Answer:
APU
Journal Entries:
December 1, 2017:
Debit Accounts receivable $2,320,000
Credit Sales Revenue $2,320,000
To record the sale of goods on account.
March 1, 2018:
Debit Cash $2,384,000
Credit Accounts receivable $2,320,000
Credit Gain from Foreign Exchange $64,000
To record the receipt of cash, including the gain from forex.
Explanation:
a) Data and Analysis:
December 1, 2017: Accounts receivable $2,320,000 Sales Revenue $2,320,000 (1,600,000 * $1.45)
March 1, 2018: Cash $2,384,000 (1,600,000 * $1.49) Accounts receivable $2,320,000 Gain from Foreign Exchange $64,000 (1,600,000 * ($1.49 - $1.45)
Forsyth Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. During the year, the company produced and sold 10,000 units at a price of $155 per unit. Its standard cost per unit produced is $125 and its selling and administrative expenses totaled $245,000. Forsyth does not have any variable manufacturing overhead costs and it recorded the following variances during the year:
Materials price variance $6,800 F
Materials quantity variance $10,500 U
Labor rate variance $3,800 U
Labor efficiency variance $4,700 F
Fixed overhead budget variance $2,800 F
Fixed overhead volume variance $12,300 F
Required:
a. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
b. Prepare an income statement for the year.
Answer:
a. Cost of goods sold will decrease by $12,300.
b. Net income = $67,300
Explanation:
a. When Forsyth closes its standard cost variances, the cost of goods sold will increase (decrease) by how much?
This can be determined by calculating the net variance as follows:
Forsyth Company
Calculation of Net Variance
Details Amount ($)
Materials price variance (F) 6,800
Materials quantity variance (U) (10,500)
Labor rate variance (U) (3,800)
Labor efficiency variance (F) 4,700
Fixed overhead budget variance (F) 2,800
Fixed overhead volume variance (F) 12,300
Net variance 12,300
Since the net variance of $12,300 is positive which is favorable, this implies that the cost of goods sold will decrease by $12,300.
b. Prepare an income statement for the year.
The income statement for the year can be prepared as follows:
Forsyth Company
Income Statement for the Year
Details $ $
Sales (10,000 * $155) 1,550,000
Cost of goods sold (COGS):
Standard COGS (10,000 * $125) (1,250,000)
Net variance 12,300
Net Cost of goods sold (1,237,700)
Gross margin 312,300
Selling and administrative expenses (245,000)
Net income 67,300
On Jan. 1, 2018, your cousin, Laura, purchased one $1,000, 5-year semiannual bond with a coupon rate of 8%. The yield of the bond was 8% at the time. How much did Laura pay for the bond?
Answer:
the amount pay for the bond is $1,000
Explanation:
The computation of the amount pay for the bond is shown below:
Given that
Future value be $1,000
NPER is 5 × 2 = 10
RATE = 8% ÷ 2 = 4%
PMT = $1,000 × 8% ÷ 2 = $40
The formula is given below:
=-PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $1,000
Hence, the amount pay for the bond is $1,000
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $962,000 and sales for the year total $10,910,000. The allowance account before adjustment has a credit balance of $13,000. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $13,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $41,600. The allowance account before adjustment has a debit balance of $9,000. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $9,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $74,700. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Answer:
Providing for Doubtful Accounts
The amount of the adjusting entry to provide for doubtful accounts are:
a) = $68,825
b) = $28,600
c) = $36,275
d) = $83,700
Explanation:
a) Data and Calculations:
Accounts receivable balance = $962,000
Sales for the year = $10,910,000
Allowance account before adjustment = $13,000 (credit)
Estimated Bad Debt Expense = 3/4 of 1% of Sales
= 3/4 * 1% * $10,910,000
= $81,825
Bad Debt Expense = $68,825 ($81,825 - $13,000)
b) Allowance account before adjustment = $13,000 (credit)
Estimated doubtful accounts = $41,600
Bad Debts Expense = $28,600 ($41,600 - $13,000)
c) Allowance account before adjustment = $9,000 (debit)
Estimated Bad Debt Expense = 1/4 of 1% of Sales
= 1/4 * 1% * $10,910,000
= $27,275
Bad Debt Expense = $36,275 ($27,275 + $9,000)
d) Allowance account before adjustment = $9,000 (debit)
Estimated doubtful accounts = $74,700
Bad Debts Expense = $83,700 ($74,700 + $9,000)
The adjusting entry is:
Debit Bad Debts Expense
Credit Allowance for Doubtful Accounts
With the amount of the adjusting entry in each case
Define ethics and law and show how they are different and similar.
Answer: The law sets minimum standards of behavior while ethics set maximum standards. Laws are created and enforced by governments based on society's ethics to mediate our relationships with each other and to protect their citizens.
K Company estimates that overhead costs for the next year will be $3,204,000 for indirect labor and $900,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 90,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 5 direct labor hours
Answer:
$228
Explanation:
Calculation to determine how much overhead would be assigned to a product requiring 5 direct labor hours?
Using this formula
Overhead=Indirect labor +Factory utilities/DL hours *5
Let plug in the formula
Overhead=$3,204,000+$900,000/90,000*5
Overhead=$4,104,000/90,000*5
Overhead=$228
Therefore how much overhead would be assigned to a product requiring 5 direct labor hours will be $228
A two-to-three-page written interview (doubled space, 1” margins, Times New Roman-12 font). Conduct an in-person, video telecom, or telephonic interview with at least one manager and describe (1) how they became a successful manager, (2) what lessons did they learn along the way and (3) how do they continue to develop their skills to meet the ever-changing business environment. Ensure you begin your paper by introducing the manager, to include: brief work history, current place of business, position, education, and professional recognitions.
Answer:
sry need the points
Explanation:
Fruit Computer Company makes a fruit themed computer. Variable costs are $220 per unit, and fixed costs are $32,000 per month. Fruit Computer Company sells 500 units per month at a sales price of $300. The company believes that it can increase the price if the computer quality is upgraded. If so, the variable cost will increase to $240 per unit, and the fixed costs will rise by 50%. The CEO wishes to increase the company's operating income by 25%. Which sales price level would give the desired results
Answer:
Fruit Computer Company
The sales price level that would give the desired results is:
= $356 per unit
Explanation:
a) Data and Calculations:
Variable costs per unit = $220
Fixed costs per month = $32,000
Monthly sales units = 500 units
Selling price per unit = $300
Before Change After Change
Sales revenue $150,000 $178,000 ($168,000 + $10,000)
Variable costs 110,000 120,000
Fixed costs 32,000 48,000
Total costs $142,000 $168,000
Operating income $8,000 $10,000 ($8,000 * 1.25)
The sales price level that would give the desired results is $356 ($178,000/500). This represents an increase of 18.7% ($56/$300 * 100).
If price is less than the average variable cost of a representative firm in a competitive industry in short-run:_________
A. there will be exit from the industry immediately.
B. the firms in the industry should shut down and produce no output
C. the firms in the industry are just earning a normal rate of return.
D. the firms should produce a level of output in which marginal cost is equal to price.
E. the industry is in long-run equilibrium.
Answer:
I think the answer is "D"
Explanation:
hope it helps :)
Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected:
Annual sales......................................................50,000 bottles
Projected selling and administrative costs.....$8,000
Desired profit.....................................................$80,000
The target cost per bottle is:__________
Answer:
The answer is "0.4".
Explanation:
[tex]\\\to \text{Total Cost of Goods Sold = Sales revenue - Desired profit}[/tex]
[tex]= (2\times 50,000) - 80,000\\\\= 1,00,000 - 80,000\\\\= 20,000[/tex]
Calculating the target cost per bottle:
[tex]= \frac{\text{Total cost of goods sold}}{ \text{units sold}}\\\\= \frac{20,000}{50,000}\\\\= \frac{2}{5}\\\\= 0.4[/tex]
An income statement shows Multiple Choice an organization's profitability over a period of time. a company's assets, liabilities, and equity. how much income each employee earned. how much income the CEO earns per year. a company's variable costs at a particular point in time.
Answer:
an organization's profitability over a period of time.
Explanation:
The income statement records a company's income and expenses in a financial year. It is used for determining if a company is earning a profit or a loss
The balance sheet records the company's assets, liabilities, and equity. A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a point in time.
Owners equity also known as the Statement of Changes in Owner's Equity is an example of a financial statement. It records the owners equity and changes to the owners equity during a financial year.
Pale Company owns 90% of the outstanding common stock of Shale Company. On January 1, 2014, Shale Company sold equipment to Pale Company for $300,000. Shale Company had purchased the equipment for $450,000 on January 1, 2006 and has been depreciating it over a 10 year life by the straight-line method. The management of Pale Company estimated that the equipment had a remaining life of 5 years on January 1, 2014. In 2014, Pale Company reported $225,000 and Shale Company reported $150,000 in net income from their independent operations.
Required:
A. Prepare in general journal form the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2014 and 2015 consolidated statements workpapers. Pale Company uses the cost method to record its investment in Shale Company.
B. Calculate equity in subsidiary income for 2014 and noncontrolling interest in net income for 2014.
Answer:
Equipment (Dr.) $300,000
Cash (Cr.) $300,000
Accumulated depreciation (Dr.) $360,000
Cash (Dr.) $300,000
Equipment (Cr.) $450,000
Gain on disposal (Cr.) $210,000
Explanation:
Depreciation for equipment is [ $450,000 / 10 years ] * 8 years = $360,000
B. equity in subsidiary income for 2014 is $150,000 * 90% = $135,000
NCI is $150,000 - $135,000 = $15,000.
Money markets trade securities that: _______________
I. mature in one year or less.
II. have little chance of loss of principal.
III. must be guaranteed by the federal government.
a. I and III only
b. I only
c. I and II only
d. I, II, and III
Han Products manufactures 29,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is:
Direct materials $3.70
Direct labor 12.00
Variable manufacturing overhead 2.30
Fixed manufacturing overhead 9.00
Total cost per part $27.00
An outside supplier has offered to sell 29,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $79,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.
Required:
What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
Answer:
Financial advantage of accepting supplier's offer = $21,000
Explanation:
Relevant costs saved by outsourcing production:
Direct materials $3.70
Direct labor $12.00
Variable manufacturing overhead $2.30
Fixed manufacturing overhead $9.00 * 1/3 = $3
Total cost per part $21.00
Total savings per year = $21 * 29,000 = $609,000
Additional rental income = $79,000
Total = $688,000
Cost of purchasing 29,000 parts = $23 * 29,000 = $667,000
Financial advantage of accepting supplier's offer = $21,000
Kiwi Plc sold an antique painting which had been purchased inJanuary 1996 for £21,000. It was sold for £4,200 in January 2021. The proceeds were received net of auction fees of £650. What is Kiwi Plc's allowable loss?
Answer:
$17,450
Explanation:
The antique painting that was bought in January 1996 was sold for $21,000
It was sold for 4,200 in January 2021
It received a net auction fee of 650
Therefore the allowable loss can be calculated as follows
= 21,000-4200+650
= 17,450
Hence the allowable loss is $17,450
1. Center of the World. The Ecuadorian sucre (S) suffered from hyper-inflationary forces throughout 1999. Its value moved from S5,000/$ to S25,000/$. What was the percentage change in its value?2. Reais Reality. The Brazilian reais (R$) value was R$1.80/$ on Thursday, January 24, 2008. Its value fell to R$2.39/$ on Monday, January 26, 2009. What was the percentage change in its value?
Answer:
1- The percentage change in the value of the Ecuadorian Sucre was an increase of 400%.
2- The change in the percentage of the value of the Brazilian Real was a decrease of 32.77% of its value.
Explanation:
1- Given that the Ecuadorian sucre (S) suffered from hyper-inflationary forces throughout 1999, and its value moved from S5,000 / $ to S25,000 / $, to determine what was the percentage change in its value, the following calculation:
5000 = 100
25000 = X
25000 x 100/5000 = X
2500000/5000 = X
500 = X
500 - 100 = 400
Therefore, the percentage change in the value of the Ecuadorian Sucre was an increase of 400%.
2- Given that the Brazilian reais (R $) value was R $ 1.80 / $ on Thursday, January 24, 2008, and its value fell to R $ 2.39 / $ on Monday, January 26, 2009, to determine what was the percentage change in its value the following calculation must be performed:
1.80 = 100
2.39 = X
2.39 x 100 / 1.8 = X
239 / 1.8 = X
132.77 = X
132.77 - 100 = 32.77
Therefore, the change in the percentage of the value of the Brazilian Real was a decrease of 32.77% of its value.
what service do you get from district administrative office?
Answer:
they ensure that there is maintenance of law and order
by mostly dealing with calamities
sorry if am wrong
Selected data from the ledger of Beck Co., after adjustments, on September 30, the end of the fiscal year, are listed as follows:
Accounts Receivable $39,120
Prepaid Insurance $4,680
Accumulated Depreciation 60,540
Note Payable 77,750
Administrative Expenses 90,000
Retained Earnings 25,000
Common Stock 65,000
Salaries Payable 3,060
Cost of Goods Sold 550,000
Sales 950,000
Dividends 65,000
Selling Expenses 102,000
Interest Revenue 10,000
Supplies 3,125
Office Equipment 82,700
Required:
Prepare a single-step income statement.
Answer:
Beck Co.
Single-step Income Statement
For the year ended September 30
Sales $950,000
Interest Revenue 10,000
Total revenue $960,000
Total cost and expenses:
Cost of Goods Sold 550,000
Administrative Expenses 90,000
Selling Expenses 102,000
Total costs $742,000
Net income $218,000
Explanation:
a) Data and Calculations:
Accounts Receivable $39,120
Prepaid Insurance $4,680
Supplies 3,125
Office Equipment 82,700
Accumulated Depreciation 60,540
Note Payable 77,750
Salaries Payable 3,060
Common Stock 65,000
Retained Earnings 25,000
Dividends 65,000
The chapter suggests that one way to work effectively with different personalities is to treat everyone with respect. How might a leader deal with a subordinate who is perpetually rude, insensitive, and disrespectful to others?
Answer:
Kindly check explanation.
Explanation:
A strong point of a leader is the ability to be able to deal with different personalities. However, for a surbodinate who exhibits perpetual attitude of rudeness and insensitivity, I opine that it is essential that such individual is called up for a one - on - one meeting to call his/her attention to such unprofessional attitude at work, why such attitude is undesirable and it's effect on the organization. During the meeting, the leader could ask if the surbidibate needed help on ways to curtail such attitude as he his willing to help. Then, the individual should be observed to see if there is graduka changes in behavior after the meeting.
Stacy Cool wants to invest her money to earn at least 14%. A friend who is interested in investments has suggested her to buy a bond issued by the Buckeye Bravo Company that will mature in seven years. It has a face value of $1,000, pays an annual coupon of $110, and currently sells for $950. Should she buy this bond
Answer:
no
the yield to maturity is 12% which is less than 14%
Explanation:
To determine if Stacy should buy the bond, determine the yield to maturity of the bond
yield to maturity can be determined using a financial calculator
Cash flow in year 0 = -950
Cash flow in year 1 - 6 = 110
Cash flow in year 7 = 110 + 1000
YTM = 12.1%
The YTM is less than the minimum return she wants. So, she should not buy the bond
To determine YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
To determine YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel; $40,000 on seed, fertilizer, and pesticides; and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations. What is the family's accounting cost? What is the family's economic cost? Could the family's economic cost ever exceed its accounting cost? Why or why not?
Answer:
Accounting Cost
Accounting costs refers to the explicit costs which ar the actual costs related to the business venture. In this case that would be:
= Fuel costs + Seed costs + Equipment
= 25,000 + 40,000 + 25,000
= $90,000
Economic cost
This includes the accounting costs and then adds the implicit costs which are the opportunity costs of choosing the current business venture. In this case it is the $20,000 they could have been making working at other occupations.
= Accounting cost + Salary foregone
= 90,000 + 20,000
= $110,000
Economic costs will always be higher than Accounting costs because they include both the accounting costs and opportunity costs.
Tucker Company's Work in Process account decreased by $1,000, while its Finished Goods Inventory account increased by $500. Assuming total manufacturing costs were $5,000, what was the company's cost of goods sold amount?
Answer:
$5500.
Explanation:
The computation of the cost of goods sold is shown below:
Let us assume beginning WIP be $2000
So,
ending WIP is
= ($2000 - $1000)
= $1000
And,
Let us assume the beginning finished goods be $1000
So, the ending finished goods is
= ($1000 + $500)
= $1500
Now as we know that
Cost of goods manufactured = Total manufacturing cost + Beginning WIP - Ending WIP
= $5000 + $2000 - $1000
= $6000
Now
cost of goods sold=Cost of goods manufactured+Beginning finished goods-Ending finished goods
= $6000 + $1000 - $1500
=$5500.
An organization's job structure consists of relative pay for different functions and different levels of responsibility.
a. True
b. False
Answer:
a). True
Explanation:
The given statement asserts a true claim that the job structure of an organization comprises of corresponding pay scales for the different employees performing different activities and functions according to the levels of authority or leadership they have been provided. The job structure is the aspect that establishes the hierarchy or of various ranks and positions in which the company is organized to aptly manage the running of the business and its associated activities successfully and efficiently. Thus, the statement is true.
What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment
Answer:
$882.03
Explanation:
Interest rate used is 7.23%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 to 12 = 58
cash flow in year 13 = 1058
I = 7.23
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $4 per unit, Direct labor, $2 per unit, Variable overhead, $3 per unit, and Fixed overhead, $160,000. The company produced 20,000 units, and sold 15,000 units, leaving 5,000 units in inventory at year-end. What is the value of ending inventory under absorption costing
Answer: $85,000
Explanation:
Find out the cost of per unit of inventory under absorption costing:
= Direct materials + Direct labor + Variable overhead + Fixed overhead per unit
= 4 + 2 + 3 + 160,000 / 20,000 units
= 4 + 2 + 3 + 8
= $17 per unit
If 5,000 units are left, the value of those units are:
= 5,000 * 17
= $85,000
The following information is from Princeton Company's comparative balance sheets.
At December 31 Current year Priro year
Common stock, $10 par value $124,000 118,000
Paid—in capital in excess of par 585,000 351,000
Retained earnings 331,500 305,500
The company's net income for the current year ended December 31 was $57,000.
Required:
Write down the T-accounts to calculate the cash received from the sale of its common stock during the current year.
Answer:
cash received = $ 240,000
Explanation:
On calculating the common stock $10 par
Beg. balance - $ 118,000
$6,000 - Issuance of common stock
Thus the ending balance = $124,000
On calculating the paid in capital in excess of par
Beg. balance - $ 351,000
$ 234,000 - Issuance of common stock
Thus the end balance - $ 585,000
Therefore,
The cash received - $ 240,000
Dunbar sold 640 units of inventory during the month. Ending inventory assuming weighted-average cost would be: (Round weighted-average unit cost to 4 decimal places and final answer to the nearest dollar amount.)
Answer:
$428.13
Explanation:
Note The missing word have been attached as picture below
Weighted average cost per unit = [(450*$2.18) + (370*$2.62)] / (450 + 370)
Weighted average cost per unit = ($981 + $969.4) / 820
Weighted average cost per unit = $1950.4 / 820
Weighted average cost per unit = 2.378536585365854
Weighted average cost per unit = $2.3785
Ending inventory unit = 450 + 370 - 640
Ending inventory unit = 180
Value of ending inventory = $2.3785 * 180 units
Value of ending inventory = $428.13
Margin of Safety a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $fill in the blank 1 2. fill in the blank 2 % b. If the margin of safety for Canace Company was 20%, fixed costs were $1,875,000, and variable costs were 80% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3
Answer and Explanation:
The computation is given below:
a
Margin of safety in dollars is
= $1,200,000 - $960,000
= $240,000
As a percentage of sales is
= $240,000 ÷ $1,200,000
= 20%
b
Break-even in sales dollars is
= $1,875,000 ÷ (1 - 0.8)
= $9,375,000
Actual sales (dollars) is
= $9,375,000 ÷ (1 - 0.2)
= $11,718,750
In this way it should be determined
Which of the following food borne illness has a preventative vaccine
A. E.coli
B.norovirus
C. Hep. A
D. Shigella
Answer:
C. Hep. A
Explanation:
From the available options, Hep. A is preventable with a vaccine. The vaccine was created in 1995. It is administered to individuals in two seperate doses and usually done with a time span of 6 months between dose. Having both doses administered helps prevent the individuals from the Hep. A virus long term. Like most vaccines, this one has a 95% effectiveness for preventing the virus from affecting the individual's body.
Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type. What price should you be willing to pay for this stock?A) $12.50.
B) $24.86.
C) $43.48.
D) $57.50.
Answer:
$24.86
Explanation:
The estimated stock of Zephyrl is $50
This is for a period of 5 years
The rate of return is 15%
Therefore the price that will be paid for this stock can be calculated as foloes
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Hence the price that will be paid for the stock is $24.86
Investors with 30 per cent of the voting stock of a corporation, interested in a seat on the board of directors, had better have __________ voting privileges. a. straight b. cumulative c. proxy d. limited
Answer:
B)cumulative
Explanation:
