Answer: B. You can create a new vendor from the product/service information screen
Explanation:
The statement that is true regarding the Preferred Vendor field in Product and Services items is that can create a new vendor from the product/service information screen.
Other statements given in the question such as adding more than one preferred vendor to each product/service item and Preferred vendors must be assigned to utilize Price rules are not true.
Therefore, option B is the correct answer.
On June 30, 2020, Sarasota Company issued $3,340,000 face value of 14%, 20-year bonds at $3,842,540, a yield of 12%. Sarasota uses the effective- interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
(a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) The issuance of the bonds on June 30, 2020.
(2) The payment of interest and the amortization of the premium on December 31, 2020.
(3) The payment of interest and the amortization of the premium on June 30, 2021.
(4) The payment of interest and the amortization of the premium on December 31, 2021.
No. Account Titles and Explanation Debit Credit Date
(1) June 30, 2020
(2) December 31, 2020
(3) June 30, 2021
Answer:
1) June 30, 2020, bonds are issued at a premium
Dr Cash 3,842,540
Cr Bonds payable 3,340,000
Cr Premium on bonds payable 502,540
2) December 31, 2020, first coupon payment
Dr Interest expense 230,552.40
Dr Premium on bonds payable 3,247.60
Cr Cash 233,800
amortization of bond premium = ($3,842,540 x 6%) - $233,800 = -$3,247.60
3) June 30, 2021, second coupon payment
Dr Interest expense 230,357.54
Dr Premium on bonds payable 3,442.46
Cr Cash 233,800
amortization of bond premium = ($3,839,292.40 x 6%) - $233,800 = -$3,442.46
4) December 31, 2021, third coupon payment
Dr Interest expense 230,151
Dr Premium on bonds payable 3,649
Cr Cash 233,800
amortization of bond premium = ($3,835,849.94 x 6%) - $233,800 = -$3,649
A company uses the weighted average method for inventory costing. At the start of a period the production department had 28,000 units in beginning Work in Process inventory which were 44% complete; the department completed and transferred 169,000 units. At the end of the period, 26,000 units were in the ending Work in Process inventory and are 79% complete. The production department had conversion costs in the beginning goods is process inventory of $103,000 and total conversion costs added during the period are $726,925. Compute the conversion cost per equivalent unit.
Answer:
$4.38 per unit
Explanation:
The computation of the conversion cost per equivalent unit is shown below:
The conversion cost per equivalent unit is
= Total conversion cost ÷ conversion cost units
where,
Total conversion cost is
= Beginning work in process + added cost
= $103,000 + $726,925
= $829,925
And, the conversion units is
= Transferred units + ending work in process units × completion percentage
= 169,000 units + 26,000 units × 0.79
= 169,000 units + 20,540 units
= 189,540 units
So, the conversion cost per unit is
= $829,925 ÷ 189,540 units
= $4.38 per unit
If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by
Answer: C. Reduce interest rates by increasing the money supply
Explanation:
If the Fed hopes to prevent unemployment and recession it needs to stimulate the economy to produce more goods and services as this will stave off recession while reducing unemployment as people will be needed to produce those goods and services.
The Fed can increase money supply which will lead to interest rates decreasing. When this happens more companies and individuals will be able to borrow funds as the cost of borrowing is low. These funds can then be invested in projects to increase production in the economy.
What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)b. What is the IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)c. What is the payback period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)d. What is the equivalent annual cost of the furnace? (Do not round intermediate calculations. Round your answer to 2 decimal places.)e. What is the equivalent annual savings derived from the furnace?
Answer:
a) NPV = $65,034.65
b) IRR = 27.71%
c) Payback period = 3.85 years
d) Equivalent annual cost = -$4,815.84
e) Equivalent annual saving = $12,454.79
Explanation:
The first part of the question is missing, so I looked it up:
"A new furnace for your small factory will cost $41,000 to install and will require ongoing maintenance expenditures of $3,500 a year. But it is far more fuel efficient than your old furnace and will reduce your consumption of heating oil by 3,800 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 10%."
since the question is a little bit long, I prepared an excel spreadsheet:
Consider the following transactions:________. a. Purchased equipment for $130,000 cash. b. issued S14 par preferred stock for cash. c. Cash received from sales to customers of 535,000. d. Cash paid to vendors, 517,000. e. Sold building for $19,000 gain for cash. f. Purchased common treasury shares for 528,000. g. Paid a notes payable with 1,250 of the company's common shares. Requirement Identify the category of the statement of cash flows in which each transaction would be reported.
Answer:
a. Investing Activities
b. Financing Activities
c. Operating Activities
d. Operating Activities
e. Investing Activities
f. Financing Activities
g. Non - Cash Financing Activities
Explanation:
The Cash Flow Statement is Prepared under the Following Categories :
1. Operating Activities
Reports the cash flows from the ordinary course of business. Example is cash collection from customers.
2. Investing Activities
Reports the cash flow from sale or acquisition of assets. Example is the sale of the Building.
3. Financing Activities
Reports the cash raised by issuing financial instruments and the repayment there-off. Example is the issue of Preference Shares for Cash.
Non - Cash Items
These are not reported in the Cash flow statement because they do not include movement of cash.
what should you use to clean and power tools?
What kinds of business transactions are NOT summarized in a sole proprietor's books? A. Credits. B. Expenses or deductions. C. Gross income. D. Sole proprietor's wages.
Answer:
D. Sole proprietor's wages.
Explanation:
The owner of the business is the sole proprietor on the other hand sole proprietor is not an employee. Therefore he receives no salaries as he is the person who is an owner of any company or an organization. Any sum he takes from the company is considered to be withdrawn amount.
Hence, Sole Proprietor's wages are not listed in the ledger of the sole proprietor. So, the correct answer is D.
An instrumental value is a desired end state or outcome that people seek to achieve.
A. True
B. False
Answer:
verdadero
Explanation:
Los valores instrumentales son aquellas formas de actuar específicas que una persona utiliza en un momento determinado para alcanzar un objetivo deseado
The instrumental value or worth of objects that provide a means to some desirable end, that satisfy some human needs and wants. Thus, instrumental value is a desired end state or outcome that people seek to achieve is true.
What is an instrumental value?Instrumental value is the value that something has because it helps us to get or achieve something else for example money. It is the value or worth of objects that provide a means to some desirable end, that satisfy human needs and wants.
In moral philosophy, instrumental and intrinsic value are the distinction between what is a means to an end and what is as an end in itself. Things are deemed to have instrumental value if they help one achieve a particular end.
Therefore, the statement mentioned in the question is true.
To learn more about instrumental value, click here:
https://brainly.com/question/14728234
#SPJ5
Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year?
a) Cute
b) Drat
c) Able
d) Crimp
Answer:
hello the Thrift segment customers table is missing hence i will give you a general guideline to the correct answer
answer : Of all the products listed, the product with the highest survey score in the month of December is the most competitive at the end of last year.
Explanation:
The product that was the most competitive at the end of last year is the product with the highest survey score for the month of December. this is because the more competitive a survey score of a product is, it signifies that more customers are interested in the product and that will make the product very competitive in the open market
Assume the real rate was 9.5% and the inflation rate was 4%. Using the Fisher Effect, what was the nominal rate?
Answer:
13.88%
Explanation:
According to the fisher effect
(1 + nominal rate) = (1 + real rate) x (1+ inflation rate)
= (1.095) x (1.04) = 1.1388
(1 + nominal rate) = 1.1388
Nominal rate = 1.1388 - 1 = 0.1388 = 13.88%
Marketing is the activity, set of institutions, and processes that create, capture, communicate, and ______ value.
Answer:
deliver
Explanation:
Marketing can be defined as a business strategy for an organization whose focus is to build a strong relationship with the consumer and deliver value. Through well-planned marketing strategies consistent with the company's objective, it is possible to attract and retain customers, in addition to increasing the company's position in the market.
Generating value for the company and the customer, is one of the focuses of marketing, this is a complex strategy that is achieved by aligning what the company is with the image that it intends to convey to the consumer.
Value is achieved through effective communication, good service, quality, image, company values, price, etc.
A company that builds value for the customer is a company that achieves reliability in the market, which guarantees greater consumer loyalty, greater market share and greater competitiveness, which consists of a successful strategy for achieving organizational objectives and goals.
Evaluating the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve which one of the following?
a) Determining whether the strategic fits present sizable opportunities to reduce costs by combining the performance of certain related activities (and thereby capture economies of scope) and whether these cost-savings might be big enough to give one or more of the company's businesses a cost-based competitive advantage over rivals
b) Evaluating whether the fits among the strategies of each business unit are sufficiently compatible to produce strong resource fit and generate the financial resources needed for each business to aggressively competitive advantage in their respective industries
c) Evaluating whether there is much competitive value to be gained from cross-bu collaboration to create valuable new resources or capabilities that could driv gains in performance
d) Determining whether there is much competitive value to be gained from cross-business transfer of technology, skills, or know-how to correct the resource/capability deficiencies of the diversified company's weaker businesses and thereby boost their performance
e) Determining whether there is much competitive benefit to be gained from cross-business sharing of either the well-respected brand name of a sister business or the corporate parent's umbrella brand name pursue and have success in achieving a sustainable e significant
Answer: evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance.
Explanation:
Related Diversification is a situation whereby a company expands its production line or markets bu producing a new product or in a case whereby a company has to penetrates a new market that is related to the business activity of the company.
It should be noted that the evaluation of the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance
Sheltie Company sells lamps and clocks. Consider the following per unit data: At the break-even point, what is the sales revenue for lamps when fixed costs are $149,952 for Sheltie Company?
Answer:
$351,450
Explanation:
some information was missing, so I looked it up:
lamps clocks
selling price 75 45
variable costs 48 30
contribution margin 27 15
sales mix 3 1
contribution margin per bundle = (3 x $27) + (1 x $15) = $96 per bundle
break even point (in bundles) = $149,952 / $96 = 1,562 bundles which represents 4,686 lamps and 1,562 clocks
sales revenue for lamps at break even point = 4,686 lamps x $75 per lamp = $351,450
When scheduling appointments, it's necessary to schedule adequate time to ensure an appropriate
A. full schedule.
B. patient drift.
C. patient flow.
D. provider preference.
Answer:
a full schedule
Explanation:
the answe
During May, Bergen Company accumulated 2,500 hours of direct labor costs on job 200 and 3,000 labor hours on job 305. The total direct labor incurred at a rate of $28 per direct labor hour for job 200 and $24 per direct labor hour for job 305. Bergen Company estimates that total factory overhead costs will be $620,000 for the year. direct labor hours are estimated to be 80,000. For Bergen Company,
(a) determine the predetermined factory overhead rate using direct labor hours as the activity base
(b) determine the amount of factory overhead applied to jobs 200 and 305 in May using the information on direct labor hours.
(c) journalize the the entry to record the flow of labor costs into production during May
Display keyboard shortcuts for Rich Content Editor
Answer:
a. $7.75 per direct labor hour.
b. Job 200 = $19,375 and Job 305 = $23,250
c. Journal
Work In Process : Job 200 $19,375 (debit)
Work In Process : Job 200 $23,250 (debit)
Overheads $42,625 (credit)
Explanation:
Predetermined factory overhead rate = Budgeted Fixed Costs ÷ Estimated Direct Labor Hours
= $620,000 ÷ 80,000
= $7.75 per direct labor hour.
Application of Overheads.
Job 200 = Actual Labor hours × Predetermined factory overhead rate
= 2,500 hours × $7.75
= $19,375
Job 305 = Actual Labor hours × Predetermined factory overhead rate
= 3,000 hours × $7.75
= $23,250
Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
Answer:
Real Surplus is $200 billion
Explanation:
Inflation = 14%
Debt = $4 trillion = $4,000 billion
Nominal deficit = $360 billion
Real Deficit = Nominal deficit - (Inflation*Debt)
= $360 - 14% * 4,000
= $360 - 560
= -$200
Hence, the answer is Real Surplus of $200 billion
True or false: In a stock redemption, the stock redeemed by the corporation must be immediately canceled.
Answer: False
Explanation:
A stock redemption refers to a scenario where a company calls back its shares from shareholders. Not all shares allow for this to happen as there would have to be a provision in the stock that allows it to happen.
When a company performs a redemption, they do not have to cancel the shares immediately. They can either choose to retire them or they can keep them in reserve as treasury stock.
A firm has $600,000 in current assets and $150,000 in current liabilities. Which of the following is correct if it uses cash to pay off $50,000 in accounts payable?
1) Current ratio will increase to 5.0.
2) Net working capital will increase to $500,000.
3) Current ratio will decrease.
4) Net working capital will not change.
Answer:
4) Net working capital will not change.
Explanation:
The best answer to the question is the 4th option. The net working capital will not be changed if company would be usingcash to pay off their accounts payable. Also the difference that exists between current assets and current liabilities will also stay the same way as it was before. current ratio will go up to 5.5.
Thank you.
Suppose a firm is producing in the long run. When it produces 2,000 units of output, its total cost is $4,000. When it produces 2,300 units of output, its total cost is $4,100, and when it produces 2,600 units of output, its total cost is $4,200.
This firm is experiencing (constant, decreasing, increasing, increasing then decreasing, decreasing then increasing) returns to scale.?
Answer:
This firm is experiencing Decreasing return to scale
Explanation:
ATC = TC/Q
ATC (2,000) = $4,000/2000 unit = 2
ATC (2,300) = $4,100/2,300 unit = 1.78
ATC (2,600) = $4,200/2600 unit = 1.62
The ATC is decreasing, hence it is decreasing return to scale.
An example of a good that is nonexclusive but rival is A. national defense. B. public radio. C. hunting in a public game area. D. a pay-TV channel.
Answer:
C. hunting in a public game area
Explanation:
A good is nonexclusive if it is accessible to all.
a rival good is something that can only be possessed or consumed by a single user.
If someone hunts at a public game area, and kills an animal, the person that kills it , possesses the animal.
Answer:
C. hunting in a public game area.
Explanation:
A nonexclusive good is one that cannot be possessed Soley by one person, but is used by many people. While exclusive goods are used only by one person. For example if a person buys a car he can restrict it's use to only himself so it is an exclusive good.
A rival good is one whose use affects the rate of use by others. For example at a gas station the petrol bought by one person reduces the amount another can buy.
Hunting in a public game arena is an example of a nonexclusive but rival good.
The game arena is open to everyone, but when a hunter kills game it reduces the number of game other hunters can kill.
$25,000, and you expect it to appreciate 10 percent per year in value, how much will your land be worth 10 years
Answer:
$64,843.56
Explanation:
If you purchase a parcel of land today for $25,000 and you expect it to appreciate 10 percent per year in value, how much will your land be worth 10 years from now.
Appreciation value = (1+r)^n × PV
Where,
r= appreciation rate = 10%
n= number of years = 10 years
PV = present value = $25,000
Appreciation value = (1+r)^n × PV
= (1 + 10%)^10 × 25,000
= (1 + 0.1) ^10 × 25,000
= (1.1)^10 × 25,000
= 2.5937424601 × 25,000
= 64,843.5615025
Approximately $64,843.56
The land will be worth $64,843.56 in 10 years from now
Agent Emily's listing was sold by another agent in her brokerage. Emily is entitled to a:______.a. selling side commission.
b. neutral party commission.
c. equal party commission.
d. listing side commission.
Maria Maya Good X Good Y Good X Good Y 90 0 60 0 60 30 40 10 30 60 20 20 0 90 0 30 Refer to Exhibit 3. For Maya, the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.
Answer:
The answer is
0.5 units of Good Y
Explanation:
The tabulated data is not properly arranged, let me try to arrange the data:
Maria Maya
Good X Good Y Good X Good Y
90 0 60 0
60 30 40 10
30 60 20 20
0 90 0 30
Opportunity cost refer to the amount of benefit given up by the choosing of an alternative. In this example, as quantity of Good Y increased for Maya, the quantity of Good X reduced, hence Good X was given up to acquire Good Y
To calculate the oppotunity cost for producing one unit of good X for Maya, we will find the ratio of the difference between the highest and the lowest quatities for each good.
Good X ; (Highest quantity) - (Lowerst quantity) = 60 - 0 = 60
Good Y ; (Highest quantity) - (Lowerst quantity) = 30 - 0 = 30
∴ Opportunity cost of producing one unit of good X= 30 ÷ 60 = 0.5 units of good Y
This means that for every one unit of X produced, 0.5 unit of Y is given up in the process
Ray Steen recently started a business. During the first few days of operation, Mr. Steen transferred $100,000 from his personal account into a business account for a company he named Steen Enterprises. Steen Enterprises borrowed $60,000 from First Bank. Mr. Steen's father-in- law, Stan Rhoades, invested $75,000 into the business for which he received a 25 percent owner- ship interest. Steen Enterprises purchased a building from Zoro Realty Company. The building cost $150,000 cash. Steen Enterprises earned $56,000 in revenue from the company's customers and paid its employees $31,000 for salaries expense. Required Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you identify. g
Answer:
1. Identification of mentioned entities:
a. Ray Steen and Steen Enterprises
b. Steen Enterprises and Ray Steen
c. First Bank and Steen Enterprises
d. Stan Rhoades and Steen Enterprises
e. Zoro Realty Company and Steen Enterprises
f. Steen Enterprises, Customers, and Employees
2. Effects on Entities' Cash Accounts:
a. Ray Steen's personal Cash Account decreased and Steen Enterprises' increased by $100,000
b. Steen Enterprises' Cash Account increased as above.
c. First Bank's Cash Account decreased and Steen Enterprises' increased by $60,000 respectively.
d. Stan Rhoades' Cash Account decreased and Steen Enterprises' increased by $75,000
e. Zoro Realty Company's Cash Account increased while Steen Enterprises' decreased by $150,000.
f. Steen Enterprises, Customers, and Employees: Cash Account of Steen Enterprises increased and Customers' decreased by $56,000 respectively. Also the cash account of Steen Enterprises decreased and Employees' cash accounts increased by $31,000 respectively.
Explanation:
A legal entity is a person (like Ray Steen, Stan Rhoades, Employees, and Customers, etc), department, team, corporation (First Bank, Zoro Realty Company, and Steen Enterprises), cooperative, partnership, or other groups with whom it is possible to conduct business where economic resources are exchanged between economic agents (entities) undertaking economic events. This shows that in every business transaction, three important things are involved. They are resources, events, and agents. The resources describe the monetary value of assets (economic resources) that are exchanged between the agents. The events are the transactions while the agents are the entities (different personalities) that are involved in the exchange. This is fully developed in the REA model of accounting system.
Duddy Kravitz owns the Saint Viateur Bagel store. His world famous bagels are hand rolled, boiled in honey-water and baked in a wood-burning oven. The store sells 5,000 bagels per day and is open 365 days of the year. The bagels are so popular that, on weekends, the customer line-up runs half-way down the block. Uncle Benjy thinks that the wood-fired oven should be replaced by a modern gas oven, which would reduce costs by $0.02 per bagel. A new oven would cost $105,000.Duddy is considering Uncle Benjy's idea, but he only plans to be in business for another two years. The bagels are sold for $0.75 each. The cost of producing each bagel with the wood-burning oven is $0.50 which includes labor and raw materials. The current oven was purchased thirty years ago for $20,000. It could be sold today for $5,000 and will be worth $3,000 in two years. A new oven costs $105,000 today and could be sold for $55,000 in two years. Duddy's cost of capital is 9%. Assume that investment cash flows occur immediately, and that sales and production costs occur at the end of the year. Assume that both ovens are classified as 10-year property and depreciated using the MACRS system. The tax rate is 35%.What are the terminal year cash flows?a. 30,340b. $36,500c. $62,260d. $90,600e. $94,500
Answer:
No option is even close. With yearly revenues of $1,368,750 and a contribution margin ratio of 36% and 33.33%, the cash flows are in the hundreds of thousands of $.
Explanation:
new oven:
contribution margin per bagel = $0.75 - $0.48 = $0.27
units sold per year = 5,000 x 365 = 1,825,000 x $0.27 = $492,750
initial outlay = $105,000 - [$5,000 x (1 - 35%)] = $103,250
depreciation year 1 = 10% x $105,000 = $10,500
depreciation year 2 = 18% x $105,000 = $18,900
after tax salvage value = $55,000 - [($55,000 - $75,600) x 35%] = $62,210
cash flow year 1 = [($492,750 - $10,500) x (1 - 35%)] + $10,500 = $323,962.50
cash flow year 2 (terminal cash flow) = [($492,750 - $18,900) x (1 - 35%)] + $18,900 + $62,210 = $389,112.50
old oven:
contribution margin per bagel = $0.75 - $0.50 = $0.25
units sold per year = 5,000 x 365 = 1,825,000 x $0.25 = $456,250
initial outlay = $0, and since the oven has been completely depreciated already, the depreciation expense is $0.
after tax salvage value = $3,000 x (1 - 35%) = $1,950
cash flow year 1 = $456,250 x (1 - 35%) = $296,562.50
cash flow year 2 (terminal cash flow) = [$456,250 x (1 - 35%)] + $1,950 = $298,512.50
Vernon theorizes that as the market in the United States and other advanced nations matures, _____ becomes the main competitive weapon.
Answer:
Explanation:
The product becomes more standardized, and price becomes the main competitive weapon. Meaning that in a mature nation resources and opportunities are plentiful and companies are easily able to enter a market and compete with existing markets by producing the same products. Doing so would saturate the market with similar products, causing competition to depend strictly on pricing.
"You want to invest your savings of $20,000 in government securities for the next 2 years. Currently, you can invest either in a security that pays interest of 8% per year for the next 2 years or in a security that matures in 1 year but pays only 6% interest. If you make the latter choice, you would then reinvest your savings at the end of the first year for another year. Why might you choose to make the investment in the 1-year security that pays an interest rate of only 6%, as opposed to investing in the 2-year security paying 8%
Answer:
Explanation:
In the former case that is investment in security that pays interest of 8% per year for the next 2 years , there is provision of fixed interest rate . That means one can be assured of interest rate of 8 % for two years but he can not get benefit of market fluctuation if interest rate if it rises above 8 % after one year .
In case of investment in security that matures in 1 year but pays only 6% interest , one can take the benefit of market fluctuation if interest rate rises above 8 % . So if there is likelihood that interest rate can rise above 8 % in future , one should invest in 6% security for one year and reinvest it after one year , in the same security or in other security which fetches higher rate of interest .
Apart from that , if there is a contingent liability of paying after one year , one can not go in for 2 year security as it will have to break prematurely , that will result in loss of interest .
So due to situation described above, one should prefer investment in one year security .
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 30,000 Indirect materials included in manufacturing overhead $ 5,000 Direct labor $ 58,000 Manufacturing overhead applied to work in process $ 87,000 Underapplied overhead $ 4,000 Inventories Beginning Ending Raw materials $ 12,000 $ 18,000 Work in process $ 56,000 $ 65,000 Finished goods $ 35,000 $ 42,000 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Answer:
Primare Corporation
Cost of Goods Sold:
Raw materials:
Beginning Inventory $12,000
Purchase 30,000
Ending Inventory (18,000)
Cost of raw materials $24,000
Direct labor 58,000
Beginning Work in process 56,000
Ending Work in process (65,000)
Manufacturing overhead 87,000
Cost of goods produced $160,000
Beginning Finished goods 35,000
Ending Finished goods (42,000)
Underapplied overhead 4,000
Cost of goods sold $157,000
Explanation:
a) Data and Calculations:
Raw materials purchase $ 30,000
Direct labor $ 58,000
Manufacturing overhead $ 87,000
Underapplied overhead $ 4,000
Inventories Beginning Ending
Raw materials $ 12,000 $ 18,000
Work in process 56,000 65,000
Finished goods 35,000 42,000
b) The cost of goods sold is the addition of the cost of production with the beginning inventory of finished goods and the ending inventory of finished goods. The underapplied overhead is added to the cost of goods sold.
"is the curse of mature markets whereby products lack any real means of differentiation and customers see competing products as offering roughly the same benefits."
Answer:
Commoditization
Explanation:
This is known as commoditization. Commoditization can be defined as a a process whereby goods and services can no longer be distinguished from similar offerings that is being made by a rival company. In a particular category such goods are so alike that for you to find the difference between them, you do so via the price tags
In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 25%. Data related to the reversal of the excess tax deduction for depreciation follow:_______. Year Reversal of excess tax deduction Enacted tax rates2017 $10,000 30%2018 20,000 30%2019 40,000 35%2020 50,000 35% There are no other temporary differences. Taxable income in 2016 is $68,000. Tow expects to report profits (rather than losses) for tax purposes for all future years. What is 2016 Income Tax Expense? a. $57,500 b. $47,000 c. $84,500 d. $53,000 e. $80,000
Answer:
A.. $57,500
Explanation:
Calculation for 2016 Income Tax Expense?
First step is to calculate the deferred tax liability
Year Reversal Tax rates Deferred Tax Liability
2017 $10,000 30% $3,000
2018 $20,000 30% $6,000
2019 $40,000 35% $14,000
2020 $50,000 35% $17,500
TOTAL Deferred tax liability $40,500
Second step is to find the Income tax on current year taxable income
Income tax= 68,000 * 25%
Income tax = 17,000
Last step is to find the total income tax expense to be recorded in the year 2016
Using this formula
Income tax expense= Deferred tax liability +Income tax
Let plug in the formula
Income tax expense=$40,500+$17,000
Income tax expense= $57,500
Therefore the Income Tax Expense for the year 2016 will be $57,500