Answer:
$128,900
Explanation:
Cost of goods sold calculation
Opening Finished goods inventory $32,400
Add cost of goods manufactured $122,900
Less Closing Finished goods inventory ($26,400)
Cost of goods sold $128,900
therefore,
The cost of goods sold for the year is $128,900.
Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:May$134,000June155,000July169,000All sales are on account. Sixty-five percent of sales are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month fol-lowing the sale.Prepare a schedule indicating cash collections from sales for May, June, and July
Answer:
Pet Place Supplies Inc.
Schedule of Cash from Sales for May, June, and July:
May June July
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
Explanation:
a) Data and Calculations:
May June July
Projected credit sales $134,000 $155,000 $169,000
Cash collections:
60% month of sale $80,400 $93,000 $101,400
30% ffg month of sale 40,200 46,500
10% second month 13,400
Total cash collections $80,400 $133,200 $161,300
Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.
Review Later
a) $19,500
b) $33,000
c) $30,000
d) $20,000
Answer:
b) $33,000
Explanation:
Capital Expenditure = $20,000
Salvage Value in % = 10%
Useful Life = 4 Years
Salvage Value = Salvage Value% * Capital Expenditure
Salvage Value = 10% * 20,000
Salvage Value = $2,000
Annual Depreciation = (Capital Expenditures - Salvage Value) / Useful Life
Annual Depreciation = ($20,000 - $2,000) / 4
Annual Depreciation = $18,000 / 4
Annual Depreciation = $4,500
Depreciation of 2023E = Depreciation Pre 2020E + Depreciation on capital expenditures in 2020E + Depreciation on capital expenditures in 2021E + Additional Depreciation on capital expenditures in 2022E + Additional Depreciation on capital expenditures in 2023E
Depreciation of 2023E = $15,000 + $4,500 + $4,500 + $4,500 + $4,500
Depreciation of 2023E = $33,000
Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs. It has the following information about its two service departments and two production departments, Cutting and Assembly:
Costs Square Feet Number of Employees
Janitorial Department $450,000Â Â 100Â Â Â Â Â Â 20Â Â Â Â Â Â Â
Cafeteria Department 200,000Â Â 10,000Â Â Â Â Â Â 10Â Â Â Â Â Â Â
Cutting Department 1,500,000Â Â 2,000Â Â Â Â Â Â 60Â Â Â Â Â Â Â
Assembly Department 3,000,000Â Â 8,000Â Â Â Â Â Â 20Â Â Â Â Â Â
The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is: _________
a. 75%
b. 18.2%
c. 22.2%
d. 25%
Answer:
Pone Hill Company
The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is: _________
d. 25%
Explanation:
a) Data and Calculations:
Costs Square Feet Number of Employees
Janitorial Department $450,000 100 20
Cafeteria Department 200,000 10,000 10
Cutting Department 1,500,000 2,000 60
Assembly Department 3,000,000 8,000 20
Janitorial departments costs = square footage service
Cafeteria department costs = number of employees
Cost Allocation:
Janitorial Cafeteria Cutting Assembly Total
Direct costs $450,000 $200,000 $1,500,000 $3,000,000 $5,150,000
Janitorial (450,000) 225,000 45,000 180,000 0
Cafeteria (425,000) 318,750 106,250 0
Total allocated costs $1,863,750 $3,286,250 $5,150,000
Allocation of costs:
Janitorial:
Cafeteria = $225,000 ($450,000 * 10,000/20,000)
Cutting = $45,000 ($450,000 * 2,000/20,000)
Assembly = $180,000 ($450,000 * 8,000/20,000)
Cafeteria:
Cutting = $318,750 ($425,000 * 60/80)
Assembly = $106,250 ($425,000 * 20/80)
Percentage usage of the Cafeteria Department by the Assembly = 25% ($106,250/$318,750 * 100)
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $7; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $3; and fixed selling and administrative costs, $263,000. The company sells its units for $48 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 9,500 There were no variances. The income (loss) under absorption costing is
Answer:
Favaz
The income (loss) under absorption costing is
= $41,000.
Explanation:
a) Data and Calculations:
Variable manufacturing cost per unit, $7
Fixed manufacturing costs, $60,000
Variable selling and administrative costs per unit, $3
Fixed selling and administrative costs, $263,000
Selling price per unit = $48
Planned production in units = 10,000
Actual production in units = 10,000
Number of units sold = 9,500
Ending inventory = 500 (10,000 - 9,500)
Income Statement
Sales revenue ($48 * 9,500) $456,000
Cost of production:
Variable manufacturing $70,000 ($7 * 10,000)
Fixed manufacturing costs, 60,000
Total cost of production $130,000
Less Ending inventory 6,500 ($13 * 500)
Cost of goods sold 123,500
Gross profit $332,500
Expenses:
Variable selling and administrative
costs per unit, ($3 * 9,500) $28,500
Fixed selling and
administrative costs, 263,000
Total expenses $291,500
Net income $41,000
Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: a. Paper used for the magazine b. Wages of printing machine employees c. Glue used to bind magazine d. Maintenance on printing machines
Answer:
a. Paper used for the magazine = prime cost (P)
b. Wages of printing machine employees = both (B
c. Glue used to bind magazine = prime cost (P)
d. Maintenance on printing machines = conversion cost (C)
Explanation:
prime cost (P), conversion cost (C), or both (B) are cost of a manufacturing business.
Why is it important to eliminate debt as soon as possible?
calls for establishing cost reduction targets for products or services that an organization is currently providing to customers. A. Kaizen costing B. Process reengineering C. Target costing D. Activity-based costing
Answer:
A. Kaizen costing
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
Kaizen costing refer to calls for establishing cost reduction targets with respect to products or services that an organization is currently providing to customers. The word "Kaizen" has a Japanese origin and it simply means continuous improvement to a thing.
You want to take out a $125,000 mortgage. The interest rate on the mortgage is 5%, and the loan is for 30 years. How much will your monthly payments be
Answer: $671.03
Explanation:
The monthly payment will be an annuity because it will be constant. The loan amount will be the present value of the loan.
Periodic interest rate of loan = 5%/12 = 5/12%
Loan period = 30 * 12 months = 360 months
Present value of annuity = Annuity * ( 1 - ( 1 + rate) ^ -number of periods) / rate
125,000 = Annuity * ( 1 - ( 1 + 5/12%)⁻³⁶⁰) / 5/12%
125,000 = Annuity * 186.2816170
Annuity = 125,000 / 186.2816170
= $671.03
Answer:
Answer on the picture
Explanation:
Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. Required
1. Compute the total bond interest expense over the bonds’ life.
2. Prepare an effective interest amortization table for the bonds’ life.
3. Prepare the journal entries to record the first two interest payments.
Answer:
Hence the answer is given as follows,
Explanation:
If a property will produce net cash flow that grows at a rate of 1.5% per year in perpetuity, and the opportunity cost of capital is 12%, then what is the "cap rate" (net cash flow / property value) for the property?
(a) 8%.
(b) 10%.
(c) 10.5%.
(d) 12%.
Answer:
(c) 10.5%.
Explanation:
Calculation to determine what is the "cap rate
Using this formula
x 1/r-g
Let plug in the formula
1/12-1.5
Finley Company
End-of-Period Spreadsheet
For the Year Ended December 31
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 48,000 48,000
Accounts
Receivable 18,000 18,000
Supplies 6,000 6,000
Equipment 57,000 57,000
Accumulated Depreciation 18,000 18,000
Accounts Payable 25,000 25,000
Wages Payable 6,000 6,000
Common Stock 30,000 30,000
Retained Earnings 3,000 3,000
Dividends 3,000 3,000
Fees Earned 155,000 155,000
Wages Expense 63,000 63,000
Rent Expense 27,000 27,000
Depreciation
Expense 15,000 15,000
Totals 237,000 237,000 105,000 155,000 132,000 82,000
Net Income (Loss) 50,000 50,000
155,000 155,000 132,000 132,000
The entry to close Dividends would be:_____.
a. debit Retained Earnings, $3,000; credit Common Stock, $3,000.
b. debit Common Stock, $3,000; credit Retained Earnings, $3,000.
c. debit Dividends, $3,000; credit Retained Earnings, $3,000.
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Answer:
d. debit Retained Earnings, $3,000; credit Dividends, $3,000.
Explanation:
The journal entry to close the dividend account should be
Retained earnings Dr $3,000
To Dividend $3,000
(being the closing of the dividend account is recorded)
here the retained earning is debited as it decreased the stockholder equity and dividend is credited as it is closed
The firm's fixed costs are $60 000, variable cost per unit is $15 and selling price per unit is $20. The contribution margin per unit is: Group of answer choices $5 $15 $20 $35 g
Answer:
See below
Explanation:
With regards to the above, the contribution margin is computed as;
Contribution margin per unit = Selling price per unit - Variable cost per unit
Selling price per unit = $20
Variable cost per unit = $15
Then,
Contribution margin per unit = $20 - $15
Contribution margin per unit = $5
Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard direct labor rate is $6 per hour. During March, the company used 30,000 hours for producing 80,000 units and paid $6.25 per hour. Calculate the direct labor rate variance.
Answer:
See below
Explanation:
Given the above information, we will apply the formula below to compute direct labor rate variance.
Direct labor rate variance =
(SR - AR) × AH
Stanadard (Rate) SR = $6
Actual Hour (AR) = $6.25
Actual Hour (AH) = 30,000
Then,
Direct labor rate variance
= ($6 - $6.25) × 30,000
= -$0.25 × 30,000
= -$7,500
= $30,000 Unfavorable
It is unfavourable because the actual rate is more than the budgeted rate.
A local restaurant has promised to provide a combination of hamburger meal and hot dog meal at a local fundraiser. They have promised no fewer than a total of 100 meals. Their capacity is a maximum of 200 meals. The restaurant management has decided that number of hamburger meals cannot be less than the number of hotdog meals. The cost of a hamburger meal is $3 whereas the cost of a hotdog meal is $2. The restaurant wants to minimize their cost. How many hamburger and hotdog meals should they produce
Answer:
Minimize Z = 3x + 2y
Explanation:
Let x represent hamburger meal and let y represent hot dog meal. The objective is to minimize the total cost. The objective function will be
Z = 3x + 2y
The maximum capacity of restaurant is 200 meals while it has minimum cap for 100 meals.
Amazon Corporation has preferred stock outstanding that pays a $11.45 annual dividend. It price is $147. What is the required rate of return (yield) on the preferred stock?
Answer:
7.79%
Explanation:
Calculation to determine the required rate of return (yield) on the preferred stock
Using this formula
Cost of preferred stock=Annual Dividend per share/Current price of preferred stock
Let plug in the formula
Cost of preferred stock=$11.45/$147
Cost of preferred stock=0.0779*100
Cost of preferred stock=7.79%
Therefore the required rate of return (yield) on the preferred stock is 7.79%
If the subtotal of the income statement debit column is $250,000, the subtotal of the income statement credit column is $300,000, and the total of the Statement of Retained Earnings debit column is $475,000, what is the beginning balance in Retained Earnings
Answer:
$425,000
Explanation:
Calculation to determine the beginning balance in Retained Earnings
First step is to prepare the Income Statement
Revenues $300,000
Less Expenses ($250,000)
Profit $50,000
Now let calculate the beginning balance in Retained Earnings
Using this formula
Beginning balance in Retained Earnings= Statement of Retained Earnings debit column -Income Statement Profit
Let plug in the formula
Beginning balance in Retained Earnings=$475,000-$50,000
Beginning balance in Retained Earnings=$425,000
Therefore the beginning balance in Retained Earnings is $425,000
rt, a $0.73 per share cash dividend was declared by the board of directors for it common stock. On 12/31, the date of declaration, there were 98,000 shares authorized, 59,000 shares issued, and 8,000 Treasury shares. On the date of the dividend declaration, what amount will Walmart record into their dividend account
Answer:
$36,792
Explanation:
Missing word "At Walmart, the board of directors declared a $0.73"
Outstanding stockholder = Issued stockholder - Treasury stock
Outstanding stockholder = 59,000 shares - 8,600 shares
Outstanding stockholder = 50,400 shares
Amount of Dividend = Declared per share cash dividend * Outstanding stockholder
Amount of Dividend = 50,400 shares * $0.73
Amount of Dividend = $36,792
So therefore, on the date of the dividend declaration, $36,792 shall be recorded by Walmart into their dividend account.
Do government statisticians calculate GDP by simply adding up the total sales of all business firms in one year? Explain.
Answer:
No
Explanation:
No, because the gross domestic product is determined by encompassing the final product. If the total sales are used to determine the GDP then the false value of GDP will come up because the problem of double counting will arise. Many firms sell their goods to other firms which is intermediate goods for the other firms.
At an activity level of 9,300 machine-hours in a month, Curt Corporation's total variable production engineering cost is $766,320 and its total fixed production engineering cost is $191,040. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 9,600 machine-hours in a month
Answer:
$102.3 per machine hour
Explanation:
We can compute the total production engineering cost per hour by using the following equation;
Cost per machine hour = (Fixed cost + Variable cost) / Total machine hours
But first, we need to calculate variable cost at 9,600 hours;
= $766,320 × 9,600hr / 9,300hr
= $791,040
Now, cost per machine hour
= $191,040 + $791,040 / 9,600hr
= $982,040 / 9,600hr
= $102.3 per machine hour
A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
Group of answer choices.
A. the supply curve, resulting in a lower equilibrium price.
B. the supply curve, resulting in a higher equilibrium price.
C. the demand curve, as consumers try to economize because of the shortage.
D. the demand curve, resulting in a price ceiling in the market.
Answer:
B. the supply curve, resulting in a higher equilibrium price.
Explanation:
In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.
An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.
Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
Indicate whether the following instruments are examples of money market or capital market securities.
a. U.S. Treasury bills
b. Long-term corporate bonds
c. Common stocks
d. Preferred stocks
e. Dealer commercial paper
Answer and Explanation:
In the Money Market Securities, it is treated as the short-term securities that means they are traded for short-term period i.e. less than one year. It has the less risk also the return is also very less but the liquidity is very rich. Examples - treasury bills, commercial papers etc
While on the other hand, the capital market securties are traded for the long term i.e. more than one year. It contains the high risk also the return is very high. Examples - stocks, bonds, debentures
So based on the above explanation, the classification is as follows
a. Money market securities
b. capital market securities
c. capital market securities
d. capital market securities
e. money market securities
You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.25 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?
Answer:
The answer is "1.75"
Explanation:
The portfolio is equally weighted with three parts, which each weighs 33,33%. The risk-free asset (Rf) is available worldwide and beta 0 is given for the market portfolio.
[tex]Return \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Beta \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Probability (Pi)\\\\\text{Risk free Return (Rf)} \ \ \ \ \ \ \ \ \ \ \ 0 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\Stock 1\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1.25 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\Stock 2\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ ? \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 33.33\%\\\\[/tex]
[tex]\text{Portfolio Beta = (Pi Rf * Beta Rf) + (Pi Stock1 * Beta Stock1) + (Pi Stock2 * Beta Stock2)}\\\\1 = (33.33\% \times 0) + (33.33\% \times 1.25) + (33.33\% \times x)\\\\1 = 0 + 0.416625 + 0.3333x\\\\1 - 0.416625 = 0.3333x\\\\0.583375 = 0.3333x\\\\x =\frac{0.583375}{0.3333}\\\\x = 1.75[/tex]
Sheffield Corp. has a materials price standard of $2.00 per pound. 4900 pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 4900 pounds, although the standard quantity allowed for the output was 4000 pounds. Sheffield Corp.'s materials quantity variance is:_____.
a. $1980 U.
b. $1800 F.
c. $1800 U.
d. $1980 F.
Answer:
a. $1,980 U
Explanation:
We will compute the direct materials quantity variance using the formula below.
Direct materials quantity variance =
(Standard quantity allowed - Actual quantity of materials) × Materials price standard
Fixing in the values, we'll have;
Direct materials quantity variance
= (4,000 pounds - 4,900 pounds) × $2.20 per pound
= -900 pounds × $2.20 per pound
= -$1,980
= $1,980 U
Darius, Inc. has the following income statement (in millions): DARIUS, INC. Income Statement For the Year Ended December 31, 2012 Net Sales $300 Cost of Goods Sold 120 Gross Profit 180 Operating Expenses 44 Net Income $136 Using vertical analysis, what percentage is assigned to Cost of Goods Sold? Group of answer choices 30% 40% 100% None of the above
Answer:
40%
Explanation:
Calculation to determine what percentage is assigned to Cost of Goods Sold
Using this formula
Cost of Goods Sold percentage=
Cost of Goods Sold /Net Sales
Let plug in the formula
Cost of Goods Sold percentage=$120/$300*100
Cost of Goods Sold percentage=0.40*100
Cost of Goods Sold percentage=40%
Therefore the percentage assigned to Cost of Goods Sold is 40%
The following units of a particular item were available for sale during the calendar year:
Jan. 1 Inventory 4,000 units at $40
Apr. 19 Sale 2,500 units
June 30 Purchase 4,500 units at $44
Sept. 2 Sale 5,000 units
Nov. 15 Purchase 2,000 units at $46
The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method.
Answer:
The cost of goods sold for eachs ale and the inventory balance after each sale, assuming the LIFO (last-in, first-out) method:
Cost of goods sold Ending Inventory
Apr. 19 Sale $100,000 $60,000
Sept. 2 Sale $218,000 $40,000
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total Balance
Jan. 1 Inventory 4,000 $40 $160,000
Apr. 19 Sale (2,500) (100,000) $60,000
June 30 Purchase 4,500 $44 198,000 258,000
Sept. 2 Sale (5,000) (218,000) 40,000
Nov. 15 Purchase 2,000 $46 92,000 132,000
Cost of goods sold: Ending Inventory
April 19: = 2,500 * $40 = $100,000 = 1,500 * $40 = $60,000
Sept 2: = 4,500 * $44 + 500 * $40 = 1,000 * $40 = $40,000
= $198,000 + $20,000
= $218,000
Southwest Airlines wants to raise $20 million to finance the renovation of their corporate offices, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
a. It could issue $20 million in stocks.
b. It could sell $20 million in bonds.
c. It could borrow $20 million from a bank.
d. It could choose either A or B.
Answer:
D
Explanation:
Direct finance is when a company or individual borrows money directly from the financial market without the aid of a financial intermediary.
Examples include :
issuing bondsissuing sharesIndirect finance is when a company or individual borrows money through a financial intermediary. for example, borrowing from a bank
What is my level of education if I just finished 10th grade?
11th grade because that's the grade above
Linda believes that employees can view work as being as natural as rest or play, and therefore the average person can learn to accept, and even seek, responsibility. Linda's belief is best described by ______________.
Answer: Theory Y
Explanation:
Douglas McGregor came up with this theory of labor motivation that proposes that people are motivated internally to work hard and so need little push to actually work.
They are like this because they have come to view work as being a natural occurrence just like rest or play. Because it is now natural to them, they are able to learn to accept and even seek responsibility. Managers prefer such workers.
Lot’s Wife Manufacturing produces rear-view video systems for buses. The firm’s cost function is TC = 2,000 + 120 Q. If the systems sell for $145, what is the break-even rate of production?
Answer:
80
Explanation:
in this question we have the cost function to be
TC = 2,000 + 120 Q.
breakeven point is at total cost = total revenue
total revenue = p*q
= 145 *Q= 145Q
tc = total cost = 145Q
145Q = 2000 + 120Q
We collect like terms from this equation above
145Q-120Q= 2000
25Q = 2000
divide through by 25
Q = 2000/25
q = 80
the breakeven rate of production is 80 quantities.
Cliff Company traded in an old truck for a new one. The old truck had a cost of $290,000 and accumulated depreciation of $87,000. The new truck had an invoice price of $293,000. Huffington was given a $200,000 trade-in allowance on the old truck, which meant they paid $93,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck
Answer:
203,000
Explanation:
Is the answer to this question
