Answer:
The legal consideration that Suzanne is not in accordance or compliance with is the clothing labeling laws.
The clothing labeling laws include the following:
The Textile Fiber Products Identification Act, 1960
The Wool Products Labeling Act, 1939
The Fur Products Labeling Act, 1952
The above clothing labeling laws were passed by Congress to inform and protect consumers, and they require that dresses have labeling tags.
Explanation:
The above-mentioned clothing labeling laws are enforced by the U.S. Federal Trade Commission (FTC). Penalties are imposed by the FTC on any business that does not comply with the clothing labeling regulations.
State and EXPLAIN three methods of paying workers
Answer:
three methods employers use to pay the employees are salary, commission, and hourly wage.
Explanation:
salary is a fixed amount that you get for working per month
commmission is getting a percentage of the total that you sell
hourly wage is getting paid for each hour that you work
hope this helps! i would appriciate brainliest too!!
Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. Which type of interference was most likely the basis for this suit?
Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic.
1. Is the clause in this case commonly known as a non-compete clause?
2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?
A.There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
B. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
C. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
3. Medtronic is suing for wrongful interference with a _______.
4. Who are the parties to the initial contract?
5. _____is the third party who knew about the contract.
6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from _____.
7. It is _____ that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude ______before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause?
10. Was the noncompete clause enforceable?
11. Did it matter if the clause was unenforceable?
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
13. Is Hughes liable for intentional interference with a contract?
14. Why?
15. Hughes is _______ to be held liable for breach of contract.
16. What if the effects were different?
17. _____ would be another factor the courts would consider.
Answer:
1. Is the clause in this case commonly known as a non-compete clause?
Yes, this is a non-compete clause. Hughes's contract prohibited him from working for a competitor for one year after leaving Medtronic, and St. Jude is a competitor with Medtronic.
2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?
All the options given (A, B and C) are the same.
The three elements are for determining wrongful interference are:
A valid, enforceable contract must exist between two parties. A third party must know that this contract exists. The third party must intentionally induce a party to breach the contract.3. Medtronic is suing for wrongful interference with a AN EMPLOYEE.
4. Who are the parties to the initial contract?
Medtronic and Hughes.
5. ST. JUDE is the third party who knew about the contract.
6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from HUGHES.
7. It is TRUE that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude OFFERED HUGHES A BEW JOB WITH A BETTER SALARY before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause?
That it was unenforceable
10. Was the noncompete clause enforceable?
Yes11. Did it matter if the clause was unenforceable?
No
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
Yes, that is why we call it wrongful interference.
13. Is Hughes liable for intentional interference with a contract?
No
14. Why?
because he was a party in the original contract.
15. Hughes is NOT to be held liable for breach of contract.
16. What if the effects were different?
If Hughes had been informed that the noncompete clause was valid, then it wouldn't be wrongful interference.
17. If HUGHES HAD QUITTED MEDTRONIC BEFORE GOING TO SEEK ANOTHER JOB TO ST. JUDE IT it would be another factor the courts would consider.
_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.
Exports
Tariffs
Tangibles
Countertrades
Imports
Which of the following statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region is false
Question Completion:
O Tiny cross-company differences on a highly influential competitive factor (like selling prices, or S/Q ratings or models/styles) nearly always have a bigger impact on company sales/market shares in a region than do large company-to-company differences on less influential competitive factors.
O While it is true that some competitive factors affect the brand choices of buyers more than others, what matters most in determining sales and market shares is competitive effort and the regional average on each competitive factor
O How much differences in the number of models/styles that companies have in their product lines matter in determining each company's unit sales/market share in a region is not a fixed amount but rather is an amount that varies from *big (when model/style differences are also "big") to "small
O In the rare instance that all companies in a region should happen to offer buyers the very same number of differences are "small") to "zero" (when the models/styles offered by rivals are identical). models/styles, then models/styles become a total competitive non-factor and have zero impact on buyer appeal for one brand versus another-in such cases, 100% of the regional sales and market share differences among company rivals stem directly from differences on the other 12 competitive factors.
O Big company-to-company differences in the number of models/styles offered to buyers in a region weigh heavily in accounting for company-to-company differences in branded pairs sold and market share in all four geographic regions.
Answer:
The statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region which is false is:
O Tiny cross-company differences on a highly influential competitive factor (like selling prices, or S/Q ratings or models/styles) nearly always have a bigger impact on company sales/market shares in a region than do large company-to-company differences on less influential competitive factors.
Explanation:
This implies that the following factors drive company sales volumes and market shares in a particular geographic region: competitive effort, differences in the number of models/styles that companies have in their product lines, big company-to-company differences in the number of models/styles offered to buyers in a region, among the other 12 competitive factors.
In recent years, large financial institutions such as mutual funds and pension funds have become the dominant owners of stock in the United States, and these institutions are becoming more active in corporate affairs. What are the implications of this trend for agency problems and corporate control?
Answer:
Agency problems arise when managers (agents) of a company seek their own best interests instead of that of the stockholders (principal).
With Pension funds owning a significant amount of stock in companies now, they will potentially reduce agency problems because they have experience in the are of limiting agency problems and by owning a lot of shares they will have the power to influence the company to make policies that will limit these problems as well.
This is where Corporate control comes in. With such large control, Pension funds can dictate some processes in the company and they will most likely do so in a manner that will ensure that the shareholders (like themselves) will benefit as should be the case.
The bookkeeper for Sheffield Corp. asks you to prepare the following accrued adjusting entries at December 31.
1. Interest on notes payable of $500 is accrued.
2. Services performed but not recorded total $2,000.
3. Salaries earned by employees of $540 have not been recorded. Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
Explanation:
Preparation of the accrued adjusting entries at December 31
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
During its first year in business, Comfy Home accounted for its inventory using the last in first out (LIFO) method. In the second year of business, Tenisa asks the accountant if the company can switch to first in first out (FIFO) because she recently learned FIFO will tend to increase both the value of assets and net income. The accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason. This is an example of the principle of:________
a. Conservatism.
b. Relevance.
c. Consistency.
d. Reliability.
Answer:
Consistency principle
Explanation:
Accounting principles are defined as the general rules of.axcpunting that businesses are expected to follow when reporting financial information.
Accounting principles include:
- Accrual principle
- Conservatism principle
- Consistency principle
- Cost principle
- Economic entity principle
- Full disclosure principle
- Going concern principle
- Matching principle
- Materiality principle
- Monetary unit principle
- Reliability principle
- Revenue recognition principle
- Time period principle
Consistency principle requires one the continue using an accounting method consistently for future accounting periods so that information can be easily comparable.
In the given scenario the accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason.
This is an example of consistency principle
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash 9,000
Aug. 10 Cash 1,400
Service Revenue 1,400
Aug. 12 Equipment 5,600
Cash 1,540
Notes Payable 4,060
Aug. 25 Accounts Receivable 2,570
Service Revenue 2,570
Aug. 31 Cash 750
Accounts Receivable 750
Required:
Post the transactions to T-accounts.
(Post in same order as question)
Answer:
Metlock, Inc.
T-accounts:
Common Stock
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Aug. 10 Service Revenue 1,400
Aug. 12 Equipment 1,540
Aug. 31 Accounts receivable 750
Service Revenue
Date Account Titles Debit Credit
Aug. 10 Cash 1,400
Aug. 25 Accounts receivable 2,570
Equipment
Date Account Titles Debit Credit
Aug. 12 Cash 1,540
Notes Payable 4,060
Accounts Receivable
Date Account Titles Debit Credit
Aug. 25 Service Revenue 2,570
Aug. 31 Cash 750
Explanation:
Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.
A company's bank statement shows a cash balance of $4,210. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $2,100, NSF check of $230, interest earned of $36, service fee of $46, and a check for $180 recorded twice by the company. Calculate the correct balance of cash?
Answer:
Explanation:
Based on the information that have been provided in the question above, the correct balance of cash will be calculated as the difference between the bank balance that was shown in the bank statement and the checks that was outstanding. This will be:
= $4210 - $2100
= $2110
Therefore, the correct balance of cash will be $2110.
You are a supplier of printed circuit boards (PCBs). Production of the circuit boards consists of several steps – Surface Mounting, Baking, and Final Assembly. Surface Mounting puts integrated circuits (ICs) and other components on a PCB. These PCBs are then Baked as a batch and kept in an oven for some time so that the ICs are soldered onto the PCBs. Finally, these PCBs are taken and manually assembled into a case, and wired with connectors. The processing rate at the Surface Mounting station is 15 PCBs/minute, the processing rate for Baking is 5 PCBs/minute, and the processing rate for Final Assembly is 3 PCBs/minute. If there are on average 24 units of (work in process) inventory and the system is working at capacity, what is the flow (throughput) time for PCBs?
Answer:
the flow (throughput) time for PCBs is 40 units per minute
Explanation:
Given that;
Work in progress WIP = 24
we calculate the time spent to make the PCBs, lead time
Processing rate at the Surface Mounting station is 15 PCBs/minute
so time taken by a single PCB at the SM operation = 1/15 min
Processing rate for Baking is 5 PCBs/minute
so time taken by a single PCB at the baking operation = 1/5 min
the processing rate for Final Assembly is 3 PCBs/minute
so time taken by a single PCB at the assembly = 1/3 min
∴ total time taken will be;
(1/15) + (1/5) + (1/3)
= 0.6 min
Now, using Little's Law;
Working in progress WIP = throughput × lead time
Throughput = WIP / Lead time
so we substitute
Throughput = 24 / 0.6 min
Throughput = 40 units per minute
Therefore the flow (throughput) time for PCBs is 40 units per minute
Suppose that Texas Trucking (TT) has earnings per share of $3.45 and EBITDA of $45 million. TT also has 5 million shares outstanding and debt o $150 million (net of cash). You believe that Oklahoma Logistics and Transport (OLT) is comparable to TT in terms of its underlying business, but OLT has no debt. OLT has a P/E of 12.5 and an enterprise value to EBITDA multiple of 7. Based upon the enterprise value to EBITDA ratio, the value of a share of Texas Trucking is closest to:
Answer:
$33.00 per share
Explanation:
Calculation to the value of a share of Texas Trucking
Using this formula
Enterprise value = EBITDA × multiple
Let plug in the formula
Enterprise value = $45 × 7 = $315
Enterprise value=$315- $150
Enterprise value=$165
Enterprise value=$165/5 million share
Enterprise value = $33.00 per share
Therefore the value of a share of Texas Trucking is closest to:$33.00 per share
An investment offers $5,200 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years
Answer:
the present value of an annuity is $55,088.87
Explanation:
The computation of the value today is given below:
Present value of annuity is
= Annuity × [1 - (1+interest rate)^-time period] ÷ rate
= $5,200 × [1 - (1.07)^-20] ÷ 0.07
= $5,200 × 10.59401425
= $55,088.87
hence, the present value of an annuity is $55,088.87
Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $57,750 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $5,775 per month for the remainder of her life. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year?
Answer:
$69,300
Explanation:
Calculation for her gross income from the annuity payments in the twenty-fourth year
Using this formula
Gross income Annuity payment =Annuity retirement benefits*Number of month in a year
Let plug in the formula
Gross income Annuity payment =$5,775× 12 payments
Gross income Annuity payment = $69,300
Therefore her gross income from the annuity payments in the twenty-fourth will be $69,300
Analyze each of the characteristics in considering the indicated test for depen- dency as a qualifying child or qualifying relative. In the last two columns, after each listed test (e.g., gross income), state whether the particular test is Met, Not Met, or Not Applicable (NA).
Characteristic Qualifying Child Test Qualifying Relative Test
a. Taxpayer's son has gross income of $7,000 Gross income Gross income
b. Taxpayer's niece has gross income of $3,000 Gross income Gross income
c. Taxpayer's uncle lives with him Relationship Relationship
d. Taxpayer's daughter is 25 and disabled Age Age
e. Taxpayer's daughter is age 18, has gross income Residence, Gross Gross income
of $8,000, and does not live with him income
f. Taxpayer's cousin does not live with her Relationship, Relationship Residence g. Taxpayer's brother does not live with her Residence Relationship
h. Taxpayer's sister has dropped out of school, is age 17 Relationship, Relationship
and lives with him Residence, Age
i. Taxpayer's older nephew is age 23 and a full-time student Relationship, Age Relationship
j. Taxpayer's grandson lives with her and has gross income Relationship, Relationship,
of $7,000 Residence Gross income
Answer:
Test for dependency as a qualifying child or qualifying relative:
Qualifying Child Test Qualifying Relative Test
a. Gross income (N/A) Gross income (Not Met)
b. Gross income (N/A) Gross income (Met)
c. Relationship (Not Met) Relationship (Met)
d. Age (Met) Age (N/A)
e. Residence (Not Met) Gross Income (N/A) Gross income (Not Met)
f. Relationship (Not Met), Relationship (Not Met) Residence (Not Met)
g. Residence (Not Met) Relationship (Not Met)
h. Relationship (Met) Relationship (Met)
Residence (Met) Age (Met)
i. Relationship (Met), Age (Met) Relationship (Met)
j. Relationship (Met) Relationship (Met)
Residence (Met) Gross income (Not Met)
Explanation:
Before a child can qualify as a dependent child, the child must meet six qualifying IRS tests for relationship, age, residency, support, joint return, and citizenship. A qualifying child cannot file jointly with the taxpayer unless to claim a refund. To qualify as a dependent relative, the relative is expected to be resident in the taxpayer's household throughout the year or be related to the taxpayer in some ways.
Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:
Answer:
$4,281.19
Explanation:
The standard notation equation is P = F(P/F, i, n) where the value of the factor is seen in the compound interest factor table.
Let the amount deposited in year 4 be A, we calculate the value of A as follows
10,000 = 2A(P/F, 10%, 2) + A(P/F, 10%, 4)
10,000 = 2A(0.8263) + A(0.683)
2.3358A = 10,000
A = 10,000 / 2.3358
A = 4281.188457915917
A = $4,281.19.
The income statement for the Timberline Golf Club Inc. for the month ended July 31 shows Service Revenue $18,530; Salaries and Wages Expense $9,100; Maintenance and Repairs Expense $4,190; and Income Tax Expense $1,110. The statement of retained earnings shows an opening balance for Retained Earnings of $20,590 and Dividends $1,830.Prepare closing journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The closing journal entries are as follows:
1. Service revenue Dr $18,530
To Income summary $18,530
(being revenue account is closed)
2. Income summary Dr $14,400
To Salaries and Wages Expense $9,100
To Maintenance and Repairs Expense $4,190
To Income Tax Expense $1,110
(being expenses account is closed)
3. Income summary Dr $4,130 ($18,530 - $14,400)
To retained earnings $4,130
(Being closing of the net income is recorded)
4. Retained earnings Dr $1,830
To Dividend $1,830
(being dividend account is closed)
Deborah would like to invest a certain amount of money for two years and considers investing in a one-year bond that pays 4% and a two-year bond that pays 7%. Deborah is considering the following investment strategies:
Strategy A: Buy a one-year bond that pays 4% and in one year buy another one-year bond.
Strategy B: Buy a two-year bond that pays 7% this year and 7% next year.
If the one-year bond that Dina can purchase in one year pays 9%, Deborah will choose:_______
Answer:
If the one-year bond that Dina/Deborah can purchase in one year pays 9%, Deborah will choose:_______
Strategy B.
Explanation:
a) Data:
Interest on one-year bond = 4%
Interest on a two-year bond = 7%
Investment strategies:
Strategy A: Buy a one-year bond that pays 4% and in one year buy another one-year bond.
Strategy B: Buy a two-year bond that pays 7% this year and 7% next year.
b) Although choosing a fixed income investment is a conservative strategy because returns are generated from low-risk securities that pay predictable interest, this strategy may be preferred by Deborah instead of another that pays at variable interest rates. The variable-interest bond will need to pay higher varying interest rates to be attractive to Deborah. Paying 4% in year one and another 9% in year two will not make the bond investment more attractive than a straight two-year bond that pays at 7% per year.
One employee is in charge of the following activities at a refreshment stand: Activity Activity Time per Customer Greet customer 5 seconds Take order 25 seconds Process order 1.5 minutes Print receipt 30 seconds If the demand rate is 20 customers per hour, what are the flow rate (in customers per hour), utilization, and cycle time (in minutes per customer)
Answer:
A. Flow rate = 20 customers per hour
B. Utilization =0.83
C. Cycle time= 3 minutes per customer
Explanation:
A. Calculation for the flow rate
First step is to calculate the Processing time
Processing time = 5 + 25 + (1.5 ×60) + 30
Processing time=30+90+30
Processing time= 150 seconds
Second step is to calculate the Process capacity
Process capacity = 1/150 ×60 per seconds/minute ×60 per minutes/hour
Process capacity= 24 customers per hour
Now let calculate the Flow rate
Using this formula
Flow rate= Min(Demand, Process capacity)
Let plug in the formula
Flow rate= Min(20, 24)
Flow rate = 20 customers per hour
Therefore the flow rate will be 20 customers per hour
B. Calculation for the utilization
Using this formula
Utilization = Flow rate/Process capacity
Let plug in the formula
Utilization = 20/24
Utilization =0.83
Therefore Utilization will be 0.83
C. Calculation for the Cycle time
Using this formula
Cycle time = 1/Flow rate ×60 per minutes/hour
Let plug in the formula
Cycle time= 1/20 ×60 per minutes/hour
Cycle time= 3 minutes per customer
Therefore the Cycle time will be 3 minutes per customer
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 90 carts per hour. Workers receive $15 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 5 carts per hour.
Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)
1. Labor productivity is increased or decreased by what %?
2. Multifactor productivity is increased or decreased by what %?
Answer: Hope this help. Please mark me brainliest :)
Explanation:
a.
Before: 90 ÷ 6 = 15.00 carts per worker per hour.
After: 96 ÷ 5 = 19.20 carts per worker per hour.
b.
Before: $14 x 6 = $84 + $40 = $124; hence 90 ÷ $124 = 0.73 carts/dollar cost.
After: $14 x 5 = $70 + $51 = $121; hence 96 ÷ $121 = 0.79 carts/dollar cost.
c.
Labor productivity increased by 28.00% (4.20/15.00).
Multifactor productivity increased by 8.22% (0.06/0.73).
On January 1, 2021, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due at the end of each month with the first installment due on January 31, 2021.
Required:
Record the issuance of the installment note payable and the first two monthly payments.
Answer:
1. January 01, 2021
Dr Cash39,000.00
Cr Notes Payable39,000.00
2. January 31, 2021
Dr Interest Expense 195.00
Dr Notes Payable720.92
Cr Cash915.92
3. February 28, 2021
Dr Interest Expense 191.40
Dr Notes Payable 724.52
Cr Cash915.92
Explanation:
Preparation of the journal entry to Record the issuance of the installment note payable and the first two monthly payments
1. January 01, 2021
Dr Cash 39,000.00
Cr Notes Payable 39,000.00
2. January 31, 2021
Dr Interest Expense 195.00
($39,000 × 6% × 1/12)
Dr Notes Payable 720.92
(915.92-195.00)
Cr Cash 915.92
3. February 28, 2021
Dr Interest Expense 191.40
([$39,000 − $720.92] × 6% × 1/12)
Dr Notes Payable 724.52
(915.92-191.40)
Cr Cash 915.92
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:
Finished Goods $8,300
Work in Process-Spinning Department 2,000
Work in Process-Tufting Department 2,600
Materials 4,800
Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:
Jan.
1 Materials purchased on account, $82,000
2 Materials requisitioned for use:
Fiber-Spinning Department, $42,600
Carpet backing-Tufting Department, $34,700
Indirect materials-Spinning Department, $3,300
Indirect materials-Tufting Department, $2,900
31 Labor used:
Direct labor-Spinning Department, $26,300
Direct labor-Tufting Department, $17,200
Indirect labor-Spinning Department, $12,500
Indirect labor-Tufting Department, $11,900
31 Depreciation charged on fixed assets:
Spinning Department, $5,300
Tufting Department, $3,100
31 Expired prepaid factory insurance:
Spinning Department, $1,000
Tufting Department, $800
31 Applied factory overhead:
Spinning Department, $22,400
Tufting Department, $18,250
31 Production costs transferred from Spinning Department to Tufting Department, $90,000
31 Production costs transferred from Tufting Department to Finished Goods, $153,200
31 Cost of goods sold during the period, $158,000
Required:
a. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations.
b. Compute the January 31 balances of the inventory accounts.
c. Compute the January 31 balances of the factory overhead accounts.
Answer:
Port Ormond Carpet Company
1. Journal Entries:
Jan. 1:
Debit Materials $82,000
Credit Accounts payable $82,000
To record the purchase of materials on account.
Jan. 2:
Debit Work-in-Process - Spinning $42,600
Credit Materials $42,600
To record the materials requisitioned.
Jan. 2:
Debit Work-in-Process -Tufting $34,700
Credit Materials $34,700
To record carpet backing
Jan. 2:
Debit Overhead - Spinning $3,300
Debit Overhead - Tufting $2,900
Credit Materials $6,200
To record indirect materials used.
Jan. 31:
Debit Work-in-Process - Spinning $26,300
Debit Work-in-Process - Tufting $17,200
Credit Factory labor $43,500
To record direct labor costs.
Jan. 31:
Debit Overhead - Spinning $12,500
Debit Overhead - Tufting $11,900
Credit Factory labor $24,400
To record indirect labor costs.
Jan. 31:
Debit Overhead - Spinning $5,300
Debit Overhead - Tufting $3,100
Credit Factory Depreciation $8,400
To record depreciation costs.
Jan. 31:
Debit Overhead - Spinning $1,000
Debit Overhead - Tufting $800
Credit Factory Insurance $1,800
To record insurance costs.
Jan. 31:
Debit Work-in-Process - Spinning $22,400
Debit Work-in-Process - Tufting $18,250
Credit Factory Overhead $40,650
To record overhead costs applied.
Jan. 31:
Debit Work-in-Process - Tufting $90,000
Credit Work-in-Process - Spinning $90,000
To record the transfer to Tufting department.
Debit Finished Goods Inventory $153,200
Credit Work-in-Process- Tufting $153,200
To record the transfer to Finished Goods.
Jan. 31:
Debit Cost of Goods Sold $158,000
Credit Finished Goods $158,000
To record the cost of goods sold.
2. January 31 balances of the inventory accounts:
Finished Goods = $3,500
Work-in-Process - Spinning = $3,300
Work-in-Process - Tufting = $9,550
Materials = $600
3. Factory Overhead Accounts- Spinning:
Account Titles Debit Credit
Jan. 31 Materials (Indirect) 3,300
Indirect labor 12,500
Depreciation exp. 5,300
Factory insurance 1,000
Applied overhead 22,400
Overapplied overhead 300
Factory Overhead Accounts- Tufting:
Account Titles Debit Credit
Materials (Indirect) $2,900
Indirect labor 11,900
Depreciation expenses 3,100
Insurance expense 800
Applied overhead -WIP-Tufting 18,250
Underapplied overhead 450
Explanation:
a) Data and Calculations:
January 1 Inventories:
Finished Goods = $3,500
Work in Process- Spinning = $2,000
Work in Process - Tufting = $2,600
Materials = $4,800
Finished Goods
Account Titles Debit Credit
Beginning balance $8,300
Work-in-Process-Tufting 153,200
Cost of Goods Sold $158,000
Ending balance 3,500
Work-in-Process - Spinning
Account Titles Debit Credit
Beginning balance $2,000
Materials 42,600
Direct labor 26,300
Applied overhead 22,400
Work-in-Process -Tufting $90,000
Ending balance 3,300
Work-in-Process - Tufting
Account Titles Debit Credit
Beginning balance $2,600
Carpet backing 34,700
Direct labor 17,200
Applied overhead 18,250
WIP- Spinning 90,000
Finished Goods $153,200
Ending balance 9,550
Cost of Goods Sold
Finished Goods $158,000
Materials
Account Titles Debit Credit
Beginning balance $4,800
Accounts payable 82,000
Work-in-Process - Spinning $42,600
Work-in-Process - Tufting 37,400
Manufacturing overhead- Spinning 3,300
Manufacturing overhead- Tufting 2,900
Ending balance 600
A production department's output for the most recent month consisted of 8,800 units completed and transferred to the next stage of production and 5,800 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Answer:
11,700 units
Explanation:
Calculation for the equivalent units of production for the month, assuming the company uses the weighted average method
Unit completed and transferred to the next stage 8,800 units
Add Unit in ending goods in process inventory 2,900 units
(5,800 units*50%)
Equivalent units of production 11,700 units
(8,800 units+2,900 units)
Therefore the equivalent units of production for the month, assuming the company uses the weighted average method will be 11,700 units
A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units, and $19 per unit for additional units.
A. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
B. Determine the range for which each alternative is best. Are there any alternatives that are never best? Which?
TC for 10,000 units TC for 20,000 units
Int. 1: $ Int. 1: $
Int. 2: $ Int. 2: $
Vend A $ Vend A $
Vend B $ Vend B $
Vend C $ Vend C $
Answer:
A. If the manager anticipates an annual volume of 10,000 units, the alternative that would be best from a cost standpoint is Vendor B.
Again, for annual volume of 20,000 units, Vendor B is the best choice.
B. For Process I, it is best within the range of 20,555 and 200,000
For Process 2, the best range is 200,000 and above
Vender A, there is no best range
Vender B, the best range is 1 to 20,555
Vender C, there is no best range
Explanation:
a) Data and Calculations:
Internal Process 1 = $17Q + $200,000
Internal Process 2 = $14Q + $240,000
Vendor A = $20Q up to 30,000 units
Vender B = $18Q
Vender C = $21*1,000 + $19(Q-1,000)
Calculation of total cost under each alternative:
Internal Vender A Vender B Vender C
Process 1 Process 2
Cost of production:
Variable cost per unit $17 $14 $20 $18 $19
For 10,000 Units:
Fixed costs $200,000 $240,000 0 0 $21,000
Variable cost 170,000 140,000 $200,000 $180,000 $171,000
Total cost $370,000 $380,000 $200,000 $180,000 $192,000
For 20,000 units:
Fixed costs $200,000 $240,000 0 0 $21,000
Variable cost 340,000 280,000 $400,000 $360,000 $361,000
Total cost $540,000 $520,000 $400,000 $360,000 $382,000
A taxi driver who opens the door for his customer is an example of ________. Fill in the blank.
Answer:
courtesy
Explanation:
It basically is having manners and being respectful of the customer. When a taxi driver opens the door for someone, he or she is being respectful
In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.
Select the correct answer in each blank space (_______)
a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the __________________( *Supply of and demand for, *Supply of, or *Demand for) smartphones increase(s), causing the equilibrium price to (*Rise, *Fall, or *Rise, fall or remain unchanged) and the equilibrium quantity to (*Rise, fall or remain unchanged, *Rise, *Fall)
b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the _____________ ( *Supply of and demand for, *Supply of, or *Demand for) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to __________ (*Rise, fall or remain unchanged, *Rise, *Fall) and the equilibrium quantity to __________ (*Rise, fall or remain unchanged, *Rise, *Fall)
Answer:
Supply of
fall
rise
b. demand for
rise
rise
Explanation:
A microchip is a complement in the production of smartphones
Complement goods are goods used together.
If the price of microchips reduces, the cost of making smartphones falls and as a result, the supply of smart phones increases. This would lead to a rightward shift of the supply curve. This leads to a decrease in equilibrium price and an increase in equilibrium quantity
Due to the awareness, the demand for ALS research would increase, this would lead to a rise in price and quantity demanded.
The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko, Emiko Co. uses a perpetual inventory system.
Credit Debit $ 30,000 5,600 33,000 $529,000 Merchandise inventory Prepaid selling expenses Dividends Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense Selling expenses Administrative expenses 17,500 5,000 212,000 48,000 15,000 36,000 105,000
Additional Information
Accrued and unpaid sales salaries amount to $1700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $28.700 of goods still available.
(a) Use the above account balances along with the additional information, prepare the adjusting entries.
(b) Use the above account balances along with the additional information, prepare the closing entries.
Answer:
a) Dr Sales salaries expense $1,700
Cr Sales salaries payable $1,700
Dr Selling expense $3,000
Cr Prepaid selling expense $3,000
Dr Cost of goods sold $1,300
Cr Inventory $1,300
b) 1. Dr Sales revenue $529,000
Cr Income summary $529,000
2. Dr Income summary $444,500
Cr Cost of goods sold $213,300
Cr Sales return and allowance $17,500
Cr Sales discount $5,000
Cr Sales salaries expense $49,700
Cr Utilities expense $15,000
Cr Selling expense $39,000
Cr Administrative expense $105,000
3.Dr Income summary $84,500
Cr Retained earnings $84500
4. Dr Retained earnings $33,000
Cr Dividend $33,000
Explanation:
a) Preparation of the adjusting entries.
Dr Sales salaries expense $1,700
Cr Sales salaries payable $1,700
Dr Selling expense $3,000
Cr Prepaid selling expense $3,000
Dr Cost of goods sold $1,300
($30,000-$28,700)
Cr Inventory $1,300
b) Preparation of the closing entries.
1. Dr Sales revenue $529,000
Cr Income summary $529,000
2. Dr Income summary $444,500
($213,300+$17,500+$5,000+$49,700+$15,000+$39,000+$105,000)
Cr Cost of goods sold $213,300
($212,000+$1,300)
Cr Sales return and allowance $17,500
Cr Sales discount $5,000
Cr Sales salaries expense $49,700
($48,000+$1,700)
Cr Utilities expense $15,000
Cr Selling expense $39,000
($36,000+$3,000)
Cr Administrative expense $105,000
3. Dr Income summary $84,500
($529,000-$444,500)
Cr Retained earnings $84500
4. Dr Retained earnings $33,000
Cr Dividend $33,000
Why is the infrastructure used for marketing sales in the past becoming useless for today’s needs?
I’ll give brainlest to the best answer!!
Answer:
The infrastructure used for marketing sales in the past becoming useless for today’s needs is described below in detail.
Explanation:
Public activities are the design of modern life. Whether community or agricultural, the roads that convey our goods, the gutters that preserve our health and wealth, the cables that provide our electricity, and the vessels that transport our water enable society to operate. Every amenity our neighborhoods take for the award is built on preparation, architecture, building, and managing these assets.
Throughout history, people have prospered through improvements in government works.
Globe Services plans on closing its doors after one more year. During its last year in business, the firm expects to generate a cash flow of $67,000 if the economy booms and $44,000 if it does not. The probability of a boom is 30 percent. The firm has debt of $53,400 that is due in one year. That debt has a market value of $45,800 today. Ignore taxes. The current promised return on debt is __________ percent, and the expected return on debt is __________ percent.
Answer and Explanation:
The computation is shown below:
Current promised return on debt is
= $53,400 ÷ $45,800 - 1
= 16.60%
And, the expected return on debt is
The expected amount would be
= $53,400 × 30% + $44,000 × 70%
= $16,020 + $30,800
= $46,820
Now the expected return on debt is
= $46,820 ÷ $45,800 - 1
= 2.23%
O. Tybalt invested $5,500 cash in the business in exchange for common stock during year 2019. The December 31, 2018, credit balance of the Retained Earnings account was $121,900. Required: 1a. Prepare the income statement for the calendar-year 2019. 1b. Prepare the statement of retained earnings for the calendar-year 2019. 1c. Prepare the classified balance sheet at December 31, 2019. 2. Prepare the necessary closing entries at December 31, 2019.
Answer:
Yogurt
Explanation:
Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
2014 2013 Increase/decrease
Accounts payable $ 4,000 $ 6,000 $(2,000)
Accrued liabilities 2,000 1,000 1,000
Long-term notes payable 84,000 90,000 (6,000)
Total liabilities $90,000 $97,000 $(7,000)
Additional information provided:
During 2014, the company repaid $40,000 of long-term notes payable.
During 2014, the company borrowed $34,000 on a new note payable.
Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?
A) $6,000 negative
B) $6,000 positive
C) $5,000 positive
D) $7,000 negative
Answer:
D) $7,000 negative
Explanation:
What amount of net cash flow would be shown in the financing section of the statement of cash flows?
Amount of net cash flow to be shown in the financing section of the statement of cash flows = Decrease in Account payable - Increase in accrued liabilities + Borrow of new long term notes payable - Repayment of long term notes payable
= -$2,000 + $1,000 + $34,000 - $40,000
= -$7,000