The following data concerning the retail inventory method are taken from the financial records of Welch Company. Cost Retail Beginning inventory $ 196,000 $ 280,000 Purchases 896,000 1,280,000 Freight-in 24,000 — Net markups — 80,000 Net markdowns — 56,000 Sales — 1,344,000 If the ending inventory is to be valued at approximately the lower of cost or market, what is the cost-to-retail ratio?
Answers
Answer:
$ 168,000
Explanation:
Include both Mark-ups and Mark-Downs and Exclude beginning inventory
When LIFO Inventory Method is used to find out Ending inventory retail Value. Cost to Retail Ratio will be Applied for both Previous year ending Inventory and the Current Year addition To Calculates
the Previous year Ending inventory :
Cost to Retail Ratio : Ending inventory at cost / Ending inventory at Retail
For Current year Addition :
Cost to Retail Ratio : Current Year Addition in Cost /Current Year Addition in Retail
Current year addition in retail includes : Markup ,Markdown purchases
Kindly check the attached images below to see the step by step explanation to the question above.
Related Questions
Management in Life Annabelle and Bettina share a dorm room. They like each other, but they disagree about how often to clean. Eventually, Annabelle says to Bettina, "I'm afraid that if we clean the room only once a month, we're going to get bugs. Bettina replies, "Maybe, but this physics course is killing me, so I don't have time to clean more often than that." Annabelle and Bettina are engaged in conflict, based on Which of the following outcomes are likely in this situation?
A) Annabelle and Bettina will learn from each other.
B) The roommates will come up with a creative solution.
C) The roommates will stop speaking to each other.
D) Annabelle and Bettina will be angry at each other.
Answers
Answer:
A). Annabelle and Bettina will learn from each other .
B). The roommates will come up with a creative solution."
Explanation:
Anabelle and Bettina are involved in a 'cognitive' conflict as it occurs when they both experience a mental as well as emotional discomfort when they are confronted with the information that challenges their existing ideas or beliefs. The most likely outcomes of this situation would be that they 'both would learn from each other' by accepting each other's point of view and adapting with the new information that would help them 'reach a creative solution' to resolve their conflict over the cleaning of their room. Therefore, options A and B are the correct answers.
(Ignore income taxes in this problem.) Assume you can invest money at a 14 percent rate of return. How much money must be invested now to be able to withdraw $5,000 from this investment at the end of each year for eight years, the first withdrawal occurring one year from now
Answers
Answer:
the original amount invested = $285,714.29
Explanation:
Let original amount invested be x
Amount to be withdrawn per year = $5,000
Total number of years = 8
Total amount to be withdrawn = 5,000 × 8 = $40,000
Next, we are told that 14% return on x is realized,
∴ 14% return on x = $40,000
0.14 × x = 40,000
x = 40,000 ÷ 0.14 = $285,714.29
Therefore, the original amount invested = $285,714.29
In performing accounting services for small businesses, you encounter the following situations per taining to cash sales. 1. Poole Company enters sales and sales taxes separately in its cash register. On April 10, the register totals are sales $30,000 and sales taxes $1,500. 2. Waterman Company does not segregate sales and sales taxes. Its register total for April 15 is $25,680, which includes a 7% sales tax. Prepare the entry to record the sales transactions and related taxes for each client.
Answers
Answer and Explanation:
According to the scenario, journal entries of the given data are as follow:-
1.Journal Entry of Poole Company
April 10
Cash A/c Dr. $31,500
To Sales A/c $30,000
To Sales tax payable A/c $1,500
(Being the sales and sales tax payable is recorded)
2. Since Register total for April $25,680 includes 7% sales tax.
So Sales of Waterman Company
= Registered Total Amount ÷ (1 + Sales Tax Rate)
= $25,680 ÷ (1 + 7%)
= $25,680 ÷ 1.07
= $24,000
Now
Sales tax = $24,000 × 7% = $1,680
Journal Entry of Waterman Company
On 15 April
Cash A/c Dr. $25,680
To Sales A/c $24,000
To Sales tax payable A/c $1,680
(Being the sales and sales tax payable is recorded)
In 2017, Cullumber Corporation incurred research and development costs as follows: Materials and equipment $111000 Personnel 131000 Indirect costs 171000 $413000 These costs relate to a product that will be marketed in 2018. It is estimated that these costs will be recouped by December 31, 2020. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2017
Answers
Answer:
The amount of research and development costs that should be expensed in 2017 is $413,000
Explanation:
In order to calculate the amount of research and development costs that should be expensed in 2017 we would have to use the following formula:
amount of research and development costs that should be expensed in 2017= Materials and equipment costs+ Personnel costs+Indirect costs
amount of research and development costs that should be expensed in 2017= $111,000+ $131,000+$171,000
amount of research and development costs that should be expensed in 2017=$413,000
The amount of research and development costs that should be expensed in 2017 is $413,000
The amount of research and development costs that should be expensed in 2020
$ 99000 + $ 119000 + $ 159000
$377,000
Suppose that you are the international treasurer of Apple with an extra U.S. $10 million to invest for 9 months. You are considering the purchase of U.S. T-bills that yield 1.50% annual rate. The spot exchange rate is $1.00 = ¥100, and the 9 month forward rate is $1.00 = ¥110. What must the interest rate in Japan be before you are willing to consider investing there for 9 months? A. 14.5515 B. <8.8975 C. >13.4983 D. 12.5050
Answers
Answer:
Japan Interest Rate = 0.15%
Explanation:
As per Interest Rate Parity Theory
Spot Rate : 1$ = 100
Forward Rate : 1 $ = 110
r = 9/12
As per interest rate parity, forward rate = Spot rate(1+Interest rate Japan)/(1+Interest rate US)
Forward rate = Spot rate *(1+ iD)/(1+iF)
110 / 100 = (1 + Japan Interest Rate * 9 /12) / 1.01125
1.1 * 1.01125 = 1 + Japan Interest Rate * 0.75
1.112375 = 1 + Japan Interest Rate * 0.75
Japan Interest Rate * 0.75 = 1.112375 - 1
Japan Interest Rate * 0.75 = 0.112375
Japan Interest Rate = 0.112375 / 0.75
Japan Interest Rate = 0.15%
Please help ASAP giving BRAINLIEST , Did I get this correct?
Answers
Answer:
No, in my opinion I would choose:
A) the properties of free-market system that determine what the outcomes will be.
Explanation:
That would be my answer because the definition of market forces is "the economic factors affecting the price of, demand for, and availability of a commodity."(off the internet) and the answer which fits that definition the most in my opinion is A.
That would be my answer at least.
Hope this helps!
Bass Accounting Services expects its accountants to work a total of 26 comma 000 direct labor hours per year. The company's estimated total indirect costs are $ 390 comma 000. The company uses direct labor hours as the allocation base for indirect costs. What is the indirect cost allocation rate? A. $ 18.00 per hour B. $ 30.00 per hour C. $ 15.00 per hour D. $ 150.00 per hour
Answers
Answer:
C) $ 15.00 per hour
Explanation:
total labor hours 26,000 per year
total indirect costs $390,000
if the company allocates indirect costs according to labor hours employed, the cost allocation rate should be:
$390,000 / 26,000 = $15 per direct labor hour
This means that for every labor hour employed, $15 will be allocated as indirect costs, e.g. a client requires 50 labor hours per year and $750 (= 50 x $15) in indirect costs.
Answer:
The correct answer is option (c) $15 per hour
Explanation:
Solution
Recall that:
Expected wok for accountants = 26,000
The company estimated total indirect costs - 390,000
The next step is to find the allocation base cost for indirect cost.
Now,
The indirect labor cost is calculated as follows:
indirect cost allocation rate:
= Total indirect costs/Labor hours
= $390,000/26,000
= $15 per hours
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was $12 per share. KL will record compensation expense associated with the May purchases of:
Answers
Answer:
Dr Cash 105,600
Dr Compensation Expense 14,400
Cr Common Stock 10,000
Cr Paid-In Capital – Excess of Par 110,000
Explanation:
KL Corp Journal entry
Dr Cash 105,600
Dr Compensation Expense 14,400 (10,000*12*12%)
Cr Common Stock 10,000 (10,000*1)
Cr Paid-In Capital – Excess of Par 110,000
(10,000*(12-1))
Pharoah Corporation had the following activities in 2020. 1. Payment of accounts payable $843,000 4. Collection of note receivable $104,000 2. Issuance of common stock $256,000 5. Issuance of bonds payable $466,000 3. Payment of dividends $333,000 6. Purchase of treasury stock $45,000 Compute the amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answers
Answer:
The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.
Explanation:
Pharoah Corporation
Statement of cash flows (extract)
Proceeds from common stock $256,000
Proceed from bond payable $466,000
Dividend paid ($333,000)
Purchase of treasury stock ($45,000)
Net cash flows from financing activities $344,000
Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.
The following units of an item were available for sale during the year: Beginning inventory 8,100 units at $180 Sale 5,300 units at $300 First purchase 15,000 units at $185 Sale 13,000 units at $300 Second purchase 16,000 units at $192 Sale 14,000 units at $300 The firm uses the perpetual inventory system, and there are 6,800 units of the item on hand at the end of the year. a. What is the total cost of the ending inventory according to FIFO? $ b. What is the total cost of the ending inventory according to LIFO?
Answers
Answer:
a. $1,305,600
b. $1,258,000
Explanation:
FIFO - Assumes that the first goods received by the business will be first ones to be delivered to the final customer
FIFO Inventory = 6,800 units × $ 192 = $1,305,600
LIFO - Assumes that the last goods purchased are the first ones to be issued to the final customer
LIFO Inventory = 2,800 units × $180 = $ 504,000
2,000 units × $185 = $ 370,000
2,000 units × $ 192 = $ 384,000
Total = $1,258,000
Margie Company produces a single product and has provided the following data concerning its most recent month of operations: Selling price $ 88 Units in beginning inventory 0 Units produced 5,200 Units sold 4,900 Units in ending inventory 300 Variable costs per unit: Direct materials $ 12 Direct labor $ 23 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 161,200 Fixed selling and administrative expense $ 63,700 The total contribution margin for the month under variable costing is:
Answers
Answer:
$225,400
Explanation:
The computation of total contribution margin under variable costing is shown below:-
Sales (4900 × $88) $431,200
Less:Variable cost
Direct material (4900 × $12) ($58,800)
Direct labor (4900 × 23) ($112,700)
Variable manufacturing overhead
(4900 × 2) ($9,800)
Variable selling and administrative
expenses (4900 × $5) ($24,500)
Total variable expenses ($205,800)
Contribution margin $225,400
Therefore the total contribution margin under variable costing is $225,400
Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $183,000 with terms of 4/15, n/45. Payment was made within the discount period. Shipping costs were $4,300, which included $270 for insurance in transit. Installation costs totaled $12,900, which included $3,700 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is: Multiple Choice $192,880. $190,880. $196,380. $197,880.
Answers
Answer:
$192,880
Explanation:
According to the scenario, computation of the given data are as follow:-
Cost of 10-ton draw press is $183,000 and if the cost paid before 15 days, there will be a 4% discount.
Discount Value is
= Cost of Draw Press × Discount Rate
= $183,000 × 4%
= $7,320
Total Capitalized Amount is
= (Total Cost of Draw Press - Discount Value) + Shipping Cost + Installation Cost
= ($183,000 - $7,320) + $4,300 + $12,900
= $175,680 + $4,300 + $12,900
= $192,880
According to the analysis, the capitalized cost of the 10-ton draw press is $192,880.
Because any cost which incurred for using an asset should be capitalized.
The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense - factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of conversion costs.
Answers
Answer:
Conversion costs= $488,000
Explanation:
Giving the following information:
depreciation expense - factory building, $133,000
direct labor, $250,000
factory utilities, $105,000
The conversion costs are the sum of direct labor and manufacturing overhead.
Manufacturing overhead= 133,000 + 105,000= 238,000
Direct labor= 250,000
Conversion costs= $488,000
A company used straight-line depreciation for an item of equipment that cost $15,350, had a salvage value of $3,200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,535 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: Multiple Choice $2,880. $5,672. $1,215. $2,580. $3,200.
Answers
Answer:
The correct answer is $2,580.
Explanation:
Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($15,350 - $3,200) / 6 years = $2,025 yearly depreciation expense.
Accumulated depreciation at Year 3 = $2,025 x 3 = $6,075
Net book value (NBV) becomes $15,350 - $6,075 = $9,275
New depreciation is ($9,275 - $1,535) / 3 years = $2,580 yearly depreciation expenses
Who has the comparative advantageLOADING... in producing oil? A. Norway has a comparative advantage producing oil because its opportunity cost of producing oil is lower. B. Neither country has a comparative advantage producing oil because their opportunity costs of producing oil are equal. C. The United Kingdom has a comparative advantage producing oil because its opportunity cost of producing oil is lower. D. Norway has a comparative advantage producing oil because it can produce more oil. E. The United Kingdom has a comparative advantage producing oil because it can produce more oil.
Answers
Answer:
The answer is option D) Norway has a comparative advantage producing oil because it can produce more oil.
Explanation:
Norway currently produces 1,398 thousand barrels of crude oil per day. At this capacity, it can produce more oil in comparison to United Kingdom that produces 1000 thousand barrels per day.
This statistics gives Norway a comparative advantage over United Kingdom.
Also comparing the consumption rate for both countries with Norway having a population of 5,421,241 which is far less than 66, 650,000 of the United Kingdom, shows that Norway will have enough to cater for her citizens as well as for exports.
The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $36,300 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine's net present value
Answers
Answer:
$2007.6
Explanation:
According to the scenario, computation of the given data are as follow:-
4th Year Cash Flow = Salvage Value + Expected End Year Net Cash Flow
= $1,200 + $11,300
= $12,500
Year Cash flow ($) PVF at 8% Present value ($)
0 36,300 1.000 -36,300
1 11,300 0.9259 10462.67
2 11,300 0.8573 9687.49
3 11,300 0.7938 8969.94
4 12,500 0.7350 9187.5
Net present value 2007.6
According to the analysis, net present value of machine is $2007.6
Pharoah Company has had 4 years of record earnings. Due to this success, the market price of its 500,000 shares of $4 par value common stock has increased from $15 per share to $55. During this period, paid-in capital remained the same at $6,000,000. Retained earnings increased from $4,500,000 to $30,000,000. CEO Don Ames is considering either (1) a 15% stock dividend or (2) a 2-for-1 stock split. He asks you to show the before-and-after effects of each option on (a) retained earnings, (b) total stockholders’ equity, and (c) par value per share.
Answers
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) 15% Stock Dividend-
Retained Earnings = Increase Value of Retained Earnings - (Total Shares × 15% Stock Dividend × Increase Value of Per Share)
= $30,000,000 - (500,000 × 15% × $55)
= $30,000,000 - $4,125,000
= $25,875,000
2) 2-for-1 stock split-
Retained earnings = $30,000,000
The 2-for-1 stock split will not impact retained earnings.
a and b) The before, after effects of each option are shown in the attachment below
c) Par value per share
Par value per share of stock dividend = $4
Par value per share of 2-for-1 stock split = $4 ÷ 2 = $2
According to the analysis, stock dividend will not make any impact.
The capital accounts of Heidi and Moss have balances of $90,000 and $65,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Heidi invested an additional $8,000. During the year, Heidi and Moss withdrew $40,000 and $32,000, respectively. Revenues were $540,000 and expenses were $420,000 for the year. The articles of partnership make no reference to the division of net income. Required: 1. Prepare a statement of partners' equity for the partnership of Heidi and Moss. If an amount box does not require an entry, leave it blank. Enter all amounts as positive numbers. Heidi and Moss Statement of Partners' Equity For the Year Ended December 31 Heidi Moss Total Capital, January 1 $ 90,000 $ 65,000 $ 155,000 Net income for the year 60,000 60,000 120,000 $ $ $ $ $ $ Withdrawals during the year Capital, December 31 $ 118,000 $ 93,000 $ 211,000 2. Journalize the entries to: Close the revenue and expenses account. Close the drawing accounts. If an amount box does not require an entry, leave it blank. a. Revenues 540,000 Heidi, Capital 540,000 Moss, Capital 420,000 Heidi, Capital 40,000 Moss, Capital Moss, Drawing b. Heidi, Capital 40,000 Moss, Capital 32,000 Heidi, Drawing 40,000 Moss, Drawing 32,000
Answers
Answer:
The statement and journal are attached
Explanation:
The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 75% complete. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,360 units in process at the end of the period, which were 25% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".
Answers
Answer:
Equivalent Units
Material cost = 26,560
Conversion Cost= 25,540
Explanation:
We would assume the company uses weighted average method of valuation.
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Material cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 100%× 1,360 1360
Total equivalent units 26,560
Conversion Cost
Item Unit Equivalent unit
Completed 25,200 100% ×25200 = 25,200
Closing WIP 1,360 25%× 1,360 340
Total equivalent units 25,540
You should meet with your academic adviser at least once a __________.
Group of answer choices
Answers
Answer:
Once a Semester
Explanation:
Advisors can help you decide if you want to minor in something, and what the requirements are. They can ensure you're odds of graduating in four years is on track, or give you special permissions to take certain classes.
Hancock Medical Supply Co., earned $90,500 of revenue on account during Year 1, its first year of operation. During Year 1, Hancock collected $71,400 of cash from its receivables accounts. The company did not write-off any uncollectible accounts. It estimates that it will be unable to collect 1% of revenue on account. What is the net realizable value of receivables that will be reported on the balance sheet at December 31, Year 1
Answers
Answer:
$18,195
Explanation:
The computation of the net realizable value is shown below:
As we know that
Net Realizable Value of Receivables = Ending Accounts Receivable - Estimated Uncollectibles amount
where,
Ending balance of Accounts Receivable is
= Revenue on Account - Accounts collected
= $90,500 - $71,400
= $191,00
And,
Estimated Uncollectibles i.e Bad debt Expense is
= Revenue on Account × given percentage
= $90,500 × 1%
= $905
So, the net realizable value is
= $19,100 - $905
= $18,195
We simply applied the above formula
The focused differentiation strategy differs from the differentiation strategy in that Group of answer choices a. the focused differentiators have a broader competitive scope b. the value-creating activities of focused differentiators are more constrained. c. focused differentiators target a narrower customer market d. there are fewer risks with the focused differentiation strategy.
Answers
Answer:
The answer is option C) The focused differentiation strategy differs from the differentiation strategy in that focused differentiators target a narrower customer market.
Explanation:
Product differentiation is a marketing strategy that creates competitive advantage with designing a product superior to that of rivals, priced higher and sometimes created for exclusive users.
However, the focused differentiation strategy takes it a step further by targeting a small group of customers with ostensible goods.
The bourgeoisie are the main target for focused differentiators. They have the economic power to foot the bill and they enjoy the exclusivity of being the few to consume such products. A good example of such products is the Bugatti and Ferrari.
• Why has the stock market declined so much?
Answers
We need a passage or something. not just the question
he income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.
Answers
Answer:
Cash flow from operating activities
Cash Receipts from Customers $7,240,000
Cash Paid to Suppliers and Employees ($6,460,000)
Net Cash from Operating Activities $780,000
Explanation:
Prepare a statement of cash flows` operating activities section as follows :
Cash flow from operating activities
Cash Receipts from Customers $7,240,000
Cash Paid to Suppliers and Employees ($6,460,000)
Net Cash from Operating Activities $780,000
Cash Receipts from Customers Calculations
Sales revenue $6,890,000
Add Decrease in Accounts Receivables $350,000
Cash Receipts from Customers $7,240,000
Cash Paid to Suppliers and Employees Calculations
Cost of goods sold $4,700,000
Add
Selling expenses $460,000
Administrative expenses $700,000
Less depreciation expense of $50,000
Decrease in Accounts Payable $300,000
Decrease in Accrued Expenses $90,000
Increase in Prepaid expenses $160,000
Cash Paid to Suppliers and Employees $6,460,000
elb Company currently manufactures 50,000 units per year of a key component for its manufacturing process. Variable costs are $2.95 per unit, fixed costs related to making this component are $67,000 per year, and allocated fixed costs are $61,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit. Calculate the total incremental cost of making 50,000 units and buying 50,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answers
Answer: Please refer to Explanation
Explanation:
Incremental Cost of Making Product
Variable costs are $2.95 per unit and 50,000 units are to be made. Total Variable Cost is therefore,
= 2.95 * 50,000
= $147,500
Fixed costs associated with the production are$ 67,000 so added tl the variable costs is,
= 147,500 + 67,000
= $214,500
$214,500 is the cost making the product.
Cost of Buying Product
Component can be bought for $3.90 per unit. 50,000 units to be bought gives,
= 50,000 * 3.9
= $195,000
Cost of buying is $195,000
Decision
Company should buy the component as it spends less in buying it than I making it.
Note - Allocated fixed costs were not included in calculation because they will be there regardless of the decision. Hence the term, incremental costs.
Answer:
elb Company
a) Incremental Cost of making 50,000 units:
Variable costs = $2.95 x 50,000 = $147,500
Avoidable fixed costs = $67,000
Total = $214,500
b) Incremental Cost of buying 50,000
Buy-in costs =- $3.90 x 50,000 = $195,000
c) The company should buy this component from the outside supplier.
Explanation:
In make or buy decisions, only variable and avoidable costs are taken into consideration. Unavoidable fixed costs are sunk costs which must be incurred irrespective of the choice made.
Therefore, the unavoidable allocated fixed costs of $61,500 should not be taken into consideration. Afterall, no matter the decision, it would still be incurred and allocated.
A Company manufactures coffee tables. The Company has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month: Output units 30,000 tables Machine-hours 6000 hours Direct manufacturing labor-hours 10,000 hours Direct materials per unit $50 Direct manufacturing labor per hour $12.00 Variable manufacturing overhead costs $322,500 Fixed manufacturing overhead costs $1,200,000 Product and process design costs $600,000 Marketing and distribution costs $1,290,000 For long-run pricing of the coffee tables, what price will most likely be used by the Company
Answers
Answer:
$201.30
Explanation:
Direct materials = $50
Total Direct manufacturing labor = $12.00 * 10,000 = $120,000
Variable manufacturing overhead costs = $322,500
Fixed manufacturing overhead costs = $1,200,000
Product and process design costs = $600,000
Marketing and distribution costs = $1,290,000
Total cost apart from direct material = $120,000 + $322,500 + $1,200,000 + $600,000 + $1,290,000 = $3,532,500
Cost per unit apart from direct material = $3,532,500 / 30,000 = $117.75
Total cost per unit = $117.75 + $50 = $167.75
Mark up per unit = $167.75 * 20% = $33.55
Price per unit = $167.75 + $33.55 = $201.30
Answer: $201.30
Explanation:
To solve this all the expenses incurred per unit need to be included in the unit.
Direct Materials $50
Direct Manufacturing Labour Hours per unit
= (10,000/30,000 units) * 12 (direct Manufacturing Labour per hour)
= $4
Variable Manufacturing Overhead Cost
= 322,500/30,000
= $10.75
Fixed manufacturing overhead costs
= 1,200,000/30,000
= $40
Product and process design costs
= 600,000/30,000
= $20
Marketing and distribution costs
= 1,290,000/30,000
= $43
Adding everything up,
= 50 + 4 + 10.75 + 40 + 20 + 43
= $167.75
Company adds 20% to costs so,
= 167.75 * ( 1 + 20%)
= $201.30
Company will most likely sell at $201.30
Now suppose country A imposes a tax on A's production of to curb emissions. Country B, however, is not taxed. A's cost function is now , while B's cost function is . World demand is . The amount of greenhouse gas emissions per unit is still , such that total world emissions are given by . What are total world emissions after country A enacts a carbon tax?
Answers
Answer:
286.5
Explanation:
P=99-qa-qb
MRa=99-2qb-qb
MCa=48
99-2qa-qb=48
Qa=25.5-0.5qb{ best response function of firm A)
MRb=99-qa-2qb
MCb=4
99-qa-2qb=4
Qb=47.5-0.5qa{ best response function of form b}
Qb=47.5-0.5(25.5-0.5qb)
Qb=34.75/0.75=46.33
Qa=25.5-0.5*46.33=2.33
Total world output=46.33+2.33=48.66
Total world emission=0.5*48.66=24.33
p=1146-qa-qb-qc
MRa=1146-2qa-qb-qc
MCa=0
1146-2qa-qb-qc=0
Qa=573-0.5(qb+qc) best response function of firm a)
By symmetry,
Qb=573-0.5(qa+qc)
Qc=573-0.5(qa+qb)
Qb+qc=1146-qa-0.5(qb+qc)
Qb+qc=764-qa/1.5
Qa=573-0.5(764-qa/1.5)=191+qa/3
Qa=191*3/2=286.5
Qa=Qb=Qc=286.5
Total output=3*286.5=859.5( cournot equilibrium market output)
Cartel output=573
Lower QUANTITY in cartel equilibrium compare to cournot equilibrium
=859.5-573
=286.5
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.
Answers
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 80,000. SunTime’s December 31, 20X1, trial balance in SFr is as follows:
Then intended files that supposed to be here are added in the attachments below:
Part 1. Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.
Answer:
Explanation:
We are tasked to Prepare a schedule translating (current rate method) the December 31, 20X1, trial balance from Swiss francs to dollars.
Schedule remeasuring Swiss francs to dollars
Trial Balance Translation Schedule
December 31, 20X1
Sfr Exchange Rate U.S dollar
Cash $7,200 0.73 $5,256
Accounts $25,000 0.73 $18,250
receivable (net)
Receivable from $6,300 0.73 $4,599
Creek
Inventory $26,000 0.73 $18,980
Plant & equipment $110,000 0.73 $80,300
Cost of good sold $71,500 0.75 $53,625
Depreciation expense $10,100 0.75 $7,575
Operating expense $35,000 0.75 $26,250
Dividends paid $16,400 0.74 $12,136
Total: $307,500 $226,971
[tex]Accumulated - \ translation \\other \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ adjustment\\Comprehensive \\ loss[/tex] (233,031 - 226,971) $6060
TOTAL DEBITS $233,031
Accumulated $10,100 0.73 $7,373
Depreciation
Account $13,600 0.73 $9,928
Payable
Bond $51,000 0.73 $37,230
Payable
Common stock $78,000 0.80 $62,400
Sales $154,800 0.75 $116,100
Total: $307,500 $233,031
No entry necessary $ -
TOTAL CREDITS $233,031
On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30.
Required:
Record American Eagle's declaration and payment of cash dividends for its 226 million shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. $5.5 should be entered as 5,500,000).)
Answers
Answer and Explanation:
The journal entries are shown below:
On March 15
Dividend Dr $10,170,000 (226 million shares × $0.045 per share)
To Dividend payable $10,170,000
(Being the dividend is declared)
For recording this we debited the dividend as it increased the balance of dividend and credited the dividend payable as it increased the liabilities
On March 30
No journal entry is required for recording of dividend
On April 13
Dividend payable $10,170,000
To cash $10,170,000
For recording this we debited the dividend payable as it decreased the liabilities and credited the cash as it reduced the assets
(Being the dividend payable is recorded)
Matt and Joel are equal partners in the MJ Partnership. For the current year ended December 31, the partnership has book income of $80,000, which includes the following deductions: (1) guaranteed payments (salaries) to partners: Matt, $35,000; and Joel, $25,000; and (2) charitable contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any taxminusexempt income. Based on the above information, what amount should be reported as ordinary income on the partnership return?
Answers
Answer:
$86,000
Explanation:
A partnership is a pass through entity that is not taxed directly, but instead its partners are taxed. Even the partners' salaries are recorded as drawings, not salary expense.
The partnership's total ordinary income = book income + any donations or contributions to charities = $80,000 + $6,000 = $86,000
