Use the following data to calculate the cost of goods sold for the period:
Beginning Raw Materials Inventory $30,600
Ending Raw Materials Inventory 70,600
Beginning Work in Process Inventory 40,600
Ending Work in Process Inventory 46,600
Beginning Finished Goods Inventory 72,600
Ending Finished Goods Inventory 68,600
Cost of Goods Manufactured for the period 246,600
Answer:
The cost of goods sold for the period is:
= $250,600.
Explanation:
a) Data and Calculations:
Beginning Raw Materials Inventory $30,600
Ending Raw Materials Inventory 70,600
Beginning Work in Process Inventory 40,600
Ending Work in Process Inventory 46,600
Beginning Finished Goods Inventory 72,600
Ending Finished Goods Inventory 68,600
Cost of Goods Manufactured for the period 246,600
To determine the cost of goods sold:
Beginning Finished Goods Inventory $ 72,600
Cost of Goods Manufactured for the period 246,600
Cost of goods available for sale $319,200
Ending Finished Goods Inventory (68,600)
Cost of goods sold $250,600
Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations. Standard Custom Direct labor costs $60,000 $103,000 Machine hours 1,400 1,290 Setup hours 96 400 Total estimated overhead costs are $300,000. Overhead cost allocated to the machining activity cost pool is $195,000, and $105,000 is allocated to the machine setup activity cost pool.
1. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.)
2. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 12.25.)
3. Determine the difference in allocation between the two approaches. (Round answers to 0 decimal places, e.g. 1,225.)
Answer:
Saddle Inc.
1. Overhead rate using the traditional (plantwide) approach is:
= $1.84
2. The overhead rates using activity-based costing approach are:
Machining = $72.49
Machine setup = $211.69
3. The difference in allocation between the two approaches:
Differences:
ABC approach $121,808 $178,188 $299,996
Using plantwide $110,400 $189,520 $299,920
Differences $11,408 -$11,332 $76
Explanation:
a) Data and Calculations:
Total estimated overhead costs = $300,000
Machining activity = $195,000
Machine setup activity = $105,000
Standard Custom Total
Direct labor costs $60,000 $103,000 $163,000
Machine hours 1,400 1,290 2,690
Setup hours 96 400 496
Overhead rate based on direct labor costs = $1.84 ($300,000/163,000)
Overhead rates using activity-based costing approach:
Machining = $72.49 ($195,000/2,690)
Machine setup = $211.69 ($105,000/496)
Allocation of overhead costs:
Standard Custom Total
Using plantwide $110,400 $189,520 $299,920
Using ABC:
Machining $101,486 $93,512 $194,998
Machine setup 20,322 84,676 104,998
Total costs $121,808 $178,188 $299,996
Differences:
ABC approach $121,808 $178,188 $299,996
Using plantwide $110,400 $189,520 $299,920
Differences $11,408 -$11,332 $76
You own a portfolio equally invested in a risk-free asset and two stocks (If one of the stocks has a beta of 1 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio
Answer:
2
Explanation:
Beta measures systemic risk
The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.
If the portfolio is less risky than the market, its beta would be less than one
If the portfolio is more risky than the market, its beta would be greater than one
The beta of a risk free asset is zero
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
1 = (1/3 x 1) + (1/3 x 0) + (1/3 x s)
1 = 1/3 + (1/3 x s)
1 - 1/3 = 1/3s
2/3 = 1/3s
s = 2/3 x 3 = 2
If the annual interest rate printed on the face of a bond is 20 percent, the face value of the bond is $1,000, and you purchase the bond for $1,250, what is the current yield on the bond
Answer: 16%
Explanation:
Given the details in the above question, you can calculate the yield of a bond using the following formula:
= Par value of bond * Coupon rate/ Current price of bond
= 1,000 * 20% / 1,250
= 1,000 * 0.00016
= 0.16
= 16%
This makes sense because the bond is selling at a price above the face value of $1,000 which can only mean that the coupon rate is higher than the yield.
Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $42,000 was purchased on September 1. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a five-year life. What is the total depreciation expense for the current year
Answer: $2,533.33
Explanation:
First you need to calculate the annual depreciation:
= (Cost of asset - Salvage value) / Useful life
= (42,000 - 4,000) / 5
= 38,000 / 5
= $7,600
The asset was bought on September 1 and needs to be depreciated for the months of the year it was in the business. That would be September to December which is 4 months.
Depreciation for that year is:
= 7,600 * 4/12 months
= $2,533.33
One large bakery still receives flour in 25-pound bags from their own company's warehouse. They use an average of 5500 bags a year. The production step that uses these bags use 35 bags per day while the usage is 16 bags per day. It costs $12.00 to configure the machines for each run. Annual carrying costs are $7.50 per bag. What will be their average number of bags on hand if they request the EPQ bags in each order
Answer:
48.87 bags
Explanation:
First, we need to calculate the EPQ as follow
EPQ = [tex]\sqrt{\frac{2 D S }{H(1-d/p)}}[/tex]
Where
D = Annual Demand = 5500
S = Setup cost = $12
H = Carrying cost = $7.5
d = Daily usage = 16
p = Daily production = 35
Placing value sinthe formula
EPQ = [tex]\sqrt{\frac{2 X 5500 X 12 }{7.5(1-16/35)}}[/tex]
EPQ = [tex]\sqrt{\frac{132000 }{4.07142857}}[/tex]
EPQ = [tex]\sqrt{32421.05}[/tex]
EPQ = 180.06
Now Calculate the average number of bags in hand as follow
Average Number of Bags = [tex]\frac{EPQ}{2} X ( 1 - d/p )\\[/tex]
Placing values in the formula
Average Number of Bags = [tex]\frac{180.06}{2} X ( 1 - 16/35 )\\[/tex]
Average Number of Bags = 48.87
Which of the following is a step in the creation of an Operational Definition?
a. select a sponsor
b. conduct a test to check for potential misinterpretation
c. list the suppliers
d. establish the problem
The answer to the question is D: Establish the problem.
The operational definition gives a meaning to used terminologies and procedures.
In order to create an operational definition, the following steps are necessary for one to take:
You have to have an identification of the features that you want to measure, this is the same as the problem establishment.The next step lies in the selection of the instrument that you intend to useYou have to give a definition of the method of testingStatement of the criteria for decision makingDocumentation of the definitionLastly you have to test the operational definitionRead more at https://brainly.com/question/13402810?referrer=searchResults
Can someone please help with this question ^▪︎^
Answer:
liability
Explanation:
A dependency requiring a design be completed before manufacturing can start is an example of a(n):_________
A. Discretionary Dependency.
B. External dependency.
C. Mandatory dependency.
D. Scope dependency.
Answer:
C. Mandatory dependency.
Explanation:
A dependency that requires a design to be completed before manufacturing can begin is an example of a mandatory dependency, which contractually mandates that certain tasks be completed on the design as a requirement.
Mandatory dependency is more used when a project has certain limitations that require the fulfillment of other activities.
The following data relate to the direct materials cost for the production of 2,200 automobile tires:
Actual: 55,500 lbs. at $1.7 per lb.
Standard: 56,600 lbs. at $1.65 per lb.
Required:
Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
Answer and Explanation:
The computation is given below:
Direct Material price variance is
= ($1.70 per lb - $1.65 per lb) × 55,500 lbs.
= $2,775 Unfavorable
Direct Material quantity variance is
= (55,500 lbs. - 56,600 lbs.) × $1.65 per lb
= $-1,815 Favorable
Total Direct Materials Cost Varianceis
= Actual Materials Cost - Standard Materials Cost
= (55,500 lbs. × $1.70 per lb) - (56,600 lbs. × $1.65 per lb)
= $94,350 - $93,390
= $960 Unfavorable
An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,540 devices and took 27 workers two weeks (40 hours per week) to complete. The army contract was for 5,940 devices that were produced by 37 workers in three weeks (40 hours per week). a. Calculate the productivity for navy and army contracts in units produced per labor hour.
Answer:
Explanation:
For Navy contract, the total number of man hours put into production will be:
= 27 × 40 × 2
= 2160 man hours
Then, the units produced per labor hour will be:
= 2540 devices / 2160
= 1.176 units per labor hour.
For Army contracts, the total number of man hours put into production will be:
= 37 × 40 × 3
= 4440 man hours
Then, the units produced per labor hour will be:
= 5940/4440
= 1.338 units per labor hour.
A new kind of smartphone is selling for $500. The first cell phone costs $300 to produce, and each subsequent phone costs $325 to produce. What is the producer surplus for this market when selling four cell phones at this rate
Answer:The profit is $740
Explanation:4(500)-[3(320)+300]
4x500=2000
3x320=960+320=1260
2000-1260=$740
Elderly woman purchases a table from a local furniture store for $5,000. She decides she does not want the table because of a defect. The woman successfully cancels the payment on the credit card for payment of the table, and continues to keep the table despite the store requesting to pick the table up from woman. What statement is true:
Answer:
She cannot keep the table
Explanation:
In the given scenario we will look at the different parties and wether they are satisfied with the transaction.
The buyer picked the table after which she complained about a defect and refused to pay. Because she refused to pay she cannot take ownership of the table so she has to return it.
The store did not receive payment for the table so they have the right to request for the table back from the elderly woman.
So she cannot keep the table.
The statement that is true is that she cannot keep the table
In the given scenario, we will look at the different parties and whether they are satisfied with the transaction.
Here, the buyer picked the table after which she complained about a defect and refused to pay. Because she refused to pay she cannot take ownership of the table so she has to return it.
Now, the store did not receive payment for the table so they have the right to request for the table back from the elderly woman.
In conclusion, the statement that is true is that she cannot keep the table
Read more about statement
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You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis. If you presently have two cups of tea and one scone, what this the marginal rate of substitution (MRS) at this point
Answer:
Infinity
Explanation:
In the case when the tea and scones are considered to be the perfect complements also you give preference one cup of tea over the one scone
Plus the indifferent curve with tea should be plotted on the vertical axis
So in the case when there is 2 cups of tea with one scone so at this point, the MRS should be at infinity as the indifference curve should be in downward sloping because we presume that there is preferences done at monotonicity
A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,782,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is:
Answer:
Total Contribution = $52
Explanation:
Given:
Fixed cost = $1,782,000
Product Sales price VC per unit
Regular $20 $8
Ultra $24 $4
Computation:
Contribution = Sales - VC
Contribution on regular product = 20 - 8 = $12
Contribution on ultra product = 24 - 4 = $20
Total Contribution = (1 x 12) + (2 x 20)
Total Contribution = 12 + 40
Total Contribution = $52
Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated to the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period: Department Direct Expenses No.of Employees Payroll $ 26,000 Milling 80,000 52 Assembly 109,600 78 The total cost of operating the Milling Department for the current period is: rev: 12_17_2020_QC_CS-243789 Multiple Choice $90,400. $95,600. $10,400. $15,600. $80,000.
Answer:
$90,400
Explanation:
Calculation to determine Cost of operating mining department
Using this formula
Cost of operating mining department= Direct Cost + Payroll cost allocated
Let plug in the formula
Cost of operating mining department= 80,000 + (26,000/130)*52
(52+78=130)
Cost of operating mining department= 80,000 + $10,400
Cost of operating mining department= $90,400
Therefore Cost of operating mining department is $90,400
Desks by Daisy sells a student desk for $100 per unit. The variable cost per desk is $40 and Daisy's fixed costs of producing the desks equals $15,000 per month. Daisy needs to sell _______ desks per month in order to break-even.
Answer:
250
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$15,000 / (100 - 40)
$15,000 / 60
250
The book value of long-term assets is reported on:
Jenna is a single taxpayer. During 2018, she earned wages of $110,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,800. How much does Jenna owe to the IRS for taxes
Answer:
Jenna
The amount of tax that Jenna owes to the IRS for taxes (Tax Liability) for 2018 is:
= $23,520.
Explanation:
a) Data and Calculations:
Earned wages for 2018 = $110,000
Standard deduction = (12,000) for a single taxpayer
Taxable income = 98,000
Capital gains from common stock = $7,800
Capital gains tax rate for a single = 0% (below $40,000)
Taxable income = $98,000
Tax rate (24%) for income over $82,500
Tax liability = $23,520 ($98,000 * 24%)
Locus Company has total fixed costs of $112,000. Its product sells for $35 per unit and variable costs amount to $25 per unit. Next year Locus Company wishes to earn a pretax income that equals 10% of fixed costs. How many units must be sold to achieve this target income level?
A.1,120.
B. 8,214.
C.11,200.
D.12,320.
E.14,080.
Answer:
D.12,320.
Explanation:
The computation of the number of units to be sold for attaining the target income level is given below:
Target profit
= 10% of fixed cost
= 10% of 112,000
= 11200
Now
Sales needed = (Fixed costs +target profit) ÷ unit contribution margin
= (112,000+11,200) ÷ (35-25)
= 123,200 ÷ 10
= 12,320 units
. If Canace Company, with a break-even point at $313,500 of sales, has actual sales of $570,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1. $fill in the blank 1 2. fill in the blank 2 % b. If the margin of safety for Canace Company was 25%, fixed costs were $1,419,375, and variable costs were 75% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) $fill in the blank 3
Answer:
Canace Company
a-1) Margin of safety is:
= $256,500.
a-2) Margin of safety is:
= 55%.
b) The amount of actual sales is:
= $5,677,500.
Explanation:
a) Data and Calculations:
Break-even point sales = $313,500
Actual sales = $570,000
Margin of safety = $256,500 ($570,000 - $313,500)
Margin of safety as a percentage of sales = 55% ($313,500/$570,000 * 100)
2) Margin of safety = 25%
Fixed costs = $1,419,375
Break-even point in sales dollars = $1,419,375
Variable costs = 75% of sales
Contribution margin at break-even point = 25% (100% - 75%) = $1,419,375
Actual sales in dollars = $5,677,500 ($1,419,375/25%)
A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is:______.
a. $520 unfavourable.
b. $400 unfavourable.
c. $120 favourable.
d. $520 favourable.
e. $400 favourable.
Answer:
d. $520 favourable.
Explanation:
Calculation to determine what The direct materials price variance is:
Using this formula
Material Price variance= AQ(SP- AP)
Where,
Actual Quantity= 5200
Standard price= $2
Actual Price= $1.9
Let plug in the formula
Material Price variance=5200($2-$1.9)
Material Price variance=5200*$0.1
Material Price variance=$520 Favourable
Therefore The direct materials price variance is:$520 Favourable
The management of Fuzzy Button Clothing Company controls 58% of the company's stock. The firm did not meet any of its quarterly sales projections for the last year. Some of the firm's institutional investors are worried that the firm's poor performance is partly because management has not been focused on maximizing shareholder wealth. Which of the following measures would the institutional investors most likely want to see implemented?
A. They would like to see the size of the board of directors increased, because larger boards usually implement a higher degree of corporate governance.
B. They would like to see that the company has an interlocking board of directors with one of the company's strategic partners
C. They would like to see that the majority of the company's board of directors is composed of true outsiders.
It is reasonable to assume that a firm's management is going to be ultimately motivated to act in their own best interest. It can be a serious problem for shareholders if management's self-interests do not align with shareholders' self-interests. Select the statement that best describes the board of directors' actions in the following scenario:
Happy Lion Manufacturing Inc. currently has $1.1 billion in cash on its balance sheet. The CFO thinks the firm will need $600 million in cash to finance operations for the next year. The CFO has recommended that the firm keep the excess cash in a marketable securities portfolio to allow for unexpected costs. However, the board of directors has decided that the firm will pay this money out to the shareholders in the form of a cash dividend.
D. The board's decision will give management the incentive to make decisions that are not in the shareholders' best interest.
E. The board's decision will help align management's interests with the shareholders' interests.
F. The board's decision is extremely risky and not very practical Flash Player WIN 32,0,0.387
Answer:
Fuzzy Button Clothing Company
1. The measure that the institutional investors would most likely want to see implemented is:
C. They would like to see that the majority of the company's board of directors is composed of true outsiders.
Happy Lion Manufacturing Inc.
2. The statement that best describes the board of directors' actions in the following scenario is:
E. The board's decision will help align management's interests with the shareholders' interests.
Explanation:
a) Data and Calculations:
Fuzzy Button Clothing Company
Management control = 58%
Institutional and other stockholders = 42% (100% - 58%)
Happy Lion Manufacturing Inc.
Cash on its balance sheet = $1.1 billion
Cash needed to finance operations next year = $600 million
Excess cash = $500 million ($1.1 billion Minus $600 million)
CFO's recommendation = keep excess cash in a marketable securities for unexpected costs
Board of directors' decision = pay the excess out to the shareholders in the form of a cash dividend.
The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $8.10/unit; direct labor, $11.10/unit; and manufacturing overhead, $373,100 $9.10/unit. Required: If anticipated production for 2013 is 41,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Variable costing $28.3
Absorption costing $37.4
Explanation:
Calculation to determine the unit cost using variable costing and absorption costing.
VARIABLE COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit
Units cost $28.3
ABSORPTION COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit.
Fixed manufacturing overhead per unit $9.10/unit.
($373,100 ÷ 41,000 units)
Units cost $37.4
Therefore the unit cost using variable costing and absorption costing are:
Variable costing $28.3
Absorption costing $37.4
Which of the following is not a standard organizational structure
Answer:
sequential
Explanation:
organizational structures come in four general types – functional, divisional, matrix and flat
Sequential is not a standard organizational structure.
What are organizational structures?An organizational structure outlines how tasks are assigned, coordinated, and overseen in order to achieve organizational objectives. The basis upon which standard operating procedures and routines are built is provided by organizational structure.
Organizational structures come in four general types – functional, divisional, matrix, and flat.
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Meyer Company reported the following for its recent year of operation:
From Income Statement:
Depreciation Expense $1,000
Loss on the Sale of Equipment (3,000)
From the comparative balance sheet:
Beginning balance, equipment $12,500
Ending balance, equipment 8,000
Beginning balance, accumulated depreciation 2,000
Ending balance, accumulated depreciation 2,600
No new equipment was purchased during the year. What was the selling price of the equipment?
Answer:
$900
Explanation:
Calculation to determine the selling price of the equipment
First step
Cost of equipment sold = Beginning balance - Ending balance
Cost of equipment sold=$12,500-$8,000
Cost of equipment sold=$4,500
Second step
Ending balance= Beginning balance + Depreciation expense - Accumulated depreciation on equipment sold
Ending balance=$2,000+$1,000-$600
Ending balance=$2,400
Third step
Book value = Cost of equipment sold - Accumulated depreciation on equipment sold
Book value=$4,500-$600
Book value=$3,900
Now let determine the selling price of the equipment
Selling price=$3,000-$3,900
Selling price=$900
Therefore the selling price of the equipment.is $900
Yosko Company manufactures luggage sets. Yosko sells its luggage sets to department stores. Yosko expects to sell 2,050 luggage sets for $280 each in January and 2,400 luggage sets for $280 each in February. All sales are cash only. Prepare the sales budget for January and February
Answer:
Yosko Company
Sales Budget
Two month ended January 31 and February 28
January February
Budgeted luggage sets to be sold 2,050 2,400
Sales price per set $280 $280
Total sales $574,000 $672,000
Question 4
Which of the following is an example of an asset?
O Repairs and Maintenance
Accounts Receivable
o
o Accounts Payable
GST Collected
Answer:
Accounts Receivable
Explanation:
Everything else is a liability
The manager of the bank where you work tells you that your bank has $6 million in excess reserves. She also tells you that the bank has $400 million in deposits and $362 million in loans. Given this information you find that the reserve requirement must be
Answer and Explanation:
The computation of the reserve requirement is given below;
Required reserves is
= Deposits - loans - excess reserves
= $400 - $362 - $6
= 32 million
And,
Required reserve ratio is
= Required reserves ÷ Deposits
= 32 ÷ 400
= 8%
In this way, it should be determined so that the correct value & percentage could come
For each item indicate whether it would appear on the income statement, balance sheet, or retained earnings statement: a. Service Revenue select a financial statement b. Utilities Expense select a financial statement c. Cash select a financial statement d. Accounts Payable select a financial statement e. Supplies select a financial statement f. Salaries and Wages Expense select a financial statement g. Accounts Receivable select a financial statement h. Common Stock select a financial statement i. Equipment select a financial statement j. Advertising Expense select a financial statement k. Dividends select a financial statement l. Notes Payable select a financial statement
Answer:
Indication of Financial Statement Items:
Item Financial Statement
a. Service Revenue Income Statement
b. Utilities Expense Income Statement
c. Cash Balance Sheet
d. Accounts Payable Balance Sheet
e. Supplies Balance Sheet
f. Salaries and Wages Expense Income Statement
g. Accounts Receivable Balance Sheet
h. Common Stock Balance Sheet
i. Equipment Balance Sheet
j. Advertising Expense Income Statement
k. Dividends Retained Earnings Statement
l. Notes Payable Balance Sheet
Explanation:
a) Company A's Income Statement is a financial statement that shows its financial performance in terms of profitability. It contains the revenue and expenses. It determines the net income (excess of revenue over expenses).
b) Company A's Balance Statement is a financial statement that indicates its financial position by showing the assets, liabilities, and equities.
c) The statement of retained earnings is a financial statement that connects its income statement to the balance sheet. It shows the movement in the retained earnings.
