Answers
Answer:
I think the above information will help you.....
Related Questions
When a company issues 32,000 shares of $2 par value common stock for $20 per share, the journal entry for this issuance would include:_____.A. A debit to Additional Paid-in Capital for $76,000. B. A debit to Cash for $76,000. C. A credit to Common Stock for $760,000. D. A credit to Additional Paid-in Capital for $684,000.
Answers
Please the options provided are not correct for the question given.
Answer: When a company issued 32,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include a debit to cash for $640,000 , a credit to common stock and Additional paid in capital for $64,000 and $576,000 respectively.
Explanation:
Company issued = 32,000 shares
For par value = $2
Common stock for = $20 per share
The Journal Entry would be,
Accounts title and explanation Debit Credit
Cash ($32,000 shares x $20) $640,000
Common Stock (32,000 shares x $2) $64,000
Additional paid-In capital in excess par—common stock $576,000 ($640,000 - $64,000)
g Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 5-year car loan for $9700 at 5%; remaining balance after 4 years.
Answers
Answer:
Monthly payment $102.88
Outstanding balance after year 4 $1,201.76
Explanation:
First and foremost, the car loan amount of $9,700 is the present value of all monthly payments for 5 years as shown below:
PV=monthly payment*(1-(1+r)^-n/r
PV=car loan amount=$9,700
monthly payment=unknown
r=monthly interest rate=5%/12=0.004166667
n=number of monthly payments in 5 years=5*12=60
$9700=monthly payment*(1-(1+0.004166667)^-120/0.004166667
$9700=monthly payment*(1-(1.004166667)^-120/0.004166667
$9700=monthly payment*(1-0.607161016 )/0.004166667
$9700=monthly payment*0.392838984 /0.004166667
$9700=monthly payment*94.28134862
monthly payment=$9700/94.28134862
monthly payment=$102.88
The outstanding balance after year 4 is the present value of monthly payments for the remaining 1 year(12 months)
PV=$102.88*(1-(1+0.004166667)^-12/0.004166667
PV=$102.88*(1-(1.004166667)^-12/0.004166667
PV=$102.88*(1-0.951328238 )/0.004166667
PV=$102.88*0.048671762 /0.004166667
PV=$1,201.76
During July, the production department of a process operations system completed and transferred to finished goods 24,000 units that were in process at the beginning of July and 72,000 that were started and completed in July. July's beginning inventory units were 100% complete with respect to materials and 30% complete with respect to labor. At the end of July, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 35% complete with respect to labor. The beginning inventory included labor cost of $52,400 and the production department incurred direct labor cost of $451,250 during July. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.
Answers
Answer:
the direct labor cost per equivalent unit for the department is $4.74 per unit
Explanation:
The computation of the direct labor cost per equivalent unit for the department is given below:
Equivalent units for direct labor cost is
= 24,000 unit + 72,000 units + 35% of 29,000
= 24,000 units + 72,000 units + 10,150 units
= 106,150 units
Now the direct cost per equivalent unit is
= ($52,400 + $451,250) ÷ 106,150 units
= $4.74 per unit
Hence, the direct labor cost per equivalent unit for the department is $4.74 per unit
g A construction company builds roads with machinery (capital, K) and labor (L). If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high __________ use and low __________ use. A. labor; capital B. concrete; gravel C. capital; labor D. None of the above.
Answers
Answer:
A. labor; capital
Explanation:
In the production function theory, here we presume that the isoquants should be convex shaped and the MRTS should be isoquant slop that should be downward as it is shifted from left to right. Now if it is along on the horizontal axis that goes towards right so here MRTS falls and the labor rises. Due to increased in labor, the capital should falls because of the negative slope
Therefore the option a is correct
The point on the isoquant with a small MRTS (in absolute value) is associated with high labor use and low capital use.
In a production function theory, we will presume that the isoquants should be convex shaped and the MRTS should be isoquant slop hence, should be downward as it is shifted from left to right.
if the MRTS is along on the horizontal axis that goes towards right, hence, the MRTS falls and the labor rises.
Hence, due to the increase in labor, the capital should falls because of the negative slope.
Therefore, the Option A is correct since the point on the isoquant with a small MRTS (in absolute value) is associated with high labor use and low capital use.
Read more about production function theory
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Good afternoon. Kindly assist on the following please. Assignment due by 4:30pm Mike bookshop had the following structure. Share capital 500000 ordinary shares of $1 each. 300000 10% preference of $1 each. Reserves Share premium 200 000 General reserves 100 000 Retained earnings 400 000 8% debenture 100 000 During the year the following transaction took place. 01 January issue of 200 000 $1 ordinary shares at$1,20 and 100 000 preference shares at $2 each. 01 June a 1 for 4 right issue at a premium of $0,10c each per share. 01 December 1 for 5 bonus shares fully paid. All shares issued during the year qualified for bonus and the company wishes to leave the reserves in their flexible form. Required. Balance sheet extract.
Answers
Answer:
Mike Bookshop
Balance Sheet Extract as at December 31
Share capital:
1,050,000 ordinary shares of $1 each $1,050,000
400,000 10% preference of $1 each 400,000
Total share capital $1,450,000
Reserves:
Share premium 357,500
General reserves 100,000
Retained earnings 225,000
Total reserves $682,500
8% debenture $100,000
Explanation:
a) Data and Analysis:
Share capital:
500000 ordinary shares of $1 each.
300000 10% preference of $1 each.
Reserves:
Share premium 200 000
General reserves 100 000
Retained earnings 400 000
8% debenture 100 000
During the year the following transaction took place.
01 January Cash $240,000 Ordinary share capital $200 000 Share Premium $40,000
$1 ordinary shares at$1.20 and
01 January Cash $200,000 Preferred share capital $100 000 Share Premium $100,000
01 June Cash $192,500 Ordinary share capital $175,000 Share Premium $17,500
a 1 for 4 right issue at a premium of $0.10c each per share.
01 December Retained Earnings $175,000 Ordinary share capital $175,000
1 for 5 bonus shares fully paid.
Ordinary share capital:
Beginning balance $500,000
January 1 issue 200,000
June 1 rights issue 175,000
Dec. 1 bonus issue 175,000
Ending balance $1,050,000
Preferred share capital:
Beginning balance $300,000
January 1 issue 100,000
Ending balance $400,000
Share Premium:
Beginning balance $200,000
January 1 issues 140,000
June 1 rights issue 17,500
Ending balance $357,500
General reserves $100,000
Retained Earnings:
Beginning balance $400,000
Dec. 1 Bonus issue (175,000)
Ending balance $225,000
Larned Corporation recorded the following transactions for the just completed month.
$81,000 in raw materials were purchased on account. $79,000 in raw materials were used in production. Of this amount, $70,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $113,500 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
Depreciation of $198,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answers
Answer:
S/n Journal Entries Debit Credit
a Raw materials inventory $81,000
Accounts payable $81,000
b Work in process inventory $70,000
Manufacturing overhead $9,000
Raw materials inventory $79,000
c Work in process inventory $101,000
Manufacturing overhead $12,500
Cash $113,500
d Manufacturing overhead $198,000
Accumulated depreciation-Equipment $198,000
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a. True b. False
Answers
Answer: False
Explanation:
The price elasticity of supply measures the change in quantity supplied when the price changes.
The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.
Price elasticity of supply = %Change in quantity supplied / % change in price
0.5 = -6% / Change in price
0.5 * Change in price = -6%
Change in price = -6% / 0.5
= -12%
The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%
Firm A has a 21 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in Firm Z. The owners of Firm A decide to incur a $9,500 deductible expense that will benefit both firms.
Required:
Compute the after-tax cost of the expense assuming that:
a. Firm A incurs the expense
b. Firm Z incurs the expense
Answers
Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
Question 12
0.5 pts
The goal of any monopolist is to maximize:
economic profits.
normal profits.
price.
consumer welfare.
output.
Answers
Answer:
economic profits.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
Generally, the goal of any monopolist is to maximize economic profits.
Basically, a monopolist earns an economic profit when the average total cost (AVC) of his goods and services is less than price.
Unlike a business firm operating in a perfectly competitive market, a monopolist can continue to earn economic profits in the long-run because there exist an extremely high level of barriers to entry for new business firms.
Medical profession is a very sensitive profession.Do U agree?Give 5 reason
Answers
Answer:
Medical profession is very sensitive and intellectual where human life is at risk. A successful effort of a doctor can save a life. Due to that, a doctor is known as 2nd God. When he attempts a major and long surgery, his endurance, hard work and mental ability spotlight his character.
A company paid $0.85 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $35.50. Its dividend yield equals:
Answers
Answer: 2.4%
Explanation:
Cash dividend = $0.85
Earnings per share = $3.50
Market price per share = $35.50
The dividend yield will be calculated as:
= Cash dividends / Market price per share
= $0.85 / $35.50
= 0.024
= 2.4%
The dividend yield is 2.4%.
Faughn Corporation has provided the following data concerning manufacturing overhead for July:
Actual manufacturing overhead incurred $ 79,000
Manufacturing overhead applied to Work in Process $ 69,000
The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?
A. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
B. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
C. Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Answers
Answer: D. Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
Explanation:
The Manufacturing overhead applied is less than the actual manufacturing overhead incurred by:
= 79,000 - 69,000
= $10,000
Manufacturing overhead is therefore underapplied as the amount applied is too low to cover the amount incurred.
The Cost of Goods sold after closing out is:
= Cost of goods sold before closing out + Underapplied manufacturing overhead
= 243,000 + 10,000
= $253,000
Your lobster fishing business is straightforward, and you run your accounting in Excel. You maintain separate workbooks for each year, and each workbook has a spreadsheet for every month. The monthly spreadsheets are identical except for their names, which are January, February, etc. You have found that you need to sum your diesel fuel expenditures, which are always recorded in cell D18, for the months of August through December. What three-dimensional formula would give you that result
Answers
Answer:
The three-dimensional formula that would give you the required result, that is suming the diesel fuel expenditures, which are always recorded in cell D18 for the months of August through December is:
=SUM(August:December!D18).
Explanation:
First, enter the excel starting formula "=SUM(". Type "August" or left-click on the August sheet with the mouse. Type in colon and December or hold the Shift key and left-click on the December sheet. Then, select the cell C3 in the December sheet. Before pressing "Enter," add a closing bracket. The sum formula looks exactly like this: "=SUM(August:December!D18)." This formula can completely be typed manually. The formula sums up cell D18 across each of the sheets from August to December, returning a value.
Sammy Co. uses process costing to account for the production of popcorn. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 20,000 units for materials and 18,200 units for conversion costs. Beginning inventory consisted of $6,200 in materials and $4,400 in conversion costs. May costs were $47,000 for materials and $32,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 55% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:
Answers
Answer:
$2.00
Explanation:
Calculation to determine what The cost per equivalent unit for conversion costs using the weighted average method would be:
Using this formula
Cost per equivalent unit for conversion costs=Beginning inventory for conversion costs +May costs for conversion)/Equivalent units for conversion costs
Let plug in the formula
Cost per equivalent unit for conversion = ($4,400 + $32,000)/18,200
Cost per equivalent unit for conversion =$36,400/18,200
Cost per equivalent unit for conversion = $2.00
Therefore The cost per equivalent unit for conversion costs using the weighted average method would be:$2.00
Now- a quick question. Assume at the beginning of Year2, Becker Company has a credit (positive) balance in the AOCI account of $10800. Becker Company reports $653000 of net income for Year2. Becker has an unrealized gain of $12000 during Year2. The gain qualifies as OCI (Other comprehensive income). 1. What will Becker report as Accumulated Other Comprehensive Income on the Year2 balance sheet
Answers
Answer:
Becker Company
The amount that Becker will report as Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
= $22,800.
Explanation:
a) Data and Calculations:
Year 2 Beginning balance:
Accumulated other comprehensive income (AOCI) = $10,800 credit
Year 2 reported net income = $653,000
Unrealized gain during Year 2 = $12,000
The Accumulated Other Comprehensive Income on the Year 2 balance sheet is:
Beginning balance $10,800
Unrealized gain 12,000
AOCI for Year 2 = $22,800
b) Becker's Accumulated Other Comprehensive Income includes unrealized gains and losses arising from some investments, pension plans, and hedging transactions. These are usually reported in the equity section of the balance sheet and then netted off from the retained earnings.
If the return on stock A in year 1 was 6 %, in year 2 was 3 %, in year 3 was 18 % and in year 4 was 3 %, what was the standard deviation of returns for stock A over this four year period? (Round your answer to 1 decimal place and record without a percent sign. If your final answer is negative, place a minus sign before the number with no space between the sign and the number).
Answers
Answer:
12.4
Explanation:
We need to,first of all, determine the arithmetic average return of all the returns, which is the sum of the returns divided by the number of returns
average return=(6%+3%+18%+3%)/4
average return=7.50%
Years return (return-average return) (return-average return)^2
1 6.00% -1.50% 0.022500%
2 3.00% -4.50% 0.202500%
3 18.00% 10.50% 1.102500%
4 3.00% -4.50% 0.202500%
average return 7.50% variance 1.530000%
standard deviation=variance^(1/2) 12.4%
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear-making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will be
Answers
Answer: $8,000,000
Explanation:
From the question given, the cost of the building facility is $80 million. Also, it should be noted that the default rate for depreciation is given as 10%, therefore, the company's annual depreciation costs for this facility space will be:
= Depreciation rate × Cost of building
= 10% × $80,000,000
= 0.1 × $80,000,000
= $8,000,000
Which of the following is a major difference between a budget constraint and production possibilities frontier?
a. A production possibilities frontier conveys the relative prices of the two goods, whereas a budget constraint accounts for diminishing returns.
b. A production possibilities frontier is usually straight, whereas a budget constraint is typically curved.
c. A budget constraint typically has a constant slope, whereas the slope of a production possibilities frontier is usually different at various points.
d. There is no difference. They convey the same information.
Answers
Answer:
c
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPF is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
So, the PPF exhibits diminishing return. The slope of the PPF is different at different points. this makes the PPF a curve
the budget constraint is a straight line that shows the various combinations of goods a consumer can consume given her income. the budget constraint is a straight line because the slope is constant at each point on the curve
Also, the slope of the budget constraint is the relative prices of the two goods
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Labor-related DLHs $112,190 600 2,000 2,600
Machine setups setups 40,440 500 700 1,200
Order size MHs 609,770 3,000 3,200 6,200
$762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
$203.26 per setup
$190.55 per setup
$122.97 per setup
$33.70 per setup
Answers
Answer:
Machine setups= $33.7 per setup
Explanation:
Giving the following information:
Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total
Machine setups setups 40,440 500 700 1,200
To calculate the activity rate for Machine setup, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setups= 40,440 / 1,200
Machine setups= $33.7 per setup
Wasilko Corporation produces and sells one product The budgeted selling price per unit is $114. Budgeted unit sales for February is 9,900 units. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $4.00 per pound. The direct labor wage rate is $24.00 per hour. Each unit of finished goods requires 2.4 direct labor-hours. Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour. The variable selling and administrative expense per unit sold is $1.60. The fixed selling and administrative expense per month is $70,000. The estimated net operating income (loss) for February is closest to:
Answers
Answer: $21,080
Explanation:
First calculate the contribution margin per unit
= Sales - Variable costs
= Selling price - Raw materials - Direct labor cost - Manufacturing overhead - Variable selling and administrative expense
= 114 - (6 * 4) - (2.4 * 24) - (9 * 2.4) - 1.60
= $9.20
The Contribution margin is:
= 9.20 * 9,900 units
= $91,080
Net operating income = Contribution margin - fixed cost
= 91,080 - 70,000
= $21,080
Short-term investments are intended to be converted into cash within the longer of one year or the operating cycle of the business, and are readily convertible to cash. True or False
Answers
Answer:
True
Explanation:
The reasons why many companies invest in other companies includes
1. Due to excess cash not needed immediately, so invested to earn additional income to use for operations
2. Long- term strategic reasons etc
The criteria for a current asset is that the investment must be liquid and be able to convert to cash within one year (or become a long-term investment).
Short-term investments
This is a current assets. It is also called marketable securities. This is a form of an investments made in marketable securities that can be converted easily to cash which a company plans to hold for 1 year or less than one year.
The 3 categories of short-term investments. They includes:
1. Trading securities
2. available-for-sale securities
3. Held to maturity investment.
Your grandfather put some money in an account for you on the day you were born. You are now years old and are allowed to withdraw the money for the first time. The account currently has in it and pays an interest rate.
Required:
a. How much money would be in the account if you left the money there until your twenty-fifth birthday?
b. What if you left the money until your sixty-fifth birthday?
c. How much money did your grandfather originally put in the account?
Answers
Answer:
Missing word "You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3996 in it and pays an 8% interest rate."
a. At 18 years, future value of current amount (compounded for another 7 years at 8%)
= $3,996 * (1.08)^7
= $3,996 * 1.7138
= $6,848.34
b. At age 65, future value of this amount (compounded for another 40 years at 8%)
= $6,848.44 * (1.08)^40
= $6,848.44 * 21.7245
= $148,779.93
c. Future Value = Present Value * (1 + Interest Rate)^n
So, let initial the money deposited be represented by Y
=> $3,996 = Y * (1.08)^18
=> $3,996 = Y * 3.996
Y = $3,996 / 3.996
Y = $1,000
Consider the following information for the manufacturing cell of Stripes Company: Maximum units produced in a quarter 250,000 units Actual units produced in a quarter 200,000 units Productive hours in a quarter 50,000 hours Compute the theoretical velocity and the actual velocity in units per hour.
Answers
Answer: Theoretical velocity = 5 units per hour.
Actual velocity = 4 units per hour.
Explanation:
Based on the information given in the question, the theoretical velocity will be:
Firstly, we'll calculate the theoretical cycle time which will be:
= (50,000 hours x 60 minutes per hour) / 250,000 units
= 12 minutes per unit
Actual cycle time will be:
= (50,000 hours x 60 minutes per hour) / 200,000 units
= 15 minutes per unit
The theoretical velocity:
= 60 minutes / 12 minutes
= 5 units per hour.
2. The e actual velocity in units per hour:
= 60 minutes per hour / 15 minutes per unit
= 4 units per hour
One important employer tactic for sharing information and opinions is to hold a group meeting in the workplace during working hours in which employees are forced to listen to management's antiunion and pro-company presentations. This gathering is referred to as a
Answers
Answer: captive audience meeting
Explanation:
Captive audience meeting refers to the compulsory meeting of employees that is arranged by an employer which is typically done as a response to a trade union organizing campaign.
It should be noted that the maid.idea behind the captive audience meeting is for the employer to dissuade the employees from them joining the union.
Local marketing is an effective tool used by marketers to reach intended market segments. Groupon has capitalized on this concept by tailoring brands and marketing to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores. According to its website, Groupon “offers a vast mobile and online marketplace where people discover and save on amazing things to do, see, eat, and buy. By enabling real time commerce across local businesses, travel destinations, consumer products, and live events, shoppers can find the best a city has to offer. Groupon is redefining how small businesses attract and retain customers by providing them with customizable and scalable marketing tools and services to profitably grow their businesses.” This concept lies at the heart of Groupon’s mission: “to connect local commerce, increasing consumer buying power while driving more business to local merchants through price and discovery.” To help consumers make those connections, Groupon offers a mobile app, online marketplace, and social media touchpoints where customers can readily access information on its daily deals. Questions: Q1. How does Groupon use target marketing? Provide examples. Q2. Discuss the ways in which small businesses can utilize local social media marketing in your community. Q3. Have you heard about Groupon? Explain their business Q4. Do you use Groupon? Q5. Is it effective in helping local businesses to meet the challenges of local marketing? Why or why not?
Answers
Answer:
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Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 40 per unit Direct labor $ 60 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,000,000 (per year) Selling and administrative costs for the year Variable $ 770,000 Fixed $ 4,250,000 Production and sales for the year Units produced 100,000 units Units sold 70,000 units Sales price per unit $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.
Answers
Answer:
Sims Company
Income Statements Variable Costing Absorption Costing
Sales revenue $24,500,000 $24,500,000
Cost of goods sold:
Variable cost of manufacturing 9,100,000 9,100,000
Variable cost of selling and admin. 770,000 0
Fixed manufacturing cost 0 4,900,000
Total cost of goods sold $9,870,000 $14,000,000
Contribution margin $14,630,000 0
Gross profit 0 $10,500,000
Fixed /Period costs:
Fixed manufacturing cost $7,000,000 0
Selling and administrative expenses:
Variable $ 770,000
Fixed 4,250,000 4,250,000
Total period/fixed costs $11,250,000 $5,027,000
Net operating income $3,380,000 $5,473,000
Explanation:
a) Data and Calculations:
Manufacturing costs
Direct materials $ 40 per unit
Direct labor $ 60 per unit
Overhead costs
Variable $ 30 per unit
Total variable manufacturing cost per unit = $130
Fixed $ 7,000,000 (per year)
Selling and administrative costs for the year
Variable $ 770,000
Fixed $ 4,250,000
Production and sales for the year
Units produced 100,000 units
Units sold 70,000 units
Ending inventory = 30,000 units
Sales price per unit $ 350 per unit
Halsted Corp. has identified three cost pools in its manufacturing process: equipment maintenance, setups, and quality control. Total cost assigned to the three pools is $214,500, $101,400, and $153,000, respectively. Cost driver estimates for the pools are 10,000 machine hours, 150 setups, and 450 quality inspections, respectively.
Required:
Calculate the activity rate for each of Halsted's cost pools.
Answers
Answer:
Maintenance $21.45 per Machine Hour
Setup $676 per Setup
Quality Control $340 per Inspection
Explanation:
Calculation to determine the activity rate for each of Halsted's cost pools.
Activity rate for MAINTENANCE COST
Using this formula
Activity rate= Total maintenance cost / Total machine hours
Let plug in the morning
Activity rate=$214,500/ 10,000
Activity rate= $21.45 per Machine Hour
Activity rate for SETUPS
Using this formula
Activity rate= Total Setups /Setups
Let plug in the formula
Activity rate= $101,400/150
Activity rate=$676 per Setup
Activity rate for QUALITY CONTROL
Using this formula
Activity rate= Total Quality control /Quality inspections
Let plug in the formula
Activity rate= $153,000/450
Activity rate= $340 per Inspection
Therefore the activity rate for each of Halsted's cost pools will be:
Maintenance $21.45 per Machine Hour
Setup $676 per Setup
Quality Control $340 per Inspection
Calculate the Accounts Payable balance. (Enter the balance, along with a "Bal." reference on the correct side of the T-account.) Accounts Payable May 2 7,500 13,000 May 1 May 22 12,000 400 May 5 7,500 May 15 200 May 23
Answers
Answer and Explanation:
The computation of the account payable balance is given below:
Account Payable balance on month end is
= 13,000 + 400 + 7500 + 200 - 7500 - 12000
= $1,600
Hence, the account payable balance is $1,600
The same is to be reflected on the debit side of account payable T account
The same is to be considered
Select the market segment that looks the most promising?
1. Luxury trenfollowers
Segment size 5,000(5%)
Growth rate 7%
2. School children
Segment size 35,000 (35%)
Growth rate 1%
3. University students
Segment size 24,099(24%)
Growth rate 5%
4. Outdoor enthusiasts
Segment size 14,000 (14%)
Growth rate 5%
5. Urban commuters
Segment size 20,000 (20%)
Growth rate 3%
Answers
Answer:
Luxury Trend followers
Explanation:
The consider which market segment shows the most or higest level of promise, we may have to the growth rate of each segment, which is the percentage change in earnings or revenue over a specific period of time. From the data given, the market segment with the greatest growth rate is the trend followers segment with a growth rate of 7%
Luxury trend followers : 7%
School children : 1%
University students : 5%
Outdoor enthusiasts : 5%
Urban Commuters : 3%
Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 18900 and ending work in process equaled 1000 units. Concord had no beginning work in process inventory. Conversion costs are applied uniformly throughout production, and all materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 30% complete and total materials costs equaled $86940
Answers
Answer:
the material cost per unit is $4.60 per unit
Explanation:
The computation of the material cost per unit is shown below:
= Total material cost ÷ equivalent units of material
= $86,940 ÷ (18,900 - 1,000) × 100% + 1,000 × 100%
= $86,940 ÷ (17,900 + 1,000)
= $86,940 ÷ 18,900
= $4.60 per unit
Hence, the material cost per unit is $4.60 per unit
The same should be considered and relevant
