Question Completion:
a) raw materials
b) work in process
c) finished goods
d) cost of goods sold
e) selling expense
Answer:
The Devon Motor Company
The cost of batteries that would appear in each of the following accounts on April 30th:
a) raw materials = $32,000
b) work in process = $60,000
c) finished goods = $162,000
d) cost of goods sold = $378,000
e) selling expense = $8,000
Total cost of batteries purchased = $640,000
Explanation:
a) Data and Calculations:
Beginning inventory = 0
Purchase of batteries = 8,000 at $80 = $640,000
Used batteries = 7,600
Ending inventory = 400 at $80 = $32,000 raw materials
Used batteries = 7,600:
Selling expenses = 100 * $80 = $8,000
Work in process = 7,500
Ending WIP = (7,500 - 6,750) * $80 = $60,000
Finished goods = 90% 6,750 * $80 = $540,000
Ending inventory 30% 2,025 * $80 = $162,000
Cost of goods sold 70% 4,725 * $80 = $378,000
The balance sheets of Davidson Corporation reported net fixed assets of $340,000 at the end of 2016. The fixed-asset turnover ratio for 2016 was 3.0, and sales for the year totaled $1,440,000. Net fixed assets at the end of 2015 were:_________
a) $760,000.
b) $480,000.
c) $620,000.
d) None of these answer choices are correct.
Answer:
$620,000
Explanation:
Calculation to determine what Net fixed assets at the end of 2015 were:
$1,440,000 / Average fixed assets
$1,440,000 / $480,000=3.0
Net fixed assets =[(340,000 + x) / 2] = $480,000
Solve for x
Net fixed assets= $620,000
Therefore Net fixed assets at the end of 2015 were:$620,000
Crane Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016 Raw materials inventory $210000 $160000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2017, $700000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000. The total raw materials available for use during 2017 for Crane Company is
Answer:
$910,000
Explanation:
Given the above information, total raw materials available for use during 2017 is calculated below;
= Beginning raw materials + Purchases
Beginning raw materials = $210,000
Purchases = $700,000
Then,
Total raw materials available for use during 2017 for Crane company
= $210,000 + $700,000
= $910,000
MC Qu. 97 K Company estimates that overhead costs for... K Company estimates that overhead costs for the next year will be $2,890,000 for indirect labor and $850,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. Of 85,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 5 direct labor hours
Answer:
Allocated MOH= $220
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (2,890,000 + 850,000) / 85,000
Predetermined manufacturing overhead rate= $44 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 44*5
Allocated MOH= $220
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the break-even point in composite units.
Answer:
1,350 units
Explanation:
The computation of the break-even point in composite units is shown below;
Composition contribution margin per unit is
= ($75 - $35) × 5 + ($95 - $40) × 2
= 310
Now break-even point in composite units is
= Fixed cost ÷ Composition contribution margin per unit
= $418,500 ÷ 310
= 1,350 units
Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong. The group of managers that Bill discovers is an example of:
A) an informal interest group
B) a formal group
C) A fun group
D) a quality group.
The correct answer is B) a formal group.
The group of managers that Bill discovers is an example of a formal group.
During their visit to a large manufacturing business, Bill discovers a formal group. It is a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees.
When we are referring to an organization, a formal group can be understood as a workgroup that is formed by design, depending on a hierarchical composition. The members of this group have specific tasks according to the work they perform in the company.
Usually, these groups are formed based on the experience of their members because they want to accomplish goals in a more effective way and to improve the decision-making process of difficult issues.
Imagine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ________ will generally pay more for life insurance than ________.
Answer:
magine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ____older people____ will generally pay more for life insurance than ___younger people_____.
Explanation:
Setting life insurance premiums take into consideration the age of the insured (insurance policyholder). Other factors considered in setting premiums are gender, medical history, hobby, and career. Insurance premiums are periodic payments which the insured is expected to make to the insurance company (insurer) to cover the cost of the financial service being rendered and contribute to the defined benefits that will be paid upon expiration or in the event of the risk occurring.
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $22,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $445. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense
Answer:
The appropriate answer is "$22,305".
Explanation:
The given values are:
Estimated uncollectible,
= $22,750
Credit balance in allowance,
= $445
Now,
The bad debt expense will be:
= [tex]Estimated \ uncollectible-Credit \ balance \ in \ allowance[/tex]
By substituting the values, we get
= [tex]22750-445[/tex]
= [tex]22305[/tex] ($)
During the year, Wright Company sells 500 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 40 $ 68 $ 2,720 May. 5 Purchase 270 71 19,170 Nov. 3 Purchase 220 76 16,720 530 $ 38,610 Calculate ending inventory and cost of goods sold for the year, assuming the company uses specific identification. Actual sales by the company include its entire beginning inventory, 250 units of inventory from the May 5 purchase, and 210 units from the November 3 purchase.
Answer:
Wright Company
Cost of goods sold = $36,430
Ending inventory = $2,180
Explanation:
a) Data and Calculations:
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 270 71 19,170
Nov. 3 Purchase 220 76 16,720
Total available for sale 530 $ 38,610
Specific identification of Sales of 500 units:
Cost of goods sold:
Jan. 1 Beginning inventory 40 $ 68 $ 2,720
May. 5 Purchase 250 71 17,750
Nov. 3 Purchase 210 76 15,960
Total 500 $36,430
Cost of goods sold = $36,430
Ending inventory:
May. 5 Purchase 20 71 $1,420
Nov. 3 Purchase 10 76 760
Total 30 $2,180
Ending inventory = $2,180
MC Qu. 111 A company has an overhead application... A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $23,000
Answer:
$28,520
Explanation:
Calculation to determine How much overhead would be allocated to a job if it required total labor costing $23,000
Using this formula
Overhead=Total Labor Cost x Overhead Application Rate
Let plug in the formula
Overhead=$23,000 x 1.24
Overhead= $28,520
Therefore How much overhead would be allocated to a job if it required total labor costing $23,000 will be $28,520
Chik Chik Company showed the following balances at the end of its first year: Cash $ 3,000 Prepaid insurance 4,700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Common stock 1,400 Dividends 700 Revenues 22,000 Expenses 17,500 What did Chik Chik Company show as total credits on its trial balance
Answer: $30,400
Explanation:
Accounts with credit balances are revenue, liabilities and stock or equity.
The credit balances above are:
Accounts payable, Notes payable, common stock, revenues,= 2,800 + 4,200 + 1,400 + 22,000
= $30,400
An important issue when developing a new service or changing an existing one is the question of how different the new service is compared to the current services offered by the firm. Which of the following is not a general factor to consider when determining this?a. Similarity to current servicesb. Similarity of expected customers to current customersc. Similarity to current processesd. Financial justification
Answer:
Option b: Similarity of expected customers to current customers
Explanation:
Designing Service Products
This is an essential requirements when developing a new service or changing an existing one. There is this view or notion of how different the new service is compared to the current services offered by the firm. There are three general factors to consider when determining this. It includes:
1. Similarity to current service
2. Current process
3. Financial justification
Characteristics of Product Design Process
It includes:
1. The companies often bring new products to market
2. There is an integral to success
3. It differs significantly depending on the industry etc.
The Major factors in design strategy includes;
1. Cost
2. Quality
3. Time to market
4. Customer satisfaction
5. Competitive advantage
what is isomers give examples
Answer:
In chemistry, isomers are molecules or polyatomic ions with identical molecular formulas — that is, same number of atoms of each element — but distinct arrangements of atoms in space. Isomerism is existence or possibility of isomers. Isomers do not necessarily share similar chemical or physical properties.
Explanation:
I don't know
Portfolio Expected Return An investor puts 32% of their money in Stock 1 with a 10.15% expected return, 27% of their money in Stock 2 with a 10.95% expected return and the rest in Stock 3 with an expected return of 13.55%. What is the portfolio's expected return
Answer:
the expected return of the portfolio is 11.76%
Explanation:
The computation of the expected return of the portfolio is shown below:
= Respective return × Respective weights
= 0.32 × 10.15 + 0.27 × 10.95 + 0.41 × 13.55
= 3.248% + 2.9565% + 5.5555%
= 11.76%
Hence, the expected return of the portfolio is 11.76%
The same should be considered and relevant
A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year
Answer:
$138,000
Explanation:
Particulars Amount
Finished goods inventory, January 1 $68,000
Add: Cost of goods manufactured $147,000
Total $215,000
Less: Finished goods inventory, December 31 $77,000
Cost of goods sold $138,000
A machine is under consideration that would cost $28,600, save $6,400 per year in cash operating costs, and have an expected life of 13 years with zero salvage value. The simple rate of return is approximately: (Round your answer to 2 decimal places.)
Answer:
22.38%
Explanation:
Which of the following entries could be considered as an adjusting entry? Group of answer choices Debit to Cash and Credit to Revenues Debit to Cash and Credit to Liabilities Credit to Cash and Debit to Expenses Debit to Expenses and Credit to Liabilities
Answer:
The entry that could be considered as an adjusting entry is:
Debit to Expenses and Credit to Liabilities
Explanation:
For example, to accrue salaries expenses in an accounting period when the cash payments have not been made, the Salaries Expenses account is debited with the amount of the unpaid salaries while the corresponding credit entry goes to the Salaries Payable account. Depreciation expense is also debited while the corresponding credit entry is made in the accumulated depreciation account.
Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 12 percent.
Year Board Game DVD
0 -$1,200 -$2,700
1 690 1,750
2 950 1,570
3 210 800
Required:
a. What is the payback period for each project?
b. What is the NPV for each project?
c. What is the IRR for each project?
d. What is the incremental IRR?
Answer:
a. Payback period:
Board game:
= Year before payback + Amount left / Cashflow in year of payback
= 1 + (1,200 - 690) / 950
= 1.54 years
Game DVD:
= 1 + (2,700 - 1,750) / 1,570
= 1.61 years
b. NPV
Board Game
= 690 / 1.12 + 950 / 1.12² + 210 / 1.12³ - 1,200
= $322.88
Game DVD
= 1,750 / 1.12 + 1,570 / 1.12² + 800 / 1.12³ - 2,700
= $683.52
c. IRR
Look at attached picture
Board Game IRR = 29%
Game DVD IRR = 28%
d. Incremental IRR
Look at attached picture
= 27%
($ millions) Beverage Division Cheese Division Invested assets, beginning $ 2,669 $ 4,462 Invested assets, ending 2,597 4,404 Sales 2,685 3,929 Operating income 353 638 rev: 11_25_2020_QC_CS-242542 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year
Answer:
Beverage Division Cheese Division
1. Return on investment 12.89% 18.25%
2. Profit margin 13.15% 16.24%
3. Investment turnover 1.02 0.89
Explanation:
a) Data and Calculations:
Beverage Division Cheese Division
Invested assets, beginning $ 2,669 $ 4,462
Invested assets, ending 2,597 4,404
Average invested assets $ 2,633 $ 4,433
Sales 2,685 3,929
Operating income 353 638
Return on investment 12.89% 18.25%
Profit margin 13.15% 16.24%
Investment turnover 1.02 0.89
Return on investment = Profit margin/Investment turnover
Beverage = 13.15%/1.02 = 12.89%
Cheese = 16.24%/0.89 = 18.25%
Profit margin = Operating income/Sales * 100
Beverage = $353/2,685 * 100 = 13.15%
Cheese = $638/3,929 * 100 = 16.24%
Investment turnover = Sales/Average invested assets
Beverage = $2,685/$2,633 = 1.02
Cheese = $3,929/$4,433 = 0.89
Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded
Answer:
Debit : Work in Process - Direct Labor $24,600
Debit : Work in Process - Indirect Labor $4,300
Credit : Salaries and Wages Payable $28,900
Explanation:
The Journal entry accumulated costs in work in process as shown above.
Duerr company makes a $67,000, 90-day, 10% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
Answer:
the maturity value of the loan is $68,675
Explanation:
The maturity value of the loan is shown below:
= Loan amount + interest charged
= $67,000 + ($67,000 × 10% × 90 days ÷ 360 days)
= $67,000 + $1,675
= $68,675
hence, the maturity value of the loan is $68,675
Assume the following information for a merchandising company: Net operating income $ 19,000 Variable selling expenses $ 25,000 Cost of goods sold $ 295,000 Fixed administrative expenses $ 50,000 Fixed selling expenses $ 40,000 Variable administrative expenses $ 5,000 What are the company's sales
Answer:
$434,000
Explanation:
The net Operating income is $19,000
Variable selling expenses is $25,000
Cost of goods sold is $295,000
Fixed administrative expenses are $50,000
Fixed selling expenses is $40,000
Variable administrative expenses is $5000
The company sales can be calculated as follows
= 19,000+25,000+40,000+5000+50,000+295,000
= $434,000
Purple Lemon Fruit Company has two divisions: one is very risky, and the other exhibits significantly less risk. The company uses its investors’ overall required rate of return to evaluate its investment projects. It is most likely that the firm will become:
Answer: b. Riskier over time, and its value will decrease
Explanation:
Because the company is using the investor's required rate of return instead of one that takes into account the riskiness of the two division, you find that risk is not being adequately accounted for.
This would lead to a situation where the company becomes riskier because it is not accounting for its risk properly. With higher risk, the company will be unable to seek funding easily which would lead to lower investments being undertaken and an overall decrease in company value.
Which of the following is not a characteristic of a general partnership?
a) the partnership is created by a contract
b) mutual agency
c) partners share equally in net income or net losses unless an agreement states differently
d) dissolution occurs only when all partners agree
Among the following, dissolution occurs only when all partners agree is not a characteristic of a general partnership. Thus the correct option is D.
What is a partnership?When two or more two people come up with the objective to manage the operation of a business by making an alliance by sharing capital for investment and profit or loss of the organization. the collaboration is said to be a partnership.
Dissolution is the termination of a general partnership, whether by mutual consent or by the provisions of law. It is a provision of the partnership agreement that must be developed and accepted by the partners at the very beginning of the partnership.
In a general partnership, each partner is equally responsible for the debts and liabilities of the company, which can have major consequences for finances if the partnership is dissolved quickly and without thorough planning or thought.
Therefore, option D is appropriate.
Learn more about the partnership, here:
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The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected variable cost per unit is $7 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $6,000. The sale price is estimated at $15 a unit, give or take 2 percent. The company bases their sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?
a. $54,880.
b. $50,000.
c. $58,905.
d. $53,120.
e. $54,000.
Answer:
c. $58,905.
Explanation:
The computation of the sales revenue is shown below:
optimistic scenario revenue = optimistic unit sold × optimistic price
where,
optimistic unit sold = 3500 × 110%
= $3,850
optimistic price = 15 × 102%
= 15.3
So, the Optimistic revenue is
= 3850 × 15.3
= $58,905
Hence, the option c is correct
Following is information from Skechers USA, Inc. for fiscal 2016 (in thousands).
Total 2016 revenue $3,563,311
Total revenue growth rate 5.0%
Terminal revenue growth rate 2%
Net operating profit margin (NOPM) 8.2%
Net operating asset turnover (NOAT)3.42
Projected 2017 total revenue would be:
A. $3,634,577 thousand.
B. $3,855,503 thousand.
C. $3,324,568 thousand.
D. $3,741,477 thousand.
E. None of the above.
Answer:
D. $3,741,477 thousand
Explanation:
Calculation to determine what total revenue would be:
Total value=$3,563,311 million ×(1+.05)
Total value=$3,563,311 million × 1.05
Total value = $3,741,477 thousand
Therefore total revenue would be:$3,741,477 thousand
In your opinion, how important is it for organizations to enforce internal discipline (e.g., employee termination) in preventing occupational fraud in the workplace
Answer:
There must be well-structured policies and procedures in every organization that are compatible with government laws and that regulate a company's activities and operations.
Compliance with the internal regulations must be implemented and incorporated by all employees, regardless of hierarchical level.
Therefore, when there is any type of non-compliance with organizational standards, such as occupational fraud, this must be corrected in accordance with the provisions of the regulation.
The prevention of fraudulent practices in a company must be carried out through the propagation of ethical behavior that contributes to the formation of an organizational culture aimed at personal development, collaboration and integration of employees.
Hatch has a standard of 2.2 hours of labor per unit, at $10.70 per hour. In producing 1,640 units, Hatch used 3,900 hours of labor at a total cost of $40,400. What is Hatch's total labor variance
Answer: $1,794.40 Unfavorable
Explanation:
Total labor variance = Actual cost of labor - Standard cost of labor
Actual cost of labor = $40,400
Standard cost of labor = Hours per unit * Cost per hour * Number of units
= 2.2 * 10.70 * 1,640
= $38,605.60
Total labor variance = 40,400 - 38,605.60
= $1,794.40 Unfavorable
Unfavorable because actual cost of labor was greater than the standard cost.
A company purchased a weaving machine for $198,250. The machine has a useful life of 8 years and a residual value of $10,500. It is estimated that the machine could produce 751,000 bolts of woven fabric over its useful life. In the first year, 105,500 bolts were produced. In the second year, production increased to 109,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Answer:
the depreciation expense that should be recorded for the second year is $27,375
Explanation:
The computation of the amount of depreciation expense that should be recorded for the second year is shown below
Depreciation rate is
= ($198,250 - $10,500) ÷ 751000
= 0.25 per bolt
Now Depreciation expense for the second year
= $109,500 × .25
= $27,375
hence, the depreciation expense that should be recorded for the second year is $27,375
Broker Bill has the exclusive listing for Terri’s home. Bill brought Terri an offer from Alexis, which Terri accepted. In order to expedite the transaction, Bill offered to handle the escrow if both Terri and Alexis agreed. Which statement is true?
Answer: Bill's offer is ethical and legal and he can accept compensation for handling the escrow.
Explanation:
An exclusive listing refers to the type of real estate listing agreement whereby a broker is chosen as the sole agent of the seller. It should be noted that the right to retain the property is held by the seller rand has no obligation to the broker.
Based on the information given, it can be infered that Bill's offer is ethical and legal and he can accept compensation for handling the escrow.
he building is subject to a mortgage of $10,000, which the partnership has assumed. The partnership agreement also specifies that profits and losses are to be distributed evenly without a true up payment. What amounts shoul
Answer:
I. $35,000; II. $75,000
Explanation:
Calculation to determine What amounts should be recorded as capital for Roberts and Smith at the formation of the partnership
ROBERTS net assets contributed= ($20,000 + $15,000)
Roberts net assets contributed=$35,000
SMITH fair market value of the net assets contributed = ($30,000 + $15,000 + $40,000 - $10,000)
Smith fair market value of the net assets contributed=$75,000
Therefore the amount tha should be recorded as capital for Roberts and Smith at the formation of the partnership is $35,000;$75,000
