Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee salaries. Salaries were $500,000 during the period. a. Provide the journal entry for the vacation pay. b. Provide the journal entry for the pension benefit.

Answers

Answer 1

Answer:

a. Provide the journal entry for the vacation pay

Debit Vacation and Holiday expense $49,000

Credit Vacation and Holiday  payable $49,000

(To record earned Vacation and Holiday expenses)

b. Provide the journal entry for the pension benefit

Debit Pension expense $30,000

Credit Pension liability  $30,000

(Being pension benefit recognition)

Explanation:

The earned vacation and holiday expense has to be recognized in line with the accrual principle of accounting.The pension benefit was also recognized in line with the accrual principle of account. The pension plan is a contribution of 6% of employee salaries, which amounted to $500,000. So, 0.06 x 500,000 = $30,000.

Related Questions

Carlos is a 25% owner of CEBJ Builders, a company that specializes in residential construction. The other 75% of CEBJ is owned by his three brothers. During the year, Carlos spends 1,800 hours managing the operations of CEBJ. He also is the 100% owner of four rental properties and spends 125 hours a year maintaining the properties, more than any other individual. During the current year, the four properties generate a loss of $18,500. His adjusted gross income before considering the rental loss is $118,000.

What amount of the loss can Carlos deduct from the current year?

Answers

Answer:

$99,500

Explanation:

Adjusted gross income before considering the rental loss $118,000.

Less generated a loss of $18,500

Adjusted gross income $99,500

Carlos qualifies under the real estate professional exception due to the fact that he spends more than 50% of his personal service time in real property trade and the amount of time spent in real property trade is higher than 750 hours, he is as well the sole owner and spends more than 100hours.

Therefore the rental activity is not considered passive and he is allowed to offset the $18,500 loss against his active and portfolio income which is why Carlos'sadjusted gross income after considering the loss is $99,500 ($118,000 -$18,500)

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

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

Required:

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

Answers

Answer:

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

Explanation:

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

Cost of Goods Manufactured:

$

Work in process inventory, beginning $ -

Direct materials:

Direct Material Used $ 60,000

Direct labor $ 15,000

Factory overhead Applied $ 50,000

Total manufacturing costs $125,000

Total work in process during period $125,000

Work in process inventory, ending $ -24,000

Cost of goods manufactured $ 101,000

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first full year of coverage?

Answers

Answer:

$720 and $180

Explanation:

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

Premium for 3 years = $2,700

So, premium for 1 year = $2,700 ÷ 3 = $900 per year

Manufacturing operation percentage = 80%

Selling and administrative operation percentage = 20%

So, Premium for manufacturing operation = $900 × 80% = $720

And Premium for selling and admin operation = $900 × 20% = $180

Contribution Margin Variance, Contribution Margin Volume Variance, Market Share Variance, Market Size Variance Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows: Actual Budgeted Units sold 290,000 300,000 Sales $1,450,000 $1,515,000 Variable costs 652,500 636,300 Contribution margin $ 797,500 $ 878,700 Market size (in units) 1,250,000 1,200,000 Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. In your computations, round the contribution margin per unit to three decimal places. Contribution margin variance $ Unfavorable Contribution margin volume variance $ Unfavorable 2. Calculate the market share variance and the market size variance. In your computations, round the unit contribution margin to three decimal places and round the market share percentage to one decimal place (for example, .8439 would be rounded to 84.4%). Round your final answers to the nearest dollar. (CMA adapted) Market share variance $ Unfavorable Market size variance $ Favorable

Answers

Answer:

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

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

Check attachment for the table

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

Answers

Answer:

The answer is explained in the explanation section below

Explanation:

Solution

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

(2)  At this price Surplus exists.

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

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

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

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

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

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

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

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

Answers

Answer:

a) Current ratio for Kansas company is  1.475

Current ratio for Montana company is 1.814

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

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

Explanation:

                                    Current Assets           Current liabilities

Kansas Company           $ 59,000                     $ 40,000

Montana Company        $ 78,000                      $ 43,000

a) To calculate the current ratio of A company

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

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

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

Swan Company produces its product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit. The markup percentage on product cost is a.47% b.70% c.110% d.80%

Answers

Answer:

46.50%.

Explanation:

Percentage Markup = ( Desired profit x 100 ) / Total cost.

($20 × 100 ) / $43 = 46.50%.

I hope my answer helps you

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

Answers

Answer:

Check the explanation

Explanation:

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

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

Answers

Answer:

1.

Dr. Investment Account $17,000

Cr. Gain on Sale             $17,000

2.

Dr. retained Earning      $17,000

Cr. Gain on Sale             $17,000

Explanation:

1.

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

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

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

2.

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

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

Answers

Answer:

Credit to notes payable for $165000

Explanation:

Journal entries for issuance of Note Payable :

Cash Account ..... Debit $165000

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

Note:

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

On January 1, 2021, Swifty Corporation had 106000 shares of its $5 par value common stock outstanding. On June 1, the corporation acquired 10300 shares of stock to be held in the treasury. On December 1, when the market price of the stock was $13, the corporation declared a 15% stock dividend to be issued to stockholders of record on December 16, 2021. What was the impact of the 15% stock dividend on the balance of the retained earnings account?

Answers

Answer:

Decrease by $186,615

Explanation:

The impact of the 15% stock dividend on the balance of the retained earnings account is shown below:-

Shares = 106000 - 10300

= 95,700

Dividend of 15% = 95,700 × 15%

= $14,355

Value of shares = Dividend × Market price of the stock

= $14,355 × $13

= $186,615

So, the retained earning will decrease by $186,615

Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9​%. The entry to record the annual payment on December​ 31, 2021​, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.

Answers

Answer:

Option A, a debit to Interest Expense for $ 17 comma 100 is correct

Explanation:

The principal amount on 1st January 2021 needs to be established since that would be the amount left after 2018,2019,2020 principals have been repaid

Principal at 1st January 2021=$475,000-($95,000*3)=$190000

Interest on principal in 2021=$190000 *9%=$17100

Total repayment in 2021=principal plus interest=$95,000+$17,100=$ 112,100.00  

The $95,000 would be a debit to notes payable not credit hence option is wrong.

Only option A,a debit of $17,100 to interest expense is correct

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

Answers

Answer:

$1,281,200

Explanation:

Gross Corporation

Ending inventory

2019 1100000

2020 1284000/1.07 = 1200000

Ending Inventory(1100000+100000*1.07) = 1207000

2021 1450000/1.25 = 1160000

Ending inventory(1100000+60000*1.07) = 1164200

2022 1625000/1.30 = 1250000

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

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

Suppose that output (Y ) in an economy is given by the following aggregate production function: Yt = Kt + Nt where Kt is capital and Nt is the population. Furthermore, assume that capital depreciates at rate δ and that savings is a constant proportion s of income. You may assume that δ > s. 1. Suppose that the population remains constant. Solve for the steady-state level of capital per worker. 2. Now suppose that the population grows at rate n. Solve for the steady-state level of capital per worker. 3. Based on your answer to part 2) above, solve for the steady-state growth rates (in terms of n) of the following: (a) capital per worker (b) output per worker (c) capital (d) output

Answers

Answer:

Check the explanation

Explanation:

Yt = Kt + Nt

Taking output per worker, we divide by Nt

Yt/Nt = Kt/Nt + 1

yt = kt + 1

where yt is output per worker and kt is capital per worker.

a) With population being constant, savings rate s and depreciation rate δ.

ΔKt = It - δKt

dividing by Nt, we get

ΔKt/Nt = It/Nt - δKt/Nt ..... [1]

for kt = Kt/Nt, taking derivative

d(kt)/dt = d(Kt/Nt)/dt ... since Nt is a constant, we have

d(kt)/dt = d(Kt/Nt)/dt = (dKt/dt)/Nt = ΔKt/Nt = It/Nt - δKt/Nt = it - δkt

thus, Capital accumulation Δkt = i – δkt

In steady state, Δkt = 0

That is I – δkt = 0

S = I means that I = s.yt

Thus, s.yt – δkt = 0

Then kt* = s/δ(yt) = s(kt+1)/(δ )

kt*= skt/(δ) + s/(δ)

kt* - skt*/(δ) = s/(δ)

kt*(1- s/(δ) = s/(δ)

kt*((δ - s)/(δ) = s/(δ)

kt*(δ-s)) = s

kt* = s/(δ -s)

capital per worker is given by kt*

b) with population growth rate of n,

d(kt)/dt = d(Kt/Nt)/dt =

= [tex]\frac{\frac{dKt}{dt}Nt - \frac{dNt}{dt}Kt}{N^{2}t}[/tex]

= [tex]\frac{dKt/dt}{Nt} - \frac{dNt/dt}{Nt}.\frac{Kt}{Nt}[/tex]

= ΔKt/Nt - n.kt

because (dNt/dt)/Nt = growth rate of population = n and Kt/Nt = kt (capital per worker)

so, d(kt)/dt = ΔKt/Nt - n.kt

Δkt = ΔKt/Nt - n.kt = It/Nt - δKt/Nt - n.kt ......(from [1])

Δkt = it - δkt - n.kt

at steady state Δkt = it - δkt - n.kt = 0

s.yt - (δ + n)kt = 0........... since it = s.yt

kt* = s.yt/(δ + n) =s(kt+1)/(δ + n)

kt*= skt/(δ + n) + s/(δ + n)

kt* - skt*/(δ + n) = s/(δ + n)

kt*(1- s/(δ + n)) = s/(δ + n)

kt*((δ + n - s)/(δ + n)) = s/(δ + n)

kt*(δ + n -s)) = s

kt* = s/(δ + n -s)

.... is the steady state level of capital per worker with population growth rate of n.

3. a) capital per worker. in steady state Δkt = 0 therefore, growth rate of kt is zero

b) output per worker, yt = kt + 1

g(yt) = g(kt) = 0

since capital per worker is not growing, output per worker also does not grow.

c)capital.

kt* = s/(δ + n -s)

Kt*/Nt = s/(δ + n -s)

Kt* = sNt/(δ + n -s)

taking derivative with respect to t.

d(Kt*)/dt = s/(δ + n -s). dNt/dt

(dNt/dt)/N =n (population growth rate)

so dNt/dt = n.Nt

d(Kt*)/dt = s/(δ + n -s).n.Nt

dividing by Kt*

(d(Kt*)/dt)/Kt* = s/(δ + n -s).n.Nt/Kt* = sn/(δ + n -s). (Nt/Kt)

[tex]\frac{sn}{\delta +n-s}.\frac{Nt}{Kt}[/tex]

using K/N = k

[tex]\frac{s}{\delta +n-s}.\frac{n}{kt}[/tex]

plugging the value of kt*

[tex]\frac{sn}{\delta +n-s}.\frac{(\delta + n -s)}{s}[/tex]

n

thus, Capital K grows at rate n

d) Yt = Kt + Nt

dYt/dt = dKt/dt + dNt/dt = s/(δ + n -s).n.Nt + n.Nt

using d(Kt*)/dt = s/(δ + n -s).n.Nt from previous part and that (dNt/dt)/N =n

dYt/dt = n.Nt(s/(δ + n -s) + 1) = n.Nt(s+ δ + n -s)/(δ + n -s) = n.Nt((δ + n)/(δ + n -s)

dYt/dt = n.Nt((δ + n)/(δ + n -s)

dividing by Yt

g(Yt) = n.(δ + n)/(δ + n -s).Nt/Yt

since Yt/Nt = yt

g(Yt) = n.(δ + n)/(δ + n -s) (1/yt)

at kt* = s/(δ + n -s), yt* = kt* + 1

so yt* = s/(δ + n -s) + 1 = (s + δ + n -s)/(δ + n -s) = (δ + n)/(δ + n -s)

thus, g(Yt) = n.(δ + n)/(δ + n -s) (1/yt) =  n.(δ + n)/(δ + n -s) ((δ + n -s)/(δ + n)) = n

therefore, in steady state Yt grows at rate n.

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

Answers

Answer:

Check Explanation.

Explanation:

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

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

b = k^1/2.

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

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

For country A,

(a). the steady state;

∆k = 0 = y - dk.

0 = 0.15 × k^1/2 - 0.06k.

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

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

y* = 2.5

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

C* = 2.125.

Then, for COUNTRY B.

(a). ∆k = 0 = y - dk.

0 = 0.25 × k^1/2 - 0.06k.

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

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

y* = 4.167.

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

C* = 3.127.

C* = 2.125.

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

Answers

Answer:

Explanation:

We can use the following method to solve the given problem

We are given following

Annual demand,

D = 20000*12

D = 240,000 sqft

Fixed order cost, is given as

S = $ 400

Considering the unit cost, is given as

C = $ 1

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

EOQ = sqrt(2DS/H)

= √(2*240000*400/0.2)

= 30,984 sq ft

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

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

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

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

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

= $ 241,334.5

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

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

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

= 31633 sqft

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

Therefore, Q = 40,000

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

Total annual cost = $ 236,640

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

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

2) the annual cost of this policy

= $ 236,640

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

At prefeb= 20,000 sq ft

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

Holding cost, H = 0.96*20%

H= $ 0.192

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

EOQ = 31633 sqft

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

Total annual cost = $ 236,471.6

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

Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $53,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today

Answers

Answer:

Present Value= $641,494.12

Explanation:

Giving the following information:

Cash flow= $53,000 per year

Number of years= 30 years

Interest rate= 7.25%

First, we need to calculate the final value of the annuity:

FV= {A*[(1+i)^n-1]}/i

A= annual flow

FV= {53,000*[(1.0725^30)-1]} / 0.0725

FV= $5,237,351.32

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 5,237,351.32/ (1.0725^30)

PV= $641,494.12

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

Answers

Answer:

The budgeted overhead= $7,159.2

Explanation:

The budgeted Overhead cost can be determined as follow

The budgeted overhead= Fixed cost + variable cost

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

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

The budgeted cost equation = 6820  + 6.4 x

Where X represent the number of guest

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

The budgeted overhead= $7,159.2

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

Answers

Answer:

C

Explanation:

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

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

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

Answers

Answer:

The price Galla should charge is $75

Explanation:

Solution

Now

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

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

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

= $385,200

Thus,

The total cost per unit = Total cost / units

= $385,200 / 6,420 units

= $60

Hence

The selling price should charge = Cost per unit * 1.25

= $60 * 1.25

= $75

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

Answers

Answer:

Check the explanation

Explanation:

Account                      Due Date                        Number of Days Past Due

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

Bales Auto                  October 4                                 20 days

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

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

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

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

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

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

How are foreign exchange rates determined

Answers

Answer:

Currency prices can be determined in two main ways: a floating rate or a fixed rate. A floating rate is determined by the open market through supply and demand on global currency markets. ... 5 Therefore, most exchange rates are not set but are determined by on-going trading activity in the world's currency markets.

Answer: market forces for. a p e x

Explanation:

just did that bro

Which of the following scenarios are potential candidates for the Chi-square test? Check all that apply. Group of answer choices Is there a relationship between gender and pet ownership? Is there a relationship between martial status (single, married, divorced, widowed) and political party affiliation (Democrat, Independent, Republican)? Is there a relationship between amount of credit card debt and employment status (unemployed, employed part-time, employed full-time)?

Answers

Answer:

A. Is there a relationship between gender and pet ownership?

B. Is there a relationship between marital status (single, married, divorced, widowed) and political party affiliation (Democrat, Independent, Republican)?

Explanation:

The chi squared test is a test in statistics used to establish the relationship between categorical variables. It seeks to compare the observed results in an experiment to the expected results. The test assumes that the variables being compared are independent of each other.

Categorical variables are descriptive and qualitative in nature. Numerical variables, on the other hand, deal with numbers. The amount of credit card debt is a numerical value, and therefore, does not qualify as a chi squared variable.

Margie Company produces a single product and has provided the following data concerning its most recent month of operations: Selling price $ 88 Units in beginning inventory 0 Units produced 5,200 Units sold 4,900 Units in ending inventory 300 Variable costs per unit: Direct materials $ 12 Direct labor $ 23 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 161,200 Fixed selling and administrative expense $ 63,700 The total contribution margin for the month under variable costing is:

Answers

Answer:

$225,400

Explanation:

The computation of total contribution margin under variable costing is shown below:-

Sales (4900 × $88)                             $431,200

Less:Variable cost  

Direct material (4900 ×  $12)              ($58,800)  

Direct labor (4900 × 23)                    ($112,700)  

Variable manufacturing overhead

(4900 ×  2)                                            ($9,800)  

Variable selling and administrative

expenses (4900 × $5)                         ($24,500)  

Total variable expenses                     ($205,800)

Contribution margin                           $225,400

Therefore the total contribution margin under variable costing is $225,400

Wayne Industries is building a new prototype riding lawnmower especially for women. The marketing strategy for the product has been developed and presented. The lawnmower is now being tested rigorously. This step will ensure that the product meets all the CPSC product specifications and leaves little chance for any product liability issues. Which step int he new product development process is this?
A) After this stage, no changes can be made in any aspect of the product design, features, or composition.
B) At this stage, the functional features and the intended psychological characteristics are combined.
C) The new product at this stage can be distributed through a full-scale roll-out immediately.
D) The new lawnmower is at the introductory stage of the lifecycle.
E) The new-product idea is at the last stage of the development process.

Answers

Answer:

The answer is option E) The new-product idea is at the last stage of the development process.

Explanation:

The are several stages in the development of a new product idea. Beginning with initial idea generation all the way to the final evaluation stage.

The new prototype riding lawnmower especially for women designed by Wayne Industries is at the last stage of the development process.

The last stage of the development process also known as the Evaluation phase is characterized by:

Presenting the marketing strategy developed for the product.ensuring that the product meets all the CPSC product specifications and leaves little chance for any product liability issues.

Southern Rim Parts estimates its manufacturing overhead to be $318,000 and its direct labor costs to be $1,060,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $65,000 for Job 301, $90,000 for Job 302, and $175,000 for Job 303. For the year, actual manufacturing overhead was $399,000 and total direct labor cost was $834,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates.Required:a. How much overhead was assigned to each of the three jobs, 301, 302, and 303?b. What was the over- or underapplied manufacturing overhead for year 1?

Answers

Answer:

a. Job 301 = $19,500

Job 302 = $27,000

Job 303 = $52,500

b. Overhead applied for the year = $250,200

Under-applied overhead = $148,800

Explanation:

a. The computation of overhead was assigned to each of the three jobs, 301, 302, and 303 is shown below:-

Overhead application rate = Budgeted Overhead ÷ Application Base

Application base = Budgeted Overhead ÷ Budgeted Direct Labor costs

= $318,000 ÷ $1,060,000

= 0.3

Overhead assignment to jobs = Budgeted rate × Labor Cost

Job 301

= 0.3 × $65,000

= $19,500

Job 302

= 0.3 × $90,000

= $27,000

Job 303

= 0.3 × $175,000

= $52,500

b. The computation of over- or underapplied manufacturing overhead for year 1 is shown below:-

Overhead applied for the year = Total direct labor cost × Overhead rate

= $834,000 × 0.3

= $250,200

Under-applied overhead = Actual overhead - Applied overhead

= $399,000 - $250,200

= $148,800

11. a. Suppose David spends his income M on goods x1 and x2, which are priced p1 and p2, respectively. David’s preference is given by the utility function
(1, 2) = √1 + √2.
(i) Derive the Marshallian (ordinary) demand functions for x1 and x2. (25 marks)
(ii) Show that the sum of all income and (own and cross) price elasticity of demand
for x1 is equal to zero. (25 marks) b. For Jimmy both current and future consumption are normal goods. He has strictly convex and strictly monotonic preferences. The initial real interest rate is positive. If the real interest rate falls, in each of the following cases, argue what will happen to his period 2 consumption level? Clearly illustrate your argument on a graph.
(i) He is initially a borrower. (25 marks)
(ii) He is initially a lender. (25 marks)

Answers

Answer:

Explanation:

D

A Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Molding Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Data for the Assembly Department for August 2017 are: Work in process, beginning inventory: 3000 units Direct materials (100% complete) Conversion costs (40% complete) Units started during August 695 units Work in process, ending inventory: 500 units Direct materials (100% complete) Conversion costs (65% complete) Costs for August: Standard costs for Assembly: Direct materials $15 per unit Conversion costs $35.50 per unit Work in process, beginning inventory: Direct materials $12,400 Conversion costs $9450 What is the balance in ending work-in-process inventory

Answers

Answer:

Ending work-in-process inventory is $19,037.50

Explanation:

First Determine the Equivalent Units in ending work-in-process inventory in terms of direct materials and conversion costs

Direct materials ( 500 units × 100%) = 500 units

Conversion costs (500 units × 65%) = 325 units

Then determine the Value of ending work-in-process inventory

Direct materials ( 500 units × $15)         = $ 7,500.00

Conversion costs (325 units × $35.50) = $ 11,537.50

Total                                                         = $19,037.50

Conclusion

Therefore, ending work-in-process inventory is $19,037.50

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

Answers

Answer:

10.7%

Explanation:

Solution:

Recall that:

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

Employed people = 25 million

Unemployed people = 3 million

Discouraged workers = 1 million

Workers or Homemakers or retirees, or students = 1 million

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

Now,

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

= 300/28

=10.7%

Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividend by 3.10 percent per year into the foreseeable future and the current price of Oriole’s common shares is $19.65, what is the cost of common stock for Oriole? (Round intermediate calculations to 4 decimal places, e.g. 0.1555 and final answer to 2 decimal places, e.g. 15.25%.)

Answers

Answer:

Cost of common stock is 12.02%

Explanation:

The cost of common stock can be computed from share price formula given below:

share price=do*(1+g)/r-g

do is the dividend just paid which is $1.70

g is the expected dividend growth per year which is 3.10%

r is the cost of common stock which is unknown

share price is $19.65

by changing the subject of the formula:

r=do*(1+g)/share price+g

r=1.70*(1+3.10%)/19.65+3.10%

r=1.7527/19.65+3.10%

r=0.0892+3.10%=12.02%

The company's cost of capital which is also the cost of common stock is 12.02%

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