Answer:
10.16%
Explanation:
Coupon amount = 11% * 1000
Coupon amount = $110
Price of bond = 1000*108.3%
Price of bond = $1,083
Current yield = Coupon amount / Price of bond
Current yield = $110 / $1,083
Current yield = 0.1015697
Current yield = 10.16%
So, the current yield on the bonds is 10.16%.
Here are selected 2017 transactions of Akron Corporation.
Jan. 1 Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,000 and had a useful life of 10 years with no salvage value
June 30 Sold a computer that was purchased on January 1, 2015. The computer cost $36,000 and had a useful life of 3 years with no salvage value. The computer was sold for $5,000 cash
Dec. 31 Sold a delivery truck for $9,000 cash. The truck cost $25,000 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $4,000 salvage value.
Required:
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Akron Corporation uses straight-line depreciation.
Answer:
Akron Corporation
Journal Entries:
Jan. 1 Debit Assets Disposal $62,000
Credit Equipment $62,000
To transfer the cost of equipment to the Assets Disposal account.
Debit Accumulated Depreciation $62,000
Credit Assets Disposal $62,000
To transfer the accumulated depreciation to the Assets Disposal account.
June 30 Debit Assets Disposal $36,000
Credit Computer $36,000
To transfer the cost of the computer to the Assets Disposal account.
Debit Accumulated Depreciation $30,000
Credit Assets Disposal $30,000
To transfer the accumulated depreciation to the Assets Disposal account.
Debit Cash $5,000
Credit Assets Disposal $5,000
To record the proceeds from the disposal.
Dec. 31 Debit Accumulated Depreciation $12,600
Credit Assets Disposal $12,600
To transfer the accumulated depreciation to the Assets Disposal account.
Debit Assets Disposal $25,000
Credit Delivery Truck $25,000
To transfer the cost of the delivery truck to the Assets Disposal account.
Debit Cash $9,000
Credit Assets Disposal $9,000
To record the proceeds from the disposal.
Dec. 31 Debit Loss on Disposal of Assets $4,400
Credit Assets Disposal $4,400
To record the loss from the disposal of assets.
Explanation:
a) Data and Analysis:
Jan. 1 Accumulated Depreciation $62,000 Assets Disposal $62,000 Assets Disposal $62,000 Equipment $62,000
June 30 Assets Disposal $36,000 Computer $36,000 Accumulated Depreciation $30,000 Assets Disposal $30,000 Cash $5,000 Assets Disposal $5,000
Dec. 31 Accumulated Depreciation $12,600 Assets Disposal $12,600 Assets Disposal $25,000 Delivery Truck $25,000 Cash $9,000 Assets Disposal $9,000
Dec. 31 Loss on Disposal of Assets $4,400 Assets Disposal $4,400
A state is conducting an examination of mortgage loan originator Basil Thyme. During the examination, the agency is authorized to do all of the following, except:a. Administer oaths or affirmationsb. Control access to Basil’s officec. Subpoena witnessesd. Require production of relevant documents
Answer: B. Control access to Basil’s office.
Explanation:
During the conduct of the examination of mortgage loan originator Basil Thyme, the agency is authorized to administer oaths or affirmations, subpoena witnesses and require production of relevant documents.
The agency cannot control the access to Basil's office. It can only control access to any records or documents of an individual whim is under investigation.
Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is Group of answer choices
Answer:
Net income from operating activities = $77000
Explanation:
Below is the calculation for Net income from operating activities:
Given the net income = $60000
Decrease in accounts receivable = $8000
Increase in accounts payable = $4000
Depreciation = $5000
Add the values in the net income in order to get the net income from operating activities.
Net income from operating activities = 60000 + 8000 + 4000 + 5000
Net Income from operating activities = $77000
Given below are several ratios. Select the accounts or amounts that would be used in order to calculate the ratio. You will have more than one response to each ratio. Some accounts or amounts may not be used at all. (Select all that apply.) Debt-to-equity ratio a.Cash paid for acquisitions b.Interest expense c.Total dividends paid d.Cash flow from operations before interest and tax payments e.Total stockholders' equity f.Net income g.Total liabilities h.Cash flow from operations
Answer:
Total stockholders' equity.Total liabilities.Explanation:
The Debt to equity ratio shows the proportions of the financing options used to finance the operations of the company namely debt and equity.
It is calculated by the formula:
= Total liabilities / Total stockholders' equity * 100%
As shown by the formula , the relevant accounts are:
Total stockholders' equity.Total liabilities.Married taxpayers Otto and Ruth are both self-employed and file a joint return. Otto earns $435,200 of self-employment income and Ruth has a self-employment loss of $23,100. How much 0.9 percent Medicare tax for high-income taxpayers will Otto and Ruth have to pay with their 2020 income tax return?
Answer: $1,458.90
Explanation:
As they are filing together, the first step would be to find out the taxable income after accounting for Ruth's loss.
Total taxable income = Otto's earnings - Ruth's loss
= 435,200 - 23,100
= $412,100
There is an additional 0.9% Medicare tax on the amount that people file that is above $250,000 when they file jointly and are married..
The additional Medicare will be:
= (412,100 - 250,000) * 0.9%
= $1,458.90
Melanie is the director of human resources for a small manufacturing firm. She has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies. If the firm decides to upgrade its network, Melanie will probably function in what role in the firm's buying center
Answer:
Influencer
Explanation:
An influencer is a person that has the ability to affect the purchasing decision of customers through their authority, position, relationship, or relationship.
They have good social relations and this is an asset in directing customer buying decision.
In the given scenario Melanie has a strong personal interest in technology, and is known throughout the firm as the one with the most knowledge about new kinds of communications technologies.
This knowledge will be beneficial in the buying centre, where she can be an influencer.
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
You can borrow and lend at the interest rates of 7.00% in the US and 5.00% in Canada. Based on Interest Rate Parity, the forward premium for CAD should be exactly equal to: Group of answer choices 1.90% - 1.87% 1.02% 98.11%
Answer:
1.90%
Explanation:
Note that that CAD exchange rate would be in terms of how many US dollars can be exchanged for 1 CAD, which means that the formula for forward premium would be stated in terms of US dollars, I mean the US$ as the numerator and CAD's interest rate would be the denominator
the forward premium for CAD=((1+US interest rate)/(1+Canada interest rate))-1
the forward premium for CAD=((1+7%)/(1+5%))-1
the forward premium for CAD=1.90%
Differentiate between an active partner and sleeping partner?
Answer:
active partners are involved in daily running of the business.
sleeping partner are not involved in daily running of the business
Explanation:
Active partners are always involved in management while sleeping partners are not and mostly consists of financing not the business.
Angle Company started business on January 1. During the year, the company purchased merchandise with an invoice price of $500,000. Angle also paid $20,000 freight on the merchandise. During the year, Angle also returned $80,000 of the merchandise to its suppliers. All purchases were paid for in a timely manner, and a $10,000 cash discount was taken. $418,000 of the merchandise was sold for $627,000. What is the December 31 balance in the Inventory account
Answer:
$12,000
Explanation:
Given the above information, the ending balance in inventory account is computed as seen below
= Merchandise purchased - merchandise withdrawn - Merchandise returned to suppliers + Cash discount taken
= $500,000 - $418,000 - $80,000 + $10,000
= $12,000
Therefore, the balance on the inventory account as at December 31 is $12,000
5. What is the purpose of a Job Cost Sheet? What type of information is included in one?
Answer:
The purpose of a job cost sheet is to record the various costs that went into the manufacturing of a product or the provision of a service. This will enable the company know how much the process cost so that the company can understand the cost of the product better and make informed decisions based on this.
The information generally included in a job cost sheet include:
Direct labor hours Direct materials used and their costMaterial requisition number Manufacturing overhead rate and the basis (eg labor hours or machine hours).Total cost of production.If a coupon bond has two years to maturity, a coupon rate of 10 %, a par value of $1000 , and a yield to maturity of 12 %, then the coupon bond will sell for $nothing . (Round your response to the nearest two decimal place) The price of a bond and its yield to maturity are ▼ positively related negatively related unrelated .
Answer:
The right solution is "$966.27".
Explanation:
Given values are:
Coupon rate,
= 10%
Par value,
= $1000
Yield of maturity,
= 12%
then,
Coupon will be:
= [tex]1000\times 10 \ percent[/tex]
= [tex]1000\times 0.1[/tex]
= [tex]100[/tex] ($)
Now,
The present value of coupon will be:
= [tex]A\times \frac{(1-(1+r)^n)}{r}[/tex]
By putting the value, we get
= [tex]100\times \frac{1-(1.12)^{-2}}{0.12}[/tex]
= [tex]100\times \frac{1-0.7971}{0.12}[/tex]
= [tex]100\times \frac{0.2029}{0.12}[/tex]
= [tex]169.08[/tex] ($)
The present value of par value will be:
= [tex]\frac{1000}{(1+12 \ percent)^2}[/tex]
= [tex]\frac{1000}{(1.12)^2}[/tex]
= [tex]797.19[/tex] ($)
hence,
The price of bond will be:
= [tex]Present \ value \ of \ coupon+Present \ value \ of \ par \ value[/tex]
= [tex]169.08+797.19[/tex]
= [tex]966.27[/tex] ($)
At the fourth and final resource, one operator handles the product. No quality problems exist at this step and the processing time is 12 minutes per unit. For every unit of demand, how many units have to flow through the second step in the process
Answer:
2.25 units.
Explanation:
Processing time is 5 minutes per unit for step 1. The total capacity is 60 minutes then no. of units produced can be;
60 / 5 = 12 units per hour.
For second step processing time is 4 minutes per unit. There is 0.85 unit of product is scrapped. Then no. of units produced per hour can be ;
60 / 4 = 15 units per hour.
After scrap the net product units per hour will be;
15 units * [1 - 0.85] = 2.25 units per hour.
If Fees Earned has been credited, it is most likely that:
A. a correcting entry for the overstatement of revenue was recorded. B. a customer paid in advance
C. services were provided.
D. the owner made an investment.
Answer:
C. services were provided.
Explanation:
If Fees Earned has been credited, it is most likely that: "services were provided."
For fees to be earned it means something must have been done in exchange for the fee. Considering this is a business-related issue, then it is correct to conclude that "If Fees Earned has been credited, it is most likely that: services were provided."
Option A is not correct because the overstatement of revenue is not related to the fee warmed being credited.
Option B is not correct, because a payment made in advance does not correlate to a fee earned. Option D is not correct as well, because an investment has nothing to do with a few earned.
Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: The price of trucking services
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
The following information pertains to Cullumber Company. 1. Cash balance per bank, July 31, $11,310. 2. July bank service charge not recorded by the depositor $65. 3. Cash balance per books, July 31, $11,440. 4. Deposits in transit, July 31, $4,615. 5. $2,600 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company. 6. Outstanding checks, July 31, $1,950. (a) Prepare a bank reconciliation at July 31, 2022.
Answer:
See below
Explanation:
Cullumber Company
Bank Reconciliation
July 31, 2022
Cash balance as per bank
$11,310
Add:
Deposits in transit
$4,615
Less:
Outstanding checks
($1,950)
Adjusted bank balance
$13,975
Cash balance per books
$11,440
Add:
Electronic fund transfer received
$2,600
Less:
Bank service charges
($65)
Adjusted cash balance
$13,975
Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods. Right after he achieves the utility-maximizing level of consumption of the two goods, the price of peanut butter falls. After he adjusts to this event, the marginal utility of peanut butter goes _____ and that of ice cream goes _____.
Answer:
The marginal utility of peanut butter goes down and that of ice cream goes up.
Explanation:
The substitution effect states that when the price of a product falls, it will lead to a rise in the quantity demanded of the product as buyers will buy more of the product that is now relatively cheaper.
And as more of a good is bought, its marginal utility falls. And as less of a product is bought, its marginal utility increases.
Based on the above explanation therefore, the marginal utility of peanut butter goes down and that of ice cream goes up after Kawamura adjusts to the event.
This is because as more of peanut butter is bought due to the fall in its price, its marginal utility falls. And as less of ice cream is bought as it is now relatively more expensive, its marginal utility increases.
Complete each statement with the term that correctly defines each platform strategy advantage.
Platform businesses tend to frequently ____________ pipeline businesses.
Platforms scale more efficiently than pipelines by eliminating __________
Platform businesses _________ digital technology can grow much faster
Answer:
Note See full and organized question in the attached picture below
1. Platform businesses tend to frequently outperform pipeline businesses.
2. Platforms scale more efficiently than pipelines by eliminating gatekeepers.
3. Platform businesses leveraging digital technology can grow much faster.
4. Platforms unlock new sources of value creation and supply.
5. Feedback loops from consumers to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.
Porter Corporation has fixed costs of $660,000, variable costs of $24 per unit, and a contribution
margin ratio of 40 percent.
Compute the following:
a. Unit sales price and unit contribution margin for the above product.
b. The sales volume in units required for Porter Corporation to earn an operating income of
$300,000.
c. The dollar sales volume required for Porter Corporation to earn an operating income of
$300,000
Answer and Explanation:
The computation is shown below:
a. The unit sale price is
But before that the variable cost ratio is
= 100% - 40%
= 60%
Now the unit sale price i
= $24 × 100% ÷ 60%
= $40
Now the contribution margin per unit is
= $40 - $24
= $16
b. the sales volume in units is
= Fixed cost + operating income ÷ contribution margin per unit
= ($660,000 + $300,000) ÷ $16
= 60,000 units
c. Sales volume in dollars is
= Fixed cost + operating income ÷ contribution margin ratio
= ($660,000 + $300,000) ÷ 40%
= $2,400,000
The balance in the Prepaid Insurance account after the adjusting entries have been recorded represents the: A. cost of the insurance expired during the period B. value of the insurance prepayment that remains to benefit future periods C. cash paid for insurance of current and future periods D. amount owed for insurance at the end of the accounting period
Answer:
B.value of insurance prepayed
During 2015, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below:
Completed-Contract Percentage-of-Completion
2013 $ 475,000 $ 900,000
2014 625,000 950,000
2015 700,000 1,050,000
$1,800,000 $2,900,000
Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of:____________
Answer:
$450,000
Explanation:
Calculation to determine , the affect of this accounting change on prior periods that should be reported by a credit of:
Using this formula
Accounting change on prior periods=(2013 Percentage-of-Completion+2014 Percentage-of-Completion)-(2013 Completed-Contract+2014 Completed-Contract)*(1-Tax rate)
Let plug in the formula
Accounting change on prior periods=[($900,000+$950,000)-($475,000+$625,000)]*(1-40%)
Accounting change on prior periods=($1,850,000-$1,100,000)*0.60
Accounting change on prior periods=$750,000*.60
Accounting change on prior periods=$450,000
Therefore Assuming an income tax rate of 40% for all years, the affect of this accounting change on prior periods should be reported by a credit of:$450,000
Q2. With the help of book please elaborate What is the difference between a corporate strategy and a competitive strategy? Give three examples of each. (Words limit up to 150)
Answer and Explanation:
Competitive and corporate strategy are very important for the success and good management of a business. Competitive strategy is one that allows a company to promote elements capable of making it different from its competitors. Examples of competitive strategy are offering lower prices, higher quality products and negotiation between customers.
Corporate strategy, on the other hand, is one that allows the company to generate elements that will increase its profit and strengthen its capacity to be more competitive. Examples of this type of strategy are the acquisition of subsidiary companies, the merger of competing companies and the restructuring of the company.
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $234,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:
Year Hours Used
1 2,800
2 1,900
3 2,000
4 2,000
5 1,800
6 1,500
Required:
a. Prepare a depreciation schedule for six years using the straight-line method.
b. Prepare a depreciation schedule for six years using the double-declining-balance method.
c. Prepare a depreciation schedule for six years using the activity-based method.
Answer:
University Car Wash
a. Straight-line Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $34,500 $34,500 $199,500
2 $234,000 $34,500 $69,000 $165,000
3 $234,000 $34,500 $103,500 $130,500
4 $234,000 $34,500 $138,000 $96,000
5 $234,000 $34,500 $172,500 $61,500
6 $234,000 $34,500 $207,000 $27,000
b. Double-Declining-Balance Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $77,220 $77,200 $156,780
2 $234,000 $51,737 $128,937 $105,043
3 $234,000 $34,664 $163,601 $70,379
4 $234,000 $23,225 $186,826 $47,154
5 $234,000 $15,561 $202,387 $31,583
6 $234,000 $4,593 $206,980 $27,000
c. Activity-Based Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $48,300 $48,300 $185,700
2 $234,000 $32,775 $81,075 $152,925
3 $234,000 $34,500 $115,575 $118,425
4 $234,000 $34,500 $150,075 $83,925
5 $234,000 $31,050 $181,125 $52,875
6 $234,000 $25,825 $206,950 $27,050
Explanation:
a) Data and Calculations:
Cost of new machines = $234,000
Residual value of equipment = $27,000
Depreciable amount = $207,000
Estimated useful life = 6 years
Straight-line depreciation expense per annum = $34,500 ($207,000/6)
Double-declining-balance rate = 33% (100%/6 * 2)
Year Depreciation Declining Balance
1 $77,220 $156,780
2 $51,737 $105,043
3 $34,664 $70,379
4 $23,225 $47,154
5 $15,561 $31,583
6 $4,593 $27,000
Estimated useful life in hours = 12,000
Depreciation rate per hour = $17.25 ($207,000/12,000)
Actual usage per year:
Year Hours Used Usage Charge
1 2,800 $48,300 (2,800 * $17.25)
2 1,900 $32,775 (1,900 * $17.25)
3 2,000 $34,500 (2,000 * $17.25)
4 2,000 $34,500 (2,000 * $17.25)
5 1,800 $31,050 (1,800 * $17.25)
6 1,500 $25,825 (1,500 * $17.25)
Suppose that the price of a cupcake is $4. At this price, 50 cupcakes will be demanded. If the price rises to $5 per cupcake, consumer surplus will
Answer: fall by less than $50.
Explanation:
The options are:
• fall by more than $50.
• fall by less than $50.
• rise by less than $50.
• rise by more than $50.
Expert Answer
Consumer surplus, is referred to as the economic measure of the excess benefit that a customer gets. The consumer surplus is the difference between the amount that the customer is willing to pay and the amount that he or she eventually pays.
Based on the question, the total Price paid is: 50 × $4 = $200
Total Revised Price = 50 × $5 = $250
Therefore, there will be a fall by $50 that's ($250 - $200).
Please research employment opportunities in the accounting field and provide insight into the relevance and usefulness of Excel in relation to the job title/description. Please explain how a potential candidate could leverage the functionality of Excel to make their every-day tasks efficient, effective and accurate.
Answer:
Following are the responses to the given question:
Explanation:
The progress throughout the financial sector does not take a confined path. One can move to more responsible roles when you're on the broad route to changing industries, receiving certificates, or switching disciplines — without even being derailed. Select from the range of staff inside the broad fields of public accountancy. You could be a lead financial official or a partner in a company of qualified checksum. A height of your career.
Although the accounting foundation is founded upon consistent accounting practices, the accountants can apply this theory in many various ways.
Employment accounts governmental and non-profit:
Accounting FundJobs of IRSPublic Accounting Jobs:
Estimated CostForensic Accountable Enrolled AgentImmobilien AssessorAccountant TaxationFiscal ProsecutorsPreparing taxJobs in private accounting:
Clerk of AccountingPayable/Deputy Clerk AccountsSystem Accounting SpecialistActuarial accountant/accountant insuranceBookkeepingAnalyst for the budgetAccountant of capitalFinancial Controller/Control OfficeAccountant costsMeasurement of environmental accountant/sustainabilityAccountant payrollFiscal Services:
Specialist in Business ValuationCertificated Financial PlannerFiscal AnalystAdvisor on taxesAccounts only include the cash that can be represented financially. Some individuals call accountancy "the language of business," as well as its objective is to allow accountancy users to make better choices
This included many tasks performed by the CPAs for its clients:
Asset records collection and maintenanceAssess banking transactions and make key management for optimum financial practicesReviewing accounting system and financial accounting to verify that they are effective and conform with approved accounting standards and proceduresTax documents and related tasksInstalling an automated production system costing $300,000 is initially expected to save Zia Corporation $52,000 in expenses annually. If the system needs $7,500 in operating and maintenance costs each year and has a salvage value of $30,000 at year 10, what is the IRR of this system
Answer:
8.87%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300,000
Cash flow each year from year 1 to 9 = $52,000 - $7,500 = $44500
Cash flow in year 10 = $44500 + $30,000 = $74500
IRR = 8.87%
To determine the value of IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
A researcher wants to test the order of integration of some time series data. He decides to use the DF test. He estimates a regression of the form
delta yt = mu + si yt-1 + mut
and obtains the estimate ˆ? = -0.02 with standard error = 0.31.
(a) What are the null and alternative hypotheses for this test?
(b) Given the data, and a critical value of -2.88, perform the test.
(c) What is the conclusion from this test and what should be the next step?
(d) Why is it not valid to compare the estimated test statistic with the corresponding critical value from a t-distribution, even though the test statistic takes the form of the usual t-ratio?
Answer:
a) H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) t stat = -0.064
c) We will reject the Null hypothesis and the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
Explanation:
a) stating the null and alternative hypothesis
H0: u = presence of a unit root
HA: u ≠ presence of a unit root ( i.e. stationary series )
b) performing the test
critical value = -2.88
T stat = coefficient / std error
= -0.02 / 0.31 = -0.064
c) From the test, the value of T stat > critical value we will reject the Null hypothesis hence the next step will be to accept the alternative hypothesis
d) It is not valid to compare the estimated t stat with the corresponding critical value because a random walk is non-stationary while the difference is stationary because it is white noise
In 20X4, Bosh Corporation had income of $60,000 using absorption costing. Beginning and ending inventories were 13,000 and 8,000 units, respectively. The fixed manufacturing overhead cost was $4.00 per unit. What was the net income using direct/variable costing
Answer:
Net income under variable costing $80,000
Explanation:
The computation of the net income using direct/variable costing is shown below:
Net income under absorption costing $60,000
Add fixed cost under applied $20,000
Net income under variable costing $80,000
Working
Beginning inventory 13000
Less ending inventory -8000
Decrease in inventory 5000
Now under applied inventory $20,000
3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.
Answer:
The amount of the impairment loss to be recorded is $6,800.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
On January 1, 2020, Starn Tool & Manufacturing Company purchased a copyright for $31,000 cash. It is estimated that the copyrighted item will have no value by the end of 10 years.
Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.
The explanation of the answer is now provided as follows:
Amortization expenses for 2020 = Annual amortization expense = Copyright cost / Estimated useful life of the copyright = $31,000 / 10 = $3,100
Book value of copyright on January 2, 2022 = Copyright cost - Amortization expenses for 2020 = $31,000 - $3,100 = $27,900
Copyright fair value = $21,100
Impairment loss = Book value of copyright on January 2, 2022 - Copyright fair value = $27,900 - $21,100 = $6,800
Therefore, the amount of the impairment loss to be recorded is $6,800.
A company uses the weighted average method for inventory costing . At the beginning of a period the production department had units in beginning Work in Process inventory which were 33 % complete the department completed and transferred 168,000 units . At the end of the period units were in the ending Work in Process inventory and are 68 % complete . Compute the number of equivalent units produced by the department .
Answer
a. 178,200 units
Explanation:
Comple question "A company uses the weighted average method for inventory costing. During a period, a production department had 54,000 units in beginning goods in process inventory which were 33% complete; the department completed and transferred 168,000 units. At the end of the period, 15,000 units were in the ending goods in process inventory and are 68% complete. Compute the number of equivalent units produced by the department. 178,200. 186,320. 183,000. 168,000. 114,000."
Calculation of Equivalent Unit (as per Weighted Method)
Unit % of Completion Equ. Unit
Unit Completed & Transferred Out 168,000 100% 168,000
Closing WIP 15,000 68% 10,200
Total Equivalent Unit 178,200
