The preparation of the necessary journal entries for The Fine Art Museum is as follows:
Journal Entries:
a. Debit Cash $500,000
Credit Admissions Fees $500,000
To record the receipt of admissions fees in cash from visitors.b. Debit Cash $250,000
Credit Admissions Fees $250,000
To record the receipt of special admissions fees for "Friends of the Museum."c. Debit Salary Expense $250,000
Credit Salary Payable $60,000
Credit Cash $190,000
To record salary expense paid and payable.d. Debit Operating Expenses $400,000
Credit Operating Expenses Payable $30,000
Credit Cash $370,000
To record operating expenses paid and payable.Debit Supplies $50,000
Credit Operating Expenses $50,000
To transfer operating expenses to Supplies.Debit Supplies Expense $30,000
Credit Supplies $30,000
To record supplies expense for the year.e. Debit Pledges Receivable $200,000
Debit Cash $150,000
Credit Pledges Receivable $150,000
Credit Allowance for Uncollectible Pledges $30,000
To record pledges receivable and allowance for uncollectibles.f. Debit Cash $600,000
Credit Sale of collections $600,000
To record the sale of wonderful collections from a will.Data Analysis:
Allocation of Expenses:
Programs = 80%
General and Administrative = 20%
a. Cash $500,000 Admissions Fees $500,000
b. Cash $250,000 Admissions Fees $250,000 ($25 x 10,000)
c. Salary Expense $250,000 Salary Payable $60,000 Cash $190,000
d. Operating Expenses $400,000 Operating Expenses Payable $30,000 Cash $370,000
Supplies $50,000 Operating Expenses $50,000
Supplies Expense $30,000 Supplies $30,000
e. Pledges Receivable $200,000 Estimated Receivable Pledges $170,000
Uncollectible Pledges $30,000
Cash $150,000 Pledges Received $150,000
f. Cash $600,000 Sale of collections $600,000
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trình bày ưu nhược điểm của các loại hình doanh nghiệp
Answer:
Explanation:
Doanh nghiệp tư nhân;
Công ty hợp danh;
Công ty TNHH 1 thành viên;
Công ty TNHH 2 thành viên;
Công ty cổ phần;
Emmitt uses his leadership and position to produce effects on others and influence his followers. What term is used to describe this ability of leadership?
a. Coercion
b. Force
c. Power
d. Authority
Answer:
c. Power
Explanation:
Leadership can be defined as a process which typically involves motivating, encouraging and inspiring employees working under an individual to be innovative and create positive changes that will foster growth and enhance the success of a business firm or company in the future.
A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her. Some types of power expressed by leaders are referent power, legitimate power, coercive power, etc.
Generally, leaders use their powers to get other people to follow them. Some forms of power result from a formalized position in the organization while others are derived from personal characteristics or knowledge.
In this scenario, Emmitt uses his leadership and formal position to produce effects on others and influence his followers. Thus, the terminology which is used to describe Emmit's ability of leadership is power.
In conclusion, power is based on three (3) main factors, which are leader, follower and situation.
) Calculate the CPI for each year. Show your work in the chart and circle the CPI for each year. b) Calculate the inflation rate for each year compared to the year prior. Show your work in the chart and circle the inflation rate for each year. c) Based on your completed chart, what is the percentage decrease or increase in 2022 prices compared to 2020
Answer:
CPI in 2019 = 80
CPI in 2020 = 100
CPI in 2021 =120
CPI in 2022 =180
Inflation rate in 2019 = -
Inflation rate in 2020 = 25%
Inflation rate in 2021 = 20%
Inflation rate in 2022 = 50%
There was a 25% increase in price from year 2020 to 2022
Explanation:
Please find attached an image of the table used in answering this question
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
CPI in 2019 = 16/20 x 100 = 80
CPI in 2020 = 20 / 20 x 100 = 100
CPI in 2021 = 24 / 20 x 100 = 120
CPI in 2022 = 36 / 20 x 100 = 180
Inflation is a persistent rise in the general price levels
Inflation rate = (change in prices / previous years price) x 100
Inflation rate in 2020 = [(20 - 16) / 16] x 100 = 25%
Inflation rate in 2021 = [(24 - 20) / 20] x 100 = 20%
Inflation rate in 2022 = [(36 - 24) / 24] x 100 = 50%
Gotiable sells straw hats for $24 each. The April inventory purchases are summarized below. Gotiable sold 142 hats at a hat festival on April 28. Units Cost each Dollars Beg. Inv. 84 3 252 April 2 75 4 300 April 14 66 7 462 April 23 52 8 416
Assume that Gotiable uses the average cost method for inventory costing.
1. What is the average cost of one hat? (Round to the nearest penny (2 decimal points)).
2. What will be the dollar value of the inventory on the April 30th balance Sheet? (Round to the nearest dollar)
3. What will Gotiable report as Gross margin for the hats for the month of April? (Round to the nearest dollar)
Answer and Explanation:
The computation is shown below:
1.
Particulars Units Unit Cost Dollars
Beg. Inv. 84 $3 $252
Apr-02 75 $4 $300
Apr-14 66 $7 $462
Apr-23 52 $8 $416
Total 277 $1,430
Average cost of one hat is
= Total cost of purchases ÷ Units purchased
= $1,430 ÷ 277 units
= $5.16
2.
Ending Inventory in Units = Units purchased - Units sold
= 277 units - 142 units
= 135 units
Now
Value of Ending Inventory = Units in Ending Inventory × Average cost per unit
= 135 units × $5.16
= $696.60
= $697
3
Gross Margin = Units sold × (Selling Price - Cost of goods sold)
= 142 units × ($24 - $5.16)
= $2,675.28
= $2,675
All of the following are anticipated effects of a proposed project. Which of these should be considered when computing the cash flow for the final year of the project? Operating cash flow and salvage values only Salvage values and net working capital recovery only Operating cash flow, net working capital recovery, salvage values Net working capital recovery and operating cash flow only Operating cash flow only
Answer: Operating cash flow, net working capital recovery, salvage values
Explanation:
The anticipated effects of a proposed project that should be considered when computing the cash flow for the final year of the project include the operating cash flow, net working capital recovery, and the salvage values.
It should be noted that the operating cash flows which consist of the net income and the non cash expenses with the salvage value and the redemption of working capital are all included during the computation of the cash flow for the final year of the project.
Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by
Answer: None of the choices.
Explanation:
The options to the question are:
a. imprisonment for up to fifty years.
b. imprisonment for up to twenty years and/or fines.
c. fines up to $5 million.
d. none of the choices
Based on the questions asked, the options provided aren't correct. It should be noted that Elbert can be punished by imprisonment in this case for a period of your to about five years as well as a fine of up to $1000.
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $50,000 in its bank account. The note has a three-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:
Question Completion:
Required:
1.Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3.If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2018?
Answer:
Cucina Corp.
1. Annual Amortization Schedule
Year Beginning Interest Expense Repaid Principal Ending Notes
Notes Payable on Notes Payable Payable
1 $50,000.00 $2,140.23 $15,842.25 $34,157.68
2 $34,157.68 $1,329.68 $16,652.80 $17,504.84
3 $17,504.84 $477.71 $17,504.77 $0.00
2. (a) January 1, 2018
Debit Cash $50,000
Credit Installment Note Payable $50,000
To record the issuance of the installment note.
December 31 of
(b) 2018
Debit Interest Expense $2,140.23
Debit Installment Note Payable $15,842.25
Credit Cash $17,982.48
To record the first installment repayment, including interest.
(c) 2019
Debit Interest Expense $1,329.68
Debit Installment Note Payable $16,652.80
Credit Cash $17,982.48
To record the second installment repayment, including interest.
(d) 2020
Debit Interest Expense $477.71
Debit Installment Note Payable $17,504.77
Credit Cash $17,982.48
To record the third and final installment repayment, including interest.
3. (b) 2018
Debit Interest Expense $625
Credit Interest Payable $625
To accrue interest expense for the year ($50,000 * 5% * 3/12)
Explanation:
a) Data and Calculations:
Installment note payable obtained on January 1, 2018 = $50,000
Period of note payable = 3 years
Interest rate = 5% compounded annually
Annual interest payment = December 31
A major distinction between a conventional bank and an Islamic bank is that Islamic banks __ are allowed to charge higher interest on loans. cannot accept private deposits. cannot pay or charge interest. are not subject to any form of law,
Answer:
cannot pay or charge interest.
Explanation:
Islamic banks are banks that are based on Islamic laws or Sharia laws which is found in the Qur'an.
In Islamic banking, all banking transactions must be compliant with the Sharia laws.
Islamic banks differ from conventional banks in that :
1. they prohibit usury : Usury is charging interest on loans
2. they prohibit all forms of speculation : Islamic laws prohibit all forms of gambling
3. Investments in items that are not allowed in the Qur'an e.g. alcohol
Islamic bank use equity participation to make money. When an Islamic bank lends money to a business, instead of charging interest on the loan, the receive equity in that business and are entitled to a part of the company's shares
Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400. The machine's useful life is estimated at 10 years, or 394,000 units of product, with a $9,000 salvage value. During its second year, the machine produces 33,400 units of product.
Required:
Determine the machineâs second-year depreciation and year end book value under the straight-line method.
Answer:the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
Explanation:
Straight line depreciation is calculated as
Depreciation= Initial value – salvage value / useful life
Depreciation=($48,400- $9,000)/10=$3,990
The depreciation expense each year would be $3990
Book value = Cost of asset- accumulated deprecation
Book value = Cost of asset - (2 years x depreciation)
= $48,400- (2 x $3,990)
= $40,420
Therefore, the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
Wood used in the production of furniture. select a type of costs 2. Fuel used in delivery trucks. select a type of costs 3. Straight-line depreciation on factory building. select a type of costs 4. Screws used in the production of furniture. select a type of costs 5. Sales staff salaries. select a type of costs 6. Sales commissions. select a type of costs 7. Property taxes. select a type of costs 8. Insurance on buildings. select a type of costs 9. Hourly wages of fur
Answer:
Variable costs change with the volume of production.
Fixed costs remain constant for a certain level of production.
Mixed costs have an element of both in that they are constant but will change if a certain level of production is passed.
1. Wood used in production of furniture ⇒ Variable cost
2. Fuel used in delivery trucks ⇒ Variable cost
3. Straight-line depreciation on factory building ⇒ Fixed cost
4.Screws used in production of furniture ⇒ Variable cost
5. Sales staff salaries ⇒ Fixed cost
6. Sales commissions ⇒ Variable cost
7. Property taxes ⇒ Fixed cost
8. Insurance on buildings ⇒ Fixed cost
9. Hourly wages of furniture craftsmen ⇒ Variable cost
In 4-6 sentences, discuss how understanding the concept of price elasticity of demand is useful for a business owner/firm operating in any market structure. Copying the definition or restating the definition of elasticity will result in loss of points. (What does price elasticity of demand tell the firm in terms
Answer:
The concept of price elasticity is important to a firm because it would help a firm determine how to change prices in order to increase total revenue
For example, if a firm has an elastic demand, if price is increased, the quantity demanded would fall. The fall in demand would be greater than the increase in price. As a result, total revenue would fall. If price is reduced, the quantity demanded would increase.. the increase in demand would be greater than the reduction in price. Total revenue would increase
If on the other hand, demand is inelastic, if price is increased, total revenue increases. If price is reduced, total revenue reduces
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
How does unemployment impact a society
unemployment promotes poverty in the society
Explanation:
as people don't earn an income poverty is promoted which causes problems in economy
[ Shareholders - Employees - Managers - Officers - Board of Directors ]
(a) Who manages the big picture and strategies for corporations, and who manages the day to day affairs of a corporation?
(b) How are each put in their position?
What kind of business can you start without start up capital?
Answer:
Blog or Vlog
Explanation:
you can start a daily life Blog in social media.
When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices
Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
bRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,048 4 7 Dinks 2,236 5 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $82,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is
Answer:
Ramapo Company
The factory overhead allocated per unit of Dinks is:
= $56.94.
Explanation:
a) Data and Calculations:
Product Number of Units Direct Labor Machine
Hours Per Unit Hours Per Unit
Blinks 1,048 4 7
Dinks 2,236 5 6
Fabrication Assembly
Estimated overhead $82,200 $102,000
Machine hours:
Blinks 7,336
Dinks 13,416
Total machines hours 20,752
Direct Labor hours:
Blinks 4,192
Dinks 11,180
Total machines hours 15,372
Total factory overhead Blinks Dinks
Fabrication department $29,058 $53,142
Assembly department 27,816 74,184
Total allocated overhead $56,874 $127,326
Units produced 1,048 2,236
Factory overhead per unit $54.27 $56.94 ($127,326/2,236)
The seven main functions of marketing summarize what it takes to _____.
Explanation:
The seven functions of marketing are distribution, market research, setting prices, finance, product management, promotional channels and matching products to consumers
I guess this may help
Answer:
All of the above
Explanation:
just took it
Ruston Company had Net Income for 2020 of $6,200,000. The firm invested $4,000,000 in manufacturing equipment during 2020. The equipment is being depreciated over five years using straight-line depreciation, starting in 2020. Assuming no other adjustments to cash flow than those mentioned here, create a statement of cash flows for 2020 with amounts in thousands. What is the Net Cash Flow in 2020
Answer:
$3,000,000
Explanation:
Calculation to determine the Net Cash Flow in 2020
STATEMENT OF CASH FLOW
For the Year 2020
Cash flow from operating Activities:
Net Income $6,200,000
Add Depreciation Expense $ 800,000
Net Cash provided by operating activities $7,000,000
($6,200,000+$800,000)
Cash flow from Investing activities:
Investment in Equipment ($4,000,000)
Net Cash used in Investing activities ($4,000,000)
Net Cash flow in 2020 $3,000,000
Depreciation under Straight Line method = (Cost - Salvage Value)/Useful Life
Depreciation under Straight Line method= (4000000-0)/5
Depreciation under Straight Line method= 800,000
Therefore the Net Cash Flow in 2020 is $3,000,000
On December 31, 2020, the Bennett Company had 110,000 shares of common stock issued and outstanding. On July 1, 2021, the company sold 22,000 additional shares for cash. Bennett's net income for the year ended December 31, 2021, was $630,000. During 2021, Bennett declared and paid $72,000 in cash dividends on its nonconvertible preferred stock. What is the 2021 basic earnings per share
Answer:
$4.61
Explanation:
Calculation to determine the 2021 basic earnings per share
Using this formula
2021 basic earnings per share=Net income-Cash Dividend/shares of common stock issued+(additional shares for cash*6/12)
Let plug in the formula
2021 basic earnings per share=$630,000-$72,000/110,000+(22,000*6/12)
2021 basic earnings per share=$558,000/110,000+11,000
2021 basic earnings per share=$558,000/121,000
2021 basic earnings per share=$4.61
Therefore the 2021 basic earnings per share is $4.61
The 2021 basic earnings per share is $4.61
Earnings per share = (Net Income - Preferred Dividends) / WACSO
EPS = (630,000 - 72,000) / 121,000
EPS = 558,000 / 121,000
EPS = 4.61
To compute for Weighted average common stock outstanding.
January 1, 2021 110,000 * 12/12 110,000
July 1, 2021 22,000 * 6/12 11,000
Weighted Average Common Stock outstanding 121,000
Therefore, the 2021 basic earnings per share is $4.61
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what is probability/impact matrix
Explanation:
probability and impact metrix is a tool for the project team iad in prioritizing risks.
While traditional and charismatic styles of leadership focus on ___________________________________, transformational leadership involves an emphasis on _________________________ rather than the individual. getting the job done, tasks tasks, personality vision, hardwork personalities, principles
Answer:
personality vision, hard work personalities
Explanation:
Charismatic leaders are those that make use of their language style to charm and influence others. They often have the ability to communicate with people at a deeper level of understanding. While the transformational leadership style focuses on internal motivation and positive development of followers.Profit Center Responsibility Reporting for a Service Company
Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:
Revenues—N Region $1,039,000
Revenues—S Region 1,281,400
Revenues—W Region 2,205,700
Operating Expenses—N Region 658,400
Operating Expenses—S Region 762,600
Operating Expenses—W Region 1,333,900
Corporate Expenses—Dispatching 518,400
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:
North South West
Number of scheduled trains 5,400 6,500 9,700
Number of railroad cars in inventory 1,200 2,000 1,700
Question Completion:
1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations Thomas Railroad Company Divisional Income Statements For the Quarter Ended December 3:1 North South West Revenues Operating expenses Income from operations before service department charges Service department charges: Dispatching Equipment Management Total service department charges Income from operations
2. What is the profit margin of each division? Round to one decimal place Region North Region South Region West Region Identify the most successful region according to the profit margin Profit Margin 0%6
3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?
a. The method used to evaluate the performance of the divisions should be reevaluated
b. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
c. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
d. None of these choices would be Included
e. All of these choices (a, b & c) would be included.
Answer:
Thomas Railroad Company
1. Thomas Railroad Company
Divisional Income Statements
For the Quarter Ended December 3:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Income from operations
before service
department charges $380,600 $518,800 $871,800
Service department charges:
Dispatching $63,600 $106,000 $90,100
Equipment management 39,500 47,550 70,950
Total service
department charges $103,100 $153,548 $161,050
Income from operations 277,500 $365,252 $710,750
2. Profit margin ratio 26.7% 28.5% 32.2%
West's performance is above all the rest, with a profit margin of 32.2%.
3. e. All of these choices (a, b & c) would be included.
Explanation:
Divisions North (N) South (S) West (W)
Revenues $1,039,000 $1,281,400 $2,205,700
Operating expenses 658,400 762,600 1,333,900
Corporate Expenses—Equipment Management 259,700
Corporate Expenses—Treasurer’s 158,000
General Corporate Officers’ Salaries 349,000
Additional data:
Divisions North (N) South (S) West (W) Total
Number of scheduled trains 5,400 6,500 9,700 21,600
Number of railroad cars in inventory 1,200 2,000 1,700 4,900
Corporate Expenses—Equipment Management 259,700/4,900 = $53
Corporate Expenses—Treasurer’s 158,000/21,600 = $7.315
North (N) South (S) West (W) Total
Service departments costs:
Dispatching $63,600 $106,000 $90,100 $259,700
Equipment management 39,500 47,550 70,950 158,000
General Corporate Officers’ Salaries 349,000
Given that individuals tend to judge the favorability of their outcomes relative to what others receive, what can be the result of someone getting rewarded for their performance but yet being disappointed in the reward that they receive?
Lewis Vacation Rentals has been experiencing a recent decline in its bookings. In an effort to increase sales, the company is offering its employees a 1 percent share in the company profit over the next six months in addition to regular employee salaries. Will this plan increase motivation? Why or why not?
Answer:
im not to sure
Explanation:
Answer:
C
Explanation:
expand the profitable departments and close down unprofitable ones
It should not usually be clear whether we are describing independent or mutually exclusive projects in the following chapters because when we only describe one project then it can be assumed to be independent.
a. True
b. False
Answer:
false
Explanation:
A mutually exclusive project is a project that if one occurs then the other project cannot occur also at the same time. Mutually exclusive projects are independent projects also
Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $72,000 and a fair value of $96,000. The asset given up by Armstrong Co. has a book value of $120,000 and a fair value of $114,000. Boot of $24,000 is received by Armstrong Co.What amount should Armstrong Co. record for the asset received
Answer:
the amount that should be recorded as the asset is $96,000
Explanation:
The computation of the amount that should be recorded as the asset is given below:
Book value of assets given up = $72,000
Add : cash paid in exchange. $24,000
Amount recorded as an asset should be $96,000
We simply added the book value and the cash paid amount for an exchange
Therefore the amount that should be recorded as the asset is $96,000
You discover that many consumers want easy access to pens in their cars, so you decide to produce a steering wheel that has a pen tucked inside that can conveniently pop out whenever someone needs it. The steering wheels become very popular with car companies. Developing this product is an example of what
Answer: c. Allocative efficiency
Explanation:
When an economy is experiencing allocative efficiency, it means that goods in the economy are being produced according to consumer preferences. This means that if consumers want a certain good in a certain quantity, the economy will produce that good in that quantity.
This is the case here. You saw that consumers wanted a good and you went ahead and produced it therefore giving consumers what they wanted.
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 195,000 in October, 203,500 in November, and 200,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $152,000 per month. Compute the total budgeted overhead for October.
Answer:
the budgeted overhead for October is $288,500
Explanation:
The computation of the budgeted overhead for October is given below:
The budgeted overhead is
= fixed overhead + variable overhead
= $152,000 + 195,000 units × $0.70
= $152,000 + $136,500
= $288,500
Hence, the budgeted overhead for October is $288,500
Therefore the same is to be considered
Watermelon, Inc. provides the following data: 20X9 20X8 Cash $41,000 $25,000 Accounts Receivable, Net 102,000 62,000 Merchandise Inventory 72,000 50,000 Property, Plant, and Equipment, Net 181,000 120,000 Total Assets $396,000 $257,000 Additional information for the year ending December 31, 20X9: Net Credit Sales $550,000 Cost of Goods Sold 150,000 Interest Expense 25,000 Net Income 181,000 Calculate the rate of return on total assets for 20X9.
Answer:
the rate of return on total assets is 63.09%
Explanation:
The calculation of the rate of return on total assets is shown below:
Return on total Asset is
= {(Net Income + Interest Expense) ÷ Average Total assets} × 100
= {($181,000 + $25,000) ÷ ($396,000 + $257,000) ÷ 2} × 100
= $206,000 ÷ $326,500 × 100
= 63.09%
Hence, the rate of return on total assets is 63.09%
MC Qu. 71 Benjamin Company had the following results... Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $9.95) $159,200 Direct materials and direct labor$95,200 Overhead (20% variable) 15,200 Selling and administrative expenses (all fixed) 31,900 (142,300) Operating income $16,900 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,900 units at $7.39 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $590 and selling and administrative costs by $290. Assuming Benjamin has excess capacity and accepts the offer, its profits will:
Answer:
Benjamin Company
Assuming Benjamin has excess capacity and accepts the offer, its profits will increase by:
= $3,995.
Explanation:
a) Data and Calculations:
Sales (16,000 units at $9.95) $159,200
Direct materials and direct labor $95,200
Overhead (20% variable) 15,200
Selling and administrative expenses (all fixed) 31,900
Total expenses (142,300)
Operating income $16,900
Relevant costs:
Direct materials and direct labor $95,200
Variable Overhead (20% variable) 3,040 ($15,200 * 20%)
Total expenses (98,240)
Variable cost per unit = $6.14 ($98,240/16,000)
Additional costs:
Fixed overhead 590
Selling and administrative expenses (all fixed) 290
Accepting the offer:
Revenue from offer = $28,821 (3,900 * $7.39)
Costs:
Variable cost $23,946 (3,900 * $6.14)
Additional cost:
Fixed overhead 590
Selling and
administrative expenses 290
Total costs on the offer $24,826
Increase in profits = $3,995
Cunningham Industries reported actual sales of $2,000,000, and fixed costs of $510,000. The contribution margin ratio is 30%.
Compute the margin of safety in dollars and the margin of safety ratio.
Answer:
Results are below.
Explanation:
Giving the following information:
Actual sales= $2,000,000
Fixed costs= $510,000
Contribution margin ratio= 0.3
First, we need to calculate the break-even point in sales dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 510,000 / 0.3
Break-even point (dollars)= $1,700,000
Now, the margin of safety:
Margin of safety= (current sales level - break-even point)
Margin of safety= 2,000,000 - 1,700,000
Margin of safety= $300,000
Finally, the margin of safety ratio:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= 300,000 / 2,000,000
Margin of safety ratio= 0.15 = 15%
