Answer:
Departmental overhead rates
g A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that are sold
Answer:
$188
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the cost of sales will be valued using the prices of earlier or older units.
Cost of Sales = 16 units x $24 + 6 units x $26
= $188
Thus, the cost of the 22 units that are sold is $188.
A code of ethics for IT auditors and organizations primarily helps to set clear ___________. IT guidelines financial guidelines career goals expectations
Answer: IT guidelines
Explanation:
In the IT audit process, a computer system is checked to see if it not only performs the duties for which it was set up, but also if it protects the assets of the company and maintains data integrity.
A code of ethics for such a process would therefore be one that helps set clear IT guidelines to ensure that the computer system does what it is supposed to do and protects the company's assets as well.
During April, Cavy Company incurred factory overhead as follows:
Indirect materials $11,600
Factory supervision labor 3,700
Utilities 500
Depreciation (factory) 600
Small tools 230
Equipment rental 720
Journalize the entry to record the factory overhead incurred during April.
Answer and Explanation:
The journal entry is given below:
Factory Overhead $17,350
Materials $11,600
Wages Payable $3,700
Utilities payable $500
Accumulated Depreciation $600
Small tools $230
Equipment Rental payable $720
(To record the factory overhead incurred during April)
Here the factory overhead is debited as it increased the expense and credited the payable accounts as it increased the liabilities, credited the material, accumulated depreciation and small tools
Sales-Related Transactions
Merchandise is sold on account to a customer for $7,400, terms FOB shipping point, 1/10, n/30. The seller
paid the freight of $390. Determine the following:
a.
Amount of the sale
b.
Amount debited to Accounts Receivable
c.
Amount received within the discount period
7,326 X
Answer:
a. Particulars Amount
Sales revenue - Gross $7,400
Less: Sales discount $74 ($7,400*1%)
Net sales revenue $7,474
b. Particulars Amount
Sales revenue-Net $7,474
Add: Freight paid on behalf of purchaser $390
Account receivable debited $7,864
c. Particulars Amount
Total amount due $7,938
Less: Sales discount ($7,400*1%) $74
Net amount to be received $7,864
Calculate gross profit for the following situation: National Storage Company had sales of $1,000,000, sales discounts of $2,500, sales returns and allowances of $15,000, and a cost of goods sold of $525,000.
Answer:
$475,500
Explanation:
Sales is $1,000The discountscount is $2500
Sales return and allowances are $15,000
The cost of goods sold is $525,000
Therefore the gross profit can be calculated as follows
= 1,000,000-2,500-15,000-525,000
= 457,500
Hence the gross profit is $475,500
Large manufacturing businesses do not usually sell correctly to consumers
True
False
Answer:
"directly" no, they usually have middlemen that distribute the product to consumers.
Explanation:
Cereal brands at supermarkets.
A bond has a coupon rate of 8% and matures in 10 years. What are its expected cash flows if this bonds have a principal amount of $1000 and pay interest semi-annually
Answer:
$1080
Explanation:
Calculation to determine the expected cash flows
Since the bonds have a principal amount of the amount of $1000 first step is to calculate the Cash flow CO1
CO1=$1000(.08)/2
CO1=$80/2
CO1= $40
Second step is to calculate the Frequency of PMT
Frequency of PMT= 10 years x 2 (semi-anually)
Frequency of PMT= 20
Now let determine the Cash Flow CO10
Cash Flow CO10=1000+80
Cash Flow CO10=$1080
Therefore the expected cash flows is $1080
A building is acquired on January 1, at a cost of $830,000 with an estimated useful life of eight years and salvage value of $75,000. Compute depreciation expense for the first three years using the double-declining-balance method. (Round your answers to the nearest dollar.)
Answer:
$207,500
$155,625
$116,719
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/8 = 1/4
1 = $830,000 / 4 = 207,500
book value $830,000 - 207,500 = 622,500
2 = 622,500 / 4 = 155,625
book value = 622,500 - 155,625 = 466875
3 466875 / 4 = 116,718.75 = 116,719
Which of the following statements accurately describe the effect of the increase in government borrowing?
a. National saving decreases by less than $20 billion.
b. Investment increases by less than $20 billion.
c. Public saving decreases by exactly $20 billion.
d. Private saving increases by less than $20 billion.
Answer:
d. Private saving increases by less than $20 billion.
Explanation:
Because the interest rate has increased, investment and national saving decline and private saving increases. The increase in government borrowing reduces public saving. From the figure you can see that total loanable funds (and thus both investment and national saving) decline by less than $20 billion, while public saving declines by $20 billion and private saving rises by less than $20 billion.
quizlet
Miller Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $12,800,000 on March 1, $10,560,000 on June 1, and $16,000,000 on December 31. Miller Company borrowed $6,400,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $12,800,000 note payable and an 11%, 4-year, $24,000,000 note payable. What is the actual interest for Miller Company
Answer:
Miller Company
The actual interest for Miller Company is:
= $4,688,000.
Explanation:
a) Data and Calculations:
Expenditures:
March 1 $12,800,000
June 1 $10,560,000
Dec. 31 $16,000,000
Notes Payable: Amount Actual Interest
January 1: 5-year, 12% Construction Loan = $6,400,000 $768,000
Year's: 3-year, 10% Note Payable = 12,800,000 1,280,000
Year's: 4-year, 11% Note Payable = 24,000,000 2,640,000
Total $43,200,000 $4,688,000
principal, $3000 × annual interest rate, 5/2% × years,7/2
Answer:
$262.5
Explanation:
p=$3000
R=5/2%
T=7/2 years
hence ,
interest= p×t×r/100
= (3000×5/2×7/2)/100
= (30×35/4)
= (7.5 × 35)
=$262.5
The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50,000 Income tax expense 80,000 Net income 240,000 Compute the times interest earned ratio, rounded to the nearest decimal.
Answer:
the times interest earned ratio is 7.4 times
Explanation:
The computation of the times interest earned ratio is given below/;
Times interest earned ratio is
= EBIT ÷ interest expense
where
EBIT = Net Income + Interest Expense + Income tax Expense
= 240,000 + 50,000 + 80,000
= 370,000
Now the times interest earned ratio is
= $370,000 ÷ $50,000
= 7.4 times
Hence, the times interest earned ratio is 7.4 times
Where do you see Dow Jones in the coming two years ?
MC Qu. 98 Garcia Corporation's April sales forecast... Garcia Corporation's April sales forecast projects that 6,100 units will sell at a price of $10.60 per unit. The desired ending inventory is 10% higher than the beginning inventory, which was 1,100 units. Budgeted purchases of units in April would be:
Answer:
Total budgeted purchases = $65,826
Explanation:
Budgeted purchases
Sales forecast = 6,100 units
Ending inventory 1,100 * 110% = 1,210 units
Required units = 7,310
- Beginning inventory = 1,100 units
Units to be purchased = 6,210
Cost per unit = $10.60
Total budgeted purchases = $65,826
An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate the December 31 adjusting entry by choosing the correct statement below.
a. Debit Service revenue for $400.
b. Debit Unearned revenues for $400.
c. Debit Unearned revenues for $600.
d. Credit Unearned revenues for $400.
Answer:
b. Debit Unearned revenues for $400.
Explanation:
When money is received in advance for a service that is yet to be rendered, the money is accounted for as a liability called deferred or unearned income.
The entries are
Dr Cash
Cr Deferred revenue
when the service is rendered, revenue is said to be earned with the following entries passed
Dr Deferred revenue
Cr Revenue
Hence when $1,000 for services was received on December 1 and was recorded as a liability
Dr Cash $1,000
Cr Deferred revenue $1,000
when $400 had been earned
Dr Deferred revenue $400
Cr Revenue $400
Option b is right
b. Debit Unearned revenues for $400.
Suppose that in the rice market demand shifts due to a new rice diet that is being marketed in the U.S. as a cure for cancer. Simultaneously the supply curve shifts due to a flood that affects the rice crop in California. What is the most likely outcome in this situation
Answer:
The equilibrium price will increase
Explanation:
Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.
At this point there is no excess demand or supply, they are both equal.
I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.
While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.
This results in increased prices for the now scarce rice in the economy
It is illustrated in the attached diagram where price increases from P1 to P2.
The new equilibrium quantity is Q1
Selma has developed and patented a new process for recycling discarded tires. A multinational corporation has expressed an interest in buying her company in order to gain access to the technology and keep it exclusively for itself. Should Selma sell her company, the buyer will have acquired technology via
Answer:
acquisition of the technology owner
Explanation:
In the given scenario a multinational corporation has expressed an interest in buying her company in order to gain access to her technology (a new process for recycling discarded tire).
The corporation is trying to obtain this technology by acquisition of the technology owner.
When they purchase Selma's company they will automatically own the technology.
Another method that can be used to get the technology would have been through liscensing. Where they will get permission to use the technology with the permission of the owner.
A large bakery buys flour in 25-pound bags. The bakery uses an average of 4200 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10.70 per order. Annual carrying costs are $76 per bag. Determine the EOQ. (Keep two decimal places in your answer)
Answer:
34
Explanation:
Annual demand D = 4,200 bags
Ordering cost S = $10.70
Holding cost H = $76
Economic order quantity = [tex]\sqrt{2*D*S / H[/tex]
Economic order quantity = [tex]\sqrt{2*4200*$10.70 / $76}[/tex]
Economic order quantity = [tex]\sqrt{89880/76}[/tex]
Economic order quantity = [tex]\sqrt{1182.63}[/tex]
Economic order quantity = 34.389388
Economic order quantity = 34
George H. Ruth takes a leave of absence from his job to work full time for a charity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. What recording does the charity make
Answer: a contributed support of $44000 and a expense of $44000.
Explanation:
From the information given in the question, we are informed that Ruth fills the position of finance director, a position that normally pays $88,000 per year.
Therefore, the amount earned for six months will be:
= $88000 × ½
= $44000
Therefore, the recording of the transaction will be a contributed support of $44000 and a expense of $44000.
The Weber Company purchased a mining site for $527,108 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 82,993 tons will be recovered. During the first year the company extracted 5,802 tons of ore. The depletion expense is
Answer:
$36,849.86
Explanation:
Depletion cost is used to allocate the costs of extracting natural resources.
Depletion expense = (depreciable cost / total tons that can be recovered ) x tons recovered in a given year
(527,108 / 82,993) x 5802 = $36,849.86
Consider the baggage check-in process of a small airline. Check-in data indicates that from 9am to 10am, 190 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers waiting for check-in was 56.
Required:
How long did the average passenger have to wait in line?
Answer:
17.68 minutes
Explanation:i
In order to calculate the average time passenger had to wait in line, we would first divide the average number of passengers check-in in with the passengers checked in from 9 am to 10 am (which was the highest number of check-ins of the day). Then we would multiply that number by 60 minutes. As shown below:
First,
= 56 average number of passengers checked-in / 190 passengers checked-in from 9 to 10 am
= 0.2947
Then
= 0.2947 x 60 minutes
= 17.68 minutes
Hence, 17.68 minutes did the average passenger wait in line.
Freddie's Food Service uses QuickBooks Desktop. They do not track or sell inventory. They have regular customers that they want to invoice automatically on a weekly basis. They would like to review a Sales by Customer by Month report regularly. The company currently pays their vendors in QuickBooks Desktop using the online bill pay service, QuickBooks Bill Pay. After converting to QuickBooks Online, which 3 setup and customization steps are appropriate for this client? Customize reports Turn off multicurrency Rebuild data Review recurring transactions Set up initial quantity on hand and cost for each product Set up and implement an online bill pay service
Answer:
Customize reports
Review recurring transactions
Set up and implement an online bill pay service
Explanation:
Considering the situation described above, after converting to QuickBooks Online, the 3 setup and customization steps that are appropriate for this client are the following:
1. Customize reports: this includes forms and reports and, if possible to memorize reports.
2. Review recurring transactions: this is to restore desktop QuickBooks memorized transactions.
3. Set up and implement an online bill pay service: this is done either through Intuit Online Payroll or QBOP.
A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month versus a 15-year mortgage with an interest rate of .7% a month. Both mortgages are for $100,000 and have monthly payments. What is the difference in total dollars that will be paid to the lender under each loan?
Answer:
$113,465
Explanation:
Calculation to determine difference in total dollars that will be paid to the lender under each loan
First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month
$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})
PMT = $804.62
Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month
$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})
PMT = $ 978.87
Now let determine the Total difference
Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)
Total difference= $113,465
Therefore difference in total dollars that will be paid to the lender under each loan is $113,465
On January 1, 2020, Sandhill Co., a calendar-year company, issued $2320000 of notes payable, of which $580000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:
Answer:
Current liabilities $2320000; Long-term Debt, $1740000
Explanation:
Calculation to determine what The proper balance sheet presentation on December 31, 2020, is:
Current Liabilities will be $2320000 of notes payable
Hence,
Current liabilities $2320000
Long -term Debt =$2320000-$580000
Long -term Debt=$1740000
Therefore The proper balance sheet presentation on December 31, 2020, is:
Current liabilities $2320000; Long-term Debt, $1740000
The cost of materials transferred into the Rolling Department of Keystone Steel Company is $553,600 from the Casting Department. The conversion cost for the period in the Rolling Department is $107,500 ($64,300 factory overhead applied and $43,200 direct labor). The total cost transferred to Finished Goods for the period was $622,800. The Rolling Department had a beginning inventory of $27,900.
Required:
a. Journalize the cost of transferred-in materials.
b. Journalize the conversion costs.
c. Journalize the costs transferred out to Finished Goods.
Answer:
Keystone Steel Company
Journal Entries:
a. Debit Work in Process $553,600
Credit Transferred-in materials $553,600
To record the cost of transferred-in materials.
b. Debit Work in Process $107,500
Credit Factory overhead $64,300
Credit Payroll $43,200
To record the conversion costs.
c. Debit Finished Goods Inventory $622,800
Credit Work in Process $622,800
To record the costs transferred out to Finished Goods.
Explanation:
a) Data and Calculations:
Cost materials transferred into the Rolling Department = $553,600
Conversion cost for the period = $107,500
Factory overhead applied = $64,300
Direct labor = $43,200
Cost transferred to Finished Goods for the period = $622,800
Work in process, beginning inventory = $27,900
a. Work in Process $553,600 Transferred-in materials $553,600
b. Work in Process $107,500 Factory overhead $64,300 Payroll $43,200
c. Finished Goods Inventory $622,800 Work in Process $622,800
Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, producer surplus will be
Answer:
$12
Explanation:
Producer's surplus=1/2*Q*P( Just like the formula for the area of a triangle which is 1/2*base*height)
P is the price of the item which is $4
Q is the quantity bought and sold, which is 6 units in this case, hence, the producer surplus is shown thus
producer's surplus=1/2*$4*6
producer's surplus=$12
Adidas is using 3D printed shoes which will be custom made at first and then mass manufactured, as unit costs fall. Three-dimensional printing is expected to dramatically reduce businesses' carbon footprints because the technology _______.
Answer:
c. nearly eliminates transportation of finished goods to distribution centers and retailers
Explanation:
3D printing is a form of additive manufacturing that should help in carbon footprint that are related with the transport sector as the transportation and the storage should be decreased via the technology,
The shoes should be generated on demand basis that depend upon the 3d printing technology so it removed the finished goods transportation to the distribution centers & the retailers
Therefore the correct option is c.
The most common measure of inflation is a static called the _____
1. Nominal measurement
2. Consumer price index
3. Anual rate
4. US Bureau of Labor Statistic
Explanation:
The most common measure of inflation is a statistic called the Consumer Price Index (CPI).
A downside to absorption costing is: ____________
a. not including fixed manufacturing overhead in the cost of the product
b. that it is not really useful for managerial decisions
c. that it is not allowable under GAAP
d. that it is not well designed for cost-volume-profit analysis
Answer: that it is not well designed for cost-volume-profit analysis
Explanation:
Absorption costing refers to the managerial accounting method that is used for capturing all the costs that are associated with the manufacturing of a product. In this case, the direct costs and the indirect costs are all accounted for through the use of this method.
Some of the downside to absorption costing include the fact that it isn't
helpful in a scenario whereby improvement in the financial and operational efficiency is to be analysed. Also, the true reflection of the profit of a business may not be given and it is not well designed for cost-volume-profit analysis.
Therefore, the correct option is D.
Articles of the code of ethics are broad statements of ethical principles and the standards of practice support, interpret and amplify the respective articles
Answer: True
Explanation:
The Code of Ethics is the detailed document where the professional responsibilities of every professional is written. It should be noted that the Code of Ethics is made up of seventeen Articles and their related Standards of Practice.
The Articles of the code of ethics are broad statements of ethical principles while the standards of practice support, interpret and amplify the respective articles. Therefore, the Statement is true.
The statement given in the query holds true and the code of ethics are a set code of instructions that are to be followed by the business professionals in the manner as prescribed.
The code of ethics are a set manner of instructions that are like a law book to be followed by the different kinds of businessmen and professionals of their field.
Code of ethics are given by the respective authoritative institutes of which such businessmen or professionals are the members. it implies the way in which the practice can be done.Code of ethics contain respective articles for communication, outfit and attire, verbal and written communication and all such other fields which contribute to the maintained decency in the professional conduct.They are generally different for professionals of different streams. Like they are different for superiors and subordinates of the same organization as well given their subjective roles.Hence, the statement given about the code of ethics above holds true that they must be followed and acted accordingly and implied at each stage of practice.
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