Answer and Explanation:
The journal entries are shown below;
a. Petty Cash $800
To Cash $800
(Being the establishment of the petty cash fund is recorded)
b. Office Supplies $306
Miscellaneous Selling Expense $127
Miscellaneous Administrative Expense $79
Cash Short and Over $ 16
To Cash ($800 - $272)$528
(Being the replenish of the petty cash fund is recorded)
In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holding cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Answer:
Total cost per year = $1,801,860
Explanation:
Given:
Annual demand = 12,000 units
Ordering cost = $30 per order
Inventory holding cost = $3 per year
Order quantity = 1000 units
Cost per unit of the item = $150
Find:
Total cost per year
Computation:
Total cost per year = Purchase cost + Order cost + Inventory holding cost
Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]
Total cost per year = 1,800,000 + 360 + 1500
Total cost per year = $1,801,860
Theresa is considering starting a small business. She plans to purchase equipment costing $145,000. Rent on the building used by the business will be $26,000 per year while other operating costs will total $30,000 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $80,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A) $24,000
B) $56,000
C) $80,000
D) None of these answers is correct.
Aircard Corporation tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period as if it uses a periodic inventory system. The following are the transactions for the month of July.
Units Unit Cost
July 1 Beginning Inventory 2,700 $47
July 5 Sold 1,350
July 13 Purchased 6,700 51
July 17 Sold 3,700
July 25 Purchased 8,700 57
July 27 Sold 5,700
Required:
Calculate the cost of ending inventory and cost of goods sold assuming a perpetual inventory system is used in combination with (a) FIFO and (b) LIFO.
Answer:
Aircard Corporation
Perpetual Inventory System
FIFO LIFO
Ending Inventory = $418,950 $387,450
Cost of goods sold = $545,550 $577,050
Explanation:
a) Data and Calculations:
Date Transactions Units Unit Cost Total
July 1 Beginning Inventory 2,700 $47 $126,900
July 5 Sold (1,350)
July 13 Purchased 6,700 51 341,700
July 17 Sold (3,700)
July 25 Purchased 8,700 57 495,900
July 27 Sold (5,700)
July 31 Total available 18,100 $964,500
July 31 Total units sold (10,750)
July 31 Ending Inventory 7,350
FIFO:
Cost of Ending Inventory
Date Transactions Units Unit Cost Total Balance
July 1 Beginning Inventory 2,700 $47 $126,900 $126,900
July 5 Sold (1,350) $63,450
July 13 Purchased 6,700 51 341,700 405,150
July 17 Sold (3,700) 221,850
July 25 Purchased 8,700 57 495,900 717,750
July 27 Sold (5,700) 418,950
Ending Inventory = $418,950
Cost of goods sold = $545,550 ($964,500 -$418,950)
LIFO:
Cost of Ending Inventory
Date Transactions Units Unit Cost Total Balance
July 1 Beginning Inventory 2,700 $47 $126,900 $126,900
July 5 Sold (1,350) $63,450
July 13 Purchased 6,700 51 341,700 405,150
July 17 Sold (3,700) 216,450
July 25 Purchased 8,700 57 495,900 712,350
July 27 Sold (5,700) 387,450
Ending Inventory = $387,450
Cost of goods sold = $577,050 ($964,500 -$387,450)
explain the three types of resources used in businesses
Answer:
The type of business in the production sector engaged in the processing of natural resources (animals and plants) is called an agrarian business. Types of business that are included in the agricultural sector (agriculture in the broadest sense) include rice fields, plantations, forestry, animal husbandry, and fisheries.
Explanation:
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Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 35 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
Answer and Explanation:
The computation is shown below:
The amount of the tax for the wine bottle is
= $9 per bottle - $6 per bottle
= $3 per bottle
Before the tax, the price per bottle is $7 per bottle
The Tax burden on consumers is
= $9 - $7
= $2 per bottle
And, the tax burden on producers is
= $7 per bottle - $6 per bottle
= $1 per bottle
So, the given statement is false as the impact would remain the same whether it is for producer or consumer
Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value proposition, what questions does he need to answer for a potential consumer
Answer:
Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer
Explanation:
Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer
These 3 types of questions he need to answer
Variable $100,000 $ 25,000 Fixed 150,000 75,000 Total $250,000 $100,000 What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method
Answer: $8.00
Explanation:
Details missing in question are:
These costs are for 50,000 units.
$250,000 is manufacturing cost. $100,000 is administrative cost.
The total manufacturing cost is shown to be $250,000 above.
A profit of $50,000 is needed in addition to this cost as well as the administrative cost of $100,000.
Total revenue expected is therefore:
= 250,000 + 100,000 + 50,000
= $400,000
50,000 units are to be sold so to make a revenue of $400,000, each unit should be sold for:
= 400,000 / 50,000
= $8.00
Finisher Inc. sells merchandise of $250,000 in 2020 that includes a three-year limited warranty. Warranty costs are estimated to be 1% of sales. The company incurred actual costs of $800 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Answer: See explanation
Explanation:
a. Record the warranty accrual at the time of sale in 2020.
Debit Warranty expense = $250,000 × 1% = $2,500
Credit Warranty Liability $2,500
(To record the warranty accrual)
b. Record the adjustment to the warranty accrual for actual warranty costs in 2020.
Debit Warranty Liability $800
Credit Cash and Payables $800
Research indicates that when it comes to the diversification-performance relationship, the highest economic performance occurs with a/an:
Answer:
Related diversification strategy.
Explanation:
Related diversification is a business strategy in which a business enter a new industry which has some similarities with a company's existing business industry. The highest economic benefit will be achieved by a business if it enters into related diversification strategy.
A borrows 10,000 from B and repays with 40 quarterly installments at a 4% annual effective rate. After 6 years, B sells the rights to future payments to C, at a price which yields C 6% annual effective over the remaining installment periods. What price did C pay
Answer:
$4,303.68
Explanation:
Quarterly payment = $10,000 / 32.835 (PVIFA, 1%, 40 periods) = $304.55
After 6 years, the principal due = $4,483
Present value of an annuity = payment x PVIFA = $304.55 x 14.13126 (PVIFA, 1.5%, 16 periods) = $4,303.68
The difference is not significant since the remaining payments are not many, and the increase in quarterly rate is only 0.5%
Two people are trying to work out a trade. One person has apples and the
other has pineapples. They check a supermarket and see that apples sell
for $1 each and pineapples sell for $2 each. They agree to trade two
apples for every pineapple.
This situation best illustrates which function of money?
Answer:
Measure of Value
Explanation:
The function of money being illustrated is known as a Measure of Value. This is basically when an item's monetary values are compared when making a trade. In this scenario, both the apples and pineapples are being compared based on their monetary value. Since a single pineapple is worth twice the amount of money that a single apple is worth. Then that means that a fair trade would be two apples for every pineapple which would be a trade of the same amount of monetary value.
Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019?
Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses
Answer:
c. 30,160 mattresses
Explanation:
At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available
The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units
January sales items to be produced in January=29000-7000
January sales items to be produced in January=22,000
Also, we need to produce 20% of February sales in January which would serve as the closing inventory
total production in January=22,000+(40,800*20%)
total production in January=. 30,160 mattresses
what is the technology seed? what are the main parameters of value and the functions?.
Answer:
Seed technology is technology in which superior crop seed development, plant varieties, seed production, seed marketing, quality control, seed psychology distribution, seed certification, etc.
These parameters are the seed technology variable and function.
Explanation:
The key points of interest and helpfulness of MPV are the different items and drive customer purchasing options.
Why would they say that they're important?
GEN TRIZ is a major vehicle for guaranteeing a distance from the market view and profit from MPV. Even the highest specialized arrangements risk a limited financial value without this view. A limited emphasis on MPV guarantees that the only focus of small R&D development assets is to improve customers' issues rather than to improve everything.
A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called Group of answer choices a bond indenture. a bond debenture. trading on the equity. a term bond.
Answer:
a bond indenture
Explanation:
a bond debenture can be described as the legal contract of a bond
Features of a bond debenture
Reason why the bond was created the interest rate to earned the method by which interest is calculated Maturity datescovenantsa bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company
If a company selects either of Project 1 or Project 2 (or both), then either Project 3 or Project 4 (or both) must also be selected. Which of the following constraints enforce this condition?
a. X1 + X2 ≤ 2(X3 + X4)
b. X1 + X2 ≤ X3 + X4
c. X1 − X3 = X2 − X4
d. X1 + X2 + X3 + X4 ≤ 2
Answer:
b. X1 + X2 ≤ X3 + X4
Explanation:
b. X1 + X2 ≤ X3 + X4
The situation tells us that the sum of both 1 and 2 must be equal to the sum of 3 and 4 which is true, because if both projects 1& 2 are selected then the both projects 3 & 4 must also be selected.
The rest of the choices are wrong because
a. X1 + X2 ≤ 2(X3 + X4)
The sum of projects 1& 2 is not less than 2 times sum of projects 3 & 4 .
c. X1 − X3 = X2 − X4
If we leave project 3 then project 4 cannot be left out.
d. X1 + X2 + X3 + X4 ≤ 2
any two projects out of the four cannot be chosen. 1 must be chosen from 1&2 and the other from 3 &4.
Assume the credit terms offered to your firm by your suppliers are 2.7/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Answer: 49.02%
Explanation:
The cost of the trade credit will be calculated thus:
Amount when discount is availed will be: = 100-2.7 = 97.3
Discount rate = 2.7
Interest rate per period = 2.7/97.3 2.77%
Number of Days = 30-5 = 25
Therefore, the EAR will be calculated as:
= [(1+2.77%)^(365/25)] - 1
= 49.02%
t is often costly to obtain the information necessary to make good decisions. yet your own interests can be best served by rationally weighing all options available to you. This requires informed decision making. does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
Answer:
The answer is below
Explanation:
1. Yes, making uninformed decisions is irrational. This is because it will cost the individuals making uninformed decisions to lose money in the process. Such individuals may also lose another important aspect concerning their decision, such as technological advantage, political assistance, social benefits, economic privilege, etc.
2. To determine how much information is the right amount is to ensure you continue to acquire information as long as the benefit of the additional information exceeds the additional costs. Otherwise, it is no longer the right amount anymore.
The following costs were incurred in August: Direct Materials $18,000 Direct Labor $21,000 Manufacturing Overhead $33,000 Selling Expenses $14,000 Administrative Expenses $19,000 Conversion costs during the month of August totaled: a. $39,000. b. $105,000. c. $54,000. d. $51,000.
Answer:
C. $54,000
Explanation:
Given the following information,
Direct labor = $21,000
Manufacturing overhead = $33,000
Conversion cost refers to the sum of direct labor and manufacturing overhead
Conversion cost = Direct labor + Manufacturing overhead
Conversion cost = $21,000 + $33,000
Conversion cost = $54,000
Suppose net exports and net capital outflow are in equilibrium in a small open economy. If foreign governments adopt expansionary fiscal policy, in the small open economy the real exchange rate ____________ and net exports ____________. g
Answer:
the small open economy the real exchange rate DEPRECIATES and net exports INCREASE.
Explanation:
If the government adopts an expansionary monetary policy, then the country's currency will depreciate since a higher interest rate will result in a lower value according to the PPP thoery. When a currency depreciates, the exports become cheaper for foreign countries, so they increase. While the imports become more expensive and they decrease.
Susan sued her former employer for age, race, and gender discrimination. She claimed $200,000 in damages for loss of income, $300,000 for emotional harm, and $500,000 in punitive damages. She settled the claim for $700,000. As a result of the settlement, Susan must include in gross income:
Incomplete question. The options:
a. $700,000.
b. $500,000.
c. $490,000 [($700,000/$1,000,000) × $700,000].
d. $0.
e. None of these.
Answer:
d. $0.
Explanation:
Yes, according to information found on the IRS (internal revenue services) website, a taxpayer is not expected to include claims from any settlements received in their gross income statement.
The statement reads, "IRC Section 104(a)(2) permits a taxpayer to exclude from gross income "the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or physical sickness."
Annuity due. Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1 comma 300 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $14 comma 778 . What is the implied monthly discount rate for the rent? If Reg is earning 1.5 % on his savings monthly, should he pay by month or make the one-time payment?
Answer:
a. The implied monthly discount rate for the rent is 0.843% (10.115%/12)
b. He should pay by month because he will earn 1.5% on his savings and pay 0.843% interest monthly.
Explanation:
a) Monthly payments at the start of the month = $1,300
One-time payment at the beginning of the lease = $14,778
Present Value 14778
Residual Value 0
Lease Term 0 years 12 months
Monthly Payment 1300
Result
Interest/Return Rate 10.115%
Total of 12 Monthly Payments $15,600.00
Total Interest $822.00
If Reg is earning 1.5% on his savings monthly, he will earn $21,957:
Annuity factor for 12 months at 1.5% = 16.89
Total of Reg's savings at the end of 12 months = $21,957 ($1,300 * 16.89)
Raj & company has fixed costs of $32,500, its
contribution ratio is 65%, and is selling its
product for $20 per unit. Its contribution margin
per unit is
A. $15
B. $13
C. $18
D. Cannot calculate
Answer:
Unitary contribution margin= $13
Explanation:
Giving the following information:
Contribution margin ratio= 65%
Selling price per unit= $20
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= Contribution margin ratio*selling price
Unitary contribution margin= 0.65*20
Unitary contribution margin= $13
The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
Direct method
Explanation:
Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices $40,000. $65,000. $49,000. $45,000.
Answer:
$65000
Explanation:
Below is the calculation:
To find the net cash from the operating activity, we are required to add depreciation, accounts payable and accounts receivables.
Net income of the company = $50000
Add- expenses of depreciation = 5000
Add - Increase in accounts payable = 3000
Add - Decrease in accounts receivable = $7000
Thus net cash from operating activity = 50000 + 5000 + 3000 + 7000 = $65000
Rye Company has provided the following information: Weighted average number of outstanding common shares, 192,000 Net income, $441,600 Number of authorized common shares, 390,000 Number of treasury shares, 23,000 If Rye has issued 215,000 shares, what is Rye's earnings per share (EPS)
Answer:
$2.30
Explanation:
Calculation to determine what is Rye's earnings per share (EPS)
Using this formula
Earnings per share = Net income ÷ Weighted average number of outstanding shares
Let plug in the formula
Earnings per share= $441,600 ÷ (215,000 shares issued - 23 000 shares in treasury)
Earnings per share= $441,600 ÷192,000
Earnings per share= $2.30
Therefore Rye's earnings per share (EPS) is $2.30
An increase in interest rates will help increase the future value of a portfolio because the cash flows produced by the portfolio: a. will increase the maturity value of the bond. b. will decrease the yield to maturity of the bond. c. can be used to recall high-rate bonds. d. can be reinvested at higher rates of return. e. will generate cash to pay future coupon interest.
Answer:
d. can be reinvested at higher rates of return.
Explanation:
Option d. can be reinvested at higher rates of return.
The interest rates on the portfolio is the yield that a person receives on his investment. This yield he gets periodically, therefore amount received can be used to generate further yields by reinvesting it into higher interest paying investments.
ales $3,700 Current assets $4,500 Current liabilities $960 Costs 2,400 Fixed assets 5,200 Long-term debt 3,620 Taxable income $1,300 Equity 5,120 Taxes (21%) 273 Total $9,700 Total $9,700 Net income $1,027 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent. What is the external financing needed
Answer:
$2,088
Explanation:
Calculation to determine the external financing needed
First step is to calculate the Addition to retained earnings
Sales $4,810
($3700*1.30)
Costs $3,120
($2,400*1.30)
Taxable income $1,690
($4,810-$3,120)
Taxes $355
($1,690*21%)
Net income $1,335
($1,690-$355)
Less:Dividends $801
($1,335*60%)
Addition to retained earnings $534
($1,335-$801)
Second step is to calculate the Total assets
Total assets=$9,700*1.30
Total assets=$12,610
Third step is to calculate the Total equity
Total equity =5,120+Addition to retained earnings
Total equity=5,120+$534
Total equity=$5,654
Fourth step is to calculate Current liabilities
Current liabilities =$960*1.30
Current liabilities=$1,248
Fifth step is to calculate the Total liabilities
Total liabilities=Current liabilities+Long term debt
Total liabilities=$1,248+$3,620
Total liabilities=$4,868
Now let determine the External financing needed
Using this formula
External financing needed=Total assets-(Total equity+Total liabilities)
Let plug in the formula
External financing needed=$12,610-($5,654+$4,868)
External financing needed=$12,610-$10,522
External financing needed=$2,088
Therefore the external financing needed is $2,088
In order to stay calm in emergency situations, dispatchers and EMT's set aside their emotions during a crisis. After the crisis has concluded, the employee often talks about the situation to let out the emotions withheld previously. Which emotion regulation does this best describe
Answer:
Cognitive reappraisal
Explanation:
In simple words, The term "cognitive reappraisal" relates to a flexible regulation technique that uses cognitive control and executive functioning to reinterpret inputs or events in the surrounding in order to alter their interpretation as well as psychological connotation.
Thus, from the above we can conclude that the correct answer is cognitive reappraisal.
If 20,000 units in ending inventory are 75% complete with respect to direct materials and 60% complete as to conversion costs, then the equivalent units of production for direct materials are ________ and for conversion costs are _________. The weighted-average method is used.A. 12,000 and 12,000B. 15,000 and 12,000C. 20,000 and 20,000D. 15,000 and 15,000
Answer:
B. 15,000 and 12,000
Explanation:
The computation of the equivalent units of production is given below;
For direct material
= 20,000 units × 75%
= 15,000 units
For conversion cost
= 20,000 × 60%
= 12,000 units
Hence, the option b is correct
So, the same should be considered
Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks fourth among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coca-Cola would continue to earn a $300 million profit. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued: (1) PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets, or (2) Coca-Cola could acquiesce and each firm maintain its current 50/50 split of the cola market and split the lemon-lime market 30/70 (PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively, if PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced and split the markets as listed above. If you were a manager at PepsiCo, would you try to convince your colleagues that introd
$275 million and 227 dollar million
