Answer
1)a
Dr Cash 608,400
Cr Inventory 537,600
Cr Gain on Sale of Inventory 70,800
b.
Dr Gain on Sale of Inventory 70,800
Cr Kendra' Capital 35,400
Cr Cogley's Capital 23,600
Cr Mei' Capital 11,800
c.
Dr Accounts Payable 258,000
Cr Cash 258,000
d.
Dr Kendra' Capital 112,100
Dr Cogley's Capital 196,175
Dr Mei, Capital 146,025
Cr Cash 454,300
2a.
Dr Cash 469,200
Dr Loss on Sale of Inventory 68,400
Cr Inventory 537,600
b.
Dr Kendra' Capital 34,200
Dr Cogley's Capital 22,800
Dr Mei' Capital 11,400
Cr Loss on sale of Inventory 68,400
c.
Dr Accounts Payable 258,000
Cr Cash 258,000
d.
Dr Kendra' Capital 42,500
Dr Cogley's Capital 149,775
Dr Mei' Capital 122,825
Cr Cash 315,100
3a.
Dr Cash 358,800
Dr Loss on Sale of Inventory 178,800
Cr Inventory 537,600
b.
Dr Kendra' Capital 89,400
Dr Cogley's Capital 59,600
Dr Mei' Capital 29,800
Cr Loss on sale of Inventory 178,800
c.
Dr Cash 12,700
Cr Kendra' Capital 12,700
d.
Dr Accounts Payable 258,000
Cr Cash 258,000
e.
Dr Cogley's Capital 17,100
Dr Mei' Capital 104,425
Cr Cash 121,525
4a.
Dr Cash 298,800
Dr Loss on Sale of Inventory 238,800
Cr Inventory 537,600
b.
Dr Kendra' Capital 119,400
Dr Cogley's Capital 79,600
Dr Mei' Capital 39,800
Cr Loss on sale of Inventory 238,800
c.
Dr Cogley's Capital 28,466
Dr Mei' Capital 14,234
Cr Kendra' Capital 42,700
d.
Dr Accounts Payable 258,000
Cr Cash 258,000
e.
Dr Cogley's Capital 64,509
Dr Mei' Capital 80,191
Cr Cash 144,700
Explanation:
Preparation of the Prepare journal entries to record the sales of inventory
1)a
Dr Cash 608,400
Cr Inventory 537,600
Cr Gain on Sale of Inventory 70,800
(608,000-536,600)
b
Dr Gain on Sale of Inventory 70,800
(608,000-536,600)
Cr Kendra' Capital 35,400
(3/6×70,800)
Cr Cogley's Capital 23,600
(2/6×70,800)
Cr Mei' Capital 11,800
(1/6×70,800)
c.
Dr Accounts Payable 258,000
Cr Cash 258,000
d.
Dr Kendra' Capital 112,100
(76,700+35,400)
Dr Cogley's Capital 196,175
(172,575+23,600)
Dr Mei, Capital 146,025
(134,225+11,800)
Cr Cash 454,300
(112,100+196,175+146,025)
2)Preparation of the Journal entries to Allocate the gain(loss) on the sale of inventory to the partners.
a.
Dr Cash 469,200
Dr Loss on Sale of Inventory 68,400
(469,200-537,600)
Cr Inventory 537,600
b.
Dr Kendra' Capital 34,200
(3/6×68,400)
Dr Cogley's Capital 22,800
(2/6×68,400)
Dr Mei' Capital 11,400
(1/6×68,400)
Cr Loss on sale of Inventory 68,400
c.
Dr Accounts Payable 258,000
Cr Cash 258,000
d.
Dr Kendra' Capital 42,500
(76,700-34,200)
Dr Cogley's Capital 149,775
(172,575-22,800)
Dr Mei' Capital 122,825
(134,225-11,400)
Cr Cash 315100
(42,400+149,775+122,825)
3)Preparation of the Journal entries to Record the payment of the liabilities
a.
Dr Cash 358,800
Dr Loss on Sale of Inventory 178,800
(358,800-537,500)
Cr Inventory 537,600
b.
Dr Kendra' Capital 89,400
(3/6×178,800)
Dr Cogley's Capital 59,600
(2/6×178,800)
Dr Mei' Capital 29,800
(1/6×178,800)
Cr Loss on sale of Inventory 178,800
(89,400+59,600+29,800)
c.
Dr Cash 12,700
Cr Kendra' Capital 12,700
(76,700 - 89,400)
d.
Dr Accounts Payable 258,000
Cr Cash 258,000
e.
Dr Cogley's Capital 17,100
(76,700-59,600)
Dr Mei' Capital 104,425
(134,225-29,800)
Cr Cash 121,525
(17,100+104,425)
4) Preparation of the Journal entries to Record the disbursement of the remaining cash to the partners
a.
Dr Cash 298,800
Dr Loss on Sale of Inventory 238,800
(298,800-537,600)
Cr Inventory 537,600
b.
Dr Kendra' Capital 119,400
(3/6×238,800)
Dr Cogley's Capital 79,600
(2/6×238,800)
Dr Mei' Capital 39,800
(1/6×238,800)
Cr Loss on sale of Inventory 238,800
(119,400+79,600+39,800)
c.
Dr Cogley's Capital 28,466
(2/3×42,700)
Dr Mei' Capital 14,234
(1/3×42,700)
Cr Kendra' Capital 42,700
(76,700 - 119,400)
d.
Dr Accounts Payable 258,000
Cr Cash 258,000
e.
Dr Cogley's Capital 64,509
(172,575 - 79,600 - 28,466)
Dr Mei' Capital 80,191
(134,225 - 39,800 - 14,234)
Cr Cash 144,700
(80,191+64,509)
2. Explain the following corporate/partnership documents and procedures for healthcare
organizations
Sole Proprietorship
Partnership
Corporation
Limited Liability Entities
Duval inc budgets direct materials at $1/liter and requires 4 liters per unit of finished product. April’s activities show usage of 832 liters to complete 196 units at a cost of $798.72. Calculate the direct materials price and quantity variances and indicate favorable or unfavorable results.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Duval inc budgets direct materials at $1/liter and requires 4 liters per unit of the finished product.
April’s activities show usage of 832 liters to complete 196 units at a cost of $798.72.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 798.72/832= $0.96
Direct material price variance= (1 - 0.96)*832
Direct material price variance= $33.28 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 4*196= 784
Direct material quantity variance= (784 - 832)*1
Direct material quantity variance= $48 unfavorable
The currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4. What is the money multiplier?
Answer: 1.67
Explanation:
From the question, we are informed that the currency drain ratio is 0.5 of deposits and the banks' reserve ratio is 0.4.
The money multiplier is calculated as:
(1 + the currency drain ratio)/( the reserve ratio + the currency drain ratio)
= (1 + 0.5)/(0.5 + 0.4)
= 1.5/0.9
= 1.67
Therefore, the money multiplier will be 1.67.
Statement of retained earnings. Use the data from the following financial statements in the popup window,
LOADING...
Partial Income Statement Year Ending 2014
Sales revenue
$350,200
Cost of goods sold
$141,800
Fixed costs
$42,900
Selling, general, and administrative expenses
$28,000
Depreciation
$46,200
Partial Balance Sheet 12/31/2013
ASSETS
LIABILITIES
Cash
$16,000
Notes payable
$14,000
Accounts receivable
$27,800
Accounts payable
$19,100
Inventories
$48,000
Long-term debt
$189,900
Fixed assets
$368,000
OWNERS' EQUITY
Accumulated depreciation (-)
$140,200
Retained earnings
Intangible assets
$82,000
Common stock
$131,900
Partial Balance Sheet 12/31/2014
ASSETS
LIABILITIES
Cash
$26,200
Notes payable
$11,900
Accounts receivable
$18,800
Accounts payable
$24,100
Inventories
$53,200
Long-term debt
$161,800
Fixed assets
$447,800
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$82,200
Common stock
$181,900
. The company paid interest expense of
$ 18 comma 700$18,700
for 2014 and had an overall tax rate of
40 %40%
for 2014. Complete the statement of retained earnings for2014, and determine the dividends paid last year.
The distributed earnings is
$nothing.
(Round to the nearest dollar.)
Complete the statement of retained earnings: (Round to the nearest dollar.)
Statement of Retained Earnings
Year Ending December 31, 2014
Beginning balance
$
Add net income
$
Subtract dividends
$
Ending balance
$
On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note and interest. (Use 360 days a year.)
Answer:
$8,670 and $170
Explanation:
The computation of the amount due at the time of maturity and the interest is shown below:
For interest, it is
= Received amount × rate of interest × number of months ÷ total number of months in a year
= $8,500 × 8% × 90 ÷ 360 days
= $170
And, the amount due at the time of maturity of the note is
= Received amount + interest
= $8,500 + $170
= $8,670
TB MC Qu. 9-371 Irving Corporation makes a product with ... Irving Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.2 hours $ 15.00 per hour $ 3.00 Variable overhead 0.2 hours $ 5.10 per hour $ 1.02 In November the company's budgeted production was 5,400 units, but the actual production was 5,200 units. The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802. The company applies variable overhead on the basis of direct labor-hours. The variable overhead rate variance for November is:
Answer:
Variable manufacturing overhead rate variance= $664 favorable
Explanation:
Giving the following information:
Variable overhead 0.2 hours $ 5.10 per hour
The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 7,802/1,660= $4.7
Variable manufacturing overhead rate variance= (5.1 - 4.7)*1,660
Variable manufacturing overhead rate variance= $664 favorable
TB MC Qu. 6-107 Mcmurtry Corporation sells a product for ... Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
The answer is 22%
Explanation:
Margin of Safety equals:
(Current sales level - break-even point) ÷ Current sales level
Break-even sales = $2,652,000 (10,608 units x $250 per unit)
Current sales = $3,400,000 (13,600 units x $250 per unit)
Therefore, Margin of Safety is:
($3,400,000 - $2,652,000) ÷ $3,400,000
= 0.22
Expressed as a percentage = 22%
Mullineaux Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent. What is Mullineaux WACC
Answer:
Mullineaux Corporation
WACC (Weighted Average Cost of Capital):
WACC = (11% of 70%) + (5% of 5%) + (7% of 25%) (1 - 35%)
= 0.077 + 0.0025 + 0.0175(65%)
= 0.09087
= 9.1%
Explanation:
Target Capital Structure:
Common stock = 70%
Preferred stock = 5%
Debt = 25%
Total = 100%
Cost of:
Equity = 11%
Preferred stock = 5%
Debt (pretax) = 7%
Tax rate = 35%
Mullineaux's WACC is the weighted average cost of its capital sources, including equity and debt. It means that Mullineaux Corporation has to weigh each class of capital based on their capital structure weights in order to calculate the average. This WACC therefore represents the hurdle rate which a project must meet for Mullineaux Corporation to accept or reject the project.
Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attractive, and trees create shade, provide oxygen, and a home for birds and squirrels. Thus the benefits to society are greater than the benefits to you. If the planting of trees is a private choice, you will plant too few trees relative to the socially optimal quantity, because the private value to you is less than the social value.
1. Which of the following would not help to correct this problem?
a. Subsidize consumer purchases of trees to plant.
b. Tax homeowners who plant trees.
c. Subsidize nurseries that sell trees for planting.
d. Have the government provide trees to homeowners.
e. All of the above would help to correct the problem.
2. If the government pays for a program to increase the planting of trees, who will win and lose from the program?
Winners will be:_________.
a. producers
b. society as a whole
c. taxpayers
d. consumers
Losers will be:_________.
a. producers
b. society as a whole
c. consumers
d. taxpayers
3. The gains to the winners will be ___________ the losses to the losers.
greater than - equal to - less than
Answer:
b. Tax homeowners who plant trees.
b. society as a whole
d. taxpayers
greater than
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
Taxing homeowners who plant trees would increase the cost of planting and thus discourage planting
Everyone would benefit from a project that generates positive externality.
If the government pays for a program to increase the planting of trees, the cost would be borne by taxpayers. So, they lose
Factors of production, such as physical capital, human capital, and technological knowledge, are crucial to economic growth. Therefore, institutions that foster strong incentives and create an environment favorable to the development of such factors of production are vital to economic growth. Which of the following are examples of such institutions?
A. Competitive and open markets.B. Free-riding culture.C. A dependable legal system.D. Political stability.E. Government expropriation.
Answer:
A. Competitive and open markets.
C. A dependable legal system.
D. Political stability.
Explanation:
A Competitive and open Market ensures that people have enough incentives to invest in the development of factors of production because it rewards that investment with a healthy return. In a Competitive market, unfair competition will not be present therefore people will get equal opportunities to make returns.
A dependable Legal System and Political Stability go hand in hand to ensure that investors will have enough faith in the system to want to invest in Factors of Production. If a country is stable politically and abides by the rule of law, an investor will be assured that when they invest, these investments will be protected by the powers that be and their returns will not be impacted by political upheavals and breaches of contract that cannot be rectified.
he management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $68,000 $126,000 $53,000 $247,000 Cost of goods sold 40,000 66,000 21,000 127,000 Contribution margin 28,000 60,000 32,000 120,000 Order and delivery processing 21,000 24,000 11,000 56,000 Rent (per sq. foot used) 2,000 5,000 4,000 11,000 Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000 If the cookbook product line had been discontinued prior to this year, the company would have reported ________.
Answer:
Giada's Book Store
The company would have reported a total profit of $19,000, which is $10,000 less.
Explanation:
a) Data and Calculations:
Income statement for the most current year:
Cookbook Travel Book Classics Total
Sales $68,000 $126,000 $53,000 $247,000
Cost of goods sold 40,000 66,000 21,000 127,000
Contribution margin 28,000 60,000 32,000 120,000
Order and delivery processing 21,000 24,000 11,000 56,000
Rent (per sq. foot used) 2,000 5,000 4,000 11,000
Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000
Corporate profit = $29,000
less allocated cookbook costs 10,000
Adjusted corporate profit = $19,000
b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.
"A customer who is short 1 ABC Jan 65 Call wishes to create a "short call spread." The second option position that the customer must take is:"
Answer:
long 1 ABC Jan 75 Call
Explanation:
This type of customer (or investor) is bearish about the market, i.e. he/she believes that the stock prices will drop. The investor will try to create a net credit position (the credit spread = $75 - $65). The maximum possible profit is created when the stock price falls below $65, and the maximum possible loss would occur if the price went above $75. This investor is a net seller, since it is a short call spread.
Cullumber Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer and Explanation:
The preparation of the analysis that depicts the total cost saving is presented below:
Particulars Make Buy Net Income or decrease
Variable
Manufacturing Cost $73,500 - $73,500
(14,700 × $5)
Fixed
Manufacturing cost $29,400 $29,400 -
(14,700 × $2)
Purchase price
(14,700 × $6) - $88,200 ($88,200)
Total annual cost $102,900 $117,600 ($14,700)
Based on the total annual cost the company should make the product as it saves the cost by $14,700
Buyers want to pay the lowest possible price, so why would they be willing to pay more than $12 for a pizza?
The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations. Ignoring other factors, this is likely to result in:
Answer: decrease in interest rates and an increase in inflation
Explanation:
From the question, we are informed that The Federal Reserve has been aggressively expanding the money supply by using repurchase agreements in its open market operations.
This will result in a reduction in the interest rate and since there's more money in circulation, it will bring about an increase in the prices of goods.
A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of %. If the manufacturer currently makes tons of clothespins per year, which sell at per ton, what will be the increase in revenue next year from the new equipment?
Answer:
$337,500
Explanation:
the questions was missing some numbers. I looked for similar questions and found:
increase in sales = 25%current annual production in tons = 75sales price per ton = $18,000increase in total sales = 75 tons x 25% = 18.75 tons
increase in revenue = 18.75 tons x $18,000 = $337,500
Since the question only asks for the increase in revenue, we do not have to calculate anything else.
Waterway Industries expects to purchase $260000 of materials in July and $270000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be
Answer:
Total cash disbursement= $267,500
Explanation:
Giving the following information:
Purchase:
July= $260,000
August= $270,000
Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.
Cash disbursement August:
Purchase in cash from August= 270,000*0.75= 202,500
Purchase on account July= 260,000*0.25= 65,000
Total cash disbursement= $267,500
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales 1 hour. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month?
a. $56,000.
b. $34,000.
c. $49,000.
d. $70,000.
Answer:
b. $34,000.
Explanation:
The computation of contribution margin is shown below:-
Particulars Bales Tales Wales
Seeling price $55 $78 $32
Variable cost $20 $50 $15
Contribution
margin $35 $28 $17
Required hour to
process 5 7 1
Contribution margin
per hour 7 4 17
Maximum contribution margin is
= Contribution margin per hour × number of machine hours
= 17 × 2,000
= $34,000
Variable versus absorption costing Colorado Business Tools, manufactures calculators. Costs incurred in making 9,500 calculators in February included 29,450 of fixed manufacturing overhead. The total absorption cost per calculator was $10.25.
Required:
a. Calculate the variable cost per calculator.
b. The ending inventory of pocket calculators was 750 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of February be different under variable costing than under absorption costing?
c. Express the pocket calculator cost in a cost formula.
Answer:
Variable cost per unit = 7.15
Difference in profit = $2,325
Cost formula : Y = 3.1 + 7.15X
Explanation:
Variable cost per calculator =Full cost - Fixed cost per unit
Full cost= $10.25
Fixed cost per unit = Total fixed costs / Number of units
= $29,450/9,500 units= 3.1
Variable cost per calculator = $10.25 - 3.1 = 7.15
Difference in profit = OAR (fixed cost per unit)× change in inventory
= 3.1 × 750 = $2,325
The absorption costing profit would be higher if there is an increase in increase at the end of the period and vice versa. Hence , an increase in inventory by 750 units would mean that absorption costing profit is higher by $2,325
Cost of calculator
Y = a +bx
Y = 3.1 + 7.15X
Y- total cost per unit
Fixed cost per unit = 3.1
Variable cost per unit = 7.15
Variable cost per unit = 7.15
Difference in profit = $2,325
Cost formula : Y = 3.1 + 7.15X
On February 20, services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock.
Make the necessary journal entry.
Answer: The solution has been attached
Explanation:
From the question, we are informed that on February 20, services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock.
The common stock was calculated as:
= 1000 × $25
= $25,000
The paid on capital in excess of the par common stock was calculated as:
= $60,000 - $25,000
= $35,000
The journal has been solved and attached.
A setback of affirmative action is that: a. those benefitting from affirmative action begin to experience self-doubts about their competence and merit. b. women and minorities usually feel deprived. c. employees start to overpower the management. d. people who are the subject of affirmative action are viewed as being more qualified than they actually are.
Answer: those benefitting from affirmative action begin to experience self-doubts about their competence and merit.
Explanation:
Affirmative action is a policy whereby the sex, color, national origin, religion etc are taken into consideration in order to increase the opportunities that are given to a particular set of people. It is used to create fairness.
A setback of affirmative action is that those benefitting from affirmative action begin to experience self-doubts about their competence and merit.
On January 1, 2020, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020.
Sales units: First quarter 5,200; second quarter 6,700; third quarter 7,000.
Ending raw materials inventory: 40% of the next quarter’s production requirements.
Ending finished goods inventory: 25% of the next quarter’s expected sales units.
Third-quarter production: 7,380 units.
The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound.
a) Prepare a production budget by quarters for the 6-month period ended June 30, 2020.
b) Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020.
Answer:
Hardin Company
Production budget
For the first semester of 2020
First quarter Second quarter Total
Sales units 5,200 6,700 11,900
Planned ending 1,675 1,750 1,750
inventory
Total production 6,875 8,450 13,650
required
- beginning inv. -1,300 -1,675 -1,300
Units to be 5,575 6,775 12,350
produced
Hardin Company
Raw materials budget
For the first semester of 2020
First quarter Second quarter Total
Units to be 5,575 6,775 12,350
produced
Materials required 3 3 3
per unit
Materials needed 16,725 20,325 37,050
for production
Planned ending 8,130 8,856 8,856
inventory
Total materials 24,855 29,181 45,906
needed
- beginning inv. -6,690 -8,130 -6,690
Materials to be 18,165 21,051 39,216
purchased
Cost per unit $5 $5 $5
Total cost of $90,825 $105,255 $196,080
direct materials
The Cutting Department at Blanc Company had beginning work in process inventory of 4,000 units, transferred out 9,000 units, and had 2,000 units in ending work in process inventory. The number of units started into production by the Cutting Department during the month is
Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
Instruments had retained earnings of at December 31, . Net income for totaled , and dividends declared for were . How much retained earnings should report at December 31, ?
Answer:
B. $ 490,000
Explanation:
According to the given situation, the computation of retained earning in the year end is shown below:-
Ending retained earning = Beginning Retained Earnings + Net Income for the year - Dividend
= $360,000 + $180,000 - $50,000
= $490,000
Therefore for computing the ending retained earning we simply applied the above formula.
Bob sells a car to Fred but Bob fails to mention that he disconnected the odometer, which reads 39,000 miles. Bob disconnected the odometer 20,000 miles ago. Which of the following is TRUE?
a. duress.
b. undue influence.
c. puffery.
d. Fraud in the inducement.
e. none of the above.
Answer:
d. Fraud in the inducement.
Explanation:
In this scenario, there was Fraud in the inducement. Fraud refers to the wrongful or criminal deception intended to result in financial or personal gain. Which in this case, by selling a car to Fred and claiming that it has 39,000 miles on (which it does not) they are deceiving Fred in order to make a sale. In doing so they are selling Fred a car that has 20,000 extra miles on it and possibly more internal damage than advertised by the Seller.
Ambiance Inc. buys back 3,000 shares of its $10 par value common stock from investors at $45 per share. This stock repurchase would be recorded with a debit to: A. Treasury Stock for $30,000, a debit to Additional Paid-in Capital for $105,000, and a credit to Cash for $135,000. B. Treasury Stock and a credit to Cash for $135,000. C. Cash and a credit to Treasury Stock for $135,000. D. Treasury Stock and a credit to Cash for $30,000.
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The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures:
Week Crew Size Yards Installed
1 4 97
2 3 71
3 4 98
4 2 54
5 3 63
6 2 52
a. Compute the labor productivity for each of the weeks. (Round your answers to 2 decimal places.)
Week Crew size Labor productivity
(Yards/Person)
1 4
2 3
3 4
4 2
5 3
6 2
b. Which crew size works best?
Answer:
a. Labor productivity is calculated as: Labor productivity = Total Yards Installed / Total Crew Size
Hence, the labor productivity for each week is;
Week 1 = 97 / 4 = 24.25
Week 2 = 71 / 3 = 23.67
Week 3 = 98 / 4 = 24.5
Week 4 = 54 / 2 = 27
Week 5 = 63 / 3 = 21
Week 6 = 52 / 2 = 26
b. A crew of size 2 works the best as they generate the highest labor productivity of 27. The crew with highest number generate a labor productivity of 24.5
B MC Qu. 7-200 Krepps Corporation produces ... Krepps Corporation produces a single product. Last year, Krepps manufactured 29,010 units and sold 23,900 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $214,674 $121,842 $243,684 $319, 110 Sales totaled $1,159,150 for the year, variable selling and administrative expenses totaled $126,670, and fixed selling and administrative expenses totaled $205,971. There was no beginning Inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending Inventory for the year would be valued at:_________ (Round your Intermediate calculations to 2 decimal places.)
a) $158.410
b) $228.410
c) $219.910
d) $185.910
Answer:
a) $158.41
Explanation:
Unit product cost under absorption costing = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead / Total manufactured units
= (214,674 + 121,842 + 243,684 + 319,110) /29,010
= $899,310 / 29,010 unit
= $31 per unit
Ending inventory = $29,010 - $23,900 / $31
= $5110 * 31 per unit
= $158,410
The following information is available for the first month of operations of Diacox Inc., a manufacturer of sports apparel:
Sales $2,050,000
Gross profit 490,000
Indirect labor 152,000
Indirect materials 45,000
Other factory overhead 515,000
Materials purchased 801,000
Total manufacturing costs for the period 1,710,000
Materials inventory, end of period 36,800
Using the given information, determine the following:__________.
Cost of goods sold
Direct materials cost
Direct labor cost
Answer:
Cost of goods sold= $1,560,000
Direct material cost= $764,200
Direct labor= $233,800
Explanation:
(A) Cost of goods sold= Sales -gross profit
Sales= $2,050,000
Gross profit= $490,000
Therefore, the cost of goods sold can be calculated as follows
= $2,050,000-$490,000
= $1,560,000
(B) Direct materials cost= Materials purchased-materials inventory ending
Material purchased= $801,000
Material inventory ending= $36,800
Therefore, the direct material cost can be calculated as follows
= $801,000-$36,800
= $764,200
(C) Direct labor= Total manufacturing cost-direct material cost-manufacturing overhead
Total manufacturing cost= $1,710,000
Direct material cost= $764,200
Manufacturing overhead= indirect labor+indirect material+other factory overhead
$152,000+$45,000+$515,000
= $712,000
Therefore, the direct labor can be calculated as follows
= $1,710,000-$764,200-$712,000
= $233,800
An investor with a balanced domestic portfolio who is looking for diversification and returns in the event that U.S. markets do not continue to expand, would be most interested in investing in which of the following?
a. Equities in Emerging Markets
b. Equities in U. S. companies with international appeal
c. Equities in U. S. companies involved in exports of their products
d. Equities in Italian wine exporting companies
Answer:
Option A, Equities in Emerging Markets, is the right answer.
Explanation:
A person who is not interested to invest in the U.S market or company then will not prefer the U.S companies for their diversification because the economic contraction in the U.S will affect these companies. He will be willing to invest in the equities in the emerging market. Moreover, he will not invest only in the foreign company because it will not provide him with the diversification. Therefore, the option “a” is correct.