Answer:
9.6%
Explanation:
According to the problem, calculation are as follows,
Company borrowed on March 1 = $1,112,250
First we calculate total expenditures in constructing a building.
Total Expense = ($1,836,000 × 10÷12)+ ($1,236,000 × 7÷12)+ ($3,038,370 × 0÷12)
= $1,530,000 + $721,000 + 0
= $2,251,000
So, Difference in both amount = $2,251,000 - $1,112,250 = $1,138,750
We can calculate the weighted average interest rate by using following formula,
Weighted average interest rate = Interest ÷ outstanding principal
Where, Outstanding principal = $2,342,100 + $3,467,800 = $5,809,900
Interest = $2,342,100 × 9% + $3,467,800 × 10%
= $210,789 + $346,780 = $557,569
So, by putting the value in formula, we get,
Weighted average interest rate = $557,569 ÷ $5,809,900
= 0.096 or 9.6%
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated inventory
Answer:
$173,000
Explanation:
The computation of the total consolidated inventory is shown below:
But before that following calculations need to be done
Percentage profits that Alpha charge to other customers is
= ($800,000 - $600,000) ÷ $800,000
= 25% of sales
Stock held at year end is
= $100,000 × 40%
= $40,000
Profit involved in stock is
= $40,000 × 25%
= $10,000
Now the stock of beta is
= $88,000 - $10,000
= $78,000
And finally, the Total for consolidated inventory is
= $95,000 + $78,000
= $173,000
Cherry Valley Lumber's (CVL) lumber mill produces boards of various sizes and quality specifications for the home construction industry. CVL incurs joint costs in the initial phases of processing raw timber, such as transporting the logs to the mill, removing the bark from the logs, and cutting rough-cut boards. After the split-off point, CVL incurs costs in the Planing Department to finalize the finished boards of various grades and sizes. Which of the following statements regarding the costs at CVL is true?
a. The costs to finish the boards after the split-off point will not be traced directly to the finished boards according to the various grades and sizes produced. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will be traced to the final finished boards.
b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.
c. It will be impossible for CVL to directly trace any costs to the finished boards of various grades and sizes.
d. CVL will be able to directly trace all costs before and after the split-off point to the finished boards of various grades and sizes.
Answer:
Cherry Valley Lumber's (CVL)
The statement regarding the costs at CVL that is true is:
b. The costs for transporting the logs, removing bark, and cutting the rough-cut boards before the split-off point will not be directly traced to the final finished boards. All costs to finish the boards after the split-off point will be traced directly to the finished boards according to the various grades and sizes produced.
Explanation:
This is why the costs at split-off are usually apportioned to the different categories of products based on some chosen criteria, e.g. sales value, size, etc. However, after split-off, costs that are incurred can easily be traced to the various grades and sizes of boards produced. This simply means that after split-off, costs become traceable and direct to each board category.
A portfolio manager plans to use a Treasury bond futures contract to hedge a bond portfolio over the next three months. The portfolio is worth $100 million and will have a duration of 5.6 years in three months. The futures price is 112, and each futures contract is on $100,000 of bonds. The bond that is expected to be cheapest to deliver will have a duration of 9.0 years at the maturity of the futures contract. What position in futures contracts is required
Answer: 556
Explanation:
The position in futures contracts that is required will be calculated thus:
= (100,000,000 × 5.6) / (112,000 × 9)
= 560,000,000 / 1,008,000
= 555.5
= 556 approximately
Therefore, based on the calculation, the answer is 556.
Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher? The outlook for the economy and the markets is for a downturn. The outlook for the economy and the markets is for an improvement.
Answer:
The outlook for the economy and the markets is for an improvement.
Explanation:
p/e ratio = price / earning
the higher the equity, the lower the ratio
If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .
this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook
Thermopolis, Inc. reported retained earnings of $490,953 on December 31, 2017. During the year, Thermopolis recorded net income of $135,075 and paid dividends of $57,762. The company had no other transactions that affected retained earnings. What must retained earnings have been on December 31, 2016
Answer:
the Opening retained earning balance is $413,640
Explanation:
The computation of the retained earnings have been on December 31, 2016 is shown below:
As we know that
Ending retained earning balance = Opening retained earning balance + net income - dividend paid
$490,953 = Opening retained earning balance + $135,075 - $57,762
$490,953 = Opening retained earning balance + $77,313
So, the Opening retained earning balance is $413,640
What is the main goal of career and technical student organizations (CTSOs)? How do they help students achieve their goals?
Answer:
This is a two part question and therefore has been answered in two separate headings below.
Explanation:
Main Goal of CTSOs
Career and technical student organizations (CTSOs) goal is to strengthen student learning by using methods such as real-life applications, text book instructions, personal and leadership development skills.
This means that their work forms as an essential part of the classroom syllabus and guide, which in return helps to build student's career skills and views through taking part in these sessions and applying them in real life scenarios and/or work experience through Career program.
Help Students to Achieve their Goals
Career and technical student organizations (CTSOs) helps students achieve their goals by providing them a career path, study program and opportunities in order to gain the knowledge, skills and abilities that are needed to be successful in their career by way of CTSOs programs, events and activities.
Furthermore, they create opportunities for the students to participate in leadership level positions at local, state and national level and to take part in conferences of leadership development in order to interact with other students as wells as professionals and experienced individuals.
Answer:
The guy above is correct
Explanation:
Have a nice day man, be safe.
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month. rev: 09_23_2020_QC_CS-230013a. If LaMont receives one pass (worth $290) each month, how much of this benefit must he include in his gross income each year
Answer:
The IRS sets the limit on transportation benefits provided by an employer, for 2021, this limit is $270 per month, or $3,240 per year.
The total benefit received by LaMont should = 12 x $290 = $3,480
This means that he must include $3,480 - $3,240 = $240 as part of his annual gross income.
Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $385,000 per month. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Monthly Output Gasoline $ 27.00 per gallon 14,400 gallons Heating Oil $ 21.00 per gallon 22,400 gallons Jet Fuel $ 33.00 per gallon 5,600 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price Gasoline $ 89,220 $ 32.80 per gallon Heating Oil $ 129,170 $ 27.80 per gallon Jet Fuel $ 60,160 $ 41.80 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point
Answer:
Molo Oil Company
The financial advantage of further processing of each of the three products beyond the split-off point is:
= $182,430
(which is the additional profit gained from the further processing).
Explanation:
Joint processing costs = $385,000 per month
Product Selling Price Monthly Output Sales Value
Gasoline $ 27.00 per gallon 14,400 gallons $388,800 ($27*14,100)
Heating Oil $ 21.00 per gallon 22,400 gallons 470,400 ($21*22,400)
Jet Fuel $ 33.00 per gallon 5,600 gallons 184,800 ($33*5,600)
Total sales value = $1,044,000
Joint costs = 385,000
Profit = $659,000
Allocation of joint processing costs of $385,000
Gasoline = $143,379 ($388,800/$1,044,000 * $385,000)
Heating Oil 173,471 ($470,400/$1,044,000 * $385,000)
Jet Fuel 68,150 ($184,800/$1,044,000 * $385,000)
Total cost $385,000
Total costs:
Additional
Joint Cost Monthly Cost Total Costs
Gasoline $143,379 $29,740 $173,119
Heating Oil 173,471 43,057 216,528
Jet Fuel 68,150 20,053 88,203
Total costs $385,000 $92,850 $477,850
Product Additional Processing Selling Price
Costs (per quarter)
Gasoline $ 89,220 $ 32.80 per gallon
Heating Oil $ 129,170 $ 27.80 per gallon
Jet Fuel $ 60,160 $ 41.80 per gallon
Product Additional Processing Selling Price
Costs (per month)
Gasoline $ 29,740 $ 32.80 per gallon
Heating Oil $ 43,057 $ 27.80 per gallon
Jet Fuel $ 20,053 $ 41.80 per gallon
Determination of profit after further processing:
Product Selling Price Monthly Output Sales Value
Gasoline $ 32.80 per gallon 14,400 gallons $462,480 ($32.80*14,100)
Heating Oil $ 27.80 per gallon 22,400 gallons 622,720 $27.80*22,400)
Jet Fuel $ 41.80 per gallon 5,600 gallons 234,080 ($41.80*5,600)
Total sales revenue = $1,319,280
Total costs = 477,850
Profit = $841,430
Financial advantage
Profit after further processing = $841,430
Profit with Joint processing = 659,000
Financial advantage = $182,430
Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Pelzer Corporation, FOB, shipping point, and $22,000 of goods sold to Alvarez Company for $30,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end.
What amount should Stallman report as its December 31 inventory?
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there are 360 units on hand, compute the cost of the ending inventory under the (a) FIFO method and (b) LIFO method. Bethke uses a periodic inventory system.
A) Cost of the ending inventory LIFO.
B) Cost of the ending inventory.
Answer:
1. $247,00
A. $2,720
B.$2,220
Explanation:
1. Calculation to determine What amount should Stallman report as its December 31 inventory
Using this formula
December 31 Ending inventory = Inventory count as per physical count + Inventory in transit FOB Shipping point + Inventory in transit FOB destination
Let plug in the formula
December 31 Ending inventory= $200,000 + $25,000+ $22,000
December 31 Ending inventory= $247,000
Therefore What amount should Stallman report as its December 31 inventory is $247,000
A) Calculation to determine the Cost of the ending inventory FIFO.
Cost of ending inventory = (200 units * $8) +(360 units- 200 units * $7)
Cost of ending inventory = (200 units * $8) + (160 units * $7)
Cost of ending inventory= $1,600 + $1,120
Cost of ending inventory= $2,720
Therefore The Cost of ending inventory is $2,720
(b) Calculation to determine The cost of ending inventory under the LIFO method
Cost of ending inventory = (300 units * $6) +(360 units -300 units* $ 7)
Cost of ending inventory = (300 units * $6) + (60 units * $ 7)
Cost of ending inventory = $1,800 + $420
Cost of ending inventory = $2,220
Therefore The cost of ending inventory under the LIFO method will be $2,220
Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adjusted basis was $20,000 and its fair market value was $18,000. The adjusted basis after the fire is $10,000 and the fair market value after the casualty is $10,000. How much is the casualty loss
Answer:
the casualty loss is $8,000
Explanation:
The computation of the casualty loss is given below:
Lower of
= Adjusted basis or decline in FMV
= $10,000 or ($18,000 - $10,000)
= $10,000 or $8,000
= $8,000
hence, the casualty loss is $8,000
The same would be considered and relevant
The other values would be ignored
During 2018, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2017, allowance for doutbful accounts was $40,000. What is the appropriate year-end adjusting entry Jacobson must use to record bad debts expense and update the allowance for doubtful accounts on December 31, 2018
Answer: Debit: Bad debt expense $21400
Credit: Allowance for doubtful debt $21400
Explanation:
Based on the information given, the bad debt expense will be:
= 49400- (40000-18000+6000)]
= 49400 - 28000
= 21,400
The bad debt expenses of $21400 will be debited
The Allowance for doubtful Accounts of $21400 will be credited.
(To record bad debts expense)
Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $16,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $11,100 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows:
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600
1. If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product P?
a. $163.50
b. $144.00
c. $138.15
d. $117.15
2. If Smelly changes its overhead allocation to departmental rates, what is the product cost per case for Product P assuming Departments C and D use direct labor hours and machine hours as their respective allocation bases?
a. $117.15
b. $163.50
c. $131.50
d. $138.15
Answer:
Smelly Perfume Company
1. a. $117.15
2. $115.95
Explanation:
a) Data and Calculations:
J P X Total
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Direct labor hours per unit 4 3 2
Total direct labor hours 1,200 1,500 1,200 3,900
Machine hours per unit 4 2 3
Total machine hours 1,200 1,000 1,800 4,000
Number of cases (per year) 300 500 600
Department C D Total
Traceable overheads $16,200 $11,100 $27,300
Product costs (machine hours):
Predetermined overhead rate based on machine hours = $6.825 ($27,200/4,000) per machine hour
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead (machine hour) 27.30 13.65 20.48
$169.30 $117.15 $80.48
Product costs (departmental overhead rates):
Departmental overhead rates per hour:
Department C $4.15 ($16,200/3,900) per labor hour
Department D $2.78 ($11,100/4,000) per machine hour
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 16.60 12.45 8.34
$158.60 $115.95 $68.34
Exercise 8-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building. Land is appraised at $247,500; land improvements are appraised at $55,000; and the building is appraised at $247,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer:
1. Land $175,324.50
Land improvements $38,961
Building $175,324.50
2. Dr Land $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Land
Dr Land improvements $38,961
Cr Cash $38,961
Being entries to recognize cost incurred in the purchase of Land improvements
Dr Building $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Building
Explanation:
Using the appraisal method to apportion the cost of an asset to the components of the asset involves the consideration of the appraised cost of each individual item as a portion of the total cost of the asset.
Thus, given that Rodriguez Company pays $389,610 for real estate with land, land improvements, and a building
Appraised cost of
Land = $247,500
Land improvements = $55,000
Building = $247,500
Total appraised cost of the asset = $247,500 +$55,000 + $247,500
= $550,000
Allocated cost of;
Land = $247,500/$550,000 * $389,610
= $175,324.50
Land improvements = $55,000/$550,000 * $389,610
= $38,961.00
Building = $247,500/$550,000 * $389,610
= $175,324.50
Journal entries
Dr Land $175,324.50
Cr Cash $175,324.50
Being entries to recognize cost incurred in the purchase of Land
For journal entries, we debit each of the individual assets account and credit cash to recognize the cost incurred in the purchase of the asset.
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances
Answer:
a. Interest Deductible = $31,100
b. Interest Deductible = $28,900
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
This year Randy paid $28,900 of interest on his residence. (Randy borrowed $462,000 to buy his residence, and it is currently worth $512,000.) Randy also paid $2,800 of interest on his car loan and $4,650 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances?
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Interest Deductible $.......
b. Randy had no investment income this year, and his AGI is $75,000.
Interest Deducttible $.......
The explanation of the anwer is now given as follows:
a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.
Randy may choose to deduct the interest of $28,900 on his residence as an itemized deduction.
The $2,800 of interest on his car loan is a nondeductible personal interest.
The $2,200 interest income received can be regarded as an investment income.
The $4,500 margin interest to his stockbroke is likely investment interest. But since Randy has only $2,200 interest income, his deduction is limited to the $2,200.
Therefore, we have:
Interest Deductible = Interest on his residence + $2,200 = $28,900 + $2,200 = $31,100
b. Randy had no investment income this year, and his AGI is $75,000.
Since there is no investment income, Randy can only dedcut the interest of $28,900 on his residence based on the explanation in part a above.
Therefore, we have:
Interest Deductible = $28,900
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable production cost is $5.00 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.
Required:
A. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.
B. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
2) Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500.
Required:
A. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
B. Determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2).
Answer:
A. Differential Analysis dated March 16
Reject Accept
Sales revenue per unit $0 $7.20
Variable production cost 0 5.00
Additional export tariff 0 1.08
Total variable costs 0 $6.08
Net income $0 $1.12
B. The special order should be accepted.
2) Product B:
Revenue of $39,500
Variable cost of goods sold of $25,500
Variable selling expenses of $16,500
Fixed costs of $15,000
Operational loss $17,500
Differential Analysis of May 9
Reject Accept
Sales revenue $0 $39,500
Variable costs:
Product $0 25,500
Selling $0 16,500
Fixed costs $15,000 15,000
Total costs $15,000 $57,000
Net loss $15,000 $17,500
B) Product B should be discontinued.
Explanation:
a) Data and Calculations:
Normal selling price per unit of Product A = $9.60
Special order price for the export market = $7.20
Variable production cost = $5.00 per unit
Additional export tariff = $1.08 ($7.20 * 15%)
Total variable production and export costs = $6.08
Farm products which are perishable and seasonal nature are supplied by
Answer:
★ Farm products which are perishable and seasonal nature are supplied by many producers.
Explanation:
Hope you have a great day :)
What is strategic relationship management?
O A. Avoiding conflicts between direct stakeholders and indirect
stakeholders
O B. Building and maintaining ongoing contact between parties that is
beneficial to both
O C. Managing change processes to achieve strategic growth for a
profit-seeking organization
O D. Ending relationships between parties that have conflicting needs
and interests
Answer:
its B
Explanation:
Direct material budget. Inglenook Co. produces wine. The company expects to produce 2,500,000 two-liter bottles of Chablis in 2015. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 50,000. For simplicity, ignore breakage. Compute the number of bottles to be purchased in 2015.
Answer:
2,530,000 bottles
Explanation:
Regarding the above information, we will compute the number of bottles to be purchased in 2015 as seen below
Purchase in units = Usage + Desired ending material inventory units - Beginning inventory units
Purchase in units = 2,500,000 + 80,000 - 50,000
Purchase in units = 2,530,000
Therefore, the number of bottles to be purchases in 2015 is 2,530,000
In 3 sentences. Why are open-ended questions helpful when landing a sale? (this is for customer service)
Answer:
By using open-ended questions, participants are able to express and articulate opinions that may be extreme, unusual, or simply ones that the researcher did not think about when creating the survey. This often provides researchers rich, relevant data for their studies
Explanation:
(hope this helps)
what is the meaning of marketing
Answer:
Marketing is a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others.
Motorcycle Manufacturers, Inc. projected sales of 51,100 machines for the year. The estimated January 1 inventory is 6,460 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year
Answer:
51,770 units
Explanation:
With regards to the above, the budgeted production (in unit) for the year is computed as;
= Sales - Beginning inventory + Ending inventory
Given that ;
Sales = 51,100
Beginning inventory = 6,460
Ending inventory = 7,130
Budgeted production in units for the year = 51,100 - 6,460 + 7,130 = 51,770 units
Clinicke Inc. sells merchandise of $800,000 in 2020 that includes a two-year limited warranty against manufacturing defects as part of the selling price. Warranty costs are estimated to be 1% of sales. If the company incurred $2,200 of actual costs in responding to warranty claims in 2020 (related to 2020 sales), how much should Clinicke record in warranty expense for 2020
Answer:
the amount recorded in the warranty expense is $8,000
Explanation:
The computation of the amount recorded in the warranty expense is shown below:
= Sale value of merchandise inventory × estimated percentage
= $800,000 × 1%
= $8,000
hence, the amount recorded in the warranty expense is $8,000
So the above formula should be applied
. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.
Question Completion:
Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 38,500 October 28,500 August 87,000 November 15,000 September 56,000 December 15,500 The selling price of the beach umbrellas is $14 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $504,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June 30 91,550 feet September 30 ? feet Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $49,290. Required: 1.
Answer:
Milo Company
July Aug. Sept. Total
1. Estimated sales $539,000 $1,218,000 $784,000 $2,541,000
2. Cash collections $489,300 $715,750 $1,026,900 $2,231,950
July Aug. Sept. Oct.
3. Production units 45,775 72,350 51,875 26,475
July Aug. Sept. Total
4. Quantity of Gilden (feet) 236,250 248,450 156,700 641,400
5. Cost of Purchases $141,750 $149,070 $94,020 $384,840
6. Cash disbursements for raw
material purchases $120,165 $145,410 $121,545 $387,120
Explanation:
a) Data and Calculations:
Selling price of the beach umbrellas = $14 per unit
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 38,500 87,000 56,000 28,500 15,000 15,500
Sales $504,000 539,000 1,218,000 784,000 399,000 210,000 217,000
Sales Collection:
June July Aug. Sept. Total
Sales on credit 539,000 1,218,000 784,000 $2,541,000
Sales Collection:
30% month of sale 161,700 365,400 235,200 762,300
65% month following 327,600 350,350 791,700 1,469,650
5% uncollectible
Total collections $489,300 $715,750 $1,026,900 $2,231,950
July August September October
Beginning Inventory $75,600 $80,850 $182,700 $117,600
Ending Inventory 80,850 182,700 117,600 59,850
Sales 539,000 1,218,000 784,000 399,000
Finished Goods Inventory:
June July Aug. Sept. Oct. Nov. Dec.
Estimated
sales 36,000 38,500 87,000 56,000 28,500 15,000 15,500
Ending 5,775 13,050 8,400 4,275 2,250
Available 41,775 51,550 85,400 60,275 30,750
Beginning 5,400 5,775 13,050 8,400 4,275
Production 36,375 45,775 72,350 51,875 26,475
Raw materials inventory:
June July Aug. Sept. Oct.
Production units 36,375 45,775 72,350 51,875 26,475
Production needs 145,500 183,100 289,400 207,500 105,900
Ending inventory 91,550 144,700 103,750 52,950
Available materials 237,050 327,800 393,150 260,450
Beginning inventory 91,550 144,700 103,750 52,950
Purchases 236,250 248,450 156,700
Cost of Purchases $141,750 $149,070 $94,020
Payment for purchases:
Accounts payable $49,290
50% month of purchase 70,875 74,535 47,010
50% following purchase 70,875 74,535
Total payments $120,165 $145,410 $121,545
Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs PoolCost DriverOverhead Cost Budgeted Level for Cost Driver Quality controlNumber of inspections$77,000 1,100 Machine operationMachine hours 153,000 1,500 Materials handlingNumber of batches 1,200 30 Miscellaneous overhead costDirect labor hours 57,000 5,700 Sheen Co. has an order for 1,000 laser printers that has the following production requirements: Number of inspections295 Machine hours240 Number of batches6 Direct labor hours770 Using activity-based costing, applied machine operation overhead for the 1,000 laser printers order is: Multiple Choice
Answer:
Total allocated costs= $53,070
Explanation:
First, we need to calculate the allocation rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Quality control= 77,000 / 1,100 = $70 per inspection
Machine operation= 153,000 / 1,500 = $102 per machine hour
Materials handling= 1,200 / 30 = $40 per batch
Miscellaneous overhead cost= 57,000 / 5,700= $10 per labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Quality control= 70*295= 20,650
Machine operation= 102*240= 24,480
Materials handling= 40*6= 240
Miscellaneous overhead cost= 10*770= 7,700
Total allocated costs= $53,070
The real interest rate earned is the Group of answer choices same as the nominal interest rate when inflation is moderate cost of borrowing in current consumer prices cost of borrowing in current producer prices cost of borrowing adjust for the rate of change in the price level nominal interest rate adjusted for the growth rate of the economy
Answer:
cost of borrowing adjust for the rate of change in the price level
Explanation:
The real interest rate earned is the rate where the borrowing cost would be adjusted for the change in the rate in the level of the price as the real interest rate represent the interest rate that should be adjusted to the inflation
Hence, according to the given options, second option is correct
hence, the same would be relevant
Do airlines practice price discrimination LOADING... ? Explain. Airlines A. engage in price discrimination by charging business travelers and leisure travelers different prices . B. do not engage in price discrimination because they charge lower prices to passengers who will stay at their destination over a Saturday night. C. engage in price discrimination by maintaining the same price on seats even if seats will not be sold . D. do not engage in price discrimination because the marginal cost of flying one additional passenger is low . E. do not engage in price discrimination because their passengers have similar demands.
Answer:
A. engage in price discrimination by charging business travelers and leisure travelers different prices.
Explanation:
Yes, airlines practice price discrimination. They engage in price discrimination by charging business travelers and leisure travelers different prices for the same distance travelled.
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
Price discrimination refers to the situation in which a business firm sells an identical product to different consumers at different selling price based on reasons that are not in any way associated or related with its manufacturing cost.
Core Corporation reported current earnings and profits of $250,000. Core distributed a building with an adjusted basis of $170,000 and a fair market value of $230,000 to its sole shareholder. The building had a mortgage of $90,000, which the shareholder will assume. What is the amount of the dividend received by the shareholder?
A. $80,000.
B. $140,000.
C. $230,000.
D. $250,000.
Answer:
B. $140,000
Explanation:
The total cost of acquiring an asset, including the installation, commission, transportation and other relevant fees is known as adjusted basis. The fair market value is the value an asset would yield when sold. It is an amount that would be received in return when an asset is sold.
Therefore, the shareholders would receive dividend at the fair market value adjusted for the mortgage balance
= $230,000 - $90,000
= $140,000
Explain how art sellers use the 4 P's of marketing to promote expensive art to the desired patrons. Then, consider: Do you think it makes sense to view art as a product and promote it using the marketing mix? How is it similar to other products? On the other hand, what makes art different or "special" in comparison to the products we usually buy in a store?
Explanation:
Yes, the art market can benefit from the use of the marketing mix, since the 4p's of marketing, which are the product, price, place and promotion, will directly influence the positioning of a product in the market and consequently increase sales.
In the case of works of art, the marketing mix helps to align marketing strategies to reach the potential audience that consumes art. It can then be considered that the arts make up a specific type of market niche, which has consumers willing to pay certain prices according to the artist, the rarity of the artwork, the time, etc. Therefore, the marketing mix works as a strategic set that will help art sellers to position their product with their consumers and thus achieve the final goal of making sales.
Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm?
Answer:
See explanation
Explanation:
The free cash flows value relevant to common equity shareholders because they consists of cash that can be distributed to shareholders as dividends. In other words this is Distributable Cash.
business environment
Answer:
what?
Explanation:
Answer:
I'm sorry is this a question? If so, the only thing I can answer is.. the Market environment which is basicly a business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships.
Explanation:
sorry if its not what you asked