Answer:
the active business of promoting and selling products or services, including market research and advertising
Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $140,000; and special needs are $100,000. Sarah has the following assets: $20,000 in bank accounts, $30,000 in retirement plans, and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchase? A. $80,000 B. $130,000 C. $150,000 D. $160,000
Answer:
$130,000
Explanation:
Sarah is making use of the needs approach to determine how much life insurance to buy
The first step is to calculate the total amount of life insurance
Total amount of life insurance = Total needs - total assets
Total need = income needs + cash needs + special needs
= $140,000 + $30,000 + $100,000
= $270,000
Total assets= retirement plan + bank account + investment account
= $30,000 + $20,000 + $40,000
= $90,000
Total amount of life insurance = $270,000-$90,000
= $180,000
Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows
= $180,000 - $50,000
= $130,000
differentiate between piecemeal and time related salary determination methods
Answer:
See below
Explanation:
1. The piecemeal pay method compensates worked based on the quantity of output produced while the time method rewards workers based on the time spent in producing the output. The piecemeal rate system pays per unit of production. The time rate system pays per the number of hours worked.
2. The piecemeal rate system emphasizes the quantity of output compared to the time rate system that focuses on the quality of output.
3.The piecemeal system recognizes and rewards more to efficient and skilled employees, but the time rate system tends to compensate employees in the same cadre equal amounts.
Here, we are required to differentiate between piecemeal and time related salary determination methods.
In Piecemeal salary determination methods, Workers are paid according to the number of products/units produced/action performed while in Time-related salary determination methods, workers are paid in accordance to the amount of time they spend at work/on a task or on the job.
In piecemeal salary determination methods, workers are not remunerated (i.e not paid for work or service) for the number of hours worked, regardless of how long it took to complete the task at hand while in Time-related salary determination methods, orkers with the same experience/qualifications are paid on salary scales regardless of the amount of work done.
Piecemeal salary determination method is mostly used in factories particularly in the textile/technology industries where the labor force is unskilled or sometimes semi-skilled. while Time-related salary determination method is used in many private and public sector businesses as majority of the labor force are skilled.
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Aqua Ltd issues a prospectus inviting the public to subscribe for 30 million ordinary shares of $2.00 each. The terms of the issue are that $1.00 is to be paid on application and the remaining $1.00 within one month of allotment.
Applications are received for 36 million shares during July 2019. The directors allot 30 million shares on 15 August 2019. The shares were allotted on a first-come, first-serve basis. The directors refunded the application money for 6 million shares on 15 August 2019. The amounts payable on the allotment are due by 20 September 2019.
By 20 September 2019, the holders of 5 million shares have failed to pay the amounts due on allotment. The directors forfeit the shares on 30 September 2019. The shares are resold on 15 October 2019 as fully paid. An amount of $1.90 per share is received. The remaining balance of forfeited shares were refunded on 20 October 2019.
Provide the journal entries necessary to account for the above transactions and events.
Answer and Explanation:
The journal entries are shown below:
1. Bank Dr $36,000,000 (36 million × $1)
To Share application $36,000,000
(Being the application received)
2. Share application $36,000,000
To Share capital $30,000,000
To bank $6,000,000
(Being the allotment is recorded)
3. Share allotment $30,000,000
To SHare capital $30,000,000
4. Bank Dr $25,000,000
To Share allotment $25,000,000
(being allotment is recorded)
5. Share capital $10,000,000
To SHare forfeited $5,000,000
To Share allotment $5,000,000
(Being share forfetied is recorded)
6. Bank Dr $9,500,000
Share forfeited Dr $500,000
To Share capital $10,000,000
(Being share forfeited is recorded)
7. Share forfeited Dr $4,500,000
To Bank $4,500,000
(Beng share forfeited is recorded)
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 145 Units in beginning inventory 0 Units produced 2,440 Units sold 2,280 Units in ending inventory 160 Variable costs per unit: Direct materials $ 49 Direct labor $ 17 Variable manufacturing overhead $ 17 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 85,400 Fixed selling and administrative expense $ 22,800 The total gross margin for the month under absorption costing is:
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed manufacturing overhead:
Unitary fixed overhead= 85,400/2,440= $35
Absorption costing income statement:
Sales= 2,280*145= 330,600
COGS= 2,280* (49 + 17 + 17 + 35)= (269,040)
Gross profit= 61,560
Total selling and administrative= 22,800 + (2,280*10)= (45,600)
Net income= 15,960
To increase tax revenue, the U.S. government imposed a 2-cent tax on checks written on bank account deposits in 1932 (in today's dollars, about 34 cents per check). Complete the following statements on the impact of this tax on the money multiplier and the money supply. a. The tax on checks written would make people less likely to write checks. Thus, people might start holding more money as demand deposits . This would increase the currency-deposit ratio. b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier. increased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn increases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. not changed, because the check tax would not impact the money supply or the money multiplier. c. Some economists argue the sharp decline in the money supply is at least partially at fault for the severity of the Great Depression. The check tax was intended to increase government revenue. However, the unintended consequence was to decrease deposits in banks, which reduced the money supply further. From this perspective, the check tax policy was a bad idea .
Answer:
b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier.
Explanation:
Below is a partial current state VSM of a production process. In the Stenciling step a single machine, which is manned full-time by a single operator, is used to perform the operation. In the packaging step, the product is packaged into boxes by three employees working full-time. No machines are used in the packaging step. Employees work 7.5 hours a day. What is the minimum batch size that would enable the stenciling operation to meet daily demand:
Answer:
5000 units.
Explanation:
Kindly check the attachment for the diagram.
In order to solve this question that is the Determination of the minimum batch size that would enable the stenciling operation to meet daily demand, what we have to do is to divide the total number of time operation done per day by the Takt time.
The takt time = 7.5 hours a day × 3600/ 5000 daily demand rate.
The Takt time = 5.4 seconds.
Hence, the minimum batch size that would enable the stenciling operation to meet daily demand = 5000 from the given diagram
At the end of the preceding year, XYZ Inc. had a deferred tax asset of $17,500,000, attributable to its only temporary difference of $70,000,000 for estimated expenses. At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end, XYZ Inc. now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $12,000,000 for the current year and the tax rate is 25% for all years. Required: In its current year balance sheet, what amount should XYZ report as income tax payable? In its current year balance sheet, what amount should XYZ report as deferred tax asset (net of the allowance)? In its current year income statement, what should XYZ report as income tax expense? In its current year income statement, what should XYZ report as net income? Prepare the journal entry to record XYZ's income tax expense for the current year.
Answer:
Kindly check the explanation section.
Explanation:
So, we are given the following data or parameters in this particular Question which is going to help us in solving this particular Question.
=> the taxable income = $12,000,000 for the current year.
=> the tax rate is 25% for all years.
=> deferred tax asset = $17,500,000.
=> The temporary difference = $70,000,000 for estimated expenses. => "At the end of the current year, the temporary difference is $45,000,000."
So, let us dive straight into the solution;
Step one: calculate or Determine the income tax expense.
So, we have ( $45,000,000 × 25%) - $17,500,000 = − $6,250,000. This is recorded in the credit side as $6,250,000.
Step two: Determine the income tax payable.
=> taxable income × tax rate for all years = 12,000,000 × 25% = 3,000,000. This is recorded at the credit side.
Step three: Determine the valuation allowance in deferred.
The valuation allowance in deferred = 1/3[ 45,000,000 × 24] = 3,750,000. This is also recorded in the Credit side.
You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 850 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,500 units of shelf space for the texts. If the used book program makes a profit of $20 on each calculus text, $8 on each history text, and $16 on each marketing text, how many of each type of text should you purchase to maximize profit?
Answer:
you should purchase 750 calculus books that will yield $15,000 in profits.
Explanation:
you have to maximize the following equation 20C + 8H + 16M
where:
C = calculus book
H = history book
M = marketing book
the constraints are
C + H + M ≤ 850 (total number of books)
2C + H + 5M ≤ 1500 (maximum amount of shelf-space)
using Solver, the optimal solution is 750 calculus books
Don James purchased a new automobile for $19,000. Don made a cash down payment of $4,750 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. Financing is available at a 24% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount of the required monthly payment. (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)
Answer:
$636.26 ≈ $636
Explanation:
we can use the present value of an annuity formula to determine the monthly payment:
PV = monthly payment x annuity factor
monthly payment = PV / annuity factor
PV = $19,000 - $4,750 = $14,250PV annuity factor, 2%, 30 periods = 22.3965monthly payment = $14,250 / 22.3965 = $636.26 ≈ $636
lang warehouses borrowed $100,000 from a bank and signed a note requiring 20 annual paymentsof $13,388 beginning one year from date of agreement. determine the interest rate implicit in this agreement
Answer:
267.76%
Explanation:
In order to find the implied interest rate we first need to find the total amount that is paid after the 20 years. We calculate this by multiplying the annual payment amount by the 20 years like so...
$13,388 * 20 = $267,760
We see that the final amount that the borrower will pay to the bank is $267,760. Now we divide this amount by the initial borrowed amount to calculate the interest rate.
$267,760 / $100,000 = 2.6776 ... multiply by 100 to get percentage
2.6776 * 100 = 267.76 %
Finally, we see that the borrower will pay an interest of 267.76% on the loan.
Now, consider the situation in which Olivia wants to earn a return of 3.00%, but the bond being considered for purchase offers a coupon rate of 6.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bonds intrinsic value to the nearest whole dollar, then its intrinsic value of (rounded to the nearest whole dollar) is its par value, so that the bond is
Answer:
Intrinsic value = $1085.87
Explanation:
Annual Rate of return = 3.00%
Annual Coupon rate = 6.00%
Now, consider the situation in which Olivia wants to earn a return of 3.00%, but the bond being considered for purchase offers a coupon rate of 6.00%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bonds intrinsic value to the nearest whole dollar, then its intrinsic value of $1085.87 (rounded to the nearest whole dollar) is HIGHER THAN its par value, so that the bond is TRADING AT PREMIUM
Intrinsic value = [tex]\frac{A}{(1+C)^1} + \frac{A}{(1+C)^2} + \frac{A}{(1+C)^3} +\frac{A}{(1+C)^4} + \frac{A}{(1+C)^5} + \frac{A}{(1+C)^6}[/tex] [tex]+ \frac{B}{(1+c)^6}[/tex]
= 30/ (1.015) + 30/(1.015)^2 + ------- + 30/ (1.015)^6 + 1000/(1.015)^6
= 29.56 + 30/1.030 + 30/1.046 + 30/1.061 + 30/1.077 + 30/1.093 + 1000/1.093
= 29.56 + 29.126 + 28.68 + 28.275 + 27.855 + 27.447 = $170.96 + $914.91
= $1085.87
Bond's par value = $1000
annual coupon rate = 6% = 0.06
semiannual coupon rate = 3% = 0.03
semiannual coupon ( A ) = 0.03 * $1000 = $30
Annual rate of return = 3% = 0.03
semi-annual rate of return ( C )= 1.5% = 0.015
Verano Inc. has two business divisions — a software product line and a waste water clean - up product line. The software business has a cost of equity capital of 12 % and the waste water clean - up business has a cost of equity capital of 6 %. Verano has 50% of its revenue from software and the rest from the waste water business. Verano is considering a purchase of another company in the waste water business using equity financing. What is the appropriate cost of capital to evaluate the business? 6% 9% 8% 12%
Answer:
9%
Explanation:
The weighted average cost of equity capital =
(50% x 12%) + (50% x 6%) = 9%
Which type of innovation has a focus on being eco-friendly?
A. Disruptive
B.Sustaining
C.Frugal
D.Sustainable
Answer:
the answer is B
Explanation:
thank me later bb
Answer:
Explanation:
the answer is D
Gentle Ben's Bar and Restaurant uses 6,400 quart bottles of an imported wine each year. The effervescent wine costs $4 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $30 each time an order is placed, and holding costs are 35 percent of the purchase price. It takes two weeks for an order to arrive. Weekly demand is 128 bottles (closed two weeks per year) with a standard deviation of 45 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. a. What is the economic quantity for Ben to order
Answer: 523.72 units
Explanation:
Economic Order Quantity = √( 2 * Annual Demand * Order Cost/ holding cost)
holding cost = 35% * Purchase price
= 35% * 4
= $1.40
EOQ = √( 2 * 6,400 * 30/ 1.40)
= 523.72 units
Margin of Safety a. If Canace Company, with a break-even point at $558,900 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $ 2. % b. If the margin of safety for Canace Company was 30%, fixed costs were $1,201,200, and variable costs were 70% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $
Answer:
a.
(1)
Margin of Safety = $131,100
(2)
Margin of Safety as % of Sales = 19%
b.
Actual Sales = $5,720,000
Explanation:
Margin of safety is the value of sales by which the business is safe from the loss. It means all the made in excess of breakeven point is the margin of safety.
a.
(1)
Margin of Safety = Actual Sales - Breakeven point = $690,000 - $558,900 = $131,100
(2)
Margin of Safety as % of Sales = (Margin of Safety / Actual Sales ) x 100 = 19%
b.
First of all calculate the Contribution margin ratio
Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%
Breakeven Sales = Fixed cost / Contribution margin ratio = $1,201,200 / 30% = $4,004,000
As the margin of safety is 30% of actual sales, so the breakeven sales i 70% ( 100% - 30% ) of Actual Sales
Actual Sales = Breakeven Sales / Breakeven sales to acual sales ratio
Actual Sales = $4,004,000 / 70%
Actual Sales = $5,720,000
Cezanne Industries is planning on purchasing a new piece of equipment that will increase the quality of its production. It hopes the increased quality will generate more sales. The company's contribution margin ratio is 50%, and its current breakeven point is $600,000 in sales revenue. If the company's fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? If Cezanne Industries' fixed expenses increase by $30,000 due to the equipment, what will its new breakeven point be (in sales revenue)? Begin by identifying the general formula to compute the breakeven sales in dollars. ( Fixed expenses + Operating income ) ÷ Contribution margin ratio = Breakeven sales in dollars Cezanne will now have to generate of sales revenue to break even.
Answer:
Break-even point (dollars)= $660,000
Explanation:
Giving the following information:
The company's contribution margin ratio is 50%
The break-even point is $600,000 in sales revenue.
Fixed expenses increase by $30,000.
To calculate the new break-even point in sales, we need to determine the break-even point for the increase in fixed costs:
Proportional break-even point (dollars)= increase in fixed costs/ contribution margin ratio
Proportional break-even point (dollars)= 30,000/0.5
Proportional break-even point (dollars)= $60,000
New break-even point:
Break-even point (dollars)= 600,000 + 60,000
Break-even point (dollars)= $660,000
Paris Company had common stock of $350,000 and retained earnings of $490,000. London Inc. had common stock of $700,000 and retained earnings of $980,000. On January 1, 2018, London issued 34,000 shares of common stock with a $12 par value and a $35 fair value for all of Paris Company's outstanding common stock. This combination was accounted for using the acquisition method. Immediately after the combination, what was the amount of total consolidated net assets? A. $2,520,000. B. $1,190,000. C. $1,680,000. D. $2,870,000.
Answer: D. $2870000
Explanation:
Consolidated Assets are the assets that a company owes whether directly or indirectly through a subsidiary which will then be shown on the consolidated balance sheet of the company.
From the information given, the amount of total consolidated net assets will be calculated as:
= ($34000 × 35) + $700,000 + $980,000
= $1,190,000 + $700,000 + $980,000
= $2,870,000
g 447,000 397,000 397,000 317,000 79,250 $2,333,000 $1,510,000 $1,361,500 $1,395,500 $715,750 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under:
Answer:
$225,000 income
Explanation:
The company is using percentage of completion technique for the valuation of construction contracts. It expects the revenue of $1,725,000 for a three year contract whose services are to be delivered every year. The company should record its revenue every year whose services are delivered at the end of the year. The company will only record its revenue as unearned revenue at the start of the year.
As an amputee herself, Morgan works in a lab experimenting with new technology that can allow a prosthetic to be attached to living cells. The Health Science career pathway Morgan works in is _____.
Support Services
Biotechnology Research and Development
Health Informatics
Diagnostic Services
Answer:
Biotech R&D
Explanation:
My mom does that
Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 94,000 Total fixed manufacturing overhead cost $ 404,200 Variable manufacturing overhead per direct labor-hour $ 4.00 Recently, Job P951 was completed with the following characteristics: Number of units in the job 50 Total direct labor-hours 100 Direct materials $ 660 Direct labor cost $ 9,400 The total job cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost= $10,890
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (404,200/94,000) + 4
Predetermined manufacturing overhead rate= $8.3 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 8.3*100= $830
Finally, the total cost of Job P951:
Total cost= 660 + 9,400 + 830
Total cost= $10,890
Apex project 1.3.1 evaluating the economy
answer
Select the qualitative characteristics for the following statements. 1. Relevance2. Faithful representation3. Predictive value4. Confirmatory value5. Comparability6. Completeness7. Neutrality8. TimelinessA) Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena. B) Having information available to users before it loses its capacity to influence decisions. C) Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future. D) Information that is capable of making a difference in the decisions of users in their capacity as capital providers. E) Absence of bias intended to attain a predetermined result or to induce a particular behavior.
Answer:
1. Comparability
2. Timeliness
3. Predictive value
4. Relevance
5. Neutrality
Explanation:
Presented here are the components in Oriole Company’s income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $ 72,660 $Enter a dollar amount for year 1 (b) $ 31,100 $Enter a dollar amount for year 1 (d) $13,290 Year 2 $108,500 $72,200 $Enter a dollar amount for year 2 (c) $Enter a dollar amount for year 2 (e) $29,900 Year 3 $Enter a dollar amount for year 3 (a) $73,190 $112,180 $46,690 $Enter a total net income for year 3 (f)
Answer:
Oriole Company
Income Statement
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
Year 1 $ 72,660 $ 41,560 $ 31,100 $ 17,810 $13,290
Year 2 $108,500 $72,200 $ 36,300 $ 6,400 $29,900
Year 3 $ 185,300 $73,190 $112,180 $46,690 $65,490
Explanation:
Data:
Year 1 $ 72,660 $Enter a dollar amount for year 1
(b) $ 31,100 $Enter a dollar amount for year 1
(d) $13,290 Year 2 $108,500 $72,200 $Enter a dollar amount for year 2
(c) $Enter a dollar amount for year 2
(e) $29,900 Year 3 $Enter a dollar amount for year 3
(a) $73,190 $112,180 $46,690 $Enter a total net income for year 3 (f)
Arrangement:
Sales Cost of Gross Operating Net
Revenue Goods Sold Profit Expenses Income
Year 1 $ 72,660 $ $ 31,100 $ $13,290
Year 2 $108,500 $72,200 $ $ $29,900
Year 3 $ $73,190 $112,180 $46,690 $
Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large television to market that will sell for $360. Management believes it must lower the price to $360 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 150,000 televisions per year. What is the change in operating income if marketing is correct and only the sales price is changed? Group of answer choices $6,600,000 $3,000,000 $(6,600,000) ($2,400,000)
Answer:
Effect on income= (2,400,000)
Explanation:
Giving the following information:
Current selling price= $380
New selling price= $360
Unitary cost= $320
Units sold= 150,000*1.1= 165,000
We need to calculate the effect on income:
Effect on income= contribution margin new sales - contribution margin old sales
Effect on income= 15,000*(360 - 320) - 150,000*(380-360)
Effect on income= (2,400,000)
Prove:
New income= 165,000*40= 6,600,000
Actual income= 150,000*(380-320)= 9,000,000
Difference= (2,400,000)
Sanchez Company engaged in the following transactions during Year 1: Started the business by issuing $42,000 of common stock for cash. The company paid cash to purchase $26,400 of inventory. The company sold inventory that cost $16,000 for $30,600 cash. Operating expenses incurred and paid during the year, $14,000. Sanchez Company engaged in the following transactions during Year 2: The company paid cash to purchase $35,200 of inventory. The company sold inventory that cost $32,800 for $57,000 cash. Operating expenses incurred and paid during the year, $18,000. Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year 2?
Answer:
The gross margin is $24,200
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin is
= Sales - cost of goods sold
= $57,000 - $32,800
= $24,200
We simply deduct the cost of goods sold from the sales so that the gross margin could come
hence, the gross margin is $24,200
We simply applied the above formula
g compute the underapplied or overapplied overhead.2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods So
Complete Question:
1. Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine- hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year:
Machine-hours 60,000
Manufacturing overhead cost $ 850,000
Inventories at year-end:
Raw materials $ 30,000
Work in process
(includes overhead applied of $36,000) $100,000
Finished goods (includes overhead applied of $180,000) $500,000
Cost of goods sold (includes overhead applied of $504,000) 1,400,000
Answer:
Luzadis Company
a) Under-applied overhead:
= Applied overhead Minus Incurred overhead
= $720,000 - $850,000
= $130,000
b) Debit Cost of Goods Sold $130,000
Credit Manufacturing Overhead Applied $130,000
To record underapplied overhead.
c) Debit Work In Process Inventory $6,500
Debit Finished Goods Inventory $32,500
Debit Cost of Goods Sold $91,000
Credit Manufacturing Overhead Applied $130,000
d) The net operating income will be higher by $39,000 if the under-applied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed entirely to Cost of Goods Sold.
Explanation:
a) Data and Calculations:
Estimated overhead cost = $900,000
Estimated activity level = 75,000 MHs
Predetermined overhead rate = $900,000/75,000 = $12
Manufacturing overhead applied = $12 * 60,000 = $720,000
Actual manufacturing overhead incurred = $850,000
Applied Ratio Underapplied
Work in process (overhead applied) $36,000 5% $6,500
Finished goods (overhead applied) $180,000 25% 32,500
Cost of goods sold (overhead applied) $504,000 70% 91,000
Total overhead under-applied $130,000
Prepare the journal entries to record the following transactions on Sheridan Company’s books using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a) On March 2, Crane Company sold $890,100 of merchandise to Sheridan Company, terms 2/10, n/30. The cost of the merchandise sold was $528,500.
(b) On March 6, Sheridan Company returned $100,500 of the merchandise purchased on March 2. The cost of the merchandise returned was $68,700.
(c) On March 12, Crane Company received the balance due from Sheridan Company.
No Date Accounts titles and explanation Debit Credit
a) March 2
a) March 2
b) March 6
b) March 6
c) March 12
c) March 12
*Please also provide info on how the calculations were found.
Answer:
Sheridan Company
Journal Entries:
March 2:
a) Debit Inventory $890,100
Credit Accounts Payable (Crane Company)
To record the purchase of merchandise, terms 2/10, n/30.
March 6:
b) Debit Accounts Payable (Crane Company) $100,500
Credit Inventory $100,500
To record the record of merchandise.
March 12:
c) Debit Accounts Payable (Crane Company) $789,600
Credit Cash Discount $15,792
Credit Cash Account $773,808
To record the payment to Crane on account.
Explanation:
The amount ($773,808) that Sheridan Company paid to Crane Company is $890,100 minus the inventory return of $100,500 ($789,600) and the cash discount of $15,792 ($789,600 * 2%).
Gina has $5,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high school in five years. Roughly how much more will Martha need to save for one-year's tuition to account for an annual rate of inflation of 3%
Answer
About 60000 for monthly inflation if this is wrong I am truly sorry i just had a bad day
Jing Company was started on January 1, Year 1 when it issued common stock for $50,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements?
Answer:
Depreciation expense - year 3 = $5184
Accumulated depreciation - Year 3 = 23040 + 5184 = $28224
Explanation:
The Financial reporting standards state that the cost of a fixed asset should include the purchase cost and all the costs necessary to bring the asset to the place and in the condition necessary for its use as intended by the management. Thus, the transportation cost will be capitalized as in FOB Shipping Point, the buyer pays for the transportation.
Cost of office equipment = 34000 + 2000 = $36000
Th double declining balance method is an accelerated method to charge depreciation in which higher depreciation is charged in the initial years and lower in the later years.
The formula for depreciation expense under this method is,
Depreciation expense = 2 * [(Asset cost - Accumulated depreciation)/Estimated useful life of the asset]
Depreciation expense - year 1= 2 * [(36000 - 0) / 5
Depreciation expense - year 1 = $14400
Depreciation expense - year 2 = 2 * [(36000 - 14400) / 5]
Depreciation expense - year 2 = $8640
Accumulated depreciation - year 2 = 14400 + 8640 = 23040
Depreciation expense - year 3 = 2 * [(36000 - 23040) / 5]
Depreciation expense - year 3 = $5184
Accumulated depreciation - Year 3 = 23040 + 5184 = $28224
Which of the following statements about the segment margin is not true? In preparing a segmented income statement, the variable expenses are deducted from sales to yield the contribution margin for each segment. The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin. The segment margin represents the margin available after a segment has covered all of its own costs. The segment margin is the best gauge of the long-run profitability of a segment because it includes only those costs that are caused by the segment.
Answer: The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin
Explanation:
Segment margin is referred to the net profit or the net loss that a particular segment of a business makes. Segment margin is used to know segments that are performing well.
It is also used to know the long-run profitability of a particular segment as it shows the margin that is available after the cost has been covered by a segment.
Based on the above illustration, the statement that isn't true will be "the segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin".
This is false as segment margin is gotten after the traceable fixed costs of a segment has been subtracted from the contribution margin of that particular segment.
Segment margin is cited as the web profit or the web loss that a selected segment of a business makes.
Segment MarginSegment margin is employed to understand segments that are performing well.
It is also accustomed to knowing the long-run profitability of a specific segment because it shows the margin that's available after the value has been covered by a segment.
Based on the above illustration, the statement that may not be true is going to be "the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin".
This is a falsehood as segment margin is gotten after the traceable fixed costs of a segment have been subtracted from the contribution margin of that individual segment.
Thus, the segment margin is obtained by deducting the common fixed costs that are allocated to a segment from that segment's contribution margin.
Find out more information about Segment margin here:
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