yler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During the first month of operations, the company worked on three jobs and recorded the following actual direct materials cost, direct labor cost, and machine hours for each job: Job 101 Job 102 Job 103 Total Direct materials used $ 19,200 $ 14,400 $ 9,600 $ 43,200 Direct labor $ 28,800 $ 11,200 $ 9,600 $ 49,600 Machine hours 1,000 hours 4,000 hours 2,000 hours 7,000 hours Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead costs recorded during the first month of operations totaled $45,000. Required: 1. Calculate the predetermined overhead rate. 2. Compute the total manufacturing overhead applied to the Work in Process Inventory account during the first month of operations. 3. Compute the balance in the Work in Process Inventory account at the end of the first month.

Answers

Answer 1

Answer:

1. $7.00

2. $49,000

3. $33,200

Explanation:

1. The computation of predetermined overhead rate is shown below:-

Predetermined overhead rate = Estimated overhead ÷ Estimated machine hours

= $420,000 ÷ 60,000

= $7.00

2. The computation of total manufacturing overhead applied is shown below:-

Particulars                    Job 101    Job 102      Job 103     Total

Direct material             $19,200    $14,400     $9,600    $43,200

Direct labor                  $28,800    $11,200     $9,600    $49,600

Manufacturing

overhead                      $7,000      $28,000    $14,000   $49,000

Total                              $55,000    $53,600    $33,200  $141,800

3. The computation of balance in the Work in Process Inventory account at the end of the first month is shown below:-

Particulars                    Job 101    Job 102      Job 103     Total

Direct material             $19,200    $14,400     $9,600    $43,200

Direct labor                  $28,800    $11,200     $9,600    $49,600

Manufacturing

overhead                      $7,000      $28,000    $14,000   $49,000

Total                              $55,000    $53,600    $33,200  $141,800

Job 101 is completed and sold

Job 102 is completed and kept in finished goods inventory.

Job 103 is balance which indicates the work in progress.


Related Questions

Shelton Co. purchased a parcel of land six years ago for $873,500. At that time, the firm invested $145,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $54,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $925,000. What value should be included in the initial cost of the warehouse project for the use of this land?

Answers

Answer:

$925,000

Explanation:

The value of the land that would be included in the initial cost of the warehouse is it market value of $925,000 which the land currently commands.

The rationale for this are numerous:

Firstly,if the land was not previously owned by Shelton Co, would have to purchase a similar land at its market value.

Secondly, if the land was not deployed to the project, it could be sold now for cash at $925,000

A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract?

Answers

Answer:

-$1.96 is the value.

Explanation:

The contract gives obligation to sell for $40 when a forward price negotiated today would give one obligation to sell for $42.

The value of contract is present value of

40 - 42= -$2

The rate is at 8%

8%= 0.08

3 months= 3/12= 0.25 years

The present value can be calculated as

Value of present contract= -2e^(0.08 x 0.25)

Value of present contract= -$1.96

Jaune Magazine (JM) must decide whether or not to publish a tell-all story about a celebrity. If the story ends up having major impact, JM will realize substantial profits from additional magazine sales, subscriptions, and advertising revenues. However, if JM publishes the story, JM will face a lawsuit; if it loses the suit, the penalties could be substantial. The tree below summarizes JM's decision.
The EMV of publishing the story is $10,000. Based on this EMV, JM should publish the story. If the publisher chooses not to publish the story, which of the following best describes the publisher's attitude towards this decision?
A) Risk averse.
B) Risk neutral.
C) Risk seeking.
D) Risqué.

Answers

Answer:

The correct option is A, risk averse

Explanation:

Risk aversion is a situation where a person undertaking a business or an investor tries as much as possible to limit exposure to losses by taking drastic steps to ensure the losses do not materialize.

The publisher in this case is conscious of facing the lawsuit that could result from publishing story and has taken a precautionary measure by not even venturing into the publishing ,let alone a  lawsuit with substantial amount in damages rears its ugly head.

A risk seeking investor would go ahead with the publishing since success could bring a juicy income

You have learned from your training materials that the integration-responsiveness framework juxtaposes the opposing pressures for cost reductions and local responsiveness to derive four different strategies to gain and sustain competitive advantage when competing globally. Which of these four strategies has HP adopted?

Answers

Answer:

aswer is

Explanation:

because is Hp is globally science

Ocean Auto Parts Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for​ 2017:1. Sales​ Revenue, $516,0002. Accounts​ Receivable, beginning​ balance, $97,0003. Accounts​ Receivable, ending​ balance, $63,000Compute the collections from customers.A.​$453,000B.​$550,000C.​$356,000D.​$160,000

Answers

Answer:

The answer is B. $550,000

Explanation:

Collection from customers is a line item in operating activities under cash flow. It is the total amount of money business collected from customers for its sales on credit.

Beginning receivable -------$97,000

Add:

Sales revenue------------------$516,000

Less:

Ending receivable-------------$63,000

Collections from customers-- $550,000

Your company currently has $ 1 comma 000 ​par, 6 % coupon bonds with 10 years to maturity and a price of $ 1 comma 078. If you want to issue new​ 10-year coupon bonds at​ par, what coupon rate do you need to​ set? Assume that for both​ bonds, the next coupon payment is due in exactly six months.

Answers

Answer:

The next  coupon rate that is needed to​ set is 5.00%

Explanation:

Solution

Recall that:

Your company presently has =$1,000 par

Coupon bonds = 6%

Maturity = 10 years

The next step is to find the coupon rate that is needed or required to set.

Now,

The number of semi annuals to maturity, NPER =  (10 YEARS * 2)= 20

Semiannual coupon payments, PMT = ($1000 * 6%/2) = $30

The current selling price per bond  (FV) = $1078

The maturity value at the end is = $1000

The semiannual compound type, = 0 (It is 0 if compounded at the end of each semiannual and is 1 if compounded at the start of each semiannual)

Semi annual interest rate is = 2.5%

Thus,

The number of semi annuals in a year is = 2

The annual coupon rate of bonds (new) = 2/50 % * 2

= 5.00%

It is important to note that the semi annual coupon rate is computed suing the excel function rate (nper, pmt, pv,  fv, type),

Whereby

PV =1078

NPR = 20

PMT =30

FV = 1000

TYPE = 0.

Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $3,460 101 2,870 104 5,260 108 5,950 Indirect 18,440 111 3,630 115 2,380 117 16,120 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

Answers

Answer:

DR Work in Progress Account $39,650

DR Factory Overhead Account $18,440

CR Wages Payable $58,090

(To record factory Labor Costs)

Workings

Work in Progress

Standard policy is to send the direct cost of Labor to the Work in Progress Account.

The Total direct cost of labor are all of the above except the Indirect cost.

= 3,460 + 2,870 + 5,260 + 5,950 + 3,630 + 2,380 + 16,120

= $39,650

You have been hired to design a relational database for a convenience store which is located within an apartment complex. The goal of the database is to keep track of the inventory sold in hopes of using the data to better meet the customer's convenience store needs. Up until your arrival, the store kept track of each customer’s purchases using a flat database log, as shown in the following table. Using the information provided, build a relational database that will allow for querying things such as products sold, customer purchases, total apartment purchases, and total spent per apartment. Include any created tables and identify the keys and key types that are used. Identify all relationships, labeling them 1:1, 1:N, or M:N.
Name Apt # Products Price Quantity
Joseph Anthony 1125 Orange Juice 4.59 1
Joseph Anthony 1125 Bread Loaf 2.29 1
Yolanda Burns 3221 Milk 3.67 1
Yolanda Burns 3221 Candy Bar 1.19 3
Francis Jordan 1138 Gum 0.99 2
Steve Miller 2221 Gum 0.99 1
Cho Lin 2239 Bread Loaf 2.29 1

Answers

Answer:

Apartment (1)=====> (N) Purchases (M) =====> Product(1).

Explanation:

So, in this question we are given the following; Name, Apt # , Products, Price and Quantity. With this data or parameters or information we will be able to know that there should be another parameters in a table which are;

=> Apartment: with this parameter and the apt # each person or Individual can be Identifed.

=> Purchases: this table will be about the details of the person or Individuals the bought the products and what quantity was bought.

=> Product: here, this parameter can be used in saving or storing the name of each products and the prices of each one of them.

Hence;

(1). APARTMENT = Apt#, Name => where Apt# will be the primary key because it is unique.

(2). PRODUCTS= Products, Price => where product is the unique key.

(3). PURCHASES = Apt #, product quantity => where Apt # is a foreign key and an attribute of product in the ''purchases" table.

Kindly check the attachment for the diagram

Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $750,000 for the first satellite and $850,000 for the second. Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $120,000 per year for the second. The same launch vehicle can be used for either satellite and will cost $275,000 at the time of the launch 5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2,500,000 for either satellite. Calisto is also considering whether they should consider launching both satellites. Because Calisto would have to upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150,000 in addition to the first costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to a total of $400,000. An additional compartment would be added to the launch vehicle at an additional cost of $75,000. As an incentive to do both, the contracting company will pay for both launches plus a bonus of $1,000,000. Using a present worth analysis with a MARR of 10 percent/year, what should Calisto Launch Services do?

Answers

Answer:

The three different alternatives have positive NPVs. The alternative with the highest NPV is alternative 3, to develop and launch both satellites (NPV = $241,891). This alternative also has the highest IRR (12.1%). So Calisto should work on both satellites.

Explanation:

                                                         satellite 1         satellite 2

initial cost                                        $750,000       $850,000

if 2 satellites developed                          $150,000

development cost year 1                $150,000        $120,000

if 2 satellites developed                          $130,000

development cost year 2               $150,000        $120,000

if 2 satellites developed                          $130,000

development cost year 3               $150,000        $120,000

if 2 satellites developed                          $130,000

development cost year 4               $150,000        $120,000

if 2 satellites developed                          $130,000

development cost year 5               $150,000        $120,000

if 2 satellites developed                          $130,000

launch vehicle cost year 5                        $275,000

if 2 satellites developed                             $75,000

revenue from launching             $2,500,000    $2,500,000

bonus for launching both                      $1,000,000

MARR = 10%

since there is not enough room here, I used an excel spreadsheet to calculate NPVs of launching satellite 1, satellite 2 or both.

A summary of selected ledger accounts appears below for Alberto's Plumbing Services for the current calendar year-end. Alberto, Capital 12/31 8,500 1/1 6,500 12/31 15,000 Alberto, Drawing 6/30 3,500 12/31 8,500 11/30 5,000 Net income for the period is a.$15,000 b.$18,500 c.$33,500 d.$13,000

Answers

Answer:  a.$15,000

Explanation:

The Net Income for the year is usually credited to the Capital Account on the last day of the year as Retained Earnings for the year.

The only amount credited to the capital account in the above question is the $15,000 that came in on the 12th of December so it must be the Net Income for the period.

Allowing a tax credit for certain solar energy property can be justified: a.Based on the wherewithal to pay concept. b.As helping small businesses. c.As promoting administrative feasibility. d.As promoting a government policy to use alternative energy sources. e.None of these choices are correct.

Answers

Answer: As promoting a government policy to use alternative energy sources.

Explanation:

A tax credit is a form of tax incentive which can help in the reduction of the amount of money that a taxpayer is owing the government. Here, the taxpayer can just deduct the tax credit from the total amount of taxes that the individual owe thereby leading to him paying a lower amount as tax.

In this case, allowing tax credit for certain solar energy property may be a way the government wants to make people start using other forms of energy. Giving tax credit will lead to a cheaper price for the solar energy products.

What are the challenges planner and mangers do not face in decision making?

Answers

Answer:

Management has its share of perks and rewards. Managers are usually in a better position to influence and lead change. In most organizations, being a manager means a better compensation package and not having to sit in a cubicle. Most importantly, there’s nothing like the satisfaction of helping an individual or team reach their goals and perform at their best. Read more

Explanation:

Some construction company has bought a product for $200,000 with a life of three years, and a salvage value of $10,000. Tabulate depreciation and book value using MACRS, Double Declining Balance and straight-line methods. Which method gives the company the largest depreciation after two years?

Answers

Answer:

The method that gives the company the largest depreciation after two years is MACRS.

Explanation:

According to given data Under MACS depreciation would be provided for 4 years and the salvage value of the asset would be reduced to zero .

Year  depreciation rate Deprecation          Book value at the end of the year

1 33.33%                66660 (33.33 % of 200000)        133340

2 44.45%                88900   (44.45 % of 200000) 44440

3 14.81%               29620   (14.81 % of 200000)        14820

4 7.41%               14820   (7.41 % of 200000)           0

Straight line method

The amount of depreciation remains same for three years. The depreciation amount is calculated as

=Original cost- Salvage value / life

= 200000-10000 /3

= 63333.3 $

Year Depreciation Book value at the end of the year

1         63333.33          136666.7

2         63333.33          73333.34

3         63333.33          10000.01

Double declining balance method

Under this method the depreciation is charged at double the rate of straight line method .

Depreciation rate under SLM = 100% / 3 = 33.33 %

DDB method rate = 2* 33.33% = 66.66%

Year  Book value at the beginning     Depreciation Book value at the end

1 200000                            133320 (66.66% of 200000) 66680

2 66680                          44448.89 (66.66% of 66680) 22231.11

3 22231.11                       14819.26 (66.66% of 22231.11) 7411.853

The largest depreciation is given by MACRS method after two years which is 88900

Here are comparative statement data for Ivanhoe Company and Pharoah Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016.
2017 2016 2017 2016
(Ivanhoe (Ivanhoe (Pharoah (Pharoah
Company) Company) Company) Company)
Net sales $1,865,000 $595,000
Cost of goods sold 1,064,000 279,000
Operating expenses 252,000 84,000
Interest expense 8,000 1,800
Income tax expense 70,900 35,000
Current assets 583,495 $559,214 149,171 $142,246
Plant assets (net) 942,972 895,000 250,113 225,203
Current liabilities 118,722 135,709 63,273 54,203
Long-term liabilities 204,042 161,100 53,020 44,750
Common stock, $10 par 895,000 895,000 214,800 214,800
Retained earnings 308,703 262,405 68,192 53,696
Required:
Prepare a vertical analysis of the 2017 income statement data for Ivanhoe Company and Pharoah Company.

Answers

Answer:

                            Condensed Income Statement

                       For the Year Ended December 31, 2017

                                               Ivanhoe Company     Pharaoh Company

Net sales                                 $1,865,000  100%      $595,000   100%

Cost of goods sold                ($1,064,000)  57%       ($279,000)   47%

Gross profit                                $801,000   43%         $316,000   53%

Operating expenses               ($252,000)   14%         ($84,000 )   14%

EBIT                                           $549,000   29%        $232,000   39%

Interest expense                         ($8,000)  0.4%            ($1,800 )  0.3%

Income tax expense                 ($70,900)  3.8%         ($35,000)  5.9%

Net income after taxes             $470,100  25.2%        $195,200  32.8%

A vertical analysis of an income statement uses net sales as the reference for all the other accounts. The other accounts are shown as a % of total net  sales.  

Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher's disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for a year's worth of Cerdelga. This is an example of the manufacturer adhering to its

Answers

Answer:

Profit responsibility

Explanation:

The manufacturer is adhering to its profit responsibility. profit responsibility gives us the insight that a company or companies have a primary duty of profit maximization for its owners or stockholders.

Some facts to be considered are:

1. How do these companies recover the costs of doing business. That is how do they make gain from research and development if they give away their discoveries

2. How do stakeholders gain if Cerdelga is being sold at a loss.

Flounder Beverage Company reported the following items in the most recent year. Net income $49,400 Dividends paid 6,820 Increase in accounts receivable 10,010 Increase in accounts payable 7,900 Purchase of equipment (capital expenditure) 8,600 Depreciation expense 4,900 Issue of notes payable 20,940 Compute net cash provided by operating activities, the net change in cash during the year.

Answers

Answer:

Net Cash flow from Operating activities  is $52,100

Explanation:

                     Cash Flow from operating activities

          Particulars                                            Amount          Amount

Net Income                                                                              $49,400

Add: Depreciation expenses                          $4,900

Add: Increase in accounts payable                $7,900

Less: Increase in accounts receivable         -($10,100)

                                                                                                  $2,700

Net Cash flow from Operating activities                              $52,100

You currently have 80 units of a product on the shelf. The demand for the product has been simulated as follows: Demand_Data.xlsx Sales are made to the extent that you have units in stock (for example, if the demand is for 65 units, then 65 units are sold; however, if the demand is for 135 units, then only 80 units are sold). Using the demand data in the attached file, the expected units sold is [a].
Round your answer to a single decimal point. For example, if your answer is 51.456, then round it to 51.5.

Answers

Answer:

Hello the required attached file is missing and attached to the answer is the file and the Excel solution to the problem

answer : The expected units sold is ; 65.9

Explanation:

ATTACHED IS THE SOLUTION OF THE PROBLEM USING EXCEL and also attached is the missing file

Demand_Data.xlsx (Following values correspond with each of the 200 rows)

65.2109419609769

36.3814378436655

12.0877429656684

42.5590896559879

82.2785877465503

63.8527707854519

63.4004335955251

15.8457750733942

71.0140411177417

70.8838469511829

17.5017830263823

55.8463070268044

72.5535427994328

83.9481016958598

77.4359377322253

51.6086528880987

61.2436578597408

41.7028003942687

61.3092779024737

57.1605268708663

63.4424295133795

105.393077268964

42.3098881077021

72.9272996471264

73.4634922485566

92.1699337998871

73.9350879887934

62.634502632427

75.1440792958601

78.2438873505453

132.73330654949

56.5183781366795

83.8099039759254

85.089108273969

79.8164036899107

87.0501152751967

41.0291376686655

63.5085725155659

84.9410880112555

59.0508206590312

56.5433210288757

59.7236421020352

65.8728722049273

73.6344772524899

49.9832039570902

47.852667143452

92.3204551730305

74.595608515956

66.5629058351624

32.4733391101472

97.4920239462517

74.2992041926482

9.96752891689539

85.1971107698046

110.769009501673

69.4912286638282

118.182118916884

80.9065695141908

66.242581801198

74.6631839722977

94.2071109823883

89.928620531573

59.5205746724969

104.95497367112

63.1786987872329

113.474574340507

47.0437170809601

79.1452875494724

82.0594904728932

45.6039869680535

97.7821527561173

65.7133240968687

58.5785200604005

84.1517375595868

41.9052539148834

63.9809640636668

78.9487002696842

85.280966181308

61.2992052486516

49.7980308358092

67.0680619298946

49.0870788274333

60.8445261098677

68.4155920174089

91.2059148907429

54.3580098968232

44.4463366369018

66.7196345096454

59.9047907092609

41.6861111664912

40.0889020459726

58.9671926212031

56.350849212613

65.2880671116873

75.5627424444538

48.9305093145231

35.4057319276035

71.0829808161361

32.9006197210401

86.8856786331162

77.7846607382526

104.655840863707

106.356141208671

48.7940851092571

72.7866462914972

61.3815372565296

95.9817170444876

51.57595655357

87.819729691837

85.2932898345171

27.4374669464305

52.1301571500953

79.2558366304729

82.1587163448567

97.4762896879111

42.4961980973603

78.3406121120788

62.3225004749838

69.8783550836379

69.651913640264

68.1852624841849

63.8094333629124

72.8979229682591

71.9960907593486

78.7327634901158

77.8358425525948

59.3799213168677

102.537536753807

75.808078640257

47.8837263875175

65.2613052300876

66.4013113640249

61.8226876616245

79.575478543411

91.3108705793275

96.5802555077244

32.6323187840171

63.5827418084955

42.1373114880407

76.5624135459075

89.248909666203

76.6884695115732

79.5514678832842

77.5245679909131

69.5065309121856

109.253427530639

61.218396644399

84.3726992973825

79.2933305495535

77.684093361604

9.07986208796501

65.9900151225156

67.2133537085028

97.0921646006173

55.312570061069

74.2412921175128

78.6738964455435

58.1307985560852

70.8149299901561

50.1941612531664

102.560546969762

69.0012838679832

71.4907982404111

107.142126529943

88.3843440026976

68.1837390805595

60.2680883678841

86.1327989189886

80.9313987195492

48.4910414746264

43.4493030700833

72.7449459594209

70.5454921847559

55.8600403968012

92.95628291904

50.2714683028171

56.9870862312382

127.145371101797

69.4912286638282

118.879155656323

80.3445017884951

119.5754648

54.8273546376731

76.6189386416227

57.2600028538727

94.6262061409652

80.7842652141699

88.6095803655917

59.0686012804508

64.1408532322384

53.0245542398188

55.6273007026175

101.024046620587

46.6278051538393

105.879475035472

113.218460632488

77.5130628829356

93.539587346022

89.7584540728712

71.5537125364062

Since World War II, globalization has been driven by two major factors: the decline in barriers to the free flow of goods, services, and capital, and technological change. Business has fueled these trends and has been the beneficiary of 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. Match the driving force to the correct description and implication for business.
a. declining trade barriers
b. technology transportation
c. declining investment barriers
d. technology computing and communication
Match each of the options above to the items below.
1. lower tariffs and increased international trade in goods and services rapid.
2. FDI growth and new production opportunities and new markets.
3. explosive growth of high-power, low-cost computing and growth in services.
4. faster and cheaper shipping and optimal production.

Answers

Answer: a to 1

b to 4

c to 2

d to 3

Explanation:

A to 1

Due to declining Trade barriers largely driven by trade agreements, countries are able to trade on a larger scale than before because goods are able to move in and out of a country with less hindrances. Tariffs are no longer as high and this has spurred companies to trade across borders to take advantage of new markets that do not increase their costs of selling.

B to 4.

With technology being applied to transportation, shipping has been made easier and faster and has also improved access to markets. Since World War II, the world has become smaller due to vessels capable for circumnavigating the world at a fraction of the time that they used to. Now vehicles like cargo planes and bullet trains can carry goods faster and at a cheaper rate thus inspiring people to keep trading.

C to 2

With Investment Barriers being lifted, entities in one country now have easier access to Investment opportunities in another. People and companies who had resources sitting ideal have now found new markets to invest in. This has improved those markets as well as giving wealth to the investors in a sort of win win situation.

D to 3

Computing since the days of the second World War and now are so Stark in difference that people then would probably view computing now as unfathomable. With this growth in computer processing, people around the world are able to trade faster and more efficiently with goods now at the tip of their fingers. Even stocks in Tokyo can easily be traded on by people in Cairo and in Alaska you can order a good from Sri Lanka. This accessibility has greatly improved trade.

Last year, Bad Tattoo Co. had additions to retained earnings of $4,865 on sales of $95,805. The company had costs of $75,885, dividends of $3,040, and interest expense of $2,120. If the tax rate was 35 percent, what the depreciation expense

Answers

Answer:

The depreciation expense is $5638.46 and the Addition to retained earnings is 4865

Explanation:

Solution

Given that:

Sales  = $95805

Less: Costs = $75885

Less depreciation expense ($95805 - $75,885 - 14281.54) = $5638.46

EBIT (12161.54 + 2120) = 14281.54

Less: Interest expense =2120

EBT (100%)(7905/0.65) = 12161.54

Less: tax at 35%(12161.54*35%) =4256.54

The Net income(65%) = 7905

The Less:dividends = 3040

Addition to retained earnings =4865

The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.Equivalent Units of ProductionDirect MaterialsConversion Units transferred out43,000 43,000 Units of ending work in process 4,700 2,820 Equivalent units of production47,700 45,820 Costs per EUPDirect MaterialsConversion Costs of beginning work in process$ 28,450 $3,270 Costs incurred this period 667,970 271,650 Total costs$696,420 $274,920 Units in beginning work in process (all completed during July) 4,200 Units started this period 43,500 Units completed and transferred out 43,000 Units in ending work in process 4,700Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Answers

Answer:

Materials costs =$ 14.6 Per EUP          

Conversion Costs=  $6 Per EUP

Explanation:

Ashad Company

Process Cost Summary

Weighted Average Method

Equivalent Units of Production

                                           Direct Materials              Conversion

Units transferred out             43,000                          43,000

Units of ending work in process 4,700                      2,820

Equivalent units of production    47,700                       45,820

Costs per EUP

                                                      Direct Materials        Conversion

Costs of beginning work in process$ 28,450              $3,270

Costs incurred this period                    667,970            271,650

Total costs                                           $696,420             $274,920

Equivalent units of production               47,700                       45,820

Cost Per Equivalent Unit                $696,420/ 47,700        $274,920/ 45,820

                                                          $ 14.6 Per EUP            $6 Per EUP

Your boss stops by to see how the research is progressing. She's concerned about your research plan. "I don't think we are ready to run causal research on the effects of advertising. I think we should re-evaluate the descriptive research options." Which option should you choose now?Select an option from the choices below and click Submit.1- Research the attitudes that men under 35 have towards eSports.2- Research the attitudes that U.S. women and consumers over 35 have towards the eSports industry.

Answers

Answer: Research the attitudes that U.S. women and consumers over 35 have towards the eSports industry.

Explanation:

From the question, the boss is concerned about the research plan and says that he does not believe that we are ready to run causal research on the effects of advertising and further said we should re-evaluate the descriptive research options.

Based on the scenario above, I'll choose to research the attitudes that U.S. women and consumers over 35 have towards the eSports industry. By choosing this option, I'll have a large sample size to carry out the descriptive research.

It should also be noted that the descriptive method consist of qualitative natural survey and also the cross sectional research. By researching the attitude of women and consumers, this will give us the opportunity to utilize the cross sectional research. Therefore, the second option is the correct answer.

Break-Even Sales Currently, the unit selling price of a product is $280, the unit variable cost is $230, and the total fixed costs are $560,000. A proposal is being evaluated to increase the unit selling price to $310. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units

Answers

Answer:

a.

Break even in units sales = 11200 units

b.

Break even in units sales = 7000 units

Explanation:

Break even sales in units is the number of units needed to be sold in order for the company to reach a point where it covers all of its total cost with its total revenue and break evens. It is a point of no profit and no loss and the total revenue is equal to the total costs.

The formula to calculate break even in units is,

Break even in units = Fixed cost / Contribution margin per unit

Where, contribution margin per unit = Selling price per unit - Variable cost per unit

a.

Break even in units = 560000 / (280 - 230)

Break even in units = 11200 units

b.

Anticipated Break even in units = 560000 / (310 - 230)

Anticipated Break even in units = 7000 units

Uber has made several decisions creating new product lines aimed at growing revenue, such as establishing UberEats, Uber Fresh, and UberTASTE for food delivery; UberRUSH for package delivery; and UberCARGO and UberVAN for moving goods. This strategy is known as

Answers

Answer:

The strategy described above is known as Umbrella (or Family) Brand Strategy

Explanation:

Family branding is a marketing concept where a company with strong equity uses a single brand name to sell two or more products under the same category.

In the question we see two broad categories:

Foods;Cargo

And there, you have under each broad group, sub-categories using the brand Uber.

Real-life examples of successful umbrella brands are:

Apple (iPhone, iMac, iPod etc)AdidasPokémon etc.

The advantage of Umbrella Branding as a business strategy is that the cost required to launch a product under a different brand is significantly avoided if the new product is affixed with the existing brand.

If however, the company fails to get it right, by enveloping a different line of product in the existing brand, it may water down the brand and also confuse customers.

Cheers!

Freya Co. has two patents that have allegedly been infringed by competitors. After investigation, legal counsel informed Freya that it had a weak case for Patent A34 and a strong case in regard to Patent B19. Freya incurred additional legal fees to stop infringement on Patent B19. Both patents have a remaining legal life of 8 years. How should Freya account for these legal costs incurred relating to the two patents?

Answers

Answer:

Freya needs to expense costs for Patent A34 and capitalize costs for Patent B19.

Explanation:

Based on the scenario being described it can be said that Freya needs to expense costs for Patent A34 and capitalize costs for Patent B19. That is because a successful defense of a patent needs to be capitalized and amortized since you can now monetize and recover the costs incurred as well as make a profit off of the patent. On the other hand, unsuccessful defense of a patent needs to be expensed as incurred since that patent cannot be used to make money and recover costs.

In each of the following​ cases, what is the effect on the​ short-run aggregate supply ​(SRAS​) ​curve? An increase in firm costs A. does not shift the SRAS curve. B. shifts the SRAS curve upward. C. shifts the SRAS curve downward. An increase in the money supply A. does not shift the SRAS curve. B. shifts the SRAS curve downward. C. shifts the SRAS curve upward. An increase in consumption A. shifts the SRAS curve upward. B. does not shift the SRAS curve. C. shifts the SRAS curve downward.

Answers

Answer: 1. B. shifts the SRAS curve upward.

2. A. does not shift the SRAS curve.

3. B. does not shift the SRAS curve.

Explanation:

1. When Firm costs rise, the input cost for Producers rises and they respond by reducing production so as to reduce the cost of production. This reduction causes a reduction in Supply that forces the short-run aggregate supply ​(SRAS​) ​curve to shift left (upward).

2. This change in the Money Supply means that there will be more money for households to spend. This increases demand but does not have any direct influence on the short-run aggregate supply ​(SRAS​) ​curve.

3. An Increase in consumption means that there is greater demand for goods and services in an Economy. Indirectly this will cause producers to ramp up production to meet these needs but directly, there is no influence on the short-run aggregate supply ​(SRAS​) ​curve.

The following information is related to Kingbird Company for 2017.

Retained earnings balance, January 1, 2017 $981,000
Sales Revenue 26,100,000
Cost of goods sold 16,100,000
Interest revenue 71,000
Selling and administrative expenses 4,710,000
Write-off of goodwill 821,000
Income taxes for 2017 1,254,000
Gain on the sale of investments 111,000
Loss due to flood damage 391,000
Loss on the disposition of the wholesale division (net of tax) 441,000
Loss on operations of the wholesale division (net of tax) 91,000
Dividends declared on common stock 251,000
Dividends declared on preferred stock 81,000

Kingbird Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Kingbird sold the wholesale operations to Rogers Company. During 2017, there were 490,000 shares of common stock outstanding all year.

Required:
Prepare the mutiple step income statement.

Answers

Answer:

Net income is $2,474,000

Retained earning for the year 2017 is $2,142,000

Retained earnings balance at December 31, 2017 is $3,123,000

Explanation:

A multi-step income statement is an income statement that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income of a company for a particular period.

This can be prepared as follows:

Kingbird Company

Mutiple step income statement

for the year ended December 31, 2017

Details                                                                  $        

Sales Revenue                                           26,100,000

Cost of goods sold                                    (16,100,000)

Gross profit                                                10,000,000

Operating expenses:

Selling and administrative expenses        (4,710,000)

Operating income                                       5,290,000  

Other income (loss):

Gain on the sale of investments                     111,000

Write-off of goodwill                                      (821,000)

Loss due to flood damage                            (391,000)

Interest income:

Interest revenue                                               71,000  

Income before tax                                       4,260,000

Income taxes for 2017                                (1,254,000)

Income after tax                                          3,006,000

Extraordinary items:

Loss on wholesale div. disp. (net of tax)      (441,000)

Loss on wholesale div. op. (net of tax)          (91,000)

Net income                                                   2,474,000

Preferred stock dividend                                (81,000)

Common stock dividend                               (251,000)

Retained earning for the year 2017             2,142,000

Retained earnings balance, Jan. 1, 2017        981,000

Retained earnings bal., Dec. 31, 2017       3,123,000

Blankenship Company pays its employees every Friday for work rendered that week. The payroll is typically $10,000 per week. What journal entry would be recorded (on Wednesday) if the end of the accounting period occurred on a Wednesday

Answers

Answer:

Dr salaries expense   $6,000

Cr salaries payable                      $6,0000

Explanation:

Since the $10,000 payroll charge on Friday is for the whole week, an appropriate adjustment for month close on a Wednesday would to recognize the amount payable to employees for that week from Monday till Wednesday as follows:

Amount of salaries owed on Wednesday=$10,000*3/5=$6,000

The appropriate entries for the above would a debit to salaries expense for $6,000 while a credit goes to salaries payable

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 $1,947,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of Regular and Ultra?

Answers

Answer:

the firm must sell 37,443 units of Regular and 74,886 units of Ultra

Explanation:

Regular - unit sales price= $20; Variables costs per unit = $8

Ultra - unit sales price= $24; Variables costs per unit = $4

combined contribution margin:

1 unit of regular = $20 - $8 = $122 units of ultra = $48 - $8 = $40total = $52

break even point = total fixed costs / combined contribution margin = $1,947,000 / $52 = 37,442.31 ≈ 37,443 units

the firm must sell 37,443 units of Regular and 74,886 units of Ultra

Trendz Inc. is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the U.S., the company wants to foray into foreign markets. The management at Trends knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using?
A) market-penetration strategy
B) outsourcing strategy
C) geographic-expansion strategy
D) product differentiation strategy
E) ethnocentric strategy

Answers

Answer:

The correct answer is the option D: product differentiation strategy.

Explanation:

To begin with, the fact that the company knows and understand that in other countries the people may have other needs and preferences is helpful because in that way they are able to investigate and start the creation and production of a good that adjusts to the preferences of that other country and by doing that the company leaves behind the concept of standarization and focus on the differentiation of its product by making it unique in every country they are in.

A business will construct its financial statements in a particular order because they are interrelated. This means that items formulated in an earlier statement feed into the subsequent statements, and changes to items on one financial statement can have compounding effects on the overall financial position of a company. Which of the following is one reason the statement of owner's equity is prepared after the income statement?

a. Retained earnings are computed on the income statement.
b. Net income is the beginning retained earnings amount.
c. Retained earnings is really an asset.
d. Net income is part of the computation for ending retained earnings.

Answers

Answer: d. Net income is part of the computation for ending retained earnings.

Explanation:

In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.

Retained Earnings are calculated by the formula,

Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends

Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.

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