Answer:
B
Explanation:
Green Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job Number 1478), as summarized below Job Number:1478 Date Started: 4/07/20x8 Date Completed: 4/22/20x8 Description: Cherry kitchen cabinets Applied Manufacturing Overhead Hours Direct Materials Direct Labor Req No Ticket 128 Amount Hours Amount Rate Amount $375 235 385 18 414 130 588 391 25 395 140 133 9 243 401 215 52 Total 965 Total $1,244 Cost Summary Direct Material Cost 965 Direct Labor Cost 1,244 Applied Manufacturing Overhead Total Cost Green Cabinets applies overhead to jobs at a rate of $12 per direct labor hour.
Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.
Answer:
Explanation:
e concepts or strategies presented in this class
A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:
Answer:
$2,400
Explanation:
For par stated shares, any amount paid in excess of the par value is called paid-in capital in excess of par and is included in shareholders equity reserves.
So, from the total price remove the par value price of 130 shares to determine the paid-in capital in excess of par.
Paid-in capital in excess of par = Total Paid - Price at Par
= $15,400 - (130 shares × $100)
= $2,400
A construction worker was working at the construction site of a new building. An open elevator, which had been installed in the building by the elevator manufacturer, was used to haul workers and building materials between floors. While the worker was riding the elevator, it stalled between floors due to a manufacturing defect in the elevator. The worker called for assistance and was in no danger, but after waiting 15 minutes for help, he became anxious and jumped 12 feet to get out. He severely injured his back when he landed.
In an action by the worker against the elevator manufacturer to recover for his back injury, is the worker likely to obtain a judgment for 100% of his damages?
Answer:
No, because the worker was not in danger while on the stalled elevator.
Explanation:
Product liability is defined as the liability that the producer of a good bears for putting a defective or dangerous product in the hands of the consumer.
For any injury done to the consumer, the producer is liable.
However in this scenario when the elevator stalled he was in no danger, but after waiting 15 minutes for help, he became anxious and jumped 12 feet to get out. He severely injured his back when he landed.
The injury was not as a result of product defect. So the worker is not likely to obtain a judgment for 100% of his damages.
Slaq Computer Company manufactures notebook computers. The economic lifetime of a particular model is only four to six months, which means that Slaq has very little time to make adjustments in production capacity and supplier contracts over the production run. For a soon-to-be-introduced notebook, Slaq must negotiate a contract with a supplier of motherboards. Because supplier capacity is tight, this contract will specify the number of motherboards in advance of the start of the production run. At the time of contract negotiation, Slaq has forecasted that demand for the new notebook is normally distributed with a mean (�) of 10,000 units and a standard deviation (�) of 2,500 units. The net profit from a notebook sale is $500 (note that this includes the cost of the motherboard, as well as all other material; production, and shipping costs). (Hint: �! = $500) Motherboards cost $200 and have no salvage value (i.e., if they are not used for this particular model of notebook, they will have to be written off). (Hint: �" = $200) Use the news vendor model to compute a purchase quantity of motherboards that balances the cost of lost sales and the cost of excess material.
Answer:
11414.87205 units.
Explanation:
We have Underage cost cs to be $500
We have Overage cost Co to be $200
To get Critical fractile, we do this computation:
Cs/(Cs+Co)
500/(500+200)
500/700
0.714285714
Now the z score for this value,
normsinv(0.714285714)
= 0.565948821
To get what the question requires: mean+z-score*standard deviation
= 10000+(0.565948821*2500)
= 11414.87205 units
please note: I solved this without rounding the values.
We will have 10000+(0.57*2500)=11425 units if rounded
U.S. employees work harder now than ever before, and almost 75 percent report regularly experiencing job-related stress symptoms. Stress costs organizations an estimated $30 billion a year in lost productivity, and hundreds of billions a year if you include health care costs and absenteeism. This activity is important because managers can help to decrease unnecessary workplace stressors, and can help employees to experience fewer stress symptoms, if they are attuned to the sources from which workplace stress can manifest. The goal of this exercise is to challenge your knowledge of the six sources of work-related stress.
For each person, select the source of job-related stress that his or her example best depicts:
a. Demands created by individual differences
b. Individual task demands
c. Individual role demands
d. Worklife balance
e. group demands
f. Organizational demands
Answer:
1. Cedrick tends to worry about things in his life, regardless of what’s going on in his job or whether he is facing anything objectively stressful.
d. Worklife balance
2. Chien-Shiung has to miss his daughter’s softball game because he is committed to a work meeting.
d. Worklife balance
3. Lourdes works as a barista at a very busy campus Starbucks location.
c. Individual role demands
4. Danilo feels anxiety every morning on his commute to work thinking about the fact that he will be spending the next 8 hours with his coworkers who are neither kind nor helpful to one another.
a. Demands created by individual differences
5. Ang manages the front desk at a New York City hotel and has to pretend that he is happy and cheerful all day long, even when customers are rude to him or his employees.
c. Individual role demands
6. Norman works a full-time 8 to 5 job but also does consulting work on the side. He is stressed trying to decide whether he should take two days off from his full-time job, thus putting himself behind on tasks, in order to take advantage of a lucrative consulting opportunity.
b. Individual task demands
7. Teri’s direct supervisor often ignores subordinates’ concerns, manipulates others to get ahead, and engages in unethical behavior.
a. Demands created by individual differences
8. Violeta’s office feels overly stimulating to her. There are too many people crammed into the space, the overhead fluorescent lighting causes her daily headaches, and there are no walls to provide any quiet or privacy for employees.
e. group demands
9. Ahmed’s company expects its employees to be available 24 hours a day. Last week he spent the weekend hiking with friends but was on his phone responding to emails half the time. He knew that if he ignored the emails his boss would reprimand him on Monday.
f. Organizational demands
10. Farrah is always on the go. She keeps a to-do list for everything, speed walks between meetings, and often feels impatient.
b. Individual task demands
11. Devisha’s manager tends to assign projects without giving much explanation for how employees’ performance will be evaluated. Devisha is experiencing work stress because she has no idea whether she is performing well or not and won’t be sure until her annual evaluation.
b. Individual task demands
12. Philip and his spouse just adopted a baby. Philip is taking a month of paternity leave, and because of this he knows he will likely miss out on being assigned to a project that he was looking forward to working on.
d. Worklife balance
Explanation:
a. Demands created by individual differences: These differences arise by virtue of the fact that humans have different personalities and behaviors that might make us clash with them or misunderstand them.
b. Individual task demands: These problems arise when employees are unsure of the changes that might occur in the jobs given them to accomplish.
c. Individual role demands: These stress issues occur by virtue of the position the employee holds.
d. Worklife balance: This occurs when individuals try to balance life both at home and at work.
e. Group demands: Are stress-related issues that arise due to an employee having to work with others.
f. Organizational demands: Are the stress that arises because of the demands imposed by the company an employee works with.
And the circular flow model which part of the economy provides products to households
Answer: product markets
Explanation:
Answer:
Products Markets
In a company's SWOT analysis, which of the following is an example of a strength?
A.
A law is passed that decreases demand for the company's product.
B.
A demographic trend increases demand for the company's product.
C.
The company's employees are efficient and productive.
D.
The company doesn't have many competitors.
Answer:
C. The companies employees are efficient and productive.
Explanation:
According to SWOT analysis "C" is a strength.
Explanation:
The following information to perform the calculations below (using the indirect method).
Net income $401,000 Beginning accounts payable $119,000
Depreciation expense 97,000 Ending accounts payable 146,000
Beginning accounts receivable 420,000 Purchase of long-term assets 612,000
Ending accounts receivable 439,000 Issuance of long-term debt 220,000
Beginning inventory 516,000 Issuance of stock for cash 180,000
Ending inventory 550,000 Issuance of stock for long-term assets 110,000
Beginning prepaid insurance 42,000 Purchase of treasury stock 64,000
Ending prepaid insurance 48,000 Sale of long-term investment at cost 56,000
Calculate the amount of cash used by investing activities. Only enter the number. No brackets or negative signs required
Answer: -$556,000
Explanation:
Based on the information given in the question, the the amount of cash used by investing activities would be calculated as:
Purchase of long-term assets -612,000
Add: Sale of long-term investment at cost 56,000
The amount of cash used by investing activities would now be:
= -$612,000 + $56,000
= -$556,000
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Item Mortar Corporation Granite Company
Debit Credit Debit Credit
Cash $38,000 $25,000
Accounts Receivable 50,000 55,000
Inventory 240,000 100,000
Land 80,000 20,000
Buildings and Equipment 500,000 150,000
Investment in Granite Company Stock 202,000
Cost of Goods Sold 500,000 250,000
Depreciation Expense 25,000 15,000
Other Expenses 75,000 75,000
Dividends Declared 50,000 20,000
Accumulated Depreciation $155,000 $75,000
Accounts Payable 70,000 35,000
Mortgages Payable 200,000 50,000
Common Stock 300,000 50,000
Retained Earnings 290,000 100,00
Sales 700,000 400,00
Income from Subsidiary 45,000
$1,760,000 $1,760,000 $710,000 $710,000
Additional Information:
a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250.
b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date.
c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination.
d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment.
Required:
Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.
Answer:
gouuiydsiuysduitfsdjtydsf iusdtyfdm ssd gthds dhsgsd jsdfgs sdjtsd ngds hgtsd
Explanation:
sdhfd dyhdf jkdfgd fhkdfksdgusbmnj64 uey734n vui8 34bnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnbnb ky khr uy
The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable equity securities 80,000
Total assets $1,990,000
Liabilities and Shareholders' Equity
Accounts payable $225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $1,990,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $60,000 but, due to a significant increase in market value, is listed at $140,000. The increase in the land account was credited to retained earnings.
2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $30,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long-term. However, a $200,000 note requires an installment payment of $50,000 due in the coming year.
4. Inventories are recorded at current resale value. The original cost of the inventories is $170,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016.
Answer:
HUBBARD CORPORATION
Balance Sheet as at December 31, 2016
Assets Amount$
Current assets
Cash 70000
Marketable securities 30000
Accounts receivable (net) 140000
Inventories 170000
Total current assets 410000
Investments:
Marketable securities 50000
Land held for sale 60000
Total investments 110000
Property, plant, and equipment:
Land 140000
Buildings 760000
Machinery 290000
1190000
Less: Accumulated -265000
depreciation
Net property, plant, and equipment 925000
Intangible assets:
Patent 110000
Total assets 1555000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable 225000
Current maturities of long-term debt 50000
Total current liabilities 275000
Long-term liabilities
Notes payable 470000
Shareholders’ equity:
Common stock, no par value 440000
110,000 shares authorized; 110,000
shares issued and outstanding
Retained earnings 370000
Total shareholders’ equity 810000
Total liabilities and shareholders’ equity 1555000
On December 31, 2019, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
Contract price $520 million
Estimated construction costs $300 million
Estimated total profit $220 million
During the three-year construction period, Tri-State incurred costs as follows:
2020 $60 million
2021 $150 million
2022 $90 million
Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the profits recognized in 2020, 2021, and 2022?
a. $52 million, $312 million, $156 million
b. $12 million, $72 million, $36 million
c. $140 million, $140 million, $140 million
d. $30 million, $180 million, $90 million
e. None of the above
Answer:
2020 - $44 million
2021 - $110 million
2022 - $66 million
Explanation:
Using the percentage of completion method, the profit for the year will be the percentage of the total estimated costs incurred in that year multiplied by the estimated total profit of the contract.
2020
= (60/300) * 220
= $44 million
2021
= (150/300) * 220
= $110 million
2022
= (90/300) * 220
= $66 million
The options are not for this question.
A factory costs $290,000. You forecast that it will produce cash inflows of $85,000 in year 1, $145,000 in year 2, and $230,000 in year 3. The discount rate is 10%. a. What is the value of the factory
Answer:
The value of the factory is $79,909.84
Explanation:
The computation of the value of the factory is shown below:
= Initial investment + annual year cash flows ÷ (1 + rate of return)^number of years
= -$290,000 + $85,000 ÷ (1.10) + $145,000 ÷ (1.10)^2 + $230,000 ÷ (1.10)^3
After solving this, the value of the factory is equivalent to
= $79,909.84
Hence, the value of the factory is $79,909.84
The cash account of Aguilar Co. showed a ledger balance of $3,969.85 on June 30, 2020. The bank statement as of that date showed a balance of $4,150. Upon comparing the statement with the cash records, the following facts were determined.
1. There were bank service charges for June of $25.
2. A bank memo stated that Bao Dai’s note for $1,200 and interest of $36 had been collected on June 29, and the bank had made a charge of $5.5 on the collection. (No entry had been made on Aguilar’s books when Bao Dai’s note was sent to the bank for collection.)
3. Receipts for June 30 for $3,390 were not deposited until July 2.
4. Checks outstanding on June 30 totaled $2,136.05.
5. The bank had charged the Aguilar Co.’s account for a customer’s uncollectible check amounting to $253.2 on June 29.
6. A customer’s check for $90 (as payment on the customer’s Accounts Receivable) had been entered as $60 in the cash receipts journal by Aguilar on June 15.
7. Check no. 742 in the amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $58.2 had been entered as $582. Both checks had been issued to pay for purchases and were payments on Aguilar’s Accounts Payable.
Required:
a. Prepare a bank reconciliation dated June 30, 2020, proceeding to a correct cash balance.
b. Prepare any entries necessary to make the books correct and complete.
Answer:
a) bank account reconciliation
bank account balance $4,150
+ deposits in transit $3,390
- outstanding checks ($2,136.05)
reconciled account $5,403.95
cash account reconciliation
cash account balance $3,969.85
- bank fees ($25)
+ note collected (including interest) $1,236
- bank fees for collecting note ($5.50)
- NSF check ($253.20)
- error in processing customer's check $30
- error in processing check no. 742 ($72)
+ error in processing check no. 747 $523.80
reconciled account $5,403.95
b) adjusting entries
1. Dr Bank fees expense 25
Cr Cash 25
2. Dr Cash 1,230.50
Dr Bank fees 5.50
Cr Notes receivable 1,200
Cr Interest revenue 36
3. and 4. no adjusting entry required
5. Dr Accounts receivable 253.20
Cr Cash 253.20
6. Dr Cash 30
Cr Accounts receivable 30
7. Dr Accounts payable 451.80
Cr Cash 451.80
What makes financial professions popular in Nepal?
if im not mistaking it's cause Nepal is rich in resources even if it's economically poor, the resources there are outstanding.
MHM Bank currently has $700 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, but the Federal Reserve is increasing this requirement to 10 percent.
a. Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only 70 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in millions. Do not round intermediate calculations. Round your "Panel B" answers to 3 decimal places. (e.g., 32.161))
Panel A: Initial balance sheets
Federal Reserve Bank
Assets Liabilities
(Click to select)LoansReserve deposits at FedReserve accountsSecuritiesTransaction deposits $ million (Click to select)SecuritiesLoansReserve accountsTransaction depositsReserve deposits at Fed $ million
MHM Bank
Assets Liabilities
(Click to select)SecuritiesReserve accountsTransaction depositsReserve deposits at FedLoans $ million (Click to select)SecuritiesTransaction depositsReserve accountsReserve deposits at FedLoans $ million
(Click to select)Transaction depositsSecuritiesReserve accountsLoansReserve deposits at Fed $ million Panel B: Balance sheet after all changes
Federal Reserve Bank
Assets Liabilities
(Click to select)LoansReserve accountsReserve deposits at FedTransaction depositsSecurities $ million (Click to select)Reserve deposits at FedSecuritiesReserve accountsLoansTransaction deposits $ million
MHM Bank
Assets Liabilities
(Click to select)Reserve deposits at FedSecuritiesReserve accountsTransaction depositsLoans $ million (Click to select)Reserve accountsLoansReserve deposits at FedSecuritiesTransaction deposits $ million
(Click to select)LoansSecuritiesTransaction depositsReserve accountsReserve deposits at Fed $ million b. Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts 70 percent of its excess reserves to loans and borrowers return 90 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in millions. Do not round intermediate calculations. Round your "Panel B" answers to 3 decimal places. (e.g., 32.161))
Panel A: Initial balance sheets
Federal Reserve Bank
Assets Liabilities
(Click to select)Reserve deposits at FedSecuritiesReserve accountsLoansTransaction deposits $ million (Click to select)Transaction depositsReserve deposits at FedSecuritiesReserve accountsLoans $ million
MHM Bank
Assets Liabilities
(Click to select)Transaction depositsReserve accountsLoansReserve deposits at FedSecurities $ million (Click to select)LoansReserve accountsSecuritiesReserve deposits at FedTransaction deposits $ million
(Click to select)SecuritiesTransaction depositsLoansReserve deposits at FedReserve accounts $ million
Panel B: Balance sheet after all changes
Federal Reserve Bank
Assets Liabilities
(Click to select)SecuritiesTransaction depositsReserve accountsLoansReserve deposits at Fed $ million (Click to select)Transaction depositsLoansSecuritiesReserve accountsReserve deposits at Fed $ million
MHM Bank
Assets Liabilities
(Click to select)SecuritiesReserve deposits at FedLoansTransaction depositsReserve accounts $ million (Click to select)SecuritiesReserve accountsReserve deposits at FedLoansTransaction deposits $ million
(Click to select)Transaction depositsReserve accountsReserve deposits at FedLoansSecurities $ million
Question attached
Answer and Explanation:
Please find attached
Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2019 to $10.75 million in 2020. Its assets totaled $2 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%.
Required:
Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Answer:
$236,500
Explanation:
Using the AFN equation to forecast Broussard's additional funds
Sales expected in 2019 2,150,000
( 8,600,000* .25)
After-tax profit margin 430,000
(10,750,000*4%)
Dividend payments 193,500
[$430,000 * 45%]
Addition to retained earnings $236,500
[$430,000 - $193,500]
Therefore forecast Broussard's additional funds needed for the coming year will be $236,500
NYJ, Inc. borrowed $800,000 on June 1, 2020, and signed a nine-month note bearing interest at 5%. Principal and interest are payable in full at maturity. In connection with this note, NYJ, Inc. should record interest expense in 2021 in the amount of:
Answer:
Interest expense of $23333.33 should be recorded in 2021 along with a liability of interest payable of $23333.33
Explanation:
The interest expense should be recorded in accordance with the accrual principle of accounting. The accrual or matching principle states that the expenses and revenues should be matched and should be recorded in the period to which they relate to rather then when the cash is paid or received.
Thus, the interest expense relating to 7 months from June 2021 to December 2021 will be recorded as interest expense and interest payable in2021.
Interest expense for 7 months = 800000 * 0.05 * 7/12 = $23333.33
Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours × (54,000 + 10,200)]. Expected annual manufacturing overhead is $1,570,706. Thus, the predetermined overhead rate is $16.31 or ($1,570,706 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models.
The company’s managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.
Expected Use of
Drivers by Product
Activity Cost Estimated Expected Use of
Cost Pools Drivers Overhead Cost Drivers Home Commercial
Receiving Pounds $87,100 335,000 215,000 120,000
Forming Machine hours 157,500 35,000 27,000 8,000
Assembling Number of parts 390,600 217,000 165,000 52,000
Testing Number of tests 61,200 25,500 15,500 10,000
Painting Gallons 36,806 5,258 3,680 1,578
Packing and Pounds 837,500 335,000 215,000 120,000
shipping
$1,570,706
1.) Under traditional product costing, compute the total unit cost of each product. (Round answers to 2 decimal places, e.g. 12.25.)
2.) Under ABC, complete the schedule showing the computations of the activity-based overhead rates (per cost driver). (Round your answers to 2 decimal places, e.g. 2.25.)
3.) Complete the schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Use rates from part b above and round cost assigned to 0 decimal places, e.g. 12,250. Round overhead per unit to 2 decimal places, e.g. 2.25. Note that due to rounding your total cost assigned will be slightly different than calculated above.)
Cost Driver Home Model
Commercial Model
Cost Assigned
4.) Compute the total cost per unit for each product under ABC. (Round your answers to 2 decimal places, e.g. 12.25.)
Home Model $
Commercial Model $
5.)Classify each of the activities as a value-added activity or a non-value-added activity.
Activity
Receiving value-addednon-value-added
Forming non-value-addedvalue-added
Assembling value-addednon-value-added
Testing value-addednon-value-added
Painting non-value-addedvalue-added
Packing and shipping value-addednon-value-added
Answer:
Combat Fire, Inc.
1) Computation of the total unit cost of each product:
Home Commercial Total
Direct materials cost $999,000 $270,300 $1,269,300
Direct labor cost 1,539,000 290,700 1,829,700
Overhead cost 1,321,110 249,543 1,570,653
Total costs $3,859,110 $810,543 $4,669,653
Unit cost $71.47 $79.47
2) Computations of the activity-based overhead rates:
Activity Rates
Receiving $0.26 ($87,100/335,000)
Forming $4.50 ($157,500/35,000)
Assembling $1.80 ($390,600/217,000)
Testing $2.40 ($61,200/25,500)
Painting $7.00 ($36,806/5,258)
Packing & Shipping $2.50 ($837,500/335,000)
3) Schedule Assigning Overhead Cost based on activity:
Activity Rates Home Commercial
Receiving $0.26 $55,900 $31,200
Forming $4.50 121,500 36,000
Assembling $1.80 297,000 93,600
Testing $2.40 37,200 24,000
Painting $7.00 25,760 11,046
Packing & Shipping $2.50 537,500 300,000
Total overhead $1,074,860 495,846
4) Computation of the total cost per unit under ABC:
Home Commercial Total
Direct materials cost $999,000 $270,300 $1,269,300
Direct labor cost 1,539,000 290,700 1,829,700
Overhead cost 1,074,860 495,846 1,570,706
Total costs $3,612,860 $1,056,846 $4,669,706
Unit cost $66.90 $103.61
5. Classification of activities as a value-added or non-value-added activities:
Activity
Receiving non-value-added
Forming value-added
Assembling value-added
Testing non-value-added
Painting value-added
Packing and shipping non-value-added
Explanation:
Total annual direct labor hours = 96,300
Fire Extinguishers
Home Commercial Total
Units (volume) 54,000 10,200
Direct labor hours 81,000 15,300 96,300
Manufacturing overhead = $1,570,706
Predetermined overhead rate = $16.31 ($1,570,706/96,300)
Direct materials cost $18.50 $26.50
Direct labor costs $19 $19
Cost Pools Drivers Overhead Cost Drivers Home Commercial
Receiving Pounds $87,100 335,000 215,000 120,000
Forming Machine hours 157,500 35,000 27,000 8,000
Assembling Number (parts) 390,600 217,000 165,000 52,000
Testing Number of tests 61,200 25,500 15,500 10,000
Painting Gallons 36,806 5,258 3,680 1,578
Packing & Pounds 837,500 335,000 215,000 120,000
shipping
$1,570,706
Activity Rates Home Commercial
Receiving $0.26 $55,900 $31,200
Forming $4.50 121,500 36,000
Assembling $1.80 297,000 93,600
Testing $2.40 37,200 24,000
Painting $7.00 25,760 11,046
Packing & Shipping $2.50 537,500 300,000
Total overhead $1,074,860 495,846
Home Commercial Total
Units (volume) 54,000 10,200
Direct labor hours 81,000 15,300 96,300
Direct materials $18.50 $26.50
Direct labor costs $19 $19
Traditional (Predetermined Overhead Rate):
Home Commercial Total
Direct materials cost $999,000 $270,300 $1,269,300
Direct labor cost 1,539,000 290,700 1,829,700
Overhead cost 1,321,110 249,543 1,570,653
Total costs $3,859,110 $810,543 $4,669,653
Unit cost $71.47 $79.47
ABC:
Home Commercial Total
Direct materials cost $999,000 $270,300 $1,269,300
Direct labor cost 1,539,000 290,700 1,829,700
Overhead cost 1,074,860 495,846 1,570,706
Total costs $3,612,860 $1,056,846 $4,669,706
Unit cost $66.90 $103.61
The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:
Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,000 0.2 $0
0.6 $6,750 0.6 $6,750
0.2 $7,500 0.2 $17,000
BPC has decided to evaluate the riskier project at 11% and the less-risky project at 8%.
What is each project's expected annual cash flow?
A. Project A. B. Project B. Project B's standard deviation (?B) is $5,444 and its coefficient of variation (CVB) is 0.73. What are the values of (?A) and (CVA)?
Answer:
Explanation:
Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,000 0.2 $0
0.6 $6,750
Orange Inc., an orange juice producer with a current debt-to-equity ratio of 2, is considering expanding its operations to produce toothpaste. Unsurprisingly, the toothpaste industry faces a different set of risks than the orange juice industry. However, the executives at Orange Inc. observe that Paste Inc., a toothpaste company, has a cost of equity of 12%, a cost of debt of 6%, and a debt-to-value ratio of 40%. Orange Inc. plans to finance its expansion into toothpaste production with 50% debt and 50% equity. The cost of debt for Orange Inc. is also 6%, and the corporate tax rate is 25%. Solve for the discount rate that Orange Inc. should use when evaluating whether to go forward with the expansion Note: Orange Inc. does not want to use the Adjusted Present Value method.
Appropriate Rate = 12.08%
Appropriate Rate = 9.60%
Appropriate Rate = 13.20%
Appropriate Rate = 8.85%
Assume Last Inc. has no cash on hand, but wants to take on a project that adds $30 million in market value to the firm's assets, and has an NPV of $20 million. The project requires an initial investment of $10 million. LastQ Inc. wants to maintain its 50% Debt to Value Ratio.
How much debt should LastQ issue, and how much should they pay stockholders in dividends?
Issue $30 million in debt, pay $5 million to shareholders
Issue $15 million in debt, pay $5 million to shareholders Issue $10 million in debt, pay $20 million to shareholders
Issue $20 million in debt, pay $8 million to shareholders
Answer:
Appropriate Rate = 8.85%
Explanation:
Given the following :
Paste Inc,
cost of debt (Kd) = 6% = 0.06
Cost of Equity Ke = 12% = 0.12
Weight of debt ; Wd = 40%
Weight of equity; We = 1 - 40% = 0.6
Pretax discount :
We * Ke + Wd * Kd
0.6 * 0.12 + 0.4 * 0.06 = 0.096
For orange :
Weight of debt (Wd) = 50% = 0.5
Weight of Equity (We) = 50% = 0.5
Cost of debt (Kd) = 6% = 0.06
Tax rate (r) = 25% = 0.25
Cost of Equity (Ke) :
Pretax discount + 1(pretax discount - cost of debt)
0.096 + 1(0.096 - 0.06)
0.096 + 0.096 - 0.06 = 0.132
WACC: for orange Inc.
We * Ke + Wd * Kd * ( 1 - tax rate)
0.5 * 0.132 + 0.5 * 0.06 * (1 - 0.25)
0.5 * 0.132 + 0.5 * 0.06 * 0.75
0.066 + 0.0225
= 0.0885
= 0.0885 * 100%
= 8.85%
Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Pana has provided the following analysis of price and cost for the contracts: Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.
Required:
1. Should the two contracts be combined for purposes of applying the 5-step revenue recognition model?
2. What amount of revenue should Panarin associate with each of the contracts?
3. When should revenue be recognized on each of the contracts?
Here are some missing parts of your question.
contract price for a = 125,000, for b = 80,000
cost of related goods for a = 70,000 for b = 55,000
Explanation:
1. Both contracts should be combined for the the purpose of applying this model. so the answer is yes
2.
120000 + (5000 x 60%)
= 120000 + 3000
= $123000
80000 (5000 x 40%)
= 80000 + 2000
= $82000
from the question we were told that prices for Contract A is $120,000 while prices for Contract B is $80,000. the Contract price of Contract A put to be $125,000. so we have $5,000 more that should be shared between the contracts a and b. so the obligations for goods from A is calculated to be $123,000 and tht of contract B is $82,000.
c.
when control of goods is shifted to customer then the revenue has to be recognized
Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,800 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $662,560 in total. The ending work in process inventory in January consisted of 4,000 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead
Cost per equivalent unit $12.70 $4.00 $6.60
Required:1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.4. Prepare a cost reconciliation for January.
Answer:
1. Units of Ending work in process
4,000 2,000 1,200 1,200
2. Cost of Ending WIP $25,400 $4,800 $7,920
Total for January $38,120
3.Cost of Units transferred
$340,360 $107,200 $176,880
Total in January $624,440
4. Costs to be accounted for $662,560
Total cost accounted for $662,560
Explanation:
1. Compute the equivalent units of materials, labor, and overhead
Equivalent units of production (EUP) in the Ending work in process - Weighted Average method
Units %Material EUP-Material % Labor EUP- Labor % Overhead EUP- Overhead
Units of Ending work in process
4,000 50% 2,000 30% 1,200 30% 1,200
2. Computation for the cost of ending work in process for January
Computation of Ending Work in process inventory
Materials Labor Overhead
Equivalent units 2,000 1,200 1,200
×Cost per equivalent unit $12.70 $4.00 $6.60
=Cost of Ending WIP $25,400 $4,800 $7,920
Total for January $38,120
3. Computation of the cost of the units transferred to the next department
Computation of Cost of the units transferred
Materials Labor Overhead Total for January
Equivalent units (26,800*100%) 26,800 26,800 26,800
×Cost per equivalent unit $12.70 $4.00 $6.60
=Cost of Units transferred
$340,360 $107,200 $176,880 Total in January $624,440
4. Preparation of a cost reconciliation for January.
Cost Reconciliation Report
Costs to be accounted for $662,560
Costs accounted for as follows:
Cost of unit transferred out $624,440
Add Cost of Ending Work in process inventory $38,120
Total cost accounted for $662,560
Consider the following information for stocks A, B, and C. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)
Stock Expected Return Standard Deviation Beta
A 8.60% 14% 0.8
B 9.95 14 1.1
C 11.75 14 1.5
Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. (That is, required returns equal expected returns.)
Required:
a. What is the market risk premium?
b. What is the beta of Fund P?
c. What is the required return of Fund P?
d. Would you expect the standard deviation of Fund P to be less than 15%, equal to 15% or greater than 15%? Explain.
Question attached
Answer and Explanation:
Find attached
Blago Wholesale Company began operations on January 1, 20X1, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 20X2 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed:
20X1 20X2
Final inventory:
Average cost $150,000 $255,000
FIFO 160,000 270,000
Condensed income statements for Blago Wholesale appear below:
20X1 20X2
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and
administrative 250,000 275,000
Net income $150,000 $205,000
Required:
Based on this information, what would 20X2 net income be after the change to the FIFO method? Ignore any income tax effects of this change in accounting method.
Answer:
net income for 20x2 is $220,000
Explanation:
if the company changes to the FIFO method, the adjusting entry should be:
Dr Inventory 15,000
Cr Cost of goods sold 15,000
This means that COGS will decrease by $15,000.
20x2 income statement
Sales $1,200,000
Cost of goods sold ($705,000)
Gross profit $495,000
S&A expenses ($275,000)
Net income $220,000
What is the amount of Maple Corp.'s charitable contribution deduction for the painting (assuming income limitations do not apply)
Answer:
The first part of the question is missing, so I looked for similar questions:
Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display.
Maple Corp. can deduct $100,00 as charitable contribution.
When a corporation or an individual donates art work to a qualifying charity, they can deduct the fair market value of the art work if:
they have owned the art work for at least 1 year prior to the donationthe charity must use the art work in a manner directly related to its regular activities and missionthe charity must hold the art work for at least 3 years after you donated itthe IRS must classify the company or individual as an investor or art collector, e.g. artists cannot deduct donations of their own artA microwave manufacturing company has just switched to a new automated production system. Unfortunately, the new machinery has been frequently failing and requiring repairs and service. Historically, the company has been able to provide its customers with a completion time of 6 days or less. To analyze whether the completion time has increased, the production manager took a sample of 36 jobs and found that the sample mean completion time was 6.5 days with a sample standard deviation of 1.5 days. At a significance level of .10 using the critical value rule, we can show that the completion time has increased.
Required:
Indicate which test you are performing; show the hypotheses, the test statistic and the critical values and mention whether one- tailed or two-tailed.
Answer
Kindly check explanation
Explanation:
Given the following :
Sample mean (m) = 6.5
Samole standard deviation (s) = 1.5
α = 0.10
Sample size (n) = 36
μ = 6
Null : μ ≤ 6
Alternative : μ > 6
Decision region:
If Tstatistic > tα, n - 1 ; reject Null
One tailed test (right tail)
Tstatistic (t) :
(m - μ) / s/√n
(6.5 - 6) / 1.5/√36
0.5 / 0.25
= 2
tα, n - 1 = t0.1,35 ; from t table ; = 1.306
If Tstatistic > tα, n - 1 ; reject Null
2 > 1.306 ; hence reject Null
Price Shares (millions) 1/1/16 1/1/17 1/1/18 Douglas McDonnell355 $86 $91 $103 Dynamics General455 55 52 66 International Rockwell270 84 73 87 a. Calculate the initial value of the index if a price-weighting scheme is used.
Answer:
The full question is "The following three defense stocks are to be combined into a stock index in January 2013 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Price Shares (millions) 1/1/13 1/1/14 1/1/15 Douglas McDonnell 355 $ 86 $ 91 $ 103 Dynamics General 455 55 52 66 International Rockwell 270 84 73 87 a. Calculate the initial value of the index if a price-weighting scheme is used. (Index value) b. What is the rate of return on this index for the year ending December 31, 2013? For the year ending December 31, 2014?"
a. Initial value for Index = Sum of prices / Number of stocks
Initial value for Index = ($86+$55+$84)/3
Initial value for Index = $225/3
Initial value for Index = $75
b. For the year ending December 31, 2013
Index value at the end of 2013 = ($91+$52+$73)/3
Index value at the end of 2013 = $216/3
Index value at the end of 2013 = 72
Rate of Return = (Ending price - Beginning price) / Beginning price
Rate of Return = (72-75)/75
Rate of Return = -3/75
Rate of Return = -0.04
Rate of Return = -4%
For the year ending December 31, 2014
Index value at the end of 2014 = ($103+$66+$87)/3
Index value at the end of 2014 = $256/3
Index value at the end of 2014 = $85.33
Rate of Return = (Ending price - Beginning price) / Beginning price
Rate of Return = (85.33-72)/72
Rate of Return = 13.33/72
Rate of Return = 0.1851
Rate of Return = 18.51%
[accounting] A retailer completed a physical count of ending merchandise inventory. When counting inventory, employees did not include $2,200 of incoming goods shipped by a supplier on December 31 under FOB shipping point. These goods had been recorded in Merchandise Inventory, but they were not included in the physical count because they were in transit. This means shrinkage was incorrectly overstated by $2,200.
Compute the amount of overstatement or understatement for each of the following amounts for this period.
a. ending inventory
b. total assets
c. net income
d. total equity
Answer:
a. Ending inventory - UNDERSTATED by $2,200
The goods were shipped FOB shipping point which means that they should be included as inventory as soon as they are shipped by the supplier. As they were not, Inventory was understated by $2,200.
b. Total assets - UNDERSTATED by $2,200
Inventory is part of Assets so if Inventory is understated by $2,200 then so are Total Assets.
c. Net income - UNDERSTATED by $2,200
Ending Inventory is subtracted from Cost of Goods sold which is then subtracted from Revenue. As ending inventory was understated, that means Cost of Goods sold was Overstated and therefore had the effect of understating Revenue and by extension, Net Income.
d. Total equity - UNDERSTATED by $2,200
Net Income goes to Total equity as Retained earnings so if Net income is understated so also is Total equity.
The amount of understatement for ending inventory, total assets, net income, and total equity is $2200.
From the information given, the amount of overstatement or understatement for each amount for this period will be:
Ending inventory = $2200 = Understated Total assets = $2200 = Understated Net income = $2200 = Understated Total equity = $2200 = UnderstatedWhen inventory is understated, the assets will be understated too. Also, when net income is understated, total equity is understated too.
Read related link on:
https://brainly.com/question/17138008
Suppose you are the agent for a baseball pitcher. Suppose he is offered the following contract by the New York Yankees: a signing bonus of $3,000,000 (to be received immediately), a first year’s salary of $6,000,000 (to be received one year from today), a second year’s salary of $7,000,000 (to be received two years from today), and a third year’s salary of $8,000,000 (to be received three years from today). Suppose he is offered the following contracts by the San Francisco Giants: a signing bonus of $6,000,000, a first year’s salary of $5,500,000, a second year’s salary of $6,000,000, and a third year’s salary of $6,000,000.
If you believe the interest rate is 10%, which offer would you advise the pitcher to accept?
Would your advice change if you believed the interest rate were 5%?
Answer:
Results are below.
Explanation:
Giving the following information:
New York Yankees:
Signing bonus= $3,000,000
Cf1= $6,000,000
Cf2= $7,000,000
Cf3= $8,000,000
San Francisco Giants:
Signing bonus= $6,000,000
Cf1= $5,500,000
Cf2= $6,000,000
Cf3= $6,000,000
The best option is the one with the higher Present Value.
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
a) New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.1= 5,454,545.45
Cf2= 7,000,000/1.1^2= 5,785,123.97
Cf3= 8,000,000/1.1^3= 6,010,518.41
Total PV= $20,250,187.83
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.1= 5,000,000
Cf2= 6,000,000/1.1^2= 4,958,677.69
Cf3= 6,000,000/1.1^3= 4,507,888.81
Total PV= $20,466,566.5
At an interest rate of 10%, the contract of San Francisco Giants is the more profitable.
b) i= 5%
New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.05= 5,714,285.71
Cf2= 7,000,000/1.05^2= 6,349,206.35
Cf3= 8,000,000/1.05^3= 6,910,700.79
Total PV= $21,974,192.85
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.05= 5,238,095.24
Cf2= 6,000,000/1.05^2= 5,442,176.87
Cf3= 6,000,000/1.05^3= 5,183,025.59
Total PV= $21,863,297.7
At an interest rate of 5%, the contract of New York Yankees is the more profitable.
Each of these is a key element of goal setting:
specific
intelligent
time-bound
measurable
Answer: Specific, Time-bound, measurable
Explanation: Trust me ;)