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 1

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.


Related Questions

Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Business has fueled these trends and has been the beneficiary of these trends. Understanding these trends helps businesses develop strategies and tactics to accelerate these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets.For each driving force listed, click and drag the correct description from the left and place it as a description or implication for business on the right. Driving Force Description Implication for Business Preferential trading Growth in services privatization of industriesCompetitive drivers Exporting or producing New opportunities and new markets Political drivers fgoods Emergence of global sold Lower cost Cost drivers Explosive growth of high-power, low-cost computing opportunities for trade and investment Technological drivers Explosive growth in Intense competition 6 international business in world markets Market drivers

Answers

Answer:

Competitive Drivers

Description

Explosive growth in international business

Implication for Business

Intense competition in world markets

Globalization has led to an explosive growth in international.business which has led to increased competition amongst companies because they now have to compete on a global scale against numerous companies in various locales.

Political Drivers

Description

Preferential trading arrangements and privatization of industries

Implications for Business

Increased opportunities for trade and investment

Some Countries offer great trading agreements this enabling companies to trade in other countries. This opportunity means that there are increased opportunities for trade by companies in the countries involved in the agreement.

Cost Drivers

Description

Exporting or producing Overseas

Implications for Business

Lower Cost of Goods sold

Globalization has enabled companies to be able to produce in cheaper markets for labor such as in Asia and Africa. This has led to a lower cost of goods sold and therefore higher profits.

Technological Drivers

Description

Explosive growth of high-power, low-cost computing

Implications for Business

Growth in Services.

Driving Globalization is an increased use of technology by human beings. The world is now connected by mere seconds which has enabled companies to derived clients all over the world this enabling them to offer more services.

Market Drivers

Description

Emergence of Global Customers

Implications for Business

New Opportunities and New Markets.

Another factor driving Globalization is the availability of new markets to sell their goods in in different territories. Companies can therefore have an increased demand base which will mean more Profitability.

Globalization has been driven by many factors. It has increased trading with other countries.

Globalization Competitive

Drivers Globalization has led to growth in the international market.

The businesses led to competition amongst companies as they compete on a global.

Political Drivers Some Countries offer trading deals that allow companies to trade with others.

It suggests that there are increasing possibilities for trade by companies in the countries involved in the agreement.

Cost Drivers Globalization has helped companies produce products that help labour in Asia and Africa at a low cost.

This has led to a lower cost of goods sold with higher profits.

Technological Drivers Driving Globalization is an increase in the use of technology by humans.

People are connected by the internet, which has enabled companies to derive clients with more services.

Market Drivers Here globalization is available in new markets to trade goods in different regions.

Companies can have an increased demand based which will mean more Profitability.

Find out more information about Globalization here:

brainly.com/question/200850

Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 14.50%. What is Pearson's cost of common equity

Answers

Answer:

21.45%

Explanation:

Pearson motors has a target capital structure of 45% debt and 55% common equity

The yield to maturity is 10%

Tax rate is 40%

WACC is 14.50%

First of all we have to find the tax cost of debt

Tax cost of debt= Yield to maturity×(1-tax rate)

= 8×(1-25/100)

= 8×(1-0.25)

= 8×0.75

= 6%

The next step is to calculate the common equity

Therefore, the common equity can be calculated as follows

WACC= Respective cost×Respective weight

14.50= (6×0.45)+(0.55×common equity)

14.50= 2.7+(0.55×common equity)

14.50-2.7= (0.55×common equity)

11.8= (0.55×common equity)

Common equity= 11.8/0.55

Common equity= 21.45%

Hence Pearson's cost of common equity is 21.45%

The following data apply to Elizabeth's Electrical Equipment: Value of operations $20,000 Short-term investments $1,000 Debt $6,000 Number of shares 300 The company plans on distributing $1,000 by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase? Notes: With some combinations of variables, the residual policy may result in zero dividends and a zero payout ratio. These outcomes are noted in the topic [TOP] field if applicable.

Answers

Answer:

$50

Explanation:

Elizabeth's Electrical Equipment

Total Assets will be :

Value of operations of 20,000+ Short term investments of 1000

=$21,000

Debt = $6000

Hence:

Equity will be :

Assets - Debt

= $21,000-$6,000

Which will give us = $15,000

Number of shares which are outstanding

= 300

$15,000/300

=$50

Therefore the Intrinsic value per share will be $50 immediately after the repurchase has occured.

A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX). 0.1613

Answers

Answer:

What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is 0.1613.

Explanation:

The nominal cost of its non-free trade credit = the discounts lost for paying late.

In this case, the seller offers a 3% discount if the firm pays within 15 days.

annual financial cost = [discount / (100% - discount)] x [365 / (repayment time - discount period)]

annual financial cost = [3% / (100% - 3%)] x [365 / (85 - 15)] = (3% / 97%) x (365 / 70) = 0.1613 or 16.13%

Ethics is a hot topic in business, as well as in Project Management. Using some of the examples presented therein, what kinds of dilemmas have you either seen, encountered, or can envision from your field of study and/or work? How does this affect international projects and venues?

Answers

Answer:

Without question, ethics is indeed a very hot subject of industry. Various forms of ethical challenge come up particularly in managing projects. I encountered only a handful of the above :-

(A) It is a predicament to finish the ethical task in a timely manner but to with over-exploit natural resources by simply avoiding even their own work-life balance.

(B) Much of the project has to be successfully completed and within likely cost. The conundrum faced can jeopardise the excess cost savings with the value of the project that would result in customer unhappiness.

For​ 2018, Winters Manufacturing uses machineminushours as the only overhead costminusallocation base. The direct cost rate is $ 6 per unit. The selling price of the product is $ 21. The estimated manufacturing overhead costs are $ 275 comma 000 and estimated 40 comma 000 machine hours. The actual manufacturing overhead costs are $ 350 comma 000 and actual machine hours are 50 comma 000. What is the profit margin earned if each unit requires two machineminus​hours?

Answers

Answer:

Profit margin per unit= $1.25

Explanation:

Giving the following information:

The direct cost rate is $ 6 per unit.

The selling price of the product is $ 21.

Estimated manufacturing overhead= $275,000

Estimated machine-hours= 40,000

Actual machine hours are 50,000

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 275,000/40,000= $6.875 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 6.875*2= $13.75

Finally, the profit margin:

Profit margin per unit= 21 - 6 - 13.75= $1.25

Two countries are trying to decide which product should have an increased production Both Canada and Costa Rica produce cottee and corn, but is easier for Canada to raise com than grow Coffee Costa Rica easily grows coffee, but has a more difficult time growing com. In comparison with Costa Rica, Canada has:_________.
a the camale to create richer lasting coffee than Costa Rica
b the opportunity to increase their coffee production to better compete with Costa Rka
c. a comparative advantage with com.
A Moving to another question will save this response

Answers

Answer:

. a comparative advantage with com.

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

If it is easier for Canada to produce Com, it means they have a comparative advantage in the production of com. Costa Rica has a comparative advantage in the production of coffee.

I hope my answer helps you

A friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing: 1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).

Answers

Answer: 1. 12. 2. 1.090. 3. 0.08327

Explanation:

Here is the complete question:

friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:

1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).

The value of f is:

2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).

The value of s is:

3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.

The natural rate of unemployment (in percent) is

1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.

The value of f is: 12

2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks

s = 1.090

The value of s is: 1.090

3. The natural rate of unemployment will be:

U = s/(s+f)

= 1.090/(1.090 + 12)

= 1.090/13.090

= 0.08327

Dave Krug contributed $1,400 cash along with inventory and land to a new partnership. The inventory had a book value of $1,200 and a market value of $2,800. The land had a book value of $1,800 and a market value of $5,800. The partnership also accepted a $3,400 note payable owed by Krug to a creditor. Prepare the partnership's journal entry to record Krug's investment
View transaction list View journal entry worksheet
No Transaction General Journal Debit Credit
Cash

Answers

Answer:

Partnership General Journal to record Krug Investment

Cash                $1,400   (Debit)

Inventory         $2,800  (Debit)

Land                 $5,800  (Debit)

Notes Payable $3,400  (Credit)

Krug, Capital    $5,800  (Credit)

Explanation

i. The land and inventories will be accepted at his market value.

ii. Along with cash, this are assets which enter the partnership so they are debited.

iii. The note payable decreases the Krug capital contribution. It is credited.

iv. Krug capital account balance will be to complete the entry and make debit = credit.

At the beginning of the month, the Forming Department of Martin Manufacturing had 23,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 86,000 units and transferred 88,000 units to the next manufacturing department. At the end of the month, the department had 21,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month

Answers

Answer:

Units stated and completed during the month= 65,000

Explanation:

The units stated and completed in the current period is referred to as the fully worked.

Using the first in first out (FIFO) approach, the fully worked is calculated as

Fully worked = newly introduced -closing inventory

= 86,000- 21,000 = 65000

Note that out of the 86,000 that were completed in the period, it assumed that 23,000 representing the opening inventory would first be completed and the balance would from the newly introduced.

Another way to determine the fully worked is as follows

Fully worked = transferred out - opening inventory

Fully worked = 88,000- 23,000 = 65,000

Units stated and completed during the month= 65,000

client becomes dissatisfied with the progress that Engineer A is making on his project. As a result, he terminates the services of Engineer A and hires Engineer B to complete the work. Engineer B: Must be able to document his or her effort of reworking the entire design process. Must take complete responsibility for the documents.s Must notify Engineer A, by certified mail, of his intentions to reuse already sealed documents. All of the ab

Answers

Answer:

The correct answer is all of the above.

Explanation:

Solution

When a client is not happy with the work of the former Engineer A on his project, if he hires Engineer B to finish the work, the new Engineer must take into consideration the past work of his predecessor.

He has to check the overall work manual of the previous engineer, so as to input his own idea to make the work much better and satisfactory for the client.

He (Engineer B) should be able to keep track in documenting his or her effort while redoing the entire design process stage.

He can also asked questions from the previous Engineer in case he his not understanding dome things or facing some issues towards the project work.

The four option here, are correct

A lot of research has demonstrated that there is a relationship between the of employees and that of the customer

Answers

Answer:

Satisfaction

Explanation:

A satisfaction is a thing. We just take an example :- When a customer purchase a product from the company he or she investing their money in order to fulfill their needs and wants. In return the customer wants the product is according to their expectations. In the case when the customer is satisfied, the chances of repurchasing of the product is high.

Therefore, as per the current situation there is always a relationship of satisfaction between the customer and the employees of the company.

A company purchased a computer system at a cost of $25,000. The estimated useful life is 6 years, and the estimated residual value is $8,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year

Answers

Answer:

$5,102

Explanation:

Double declining Method

Cost $ 25,000

B Residual Value $2,000

C = A - B Depreciable base $23,000

D Life [in years] 7

E = C/D Annual SLM depreciation $3,286

F = E/C SLM Rate 14.29%

G = F x 2 DDB Rate 28.57%

.

Depreciation schedule-Double declining

Year Beginning Book Value Depreciation rate Depreciation expense Accumulated Depreciation Ending Book Value

1 $25,000 , 28.57%, $7,143 , $7,143 $17,857

2 $17,857, 28.57%, $ 5,102 , $ 12,245, $12,755

Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,306,000 Preferred dividends $74,000 Shares of common stock outstanding 80,000 Market price per share of common stock $97.02 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $ b. Determine the company's price-earnings ratio. Round to one decimal place.

Answers

Answer:

(a) The company's earnings per share on common stock is $ 15.40

(b) The company's price-earnings ratio is 6.3

Explanation:

Net income = $1,306,000

Preferred dividends = $74,000

Shares of common stock outstanding = 80,000 shares

Market price per share of common stock = $97.02

(a) Earnings per share = (Net income−Preference dividend ) ÷ Shares outstanding

=  ($1,306,000−$74,000 ) ÷ 80,000 shares

=  $1,232,000  ÷ 80,000 shares

= $ 15.4

(b) Price-Earnings ratio =  Market price per share  ÷ Earnings per share

=  $97.02 ÷ $15.40 per share

= 6.3

Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $3 million for television advertising time during a "super" sporting event scheduled to take place in early February of next year. In addition, in November of this year the company paid $2,500,000 for a one-time advertising blitz during a professional golf tournament in April of next year. What amount of these payments, if any, can Ajax deduct this year

Answers

Answer: No deduction can be claimed this year.

Explanation:

The options to the question are:

a. No deduction can be claimed this year.

b. $5.50 million

c. $2,500,000

d. $5.50 million only if the professional golf tournament is played before April 15.

Answer:

Since Ajax Computer company is an accrual method calender-year tax payer, the computer company would recognize the expenses only when such expenses are incurred and not at the time that cash is being paid for the the expenses

Ajax computer company already paid in advance for both advertisements the following year even though the advertisement eanst taking place that year. Therefore, the payments will not be considered to be an expense until advertisements has actually taken place. Because of this, Ajax cannot deduct the amounts paid for the advertisements next year and hence, no deduction will be claimed this year.

Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:
110 Cash $ 83,600
112 Accounts Receivable 233,900
115 Merchandise Inventory 624,400
116 Estimated Returns Inventory 28,000
117 Prepaid Insurance 16,800
118 Store Supplies 11,400
123 Store Equipment 569,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,600
211 Salaries Payable ---
212 Customers Refunds Payable 50,000
310 Common Stock 100,000
311 Retained Earnings 585,300
312 Dividends 135,000
313 Income Summary ----
410 Sales 5,069,000
510 Cost of Merchandise Sold 2,823,000
520 Sales Salaries Expense 664,800
521 Advertising Expense 281,000
522 Depreciation Expense ---
523 Store Supplies Expense ---
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 382,100
531 Rent Expense 83,700
532 Insurance Expense ---
539 Miscellaneous Administrative Expense 7,800
During May, the last month of the fiscal year, the following transactions were completed:
May
1 Paid rent for May, $5,000.
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4 Paid freight on purchase of May 3, $600.
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on account.
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13 Paid for merchandise purchased on May 3.
15 Paid advertising expense for last half of May, $11,000.
16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
19 Paid $33,450 to Buttons Co. on account.
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.
20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.
21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.
21 Received $42,900 cash from Gee Co. on account.
21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
28 Paid sales salaries of $56,000 and office salaries of $29,000.
29 Purchased store supplies for cash, $2,400.
30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
30 Received cash from sale of May 20 plus freight paid on May 21.
31 Paid for purchase of May 21, less return of May 24.
Required:
Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account.
Enter May 1 in the date column. Write Balance in the item section, and place a check mark (?) in the Posting Reference column.

Answers

Answer:

1 Paid rent for May, $5,000.

Dr Rent expense 5,000

    Cr Cash 5,000

3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.

Dr Merchandise inventory 36,000

    Cr Accounts payable 36,000

4 Paid freight on purchase of May 3, $600.

Dr Merchandise inventory 600

    Cr Cash 600

6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.

Dr Accounts receivable 68,500

    Cr Sales revenue 68,500

Dr Cost of Merchandise Sold 41,000

    Cr Merchandise inventory 41,000

7 Received $22,300 cash from Halstad Co. on account.

Dr Cash 22,300

    Cr Accounts receivable 22,300

10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.

Dr Cash 54,000

    Cr Sales revenue 54,000

Dr Cost of Merchandise Sold 32,000

    Cr Merchandise inventory 32,000

13 Paid for merchandise purchased on May 3.

Dr Accounts payable 36,000

    Cr Cash 36,000

15 Paid advertising expense for last half of May, $11,000.

Dr Advertising expense 11,000

    Cr Cash 11,000

16 Received cash from sale of May 6.

Dr Cash 67,130

Dr Sales discounts 1,370

    Cr Accounts receivable 68,500

19 Purchased merchandise for cash, $18,700.

Dr Merchandise inventory 18,700

    Cr Cash 18,700

19 Paid $33,450 to Buttons Co. on account.

Dr Accounts payable 33,450

    Cr Cash 33,450

20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.

Dr Sales revenue 13,230

   Cr Cash 13,230

Dr Merchandise inventory 8,000

    Cr Cost of Merchandise Sold 8,000

20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.

Dr Accounts receivbale 110,000

    Cr Sales revenue 110,000

Dr Cost of Merchandise Sold 70,000

    Cr Merchandise inventory 70,000

21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.

Dr Accounts receivable 2,300

    Cr Cash 2,300

21 Received $42,900 cash from Gee Co. on account.

Dr Cash 42,900

    Cr Accounts receivable 42,900

21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.

Dr Merchandise inventory 88,000

    Cr Accounts payable 88,000

24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.

Dr Accounts payable 5,000

    Cr Merchandise inventory 5,000

26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.

Dr Sales revenue 7,500

   Cr Cash 7,500

Dr Merchandise inventory 4,800

    Cr Cost of Merchandise Sold 4,800

28 Paid sales salaries of $56,000 and office salaries of $29,000.

Dr Wages expense 85,000

    Cr Cash 85,000

29 Purchased store supplies for cash, $2,400.

Dr Supplies 2,400

    Cr Cash 2,400

30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.

Dr Accounts receivable 78,750

    Cr Sales revenue 78,750

Dr Cost of Merchandise Sold 47,000

    Cr Merchandise inventory 47,000

30 Received cash from sale of May 20 plus freight paid on May 21.

Dr Cash 110,100

Dr Sales discounts 2,200

    Cr Accounts receivable 112,300

31 Paid for purchase of May 21, less return of May 24.

Dr Accounts payable 83,000

    Cr Cash 82,170

    Cr Purchase discounts 830

       

I prepared a general ledger for May in an excel spreadsheet that I attached.

An investor enters into a 2-year swap agreement to purchase crude oil at $51.25 per barrel. Soon after the swap is created, forward prices rise and the new 2-year swap price is $61.50. If interest rates are 1% and 2% on 1- and 2-year zero coupon government bonds, respectively, what is the gain or loss to be made from unwrapping the original swap agreement?

Answers

Answer:

The present  Value of Annual Gain for  two years made from unwrapping the original swap agreement is  $20.00

Explanation:

From the given information;

The annual gain from swap agreements = $61.50 - $51.25

The annual gain from swap agreements =  $10.25

Annual rate for the first year = 1% = 0.01

Annual rate for the second year = 2% = 0.02

However the present gain for the first year will be;

[tex]= \dfrac{Annual \ Gain}{(1+r_1)^1}[/tex]

[tex]= \dfrac{10.25}{(1+0.01)^1}[/tex]

= 10.14851485

The present gain for the second year will be;

[tex]= \dfrac{Annual \ Gain}{(1+r_2)^2}[/tex]

[tex]= \dfrac{10.25}{(1+0.02)^2}[/tex]

= 9.851980008

The present Value of Annual Gain for  two years is:

[tex]= \dfrac{Annual \ Gain}{(1+r_1)^1} + \dfrac{Annual \ Gain}{(1+r_2)^2}[/tex]

=  10.14851485  + 9.851980008

= 20.00049486

≅ $ 20.00

The present  Value of Annual Gain for  two years is $20.00

The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form: Year 2 Year 1 Assets Cash $45,000 $53,500 Accounts receivable (net) 51,300 58,000 Inventories 147,200 135,000 Investments 0 60,000 Equipment 493,000 375,000 Accumulated depreciation—equipment (113,700) (128,000) Total Assets $622,800 $553,500 Liabilities and Stockholders' Equity Accounts payable $61,500 $42,600 Bonds payable, due Year 4 0 100,000 Common stock, $10 par 250,000 200,000 Paid-in capital in excess of par—common stock 75,000 50,000 Retained earnings 236,300 160,900 Total liabilities and stockholders' equity $622,800 $553,500 The income statement for the current year is as follows: Sales $629,700 Cost of goods sold 341,800 Gross profit $287,900 Operating expenses: Depreciation expense $24,700 Other operating expenses 75,300 Total operating expenses 100,000 Income from operations $187,900 Other income: Gain on sale of investment $5,000 Other expense: Interest expense 12,000 (7,000) Income before income tax $180,900 Income tax 64,100 Net income $116,800 Additional data for the current year are as follows: a. Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000. b. Bonds payable for $100,000 were retired by payment at their face amount. c. 5,000 shares of common stock were issued at $15 for cash. d. Cash dividends declared were paid $41,400.

Answers

Answer:

Kindly check attached picture

Explanation:

Kindly check attached picture for detailed statement using the direct method

Required: Using the adjusted trial balance on the next page for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:
Part 1: Prepare a Statement of Cost of Goods Manufactured
Part 2: Prepare a Multiple-Step Income Statement
Aside: The general ledger would usually include a factory overhead control account and the detail of factory overhead would be in a subsidiary ledger. However, the detail of factory overhead has been put into the adjusted trial balance mixed with the other accounts to make sure you can distinguish accounts going into cost of goods manufactured from those going into the income statement.

Answers

Find the given attachments for answer.

Note: The adjusted trial balance is added.

Cost of Goods Sold = Beginning finished goods inventory + COGM - Ending Finished Goods Inventory = 69,000 + 311,000 -100,000 = 280,000.

Cost of goods available for sale = Beginning finished goods inventory + COGM

COGS = Cost of goods available for sale - Ending finished goods inventory.

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $30,000 and $20,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $38,000. a. What is the amount of a gain or loss on realization

Answers

Answer:

$12,000

Explanation:

The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.

Total capital balances = $30,000 + $20,000 = $50,000

Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.

Therefore, the amount of loss on realization is $12,000.

A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $24, the most recent dividend was $3 per share, and the dividend is expected to grow at a rate of 4% forever. Flotation costs for this issue are expected to be 6%. What is the required rate of return (or financing cost) in this new issue?

Answers

Answer:

17.83%

Explanation:

The computation of required rate of return is shown below:-

Required rate of return = ((Expected dividend ÷ (Current Stock price × (1 - Flotation cost as a percentage of issue price)) + Growth rate)) × 100

= ((Dividend × (1 + Growth rate)) ÷ Current Price of stock × (1 - Flotation cost as a percentage of issue price)) + Growth rate))) × 100

= ($3 × (1.04) ÷ $24 × (1 - 0.06) + 0.04) × 100

= ($3.12 ÷ $22.56 + 0.04) × 100

= (0.138297872  + 0.04) × 100

= 17.82978723

or

= 17.83%

Therefore we have applied the above formula.

Graham Petroleum produces oil. On May 1, it had no work-in-process inventory. It started production of 244 million barrels of oil in May and shipped 216 million barrels in the pipeline. The costs of the resources used by Graham in May consist of the following:

Materials $6,000 Million
Conversion Cost (Labor and overhead) $7,968 Million
Required:

The production supervisor estimates that the ending work-in-process is 60 percent complete on May 31.

Compute the cost of oil shipped in the pipeline and the amount in work-in-process ending inventory as of May 31. (Do not round intermediate calculations. Enter your answers in millions. For example, enter "1" instead of "1,000,000".)

Answers

Answer:

The cost of 216 million barrels of oil shipped is $ 12,960 million

Cost of ending work in process is $1,008 million

Explanation:

The total costs of oil production is computed thus:

                                                       $million

materials                                        6,000

conversion cost                             7,968

total cost                                       13,968

Production started                  244 million

Oil shipped                             216 million

ending work in process         28 million

total equivalent units=216 million+28 million*60%=216 million+16.8 million=232.8  million

cost of oil shipped=$13,968/232.8*216=$ 12,960 million

amount of ending inventory=$13,968-$12,960=$1,008.00  

What is a project, and what are its main attributes? How is a project different from what most people do in their day-to-day jobs? Discuss the importance of top management commitment and the development of standards for successful project management. Provide examples to illustrate the import

Answers

Answer:

In simple words, The project is a collective organization that is structured to accomplish a common goal. The best characteristics of the project are scale, purpose, money, staff, costs, deadlines.

Projects vary from daily operations-to-day activities in the way  of ultimate goal, time frame, budget , resources, squad and concentrate. Day-to-day activities follow formed safety procedures and also have particular long-term objectives, while projects have particular short-term objectives, tight income, money and energy. Projects have been carried over by a particular team formed for a specific project.

The importance of senior managers in the project is of vital importance as they work as the guiding and monitoring authority for all the parties involved in the project. Due to this factor majority organisations gives the top mangers some monetary shares in relation to success of the project.

lyssa and Crystal are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Alyssa takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Crystal takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Alyssa's opportunity cost of brewing a gallon of root beer is__________ , and Crystal's opportunity cost of brewing a gallon of root beer is__________ , has an absolute advantage in brewing root beer, and has a comparative advantage in brewing root beer. If Alyssa and Crystal trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza.

Answers

Answer:

a. 1.5 pizza

b. 1.39 pizza

c. Alyssa has an absolute advantage in brewing beer

d. Crystal has a comparative advantage in brewing beer

e. Crystal will easily trade away pizza for root beer

f.  there's no limit to the highest price

g. lowest price is 0.719 beer root/pizza

Explanation:

Alyssa takes 3 hrs to brew a gallon of root beers and 2 hrs to make a pizza

Crystal takes 7 hrs to brew a gallon of root beer and 5 hrs to make a pizza

Alyssa make 1 gallon/3 hrs = 0.33 gallons/hr of beer, and the same way makes 0.5 pizza/hr

Crystal makes 0.143 gallon/hr of beer, and 0.2 pizza/hr

for Alyssa, 0.33 gallons/hr = 0.5 pizza/hr, therefore

1 gallon of beer = 0.5/0.33 = 1.51 pizza

for crystal, 1 gallon of beer = 0.2/0.143 = 1.39 pizza

price of pizza:

Alyssa = 0.662 root beer/pizza

Crystal = 0.719 root beer/pizza

Hochberg Corporation uses an activity-based costing system with the following threeactivity cost pools:Activity Cost Pool Total ActivityFabrication ............................ 30,000 machine-hoursOrder processing ................... 300 ordersOther ..................................... Not applicableThe Other activity cost pool is used to accumulate costs of idle capacity andorganization-sustaining costs.The company has provided the following data concerning its costs:Wages and salaries ................. $340,000Depreciation ........................... 160,000Occupancy .............................. 220,000Total ........................................ $720,000The distribution of resource consumption across activity cost pools is given below:Activity Cost PoolsFabricationOrderProcessing Other TotalWages and salaries .................. 30% 60% 10% 100%Depreciation ............................ 15% 50% 35% 100%Occupancy ............................... 15% 55% 30% 100%The activity rate for the Fabrication activity cost pool is closest to:__________A) $5.30 per machine-hourB) $3.60 per machine-hourC) $7.20 per machine-hourD) $4.80 per machine-hour

Answers

Answer:

The answer is option A

Explanation:

                                     Amount($)       Activity cost pools    Allocated amount($)

Wages and salaries    340,000                   30%                     102,000

Depreciation                160,000                   15 %                     24,000

Occupancy                  220,000                   15 %                     33,000

Total                             720,000                                              159,000

Cost driver (hours)                                                              30,000 machine hours

Rate per machine hr                                                          159,000 ÷ 30,000

                                                                                                =$ 5.30    

The text states, "Over sufficiently long time periods, net income equals cash inflows minus cash outflows, other than cash flows with owners." Demonstrate the accuracy of this statement in the following scenario: Two friends contributed $50,000 each to form a new business. The owners used the amounts contributed to purchase a machine for $100,000 cash. They estimated that the useful life of the machine was five years and the salvage value was $20,000. They rented out the machine to a customer for an annual rental of $25,000 a year for five years. Annual cash operating costs for insurance, taxes, and other items totaled $6,000 annually. At the end of the fifth year, the owners sold the equipment for $22,000, instead of the $20,000 salvage value initially estimated. (Hint: Compute the total net income and the total cash flows other than cash flows with owners for the five-year period as a whole.)

Answers

Answer:

                                 Cash       Equipment   Common stock Net income

Cash contributed

by Owners        $ 100,000               $  100,000  

Purchase of

machine for cash $ (100,000)    $ 100,000  

Recoginition of

rent revenue         $125,000                                   $125,000

Recoginition of

operating

expense                $(30,000)                                   $(30,000)

Recoginition of

Depreciation                             $ (80,000)                                 $(80,000)

Sale of Machine   $ 22,000     $ (20,000)                          $ 2,000

Totals               $ 117,000          $0                $100,000         $ 17,000

Explanation:

A project manager is preparing two documents for risk management. One contains sources of overall project risk and also summary information on individual risks. The second describes individual risks identified. What name should the project manager give to the first document

Answers

Answer: Risk Report

Explanation:

A Risk Report for a project contains all the risk that the project is exposed to. This includes both project risk as well as individual risks related to the components projects in the overall project.

A Risk Report details the risks such as Supplier failure, Inflation, Pending Government Regulations and the like. It then takes these and summarizes them for presentation to those who require this information in the company so that appropriate safeguards may be set up and precautions taken.

This describes the first document and so should be what the Project Manager names it.

Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activities (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $256,520 Batch setup (setups) $261,360 General factory (direct labour-hours) $178,560 Expected Activity Activities Product X Product Y Total Machine related 4,300 6,300 10,600 Batch setup 8,600 1,300 9,900 General factory 3,300 6,300 9,600 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

Answers

Answer:

The total amount of overhead cost allocated to Product X would be closest to $ 392,480

Explanation:

Activities (and Activity Measures)          Estimated Overhead Cost

Machine related (machine-hours)               $256,520

Batch setup (setups)                                    $261,360

General factory (direct labour-hours)         $178,560

                                                       Expected Activity

Activities                   Product X      Product Y         Total

Machine related          4,300             6,300            10,600

Batch setup                 8,600             1,300              9,900

General factory           3,300             6,300             9,600

The total amount of overhead cost allocated to Product X would be closest to:

Machine related = (4,300 × $256,520) ÷ 10,600 = $104,060

Batch setup = (8,600 × $261,360) ÷ 9,900 = $227,040

General factory = (3,300 × $178,560) ÷ 9,600 = $61,380

Total = $104,060 + $227,040 + $61,380 = $ 392,480

On January 1, 2020, Milwaukee Corporation issued $3,000,000 of its 20-year, 8% bonds payable at 96. Interest is payable annually on January 1. The entry to accrue interest on December 31, 2020 would include a

Answers

Answer:

It will include credit to discount on bonds payable for $6,000

Explanation:

Solution

Given that

Issue price of bond = $3,000,000 * 96%

Issue of bond =$ 2,880,000

Thus,

The discount of bond payable = $3,000,000 - $ 2,880,000

=$120,000

Amortization of discount of bond payable = $120,000/20

=$6,000

Now,

We prepare an entry to accrue interest which is given below:

Entry to accrue interest

Date            Account Titles and Explanation       Debit          Credit

31-12-2020        Interest expense                         $246,000

                  discount of bond payable                                     $6,000

                          Interest payable                                             $240,000

                 (To record the interest accrued)

Toxemia Salsa Company manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount):
Wimpy Mild Medium Hot Atomic
Contribution margin $(2000) $45,000 $35,000 $50,000 $162,000
Segment margin $(16,000) $(5000) $7000 $10,000 $94,000
Segment margin less
allocated common fixed
expenses $(26,000) $(15,000) $(3000) $0 $84,000
Toxemia expects similar operating results for the upcoming year. If Toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue? A no flavors should be discontinued B wimpy C wimpy and mild D wimpy, mild, and medium

Answers

Answer:

C wimpy and mild

Explanation:

The Allocated fixed Common overhead is irrelevant for this Decision because the expense is a head office expense which is managed by a Head office department.

Of our interest is the Incremental Revenues and Expenses that result from existence of a Segment (Segment Margin).

The segment margin consists of controllable Fixed and Variable costs attributable to a particular segment.

Discontinue flavor giving a negative Segment Margin that is : Wimpy and Mild

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the average mark of candidates in an aptitude test was 138.5 with a standard deviation of 10.6. three scores extracted from the test are 178,122,100.what is the average of the extracted scores that are extreme value A meter stick hurtles through space at a speed of 0.95c relative to you, with its length perpendicular to the direction of motion. You measure its length to be equal to:_______a. 0 m. b. 0.05 m. c. 0.95 m. d. 1.00 m. e. 1.05 m. company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? Note: when flotation costs are given as a percentage instead of in dollar terms, the denominator in the formula changes from (P-F) to P*(1-F). Hint: remember that for preferred stock the growth rate of the dividend is zero. If b=5, then 4^14^b is equal to? 5 % of 401.16 m Give your answer rounded to 2 DP. Which word correctly completes the sentence?Carrie waited around for a while; it was only fifteen minutes later that shethat she had missed the bustO ArealizeB. realityrealizedODrealizing why people need not be representative to government I need help please please Qu significaban algunos animales para ellos? Qu significado tenan las plantas para ellos? Lograron convivir con los animales? Por qu? Photoelectric effect: A. What is the maximum kinetic energy of electrons ejected from barium (W0=2.48eV) when illuminated by white light, lambda=410-750nm? B. The work functions for sodium, cesium, copper, and iron are 2.3, 2.1, 4.7, and 4.5eV, respectively. Which of these metals will not emit electrons when visible light shines on it? Solve the linear equation. 7x +10 = 18x 1 Almost a century after the Second National Banks charter lapsed, the government created Zachary can't believe how bad London's traffic is today. In the past 10 minutes, his cab has barely moved 500 meters! He wonders if walking would have been faster. If Zachary walks at an average speed of 5 kilometers per hour, how many minutes would it take him to walk 500 meters? Please help. I will mark you as brainliest and give you points :) For the given equation, find the values of a, b, and c, determine the direction in which the parabola opens, and determine the y-intercept. Decide which table best illustrates these values for the equation: y = x squared minus 6 x Table A a b c up or down y-intercept 1 -6 0 up (0,0) Table B a b c up or down y-intercept 1 0 0 up (0,-6) Table C a b c up or down y-intercept 1 6 0 up (0,0) Table D a b c up or down y-intercept 1 -6 0 down (0,0) a. Table A c. Table C b. Table B d. Table D Please select the best answer from the choices provided Read the paragraph from the section "The rise of Islam." What conclusion is supported by this paragraph?"Under the caliphs, life and culture in great cities blossomed. Some of these cities included Cairo in what is now Egypt and Damascus in what is now Syria. Poets, scientists, and philosophers wrote thousands of books. They also developed the number system that we all use today. Inventors came up with technologies like the pinhole camera, soap, windmills, and surgical tools." 1. Poets and philosophers needed a number system in order to write their books. 2. The ideas developed in Islamic cities are still important to the modern world. 3. The most important Islamic poets and scientists came from Cairo and Damascus. 4. The inventions we use today have not changed since the Middle Ages. How is each of the following likely to be affected by a recession: a. the natural unemployment rate. b. the cyclical unemployment rate. c. the inflation rate. d. the poll ratings of the president Which sentence describes how the migration of farmers from rural to urban areas affected Europe? A. Many villages were abandoned, leading to lower food production. B. The number and population of cities increased rapidly.C. Most farmers in rural areas prospered because more land was available.D. Governments began to regulate industries to ensure the welfare of workers. How did Einsteins and Newtons theories differ in terms of explaining the cause of gravity? Write a paragraph about what you did yesterday. Don't forget to use the past tense!