Answer: 1.21
Explanation:
Acid test ratio is also referred to as the quick ratio and it is calculated as:
Acid-Test Ratio = Quick Assets / Current Liabilities
where,
Quick assets = $15090
Current liabilities = $12520
Acid test ratio = $15090 / $12520
= 1.2052
= 1.21
Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Required:
Foxy Investigative Services
End-of-Period Spreadsheet
For the Year Ended November 30, 2018
~ Adjusted Trial Balance
Account Title ~ Dr. Cr.
~
Cash ~ 27,500
Accounts Receivable ~ 71,800
Supplies ~ 3,550
Prepaid Insurance ~ 750
Building ~ 330,500
Accumulated Depreciation-Building ~ 184,100
Accounts Payable ~ 16,100
Salaries Payable ~ 6,600
Unearned Rent ~ 1,500
Common Stock ~ 40,000
Retained Earnings ~ 70,300
Dividends ~ 30,000
Service Fees ~ 675,500
Rent Revenue ~ 9,000
Salaries Expense ~ 435,000
Rent Expense ~ 55,000
Supplies Expense ~ 11,850
Depreciation Expense-Building ~ 10,000
Utilities Expense ~ 8,800
Repairs Expense ~ 4,250
Insurance Expense ~ 3,000
Miscellaneous Expense ~ 11,100
~ 1,003,100 1,003,100
1.
A. Prepare an income statement for the year ended November 30, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles.
B. Prepare a retained earnings statement for the year ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
Answer:
Statement of Retained Earnings:
Operating Balance $70,300
Add: Net Income $145,000
Less: Dividends $30,000
Ending Balance $185,300
Explanation:
Income Statement for Foxy Investigative Services
Service Fees $675,000
Rent Revenue $9,000
Less: Operating expenses:
Salaries Expense $435,000
Rent Expense $55,000
Supplies Expense $11,850
Utilities Expense $8.800
Depreciation Expense $10,000
Repairs Expense $4,250
Insurance Expense $3,000
Miscellaneous Expense $11,100
Net Income : $145,000
Although New York State is second only to Washington State in production of​ apples, its production has been declining during the past 20 years. The decline has been particularly steep in counties close to New York City. In​ 1985, there were more than​ 11,000 acres of apple orchards in Ulster​ County, which is 75 miles north of New York City.​ Today, only about​ 6,000 acres remain. As it became difficult for apple growers in the county to compete with​ lower-cost producers​ elsewhere, the resources these entrepreneurs were using to produce applesparticularly landbecame more valuable in other uses. Many farmers sold their land to housing developers. Suppose a revolutionary new diet is developed that involves eating 10 apples per​ day, and the new diet becomes wildly popular. ​Source: Lisa W.​ Foderaro, "Plenty of​ Apples, but a Possible Shortage of Immigrant​ Pickers," New York Times​, August​ 21, 2007. Because of the popularity of the​ diet, the number of apple orchards within 100 miles of New York City will likely increase decrease .
What effect is the new diet likely to have on the number of apple orchards within 100 miles of New York City? What effect is the diet likely to have on housing prices in New York City?
Answer:
1. Increase in number of orchards
2. Increase in housing prices
Explanation:
1. What effect is the new diet likely to have on the number of apple orchards within 100 miles of New York City?
There is going to be increased demand for apples due to this new diet and this increase in demand is going to bring about a hike in the price for apples. This price increase would make business to be viable for these apple farmers. More people would want to own orchards just to make money out of the boom in apples. Because apple farming now seems to be more profitable than other activities. So this would cause the number of apple orchards that are within 100 miles of new york city to increase.
2. What effect is the diet likely to have on housing prices in New York City?
There would be an increase in housing prices in New york city as farmers would rather be planting apples on these lands instead of sellng them to developers for building houses. There would be a decrease in the supply of housing in New york.State Farm insurance company prints an ad in a national newspaper’s apartment rental section with a picture of a girl sitting on the edge of a tub full of water, blowdrying her hair while a plugged in toaster sits on the edge. The caption at the top of the ad reads, “Renting without State Farm is like...” Which need does this marketing ad emphasize for potential customers?
a. safety and security
b. physiological needs
c. esteem
Answer:
Safety and Security
Explanation:
Blow drying your hair over the tub isn't safe
The marketing ad emphasizes potential customers' need of safety and security.
An insurance company is a company that is responsible for selling insurance that protects our objects and even our lives in case they are affected.
For example, if I buy insurance for my car and someone steals it, the insurance company gives me a percentage of the value of the car so that my loss is not total.
In the case presenting the company, it presents an image of "risk" so that buyers understand the idea of danger and the need for safety and protection to have insurance that covers those possible accidents that occur.
So the correct answer is A. safety and security
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Typical of price ceilings, the ancient Indian political philosopher known as Kautilya advocated controls to protect against merchant greed, fixing a profit of 5% over the fixed price of local commodities, including textiles. If severe weather were to render the textile market more uncertain (e.g., if transportation routes were damaged), what would reasonably happen
Answer:
Fewer merchants would be willing to supply textiles.
Explanation:
Price ceilings are the maximum price that is set for commodities in a particular market by the government. It is aimed at protecting buyers from excessive price exploitation by sellers.
In the given scenario the price of commodities was set at 5% above fixed price of local communities. This means sellers can make a maximum of 5% on any sale.
However severe weather rendered the textile market more uncertain.
The result will be that sellers will be less willing to provide commodities as they are not able to push the added cost to the buyer.
1. In a manufacturing firm, product costs include: ______
a. all GAAP costs
b. all variable costs
c. all manufacturing costs
d. all fixed costs all non-manufacturing costs
2. Period costs include:
a. all fixed costs
b. all non-manufacturing costs
c. all variable costs
d. all non-GAAP costs
e. all manufacturing costs
Answer and Explanation:
1. The product cost involved all the manufacturing cost i.e. direct cost that includes direct material, direct labor, manufacturing overhead etc
2. The period cost involved non-manufacturing cost i.e. indirect cost like rent expense, fixed selling & admin expenses, depreciation expense, etc
Therefore for 1 the option c is correct and for 2 the option b is correct
1. In a manufacturing firm, product costs include all manufacturing costs. Thus, option C is the correct option.
2. Period costs include all non-manufacturing costs. Thus, option B is the correct option.
Product Costs are the expenses incurred during a product's creation. Materials, labor, production supplies, and factory overhead are all included in these prices. A product cost includes the price of the labor needed to provide a service to a consumer.
Period costs are any expenses that are not accounted for in product costs. The manufacturing method is not directly related to period expenses. Period costs include overhead and sales, general, and administrative (SG&A) expenses. Period costs are expenses that are not connected to or related to the creation of inventories in management and cost accounting.
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Assume that the British government eliminates all controls on imports by British companies. Other things being equal, the U.S. demand for pounds would ____, the supply of pounds for sale would ____, and the equilibrium value of the pound would ____. a. remain unchanged; increase; decrease b. remain unchanged; increase; increase c. decrease; increase; decrease d. increase; increase; increase
Answer:
increase
increase
decrease
A building with an appraisal value of $128,156 is made available at an offer price of $153,050. The purchaser acquires the property for $32,829 in cash, a 90-day note payable for $26,957, and a mortgage amounting to $57,415. The cost basis recorded in the buyer's accounting records to recognize this purchase is
Answer:
$117,201
Explanation:
Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is
Using this formula
Cost basis=Cash+Note payable+Mortgage
Let plug in the formula
Cost basis=$32,829+$26,957+$57,415
Cost basis=$117,201
Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201
Imagine you have $25.00. Your best friend’s birthday is coming up, and you’d like to get them a gift. You’ve also been wanting to buy a new backpack since your current one has some holes in it. What do you decide to d with $25.00 and Why
Answer:
buy a new backpack because you need it more
Explanation:
If I had $25.00 and my best friend's birthday was coming up while I also needed a new backpack, I would first prioritize my friend's gift since it's time-sensitive. I would allocate around $15.00 for the gift, leaving me with $10.00 for the backpack.
What is a military-style backpack?Military backpacks are designed to carry all necessary materials for protracted periods of time. Assault packs are typically designed for shorter-duration or even day missions. Assault packs only hold about 20L, compared to a military backpack's capacity of 96L. Throughout the day, they are significantly more compact, lightweight, and portable.
For my friend's gift, I would consider their interests and what they might appreciate. I could buy a small but thoughtful gift such as a personalized card or a small decorative item. Alternatively, I could get something related to their hobbies, such as a book, a piece of jewelry, or a small gadget that they might enjoy.
With the remaining $10.00, I would look for a simple but durable backpack that fits my needs. I would try to find a sale or a clearance item to stretch my budget further.
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A rational decisionmaker
A. ignores marginal changes and focuses instead on “the big picture.”
B. takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions
C. ignores the likely effects of government policies when he or she makes choices
D. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action
What is a benefit of joining a professional organization for your chosen career path?
Answer: experience
Explanation: This will give the opportunity to show off your skills in the organization you have chosen plus it would be hands on and they can show you things to enhance your skills you learned.
Trade can benefit a family:__________
a. by allowing each person to specialize in the activities he or she does best.
b. by allowing the family to buy a greater variety of goods and services at a lower cost.
c. All of the above are correct.
d. Both a and b are correct.
e. only if the family is not in economic competition with other families.
Answer:
Option d: Both a and b are correct
Explanation:
Trade is simply defined as the act of giving or exchanging one or more goods and services for another. It can be between people,countries e.t.c. it makes people well paid off when they have different taste or preferences and said to have a rapid increase in terms of productivity through different specialization and the division of knowledge. It makes rich people richer and it leads to an increase in terms of productivity through comparative advantage.
In a small town, there is a shoe factory which employs workers at $15 an hour, for forty-hour weeks. There is a writer, who expects to finish a novel in nine months. If he does not write the novel, he can teach high school English for $12 an hour. What is his opportunity cost of writing the novel
Answer:
the amount he would have earned if he taught, $12
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
If the writer decides to write, he loses the opportunity to teach and earn $12. This is his opportunity cost.
Also, if he decided to teach instead, his opportunity cost the time he could have spent writing the novel
Osborn Manufacturing uses a predetermined overhead rate of $19.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $246,390 of total manufacturing overhead for an estimated activity level of 12,900 direct labor-hours. The company actually incurred $245,000 of manufacturing overhead and 12,400 direct labor-hours during the period.
Required:
1. Determine the amount of underapplied or overapplied manufacturing overhead for the period.
2. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company’s gross margin? By how much?
Answer and Explanation:
The computation is shown below:
a. The underapplied or overapplied overhead is
But before that the applied overhead is
Applied overhead = 12400 × 19.1
= $236,840
Now Underapplied overhead is
= $245,000 - $236,840
= $8,160
2 The gross margin of the company would be decreased by $8,160
Brody Corp uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started into the process during January. On January 31, the inventory consisted of 650 units that were 70% completed. What would be the equivalent units for conversion cost using the weighted average method?a. 13,000b. 13,585c. 14,105d. 14,300
Answer:
14,105
Explanation:
Calculation for What would be the equivalent units for conversion cost using the weighted average method
Equivalent units for conversion cost=[(1,300 + 13,000 - 650 )×100%]+ (650 × 70%)
Equivalent units for conversion cost=(13,650 × 100%) + (650 × 70%)
Equivalent units for conversion cost=13,650+455
Equivalent units for conversion cost= 14,105
Therefore What would be the equivalent units for conversion cost using the weighted average method will be 14,105
By promoting transparency, the government can improve
a.profit margins
b.economies of scale
c.market efficiency
d.zoning
Answer:
Option c. is correct
Explanation:
By promoting transparency, the government can improve market efficiency.
The government should be transparent as transparency will also strengthen the democracy and effectiveness in Government. Openness provides information to the citizens about what their Government is doing for them.
Option c. is correct
Thomlin Company forecasts that total overhead for the current year will be $10,282,000 with 194,000 total machine hours. Year to date, the actual overhead is $5,689,800, and the actual machine hours are 98,100 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answer:
$490,500 underapplied
Explanation:
The computation of the overhead is shown below:
But before that the predetermined overhead rate and the applied overhead is
Predetermined overhead rate is
= Estimated overhead ÷ estimated activity
= $10,282,000 ÷ 194,000
= $53 per MH
Now
Applied overhead = actual activity × overhead rate
= 98,100 hours ×$53 per MH
= $5,199,300
Now the underapplied overhead is
= $5,689,800 - $5,199,300
= $490,500 underapplied
Suppose the current price of a good is $130. At this price, the quantity supplied is 125 units, and the quantity demanded is 165 units. For every $1 increase in price, the quantity supplied increases by 2 units and the quantity demanded decreases by 2 units.At the current price, the quantity demanded isgreater than the quantity supplied. This means that the market is currently experiencing ashortage . In order to adjust, the market price willincrease until the quantity demanded and quantity supplied are equal. The result is an equilibrium quantity of ________ and an equilibrium price of ________
Answer:
Equilibrium quantity: 145
Equilibrium price: $140
Explanation:
In order to find the answer, first we determine the current difference between quantity supplied and quantity demanded.
Quantity supplied - quantity demanded = difference
125 - 165 = -40
So we have a shortage of -40 units.
We have the information that a $1 increase in price increases supply by 2, and decreases demand by 2. Thus, in order to close the shortage, we need a $10 price increase, because this will raise supply by 20 units, and lower demand by 20 units as well, bringing the 40 gap to 0.
For this reason, the equilibrium quantity is 145 units, and the equilibrium price is $140.
a. On April 1, the company hired an attorney for a flat monthly fee of $2,500. Payment for April legal services was made by the company on May 12.
b. As of April 30, $2,175 of interest expense has accrued on a note payable. The full interest payment of $6,525 on the note is due on May 20.
c. Total weekly salaries expense for all employees is $14,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3.
The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses.
Answer:
A. Apr 30
Dr Legal fees expense 2,500
Cr Legal fees payable 2,500
May 12
Dr Legal fees payable 2,500
Cr Cash 2,500
B. Apr 30
Dr Interest expense 2,175
Cr Interest payable 2,175
May 20
Dr Interest expense 4,350
Dr Interest payable 2,175
Cr Cash 6,525
C. Apr 30
Dr Salaries expense 5,600
Cr Salaries payable 5,600
May 03
Dr Salaries expense 8,400
Dr Salaries payable 5,600
Cr Cash 14,000
Explanation
Preparation of the adjusting entry for both April 30 and the subsequent entry during May to record the payment of the accrued expenses.
A. Apr 30
Dr Legal fees expense 2,500
Cr Legal fees payable 2,500
May 12
Dr Legal fees payable 2,500
Cr Cash 2,500
B. Apr 30
Dr Interest expense 2,175
Cr Interest payable 2,175
May 20
Dr Interest expense 4,350
(6,525-2,175)
Dr Interest payable 2,175
Cr Cash 6,525
C. Apr 30
Dr Salaries expense 5,600
(14,000*2/5)
Cr Salaries payable 5,600
May 03
Dr Salaries expense 8,400
(14,000*3/5)
Dr Salaries payable 5,600
(14,000*2/5)
Cr Cash 14,000
Bi-Lo Traders is considering a project that will produce sales of $44,800 and have costs of $25,700. Taxes will be $4,500 and the depreciation expense will be $2,650. An initial cash outlay of $2,100 is required for net working capital. What is the project's operating cash flow?
Answer:
$10,700
Explanation:
Operating cash flow is computed as;
= Net income + non cash expenses - outlay in working capital
First, we'll determine the net income
Net income = Sales $44,800 - cost $27,500 depreciation expense $2,650 - Taxes $4,500
Net income = $10,150
Operating cash flow = $10,150 + $2,650 - $2,100 = $10,700
As the field of OSCM has advanced, new concepts have been applied to help companies compete in a number of ways, including the advertisement of the firm's products or services. One recent concept to gain the attention of companies is promoting sustainability. Discuss how you have seen the idea of sustainability used by companies to advertise their goods or services.
Explanation:
Sustainability can be implemented in different ways in an organization, it can be a set of procedures and policies, through environmental management, environmental management systems, etc.
In the case of products and services, it is very common for the end consumer to realize that a company adopts sustainability through environmental certifications, which is generally represented in the form of a seal on the product packaging.
Environmental certifications are a way for the company to demonstrate its sustainability values to its stakeholders, which strengthens the brand, creates value and reliability in the organization's products and services.
Determine the difference in the present worth values of the following two commodity contracts at an interest rate of 8% per year. a. Contract 1 has a cost of $10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years. b. Contract 2 has the same cost in year 1, but costs will escalate at 6% per years for 11 years
Answer:
$14,336
Explanation:
Calculation to Determine the difference in the present worth values
First step is to calculate Contract 1 present worth values
Contract 1 present worth values = 10,000{1 – [(1 + 0.04)/(1 + 0.08)]^10}/(0.08 – 0.04)
Contract 1 present worth values = 10,000{1 – [(1.04)/(1 .08)]^10}/( 0.04)
Contract 1 present worth values = $78,590
Second step is to Contract 2 present worth values
Contract 2 present worth values
= 10,000{1 – [(1 +0.06)/(1 +0.08)]^11}/(0.08 – 0.06)=
Contract 2 present worth values
= 10,000{1 – [(1 .06)/(1 .08)]^11}/( 0.02)
Contract 2 present worth values = $92,926
Now let calculate the difference in the present worth values
Present worth values Difference =$92,926-$78,590
Present worth values Difference =$14,336
Therefore the difference in the present worth values will be $14,336
A company that sells running shoes online wants to compare two new marketing strategies. They will test the strategies on 10 weekdays. In the morning of each day, a web page describing the comfort of the running shoes will be displayed. In the afternoon of each day, a web page describing the discounted price for the shoes will be displayed. Sales of the featured running shoes in the morning will be compared with sales in the afternoon at the end of the experiment. What are the experimental units, the treatments, and the outcomes for this experiment
Answer:
The explanation of the three factors and they conclusion are below.
Explanation:
To begin with, when we talk about experimental units we refer to the entities that the researcher looks forward to make inferences about, so that means that in this case the experimental units of the situation will be all the people who got to visit the website in both schedules, the morning shift and the afternoon shift.
Secondly, the treatments is understood to be the process or the way, it could be said, that the researchers administrate to the experimental units. So that implicates that in this case the treatments will be the morning with its comfort described and the afternoon on the other side with its discounted prices shown.
Finally, the most probable outcomes for this experiments will be that the statics will show how the people interact with the variables and which of them generated more interest, that being either price or comfort. It will also show the behavior of the people when it comes to understand if the tend more to visit the web site at morning or afternoon.
Check for $10 incorrectly charged by bank as $100.
Is this an addition or reduction on the bank or company side of a bank reconciliation
Answer:
On the bank reconciliation sheet this would be a reduction because on the customers side it was a debit, which turns into a credit once given back and the bank must perform a reduction to account for the error on the statement sheet
Answer:
Addition
Explanation:
They took too much money out 90$
19) Which of the following best describes horizontal analysis? A) calculating key ratios to evaluate performance B) comparing a company's financial statements with other companies C) comparing financial statement amounts from year to year for the same company D) expressing each financial statement amount as a percentage of a budgeted amount
Answer:
C) comparing financial statement amounts from year to year for the same company
Explanation:
Horizontal analysis refers to an analysis of the items in the financial statements that should be compared for a period of time. It basically used to see the situation of the trends how it goes whether it is increase or decrease. For using this, the two or more periods financial statements are required
Therefore according to the given options, the option c is correct
Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On November 17, 2021, a fire resulted in the loss of all of the toppings stored in one section of the warehouse. The company must provide its insurance company with an estimate of the amount of inventory lost. The following information is available from the company's accounting records:
Fruit Toppings Marshmallow Toppings Chocolate Toppings
Inventory, January 1, 2013 $22,000 $7,200 $3,200
Net purchases through Nov. 17 160,000 38,000 12,200
Net sales through Nov. 17 210,000 57,000 20,200
Historical gross profit ratio 20% 30% 30%
Required:
Calculate the estimated cost of each of the toppings lost in the fire.
Answer:
Estimated cost of Fruit Toppings lost in the fire = $14,000
Estimated cost of Marshmallow Toppings lost in the fire = $5,300
Estimated cost of Chocolate Toppings lost in the fire = $1,260
Explanation:
Fruit Marshmallow Chocolate
Toppings Toppings Toppings
Inventory, January 1, 2013 [a] 22,000 7,200 3,200
Net purchases through Nov. 17 [b] 160,000 38,000 12,200
Net sales through Nov. 17 [c] 210,000 57,000 20,200
Historical gross profit ratio [d] 20 30 30
Gross Profit [c*d%] [e] 42000 17,100 6,060
Cost of Good Sold [c-e] [f] 168,000 39,900 14,140
Inventory, Nov 17, 2013 [a+b-f] [g] 14,000 5,300 1,260
You want to buy a new sports coupe for $91,500, and the finance office at the dealership has quoted you an APR of 7.3 percent for a 72 month loan to buy the car. a. What will your monthly payments be
Answer: $1573
Explanation:
The information given above can be processed further as follows:
Nper = 72
Rate = 7.3%/12 = 0.073/12 = 0.0060833 = 0.0061
PV = 91500
The formula to use will be:
= PV ÷ 1 - (1 - r)^-nper / r
= 91500 ÷ 1 - (1 0.0061)^-72 / 0.0061
= $1573
Therefore, monthly payments will be $1573
Identify the following as financing activities (F) or investing activities (I):
a. Purchase of equipment
b. Purchase of treasury stock
c. Reduction of long-term debt
d. Sale of building
e. Resale of treasury stock
f. Increase in short-term debt
g. Issuance of common stock
h. Purchase of land
i. Purchase of common stock of another firm
j. Payment of cash dividends
k. Gain on sale of land
l. Repayment of debt principal
Answer:
Explanation:
Financial activities would basically be anything that involves money but is does not involve an asset with value. This would instead be considered Investing activities if you are buying or selling any asset financial asset. Therefore the following would be considered...
a. Purchase of equipment (F)
b. Purchase of treasury stock (I)
c. Reduction of long-term debt (F)
d. Sale of building (I)
e. Resale of treasury stock (I)
f. Increase in short-term debt (F)
g. Issuance of common stock (I)
h. Purchase of land (I)
i. Purchase of common stock of another firm (I)
j. Payment of cash dividends (I)
k. Gain on sale of land (I)
l. Repayment of debt principal (F)
Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: Monthly Unit Sales 4,000 8,000 13,000 11,000 March April May June Total units 36,000 sold If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 36,000 units over four months at a level of 9,000 per month.
a. What is the ending inventory at the end of each month?
b. If the inventory costs $12 per unit and will be financed at the bank at a cost of 6 percent, what is the monthly financing cost and the total for the four months?
Answer:
Bambino Sporting Goods
a. March April May June
Ending Inventory 5,000 6,000 2,000 0
b. Monthly financing cost = $540
Total for the four months = $2,160
Explanation:
a) Data and Calculations:
March April May June
Beginning Inventory 0 5,000 6,000 2,000
Production 9,000 9,000 9,000 9,000
Monthly sales 4,000 8,000 13,000 11,000
Ending Inventory 5,000 6,000 2,000 0
Cost of inventory = $12 per unit
Monthly financing cost = $540 ($108,000 * 6% * 1/12)
Total financing cost for the four months = $2,160 ($540 * 4)
In the current year, Mitchell Manufacturing expected Job No. 13 to cost $600,000 of overhead, $650,000 of materials, and $400,000 of labor. Mitchell applied overhead based on direct labor cost. Actual production required an overhead cost of $420,000, $750,000 of materials used, and $300,000 of labor. All of the goods were completed. What amount was transferred from Work-In Process to Finished Goods?A. $1,500,000. B. $1,470,000. C. $1,650,000. D. $1,670,000.
Answer:
A. $1,500,000
Explanation:
The overhead is applied on the basis of the direct labor cost
Overhead allocation rate = $600,000/$400,000 = 1.5 times
Materials used
$750,000
Labor cost
$300,000
Prime cost
$1,050,000
Overhead ( direct labor cost × 1.5) = $300,000 × 1.5 = $450,000
The amount of transferred finished goods from WIP is $1500,000 I.e prime (cost $1,050,000 + overhead $450,000)
Three primary ledgers used in double-entry bookkeeping?
Answer:
General ledger
The chart of accounts
Journals
Explanation:
The general ledger contains all the transactions carried out and registered by the company.
The chart of accounts is lists and codes all the accounts that are used by the by the company, e.g. cash might be account 101.
The journal entries are the individual entries recorded in the general ledger or any other specific ledger.