Answer:
324
Explanation:
Calculation to determine What order quantity maximizes expected profit for Bakery A
First step is for the Salvage value
Salvage value = $2 × (1 - 80%)
Salvage value= $0.40
Second step is to calculate the Overage cost
Overage cost = $0.50 - $0.40
Overage cost = $0.10
Second step is to calculate the Underage cost
Underage cost = $2 - $0.50
Underage cost = $1.50
Third step is to calculate the The critical ratio
The critical ratio = 1.5/(1.5 + 0.4) = 0.79. z = 0.8
Now let calculate the Order quantity
Order quantity = 300 + (0.8× 30)
Order quantity= 324
Therefore the order quantity maximizes expected profit for Bakery A is 324
The two main sources of stockholders' equity are Question 4 options: investments by stockholders and net income retained in the business investments by stockholders and dividends paid net income retained in the business and dividends paid investments by stockholders and purchases of assets
Answer:
investments by stockholders and net income retained in the business.
Explanation:
Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.
The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.
Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.
Retained earnings represents the total stockholders' equity reinvested back into the company.
This ultimately implies that, Retained Earnings statement refers to the changes in the retained earnings account of an organization or business firm, which occurred during the accounting period and typically comprises of net income arising from the income statement.
Thus, the Retained Earnings statement is based upon;
Retained Earnings + Net Income – Dividends.
Retained Earnings statement can be defined as a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
Hence, the two main sources of stockholders' equity are investments by stockholders and net income retained in the business.
Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is:
Answer:
Tan Furniture Manufacturing Company
Peggy's gross income from the above is:
= $3,000.
Explanation:
a) Data and Calculations:
Retail price of the furniture = $12,500
Discounted price for employees = $9,500
Gross income received by Peggy = $3,000 ($12,500 - $9,500)
b) The gross income represents the total amount of benefit derived by Peggy by purchasing the furniture from Tan Furniture Manufacturing Company instead of from another manufacturer.
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 $62,000
Work in Process-Spinning Department 35,000
Work in Process-Tufting Department 28,500
Materials 17,000
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, $500,000
2 Materials requisitioned for use:
Fiber-Spinning Department, $275,000
Carpet backing-Tufting Department, $110,000
Indirect materials-Spinning Department, $46,000
Indirect materials-Tufting Department, $39,500
31 Labor used:
Direct labor-Spinning Department, $185,000
Direct labor-Tufting Department, $98,000
Indirect labor-Spinning Department, $18,500
Indirect labor-Tufting Department, $9,000
31 Depreciation charged on fixed assets:
Spinning Department, $12,500
Tufting Department, $8,500
31 Expired prepaid factory insurance:
Spinning Department, $2,000
Tufting Department, $1,000
31 Applied factory overhead:
Spinning Department, $80,000
Tufting Department, $55,000
31 Production costs transferred from Spinning Department to Tufting Department, $547,000
31 Production costs transferred from Tufting Department to Finished Goods, $807,200
31 Cost of goods sold during the period, $795,200
Required:
1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.
2. Compute the January 31 balances of the inventory accounts.*
3. Compute the January 31 balances of the factory overhead accounts.
Answer:
Port Ormond Carpet Company
1. Journal Entries:
Jan. 31 Debit Materials $500,000
Credit Accounts payable $500,000
To record the purchase of materials on account.
Jan. 31 Debit Work-in-Process - Spinning $275,000
Credit Materials $275,000
To record the materials requisitioned.
Jan. 31 Debit Work-in-Process -Tufting $110,000
Credit Materials $110,000
To record carpet backing
Jan. 2 Debit Factory Overhead - Spinning $46,000
Debit Factory Overhead - Tufting $39,500
Credit Materials $85,500
To record indirect materials used.
Jan. 31 Debit Work-in-Process - Spinning $185,000
Debit Work-in-Process - Tufting $98,000
Credit Factory Payroll $283,000
To record direct labor costs.
Jan 31: Debit Overhead - Spinning $18,500
Debit Overhead - Tufting $9,000
Credit Factory Payroll $27,500
To record indirect labor costs.
Jan. 31: Debit Factory Overhead - Spinning $12,500
Debit Factory Overhead - Tufting $8,500
Credit Factory Depreciation Expense $21,000
To record depreciation costs.
Jan. 31:
Debit Factory Overhead - Spinning $2,000
Debit Factory Overhead - Tufting $1,000
Credit Factory Insurance $3,000
To record insurance costs.
Jan. 31 Debit Work-in-Process - Spinning $80,000
Credit Factory Overhead - Spinning $80,000
To record overhead costs applied.
Jan. 31 Debit Work-in-Process - Tufting $55,000
Credit Factory Overhead $55,000
To record overhead costs applied.
Jan. 31 Debit Work-in-Process - Tufting $547,000
Credit Work-in-Process - Spinning $547,000
To record the transfer to Tufting department.
Jan. 31 Debit Finished Goods Inventory $807,200
Credit Work-in-Process- Tufting $807,200
To record the transfer to Finished Goods.
Jan. 31 Debit Cost of Goods Sold $795,200
Credit Finished Goods $795,200
To record the cost of goods sold.
2. January 31 balances of the inventory accounts:
Finished Goods = $74,000
Work-in-Process - Spinning = $28,000
Work-in-Process - Tufting = $31,300
Materials = $46,500
3. Factory Overhead Accounts Balances:
Spinning $1,000 (Debit)
Tufting $3,000 (Credit)
Explanation:
a) Data and Calculations:
January 1 Inventories:
Finished Goods = $62,000
Work in Process- Spinning = $35,000
Work in Process - Tufting = $28,500
Materials = $17,000
Finished Goods
Account Titles Debit Credit
Jan. 1 Beginning balance $62,000
Jan. 2 Work-in-Process-Tufting 807,200
Jan. 31 Cost of Goods Sold $795,200
Jan. 31 Ending balance 74,000
Work-in-Process - Spinning
Account Titles Debit Credit
Beginning balance $35,000
Jan. 2 Materials 275,000
Jan. 31 Direct labor 185,000
Applied overhead 80,000
Work-in-Process -Tufting $547,000
Jan. 31 Ending balance 28,000
Work-in-Process - Tufting
Account Titles Debit Credit
Jan. 1 Beginning balance $28,500
Jan. 2 Carpet backing 110,000
Jan. 31 Direct labor 98,000
Jan. 31 Applied overhead 55,000
Jan. 31 WIP- Spinning 547,000
Jan. 31 Finished Goods $807,200
Jan. 31 Ending balance 31,300
Cost of Goods Sold
Account Titles Debit Credit
Jan. 31 Finished Goods $795,200
Materials
Account Titles Debit Credit
Jan. 1 Beginning balance $17,000
Jan. 2 Accounts payable 500,000
Jan. 31 Work-in-Process - Spinning $275,000
Jan. 31 Work-in-Process - Spinning 46,000
Jan. 31 Factory Overhead - Tufting 39,500
Jan. 31 Factory Overhead - Tufting 110,000
Jan. 31 Ending balance 46,500
Factory Overhead - Spinning
Account Titles Debit Credit
Jan. 31 Materials - Spinning 46,000
Jan. 31 Payroll - Spinning 18,500
Jan. 31 Depreciation - Spinning 12,500
Jan. 31 Factory insurance-Spinning 2,000
Jan. 31 Work in Process 80,000
Jan. 31 Balance 1,000
Factory Overhead - Tufting
Account Titles Debit Credit
Jan. 31 Materials - Tufting 39,500
Jan. 31 Payroll - Tufting 9,000
Jan. 31 Depreciation - Tufting 8,500
Jan. 31 Factory insurance- Tufting 1,000
Jan. 31 Work in Process 55,000
Jan. 31 Balance 3,000
Rules are formally expressed as
O a code of conduct.
consequences.
O a code of ethics.
O a conflict of interest.
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced. Overhead costs of $94,500 were estimated and allocated to the following activities: Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,000
Machine setups Number of setups 21,500
Quality inspection Number of inspections 33,000
$94,500 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600 Instructions
(a) Determine the overhead rates for each activity Expected Use Estimatedof Cost Driver/Activity-Based
Activity Cost Pools Overhead Activity OH Rates
Materials Handling/ requisition
Machine Setups/setup
Quality inspections/ inspection
(b) Assign the manufacturing overhead costs for April to the two products using activity-based costing, and calculate a per unit OH cost.
Answer:
Results are below.
Explanation:
First, we need to calculate the activity rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,000 / 1,000= $40 per requisition
Machine setups= 21,500 /500= $43 per setup
Quality inspection= 33,000 / 600= $55 per inspections
Now, we can allocate overhead to each product:
Missile range instruments:
Materials handling= 40*400= $16,000
Machine setups= 43*200= $8,600
Quality inspection= 55*200= $11,000
Total allocated overhead= $35,600
Space pressure gauges:
Materials handling= 40*600= $24,000
Machine setups= 43*300= $12,900
Quality inspection= 55*400= $22,000
Total allocated overhead= $58,900
Finally, the unitary overhead cost:
Missile range instruments:
Unitary allocated overhead= 35,600/50= $712
Space pressure gauges:
Unitary allocated overhead= 58,900/300= $196.33
A for-profit institution that works with the general public to open and manage
savings accounts is known as a(n).
A. commercial bank
B. savings bank
C. credit union
D. investment bank
Answer:
B. savings bank
Explanation:
Savings bank is defined as a bank which helps customers or people to invest or deposit in interest giving accounts that will give a long term investment.
Savings bank were started in Europe in the 19th century. Saving banks gives interest on the deposit amount that is why its is a for-profit institution for general public. The interest saving banks give by investing in government and corporate debt.
Hence, the correct answer is "B. savings bank".
1. My boss asks me politely to do things, gives me reasons why, and invites my suggestions. 2. I am encouraged to learn skills outside of my immediate area of responsibility. 3. I am left to work without interference from my boss, but help is available if I want it. 4. I am given credit and praise when I do good work or put in the extra effort. 5. People leaving the company are given an 'exit interview' to hear their views on the organization. 6. I am incentivized to work hard and well. 7. If I want extra responsibility my boss will find a way to give it to me. 8. If I want extra training my boss will help me find how to get it or will arrange it. 9. I call my boss and my boss's boss by their first names. 10. My boss is available for me to discuss my concerns or worries or suggestions. 11. I know what the company's aims and targets are. 12. I am told how the company is performing on a regular basis. 13. I am given an opportunity to solve problems connected with my work. 14. My boss tells me what is happening in the organization. 15. I have regular meetings with my boss to discuss how I can improve and develop.
Question Completion:
Given the above scenario, which management theory is dominantly in operation?
Theory X
Theory Y
Answer:
The dominant management theory in this case is:
Theory Y.
Explanation:
Theory X: This theory presents a process-driven work situation, whereby workers follow rules that they did not contribute in making. There is a lack of individual initiative and motivation because the assumption is that the workers dislike their work and must be coerced, directed, and controlled in order to achieve organizational goals.
Theory Y: With this theory, workers are treated as the most valuable assets of the company. Employees are self-motivated and generally, there is a high sense of value placed on human esteem and self-actualization by the workers and managers. The workers do not dislike their work, and they work to achieve goal congruence between organizational and individual goals.
Which methods can be used to run a query? Check all that apply.
On the Create tab, in the Queries group, click Run.
In query Design view, on the Design tab, click Run.
Switch to Datasheet view before any other commands.
Close the Show Table dialog box in the Datasheet view.
On the Create tab, in the Queries group, click Create Query.
Answer:
Option B and C
Explanation:
A query can be run by selecting query option visible through deign view option. After selecting the appropriate option, the query must be run. This shall execute the function for the selected option.
Like wise in data sheet view, one can see the action query before running it.
Hence, option B and C are correct
Answer:
B) In query Design view, on the Design tab, click Run.
C) Switch to Datasheet view before any other commands.
Explanation:
A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUs. Following are the characteristics of one item:
Demand (D) = 72 units/week (Assume 48 weeks per year)
Ordering and setup cost (S) = $55 /order
Holding cost (H) = $18 /unit/year
Lead time (L) = 3 week(s)
Standard deviation of weekly demand = 18 units
Cycle-service level = 90 percent
EOQ = 145 units
Under the same information as above, develop the best policies for a periodic review system.
1. The value of P that gives the same approximate number of orders per year as the EOQ is weeks (Hint: please round your answer to the nearest positive integer number).
2. The target inventory level that provides an 88 percent cycle-service level is units (Hint: please round your answer to the nearest positive integer number).
Answer:
Explanation:
Given that:
weekly demand = 72 units
no of weeks in 1 year = 48
Then; total demand = 72 × 48 = 3456 units
No of orders = [tex]\dfrac{\text{total demand }}{EOQ}[/tex]
= [tex]\dfrac{\text{3456}}{145}[/tex]
∴
The periodic review (P) = [tex]\dfrac{1}{no \ of \ orders}[/tex]
= [tex]\dfrac{1}{\dfrac{3456}{145}}[/tex]
[tex]= \dfrac{145}{3456}[/tex]
= 0.041956 year
≅ 2 weeks
Z score based on 88 percent service level = NORMSINV(0.88) = 1.18
Here;
Lead time = 3 wks
P = 2 weeks
Thus protection interval = ( 3+2) weeks
= 5 weeks
Safety stock = z-score × std dev. of demand at (P+L) days
std dev = [tex]\sqrt{5 } \times 18[/tex] = 2.236 × 18
std dev = 40.248 units
Safety stock = 1.18 × 40.248
safety stock = 47.49 units
Safety stock ≅ 48 units
Average demand during(P + L) = 5 × 72 units
= 360 units
Target inventory level = average demand + safety stock
= 360 units + 48 units
= 408 units
n many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this? lender of last resort source of ultimate credit provider of fiduciary insurance liquidity resource bailout bank Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this? deposit guarantee banking promise deposit insurance financially distressed institution clause
Answer:
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this?
The term is called:
lender of last resort.
Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this?
The term is called:
deposit insurance.
Explanation:
Central banks play important roles in the economy. They conduct the economy's monetary policy, regulate other banks, and provide various other financial services, including economic research. They stabilize the nation's currency by ensuring that unemployment is kept low and also prevent economic fluctuations.
what is the role of marketing?
Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for:_____.
• Total manufacturing costs, $8,450,000 • Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2017, $390,000 • Cost of finished goods manufactured, $8,020,000
Requirements:
1. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in and (b) cost of direct materials used in .
2. Calculate the ending work-in-process inventory on December 31, 2011.
Answer:
Results are below.
Explanation:
Giving the following information:
Total manufacturing costs, $8,450,000
Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)
Work-in-process inventory on January 1, 2017, $390,000
Cost of finished goods manufactured, $8,020,000
First, we need to calculate the direct material and direct labor:
Direct labor= Manufacturing overhead allocated/2.5
Direct labor= 3,375,000 / 2.5
Direct labor= $1,350,000
Total manufacturing costs= Direct material + direct labor + allocated overhead
8,450,000= Direct material + 1,350,000 + 3,375,000
Direct material= $3,725,000
Finally, the ending work-in-process:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
8,020,000= 390,000 + 8,450,000 - Ending WIP
Ending WIP= $820,000
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
Which of the following is an example of frictional unemployment? A former mayor doing volunteer work A former mayor doing volunteer work A factory worker who loses her job because of recession A factory worker who loses her job because of recession A college student working part-time at the campus bookstore A college student working part-time at the campus bookstore A college graduate interviewing for two available positions A college graduate interviewing for two available positions An architect whose job is replaced by computer software that designs buildings
Answer:
A college graduate interviewing for two available positions
Explanation:
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
An architect whose job is replaced by computer software that designs buildings is an example of structural unemployment. Structural unemployment i is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
A factory worker who loses her job because of recession is an example of cyclical recession. Cyclical unemployment occurs as a result of fluctuations in the economy.
The US Government is forecasting that the nominal risk-free rate of return on Treasury Notes maturing in 7 years is 2.5% and is expected to be constant for the foreseeable future. Apple Computer's Treasury department is considering issuing a 7 year corporate bond and they know that Apple's corporate bonds generally yield investors 100 basis points or 1% over the nominal risk free rate at the time of issuance. The bonds will be issued at par value. What is the coupon percentage and total yield expected on these new 7 year bonds?
a. 3.5%
b. 10%
c. 2.5
d. Cannot determine
Answer:
a. 3.5%
Explanation:
If the nominal interest rate of the Treasury bonds is 2.5%, and Apple's corporate bonds yield 1%, just add 2.5% + 1% = 3.5%.
when you are talking about bonds, 100 points = 1%. This many times confuses people that are not aware of this since you hear that a bond will pay 50 points more and you imagine a really high interest rate.
Answer:
A
Explanation:
arrange the scrambled letter
utsbetiust
icevers
pecitionmto
imcltea
ntertsan
Answer:
below
Explanation:
substitute
service
competition
climate
entrants
We have a graduated tax system, and the tax brackets are listed in Appendix A. If you are not familiar with the Fair Tax and Flat Tax ideas, do a little research. Share what you think would be best for our country.
Explanation:
i think the graduated tax system is fairest ,it imposes a higher rate on the rich than the poor and all this is done based on the tax payer if this is done it will help the poor to pay for needs such as shelter food and other personal needs it allows the poor to spend most of they money
function of the HR manager is concerned with employing people who
possess the necessary skills, knowledge, and aptitude
O Procurement
Development
O Motivation and compensation
STOS DE
TREI
O Integration
Answer:
Integration.
Explanation:
Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Thus, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.
The function of the HR manager that is concerned with employing people who possess the necessary skills, knowledge, and aptitude is known as integration. This is usually achieved through a recruitment process, which typically involves advertising a vacant position and accepting applications (resumes) from applicants who meet the minimum requirements.
A sales clerk at Schackne Company correctly prepared a sales invoice for $5,200, but the invoice was entered as $2,500 in the sales journal and similarly posted to the general ledger and accounts receivable ledger. The customer remitted only $2,500, the amount on his or her monthly statement. The most effective procedure for preventing this type of error is to:
Answer: Use predetermined totals to control posting routines
Explanation:
Based on the information given in the question, the most effective procedure for preventing this type of error is to use the predetermined total to control the posting routines.
The sales clerk should generate the control total do that the transactions can be posted. This will then be compared with the items posted to individual accounts.
at the best answer for the question
The selling of goods and/or services to a customer is called
A.Service Industry
B.Food Service
C.Purchasing
D.Retail
Answer:
The correct answer is D. Retail.
Explanation:
Retail is the sale to the final consumer of goods and services. It is a sector formed by different branches (such as the food industry, the fashion industry, the home industry, etc.), which constitutes the last link in the supply chain that goes from the manufacturer to the consumer, it is In other words, it is the culmination of the process of production of goods and services, when they reach the consumer. This sale is usually carried out in stores, supermarkets, pharmacies, internet platforms and any other place where goods and services can be offered to final recipients.
When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the annual period.
1. Interest has accrued on a $28,800, 6% note payable, issued on May 1.
2. On September 1, Rent Revenue was credited for $7,800, representing revenue from a subrental for a 6-month period beginning on that date.
3. Purchase of supplies for $2,110 during the year was recorded in the Supplies Expense account. On December 31, supplies of $540 are on hand.
Prepare the adjusting entry for each item. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 2. 3.
Prepare the reversing entry for each item where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit
Answer:
Sunland Inc.
Adjusting Journal Entries:
Account Titles and Explanation Debit Credit
Interest Expense $1,152
Interest Payable $1,152
To record accrued interest for 8 months.
Rent Revenue $2,600
Deferred Revenue $2,600
To record deferred rent revenue for 2 months.
Supplies Expense $1,570
Supplies $1,570
To record supplies expense for the period.
Explanation:
a) Data and Calculations:
1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)
2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)
3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)
b) The above adjusting journal entries are made in order to reverse the earlier entries made. The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.
A non-current asset was depreciated at the end of the first year of ownership using the straight-line method based on the following information. Cost $20 000 Working life 4 years Residual value $4000 It was then found that the reducing balance method at 30% per annum should have been used. What was the effect on the profit for the year of correcting this error?
A Decrease by $2000
B Increase by $2000
C Decrease by $6000
D Increase by $6000
Answer:
Correcting the error, the residual value of the product would increase by $802.
Explanation:
Since a non-current asset was depreciated at the end of the first year of ownership using the straight-line method based on the following information: Cost $ 20,000 Working life 4 years Residual value $ 4000; and it was then found that the reducing balance method at 30% per annum should have been used, to determine what was the effect on the profit for the year of correcting this error the following calculation should be performed:
100 - 30 = 70
Year 0: 20,000
Year 1: 20,000 x 0.7 = 14,000
Year 2: 14,000 x 0.7 = 9,800
Year 3: 9,800 x 0.7 = 6,860
Year 4: 6,860 x 0.7 = 4,802
Thus, correcting this error, the residual value of the product would increase by $ 802.
The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inverted U so related diversification has the best performance. is negative, meaning that more diversification always leads to lower firm performance. there is no relationship between the type of diversification and overall firm performance. takes on the shape of a U where modest diversification has the worst performance. is positive, meaning that more diversification always leads to higher firm performance.
Answer:
takes on the shape of an inverted U so related diversification has the best performance.
Explanation:
A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.
The portfolio variance is given by the equation;
[tex]Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}[/tex]
Where;
[tex]w_{n}[/tex] = the weight of the nth security.
[tex]d^{2}_{n}[/tex] = the variance of the nth security.
[tex]C_{OV_{1, 2}}[/tex] = the covariance of the two security.
The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $42,100 for Division A. Division B had a contribution margin ratio of 35% and its sales were $220,000. Net operating income for the company was $34,200 and traceable fixed expenses were $50,100. Corbel Corporation's common fixed expenses were:
Answer:
Common fixed costs= $34,800
Explanation:
First, we need to calculate the contribution margin for Division B:
Contribution margin Division B= slaes*contribution margin ratio
Contribution margin Division B= 220,000*0.35
Contribution margin Division B= $77,000
Now, the segmented margin for both Divisions:
Segmented margin= (42,100 + 77,000) - 50,100
Segmented margin= $69,000
Finally, the common fixed costs:
Common fixed costs= segmented margin - net income
Common fixed costs= 69,000 - 34,200
Common fixed costs= $34,800
An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Year 1 cost of goods soldunanswered
2. Year 2 cost of goods soldunanswered
3. Year 2 ending inventoryunanswered
4. Year 2 beginning inventory
Answer:
1. Year 1 cost of goods sold
2. Year 2 cost of goods sold
4. Year 2 beginning inventory
Explanation:
If year 1's ending inventory is wrong, the beginning inventory of year 2 will also be wrong (they are the same).
Cost of goods sold = cost of goods available for sale - ending inventory, so COGS for year 1 will be affected since ending inventory is wrong
Cost of goods available for sale = beginning inventory + purchases - ending inventory. Since beginning inventory year 2 is wrong, the cost of goods available for sale will also be wrong, as well as COGS
Freight Terms
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Merchandise Freight Paid Freight Terms Returns and Allowances
(Invoice Amount) by Seller (Invoice Amount)
a. $5,100 $200 FOB destination,
1/10, n/30 $1,700
b. 3,250 400 FOB shipping point,
2/10, n/30 1,000
Answer:
A. $3,566
B. $2,605
Explanation:
Calculation to Determine the amount to be paid in full settlement of each of two invoices, (a) and (b)
A. Amount paid in full=(5,100-1,700)*(100%-1%)+200
Amount paid in full=(5,100-1,700)*99%+200
Amount paid in full=3,400*99%+200
Amount paid in full=$3,566
B. Amount paid in full=(3,250-1,000)*(100%-2%) +400
Amount paid in full=(3,250-1,000)*98% +400
Amount paid in full=2,250*98%+400
Amount paid in full=$2,605
Therefore the amount to be paid in full settlement of each of two invoices, (a) and (b) will be :
A. $3,566
B. $2,605
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20% Lease payments = 0.6 million Times-interest-earned (TIE) ratio is 6.55 Principal payments = 4 million What is the company's EBIT? The company's interest expense? Select one: a. $8.0 million; $1.22 million b. $7.5 million; $0.75 million c. $8.0 million; $0.62 million d. $1.35 million; $0.37 million e. $3.33 million; $0.83 million
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million
what the role of marketing
Answer:
The Marketing Department plays a vital role in promoting the business and mission of an organization. It serves as the face of your company, coordinating and producing all materials representing the business.
Explanation:
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An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because:_________
a. mortgage backed securities eliminate prepayment risk for the investor.
b. mortgage backed securities diversify credit risk for the investor.
c. mortgage backed securities offer higher yields than individual mortgages.
d. mortgage backed securities returns are tax-exempt.
Answer:
b. mortgage backed securities diversify credit risk for the investor.
Explanation:
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because mortgage backed securities diversify credit risk for the investor.
In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.
On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $10,100 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that an 12% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much sales revenue would Wooten recognize on January 1, 2021
Answer: $9,017.89
Explanation:
Wooten will recognize the present value of $10,100 as it is to be paid to them in a year and the company sees time value of money as a significant component.
= 10,100 * Present value interest factor, 12%, 1 period
= 10,100 * 0.89286
= $9,017.886
= $9,017.89