Answer:
Here is 6 things
Explanation:
Understand the goals of your business. ...
Focus on the financials. ...
Draft a strategy from the business strategy. ...
Use insights and data to influence decision-making. ...
Allocate your budget. ...
Measure your success.
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:
Jan. 6 Purchased goods for $1,200 from Green with terms 2/10, n/30.
6 Purchased goods from Munoz for $900 with terms 2/10, n/30.
14 Paid Green in full.
Feb. 2 Paid Munoz in full.
28 Purchased goods for $350 from Reynolds with terms 2/10, n/45.
Required:
Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Axe Corporation
Journal Entries:
Jan. 6 Debit Inventory $1,200
Credit Accounts Payable (Green) $1,200
To record the purchase of goods on credit terms 2/10, n/30.
Jan. 6 Debit Inventory $900
Credit Accounts Payable (Munoz) $900
To record the purchase of goods on credit terms 2/10, n/30.
Jan. 14 Debit Accounts Payable (Green) $1,200
Credit Cash $1,176
Credit Cash Discounts $24
To record the payment on account, including discounts.
Feb. 2 Debit Accounts Payable (Munoz) $900
Credit Cash $900
To record the payment on account, including discounts.
Feb. 28 Debit Inventory $350
Credit Accounts Payable (Reynolds)
To record the purchase of goods on credit terms 2/10, n/45.
Explanation:
a) Data and Calculations:
Jan. 6 Inventory $1,200 Accounts Payable (Green) $1,200 terms 2/10, n/30.
Jan. 6 Inventory $900 Accounts Payable (Munoz) $900 terms 2/10, n/30.
Jan. 14 Accounts Payable (Green) $1,200 Cash $1,176 Cash Discounts $24
Feb. 2 Accounts Payable (Munoz) $900 Cash $900
Feb. 28 Inventory $350 Accounts Payable (Reynolds) terms 2/10, n/45.
Over the last two decades the reduced importance of certain institutions in the primary mortgage market has been largely offset by an expanded role for others. Which has diminished, and which has expanded
Answer:
Thrifts role have decreased whereas, mortgage and commercial banks roles have increased.
Explanation:
In simple words, Credit unions and cooperative savings banks are examples of thrifts that offer a multitude of deposits and lending services. Thrifts are different from conventional institutions in that organizations may draw money through the Federal Home Loan Bank Network, allowing them to charge greater interest to its members.
The ease of doing business and less documentation with commercial banks promoted their growth.
Consider a world in which there is no currency and depository institutions issue only transactions deposits and desire to hold no excess reserves. The required reserve ratio is
Consider a world in which there is no currency and depository institutions issue only transactions deposits and desire to hold no excess reserves. The required reserve ratio is 15 percent. The central bank sells $0.98 billion in government securities.
What happens to the money supply?
Give reasons to support your answer.
Answer:
The answer is below
Explanation:
Considering the situation described above, the result is that there will be a DECREASE in the money supply of $6.53 billion.
This is because the money multiplier is calculated as 1/rr, where RR is the reserve ratio.
Hence, in this case, we have 1/0.15 = 6.67
Therefore, 6.67 × $0.98 billion = $6.53 billion.
Alpha Company, a business firm based in California, advertises its products on the Web to customers in all 50 states. In which of the following cases would a court in New Jersey be MOST LIKELY to exercise personal jurisdiction over Alpha under its long arm jurisdiction state (and U.S. constitutional law)?
a. Alpha only advertised without interactivity at its Web site.
b. Alpha conducted substantial business with New Jersey residents through its Web site.
c. Alpha interacted with New Jersey residents through its Web site.
d. None of the other answers describe proper grounds for personal jurisdiction in New Jersey.
Answer:
b. Alpha conducted substantial business with New Jersey residents through its Web site.
Explanation:
If Alpha conducted substantial business with any person living or being in New Jersey while doing so, then a New Jersey court will have jurisdiction over Alpha's business. A company can interact with its customers, for example, provide customer service for free, but if it makes business in the state, then it falls under the jurisdiction of the state.
chức năng cụ thể của đơn vị hành chính sự nghiệp
Answer:
Đơn vị hành chính sự nghiệp có các đặc điểm như sau: + Đơn vị hành chính sự nghiệp là đơn vị thụ hưởng nguồn kinh phí từ ngân sách Nhà nước trên cơ sở các quy định pháp luật và theo nguyên tắc không hoàn lại trực tiếp. + Đơn vị hành chính sự nghiệp sử dụng kinh phí cho các mục đích đã được hoạch định trước đó.
Explanation:
pls mark it brainliest
October 1 October 31 Raw materials $ 30,000 $21,000 Work in process 48,000 37,000 Finished goods 108,000 90,000 During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. What is the cost of goods manufactured
Answer:
Cost of goods manufactured= $200,000
Explanation:
Giving the following information:
October 1 October 31
Raw materials $ 30,000 $21,000
Work in process 48,000 37,000
Direct material purchase= $36,000
Direct labor= $60,000
Factory overhead costs= $84,000
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 30,000 + 36,000 - 21,000
Direct material used= $45,000
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 48,000 + 45,000 + 60,000 + 84,000 - 37,000
cost of goods manufactured= $200,000
Managers make assumptions in CVP analysis. These assumptions include:__________
a) constant total fixed costs. constant total variable costs.
b) constant fixed cost per unit.
c) constant sales volume.
d) constant variable cost per unit.
e) constant selling price per unit.
Answer:
constant variable cost per unit.
constant total fixed cost
constant selling price per unit
Explanation:
Cost-volume-profit (CVP) analysis is a way to found out if the variable and fixed cost should be changed so how it effects the profit of the firm. Also company could applied cost volume profit analysis in order to see how much units they required to sell in order to have break even or reach to the specific minimum profit margin
So in this, the total fixed cost, selling price per unit, and the variable cost per unit should be constant
The quantity of money demanded is the Group of answer choices income and volume of profits that people and businesses would like to receive. average daily volume of bank account withdrawals. amount that people and businesses choose to hold. fraction of cash holdings in an average investment portfolio.
Answer:
The amount that people and businesses choose to hold.
Explanation:
The amount that people and businesses choose to hold.
The total demand for money is the total amount of money that people wants to hold and there are three main reasons for which money is being held. First is transactions related reason, second is the precautionary reason, and third is the speculative reason. The above three reasons push the people to hold the money that becomes the total demand for money.
Purple Cab Company had 70,000 shares of common stock outstanding on January 1, 2021. On April 1, 2021, the company issued 40,000 shares of common stock. The company had outstanding fully vested incentive stock options for 7,000 shares exercisable at $12 that had not been exercised by its executives. The average market price of common stock was $14. The company reported net income in the amount of $289,915 for 2021. What is the basic earnings per share (rounded)
Answer:
Purple Cab Company
The basic earnings per share is:
= $2.64 per share.
Explanation:
a) Data and Calculations:
January 1, 2021, Outstanding common stock shares = 70,000
April 1, 2021, Issue of new common stock shares = 40,000
December, 31, 2021, Outstanding common stock shares = 110,000
Outstanding fully vested incentive stock options = 7,000
Exercise price of options = $12
Common stock market price = $14
Reported net income = $289,915
The basic earnings per share = $ (Net income/Outstanding common stock)
= $289,915/110,000
= $2.64 per share
b) The basic earnings per share does not include the fully vested incentive stock options. It is only when calculating the diluted earnings per share that the stock options will be included.
Willa and Westley are siblings who built a hair salon business from the ground up. They are now contemplating opening an additional salon location. The estimate to open an additional salon would mean adding $1 million in expenses with their profit increasing by $400,000 each year for the next 5 years (all other things equal). Willa and Westley decide:_____________
a. to take on the new salon because the expected marginal benefit ($2 million over 5 years) is greater than the estimated marginal cost ($1 million).
b. to not open a new salon because the marginal costs prove to be too high.
c. to open a second salon because the marginal cost of the new salon is low compared to other similar projects.
Answer:
A
Explanation:
The marginal benefit of a production activity is the change in total benefit as a result of increasing quantity produced by one unit
Marginal cost is the change in total cost as a result of increasing the quantity produced by one unit.
An activity should be undertaken if the marginal cost is less than the marginal benefit. It means that the activity is profitable.
Here the marginal benefit = 400,000 x 4 = 2,000,000
the marginal benefit is greater than the marginal cost. Thus, the new salon can be established
“A worksheet is a permanent accounting record and its use is required in the accounting cycle.” Do you agree? Explain. Why is it necessary to prepare formal financial statements if all of the data are in the statement columns of the worksheet?
I do not agree with the statement that "a worksheet is a permanent accounting record but I agree that its use is required in the accounting cycle.”
A worksheet does not form a part of the permanent accounting records but only acts as a device used by accountants to achieve the following purposes in each accounting cycle:
Planning the accounting work to be done in the current yearCarrying out computations and checking computationsPreparing unadjusted and adjusted trial balancesAdjustment of accountsEntering adjusted balances to the financial statements.A permanent accounting record forms part of the journal or the general ledger.
Formal financial statements must still be prepared despite the fact that all the data are in the statement columns because the worksheet is not a standardized format for preparing the financial statements for the consumption of users of financial statements. Only the professionals request worksheets as part of their going work.
Thus, a worksheet is not a part of the journal or the ledger. It is not a permanent accounting record. Moreover, the column statements in the worksheet are not acceptable formats for presenting financial statements.
Learn more about accounting worksheets (computer-based and paper-based) here: https://brainly.com/question/11440871
On July 1, 2022, Cullumber Company sells equipment for $146000. The equipment originally cost $480000, had an estimated 5-year life and an expected salvage value of $50000. The Accumulated Depreciation account had a balance of $301000 on January 1, 2022, using the straight-line method. The gain or loss on disposal is
Answer:
Accumulated depreciation = ($480,000 - $50,000)/5 *6/12 + $301,000
Accumulated depreciation = $43,000 + $301,000
Accumulated depreciation = $344,000
Date Account titles & Explanations Debit Credit
Cash $146,000
Accumulated depreciation $344,000
Gain on disposal $10,000
Equipment $480,000
So, the gain on disposal is $10,000
On December 28, I. M. Greasy, Catering completed $600 of catering services. As of December 31, the customer had not been billed nor had the transaction been recorded. Demonstrate the required adjusting entry by choosing the correct statement below.
Credit Acciunts receivable for $600.
Credit Catering revenue for $600.
Debit Unearned revenue for $600.
Debit Accounts receivable for $600.
Answer: Debit Accounts receivable for $600.
Explanation:
The customer had not been billed so that means that they still owe the company. This would make them an accounts receivable so the adjusting entry will have to debit the Accounts Receivable account for $600 to show that it is increasing.
This amount will be credited to the Accrued revenue account to show that the cash has not yet been received.
The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments
Answer: $2,673
Explanation:
The amounts to be paid are constant so this is an annuity. The present value will therefore be the present value of an annuity.
Present value of annuity = Annuity * Present value interest factor of annuity, 3 periods, 6%
= 1,000 * 2.6730
= $2,673
which of following budget would not be prepared by a retailer? Administrative, Sales, cash, production.
Answer:
Production.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year.
Basically, budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The key principle of supply chain management can be best summed up as collaboration between multiple firms. Thus, these multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.
A retailer can be defined as an individual or company that buys finished goods directly from a wholesaler and sells directly to the end users (consumers).
In this context, a retailer would prepare an administrative, sales and cash budget but certainly wouldn't prepare a production budget because retailers aren't saddled with the responsibility of producing goods.
Simply stated, a production budget would be prepared by a manufacturer or producer.
*Gains and losses taxable when investments are sold. The total deferred tax asset and deferred tax liability amounts at January 1, 2021, were $166.25 million and $25 million, respectively. The enacted tax rate is 25% each year. Required: 1. Determine the total deferred tax asset and deferred tax liability amounts at December 31, 2021. 2. Determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021. 3. Determine the income tax payable currently for the year ended December 31, 2021. 4. Prepare the journal entry to record income taxes for 2021.
Answer:
1. $160.75 million
$42 million
2. Decrease ($5.5 Million)
Increase $17 million
3. $35 million
4. Dr Tax expense $57.5 million
Cr Deferred tax asset $5.5 million
Cr Deferred tax liability $17 million
Cr Taxes payable $35 million
Explanation:
1. Calculation to determine the total deferred tax asset and deferred tax liability amounts at December 31, 2021.
Allowance for bad debt $1 million
($28 million-$32 million)* 25%
Add Subscription liability $6.25 million
($25million*25%)
Add Post retirement benefits obligation $153.5 million
($614 million*25%)
TOTAL DEFERRED TAX ASSET $160.75 million
Prepaid insurance $10 million
($40 million *25%)
Add Prepaid advertising $6 million
($24million * 25%)
Investments unrealized gain $6 million
$24million * 25%)
Add Buildings $20 million
[($380 million-$300 million) * 25%]
TOTAL DEFERRED TAX LIABILITY $42 million
Therefore the total deferred tax asset is $160.75 million and deferred tax liability amounts at December 31, 2021 is $42 million.
2. Calculation to determine the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021
DEFERRED TAX ASSET
Ending balance $160.75 million
Less Beginning balance $166.25 million
Decrease ($5.5 Million)
DEFERRED TAX LIABILITY
Ending balance $42 million
Less Beginning balance $25 million
Increase $17 million
Therefore the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2021 is :
Deferred tax asset: Decrease ($5.5 Million)
Deferred tax liability:Increase $17 million
3. Calculation to determine the income tax payable currently for the year ended December 31, 2021
Income tax payable = $140 million *25%
Income tax payable=$35 million
Therefore the income tax payable currently for the year ended December 31, 2021 is $35 million
4. Preparation of the journal entry to record income taxes for 2021.
Journal entry
Dr Tax expense $57.5 million
($5.5 million+$17 million +$35 million)
Cr Deferred tax asset $5.5 million
Cr Deferred tax liability $17 million
Cr Taxes payable $35 million
(To record tax expense)
Fender Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 10% of total sales each month. Historically, sales on account have been collected as follows: 50% in the month of the sale, 35% in the month after the sale, and the remaining 15% two months after the sale. Sales for the quarter are projected as follows:
January: $60,000
February: $30,000:
March: $90,000.
Accounts receivable on December 31 were $45,000. The expected cash collections of Fender Manufacturing Company for March are:_________
Answer:
Fender Manufacturing Company
The expected cash collections of Fender Manufacturing Company for March is:
= $58,050
Explanation:
a) Data and Calculations:
Cash sales = 10% of total sales
Credit sales = 90% (100% - 10%)
Cash collections from credit sales:
Month of the sale (50%)
Month after the sale (35%)
Two months after (15%)
Accounts receivable on December 31 = $45,000
January February March
Projected sales $60,000 $30,000 $90,000
Cash sales $6,000 $3,000 $9,000
Credit sales $54,000 $27,000 $81,000
Cash collections from credit sales:
Month of the sale (50%) $27,000 $13,500 $40,500
Month after the sale (35%) 31,500 18,900 9,450
Two months after (15%) 13,500 8,100
Cash collections from credit sales $58,050
The expected cash collections of Fender Manufacturing Company for March =
Cash collections from credit sales $58,050
Cash sales 9,000
Total cash receipts for the month $67,050
Tips for Successful LinkedIn Prospecting?
Answer:
Sales prospecting is one of the most essential elements of the whole sales process.
Some tips are;
Make LinkedIn Your Second HomeShow’em What you Got For ThemTweak and Polish Your ProfileConnect With StrategyBe more personalLewis Company's standard labor cost of producing one unit of Product DD is 3.3 hours at the rate of $12.4 per hour. During August, 43,900 hours of labor are incurred at a cost of $12.60 per hour to produce 13,100 units of Product DD.
1. Compute the total labor variance.
2. Compute the labor price and quantity variances.
3. Compute the labor price and quantity variances, assuming the standard is 3.7 hours of direct labor at $12.70 per hour.
Answer:
Compute the total labor variance.
Explanation:
Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in August. Planet typically pays for 35% of purchases in the month of purchase and 65% in the following month. What are Planet Company's total expected cash disbursements for purchases in the month of August?
a. $40,000.
b. $57,000.
c. $65,000.
d. $60,000.
e. $100,000.
Answer:
57,000
Explanation:
Planet company purchases goods worth $50,000July and also expect to purchase goods worth $70,000 in August
They pay 35% of tbs purchase in the month and 75% in the following month
Therefore the total expected cash disbursement can be calculated as follows
= (70,000×35/100)+(50,000+65/100)
= {70,000×0.35) + (50,000+0.65)
= 24,500+32,500
= 57,000
Plant assets sometimes are purchased as a group in a single transaction for a lump-sum price. This transaction is called a __________, or group, bulk, or basket purchase.
Answer:
Lump-Sum Purchase
Explanation:
Plant assets
This is simply known as well founded or important assets of an essential or useful life of more than one accounting period and are normally used in the operation of a business. One of the major characteristic of plant assets is that they are often used in operations.
They are known also as resources that has physical substance, used mainly in the operations of a business and it is not intended for sale to customers.
Plant assets are also called property, plant, equipment; plant and equipment; and fixed assets.
It is also discard (done away with) if it is not useful anymore to the company, and it has no market value.
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2020, the book value of the equipment was $30 million and its tax basis was $20 million. At December 31, 2021, the book value of the equipment was $28 million and its tax basis was $12 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2021 was $50 million.
Required:
a. Prepare the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
b. What is Ameenâs 2021 net income?
Answer:
1.31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable $11.00
Cr To Deferred tax liability $1.50
2.$37.50 million
Explanation:
1. Preparation of the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.
Depreciation as per books for 2021 = $30 - $28 Depreciation as per books for 2021= $2 million
Depreciation as per tax for 2021 = $20 - $12
Depreciation as per tax for 2021 = $8 million
Taxable income = $50 + $2 - $8
Taxable income = $44 million
JOURNAL ENTRIES - Ameen Company (In million)
31-Dec-21
Dr Income tax expense $12.50
Cr To Income taxes payable ($44*25%) $11.00
Cr To Deferred tax liability ($6*25%) $1.50
(To record income tax expense)
2. Calculation to determine What is Ameenâs 2021 net income?
Ameen's 2021 net income = $50 - $12.50
Ameen's 2021 net income = $37.50 million
Therefore Ameen's 2021 net income is $37.50 million
The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
What do you mean by Pre-tax accounting income?Pre-tax revenue is the company's income left over after all operating costs, including interest and depreciation, have been deducted from sales or income, but before deducted income tax.
Pre-tax profits provide insight into the financial performance of a company prior to tax impact.
Calculation of taxable income for 2021:
a)
[tex]\rm\,Taxable \,Income = \\Pre-Tax \; Accounting \; Income + (Excess \;of Book Depreciation \;over \; tax \; depreciation)\\\\\rm\,Taxable \,Income = 50 + (2 - 8)\\\\\rm\,Taxable \,Income = \$44 \;Million\\\\Income\,tax\, Payable = 44 \times 25\%\\\\Income\,tax\, Payable = \$11 Million[/tex]
Journal entry to record Ameena's 2021 income taxes is attached below.
b) Ameena's net income will be :
[tex]\rm\,Ameen's \; 2021 \;net \; income = \$50 - \$12.50\\\Ameen's \; 2021 \;net \; income = $37.50 \rm\,million[/tex]
Hence, The pre-tax accounting income is $44 million and the income tax payable amount is $11 million.
To learn more about pre-tax accounting income, refer:
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Consider a coupon bond with a 5% coupon rate. It will mature in one year and its yield to maturity is 10%. If the 1-year interest rate increases to 12% over the course of the year, what is the return on the bond?
Answer:
$95.45
Explanation:
First, we need to calculate the price of the bond using both yields to maturity
Current Price
Use the following formula to calculate the price of the bond
P = ( C x PVAF ) + ( F x PVF )
Where
F =Face value = $1,000
C =Coupon Payment = $1,000 x 5% = $50
PVAF = ( 1 - ( 1 + 10% )^-1 ) / 10% = 0.90909091
PVF = 1 / ( 1 + 10% )^1 = 0.90909091
Placing values in the formula
P = ( $50 x 0.90909091 ) + ( $1,000 x 0.90909091 )
P = $954.55
After 1 Year
The Bond will be matured on this time
At the of Maturity the price of the bond will be equal to the face value
Price of the bond = $1,000
Now calculate the return on the bond
Return on the bond = Coupon Interest + Price appreciation
Where
Coupon Interest = $50
Price appreciation = $1,000 - $954.55 = $45.45
Placing values in the formula
Return on the bond = $50 + $45.45 = $95.45
Many exchange-traded funds limit their portfolios to:___________
a. high quality securities
b. stocks and bonds of companies in a particular industry
c. stocks included in an aggregate measure of stock prices
d. stocks that respond to changes in consumer prices (the Consumer Price Index or CPI)
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Alpha Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200. What is the company's net operating income
Answer: $86700
Explanation:
The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.
Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses for the year follow. The capital of the owner was $185,200 at April 1, the beginning of the current year. Mr. Thompson invested an additional $15,200 in the business during the year.
Accounts payable $1,200 Miscellaneous expense $470
Accounts receivable 9,860 Office expense 690
Cash 32,300 Supplies 1,670
Fees earned 82,110 Wages expense 34,330
Land 47,500 Drawing 5,400
Building 151,490
Required:
Prepare a statement of owner's equity for Thompson Computer Services for the current year ended March 31.
Answer:
Thompson Computer Services
Thompson Computer Services
Statement of Owner's Equity for the current year ended March 31
Capital, Thompson $185,200
Additional investment 15,200
Total Capital, Thompson $200,400
Net income 46,620
Drawing 5,400
Retained earnings $41,220
Owner's Equity $241,620
Explanation:
a) Data and Calculations:
Beginning balance:
Capital, Thompson $185,200
Additional investment 15,200
Total Capital, Thompson $200,400
Cash 32,300
Accounts receivable 9,860
Supplies 1,670
Land 47,500
Building 151,490
Accounts payable $1,200
Capital, Thompson 200,400
Drawing 5,400
Fees earned 82,110
Wages expense 34,330
Miscellaneous expense 470
Office expense 690
Fees earned $82,110
Wages expense 34,330
Miscellaneous expense 470
Office expense 690
Total expenses $35,490
Net income $46,620
Drawing 5,400
Retained earnings $41,220
Department G had 2,280 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $29,400 Costs added during period: Direct materials (12,820 units at $9) 115,380 Direct labor 77,400 Factory overhead 25,800 All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to whole dollars and round your final answer to the nearest dollar)?
Answer:
Department G
The total cost of the units started and completed during the period is:
= $184,717.
Explanation:
a) Data and Calculations:
FIFO Inventory costing method is used
Units Materials Conversion
Beginning inventory 2,280 100% 25%
Cost of beginning inventory = $29,400
Units started 12,820
Total units available 15,100
Units completed 13,200
Ending inventory 1,900 100% 20%
Started and completed 10,920 (13,200 - 2,280)
Equivalent units of production
Units Materials Conversion
Units in Beginning inventory 2,280 0 (0%) 1,710 (75%)
Units started and completed 10,920 10,920 (100%) 10,920 (100%)
Ending inventory 1,900 1,900 (100%) 380 (20%)
Equivalent units 12,820 13,010
Costs added during the period $115,380 $103,200
Equivalent units 12,820 13,010
Cost per equivalent unit $9.00 $7.93
Costs assigned to:
Beginning inventory $0 $13,603 $13,603
Cost of units started and completed 98,280 86,437 184,717
Ending inventory 17,100 3,013 20,113
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $30
Direct labor 18
Fixed factory overhead 22
Variable factory overhead 14
Required:
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answer and Explanation:
The computation of the cost of the finished goods inventory reported is as follows:
Absorption costing is
= ($30 + $18 + $22 + $14) × 21,500 units
= $1,806,000
And,
Variable costing is
= ($30 + $18 + 14) × 21,500
= $1,333,000
In this way the cost of the finished goods inventory should be determined
Using the high-low method, the fixed cost is calculated ______. Multiple select question. by adding the total cost to the variable cost using either the high or low level of activity before the variable cost is calculated after the variable cost per unit is calculated
Answer:
is calculated after the variable cost per unit is calculated
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities, etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses, etc.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Using the high-low method, the fixed cost is calculated : After the variable cost per unit is calculated.
What is costing?Costing refers to the measurement of the cost of production of goods and services whereby, the fixed costs and variable costs associated with production are examined.
Fixed costs are costs that do not vary with the level of output, while variable cost are cost that varies with the activity level.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Hence, using the high-low method, the fixed cost is calculated after the variable cost per unit is calculated.
Learn more about costing here : https://brainly.com/question/24516871
Long-term disability insurance _____. a. pays for temporary living expenses and moving expenses incurred by disabled employees b. pays a flat fee for a fixed number of hours of legal assistance each month for disabled employees c. provides continuing income protection for employees who become disabled and are unable to work
Answer: c. provides continuing income protection for employees who become disabled and are unable to work
Explanation:
Disability insurance is very helpful to people who get injured on the job and so are unable to work. The insurance would provide them with an income for a time so that they do not become destitute.
There are different types of disability insurance with varying lengths and long-term disability insurance is one of them. This one provides income protection for a longer time period and is very useful when the injury in question is quite serious or permanently disables the affected person.
