Answer:
Ending Work In Process Cost = $43,120
Units Transferred out Cost = $433,500
Explanation:
Step 1 : Equivalent units calculation
Materials
Ending Work in Process = 4,400 x 100% = 4,400 units
Conversion
Ending Work in Process = 4,400 x 40% = 1,760 units
Step 2 : Total Costs assigned to Ending Work In Process
Ending Work In Process Cost = Materials + Conversion Costs
= 4,400 x $5 + 1,760 x $12
= $43,120
Step 3 : Total Cost of Units Transferred out
Units Transferred out = Total Unit Cost x Units transferred
= $17.00 x 25,500
= $433,500
Purchase Transactions and T AccountsUsing T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Post the transactions in the given order.
Purchase of merchandise with cash.
a. Merchandise is purchased for cash, $1,500.
b. Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash.
Answer:
Dr Cash a/c Cr
Purchases(a) $1,500
Purchases(b) $2,975
Dr Purchases a/c Cr
Cash(a) $1,500
Cash(b) $2,975
The above are the entries in the Cash and Purchases accounts.
The purchases are credited to the cash account and debited to the purchases.
b. Merchandise = 3,500 * ( 1 - 15% discount)
= $2,975
Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.
Answer:
Date Account Title Debit Credit
Dec. 31 2020 Bad Debt expense $31,880
Allowance for Doubtful Accounts $31,880
Explanation:
Bad debt expense for the period:
= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance
= (348,200 * 10%) - 2,940
= $31,880
The failure rate for each component of a 2-component series system is assumed to be one failure per 1,000 hours of operation, and the switch reliability of replacing a failed component with a spare one is 1.0. Given that there is a spare component, a. Calculate the reliability of the system for a period of 1,000 hours assuming no other failure is possible. b. Determine the approximate MTBF of the system. c. What is the system MTBF without the spare component
Answer:
a. The reliability of the system for a period of 1,000 hours, assuming no other failure is possible is:
= 99.9%.
b. The approximate MTBF (Mean Time Between Failures) without the spare component is:
1,000 hours.
Explanation:
a) Data and Calculations;
Failure rate of each component of a 2-component series system = 1/1,000 = 0.001
Therefore, the reliability rate = 1 - 0.001 = 0.999 = 99.9%
The switch reliability of replacing a failed component with a spare one = 1.0
The system's reliability = Mean Time Between Failure (MTBF) minus the Mean Time to Repair (MTTR)
= 1,000 - 1.0 = 999 hours out of 1,000
b)The equipment's Mean time between failures (MTBF) is the average time it takes the equipment or system to suffer a breakdown. Engineers, vendors, and system analysts use the MTBF metric to measure an equipment's performance, safety, and design reliability.
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
All details related to an employee's earnings deductions and net pay throughout the year would be found in
Answer:
All details related to an employee's earnings deductions and net pay throughout the year would be found in the individual earnings record.
Explanation:
A random Quizlet had the answer when I searched the question up lol
The following events apply to Guiltf Seafood for the 2018 fiscal year:
a. The company started when it acquired $39,000 cash by issuing common stock.
b. Purchased a new cooktop that cost $15,400 cash.
c. Earned $23,900 in cash revenue.
d. Paid $14,000 cash for salaries expense.
e. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of five years and an estimated salvage value of $3,200. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1.
Required:
Record the above transactions in a horizontal statements model.
Answer:
Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460
Explanation:
Note: See the attached excel file for the horizontal statements model.
In the attached excel file, we have:
Accumulated depreciation = (Cost of cooktop or equipment - Estimated salvage value) / Expected useful life = ($39,000 - $3,200) / 5 = $2,440
From the attached excel file, the accounting equation can be proved from the balances as follows:
Cash + Equipment - Accumulated depreciation = $33,500 + 15,400 - $2,440 = $46,460
Common stock + Retained = $39,000 + $7,460 = $46,460
Therefore, we have:
Cash + Equipment - Accumulated depreciation = Common stock + Retained = $46,460
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:
Data Year 2 Quarter Year 3 Quarter
1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Selling price per unit $7
Accounts receivable,
beginning balance $65,000
Sales collected in the
quarter sales are made 75%
Sales collected in the quarter
after sales are made 25%
Desired ending finished
goods inventory is 30% of the
budgeted unit sales
of the next quarter
Finished goods
inventory, beginning 12,000 units
Raw materials required
to produce one unit 5 pounds
Desired ending inventory
of raw materials is 10% of the next
quarter's production
needs
Raw materials
inventory, beginning 23,000 pounds
Raw material costs $0.80 per pound
Raw materials
purchases are paid 60% in the quarter the
purchases are made and
40% in the quarter
following purchase
Accounts payable for
raw materials, beginning
balance $81,500
A. What are the total expected cash collections for the year under this revised budget?
B. What is the total required production for the year under this revised budget?
C. What is the total cost of raw materials to be purchased for the year under this revised budget?
D. What are the total expected cash disbursements for raw materials for the year under this revised budget?
E. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?
Answer:
Year 2
A. Total expected cash collections $2,077,500
B. Total required production 312,000 units
C. Total cost of raw materials to be
purchased for the year $1,262,800
D. Total expected cash disbursements for raw materials = $1,220,860
E. There is a potential problem in quarter 3. This can be resolved by producing more units in the previous quarters.
Explanation:
a) Data and Calculations:
Old selling price per unit = $8
New selling price per unit = $7
Year 2 Year 3
Quarter Quarter
1 2 3 4 1 2
Budgeted
unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Sales $315,000 $490,000 $840,000 $525,000 $560,000 $630,000
Accounts receivable, beginning balance = $65,000
Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter
Finished goods inventory, beginning = 12,000 units
Raw materials required to produce one unit = 5 pounds
Desired ending inventory of raw materials = 10% of the next quarter's production needs
Raw materials inventory, beginning = 23,000 pounds
Raw material costs $0.80 per pound
Raw materials payments:
60% in the quarter purchases are made
40% in the quarter following purchase
Accounts payable for raw materials, beginning balance = $81,500
1 2 3 4 Total
Cash collections
Sales collected:
75% in the quarter $236,250 $367,500 $367,500 $630,000 $1,601,250
25% second quarter 65,000 78,750 122,500 210,000 476,250
Total collections $301,250 $446,250 $490,000 $840,000$2,077,500
Production budget:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1 2
Budgeted unit sales 45,000 70,000 120,000 75,000 80,000 90,000
Ending inventory 21,000 36,000 22,500 24,000 27,000
Goods available 66,000 106,000 142,500 99,000 107,000
Beginning inventory 12,000 21,000 36,000 22,500 24,000
Production units 44,000 85,000 106,500 76,500 83,000
Total production units for the year = 312,000 units
(44,000 + 85,000 + 106,500 + 76,500)
Purchase of raw materials:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1
Production units 44,000 85,000 106,500 76,500 83,000
Ending inventory 42,500 53,250 38,250 41,500
Raw materials needs 220,000 425,000 532,500 382,500 415,000
Raw materials available 262,500 478,250 570,750 424,000
Beginning inventory 23,000 42,500 53,250 38,250 41,500
Purchases 239,500 435,750 517,500 385,750
Purchase costs $191,600 $348,600 $414,000 $308,600
Total purchases = $1,262,800
Cash Disbursements for raw materials:
Year 2 Year 3
Quarter Quarter
1 2 3 4 1
60% in the quarter $114,960 $209,160 $248,400 $185,160
40% in the ffg quarter 81,500 76,640 139,440 165,600
Total disbursements $196,460 $285,800 $387,840 $350,760
Total expected cash disbursements for raw materials = $1,220,860
Decision Case F:2-1 Your friend, Dean McChesney, requested that you advise him on the effects that certain transactions will have on his business, A-Plus Travel Planners. Time is short, so you cannot journalize the transactions. Instead, you must analyze the transactions without a journal. McChesney will continue the business only if he can expect to earn a monthly net income of $6,000. The business completed the following transactions during June:
A. McChesney deposited $10,000 cash in a business bank account to start the compan The company issued common stock to McChesney.
B. Paid $300 cash for office supplies.
C. Incurred advertising expense on account, $700.
D. Paid the following cash expenses: administrative assistant's salary, $1,400: office tent, $1,000.
E. Earned service revenue on account, $8,800.
F. Collected cash from customers on account, $1,200.
Answer:
A-Plus Travel Planners
Analysis of transactions:
A. Cash $10,000 (Increase Assets) Common Stock $10,000 (Increase Equity)
B. Office Supplies $300 (Decrease Profit) Cash $300 (Decrease Assets)
C. Advertising expense $700 (Decrease Profit) Cash $700 (Decrease Assets)
D. Salary expense $1,400 (Decrease Profit) Rent Expense $1,000 (Decrease Profit) Cash $2,400 (Decrease Assets)
E. Accounts Receivable $8,800 (Increase Assets) Service Revenue $8,800 (Increase Profit)
F. Cash $1,200 (Increase Assets) Accounts Receivable $1,200 (Decrease Assets)
Explanation:
a) Data and Calculations:
Expected net income = $6,000
Service Revenue $8,800
Expenses:
Office Supplies $300
Advertising 700
Admin. Salary 1,400
Rent 1,000 $3,400
Net income $5,400
Expected profit 6,000
Required improvement $600
b) To achieve profit target of $6,000 under the current revenue profile, A-Plus Travel Planners must decrease expenses by at least $600. Alternatively, it can increase its revenue by the same amount, while maintaining its costs at current level.
Chavoy Corporation was organized on July 1. The company's charter authorizes 100,000 shares of $10 par value common stock. On August 1, the attorney who helped organize the corporation accepted 800 shares of Chavoy common stock in settlement for the services provided (the services were valued at $9,600). On August 15, Chavoy issued 5,000 common shares for $78,000 cash. On October 15, Chavoy issued 3,000 common shares to acquire a vacant land site appraised at $51,000. Prepare the journal entries to record the stock issuances on August 1, August 15, and October 15.
Answer:
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
Cr Paid Capital $1,600
August 15
Dr Cash $78,000
Cr Common stock $50,000
Cr Paid in Capital $28,000
October 15
Dr Land $51,000
Cr Common stock $30,000
Cr Paid in Capital $21,000
Explanation:
Preparation of the journal entries to record the stock issuances on August 1, August 15, and October 15.
August 1
Dr Legal Expense $9,600
Cr Common stock $8,000
(800 shares*$10 par value)
Cr Paid Capital $1,600
($9,600-$8,000)
(To record stock issuances)
August 15
Dr Cash $78,000
Cr Common stock $50,000
(5,000shares*$10 par value)
Cr Paid in Capital $28,000
($78,000-$50,000)
(To record stock issuances)
October 15
Dr Land $51,000
Cr Common stock $30,000
(3,000shares*$10 par value)
Cr Paid in Capital $21,000
($51,000-$30,000)
(To record stock issuances)
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. Five units of raw material are required to produce each unit of finished product. January 1 December 31 Raw material 42,000 49,000 Work in process 19,000 19,000 Finished goods 92,000 75,000 Required: 1. If Bodin Company plans to sell 476,000 units during the year, compute the number of units the firm would have to manufacture during the year. 2. If 508,000 finished units were to be manufactured by Bodin Company during the year, determine the amount of raw material to be purchased.
Answer and Explanation:
The computation is shown below:
1. The number of units to be manufactured during the year is
= Selling units + ending finished goods - opening finished goods
= 476,000 units + 75,000 units - 92,000 units
= 459,000 units
2. The raw material purchased amount is
= (508,000 × 5) + 49,000 - 42,000
= $2,547,000
The same would be relevant
Two years ago Angle Company starting using dollar-value LIFO for costing its inventory. The first year the ending inventory in end-of-year dollars was $180,000 with a price index of 1.0. The second year the inventory was $270,000 and the index was 1.2. The current inventory at end of year prices is $387,000 and the price index is 1.25. Given this information, the ending inventory using dollar-value LIFO is
Answer:
Angle Company
Given this information, the ending inventory using dollar-value LIFO is:
= $309,600.
Explanation:
a) Data and Calculations:
Year Inventory value Price Index Inventory Value
using dollar-value
LIFO
1 $180,000 1.0 $180,000 ($180,000/1.0)
2 270,000 1.2 225,000 ($270,000/1.2)
3. 387,000 1.25 309,600 ($387,000/1.25)
b) The Inventory value using dollar-value LIFO converts the inventory value to the base year's value using the price index. It is an attempt to rebase the dollar value of the current ending inventory, using the changes in the price index.
Using the following categories, indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to account balances with a minus sign.)
a. During the period, customer balances are written off in the amount of $11,600.
b. At the end of the period, bad debt expense is estimated to be $9,600.
Answer:
Note: See the attached excel for the Indication of the effects of the two transactions.
Explanation:
From the attached excel file, we have:
a. During the period, customer balances are written off in the amount of $11,600.
Assets increase as the Allowance for doubtful accounts increases by $11,600; but Assets also decreases at the same as Accounts receivable decreases by $11,600.
b. At the end of the period, bad debt expense is estimated to be $9,600.
Assets decrease as the Allowance for doubtful accounts decreases by $9,600; and Stockholders' Equity also decreases as Bad debt expense increases by $9,600.
2) INFLATION-INDEXED TREASURY BOND Assume that the U.S. economy experienced deflation during the year and that the consumer price index decreased by 1 percent in the first six months of the year and by 2 percent during the second six months of the year. If an investor had purchased inflation-indexed Treasury bonds with a par value of $10,000 and a coupon rate of 5 percent, how much would she have received in interest during the year
Answer:
She received $490.05 during the year.
Explanation:
The principal of the bond will decrease in cash of decrease in the consumer price index.
The principal can be calculated as follow
Principal Value = ( Face value x Percentage reduction in consumer price index )
For the First Six Months
Principal Value = ( $10,000 x ( 100% - 1% ) = $9,900
For the Last Six Months
Principal Value = ( $9,900 x ( 100% - 2% ) = $9,702
Now calculate the coupon payments using the following formula
Coupon payments = Principal value x Coupon rate x Time fraction
For the First Six Months
Coupon payments = $9,900 x 5% x 6/12 = $247.50
For the Last Six Months
Coupon payments = $9,702 x 5% x 6/12 = $242.55
Total Interest received = Interest received in First Six Months + Interest received in Last Six Months = $247.50 + $242.55 = $490.05
The cost-plus approach: Multiple Choice uses an assumed reasonable profit margin to determine the stand-alone price. refers to contracts where the contractor is not expected to recover all costs incurred in completing the project. is not allowed under ASC Topic 606 guidance for revenue recognition. refers to contracts that are modified from their original terms during the course of the contract.
Answer:
Uses an assumed reasonable profit margin to determine the stand-alone price.
Explanation:
Is the pricing method in which a resonable profit margin is added to the total product cost to determine the sale price of a product.
For Example
Product A Incurred a total cost of $20 to produce one unit. The company XYZ wants to earn 20% profit margin on the cost of the product, hence the price will be $24 ( $20 x ( 1 + 20% ).
The properly formatted question is as follow
The cost-plus approach:
Uses an assumed reasonable profit margin to determine the stand-alone price.
refers to contracts where the contractor is not expected to recover all costs incurred in completing the project.
is not allowed under ASC Topic 606 guidance for revenue recognition.
refers to contracts that are modified from their original terms during the course of the contract.
The CAPM estimate of rs is equal to the risk-free rate, rRF, plus a risk premium that is equal to the risk premium on an average stock, (rM - rRF), scaled up or down to reflect the particular stock's risk as measured by its beta coefficient, bi. This model assumes that a firm's stockholders are ______________ diversified, but if they are ______________ diversified, then the firm's true investment risk would not be measured by _______________- and the CAPM estimate would _______________ the correct value of rs.
Explanation:
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Indicate whether each of the following costs of an airplane manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Aircraft engines b. Controls for flight deck c. Depreciation of welding equipment d. Landing gear e. Machine lubricants f. Salary of plant superintendent g. Tires h. Wages of assembly line worker
Answer:
Cost Classification :
a. Aircraft engines = direct materials cost
b. Controls for flight deck = direct materials cost
c. Depreciation of welding equipment = factory overhead cost
d. Landing gear = direct materials cost
e. Machine lubricants = factory overhead cost
f. Salary of plant superintendent = factory overhead cost
g. Tires = direct materials cost
h. Wages of assembly line worker = direct labor cost
Explanation:
direct materials cost,
This is the cost of materials directly traced to the Product manufactured.
direct labor cost,
This is the cost of factory labor directly traced to the Product manufactured.
factory overhead cost
This is the factory costs incurred not directly traced to the Product being manufactured
Suppose a firm has 35 million shares of common stock outstanding at a price of $15 per share. The firm also has 200,000 bonds outstanding with a current price of $905.4. The outstanding bonds have yield to maturity 9.4%. The firm's common stock beta is 1.5 and the corporate tax rate is 39%. The expected market return is 14% and the T-bill rate is 3%. What is the WACC for this firm
Answer:
16%
Explanation:
The computation of the WACC is given below:
But before that following calculation should be done
Cost of equity
= Risk free rate of return + beta × (market return - risk free rate)
= 3% + 1.5 × (14% - 3%)
= 19.5%
Market value of equity = 35 million shares ×$15 = $525 million
And, the market value of debt = 200,000 × $905.4 = $181.08 million
Now the WACC is
= cost of equity × weight of equity + cost of debt × (1 - tax rate) × weight of debt
= 19.5% × ($525 ÷ 525 + 181.08) + 9.4% × (1 - 0.39) × ($181.08 ÷ 525 + 181.08)
= 19.5% ×0.744 + 5.734% × 0.256
= 15.975%
= 16%
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset
Answer:
The after-tax salvage value of the asset is:
= $793,000.
Explanation:
a) Data and Calculations:
Asset acquisition cost = $6,020,000
Salvage value = $1,220,000
MACRS Depreciation Expenses = $4,800,000
Project useful life or project duration = 5 years
Tax rate = 35%
Tax expense = $427,000
After-tax salvage value = $793,000 ($1,220,000 - $427,000)
b) The salvage value of the project asset is the recovery or residual value after depreciation expenses have been recognized over the project asset's useful life. Depreciation is an accounting method of spreading the cost of an asset over its useful life. There are many depreciation methods, including straight-line, double-declining, unit-of-production, sum-of-the-years digits, etc.
Grace wants to sell her motorcycle, and Ryan is looking for a used motorcycle to buy. Ryan takes it for a test drive. Grace knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Ryan and he cannot tell from his test drive, this is an example of
Answer:
lack of disclosure
Explanation:
As a rider, this is idiotic as both are clear when riding and even before mounting the vehicle. it is highly illegal to sell a vehicle or piece of property without disclosing problems that you know of.
The given situation is an example of asymmetric information.
What is the meaning of Asymmetric Information?
Asymmetric information refers to the transaction in which two parties are involved and one party has more information than the other. In those transactions buyers and take the advantage of the seller.
According to the given situation there is transaction of selling of the motorcycle is involved between Grace and Ryan. The Grace does not disclose the complete information about the clutch. This type of the transaction is called as Asymmetric information.
Learn more about Asymmetric information here:
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PepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year 1 (in millions) Cash and cash equivalents $ 9,096 $ 6,134 Short-term investments, at cost 2,913 2,592 Accounts and notes receivable, net 6,437 6,651 Inventories 2,720 3,143 Prepaid expenses and other current assets 1,865 2,143 Short-term obligations (liabilities) 4,071 5,076 Accounts payable and other current liabilities 13,507 13,016 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
Answer:
Current ratio
Year 1 = 1.3
Year 2 = 1.1
Quick ratio
Year 1 = 1.0
Year 2 = 0.8
Explanation:
Current ratio is the ration of a company's current assets to the current liabilities while the quick ratio is similar to the current asset except that the prepaid expenses and inventories are excluded from the determination of the assets.
Current assets
Year 1 = 9,096 + 2,913 + 6,437 + 2,720 + 1,865
= $ 23,031.00
Year 2 = 6,134 + 2,592 + 6,651 + 3,143 + 2,143
= $ 20,663.00
Current Liabilities
Year 1 = 4,071 + 13,507
= $ 17,578.00
Year 2 = 5,076 + 13,016
= $ 18,092.00
Current ratio
Year 1 = $ 23,031.00/$ 17,578.00
= 1.3 ( to 1 decimal place)
Year 2 = $ 20,663.00/$ 18,092.00
= 1.1 to 1 decimal place
Quick ratio
Year 1
= (23,031.00 - 2,720 - 1,865)/ 17,578.00
= 1.0 to 1 decimal place
Year 2
= (20,663.00 - 3,143 - 2,143)
= 0.8 to 1 decimal place
An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity of 8.9%. Bond C pays a 10% annual coupon, while Bond Z is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 8.9% over the next 4 years, calculate the price of the bonds at each of the following years to maturity.
Years to Maturity Price of Bond C Price of Bond Z
4 $ $
3 $ $
2 $ $
1 $ $
0 $ $
Answer:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
Explanation:
Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.
The price of each bond of the bond can be calculated using the following excel function:
Bond price = -PV(rate, NPER, PMT, FV) ........... (1)
Where;
rate = Yield to maturity of each of the bonds
NPER = Years to maturity
PMT = Payment = Coupon rate * Face value
FV = Face value
Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
The greatest concern consumers may have regarding the convergence of the real and digital worlds is Multiple Choice the proliferation of ads and sponsored stories on social networking sites that reduce click-through rates. a decreased emphasis on measuring the marketing return on investment for social media initiatives. the elimination of traditional media; all media will become digital. the interference with personal privacy as personal data gets shared within and across social media. the absence of digital cash to complete the near field communication transaction process.
Answer:
The interference with personal privacy as personal data gets shared within and across the social media.
Explanation:
The concern with respect to the convergence of the real and digital worlds is that there is an interference in regard to the personal privacy as the personal data would be shared in the social media
So according to the given options, the above represent the answer
The same would be considered and relevant
You are evaluating two investment alternatives. One is a passive market portfolio with an expected return of 10% and a standard deviation of 16%. The other is a fund that is actively managed by your broker. This fund has an expected return of 16% and a standard deviation of 20%. The risk-free rate is currently 7%. Answer the questions below based on this information. a. What is the slope of the Capital Market Line
Answer:
the slope of the capital market line is 0.1875
Explanation:
The computation of the slope of the capital market line is shown below:
= (Expected return - risk free rate of return) ÷ (standard deviation)
= (10% - 7%) ÷ 16%
= 3% ÷ 16%
= 0.1875
hence, the slope of the capital market line is 0.1875
We simply used the above formula to measured the slope of the capital market line
Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is $2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit:
Budgeted Production Volume Direct Labor Hours Per Unit
Flutes 2,000 units 2.0
Clarinets 1,500 3.0
Oboes 1,750 1.5
a. Determine the single plantwide overhead rate.
$ per direct labor hour
b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.
Total Per Unit
Factory Overhead Cost Factory Overhead Cost
Flutes $ $
Clarinets
Oboes
Total $
Answer:
Results are below.
Explanation:
Giving the following information:
Flutes= 2,000*2 = 4,000 hours
Clarinets= 1,500*3 = 4,500 hours
Oboes= 1,750*1.5 = 2,625 hours
Total direct labor hours = 11,125
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,948,125 / 11,125
Predetermined manufacturing overhead rate= $265 per direct labor hour
Now, we can allocate to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Flutes= 4,000* 265= 1,060,000
Clarinets= 4,500*265= 1,192,500
Oboes= 2,625*265= 695,625
Unitary:
Flutes= 265*2= 530
Clarinets= 265*3= 795
Oboes= 265*1.5= 397.5
Sullivan Company has a Cash account balance of $8,112.62, and on September 30, the bank statement indicated a balance of $9,098.55. Using the following data, prepare a bank reconciliation and any necessary journal entries for Sullivan Company on September 30.
a. Deposits in transit amounted to $3,358.19.
b. Outstanding checks totaled $1,251.12.
c. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account.
d. A $15 bank service charge has not yet been recorded by Sullivan Company.
e. Sullivan Company neglected to record $3,000 borrowed from the bank on a 10%, 6-month note. The bank statement shows the $3,000 deposit.
f. An NSF check in the amount of $640 from J. Martin in payment on account has been returned.
g. Sullivan Company recorded a $107 payment for repairs as $1,070.
Answer and Explanation:
The preparation of the bank reconcilliation statement is presented below:
Bank Books
Balance $9,089.55 $8,112.62
Add: deposit in transit $3,358.19 Add: note payable borrowed $3,000
Less: outstanding checks $1,251.12 Add: error in recording $963
Add: error by bank $215 ($1,070 - $107)
Less: bank charges $15
Less: NSF check $640
Updated balance $ 11,420.62 Updated balance $ 11,420.62
The journal entries are shown below:
On July 31
Cash $3,000
To Notes payable $3,000
(Being note payable is recorded)
Cash $963
To Repair expenses $963
(being error is recorded)
Bank charges $15
To Cash $15
(Being cash paid is recorded)
Account receivables $640
To Cash $640
(Being cash paid is recorded)
Portia owns and manages a sporting apparel company. Consider the given average cost (AC), average variable cost (AVC), and marginal cost (MC) curves for track suits. All but the MC curve have been placed incorrectly. Portia knows that the minimum average cost for a track suit is $7 and the minimum of average variable cost is $5.
Required:
Draw the AC and AVC curves so that they are consistent with the marginal cost curve.
Answer:
AVC curve will be below the AC curve
Explanation:
As we know,
[tex]AC = AFC + AVC[/tex]
This means that Average cost is the sum of average fixed cost and Average variable cost. Thus it can be shown that AC curve will be above the AVC curve.
Also we know that MC curve is upward sloping.
Thus, the MC curve will cut the AVC curve first and it will be to the right of the point where the MC curve cuts the AC curve.
So the curve must look like,
Descendants Corporation is a growth firm that recently had its IPO. It is not currently paying dividends and its first dividend is expected in year 5. After this, it is expected to offer dividends with growth rates of 15% for two years. After this time, it is expected to reach stable growth with a dividend growth rate of 4% forever. If the dividend discount model is used to value the stock, in what year does the horizon value from stable growth belong
Answer:
year 7
Explanation:
The dividend discount model (DDM) is used to determine the value of stock by discounting the dividend to derive the present value of the stock.
Types of DDM
1.two stage : one stage of rapid growth and a stage of constant growth
3. three stage : one stage of super normal growth, followed by a stage of normal growth and then constant growth
For this company
first 5 years = o dividends
next 2 years = 15%
7th year - constant growth
Shortcomings of the DDM
It doesn't take a control perspective
It is unsuitable for firms that don't pay dividends
Predetermined Factory Overhead Rate Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,257,500 Shop direct labor 550,000 Shop and repair equipment depreciation 91,000 Shop supervisor salaries 250,000 Shop property taxs 40,000 Shop supplies 15,000 Advertising expense 75,000 Administrative office salaries 175,000 Administrative office depreciation expense 12,500 Total costs and expenses $2,466,000 The average shop direct labor rate is $25 per hour. Determine the predetermined shop overhead rate per direct labor hour. $fill in the blank 1 per direct labor hour
Answer:
Predetermined manufacturing overhead rate= $18 per direct labor hour
Explanation:
First, we need to calculate the estimated overhead cost for the period:
Estimated overhead cost= Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Estimated overhead cost= 91,000 + 250,000 + 40,000 + 15,000
Estimated overhead cost= $396,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 396,000 / (550,000/25)
Predetermined manufacturing overhead rate= 396,000 / 22,000
Predetermined manufacturing overhead rate= $18 per direct labor hour
ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual total overhead$80,510 Actual fixed overhead$32,000 Actual machine hours11,000 Standard hours for the units produced10,600 Standard variable overhead rate$4.60 What is the variable overhead efficiency variance
Answer:
the variable overhead efficiency variance is $1,840 unfavorable
Explanation:
The computation of the variable overhead efficiency variance is shown below:
= Standard variable overhead rate × (standard hours - actual hours)
= $4.60 × (10,600 - 11,000)
= $1,840 unfavorable
Hence, the variable overhead efficiency variance is $1,840 unfavorable
As the standard hours would be less than the actual hours so it would be unfavorable variance
You purchased 100 shares of MegaCorp for $17 per share four months ago. The brokerage fee was 4% of the total dollar amount of the purchase. Today you sold the shares for $23.50 per share. Brokerage fees were 4% of the total sale value. If you are in the .28 marginal tax bracket, how much tax do you owe (rounded to the nearest dollar) on the capital gain
Answer: $136.64 Owed on Capital gain.
Explanation:
Base on the information given in the question, the tax owed on the capital gain will be calculated thus:
Total purchase cost = 100 × $17 + [(100 × $17) × 4%]
= $1700 + ($1700 × 0.04)
= $1700 + $68
= $1,768
We than calculate the net sale consideration which will be:
= 100 × $23.50 - [(100 × $23.50) × 4%]
= $2350 - ($2350 × 0.04)
= $2350 - $94
= $2,256
Then, the short term capital gain will be:
= $2,256 - $1,768
= $488
The tax on short term capital gain will be:
= $488 × 28%
= $488 × 0.28
= $136.64