A company began its fiscal year with inventory of $191,000. Purchases and cost of goods sold for the year were $950,000 and $984,000, respectively. What was the amount of ending inventory

Answers

Answer 1

Answer:

Ending inventory= $157,000

Explanation:

Giving the following information:

Beginning inventory= $191,000.

Purchases and cost of goods sold for the year were $950,000 and $984,000.

To calculate the ending inventory, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

984,000= 191,000 + 950,000 - ending inventory

984,000= 1,141,000 - ending inventory

Ending inventory= $157,000


Related Questions

The city football stadium is dangerous and there is a need to build a new city football stadium for both safety and size reasons. The city must have land adjoining the current stadium to enlarge. A condemnation proceeding to take the land is initiated against the land owner. This is an example of:

Answers

Answer:

Police power.

Explanation:

This form of power is sternly found in the law of the united states of america. It was been arranged and strongly enforced in the tenth amendment of the constitution. This law is said to be carried out by the higher authorities or state to protect and enforce order within their range for benefit of the environment, people and inhabitants.

And it is generally known that the states/authorities can possibly come all out to enforce this law no matter how hard they seem to come against the individual, provided his/her humans rights are not been tampered.

Paige Company estimates that unit sales will be 10,600 in quarter 1, 12,600 in quarter 2, 14,500 in quarter 3, and 18,500 in quarter 4. Using a sales price of $81 per unit.Prepare the sales budget by quarters for the year ending December 31, 2020.

Answers

Answer and Explanation:

The preparation of the sales budget for the year ending Dec 31,2020 is presented below:

                                               Paige company

                                               Sales budget

                         For the year ending December 31, 2020

                                              Quarters

Particulars          1                    2                   3                     4                   Year  

Unit sales        10,600          12,600          14,500             18,500         56,200

                         units               units            units                 units          units

Sales price      $81                   $81              $81                   $81            $81

Estimated

Sales value     $858,600    $1,020,600    $1,174,500     $1,498,500  $4,552,200

We simply multiplied the units sales with the sales price so that the estimated sales value could come

Tiptop Flight School offers flying lessons at a small municipal airport. The school's owner and the manager have been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below:

Tiptop Flight School
Variance Report
For the Month Ended July 31
Actual Results Planning Budget Variances
Lessons 155 150
Revenue $33,900 $33,000 $900 F
Expenses:
Instructor wages 9,870 9,750 120 U
Aircraft depreciation 5,890 5,700 190 U
Fuel 2,750 2,250 500 U
Maintenance 2,450 2,330 120 U
Ground facility expenses 1,540 1,550 (10) F
Administration 3,320 3,390 (70) F
Total expense 25,820 24,970 850 U
Net operating income $8,080 $8,030 $50 F
After several months of using such variance reports, the owner has become frustrated. For example. she is quite confident that instructor wages were very tightly controlled in July. but the report shows an unfavorable variance. The planning budget was developed using the following formulas, where q is the number of lessons sold:

Cost Formulas
Revenue $220 q
Instructor wages $65 q
Aircraft depreciation $38 q
Fuel $15 q
Maintenance $530 + $12 q
Ground facility expenses $1,250 + $2 q
Administration $3,240 + $1 q
Required:

1. Should the owner feel frustrated with the variance reports? Explain.

2. Prepare a flexible budget performance report for the school for July.

3. Evaluate the school's performance for July.

Answers

Answer:

1. Should the owner feel frustrated with the variance reports?

Yes, because they were incomplete. Since the quantity of lessons is larger than the budgeted, you must prepare a flexible budget. The flexible budget shows that there exists a total unfavorable variance of $385. E.g. , regarding the pilots' salaries, there is a favorable variance in the flexible budget.

2. Prepare a flexible budget performance report for the school for July.

I used an excel spreadsheet to prepare a flexible budget and I attached it.

3. Evaluate the school's performance for July.

The school's performance is neither good or bad because it has higher revenues than estimated (even though it lowered its sales price), but their costs are also higher than budgeted. They are doing a good job at selling their lessons, but a bad job of keeping costs under control. The overall variance is not that significant, but it is still unfavorable. Their fuel expenses should be controlled since the largest unfavorable variance results from spending too much fuel.

Explanation:

                                                    Actual            Planning        Variances

                                                    Results           Budget

Lessons                                         155                 150                     5 F

Revenue                                   $33,900           $33,000          $900 F

Expenses:

Instructor wages                $9,870              $9,750          $120 U Aircraft depreciation         $5,890              $5,700          $190 U Fuel                                     $2,750             $2,250          $500 U Maintenance                      $2,450             $2,330           $120 U Ground facility expenses   $1,540              $1,550            ($10) F Administration                    $3,320              $3,390           ($70) F Total expense                  $25,820            $24,970          $850 U

Net operating income                $8,080              $8,030            $50 F

1. The school proprietor should not feel frustrated with the variance reports as they are meant to provide guidance and not a feeder for frustration.  A careful review of the variance reports will help the owner to understand the cost dynamics for improvements.

2. The flexible budget performance report for the school in the month of July is as follows:

Tiptop Flight School

Flexible Budget Performance Report

For the Month Ended July 31

                                         Actual Results   Flexible Budget   Variances

Lessons                                    155                       155

Revenue                                 $33,900            $34,100            $200 U

Expenses:

Instructor wages                        9,870                10,075              205 F

Aircraft depreciation                 5,890                 5,890               0     None

Fuel                                            2,750                 2,325             (425) U

Maintenance                             2,450                 2,390               (60) U

Ground facility expenses         1,540                  1,560                20  F

Administration                         3,320                  3,395                75 F

Total expense                       25,820                25,635              185 U

Net operating income       $8,080               $8,465            $385 U

3. The school's performance in July is not encouraging based on the flexible budget.  There may be the need for the owner to review the price per lesson upward, keeping customers' effective demand in mind.

Data and Calculations:

The actual number of lessons for July, q = 155

Flexing the Budget:

Revenue $220 q = $34,100

Instructor wages $65 q = $10,075

Aircraft depreciation $38 q = $5,890

Fuel $15 q = $2,325

Maintenance $530 + $12 q = $2,390

Ground facility expenses $1,250 + $2 q = $1,560

Administration $3,240 + $1 q = $3,395

Learn more: https://brainly.com/question/25301264

Delta Corporation (a U.S. company) has several transactions with foreign entities. On December 2, 20X1, Delta bought items from foreign company at a price of 300,000 yen when the direct exchange rate was 1 yen = $1.17. Delta made payment to the foreign company on December 20, 20X1, when the exchange rate had changed to 1 yen = $1.21. The foreign exchange gain or loss reported by Delta from this transaction will be:

Answers

Answer:

$12,000 gain

Explanation:

From the above information given the yen has depreciated relative to the dollar amount between the date of the transaction and the date of payment.

The Amount of the gain will be:

Price = 300,000

Direct exchange rate( 1 yen )= $1.17

Change in exchange rate ( 1 yen)= $1.21

Hence:

($1.21x 300,000) – ($1.17x 300,000)

=$363,000-$351,000

=$12,000 gain

2. Which of the following is an example of the globalization of production? a. Pepsico sells the same brand of pringles in multiple markets but with flavors talilored to local tastes. b. The World Trade Organization forces Venezuela to change its gasoline grade to conform to the US Clean Air Act. c. Ford manufactures a car in Michigan, but uses parts sourced from 27 countries. d. All of the above.

Answers

Answer: Ford manufactures a car in Michigan, but uses parts sourced from 27 countries

Explanation:

Globalization is the process by which businesses or organizations develop international influence or a situation whereby they start operating on international scale.

Globalization of production has to do with the producers of final finished goods relocating and moving to other parts of the world in order to source for the necessary raw materials or equipments needed to complete a product and assemble all of them at their facility.

Based on this definition, Ford manufactures a car in Michigan, but uses parts sourced from 27 countries is the right answer.

Answer: c. Ford manufactures a car in Michigan, but uses parts sourced from 27 countries

Explanation:

Globalization of production entails when companies source or gather best  materials or services from other countries  in order to incorporate  it to the manufacturing or establishment of   the final product in another country so as to get the best reduced cost in production with best materials or services.

Ford manufactures a car in Michigan, but uses parts sourced from 27 countries follows the Globalization of production.

A firm is about to undertake the manufacture of a product, and is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per unit.a. At what output does the large intermittent process become cheaper than the small one?b. At what output does the repetitive process become cheaper than the larger intermittent process?

Answers

Answer:

A.$1,125

B.$38,000

Explanation:

Using this formula:

Fixed Cost of Process B- Fixed Cost of Process A ÷Unit Variable cost of Process A – Unit Variable Cost of Process B

a.

Where:

Fixed Cost =$12,000

Fixed Cost =$3,000

Unit Variable =10

Unit Variable =2

Hence:

(12,000-3,000)/ (10-2)

=$9,000/8

= $1,125

This means that large intermittent process become cheaper than the small one by $1,125

b.

Fixed Cost =$50,000

Fixed Cost =$12,000

Unit Variable =2

Unit Variable =1

(50,000-12,000)/ (2-1)

=$38,000/1

= 38,000

This means that repetitive process become cheaper than the larger intermittent process by $38,000

Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in 2009. If 4 apples were produced in 2002 and 5 in 2009, whereas 3 oranges were produced in 2002 and 5 in 2009, then the GDP deflator in 2009, using a base year of 2002, was approximately:________.
A) 1.5.
B) 1.7.
C) 1.9.
D) 2.0.

Answers

Answer:

B) 1.7

Explanation:

GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.

GDP deflator in 2009 will be:

Norminal GDP

Cost of apple= $1 in 2009

Apple produced =5 in 2009

Cost of oranges= $1.50 in 2009.

Orange produce= 5 in 2009

$1.00*(5)+$1.50*(5)

=5+7.5

=$12.50

Real GDP

Cost of apple= $0.50 in 2002

Apple produced =5 in 2002

Cost of oranges= $1 in 2002

Orange produce= 5 in 2002

0.50*(5)+$1.00*(5)

=2.5+5

=$7.50

GDP deflator = Nominal GDP/Real GDP)

=$12.50/$7.50

=1.666

approximately 1.7

You are in charge of a project that has a degree of operating leverage of 1.24. What will happen to the operating cash flows if the number of units you sell increase by 3.8 percent? Group of answer choices 4.71 percent increase 4.71 percent decrease 3.06 percent increase 3.06 percent decrease

Answers

Answer:

4.71 percent increase

Explanation:

The increase in the number of units sold is 3.8%

Degree of operating leverage is 1.24

Therefore, the operating cash flow can be calculated as follows:

Increase in the number of units×degree of operating leverage

= 3.8/100×1.24

= 0.038×1.24

= 0.0471×100

= 4.71%

Hence there is a 4.71 percent increase in the operating cash flow

You own a portfolio that has a total value of $210,000 and it is invested in Stock D with a beta of .87 and Stock E with a beta of 1.38. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D

Answers

Answer:

The dollar amount of the investment in Stock D is (x=$156470.59)

Explanation:

Let assume investment in Stock D = $x

Hence investment in Stock E = (210,000-x)

Portfolio beta=Respective betas * Respective investment weights

1= (x/210,000*0.87)  + (210,000-x) /210,000*1.38[Beta of market=1]

(1*210,000) = 0.87x + 289800 -1.38x

290,000=0.87x+289800-1.38x

Hence x=(289800-210,000)/(1.38-0.87)

x= 79,800 / 0.51

x=156470.5882

x=$156470.59

Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):
Investor Services Institutional Services
Revenues $3,016 $1,523
Income from operations 847 523
Depreciation 133 54
A. How does a brokerage company like Schwab define the "Investor Services" and "Institutional Services" segments? Use the Internet to develop your answer
The segment serves the retail customer, you and me. These are the brokerage, Internet, and mutual fund services used by individual investors. The segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators
B. Provide a specific example of a variable and fixed cost in the "Investor Services" segment.
Variable costs in the "Investor Services" segment include: Check all that apply.
Depreciation on brokerage office equipment, such as computers and computer networks
Depreciation on brokerage offices
Property taxes on brokerage offices
Commissions to brokers
Fees paid to exchanges for executing trades
Transaction fees incurred by Schwab mutual funds to purchase and sell shares
Fixed costs in the "Investor Services" segment include: Check all that apply.
Depreciation on brokerage office equipment, such as computers and computer networks
Commissions to brokers
Property taxes on brokerage offices
Depreciation on brokerage offices
Fees paid to exchanges for executing trades
Transaction fees incurred by Schwab mutual funds to purchase and sell shares
C. Estimate the contribution margin (in millions) for each segment, assuming depreciation represents the majority of fixed costs.
Investor Services Institutional Services
Estimated contribution margin $_____________ $________________
D. If Schwab decided to sell its "Institutional Services" accounts to another company, estimate how much operating income would decline (in millions). $___________

Answers

Answer: The answer is provided below

Explanation:

A. A brokerage company such as Schwab will define the "Investor Services" and the "Institutional Services" segments like this:

Investor services- This will be:

• Real brokerage and also banking services to the individual investors.

• Other retirement plan to the corporations.

Institutional services- This will be:

• Marketing support to the independent investment advisors.

• Trading tools to the independent investment advisors.

B. The variable costs in the "Investor Services" segment will include:

• Fees paid to exchanges for executing trades

• Transaction fees incurred by Schwab mutual funds to buy and sell shares

• Commissions to brokers.

The fixed costs in the "Investor Services" segment will include:

• Depreciation on brokerage offices.

• Depreciation on the brokerage office equipment, like computers and computer networks.

The explanation for C and D has been attached. For D, the operating income would decline by $577 million.

Arthur sustained an injury to his back. Arthur claimed the injury was suffered at work and filed a claim for workers' compensation benefits. The employer opposed this claim, saying the injury, if real, was the result of a congenital condition. In accordance with the statute, a hearing was held before the Workers' Compensation Board, which ruled against Arthur. Arthur became disgusted with the hearing officer and the proceedings because Arthur felt that the hearing officer did not like him. Arthur has consulted an attorney seeking to sue for workers' compensation benefits. An appeal is available within the agency, but Arthur wants to go directly to court because he feels that the agency appeal would be useless. Discuss the merits of this strategy.

Answers

Answer: Arthur can't bring a lawsuit to help overturn the ruling of the Worker’s Compensation Board,

Explanation:

From the question, Arthur got a back injury and Arthur claimed that the injury was suffered at work and therefore filed a claim for workers compensation benefits while the employer opposed this claim, by saying that the injury was due to a congenital condition.

A hearing was held before the Workers' Compensation Board, and the board ruled against Arthur. Arthur became disgusted and wants to go directly to the court because as he feels an agency isn't worth it.

The merits of this strategy are that

Arthur can't bring a lawsuit in order to help overturn the findings the Worker’s Compensation Board made, because Arthur failed to exhaust the available administrative remedies he had. Therefore, the lawsuit will not be successful and would therefore not be heard by the courts.

An employee was terminated for withholding information related to the purchase of new software. The employee was aware that it was buggy software but did not disclose this to his employers since the software manufacturer had bribed him. Prior to termination, the employee was a(n) _____ in his company's buying center. initiator decider gatekeeper influencer

Answers

Answer:

Influencers

Explanation:

In simple words, influencer in a buying center refers to the individual in authority who is responsible for checking the technical aspects of the commodity procured.

These are the tech personnel who are authorized to compare different products regarding their characteristics to best suit the needs of the center. They play crucial role when it comes to advanced technology etc.

Someone claiming to be an employee of the employer for whom Bernie works has been handing out flyers denigrating the employer at a local shopping mall. Bernie's employer had its security force search all of the employees' lockers to see if they had any of the flyers. Bernie can file an action against his employer under the 4th amendment if

Answers

Answer:

1 if employer is the federal government

2. If employer is the state or local government

Explanation:

Under the 4th amendment, Bernie can file an action against his employer if the employer is a state or local government and also if his employer is a federal government. Bernie can do this because the 4th amendment only applies to government employers and not private employers.

Suppose the income elasticity of demand is -0.5 for good X. This implies that a 5% decrease in income will cause the quantity demanded of good X to a. increase by 2.5%, and X is an inferior good. b. decrease by 2.5% and X is a normal good. c. increase by 10% and X is an inferior good. d. decrease by 10% and X is a normal good.

Answers

Answer:

a. increase by 2.5%, and X is an inferior good.

Explanation:

The income elasticity of demand is the ratio between the percentage change in demand and the percentage change in income.

The change in demand caused by a 5% decrease in income is:

[tex]-0.5=\frac{\%\ change\ demand}{\%\ change\ income} \\-0.5=\frac{D}{-5\%} \\D=+2.5\%[/tex]

Demand will increase by 2.5%. A good whose demand increases when consumer income decreases is called an inferior good.

Therefore, the answer is a. increase by 2.5%, and X is an inferior good.

g The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the following items: income from continuing operations, $7 million; loss from discontinued operations, $2.0 million. All of these amounts are net of tax. Required: Prepare the 2021 EPS presentation for the Esposito Import Company

Answers

Answer:

$5.00

Explanation:

Preparation of the 2021 EPS presentation for the Esposito Import Company

Earnings per share:

Income from continuing operations$7.00

Less Loss from discontinued operations(2.0)

Net income $5.00

Therefore the Net income after the Preparation of the 2021 EPS presentation for the Esposito Import Company is $5.00

Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance. Required: Prepare the related journal entries for Lindley.

Answers

Answer:

Sales on June 30:

Dr accounts receivable  $400,000

Cr sales revenue                                 $400,000

On August 15:

Dr cash                   $400,000

Cr accounts receivable                       $400,000

Explanation:

On June 30 when Lindley Enterprises sold 500 rugs worth $400,000 to Paige Corporation ,Lindley would have to recognize sales of $400,000 since the rugs have been transferred to Paige Corporation by crediting sales revenue and debiting accounts receivable with $400,000.

On August 15,Lindley would have received cash of $400,000 in respect of their earlier sales,hence accounts receivable should be credited while cash account is debited

The price of a European call option on a stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. A dividend of $1 is expected in six months. What is the price of a one-year European put option on the stock with a strike price of $50?

Answers

Answer:

$3.06

Explanation:

The put call parity shows the relationship between the price of European put options and European call options of the same strike price and expiry date.

Given that:

Strike price (K) = $50

Price (C) = $6

rate (r) = 6% = 0.06

Stock price (SO) = $51

Time (T) = 1 year

Dividend (D) = $1

The period of dividend (t) = 6 months = 0.5 years

The put call parity (P) is given by the equation:

[tex]P+SO=C+Ke^{-rT}\\P=C+Ke^{-rT}-SO[/tex]

The dividend present value = [tex]De^{-rt}=1e^{-0.06*0.5}=\$0.97[/tex]

[tex]P=C+Ke^{-rT}-SO\\P=6+50e^{-0.06*1}-(51-0.97)\\P=6+47.088-50.03\\P=\$3.06[/tex]

The Whitewater LLP is equally owned by three partners and has the following balance sheet at the end of the current tax year:

Basis FMV
Cash $60,000 $60,000
Unrealized 0 15,000
receivables Land $15,000 $45,000
$75,000 $120,000
Petula, capital $25,000 $40,000
Prudence, capital $25,000 $40,000
Primrose, capital $25,000 $40,000
$75,000 $120,000
Petula is an active partner retiring from me service-oriented partnership. She receives $60,000 cash, none of which is stated to be for goodwill.

a) How much of the payment is for "unstated goodwill"?

b) How is the $60,000 allocated between a 736(a) income payment and a 736(b) property payment?

Answers

Answer:

A.) $20,000

Explanation:

Kindly check attached picture for detailed explanation

The Holt fund has $500 million in assets, 80 million in debt and 15 million shares at the start of the year. At the end of the year, the fund has $600 million in assets, 40 million in debt and 16 million shares. During the year, investors received $0.80 in distributions per share. The total expense ratio is 0.4%, which is deducted at the end of the year. What is the rate of the return on the fund?
A. 38.54%
B. 27.32%
C. 35,14%
D. 25.81%
E. 34.79%

Answers

Answer:

B. 27.32%

Explanation:

First we need to calculate the Net asset value per share at the start and end of the year

NAV at the start of the year = ($500 million - $80 million) / 15 million shares = $28 per share

NAV at the end of the year = ($600 million - ( ($600 million x 0.004) + $40 million ) / 16 million shares = $34.85 per share

Return = (NAV at the end of the year - NAV at the start of the year + Distribution received) / NAV at the start of the year

Return = ( 34.85 - 28 + 0.8 ) / 28 = 0.2732 = 27.32%

A registered investment adviser lives in State X. The adviser does business with 1 client in State A and 1 client in State B. The adviser gives seminars about investing to groups of potential customers in State C. The adviser is required to register in:

Answers

Answer:

State X and C

Explanation:

Remember, the clients themselves stay in state A and B, not the investment advisor. According to the requirements of the law, the investment advisor is to register in the state where he gives seminars–State C, and the state in which he resides–X.

An inexperienced accountant for Riverbed Corp showed the following in the income statement: income before income taxes $258,000 and unrealized gain on available-for-sale securities (before taxes) $94,900. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 34% tax rate. Prepare a correct statement of comprehensive income.

Answers

Answer:

Kindly check attached file for the Comprehensive report

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows: 1 Sales $10,800,000.00 2 Manufacturing costs: 3 Direct materials $6,400,000.00 4 Direct labor 1,600,000.00 5 Variable manufacturing cost 1,280,000.00 6 Fixed manufacturing cost 320,000.00 9,600,000.00 7 Selling and administrative expenses: 8 Variable $1,080,000.00 9 Fixed 180,000.00 1,260,000.00Required:
1. Prepare an income statement based on the absorption costing concept.*
2. Prepare an income statement based on the variable costing concept.*
3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).

Answers

Answer:

Absorption Costing Net Income  1008,000

Variable Costing Net Income     976,000

Explanation:

Kodiak Fridgeration Company

Units Produced = 80,000

Units Sold = 72,000

Ending Inventory = 8000

Per Units Cost

Direct materials $6,400,000/80,000 = $ 80

Direct labor 1,600,000 /80,000= $ 20

Variable manufacturing cost 1,280,000/80,000= $ 16

Fixed manufacturing cost 320,000 /80,000 = $ 4            

Absorption Manufacturing Cost  per unit= 9,600,000/80,000= $ 120

Variable Manufacturing Costs per unit = $ 116

Kodiak Fridgeration Company

Income Statement

Absorption Costing

Sales                                                              $10,800,000

Manufacturing costs:

Direct materials $6,400,000

Direct labor 1,600,000

Variable manufacturing cost 1,280,000

Fixed manufacturing cost 320,000                 9,600,000

Less Ending Inventory (8000*120)                     (960,000)

Cost of Goods Sold                                           86,40,000

Gross Profit                                                         2160,000

Selling and administrative expenses:

Variable $ 72,000* 13.5=                                    972,000

Fixed                                                                      180,000                                                  

Net Income                                                        1008,000

Kodiak Fridgeration Company

Income Statement

Variable Costing

Sales                                                              $10,800,000

Variable manufacturing cost

(80,000*116)                                                       9280,000

Less Ending Inventory ( 8000*116)                     928,000

Cost of Goods Sold                                           83,52,000                  

Gross Contribution Margin                                 2448,000

Variable Selling and administrative expenses

(72000 * $1,080,000/80,000)                              972,000

Contribution Margin                                            1476,000

Less Fixed Expenses

Fixed manufacturing cost 320,000

Fixed 180,000                                                    500,000

Net Income                                                          976,000

3. The difference in absorption and variable costing income is because in absorption costing the fixed costs are treated as unit cost and in variable costs the fixed costs are treated as period costs. Also the fixed costs of the ending units is deducted in absorption costing where it is not deducted in variable costing.

The Converting Department of Osaka Napkin Company uses the average cost method and had 2,000 units in work in process that were 60% complete at the beginning of the period. During the period, 25,200 units were completed and transferred to the Packing Department. There were 1,100 units in process that were 30% complete at the end of the period.

a. Determine the number of whole units to be accounted for and to be assigned costs for the period.

b. Determine the number of equivalent units of production for the period.

Answers

Answer:

Equivalent Units

Material cost = 26,560

Conversion Cost= 25,540

Explanation:

We would assume the company uses  weighted average method of valuation.

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.

Equivalent units = Degree of completion (%) × Number of units

Material cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           100%× 1,360       1360

Total equivalent units                                                 26,560

Conversion Cost

Item                                 Unit                                  Equivalent unit

Completed                    25,200      100% ×25200  = 25,200

Closing WIP                   1,360           25%× 1,360        340

Total equivalent units

The Converting Department of Osaka Napkin Company uses the average cost method and had 2,000 units in work in process that were 60% complete at the beginning of the period.

A. To determine the number of whole units to be accounted for and to be assigned costs for the period, let's calculate the total equivalent units of production.

Whole units at the beginning of the period = 2,000 unit

Units started and completed during the period = 25,200 units

Whole units in process at the end of the period = 1,100 units

Total whole units to be accounted for:

= Whole units at the beginning + Units started and completed during the period + Whole units in process at the end

= 2,000 units + 25,200 units + 1,100 units

= 28,300 units

B. To determine the number of equivalent units of production for the period, we need to consider the percentage of completion for the units in process at the beginning and the units in process at the end.

Equivalent units of production for units in process at the beginning:

= Whole units at the beginning × Percentage of completion at the beginning

= 2,000 units × 60%

= 1,200 equivalent units

Equivalent units of production for units in process at the end:

= Whole units in process at the end × Percentage of completion at the end

= 1,100 units × 30%

= 330 equivalent units

Total equivalent units of production for the period:

= Equivalent units of production for units in process at the beginning + Equivalent units of production for units in process at the end + Units started and completed during the period

= 1,200 equivalent units + 330 equivalent units + 25,200 units

= 26,730 equivalent units

Therefore, the number of equivalent units of production for the period is 26,730 units.

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Trio Company reports the following information for the current year, which is its first year of operations.
Direct materials $15 per unit
Direct labor $15 per unit
Overhead costs for the year
Variable overhead $3 per unit
Fixed overhead $120,000 per year
Units produced this year 20,000 units
Units sold this year 14,000 units
Ending finished goods inventory in
units 6,000 units
1. Compute the cost per unit using absorption costing and then using variable costing2. Determine the cost of ending finished goods inventory using absorption costing and then using variable costing3. Determine the cost of goods sold using variable costing and then using variable costing

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Direct materials $15 per unit

Direct labor $15 per unit

Overhead costs for the year

Variable overhead $3 per unit

Fixed overhead $120,000 per year

Units produced this year 20,000 units

Units sold this year 14,000 units

Ending finished goods inventory in

units 6,000 units

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

1) Absorption costing method:

Unitary fixed overhead= 120,000/20,000= 6

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 15 + 15 + 3 + 6= 39

Variable costing:

Unit product cost= direct material + direct labor + variable overhead

Unit product cost= 33

2) Ending inventory:

Absorption costing= 6,000*39= $234,000

Variable costing= 6,000*33= $198,000

3) Cost of goods sold:

Absorption costing= 14,000*39= 546,000

Variable costing= 14,000*33= 462,000

RequiredIndicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders’ equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1. (Indicate the effect of each transactions by selecting "+" for increase, "–" for decrease, and "NC" for no change.)a. Collected account receivable.b. Wrote off account receivable.c. Converted a short-term note payable to a long-term payable.d. Purchased inventory on account.e. Declared cash dividend.f. Sold merchandise on account at a profit.g. Issued stock dividend.h. Paid account payable.i. Sold building at a lossdo a +, -. or NC for each one.Current Ratioa.b.c.d.e.f.g.h.i.Working Capitala.b.c.d.e.f.g.h.i.Stockholders Equitya.b.c.d.e.f.g.h.i.Book Valuea.b.c.d.e.f.g.h.i.Retained Earningsa.b.c.d.e.f.g.h.i.

Answers

Find the given attachment

Quantum Logistics. Inc., a wholesale distributor, is considering the construction of a new warehouse to serve the southeastern geographic region near the Alabama-Georgia border. There are three cities being considered. After site visits and a budget analysis, the expected income and costs associated with locating in each of the cities have been determined. The life of the warehouse is expected to be 12 years and MARR is 15 percent/year. What is the future worth of each site based on future worth ranking? Which city should be recommended?

Answers

Answer:

Anniston City should be recommended as it has higher future value.

Explanation:

Using the formula:

Future value of annuity = C * { [(1+r)^n - 1] / r } C where C= initial cost, r= interest rate (MARR=15%), n= 12)

- Langrange City

= $1,260,000 * { [(1+0.15)^12 - 1] / 0.15 } = $6,741,308.466

- Auburn City

$1,000,000 * { [(1+0.15)^12 - 1] / 0.15 } = $5,350,243.439

- Anniston City

$1,620,000 * { [(1+0.15)^12 - 1] / 0.15 } = $8,667,398.504

What percent of the educated workforce in the world can be found outside of the US?
O 75%
O 25%
O 50%
15%

Answers

Answer:

A. 75%

Explanation:

A workforce is a term used to describe the number of able people working for government, establishments, institutions and private companies etc in a society. Thus, educated workforce implies the number of educated able people that have the ability to work with respect to their academic discipline.

US has a high number of workforce and compensating packages for them. But when compared to other countries, over 75% of educated workforce exists outside of the United States of America.

Chen Inc.'s cash balance in the accounting records, before receiving the bank statement, at June 30th was $16,170. During June the company recorded $10,000 of deposits but the bank only showed $7,900 on the June statement. Some of the company's deposits were made on the last day of the month. The company's records also showed that the company wrote checks totalling $3,600 that had not yet cleared the bank. The June 30th bank statement showed a balance of $16,750. The company was surprised to see that the bank statement showed the following items that the company was not aware of until the bank statement arrived: NSF check for $935, bank fee of $10, and interest income totalling $25. What is the total amount of cash that should be reported on Chen Inc.'s balance sheet at June 30th?

a. $15,250
b. $17,120
c. $14,670
d. $17,850

Answers

Answer:

The total amount of cash that should be reported on Chen Inc., balance sheet at June 30th is $15,250

The answer is option A.

Explanation:

The total amount of cash that should be reported on Chen Inc., balance sheet at June 30th is as follows:

                                                                                      $         $

Balance as per bank statement at June 30                      16,750

Add: Deposit in transit ($10,000 - $7,900)                       2,100

Less:  

Outstanding Checks                                                       3,600

Adjusted Cash Balance                                                     $ 15,250

Balance as per accounting records at June 30              16,170

Add: Interest Income                                                        25

Less:  

NSF Checks                                                         935  

Bank Fees                                                                    10           945

Adjusted Cash Balance                                                     $ 15,250

Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 49 range instruments and 297 pressure gauges were produced, and overhead costs of $88,560 were estimated. An analysis of estimated overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1. Materials handling Number of requisitions $38,850
2. Machine setups Number of setups 26,190
3. Quality inspections Number of inspections 23,520
$88,560
The cost driver volume for each product was as follows.
Cost Drivers Instruments Gauges Total

Number of requisitions 420 630 1,050
Number of setups 225 260 485
Number of inspections 265 225 490
Determine the overhead rate for each activity.
Overhead Rate
Materials handling $
Machine setups $
Quality inspections $
Assign the manufacturing overhead costs for April to the two products using activity-based costing.
Instruments Gauges
Total cost assigned $ $
Overhead cost per Unit $ $

Answers

Answer and Explanation:

1. The computation of overhead rate for each activity is shown below:-

Overhead rate for each activity            Overhead Rate

Materials handling                                      37

                                                             ($38,850 ÷ 1,050)

Machine setups                                           54

                                                              ($26,190 ÷ 485)

Quality inspections                                      48

                                                               (23,520 ÷ 490)

2. The computation of assignment of manufacturing overhead costs for April to the two products using activity-based costing is shown below:-

Assignment of           Instruments                         Gauges

manufacturing

overhead costs

Materials handling   $37 × 420   $15,540  $37 × 63 $23,310

Machine setups      $54 × 225    $12,150   $54 × 260 $14,040

Quality inspections $48 × 265   $12,720   $48 × 225  $10,800

Total cost assigned                     $40,410                     $48,150

Overhead cost

per Unit          $40,410 ÷ 49  $824.69 $48,150 ÷ 297 $162.12

Therefore we have applied the above formula.

Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 million bottles of wine were sold every month at a price of $6 per bottle. After the tax, 20 million bottles of wine are sold every month; consumers pay $8 per bottle (including the tax), and producers receive $5 per bottle. The amount of the tax on a bottle of wine is_____________ $ per bottle. Of this amount, the burden that falls on consumers is_________ $ per bottle, and the burden that falls on producers is $___________ per bottle.?

Answers

Answer:

Explanation:

From the question, we are informed that before the tax, 25 million wine bottles were sold at price of $6 per bottle and that after the tax, 20 million bottles of wine are sold every month and the consumers pay $8 per bottle which include the tax and producers receive $5 per bottle.

The amount of tax on wine will be the difference between the price consumers pay after the tax and the price producers receive. This will be:

= $8 - $5

= $3 per bottle

The tax burden that falls on the consumers will be difference between price paid after tax and the price which is paid before the tax.

= $8 - $6

= $2 per bottle

The tax burden on the producers will be difference between price received before the tax and price received after the tax.

= $6 - $5

= $1 per bottle

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