Answer:
Predetermined manufacturing overhead rate= $240 per order
Explanation:
Giving the following information:
Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders
To calculate the predetermined 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= 120,000/500
Predetermined manufacturing overhead rate= $240 per order
The following trial balance of Crane Co. does not balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit Credit
Cash $3,099
Accounts Receivable $3,460
Supplies 1,029
Equipment 4,029
Accounts Payable 2,895
Unearned Service Revenue 1,429
Common Stock 6,229
Retained Earnings 3,229
Service Revenue 2,609
Salaries and Wages Expense 3,629
Office Expense 1,169
Totals $14,745 $18,061
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).
6. A debit posting to Salaries and Wages Expense of $899 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.
Prepare a correct trial balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit
Credit $ $
Totals $ $
Answer and Explanation:
Cash= 3,099+180-294-294= 2691
Accounts receivable= 3,460-180=3280
Supplies =1,029-729=300
Equipment= 4,029+729=4758
Accounts payable =2,895-206-260= 2429
unearned service revenue=1,429-554= 875
Service revenue= 2,609+801+554 3964
Salaries & wage expense 3,629+899-804= 3724
Find attached
On December 31, 2017, Wayne Sparks Company had 600,000 shares of common stock issued and outstanding. Sparks issued a 5% stock dividend on June 30, 2018. On September 30, 2018, 20,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2018
Answer: $625,000
Explanation:
The number of shares to use will be the Weighted average of the number of common shares in the company as at December 2018.
5% stock had been issued so common stock increases to;
= 600,000 * ( 1 + 5%)
= 630,000 shares
The treasury stock is to be deducted from the amount above and was only reacquired on Sept. 30 so the weighted average is;
= 20,000 * 3/12 months
= 5,000 shares
Number of shares = 630,000 - 5,000 = $625,000
A company purchased new furniture at a cost of $26,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31
Answer: Depreciation for 3 months = $1140.
Explanation:
In straight line method, Depreciation for full year = (Cost – Salvage value) ÷ useful life
Depreciation for full year = ($26,000 -$3,200 ) ÷ 5
= $(22800÷ 5)
= $ 4,560
Furniture was purchased on September 30, so depreciation will be calculated from October to December(3 months)
Depreciation for 3 months = Yearly depreciation x ([tex]\dfrac3{12}[/tex])
= $4,560 x (0.25)
= $1140.
Hence, Depreciation for 3 months = $1140.
"What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation?"
Answer:
the list of assets is missing, so I looked for a similar question and found the following:
MACRS depreciation for machinery is 10 years, and the depreciation % for the first year using the half year convention is 10% ⇒ depreciation expense = $70,000 x 10% = $7,000
MACRS depreciation for computer equipment is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $10,000 x 20% = $2,000
MACRS depreciation for the delivery truck is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $23,000 x 20% = $4,600
MACRS depreciation for furniture is 7 years, and you can use the mid-quarter convention since furniture represents more than 40% of total assets placed in to service. The depreciation % for the first year, second quarter using the mid-quarter convention is 17.85% (the half year convention depreciation rate is 14.29%) ⇒ depreciation expense = $150,000 x 17.85% = $26,775
total depreciation expense = $40,375
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.
Account Titles Debit Credit
Cash $ 11,200
Accounts Receivable 5,200
Prepaid Rent 2,240
Equipment 20,200
Accumulated Depreciation $ 1,180
Accounts Payable 1,180
Income Tax Payable 0
Common Stock 24,000
Retained Earnings 1,300
Sales Revenue 47,080
Salaries and Wages Expense 24,200
Utilities Expense 11,700
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 74,740 $ 74,740
Other data not yet recorded at December 31:
1. Rent expired during the year, $1,120.
2. Depreciation expense for the year, $1,180.
3. Utilities used and unpaid, $8,200.
4. Income tax expense, $310.
Required:
Indicate the accounting equation effects of each required adjustment. (Enter all amounts as positive values.)
Answer and Explanation:
The accounting equation effects of each required adjustment is shown below:-
Transactions Assets
a. Prepaid rent - $1,280
b. Accumulated
depreciation - $1,180
c. NE
d. NE
Transactions = Liabilities + Stockholders' Equity
a. NE Rent expenses -$1,280
b. NE Depreciation expenses -$1,180
c. Accounts payable + $8,200 Utilities expenses -$8,200
d. Income tax payable + $310 Income tax expense -$310
Robert has set-up a start-up business. You have been appointed as an accountant for his business. Prepare journal entries for the following
transactions
1. On January 1, 2015, Robert invested $50,000 in his business.
2. On January 4, 2015, Robert bought a laptop for $2,800 for business use.
3. On January 20, 2015, Robert received $13,000 for services rendered.
4. On January 23, 2015, Robert paid salaries to his staff for $3,500
Answer:
On January 1, 2015, Robert invested $50,000 in his business.
Date Account Debit Credit
January 1, 2015 Cash
50,000
January 1, 2015 Cash
50,000
On January 4, 2015, Robert bought a laptop for $2,800 for business use.
Date Account Debit Credit
January 4, 2015 Office Computer
2,800
January 4, 2015 Cash
2,800
On January 20, 2015, Robert received $13,000 for services rendered.
Date Account Debit Credit
January 20, 2015 Cash
13,000
January 20, 2015 Revenue
13,000
On January 23, 2015, Robert paid salaries to his staff for $3,500.
Date Account Debit Credit
January 23, 2015 Salaries
3,500
January 23, 2015 Cash
3,500
Explanation:
For each of the situations listed, identify the primary standard from the IMA Statement of Ethical Professional Practice that is violated (competence, confidentiality, integrity, or credibility).
1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.
2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.
3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.
Answer:
1. To reduce the company's tax bill, Jack uses total cost to value inventory instead of using product cost as required by law.
Competence: accounting records must follows applicable laws, regulations and standards, you must IRA and GAAP rules when preparing financial statements and tax reports.2. Since Emilie works in the accounting department, she is aware that profits are going to fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date.
Confidentiality: accounting records must b confidential unless you are authorized to disclose them, and you are not authorized to disclose the information to your aunt.3. Veronica pays a Mexican official a bribe of $50,000 to allow the company to locate a factory in that jurisdiction so that the company can take advantage of the cheaper labor costs. Without the bribe, the factory cannot be located in that location.
Integrity: you must abstain from performing illegal activities, and bribery is illegal.4. There is a failure in the company's backup system after a system crash. Month-end reports will be delayed. Kayla, the manager of the division experiencing the system failure, does not report this upcoming delay to anyone since she does not want to be the bearer of bad news.
Credibility: you must report all relevant and important information regardless of whether that information will make you bad or not.Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $94,500 worth of parts from your supplier and the discount is at an annual rate of 10%. How much will you pay for the parts if you pay today
Answer: $92,275
Explanation:
The amount you will pay today is the present value of the purchase price given a 10% discount for a quarter of a year.
= 94,500/ (1 + 10%) ^ 1/4 year
= 92,274.91147
= $92,275
Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Vaughn are 60000 Standard and 40000 Supreme. Fixed expenses are $1500000. How many Standards would Vaughn sell at the break-even point?
Answer:
30,000 units
Explanation:
The computation of the break even point is shown below:
But before that we need to do the following calculations
Standard product sales mix % is
= 60,000 ÷ (60,000 + 40,000)
= 60,000 ÷ 100,000
= 60%
Total Break even in units is
= $1,500,000 ÷ $30
= 50,000
Now
Break even units for Standard product is
= 50000 x 60%
= 30,000 units
Terrill Company finds its records are incomplete concerning a piece of machinery used in its plant. According to the company records, the machinery has an estimated useful life of 10 years and an estimated salvage value of $ 24,000. It has recorded $ 12,000 in depreciation each year using the straight-line method. If the accumulated depreciation account shows a balance of $ 72,000, what is the original cost of the machinery and how many years remain to be depreciated?
Answer:
original cost $144,000: Remaining years 4 years
Explanation:
Depreciation is the process of expensing the value of an asset over its useful life. The straight-line method allocates an equal amount of expense as depreciation in every of the gainful life.
The calculation of depreciation involves first determining the depreciable amounts.
The depreciable amount = asset cost - salvage value. In this case, the salvage value is $ 24,000, but the asset cost is not given.
Depreciation per year= depreciable amount divided by lifespan
For Terrill company
$12,000 =depreciable amount /10
Depreciable amount = $12,000 x 10
=$120,000
If depreciable amount = asset cost - salvage value, then
$120,000 = asset cost - $24,000
Asset cost = $120,000 + $24,000
Asset cost = $144,000
Accumulated depreciation of $72,000 implies the asset has been depreciated $72,000/$12,000 times
=72,000/12000
= 6 times or six year.
The asset has a lifespan of 10 years; then it has four years remaining(10-6)
What precaution should a food handler take when cleaning up vomit
Explanation:
The following are some precautions a food handler should take:
they should ensure that they are adequately protected by wearing hand gloves.ensure that they properly wash the area affected and the equipment used during the cleaning with detergent (eg bleach).the gloves worn during the cleaning operation should also be properly disinfected with detergents.Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, Poland, or Mexico. The cost of the facility will differ between countries and will even vary within countries depending on the economic and political climate, including monetary exchange rates. The company has estimated the facility cost (in $ millions) in each country under three different future economic/political climates as follows.Economic/Political Climate Country Decline Same Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Poland 22.5 16.8 13.8 Mexico 25.0 21.2 12.5 Determine the best decision using the following decision criteria. (Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax.)
a. Maximin
b. Minimax
c. Hurwicz ( 0.40)
d. Equal likelihood
Answer:
a. Maximin = 19.0
b. Minimax = 17.6
c. Hurwicz ( 0.40) = Taiwan
d. Equal likelihood = Taiwan
Explanation:
Remember, we are told to: Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax
a) Maximin: Since the payoff is cost, we begin by determining the maximum cost for each alternative and then selecting the one which gives the minimum of these maximums. (minimax)
b) Minimax: Since the payoff is cost, we begin by determining the minimum cost for each alternative and then selecting the one which gives the maximum of these minimums. (maximin).
c) Hurwicz (0.40): In this method, we add and multiply each payoff value by alpha (0.4).
South Korea = 15.2 (0.4) + 21.7 (0.6) = 19.1 ( remember, in $ millions)
China = 17.6 (0.4) + 19.0 (0.6) = 18.44
Taiwan = 14.9 (0.4) + 19.2 (0.6) = 17.48
Poland = 13.8 (0.4) + 22.5 (0.6) = 19.02
Mexico = 12.5 (0.4) + 25.0 (0.6) = 20
From the values above we select the minimum outcome since the company is looking at saving cost. Which is Taiwan; having the lowest cost of $17.48 million.
d) Using the formula [tex]\frac{P_{1} +P_{2}+P_{3}...P_{n} }{n}[/tex] where P = payoffs value, n = number of events.
South Korea = 15.2 + 21.7 + 19.1 /3 = 18.66
China = 17.6 + 19.0 + 18.5 /3 = 18.36
Taiwan = 14.9 + 19.2 +17.1 /3 = 17.06
Poland = 13.8 + 22.5 + 16.8 /3 = 17.7
Mexico = 12.5 + 25.0 + 21.2 /3 = 19.56
Taiwan should be selected since it has the lowest cost of $17.06 million.
You predict that interest rates are about to fall. Which bond will give you the highest capital gain
Answer: d. Zero coupon, long maturity
Explanation:
It is generally held that when interest rates decrease in the market, the price of bonds will increase because people will seek bonds as they offer a steady rate of return.
A longer maturity bond will enable you to take advantage of this decrease in interest rates over a longer period because you get to discount the bond at a lower rate over a longer period so it is better.
A zero coupon long maturity bond is the best because when it is discounted at this lower rate, it will bring back a higher price than the rest of the bonds
Find an approximate annual dollar-weighted yield received by Abiyote for the three-year period from January 1, 1994 until January 1, 1997 using
Answer:
The information about Abiyote's investment is missing, so I looked for similar questions:
Abiyote's time weighted rate of return = [(1 + HP₁ ) x (1 + HP₂) x (1 + HP₃)]¹/³ - 1
HP₁ = ($28,212 - $24,500) / $24,500 = 0.1515
HP₂ = ($15,892 - $18,212) / $18,212 = -0.1274
HP₃ = ($30,309 - $23,892) / $23,892 = 0.2686
TWRR = [(1.1515 x 0.8726 x 1.2686)¹/³ - 1 = 0.08426 = 8.43%
You calculate TWRR in the same way as you calculate geometric mean.
Which drawback of being an entrepreneur can disrupt your personal life?
In a company's SWOT analysis, which of the following is an example of a strength?
A.
A law is passed that decreases demand for the company's product.
B.
A demographic trend increases demand for the company's product.
C.
The company's employees are efficient and productive.
D.
The company doesn't have many competitors.
Answer:
C. The companies employees are efficient and productive.
Explanation:
According to SWOT analysis "C" is a strength.
Explanation:
Task C has two immediate predecessors, Tasks A and B. Task C also has two immediate followers, Tasks D and E. Task A has an early finish time of 3 days, and Task B has an early finish time of 5 days. Task D has a late start time of 10 days and Task E has a late start time of 8 days. Task C is 2 days long. What is the early finish time of Task C
Answer:
7 days
Explanation:
Calculation for the early finish time of Task C
First step is to find the Early Start of task C
Using this formula
Early Start of task C = MAX (Early Finish of task A, Early Finish of task B)
Let plug in the formula
Early Start of task C= MAX(3,5)
Early Start of task C = 5
Now let calculate the Early Finish time of Task C
Using this formula
Earliest Finish = Earliest Start + Activity Duration
Let plug in the formula
Earliest Finish of task C = 5 + 2
Earliest Finish of task C = 7 days
Therefore the early finish time of Task C will be 7 days
The early finish time of task C is the sum of the early start time and the activity duration of the task. Hence, the early finish time of task C is 7 days.
Given the Parameters :
Activity time of task C = 2 days Early finish, Task A = 3 days Early finish, Task B = 5 daysThe early finish time of task C :
Early start time possible + Activity time of task C
Maximum value of the finish time of the preceeding task :
Early start time of task C = maximum(3, 5)
Early start time of task C = 5 days
Early finish time of C = 5 days + Activity time
Early finish time of task C = 5 days + 2 days = 7 days
Therefore, the early finish time of task C is 7 days
Learn more :https://brainly.com/question/20164920?referrer=searchResults
The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:
Blink Division Blur Division Total
Sales $280,000 $168,000 $448,000
Variable costs 98,000 77,000 175,000
Contribution margin $182,000 $91,000 $273,000
Direct fixed costs 84,000 70,000 154,000
Segment margin $98,000 $21,000 $119,000
Allocated common costs 42,000 31,500 73,500
Operating income (loss) $56,000 ($10,500) $45,500
Operating income for Winston Corporation as a whole if the Blur Division were dropped would be:
a. $66,500.
b. $56,000.
c. $45,500.
d, $24,500.
Answer:
d, $24,500
Explanation:
Computation for the Operating income for Winston Corporation as a whole if the Blur Division were dropped
Operating income (loss) for Blink Division $56,000
Less Allocated common costs Blur Division (31,500)
Operating income for Winston Corporation $24,500
Therefore the Operating income for Winston Corporation as a whole if the Blur Division were dropped would be $24,500
The following is selected information from Bonita Corporation for the fiscal year ending October 31, 2018
Cash received from customers $301000
Revenue recognized 376000
Cash paid for expenses 184000
Cash paid for computers on November 1, 2017 that will be used for 3 years (annual depreciation is $16100) 48300
Expenses incurred, including interest, but excluding any depreciation 218000
Proceeds from a bank loan, part of which was used to pay for the computers 95000
Based on the accrual basis of accounting, what is Monty Corporation’s net income for the year ending October 31, 2018?
Answer:
Net Income = $141,900
Explanation:
Accrual Basis of Accounting
Net income of Monty Corporation’s for the
year ending October 31, 2018
Particulars Amount
Revenue recognized $376,000
Less: Expenses incurred, including interest, $218,000
but excluding any depreciation
Depreciation $16,100
Net Income $141,900
Thomas, a senior manager at a manufacturing firm, is coming up with
ideas for a new product. Thomas has made a list of the following tasks that form a part of this project, along with their respective durations.
Create questionnaires to interview potential customers (7 days)
Find existing information about the market from online sources and trade journals (6 days)
Interview the respondents with the help of the questionnaire (10 days)
Design a new product according to the information obtained through the interviews (30 days)
If Thomas conducts a Critical Path Analysis to schedule these activities, what is the most likely duration that the activities will take to be completed?
A. 50 days
B. 40 days
C. 57 days
D. 47 days
E. 67 days
Answer:
47
Explanation:
The Answer is D, 47.
Answer:
47
Explanation:
Plato/Edmentum
Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account
1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account
Answer:
1. Supplies - ASSETS
Supplies are assets and are debited when they increase.
2. Notes Payable - LIABILITIES.
Current Liabilities owed to creditors.
3. Service Revenue. REVENUE
Revenue that will go to the income statement.
4. Dividends. EQUITY.
These are payments to Shareholders and so are Equity.
5. Accounts Payable. LIABILITY.
These are current liabilities and increase by credit.
6. Salaries and Wages Expense. EXPENSE.
These are expenses that will go to the Income Statement
7. Common Stock. EQUITY.
Common Stock is equity as it represents ownership in the company.
8. Accounts Receivable. ASSET.
Accounts Receivables are current assets and are debited when they increase.
9. Equipment. ASSET.
Equipment are fixed assets and are debited when they increase.
10. Notes Receivable. ASSETS.
Like Receivables these are current assets and are debited when they increase.
Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition:
Assets Fortuna Acappella
Current assets $2,100,000 $ 960,000
Property, plant, and equipment (net) 4,600,000 1,300,000
Goodwill -- 240,000
Total assets $6,700,000 $2,500,000
Liabilities and Stockholders' Equity
Liabilities $3,000,000 $ 800,000
Common stock ($1 par) 800,000
Common stock ($5 par) 200,000
Paid-in capital in excess of par 2,200,000 300,000
Retained earnings 700,000 1,200,000
Total liabilities and equity $6,700,000 $2,500,000
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000. Compute goodwill or gain recognized in the consolidated statements .
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.Required:
a. What is the Goodwill/Gain associated with the acquisition:
b. What is the Non-Controlling Interest recorded in the consolidated balance sheet
c. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:
d.Record the two elimination entries associated with the acquisition of the company
Answer:
Part 1
$1,730,000 (Gain)
Part 2
a. $1,890,000 (Gain)
b. $560,000
c. Consolidated Assets = $9,850,000 and Consolidated Liabilities = $3,800,000
d. Journals
Journal 1
Property Plant and Equipment $300,000 (debit)
Revaluation Reserve $300,000 (credit)
Revaluation of Acappella`s Property Plant and Equipment item
Journal 2
Common Stock $1,300,000 (debit)
Retained Earnings $1,200,000 (debit)
Revaluation Reserve $100,000 (debit)
Investment in Subsidiary $350,000 (credit)
Non-Controlling Interest $560,000 (credit)
Gain on Bargain Purchase $1,890,000 (credit)
Main Elimination Journal
Explanation:
Goodwill is the excess of Purchase Consideration over the Net Assets Acquired.
Purchase Consideration (70,000 shares × $5) = $350,000
Part 1
Calculation of Net Assets Acquired
Retained Earnings $1,200,000
Common Stock $1,300,000
Revaluation $100,000
Total Net Assets Acquired $2,600,000
Therefore,
Net Assets Attributable to Fortuna Company = $2,600,000 × 80%
= $ 2,080,000
Purchase Consideration $350,000 < Net Assets Acquired ($ 2,080,000), therefore we have a gain situation of $1,730,000
Part 2
2a.
Calculation of Net Assets Acquired
Retained Earnings $1,200,000
Common Stock $1,300,000
Revaluation $300,000
Total Net Assets Acquired $2,800,000
Therefore,
Net Assets Attributable to Fortuna Company = $2,800,000 × 80%
= $ 2,240,000
Purchase Consideration $350,000 < Net Assets Acquired ($ 2,240,000), therefore we have a gain situation of $1,890,000
2b.
Calculation of Non - Controlling Interest
Note : I have elected to measure Non-Controlling Interest as proportionate to the fair value of Net Identified Assets Acquired !
Non - Controlling Interest = Non Controlled Interest % × Total Net Assets Acquired
= 20 % × $2,800,000
= $560,000
2c.
Consolidation is 100 % of Parent/ Acquirer and 100% of subsidiary (Acquired) combined.
Assets :
Fortuna Company = $6,700,000 + $350,000 = $7,050,000
Acappella Company = $2,500,000 + $300,000 = $2,800,000
Total Assets = $9,850,000
Liabilities :
Fortuna Company = $3,000,000
Acappella Company = $ 800,000
Total Liabilities = $3,800,000
2d.
Journal 1
Property Plant and Equipment $300,000 (debit)
Revaluation Reserve $300,000 (credit)
Revaluation of Acappella`s Property Plant and Equipment item
Journal 2
Common Stock $1,300,000 (debit)
Retained Earnings $1,200,000 (debit)
Revaluation Reserve $100,000 (debit)
Investment in Subsidiary $350,000 (credit)
Non-Controlling Interest $560,000 (credit)
Gain on Bargain Purchase $1,890,000 (credit)
Your parents are giving you $250 a month for 4 years while you are in college. At an interest rate of .57 percent per month, what are these payments worth to you when you first start college
Answer:
FV= $13,757.37
Explanation:
Giving the following information:
Monthly payment= $250
Interest rate= 0.0057
Number of periods= 4*12= 48
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {250*[(1.0057^48) - 1]} / 0.0057
FV= $13,757.37
World Company expects to operate at 80% of its productive capacity of 67,500 units per month. At this planned level, the company expects to use 32,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.600 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $68,040 fixed overhead cost and $408,240 variable overhead cost. In the current month, the company incurred $472,000 actual overhead and 29,400 actual labor hours while producing 51,000 units.
Required:
a. Compute the overhead volume variance.
b. Compute the overhead controllable variance.
Answer:
1. $3,780 Unfavorable
2. $453,600 Overhead controllable variance
Explanation:
Req. 1
Fixed Overhead Applied
Fixed OH per DL hr. ($68,040 ÷ $32,400) = 2.1
Standard DL hours = 0.60 * $51,000 = $30,600
Fixed OH applied = 2.1 * $30,600 = $64,260
Volume variance.
Total fixed OH applied $64,260
Total budgeted fixed OH $68,040
Fixed OH volume variance $3,780 Unfavorable
Req. 2
Overhead controllable variance.
Total actual overhead $ 472,000
Flexible budget overhead
Variable = $408,240 ÷ $32,400 = 12.6
=> $30,600 * 12.6 = $385,560
Fixed. $68,040
Total $453,600 Overhead controllable variance
Which option enables you to keep the last grammatical change?
Answer:
Undo Option
Explanation:
The Accept option enables you to keep the last grammatical change in Microsoft Word.
Canadians companies are free to charge whatever prices they wish. True or false
Answer:true
Explanation:
which situation best describes the role of businesse in the circular flow of goods
Answer:
A company makes a new line of kitchen appliances
Explanation:
Just did it
Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,950 of materials on account. Issued $16,780 in direct materials to the production department. Issued $1,340 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,020 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $32,500, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,250 on account. Recognized depreciation on manufacturing plant of $36,700. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,600. Estimated overhead for the year was $412,870. The following balances appeared in the inventory accounts of Forest Components for July.
Beginning Ending
Materials Inventory ? $12,490
Work-in-Process Inventory ? 10,560
Finished Goods Inventory $2.700 6.930
Cost of Goods Sold ? 75,1000
a. Prepare Journal Entries to record these transactions (1-9)
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold
Answer:
Forest Components
Journal Entries:
1. Debit Materials Inventory $16,950
Credit Accounts Payable $16,950
To record the purchase of materials on account.
2. Debit Work in Process Inventory $16,780
Credit Materials Inventory $16,780
To record the issue of materials to the production department.
3. Debit Manufacturing Overhead $1,340
Credit Materials Inventory $1,340
To record the issue of materials to the service department.
4. Debit Accounts Payable $16,950
Credit Cash Account $16,950
To record the payment for the materials purchased on account.
5. Debit Materials Inventory $2,020
Credit Work In Process $2,020
To record the record of materials.
6. Debit Work in Process $32,500
Credit Factory Wages $32,500
To record the direct labor cost.
7. Debit Manufacturing Overhead $17,250
Credit Accounts Payable $17,250
To record the purchase of miscellaneous items for the plant.
8. Debit Manufacturing Overhead $36,700
Credit Depreciation Expense $36,700
To record depreciation expense on manufacturing plant.
9. Debit Work In Process $30,875
Credit Manufacturing Overhead $30,875
To apply overhead for the month.
b. T-accounts:
Materials Inventory
Accounts Titles Debit Credit
Balance $12,320
Accounts Payable $14,930
Work in Process 2,020
Work in Process Inventory $16,780
Balance $12,490
Work-in-Process Inventory
Accounts Titles Debit Credit
Balance $11,755
Materials Inventory 16,780
Materials Inventory $2,020
Factory Wages 32,500
Overhead 30,875
Finished Goods Inventory 79,330
Balance 10,560
Manufacturing Overhead
Accounts Titles Debit Credit
Materials Inventory $1,340
Accounts Payable 17,250
Depreciation Expense 36,700
Work In Process $30,875
Finished Goods Inventory
Accounts Titles Debit Credit
Balance $2,700
Work in Process 79,330
Cost of goods sold 75,100
Balance $6,930
Cost of Goods Sold
Accounts Titles Debit Credit
Finished Goods 75,100
Explanation:
a) Data and Calculations:
Materials Inventory ? $12,490
Work-in-Process Inventory ? 10,560
Finished Goods Inventory $2,700 6,930
Cost of Goods Sold ? 75,1000
Predetermined overhead rate = $412,870/$434,600 = $0.95
Overhead applied = $30,875 ($0.95 * $32,500)
According to Joseph Schumpeter, what does economic progress depend on? A. technological change in the form of new products B. competition, especially price competition C. the initial endowment of economic resources, such as the amount of labor and capital available D. government protection of competition
Answer:
A. technological change in the form of new products
Explanation:
Joseph Schumpeter gave his economist theory of creative destruction which was a change-oriented and innovative based approach to enterprise ship was the central point of his work was capitalism. In areas of economic, industrial policy, and management studies.According to Joseph Schumpeter, the economy depends on technological change in the form of new products. Thus, the correct option is (A).
Schumpeterian growth is defined as economic growth that is driven by innovation and guided by the creative destruction process.
Formal economic models that operationalize Schumpeter's concept of creative destruction have been developed.
Joseph Schumpeter emphasizes the importance of the entrepreneur in bringing about change and adding innovative activities to an economy.
Furthermore, Schumpeter sees capitalism as a growing system, with his entrepreneur contributing to it.
Therefore, the correct option is "A".
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Fact Pattern: Dori Castings, a job-order shop, uses a full-absorption, standard-cost system to account for its production costs. The O/H costs are applied on a direct-labor-hour basis.
The amount of fixed factory O/H that Dori will apply to finished production is the:_______.
A. Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour.
B. Actual fixed factory O/H cost per direct labor hour times the standard allowed direct labor hours.
C. Actual direct labor hours times the standard fixed factory O/H rate per direct labor hour.
D. Standard units of output for the actual direct labor hours worked times the standard fixed factory O/H rate per unit of output.
Answer:
A)Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour.
Explanation:
Production cost are all cost that producer used to produce his/her goods, it could be labor cost , and other expenses.bit can be calculated by dividing the total unit produced by the cost . Or the summation of all cost such direct labor, overhead cost.
Hence, The amount of fixed factory O/H that Dori will apply to finished production is the: ""Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour."" Which is option A