries expense for February?
A. a credit to Salaries Expense for 5830.80
B. a credit to FICA-OASDI Taxes Payable for $830.80
C. a debit to FICA-Medicare Taxes Payable for $830.80
D. a debit to Salaries Payable to employees for $830.80
Answer:
B. a credit to FICA-OASDI Taxes Payable for $830.80
Explanation:
Free Star, Inc. In February 2019.
Angie's gross pay was $6000,
Ferro's gross pay was $7400
Total gross pay $ 13400
FICA-OASDI Tax 6.296 %
$ 13400 * 6.2% = $ 830.80
The recording of the journal entry would require a debit to FICA tax and credit to FICA tax payable .
The FICa tax is 6.2 % which equals to $ 830.80 of the two gross pays.
All the other three options are incorrect.
All else being equal, a marketing channel that has a high cost per exposure will have a ________ return on investment.
Answer:
all else being equal, a marketing channel that has a high cost per exposure will have a low return on investment
Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,307 in March. Burpee sets their prices so that they earn an average 32% gross profit on sales revenue. What is budgeted cost of goods sold for the first quarter (January, February and March)?
Answer:
Total COGS= $5,123,006.44
Explanation:
Giving the following information:
Sales:
January= $2,038,635
February= $2,581,891
March= $2,913,307
Burpee sets their prices so that they earn an average 32% gross profit on sales revenue.
We need to calculate the cost of goods sold:
January= 2,038,635*0.68= 1,386,271.8
February= 2,581,891*0.68= 1,755,685.88
March= 2,913,307*0.68= 1,981,048.76
Total COGS= $5,123,006.44
FIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
Date Transaction Number
of Units Per Unit Total
Apr. 3 Inventory 48 $150 $7,200
8 Purchase 96 180 17,280
11 Sale 64 500 32,000
30 Sale 40 500 20,000
May 8 Purchase 80 200 16,000
10 Sale 48 500 24,000
19 Sale 24 500 12,000
28 Purchase 80 220 17,600
June 5 Sale 48 525 25,200
16 Sale 64 525 33,600
21 Purchase 144 240 34,560
28 Sale 72 525 37,800
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
Dunne Co.
Schedule of Cost of Goods Sold
FIFO Method
For the Three Months Ended June 30
Purchases Cost of Goods Sold Inventory
Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
Apr. 3 $ $
Apr. 8 $ $
Apr. 11 $ $
Apr. 30
May 8
May 10
May 19
May 28
June 5
June 16
June 21
June 28
June 30 Balances $ $
2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
Record sale
Record cost
3. Determine the gross profit from sales for the period.
$
4. Determine the ending inventory cost as of June 30.
$
5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
Answer:
Dunne Co.
Schedule of Cost of Goods Sold
FIFO Method
For the Three Months Ended June 30
Purchases Cost of Goods Sold Inventory
Date Description Quantity Unit Cost Total Cost Sales
Apr. 3 Inventory 48 $150 $7,200
Apr. 8 Purchase 96 180 17,280
Apr. 11 Sale 64 500 32,000
Apr. 30 Sale 40 500 20,000
May 8 Purchase 80 200 16,000
May 10 Sale 48 500 24,000
May 19 Sale 24 500 12,000
May 28 Purchase 80 220 17,600
June 5 Sale 48 525 25,200
June 16 Sale 64 525 33,600
June 21 Purchase 144 240 34,560
June 28 Sale 72 525 37,800
June 30 Total 448 360 $92,640 $184,600
June 30 Balances 88 $240 $21,120
2. Determination of total sales and cost of goods sold and Journal Entries:
Debit Accounts Receivable $184,600
Credit Sales Revenue $184,600
To record the sales of goods on account for the period.
Debit Cost of Goods Sold $92,640
Credit Inventory $92,640
To record the cost of goods sold for the period.
3. Income Statement for determining the gross profit:
Sales Revenue $184,600
Cost of goods sold $92,640
Gross profit $91,960
4. Determination of the ending inventory cost of June 30:
Ending Inventory units = 88
Cost per unit (FIFO) = $240
Total = $21,120
5. The ending inventory would be lower if the ending inventory was valued using the Last-in, First-out (LIFO) method. The purchase price was increasing instead. Using LIFO means that ending inventory would be valued at the cost of the purchases in earlier months because of the assumption with LIFO that goods sold are from the last purchases instead of the earlier purchases.
Explanation:
Pear Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs $ 40,000 $ 56,000
Processing costs $ 37,000 $ 37,000
Equipment rental $ 13,000 $ 13,000
Occupancy costs $ 15,000 $ 22,000
Are the materials costs and processing costs relevant in the choice between alternatives A and B?
Multiple Choice
A) Only processing costs are relevant
B) Only materials costs are relevant
C) Both materials costs and processing costs are relevant
D) Neither materials costs nor processing costs are relevant
Answer: B) Only materials costs are relevant
Explanation:
When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.
In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.
Material costs on the other hand vary by the alternatives and so should be considered.
Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drinks cost of goods sold is $ ____________.
Answer:
$152,000
Explanation:
Given the data as shown below;
Opening inventory = $10,000
Purchases = $150,000
Ending inventory = $8,000
Therefore,
Juice drinks cost of goods sold = Opening inventory + Purchases - Ending inventory
= $10,000 + $150,000 - $8,000
= $152,000
You are planning to save for retirement over the next 25 years. To do this, you will invest $880 per month in a stock account and $480 per month in a bond account. The return of the stock account is expected to be an APR of 10.8 percent, and the bond account will earn an APR of 6.8 percent. When you retire, you will combine your money into an account with an APR of 7.8 percent. All interest rates are compounded monthly. How much can you withdraw each month from your account assuming a withdrawal period of 20 years
Answer:
$14,143.86 can be withdrawn each month from the account for 20 years.
Explanation:
To determine this, the first step is to use the formula for calculating the future value (FV) of ordinary annuity to calculate the FV of both stock and bond as follows:
Calculation of Future Value of Stock
FVs = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVs = Future value of the amount invested in stock after 25 years =?
M = Monthly investment = $880
r = Monthly interest rate = 10.8% ÷ 12 = 0.9%, or 0.009
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVs = $880 × {[(1 + 0.009)^360 - 1] ÷ 0.009}
FVs = $880 × 1,522.3445923122
FVs = $1,339,663.24
Calculation of Future Value of Bond
FVd = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FVd = Future value of the amount invested in bond after 25 years =?
M = Monthly investment = $480
r = Monthly interest rate = 6.8% ÷ 12 = 0.566666666666667%, or 0.00566666666666667
n = number of months = 25 years × 12 months = 300
Substituting the values into equation (1), we have:
FVd = $480 × {[(1 + 0.00566666666666667)^300 - 1] ÷ 0.00566666666666667}
FVd = $480 × 784.895879465925
FVd = $376,750.02
Calculation of the amount that can be withdrawn monthly for 20 years
To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (3)
Where;
PV = Combined present values of stock and bond investments after retirement = FVs + FVb = $1,339,663.24 + $376,750.02 = $1,716,413.26
P = Monthly withdrawal = ?
r = Monthly interest rate = 7.8% ÷ 12 = 0.65%, or 0.0065
n = number of months = 20 years * 12 months = 240
Substitute the values into equation (3) and solve for P to have:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r]
$1,716,413.26 = P × [{1 - [1 ÷ (1 + 0.0065)]^240} ÷ 0.0065]
$1,716,413.26 = P × 121.353915567094
P = $1,716,413.26 / 121.353915567094
P = $14,143.86
Therefore, $14,143.86 can be withdrawn each month from the account for 20 years.
Your supervisor instructs you to purchase 480 pens and 6 staplers for the workplace. Pens are purchased in sets of 6 for $2.45. Staplers are sold in sets of 2 for $14.95. How much will the purchase of these products cost?
Answer:
Total cost= $225.9
Explanation:
Giving the following information:
Your supervisor instructs you to purchase 480 pens and 6 staplers for the workplace.
Pens are purchased in sets of 6 for $2.45.
Staplers are sold in sets of 2 for $14.95.
First, we need to calculate the number of "packs" to buy:
Pens= 480/6= 80
Staplers= 6/2= 3
Total cost= 80*2.45 + 2*14.95= $225.9
A simple random sample of 20 observations is derived from a normally distributed population with a known standard deviation of 3.2. You may find it useful to reference the z table.
a. Is the condition that X−X− is normally distributed satisfied?
Yes
No
b. Compute the margin of error with 95% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
c. Compute the margin of error with 90% confidence. (Round intermediate calculations to at least 4 decimal places. Round "z" value to 3 decimal places and final answer to 2 decimal places.)
d. Which of the two margins of error will lead to a wider interval?
The margin of error with 95% confidence.
The margin of error with 90% confidence.
Answer:
1. It is satisfied
2. 1.4
3. 1.18
4. 95% confidence is wider
Explanation:
1. It is normally distributed since n<30
2. Margin of error with 95% confidence
= Alpha = 1 - 0.95
= O.05
Alpha/2 = 0.025
Z(0.025) = 1.960
Margin of error = z(1.960)*SD/√n
= 1.960*(3.2/√20)
= 1.960 x 0.7156
= 1.4025
Approximately 1.4
3. At 90%
Alpha = 1 -0.9
= 0.10
Alpha/2 = 0.05
Z(0.05) =1.645
E = 1.645 x 3.2/√20
= 1.645 x 0.7176
= 1.177
Approximately 1.18
4. From the calculations in 2 and 3 it is obvious that the margin of error with 95% confidence interval is wider.
