Answer: 37
Explanation:
Marginal product is simply referred to as the additional output that's generated based on the additional input added to the production.
In this case, the total product of the first two sales clerks will be gotten by adding the marginal product of the first two sales clerk which will be:
= 20 + 17
= 37
Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to charge these costs against revenue in the current period. Another wishes to defer these costs and amortize them in the future. Which student is correct
Answer:
The student wishing to defer these costs and amortize them in the future.
Explanation:
Indeed, according to standard regulatory requirements, all the initial costs associated with incorporating a business cannot be deducted all at once in the first year of operation.
However, these costs are spread over a long period of time. And one way to do this is to amortize them in the future. Therefore, the second student deferring cost is correct.
Gross Domestic Product (GDP) can be defined as: I. The sum of all incomes while adjusting for indirect business taxes and foreign incomes. II. The market value of goods and services sold in an economy in some time period. III. The total market value of final goods and services produced in an economy in some time period. III only I and II only I, II and III II and III only I and III only
Answer:
I and III only
Explanation:
The full form of GDP is Gross domestic product. It is the sum of all the income at the time when the business taxes i.e. indirect and the foreign incomes would be adjusted also it is a sum total of market value of the goods and services i.e. final generated in an economy for a time period
Therefore the I and III statements are true
Osborn Manufacturing uses a predetermined overhead rate of $ 19.70 per direct labor- hour. This predetermined rate was based on a cost formula that estimates $265,950 of total manufacturing overhead for an estimated activity level of 13,500 direct labor-hours. The company actually incurred $260,000 of manufacturing overhead and 13,000 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 overhead increase or decrease the company's gross margin? By how much?
Answer:
1. $3,900
2. $3900
Explanation:
Required:
1. Calculation to Determine the amount of underapplied or overapplied manufacturing overhead for the period.
Applied overhead = 19.70*13,000
Applied overhead = 256,100
manufacturing overhead = 260,000-256,100
manufacturing overhead= underapplied by $3,900
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 overhead increase or decrease the company's gross margin? By how much
The gross margin would decrease by the amount of $3900
Functions of money and barter
Consider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow.
If people in this economy trade three goods, the price tag of each good must list ______prices, and the economy requires_____prices for people to carry out transactions. Suppose that the number of goods people trade increases to 15. Then the price tag of each good must list___prices, and the number of prices that the economy requires increases to_____. Now suppose that our economy has a money. The government now issues a national currency and there is no longer any barter.
In this economy, money and currency are not the same because:____.
1. The fact that the government issues currency means that the currency will be accepted as money by all agents.
2. The fact that the currency is backed by the government means that it will never lose value and will remain a perfect unit of account.
3. Just because the government issues currency does not mean that the currency will be accepted as money, since it must be used as a medium of exchange, store of value and standard of value.
4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.
Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?
1. Medium of exchange.
2. Double coincidence of wants.
3. Store of value.
4. Unit of account.
Solution :
When the people of this economy trades three of their goods, the price of the good must list 1 price and then the economy requires 3 prices for the people to carry transactions.
Suppose the number of the goods that people trade increases to 15 number, then the price of the goods must list one price and the number of the price that the economy requires increases to 15.
Money has an intrinsic value and it is the unit of account, while that of the currency is the measure of the value and have a purchasing power that government is bestowed on it being a legal tender.
The store of the value characteristics is negatively impacted. But because the ongoing increase in the cost of the standard implies inflation that means that the value of the assets as accounted by the store has a value function as the money decreases.
Even when the cost of the living increases, the money serves as the best medium of exchange and a unit of the account.
Double coincidence of the wants is the barter system that is required.
Jefferson Company, a commercial painting contractor, uses a normal-costing system to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct labor) and one indirect-cost pool called overhead costs. To each job, Jefferson allocates overhead at a budgeted rate of 80% of direct labor costs.
Jefferson provides the additional information for February:
1. As of February 1, Job A21, the only job in process, had incurred direct material costs of $30,000 and direct labor costs of $50,000.
2. Jobs A22, A23, and A24 were started in February.
3. Direct materials used during February were $150,000.
4. Direct labor costs for February were $120,000.
5. Actual overhead costs for February were $102,000.
6. On February 28, Job A24 was the only job still in process, and it had incurred direct materials costs of $20,000 and direct labor costs of $40,000.
As each job is completed, its cost is transferred to the Cost of Jobs Billed account. Each month, Jefferson closes any under-or over-allocated overhead to Cost of Jobs Billed.
1. Give one example of a direct cost and one example of an overhead cost for a job undertaken by Jefferson Company.
2. Calculate the overhead allocated to Job A21 as of February 1.
3. Calculate the overhead allocated to Job A24 as of February 28.
4. Calculate the under- or overallocated overhead for February.
5. Calculate ending balance of jobs still in process as of February 28.
6. Compute the Cost of Jobs Billed for February.
Answer:
Jefferson Company1. An example of a direct cost is the cost of direct raw materials. An example of an overhead cost is cost of factory repairs and maintenance.
2. The overhead allocated to Job A21 as of February 1 is $40,000.
3. The overhead allocated to Job A24 as of February 28 is $32.000.
4. The under-allocated overhead for February is $6,000
5. The ending balance of jobs still in process as of February 28 is $92,000.
6. The Cost of Jobs Billed for February is $394,000.
Explanation:
a) Data and Calculations:
Budgeted overhead allocation rate = 80% of direct labor costs
Beginning WIP:
Materials $30,000
Direct labor 50,000
Overhead 40,000 ($50,000 * 80%)
Overhead allocated to Job A21 as of February 1 = $40,000 ($50,000 * 80%)
Overhead allocated to Job A24 as of February 28 = $32,000 ($40,000 * 80%)
Total overhead allocated for February = $96,000 ($120,000 * 80%)
Actual overhead costs incurred = $102,000
Therefore, the under-allocated overhead for February = $6,000
The ending balance of jobs still in process as of February 28 (Job A24) =
Materials costs = $20,000
Labor costs = $40,000
Overhead applied = $32,000
Total costs = $92,000
Cost of Jobs Billed:
Beginning WIP: Cost of Job A21 = $120,000 ($30,000 + 50,000 + 40,000)
Costs incurred during the period:
Cost of Direct Materials 150,000
Cost of Direct Labor 120,000
Allocated overhead costs 96,000
Total costs of production = $486,000
Less Ending WIP (Job A24) = 92,000
Cost of Jobs Billed for February $394,000
Which of the following is a simple sentence?
a. Because we will be reducing employee health insurance benefits, some employees may be unhappy; however, we must make sure that they understand the reason for the change.
b. HMO and PPO insurance plans offer additional cost savings.
c. Having healthy employees decreases the cost of monthly premiums; therefore, we will be implementing a wellness program.
d. If health insurance costs continue to rise, employee copays may increase.
The simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
A simple sentence is a sentence with one independent clause (also called a main clause). It can have a compound subject or predicate. There is only one independent clause in a simple sentence and it expresses a single thought. Among the given sentences, the simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
Explanation:The sentence "HMO and PPO insurance plans offer additional cost savings" is a simple sentence because it contains only one subject-verb pair, “HMO and PPO insurance plans” (subject), “offer” (verb).
The sentence is clear and straightforward. It contains no dependent clauses or conjunctions that join two independent clauses. Hence, this sentence is a simple sentence.
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Dave M. Company issues 500 shares of $10 par value Common Stock and 100 shares of $40 par value Preferred Stock as a basket for a lump sum of $105,000. Total transaction costs paid to complete the sale was $5,000. Common Stock of the company was selling for $198 per share in the market that day and Preferred Stock was selling for $110 per share in the market that day.
Required:
a. Prepare a table showing how the sale price is allocated between the Common Stock and the Preferred Stock.
b. Prepare the journal entry to record the basket sale of the two stocks.
Answer:
a.
Allocation
Common Stock $94,500
Preferred Stock $10,500
b.
Journal Entry
Cash _____________________________$105,000
Common stock _____________________ $5000
Paid-in capital in excess of par - Common _$89,500
Preferred stock _____________________$4,000
Paid-in capital in excess of par - Preferred _$6,500
Explanation:
a.
First, we need to calculate the Market value of both stock using the foloowinf formula
Market value = Numbers of shares x Market value per share
Market value of common stock = 500 x $198 = $99,000
Market value of preferred stock = 100 x $110 = $11,000
Total value = $99,000 + $11,000 = $110,000
Now calculate the weight of each sock
Weight of common stock $99,000 / $110,000 = 0.90
Weight of preferred stock = $11,000 / $110,000 = 0.10
Allocation of the sale price is as follow
Allocated sale price = Weight of Stock x Sale price
Allocated sale price of common stock = $105,000 x 0.90 = $94,500
Allocated sale price of common stock = $105,000 x 0.10 = $10,500
b.
Common Sock is recorded separately as par value and paid-in capital excess of par as follow
Common Stock ( Par Value ) = 500 x $10 = $5,000
Common Stock ( Excess of Par ) = $94,500 - $5,000 = $89,500
Preferred Stock ( Par Value ) = 100 x $40 = $4,000
Preferred Stock ( Excess of Par ) = $10,500 - $4,000 = $6,500
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost. The remaining 60% of the business is with several different customers and they are charged at $35 per unit. Find (a) the breakeven volume for this job shop. (b) the unit cost if 100,000 units are made per year. (c) the annual profit for this quantity.
the majority of retailers are what
One major advantage of limited liability is that it:________.
a. is not subject to a free-rider problem.
b. has unlimited profit sharing among the firm's owners.
c. shields the personal assets of owners from liability claims.
d. is not subject to a principal-agent problem.
Answer: c. shields the personal assets of owners from liability claims.
Explanation:
An advantage of limited liability is that it shields the personal assets of owners from liability claims.
For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.
You purchase a property with a Market Value of $520,000 in 2005 using 5-year Interest Only 90% Loan-to-Value financing. In 2010, the Market Value of the property drops to $460,000. You are considering refinancing. The Loan-to-Value you can get for refinancing is only 70%. How much Total Cash Out of Pocket would you need to have to go through with the refinancing and pay back the original loan Principal outstanding
Answer:
$155,660
Explanation:
Note: The table to question is attached below
==> Loan to Value 90% in 2005
==> Loan to Value 70% in 2010
Loan Amount in 2005 = $520,000*0.9 = $468,000
Loan Amount in 2010 = $460,000*0.7 = $322,000
Loan Amount owed = $468,000
Through Refinancing = $322,000
Total cash out of pocket = $322,000*3% + $468,000 - $322,000
Total cash out of pocket = $9,660 + $468,000 - $322,000
Total cash out of pocket = $155,660
Which statement does not describe the Linux operating systems?
It is proprietary software.
Its code can be modified by users.
It was developed by Torvalds.
It is an open-source application
Answer:
c your correct
Explanation:
Identify the correct order of the four steps used to prepare a production cost summary (report). 1)Summarize the cost flow of physical units; (2) Compute the total cost of equivalent units of production; (3) Compute the cost per equivalent unit of production; and (4) Assign costs to units completed and units in process. (1)Summarize the flow of physical units; (2) Compute the equivalent units of production output; (3) Assign costs to units completed and units in process; and (4) Compute the cost per equivalent unit of production. (1)Summarize the flow of physical units; (2) Compute the equivalent units of production output; (3) Compute the cost per equivalent unit of production; and (4) Assign costs to units completed and units in process. (1)Summarize the flow of physical units; (2) Compute the equivalent units of production output; (3) Compute the total cost of equivalent units of production; and (4) Assign costs to units completed and units in process.
Answer:
The answer is "Option C".
Explanation:
The Costs of production relate to the price of a company producing or producing a service, which can include the range of expenditures, like labor, manufactured goods, supplies of items, and expenses. It has mainly four steps that can be defined as follows:
Complete the physical unit flow.Measure the production unit's equivalent.Compare the value per unit for output equivalent.Assign costs to finished units and manufactured units.hello, im stuck. if i could get some ideas for this i will mark you brainliest if i can.
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Answer: so you are giving someone instructions like how to make a sandwich with a lot of detail so someone could do everything you did :)
Explanation:
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The following balances were taken from the books of Novak Corp. on December 31, 2020.
Interest revenue $88,200 Accumulated depreciation—equipment $42,200
Cash 53,200 Accumulated depreciation—buildings 30,200
Sales revenue 1,382,200 Notes receivable 157,200
Accounts receivable 152,200 Selling expenses 196,200
Prepaid insurance 22,200 Accounts payable 172,200
Sales returns and allowances 152,200 Bonds payable 102,200
Allowance for doubtful accounts 9,200 Administrative and general expenses 99,200
Sales discounts 47,200 Accrued liabilities 34,200
Land 102,200 Interest expense 62,200
Equipment 202,200 Notes payable 102,200
Buildings 142,200 Loss from earthquake damage 152,200
Cost of goods sold 623,200 Common stock 502,200
Retained earnings 23,200
Assume the total effective tax rate on all items is 20%.
Required:
Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year.
Answer:
Net income = $110,400
Explanation:
Note: See the attached excel file for the multiple-step income statement for the Year Ended December 31, 2020.
Multiple-step income statement can be described as an income statement that that contains multiple additions and subtractions employed in order calculate the net income.
In a multiple-step income statement, the gross profit is shown and the operating revenues and expenses are clearly separated from the nonoperating revenues, expenses, gains, and losses.
In the attached excel, a net income is $110,400.
Jeremy earned $100,000 is salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of the household and has $23,000 in itemized deductions. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy’s tax refund or tax due including the tax on the capital gain?
Answer:
Follows are the solution to this question:
Explanation:
Points Description Amount Computation
(1) Major Revenue $110,000 [tex]\$ 100,000 \ salary + \$ 6,000 \\ \\Interest \ income + \$4,000 \\\\ \text{ capital gain in long term}[/tex]
(2) AGI allowance 0
(3) Gross sales adjusted $110,000 (1) - (2)
(4) Deduction norm 18,350 Chief of Household
(5) susceptible to deductions 23,000
(6) Enhanced standard (23,000) (5) > (4)
deduction or individualized
deductions
(7) Taxable Revenue $87,000
(8) Response for $13,298 [tex][(83,000 - 52,850) \times[/tex]
incoming taxes [tex]22\%+ \$6,065] + \$4000\times 15\%[/tex]
(See the household head tax
plan)
(9) Allowance for children's taxes (2,000)
(10) Withdrawal of tax (11,000)
Taxes due $ 298 (8) + (9) + (10)
If Black Diamond has teams of employees working on projects from nations around the world with varying cultural backgrounds and differing outdoor interests, then this is an example of:
a. Generational differences
b. Surface-level diversity
c. Stereotypes
d. Deep-level diversity
Use your knowledge of the different organizational concepts to classify each of the following statements.
If Black Diamond were to have different contracts for its workers such that some people are paid $15.10 an hour and others are paid $9.25 an hour to perform the same job then this would be an example of:______
Answer:
d. Deep-level diversity
Explanation:
The term diversity includes the differences that are possessed by the individuals and that distinguishes them from each other. The variation in physical attributes, beliefs, nationality, religion and other such aspects helps in building what is termed to be diversity.
Deep-level diversity is characterized with the attributes that are non-observable. The beliefs, ideas, values and religion are the attributes of deep-level diversity.
According to the given excerpt, the cultural backgrounds and outdoor interests are the aspects that are unobservable and therefore grouped under deep-level diversity.
Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets (which is equal to its total invested capital) of $435,000. The debt-to-total-capital ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt-to-total-capital ratio. Assume that sales, operating costs, total assets, total invested capital, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure
Answer:
1.74%
Explanation:
17% Debt 50% Debt
Sales $500,000 $500,000
Less: Cost $450,000 $450,000
Less: Interest $5,546 $17,400
Profit before tax $44,454 $32,600
Less: Tax at 35% $15,559 $11,410
Net Income $28,895 $21,190
Equity $361,050 $217,500
Return on Equity 8.00% 9.74%
Change in ROE = 9.74% - 8.00% = 1.74%
Workings
Interest (17% Debt) = 43,500*17%*7.5% = $5,546
Interest (50% Debt) = 43,500*50%*8% = $17,400
Tax (17% Debt) = $44,454 * 0.35 = 15,559
Tax (50% Debt) = $32,600 * 0.35 = 11,410
Equity (17% Debt) =435,000*83% = 361,050
Equity (50% Debt) = 435,000*50% = $217,500
Return on Equity = $28,895/$361,050 = 8.00%
Return on Equity = $21,190/$217,500 = 9.74%
Arif told Bano, his wife, that he would divorce her, if she does not transfer her
personal assets to him. She agreed to transfer her assets to him. Can Bano avoid
the contract?
What are the benefits of outsourcing
(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation
The following trial balance was taken from the books of Sheridan Corporation on December 31, 2020.
Account Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
At year end, the following items have not yet been recorded.
a. Insurance expired during the year, $2,000.
b. Estimated bad debts, 1% of gross sales.
c. Depreciation on furniture and equipment, 10% per year.
d. Interest at 6% is receivable on the note for one full year.
e. Rent paid in advance at December 31, $5,400 (originally charged to expense).
f. Accrued salaries at December 31, $5,800.
Required:
a. Prepare the necessary adjusting entries.
b. Prepare the necessary closing entries.
Answer:
Sheridan Corporation
a. Adjusting Journal Entries on December 31, 2020:
a. Debit Insurance Expense $2,000
Credit Prepaid Insurance $2,000
To record the insurance expense for the year.
b. Debit Bad Debts Expense $2,680
Credit Accounts Receivable $2,680
To record bad debts written off.
c. Debit Depreciation Expense - Equipment $12,260
Credit Accumulated Depreciation - Equipment $12,260
To record the depreciation expense for the year.
d. Debit Interest Receivable $672
Credit Interest Revenue $672
To record interest revenue receivable on the note.
e. Debit Rent Prepaid $5,400
Credit Rent Expense $5,400
To record rent prepaid, previously recorded as an expense.
f. Debit Salaries and Wages Expense $5,800
Credit Salaries Payable $5,800
To record accrued salaries.
b. Closing Journal Entries on December 31, 2020:
Debit Sales Revenue $268,000
Interest Revenue $672
Credit Income Summary $268,672
To close the revenue accounts to the income summary.
Debit Income Summary $202,040
Credit:
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
To close the expense accounts to the income summary.
Explanation:
a) Data and Calculations:
Sheridan Corporation
Unadjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
Adjustments:
a. Insurance Expense $2,000 Prepaid Insurance $2,000
b. Bad Debts Expense $2,680 Accounts Receivable $2,680 (1% of $268,000)
c. Depreciation Expense - Equipment $12,260 Accumulated Depreciation - Equipment $12,260 (10% of $122,600)
d. Interest Receivable $672 Interest Revenue $672 (6% of $11,200)
e. Rent Prepaid $5,400 Rent Expense $5,400
f. Salaries and Wages Expense $5,800 Salaries Payable $5,800
Sheridan Corporation
Adjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 38,020
Notes Receivable 11,200
Interest Receivable 672
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 2,720
Prepaid Rent 5,400
Equipment 122,600
Accumulated Depreciation--Equip. 26,360
Accounts Payable 10,100
Salaries Payable 5,800
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Interest Revenue 672
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
Totals $426,452 $426,452
How do you make people interested in your business?
Identify Your Ideal Client. It's easier to look for customers if you know the type of consumers you seek.
Discover Where Your Customer Lives.
Know Your Business Inside and Out.
Position Yourself as the Answer.
Try Direct Response Marketing.
Build Partnerships.
Follow Up.
Attract New Customers Using Social Media. Optimizing your social media accounts takes very little time to do and can significantly increase your reach.
Improve Website SEO.
Engage with Loyal Customers.
Collaborate with Local Business Partners.
Social Media Giveaways.
Explanation:
Ask for referralsNetworkoffer discounts and incentive for new customers onlyRe- contact old customersImprove your websitepartners with complementary businesspromote your expertiseuse online reviews to your advantageOn January 2, 2020, Riverbed Company sells production equipment to Fargo Inc. for $46,000. Riverbed includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Riverbed incurs costs related to warranties of $900. At December 31, 2020, Riverbed estimates that $690 of warranty costs will be incurred in the second year of the warranty.
Required:
a. Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020.
b. Repeat the requirements for (a), assuming that in addition to the assurance warranty.
Answer:
A. Jan 2,2020
Dr Cash $46,000
Cr Sales Revenue $46,000
During 2020
Dr Warranty expenses $900
Cr Cash $900
Dec 31,2020
Dr Warranty expense $690
Cr Accrued warranty liability $690
B. Jan 2,2020
Dr Cash $46,760
Cr Sales revenue $46,000
Cr Unearned warranty expense $760
During 2020
Dr Warranty expenses $900
Cr Cash $900
Dec 31,2020
Dr Warranty expense $690
Cr Accrued warranty liability $690
Explanation:
Preparation of the journal entry to record this transaction on January 2, 2020, and on December 31, 2020
Jan 2,2020
Dr Cash $46,000
Cr Sales Revenue $46,000
(Being to record sale of equipment)
During 2020
Dr Warranty expenses $900
Cr Cash $900
(Being to record warranty expense)
Dec 31,2020
Dr Warranty expense $690
Cr Accrued warranty liability $690
(Being to record warranty liability)
B. Preparation of the Journal entry to Repeat the requirements for (a)
Jan 2,2020
Dr Cash $46,760
($46,000+$760)
Cr Sales revenue $46,000
Cr Unearned warranty expense $760
(Being to record sale of equipment and extended warranty)
During 2020
Dr Warranty expenses $900
Cr Cash $900
(Being to record warranty expense)
Dec 31,2020
Dr Warranty expense $690
Cr Accrued warranty liability $690
(Being to record warranty liability)
Kingbird Corporation is preparing its December 31, 2020, balance sheet. The following items may be reported as either a current or long-term liability.
1. On December 15, 2020, Kingbird declared a cash dividend of $2.30 per share to stockholders of record on December 31. The dividend is payable on January 15, 2021. Kingbird has issued 1,000,000 shares of common stock, of which 50,000 shares are held in treasury.
2. At December 31, bonds payable of $114,286,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $28,571,500 every September 30, beginning September 30, 2021.
3. At December 31, 2019, customer advances were $12,485,000. During 2020, Kingbird collected $32,673,000 of customer advances; advances of $27,486,000 should be recognized in income.
Required:
For each item above, indicate the dollar amounts to be reported as a current liability and as a long-term liability, if any.
Answer:
1. Dividend payable = (1,00,000 shares - 50,000 shares) shares * $2.30 per shares = $2,185,000 will be reported as current liability (payable within 1 year)
2. Bonds payable (September 30, 2021 installment)= $28,571,500 and interest on bonds = ($114,286,000*12%*3/12) = $3,428,580 are current liabilities whereas Bonds payable (Other than September 30, 2018 installment) =($114,286,000 - $28,571,500) = $85,714,500 are long term liabilities.
3. Customer advances = ($12,485,000 + $32,673,000 - $27,486,000) = $17,672,000 are current liabilities.
Macy Corporation's relevant range of activity is 8,400 units to 17,000 units. When it produces and sells 12,700 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.55 Direct labor $ 4.00 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 1.30 Fixed administrative expense $ 0.60 Sales commissions $ 1.25 Variable administrative expense $ 0.50 If the selling price is $32.50 per unit, the contribution margin per unit sold is closest to: Multiple Choice $19.20 $22.95 $11.55 $7.35
Answer:
Contribution margin per unit= $19.2
Explanation:
The contribution margin is calculated as follow:
Contribution margin per unit= selling price - total unitary variable cost
Direct materials $5.55
Direct labor $4.00
Variable manufacturing overhead $2.00
Sales commissions $1.25
Variable administrative expense $0.50
Total variable cost per unit= $13.3
Contribution margin per unit= 32.5 - 13.3
Contribution margin per unit= $19.2
The Mixing Department of Premium Foods had 50,000 equivalent units of materials for October. Of the 50,000 units, 25,000 units were completed and transferred to the next department, and 25,000 units were 35% complete. Premium Foods's costs per equivalent unit of production are $0.96 for direct materials and $0.70 for conversion costs. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the process and the company uses the weighted-average method.Calculate the cost of the 25,000 units completed and transferred out and the 25,000 units, 35% complete, in the ending Work-in-Process Inventory.
Answer:
Explanation:
The computation of the cost of 25,000 units completed and transferred out is shown below;
( in $)
Costs Direct materials Conversion costs Total costs
Cost accounted for
completed
and transferred
out 24,000 17,500 41,500
(25,000 × $0.96) (25,000 × $0.70)
Ending
work in
process 24,000 6,125 30,125
(25,000 × $0.96) (25,000 × $0.96 × 35%)
Total cost
accounted for 48,000 23,625 71,625
Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the questions. Round answers to two places after the decimal where applicable. Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 4.60 . Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 67 %.
Abe must have_________ prices. Therefore, Abe's total revenue ____________ Abe's prices must have changed by:________%
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%.
If Webs-R-Us has a price elasticity of demand at 0.70, we can expected the number of websites designed to ___________
Answer:
increased
fell
14.57%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Honest Abe's Used Cars has an elastic demand because its coefficient of elasticity is greater than one. Because demand is elastic, a rise in price would lead to a decrease in the number of cars sold. If price is increased, demand would fall more than the change in price, so total revenue would fall.
4.6 = 0.67 / percentage change in price
Percentage change in price = 0.67 / 4.6 = 0.1457 = 14.57%
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Webs-R-Us services has an inelastic demand.
If prices are increased, demand would fall but it would fall less than the increase in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales $660,000
Direct labor cost $81,000
Raw material purchases $140,000
Selling expenses $103,000
Administrative expenses $43,000
Manufacturing overhead applied to work in process $201,000
Actual manufacturing overhead costs $225,000
Inventories Beginning of Year End of Year
Raw materials $8,500 $10,500
Work in process $6,000 $21,000
Finished goods $79,000 $25,600
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.
Answer:
See below
Explanation:
a. Schedule of cost of goods manufactured.
Opening raw materials $8,500
Add raw material purchases $140,000
Less ending raw materials $10,500
Direct material used $138,000
Direct labor cost $81,000
Manufacturing overhead applied to work in process $201,000
Total manufacturing costs $420,000
Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows.
Rent for the month: $1,300
Monthly take-home salary: $2,835
Spending for food: $670
Cash in checking account: $580
Savings account balance: $2,020
Balance of educational loan: $2,940
Current value of automobile: $9,650
Telephone bill paid for month: $130
Credit card balance: $300
Loan payment: $210
Auto insurance: $360
Household possessions: $4,700
Video equipment: $2,675
Payment for electricity: $155
Lunches/parking at work: $245
Donations: $290
Personal computer: $1,850
Value of stock investment: $1,185
Clothing purchase: $175
Restaurant spending: $195
Answer:
Follows are the solution to this question:
[tex]\text{Total liabilities}= \$3,240\\\\\text{Net worth}=\$19,420\\\\\text{Total cash outflows}= \$3,730\\\\[/tex]
Explanation:
Calculating the values:
[tex]\text{Total assets} = \$22,660 (580 + 2,020 + 9,650+ 2,675+ 1,850+ 4,700 + 1185) \\\\\text{Total liabilities} = \$3,240 (300 + 2,940) \\\\\text{Net worth} = \$19,420 (\$22,660 - \$3,240) \\\\\text{Total cash inflows} = \$3,730\\\\\text{Total cash outflows} = \$3,730 (1300+ 670+ 360+ 245+ 175+ 130+ 210 + 155+ 290 + 195)[/tex]