James must include $720 in his yearly gross income related to the fringe benefit.
Where the value of the athletic facilities is to be excluded from an employee's gross income, the facilities must be situated on the employer's business location. Moreover, the athletic facilities must be used exclusively by the employees and their dependents.
Due to the above, James's membership is at a public YMCA, hence taxable.
Also, James start date with the corporation was not given, he would however receive 12 months of the benefit.
12 × $60 = $720
Therefore, James must include the full cost of $720 paid by his employer in his yearly gross income related to the fringe benefit.
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Question 4 of 15. Barney and Len each own 40% of partnership BLT. On September 15, 2019, Barney sells his interest to Ted, who is a 20% partner. On September 16, 2020, Len sells his interest to Ted. When does the partnership terminate? 9/15/2020 9/16/2020 12/31/2020 The partnership does not terminate.
Answer: 9/16/2020
Explanation:
Following the information given in the question, it should be noted that the partnership will terminate on 9/16/2020.
A partnership is terminated in a situation whereby there's a transfer of interest such that there's only one partner who then remains. In this casez the termination date will be the date that the interest was sold. Since the sale of interest took place on September 16, 2020, then this will be the termination date.
Full service brokerage service includes: A. Origination, underwiritng, and sales B. Registration of securities, storage of securities, and execution of trades C. Execution of trades, investment advice, and margin credit D. Cash management service, private placements, and security distribution
Answer:
C. Execution of trades, investment advice, and margin credit
Explanation:
A full service brokerage firm provides different kind of services like trading, wealth management, etc. And, for giving these types of services it would charge to the clients on the commission basis. Also, it hels the clients via support them & facilitate them with respective to trading, buidling and managing the portfolios
Therefore, the option c is correct
Corporation sold 210000 watches and produced 217000 watches that it sold for $19 each. The company determined that fixed manufacturing cost per unit was $8 per watch. The company reported a $1,302,000 gross margin on its financial statements. Determine the total contribution margin.
Answer:
The total contribution margin is:
= $2,982,000.
Explanation:
a) Data and Calculations:
Production units = 217,000 watches
Sales units = 210,000 watches
Sales price per watch = $19
Sales revenue = $3,990,000 (210,000 * $19)
Cost of goods sold 2,688,000 ($3,990,000 - $1,302,000) ($12.80 each)
Gross profit = $1,302,000
Cost of goods sold per unit = $12.80 ($2,688,000/210,000)
Fixed cost per unit = $8
Variable cost per unit = $4.80 ($12.80 - $8.00)
Contribution margin per unit = $14.20
Total contribution margin = $2,982,000 ($14.20 * 210,000)
Suppose a group of people read an article on capital punishment. Prior to reading the article, 60% of the members of the group were opposed to capital punishment, while 40% of the members of the group were in favor of capital punishment. According to studies of human decision-making, which of the following is likely?
a. The members of the group would elect a representative in favor of capital punishment.
b. After reading the article, all members of the group are in favor of capital punishment.
c. After reading the article, all members of the group oppose capital punishment.
d. After reading the article, 60% of the members of the group are opposed and 40% of the members of the group are in favor of capital punishment.
Answer:
According to studies of human decision-making, the most likely is:
c. After reading the article, all members of the group oppose capital punishment.
Explanation:
The article, provided for reading by supporters and opposers, will likely sway the 40% of the group, who are initially supportive of capital punishment, to now oppose capital punishment,especially if the article critically opposes capital punishment. There is no way majority of the group will support capital punishment. Therefore, options a and b are incorrect. For option d, after reading the article, the opinions of some opposers and supporters may shift either way. They will not remain the same as before. This rules out option d, leaving only option c as the correct option.
Pettygrove Company had 800,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $4,000,000, and Retained Earnings is $1,200,000. The company issues a 2-for-1 stock split. The market price of the stock is $14. What is the balance in the Common Stock account after this issuance
Answer:
$8,000,000
Explanation:
Balance in the Common Stock account = Number of hare after split * Par value of share
Balance in the Common Stock account = 800,000 * 2 * $10/2
Balance in the Common Stock account = $8,000,000
So, the balance in the Common Stock account after share split will be $8,000,000.
Historical demand for a product is: DEMAND January 13 February 12 March 16 April 13 May 17 June 16 a. Using a weighted moving average with weights of 0.50 (June), 0.30 (May), and 0.20 (April), find the July forecast
Answer: 15.7 units
Explanation:
July forecast = (Weight of June * Demand in June) + (Weight of May * Demand in May) + (Weight of April * Demand in April)
= (0.5 * 16) + (0.3 * 17) + (0.2 * 13)
= 8 + 5.1 + 2.6
= 15.7 units
Lila Harrison is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:
Answer:
Debit to salary expense for $400.00
Explanation:
In the case when a company is preparing the profit and loss statement so they first have the gross salary
The net salary should be
= Gross salary - deductions - taxes
Now in order to record the gross pay we have to debit to the salary expense for $400 as it increased the expense and expense contains the normal debit balance
Happy Lawn Company started a lawn services business on January 1, 20X1 (so all account balances were zero on January 1, 20X1). It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. All of these sales were made on credit. During 20X1, cash collected from its customers totaled $750,000 for services rendered during the year. At the end of 20X1, the Accounts Receivable for Happy Lawn had a balance of $60,000. After all write-offs but before the year-end adjusting entry, the Allowance for Doubtful Accounts had a debit balance of $4,000.
Assume that Happy Lawn uses the percentage of credit sales method (to directly calculate the bad debt expense) instead of the aging method, and it is estimated that it will not collect 1% of the total credit sales.
Required:
Under this assumption what is Happy Lawn's 20X1 Bad Debt Expense?
Answer:
$754,000
Explanation:
Calculation to determine Happy Lawn's 20X1 Bad Debt Expense?
Using this formula
Bad Debt Expense=Cash collected +
Allowance for Doubtful Accounts debit balance
Let plug in the formula
Bad Debt Expense=$750,000+$4,000
Bad Debt Expense=$754,000
Therefore Happy Lawn's 20X1 Bad Debt Expense is $744,000
Based on this given assumption, Happy Lawn's 20x1 Bad Debt Expense for the year is $12,140 ($8,140 + $4,000).
Data and Calculations:
Cash collected during 20X1 = $750,000
Accounts Receivable balance at year-end = $60,000
Doubtful Accounts after write-offs = $4,000
The total credit sales = $814,000 ($750,000 + $60,000 + $4,000)
Estimated uncollectible = 1% of total credit sales
Therefore, the uncollectible allowance (doubtful accounts) balance would be = $8,140 ($814,000 x 1%)
Thus, based on the assumption, Happy Lawn's 20x1 Bad Debt Expense is $12,140 ($8,140 + $4,000).
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what is the purpose of the Statement of Understanding
Answer:
It ensures that when consumers sign the Medicare Advantage and/or Part D Enrollment Application, they are acknowledging their understanding that they are actually enrolling, in which plan they are enrolling, and standard disclosures.
Explanation:
The maximum price that can be asked for the new jPad model is $2,000 at which point they would sell 0 units. It costs Pear $600 to manufacturer and deliver these jPads to their stores. Determine the optimal price for this new jPad, which can be assumed to operate in a monopoly (at least upon introduction).
Answer: $700
Explanation:
Based on the information given in the question, the optimal price for this new jPad, which can be assumed to operate in a monopoly will be calculated thus:
P = 2000+Q
TR = P × Q
TR = (2000 + Q) × Q
TR = 2000Q + Q²
MR = 2000 + 2Q
MC = 600
Since marginal revenue equals to marginal cost, this will be:
MR = MC
2000+2Q = 600
2Q = 2000 - 600
2Q = 1400
Q = 1400/2
Q = 700
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 20% of the Maintenance Department (M) cost and a Maintenance Department that includes not only $250,000 of direct costs but also 40% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)
a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]
b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)
c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Answer:
The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Explanation:
a) Data and Calculations:
Direct costs Percent of Service Dept.
Janitorial Department (J) $500,000 20% of M
Maintenance Department (M) $250,000 40% of J
b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations. With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.
A company borrowed $4,000 from the bank at an interest rate of 9%. By the end of the accounting period, the loan had been outstanding for 30 days. Demonstrate the required adjusting entry by choosing the correct statement below.
Debit Interest payable for $30.
Credit Unearned revenues for $30.
Credit Interest expense for $30.
Senior managers are responsible for making specific plans to implement the strategy. The above statement is true or false. explained
Answer:
True
Explanation:
If you had to recommend one product, which product would you recommend they create? Underline or highlight your answer:
● Organic Bloom Shampoo.
● Moisturizing Black Soap Shampoo with Dandruff Control.
● Coconut Protein Shampoo and Conditioner.
Answer:
the second option
Explanation:
my dandruff is pretty bad
Moisturizing Black soap Shampoo with Black dandruffs Ultimate control is what I would seriously recommend. A lot of people are getting dandruffs and lices more nowadays, so the product would be very fitting for the demand.
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,300 Materials costs $ 14,400 Conversion costs $ 6,500 Percent complete with respect to materials 75% Percent complete with respect to conversion 20% Units started into production during the month 11,000 Units transferred to the next department during the month 9,900 Materials costs added during the month $ 173,500 Conversion costs added during the month $ 243,500 Ending work in process inventory: Units in ending work in process inventory 3,400 Percent complete with respect to materials 90% Percent complete with respect to conversion 30% The cost per equivalent unit for materials for the month in the first processing department is closest to: Multiple Choice $12.21 $13.15 $11.90 $14.50
Answer:
Inacio Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.50
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 2,300 $14,400 $6,500
Percentage of completion 75% 20%
Units started during the month 11,000
Total units available 13,300
Units transferred to the next 9,900 100% 100%
Ending work in process 3,400 90% 30%
Costs added during the month $173,500 $243,500
Equivalent units of production:
Units Materials Conversion
Units transferred to the next 9,900 9,900 (100%) 9,900 (100%)
Ending work in process 3,400 3,060 (90%) 1,020 (30%)
Equivalent units of production 12,960 10,920
Costs of production: Materials Conversion
Beginning work in process $14,400 $6,500
Costs added during the month 173,500 243,500
Total costs of production $187,900 $250,000
Cost per equivalent unit: Materials Conversion
Total costs of production $187,900 $250,000
Equivalent units of production 12,960 10,920
Cost per equivalent unit $14.50 $22.89
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $20,600. The equipment was used for 3,080 hours during Year 1, 1,848 hours in Year 2, 2,464 hours in Year 3, and 1,408 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining- Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Year 4 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 2. What method yields the highest depreciation expense for Year 1
Answer:
Straight line :
Depreciation expense each of the four years is $57,200
total depreciation = $228,800
Double declining :
Year 1 = $124,700
Year 2 = $62350
Year 3 = $31,175
Year 4 = $15,588
Total depreciation expense = $233,813
Activity based depreciation
year 1 = $80,080
year 2 = $48,048
year 3 = $64,064
year 4 = $36,608
Total depreciation expense = $288,800
the deprecation method that yields the highest depreciation expense in year 1 is the double declining method
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($249,400 - $20,600) / 4 = $57,200
Depreciation expense each of the four years is $57,200
total depreciation = $57,200 x 4 = $228,800
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/4
Year 1 = 2/4 x $249,400 = 124,700
book value = $249,400 - 124,700 = 124,700
Year 2 = 2/4 x 124,700 = 62350
Book value = 124,700 - 62350 = 62350
Year 3 = 2/4 x 62350 = 31,175
book value = 62350 - 31,175 = 31,175
Year 4 = 2/4 x 31,175 = 15,587.50
Addition of the depreciation expenses = $233,812.50
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
($249,400 - $20,600) / 8,800 = 26
year 1 = 26 x 3,080 = $80,080
year 2 = 26 x 1,848 = $48,048
year 3 = 26 x 2,464 = $64,064
year 4 = 26 x 1,408 = $36,608
Addition of the depreciation expenses = $288,800
MC Qu. 150 Glaston Company manufactures... Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 184,000 in October, 192,500 in November, and 189,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $141,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Answer:
$288,200
Explanation:
Computation for the total budgeted overhead that would appear on the factory overhead budget for month of October.
Using this formula
Total budgeted overhead=(Units expected to be produced*Variable overhead rate)+Fixed overhead
Let plug in the formula
Total budgeted overhead=(184,000 * $0.80) + $141,000
Total budgeted overhead=$147,200+$141,000
Total budgeted overhead = $288,200
Therefore the total budgeted overhead that would appear on the factory overhead budget for month of October is $288,200
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Standard Quantity or Hours 6.80 pounds 0.50 hours Standard Price or Rate $ 3.00 per pound $11.00 per hour Direct materials Direct labor $20.40 $ 5.50 During the most recent month, the following activity was recorded:
a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.)
1. Materials price variance
Materials quantity variance
2. Labor rate variance
Labor efficiency variance
Answer:
Huron Company
1. Materials price variance = $6,870 F
Materials quantity variance = $7,500 U
2. Labor rate variance = $($2,800) U
Labor efficiency variance = $1,100 F
Explanation:
a) Data and Calculations:
Standard Quantity 6.80 pounds
Standard Price $ 3.00 per pound
Direct materials $20.40
Standard Rate $11.00 per hour
Standard hours 0.50 hours
Direct labor $ 5.50
a. Purchase of 22,900 pounds of materials at $2.70
b. Production units = 3,000
Actual quantity used 7.63 pounds (22,900/3,000)
Actual Price = $2.70
Actual material cost per unit = $20.61
c. Direct labor time = 1,400 hours at a total labor cost of $18,200
Actual rate per hour = $13 per hour ($18,200/1,400)
Actual hours = 0.47 hours
Actual direct labor cost per unit = $6.07
1. Materials price variance for the month = (Standard Price - Actual Price) * Actual Quantity of materials
= ($3 - $2.70) * 22,900
= $6,870 F
Quantity variance for the month = (Standard Qty - Actual Qty) * Standard Price
= (20,400 - 22,900) * $3
= -$7,500 U
2. Labor rate variance for the month = (Standard rate - Actual rate) * Actual labor hours
= ($11.00 - $13.00) * 1,400
= -$2,800 U
Direct labor Efficiency variance for the month = (Standard hours - Actual hours) * Standard Rate
= (1,500 - 1,400) * $11
= $1,100
The direct method of reporting operating cash flows: ________
a. Separately lists cash receipts and payments.
b. Must be used by all companies.
c. Is used by most companies.
d. Is considered supplementary disclosure.
e. Is not recommended by the FASB, but is commonly used.
Answer:
e. Is not recommended by the FASB, but is commonly used.
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
2. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.
3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
Generally, the statement of cash flows provides financial information about an organization's operating profitability and how it use its operating cash flow.
Financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.
In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).
However, the direct method of reporting operating cash flows is not recommended by the FASB, but it's commonly used.
This ultimately implies that, it's a recommended accounting method, but it's not an accounting standard required by the financial accounting standards board (FASB).
Bramble Corp. is planning to sell 1200 boxes of ceramic tile, with production estimated at 1170 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $10 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Bramble has 3200 pounds of clay mix in beginning inventory and wants to have 4100 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month
Answer: $6,435
Explanation:
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
Direct labor costs:
= Budgeted number of boxes to be produced* number of direct labor hours required * employee salary per hour
= 1,170 * 0.50 * 10
= $5,850
Manufacturing overhead is 110% of this:
= 5,850 * 110/100
= $6,435
(10 points) The Wall Street journal recently reported that the Chinese central bank has decided to increase its reserve holdings of U.S. government bonds. What effect might this policy change have on the U.S. bond markets, currency valuations, and the U.S. Balance of Payments
Answer:
China is that the largest creditor to the USA with over 1 trillion dollars. China has decided to scale back holding folk's bonds to retaliate against actions of the US govt.
Such action by the Chinese government will increase the value of borrowing for the United States government and therefore the value of bonds is probably going to fall.
While China is going to be getting an exchange by selling its bond holdings. The currency of china will appreciate while the US dollar will depreciate thanks to the outflow of currency.
Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price $ 350
Unit variable cost $ 100
Total fixed costs $980,000
The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:__________
a) increased by 368 units
b) decreased by 368 units
c) increased by 132 units
d) decreased by 264 units
Answer:
a) increased by 368 units
Explanation:
The calculation of the next break even point should be
Existing break-even point for Flying Cloud Co. is
= Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ Sales Price Per Unit - Variable Cost per Unit
= $980,000 ÷ ( $350 - $100)
= 3,920 Units
Now
Revised Variable cost = $100 × 110%
= $110
And,
Revised Fixed cost = $980,000 × 105%
= $1,029,000
So,
Revised break-even point for Flying Cloud Co. is
= Fixed Cost ÷ ( Contribution Margin Per Unit
= Fixed Cost ÷ ( Sales Price Per Unit - Variable Cost per Unit
= $1,029,000 ÷ ( ( $350 -$110)
= 4,287.5
= 4,288 units
So,
Increase = 4,288 Units - 3920 Units
= 368 Units Increase
The summarized balance sheets of Blossom Company and Nash Company as of December 31, 2021 are as follows:
Blossom Company Balance Sheet December 31, 2021
Assets $1750000
Liabilities $170000
Capital stock 875000
Retained earnings 705000
Total equities $1750000
Nash Company Balance Sheet December 31, 2021
Assets $1280000
Liabilities $280000
Capital stock 890000
Retained earnings 110000
Total equities $1280000
If Blossom Company acquired a 20% interest in Nash Company on December 31, 2021 for $300000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (Nash) would have been:__________
a. $300000.
b. $200000.
c. $256000.
d. $178000.
Answer:
The amount of the debit to Equity Investments (Nash) would have been:__________
b. $200,000.
Explanation:
a) Data and Calculations:
Blossom Company Balance Sheet December 31, 2021
Assets $1750000
Liabilities $170000
Capital stock 875000
Retained earnings 705000
Total equities $1750000
Nash Company Balance Sheet December 31, 2021
Assets $1280000
Liabilities $280000
Capital stock 890000
Retained earnings 110000
Total equities $1280000
Nash's net assets = $1,000,000 ($1,280,000 - $280,000)
Equity investment = 20% of $1,000,000 = $200,000
Goodwill on acquisition = $100,000 ($300,000 - $200,000)
Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $130,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $16,000 per year to operate and maintain, but would save $46,000 per year in labor and other costs. The old machine can be sold now for scrap for $13,000. The simple rate of return on the new machine is closest to (Ignore income taxes.):
Answer:
The simple rate of return on the new machine is closest to 14.53%.
Explanation:
Assuming a straight-line depreciation method, we have:
Annual deprecation = Cost of the new machine / Useful life = $130,000 / 10 = $13,000
Net annual benefit = Annual saving - Annual operating and maintenance cost - Annual deprecation = $46,000 - $16,000 - $13,000 = $17,000
Net investment = Cost of the new machine - Scrap value of the old machine = $130,000 - $13,000 = $117,000
Simple rate of return on the new machine = Net annual benefit / Net investment = $17,000 / $117,000 = 0.1453, or 14.53%
Therefore, the simple rate of return on the new machine is closest to 14.53%.
Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $4,000 each. Variable selling expenses are $230 per ATV. The remaining selling expenses are fixed. Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,880 each.
POLARIX
Income Statement—Consumer ATV Department
For Year Ended December 31, 2017
Sales $619,200
Cost of goods sold 311,320
Gross margin 307,880
Operating expenses
Selling expenses $160,000
Administrative expenses 42,500 202,500
Net income $105,380
Required:
1. Prepare an income statement for this current year using the contribution margin format.
2. For each ATV sold during this year, what is the contribution toward covering fixed expenses and earning income?
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,827 bars) are as follows: Ingredient Quantity Price Cocoa 600 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
Answer:
Roanoke Company
The standard direct materials cost per bar of chocolate is:
= $0.33.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,827 bars
Standard Costs for a batch:
Ingredient Quantity Price
Cocoa 600 lbs. $0.40 per lb.
Sugar 180 lbs. $0.60 per lb.
Milk 150 gal. $1.70 per gal.
Ingredient Quantity Price Total Cost
Cocoa 600 lbs. $0.40 per lb. $240.00 (600 * $0.40)
Sugar 180 lbs. $0.60 per lb. 108.00 (180 * $0.60)
Milk 150 gal. $1.70 per gal. 255.00 (150 * $1.70)
Total cost of batch of chocolate = $603.00
Cost per bar = $0.33 ($603.00/1,827)
Required information Skip to question [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Answer:
The complete solution is defined in the attached file please find it.
Explanation:
A company purchased $10,300 of merchandise on June 15 with terms of 2/10. n/45, and FOB shipping point. The freight charge, $650, was added to the .amount. On June 20, it returned $1,040 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:_________
a. $9,224.
b. $10,590
c. $10.950.
d. $10.690.
e. $9,725.
b should be that correct answer
Country A has a GDP of $4,600 in Country A dollars, and Country B has a GDP of $2,400 in Country B dollars. If the exchange rate is 1.5 Country B dollars to 1 Country A dollar, what is Country B's GDP in Country A dollars
Answer: Country A $1,600
Explanation:
Country A's currency is stronger than Country B's which is why Country B needs more of its currency to buy a single unit of Currency A.
You can use direct proportion to find out Country B's GDP in Country A dollars
Country B currency to Country A
1.5 : 1
2,400 : x
1.5x = 2,400
x = 2,400 / 1.5
= Country A $1,600
We are in a world with a real interest rate of 7%. The economy of Smoothiland is hit by a temporary shock to GDP of 200 million units at time T. The population of Smoothiland have a strong preference for consumption smoothing, and Smoothiland has an open economy.
1. By how much does consumption to fall in time T+1? (in millions, round to the closes decimal).
2. How much does the country have to borrow to maintain smooth consumption? (round to the closest decimal)
Answer:
1. 14.28 million units
2. The country has to borrow 200 million in order to maintain smooth consumption
Explanation:
1. Real interest rate = 7%
Temporary shock to GDP(Y) at Time(T)
= 200 million
Fall of consumption (T) in time T+1 =
So,
Y= C+rY
200=C+(0.07*200)
= C + 14
C = 200/14
= 14.28
Therefore,
Consumption will fall by 14.28 million units
2. The country has to borrow 200 million in order to maintain smooth consumption
