Answer:
To minimize costs, Job 1 should be assigned to Worker A while Job 2 is assigned to Worker B and the total cost will be $17.
Explanation:
a) Data and Calculations:
Worker A Worker B
Cost of Job 1 $5 $10
Cost of Job 2 $8 $12
Job assignments 1:
Worker A Worker B Total Cost
If Job 1 is assigned to $5 $5
Then Job 2 is assigned to $12 12
Total cost of jobs $5 $12 $17
Job assignments 2:
Worker A Worker B Total Cost
If Job 1 is assigned to $10 $10
Then Job 2 is assigned to $8 8
Total cost of jobs $8 $10 $18
Job assignment 1 should be adopted to minimize cost by $1.
Janson Company prepares an income statement for financial accounting purposes using the traditional income statement format, as well as an income statement for managerial accounting purposes using the contribution margin format. Selected information from both income statement formats are as follows:
Revenues $200,000
Cost of goods sold $40,000
Contribution ion margin ratio 50%
Operating expenses $120,000
Fixed expenses $60,000
Required:
Using the contribution margin format, operating income is:_______
Answer:
500$0000$0000
Explanation:
a. State the total monthly budgeted cost formula. b. Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data
Question Completion:
Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling
Department is as follows.
Ratchet Company
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Difference
Favorable F
Manufacturing Cost Budget Actual Unfavorable U
Variable costs
Direct materials $48,000 $47,000 $1,000 F
Direct labor 54,000 51,200 2,800 F
Indirect materials 24,000 24,200 200 U
Indirect labor 18,000 17,500 500 F
Utilities 15,000 14,900 100 F
Maintenance 12,000 12,400 400 U
Total variable 171,000 167,200 3,800 F
Fixed costs
Rent 12,000 12,000 0
Supervision 17,000 17,000 0
Depreciation 6,000 6,000 0
Total fixed 35,000 35,000 0
Total costs $ 206,000 $ 202,200 $3,800 F
The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced.
Instructions
(a) State the total monthly budgeted cost formula.
(b) Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data?
Answer:
Ratchet Company
a. The total monthly budget cost formula is:
= $35,000 + $2.85x
where x = budgeted monthly units
b. Flexible Budget for August:
Ratchet Company
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Difference
Favorable F
Manufacturing Cost Flexible Actual Unfavorable U
Variable costs
Direct materials $46,400 $47,000 $600 U
Direct labor 52,200 51,200 1,000 F
Indirect materials 23,200 24,200 1,000 U
Indirect labor 17,400 17,500 100 U
Utilities 14,500 14,900 400 U
Maintenance 11,600 12,400 800 U
Total variable 165,300 167,200 1,900 U
Fixed costs
Rent 12,000 12,000 0
Supervision 17,000 17,000 0
Depreciation 6,000 6,000 0
Total fixed 35,000 35,000 0
Total costs $200,300 $ 202,200 $1,900 U
c. A flexible budget report provides a better basis for evaluating the Assembly Department's performance as it uses the same activity level as the actual results with which the budget is compared.
Explanation:
a) Data and Calculations:
Flexing the variable costs:
Direct materials = $46,400 ($48,000/60,000 * 58,000)
Direct labor 52,200 (54,000/60,000 * 58,000)
Indirect materials 23,200 (24,000/60,000 * 58,000)
Indirect labor 17,400 (18,000/60,000 * 58,000)
Utilities 14,500 (15,000/60,000 * 58,000)
Maintenance 11,600 (12,000/60,000 * 58,000)
When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its price. This situation illustrates ________.a. a differentiation strategy.b. intense rivalry among competitors.c. the treat of substitutes.d. a cost leadership strategy.
Answer:
b. intense rivalry among competitors.
Explanation:
In the market place competitors exist trying to gain an upper hand over each other. They do this by adopting a strategy that will give them an edge over the other firms.
Some examples of strategy used by competitors to get ahead include differentiation strategy and price leadership strategy.
In the given scenario one gas station lowers its price a penny. Because of intense rivalry between competitors they did not allow the gas station maintain the price advantage.
Rather the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its price.
assume that a compan operates a fleet of limousines if a limo is driven 80,000 miles during a year its average is 25 cents per mile. driven only 60,000 miles operating cost is 30 cents per mile high low method, what is the estimated fixed cost per year
Answer:
The answer is "$12000".
Explanation:
Calculating the total cost:
when 80,000 miles[tex]=(80,000\times 0.25)=\$20,000[/tex]
when 60,000 miles[tex]=(60,000\times 0.3)=\$18000[/tex]
[tex]\text{Calculating the per mile variable cost} =\frac{[\text{Total cost of highest level-Total cost of lowest level}]}{(Highest \ level-Lowest \ level)}[/tex]
[tex]=\frac{(20,000-18000)}{(80,000-60,000)}\\\\=\frac{(2,000)}{(20,000)}\\\\=\frac{(1,000)}{(10,000)}\\\\=\frac{(1)}{(10)}\\\\=$0.1 / mile[/tex]
So, the total fixed cost:
[tex]=20,000-(80,000\times 0.1)\\\\=20,000-8,000\\\\=\$12,000[/tex]
Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.
Oct. 1. Paid rent for the month, $5,700.
3. Paid advertising expense, $3,610.
5. Paid cash for supplies, $1,550.
6. Purchased office equipment on account, $23,700.
12. Received cash from customers on account, $7,740.
20. Paid creditor on account, $2,270.
27. Paid cash for miscellaneous expenses, $980.
30. Paid telephone bill for the month, $360.
31. Fees earned and billed to customers for the month, $51,600.
31. Paid electricity bill for the month, $620.
31. Paid dividends, $3,900.
Answer:
would you still like me to help you with this question
On February 5, McCracken Co. purchases 25 percent of Bradley Company common stock at a total cost of $90,000. Write the necessary adjusting entry.
Answer:
February 5
Dr Investment in Equity Shares $90,000
Cr Cash $90,000
Explanation:
Preparation of the necessary adjusting entries
Based on the information given we were told that the Company common stock was purchased at a total cost of $90,000 which means that the appropriate adjusting journal entry will be:
February 5
Dr Investment in Equity Shares $90,000
Cr Cash $90,000
:
Santos Co. is preparing a cash budget for February. The company has $20,000 cash at the beginning of February and anticipates $75,000 in cash receipts and $100,250 in cash payments during February. What amount, if any, must the company borrow during February to maintain a $5,000 cash balance
Answer:
$10,250
Explanation:
The Cash Budget for February can be summarized as :
Receipts $75,000
Less Payments ($100,250)
Cash movement ($25,250)
Beginning Balance $20,000
Ending Balance ($5,250)
Desired Balance $5,000
Amount to be Borrowed $10,250
The company must borrow $10,250 ($5,000 + $5,250) during February to maintain a $5,000 cash balance.
An investment project has annual cash inflows of $4,200, $5,100, $6,300, and $5,500, and a discount rate of 15 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,900
Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
The payback period is the time required to cover the initial investment. We need to discount each cash flow.
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
To be more accurate:
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
At December 31, 2007 Polk Company had 300,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2007 or 2008. On January 30, 2008, Polk declared a 100% stock dividend on its common stock. Net income for 2008 was $950,000. In its 2008 financial statements, Polk's 2008 earnings per common share should be
Answer:
Polk Company
In its 2008 financial statements, Polk's 2008 earnings per common share should be:
= $1.42.
Explanation:
a) Data and Calculations:
December 31, 2007
Common stock outstanding = 300,000 shares
5%,Cumulative preferred stock outstanding, $100 par value = 10,000 shares
January 30, 2008 Stock dividend on common stock = 100% = 300,000 shares
Common stock outstanding = 600,000 shares
Net income for 2008 = $950,000
Cumulative preferred stock dividends:
2007 = $50,000
2008 = 50,000
Total = $100,000
Earnings for common stockholders = $850,000
Earnings per common share = $1.42
Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spending and tax policy that the government pursues to achieve particular macroeconomic goals. the investment policy that businesses pursue to achieve particular macroeconomic goals. the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. none of the above
Answer:
the spending and tax policy that the government pursues to achieve particular macroeconomic goals.
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.
Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.
On 6/30/12, a company paid $106,000 to retire a bond before maturity. The company recorded a $6,000 loss as part of the transaction. Which of the following must be true regarding this transaction?
a. The face value of the bond was $100,000
b. The market interest rate had increased since the bond was issued
c. The face value of the bond was $106,000
d. The company paid more than the current fair value of the bond to retire it.
e. The market interest rate had decreased since the bond was issued
Answer:
a. The face value of the bond was $100,000
Explanation:
Additional information about the company follows: Hubs require $24 in direct materials per unit, and Sprockets require $17. The direct labor wage rate is $14 per hour. Hubs require special equipment and are more complex to manufacture than Sprockets. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 27,000 125 100 225 Special processing (machine-hours) $ 258,000 4,300 0 4,300 General factory (organization-sustaining) $ 124,800 NA NA NA Required: 1. Compute the activity rate for each activity cost pool. 2. Determine the unit product cost of each product according to the ABC system.
Question Completion:
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:
Direct Labor Production
hours per unit Units
Hubs 0.7 27,000
Sprockets 0.3 59,000
Answer:
Fogerty Company
The unit product cost of each product according to the ABC system:
Hubs Sprockets
Unit production cost $46.22 $22.46
Explanation:
a) Data and Calculations:
Hubs Sprockets
Direct materials per unit $24 $17
Direct labor rate per hour $14 $14
Direct labor per unit $9.80 $4.20 ($14 *0.3)
Estimated Activity Activity Cost Pool Overhead Hubs Sprockets Total
(Activity Measure) Cost
Machine setups (number of setups) $ 27,000 125 100 225
Special processing (machine-hours) $ 258,000 4,300 0 4,300
General factory (organization-sustaining) $ 124,800 NA NA NA
Total overhead expenses $409,800
Activity rate:
Machine setups = $120 ($27,000/225)
Special processing = $60 ($258,000/4,300)
General factory = $62,400 ($124,800/2)
2. The unit product cost of each product according to the ABC:
Overhead costs:
Hubs Sprockets Total
Machine setups $15,000 $12,000 $27,000
Special processing 258,000 0 258,000
General factory 62,400 62,400 124,800
Total overhead $335,400 $74,400 $409,800
Units produced 27,000 59,000 86,000
Overhead per unit $12.42 $1.26
Hubs Sprockets
Direct materials per unit $24.00 $17.00
Direct labor per unit $9.80 $4.20
Overhead cost per unit $12.42 $1.26
Unit production cost $46.22 $22.46
The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45. 20Y3 20Y2 20Y1 Accounts receivable, end of year $710,000 $630,000 $565,000 Sales on account 5,691,000 4,628,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Assume a 365-day year. Do not round intermediate calculations. Round your answers to one decimal place. 20Y3 20Y2 1. Accounts receivable turnover fill in the blank 2 fill in the blank 3 2. Number of days' sales in receivables fill in the blank 4 days fill in the blank 5 days The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
Answer:
Sigmon Inc.
1. Accounts receivable turnover = Sales/Average accounts receivable
20Y3 = 8.49x
20Y2 = 7.75x
2. Number of days sales in receivables = 365/Accounts receivable turnover
20Y3 = 43 days
20y2 = 47.1 days
3. The collection of accounts receivable has improved from 47.1 days to 43 days. This can be seen in both the in accounts receivable turnover and the in the collection period.
Explanation:
a) Data and Calculations:
Terms of all sales are 2/10, n/45
20Y3 20Y2 20Y1
Accounts receivable, end of year $710,000 $630,000 $565,000
Sales on account 5,691,000 4,628,500
Average accounts receivable 670,000 597,500
1. Accounts receivable turnover = Sales/Average accounts receivable
20Y3 = 8.49x ($5,691,000/$670,000)
20Y2 = 7.75x ($4,628,500/$597,500)
2. Number of days sales in receivables = 365/Accounts receivable turnover
20Y3 = 43 days (365/8.49)
20y2 = 47.1 days (365/7.75)
Actual labor rate $16 per hour Actual materials price $160 per ton Standard labor rate $15.50 per hour Standard materials price $163 per ton Quantities Actual hours incurred and used 5,000 hours Actual quantity of materials purchased and used 1,700 tons Standard hours used 5,040 hours Standard quantity of materials used 1,675 tons (a) Compute the total, price, and quantity variances for materials and labor. Total materials variance $enter a dollar amount select an option Materials price variance $enter a dollar amount select an option Materials quantity variance $enter a dollar amount select an option Total labor variance $enter a dollar amount select an option Labor price variance $enter a dollar amount select an option Labor quantity variance
Answer:
Materials price variance $5,100 F
Materials quantity variance $4,075 U
Total labor variance $2,500 U
Labor price variance $620 F
Explanation:
a) Data and Calculations:
Actual Standard
Labor rate per hour $16 $15.50
Material price per ton $160 $163
Labor hours 5,000 5,040
Materials 1,700 1,675
a) Total price variance for materials = Standard price per ton - Actual price per ton * Actual materials
= $163 - $160 * 1,700
= $5,100 F
b) Total quantity variance for materials = Standard quantity - Actual quantity * Standard price
= 1,675 - 1,700 * $163
= 25 * $163
= $4,075 U
c) Total price variance for labor = Standard rate per hour - Actual rate per hour * Actual labor hours
= $15.50 - $16 * 5,000
= -$0.50 * 5,000
= $2,500 U
d) Total quantity variance for labor = Standard labor hours - Actual labor hours * Standard rate
= 5,040 - 5,000 * $15.50
= $620 F
Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors and is considering whether it should record $300,000 of revenue upon shipment of a new line of cosmetics. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold. How much revenue should Finerly recognize upon delivery to its distributors?
Answer: $0
Explanation:
When there is an expectation of reversal of the goods back to the company due to factors arising from a delay in the delivery of the goods or other factors that could not be controlled, the revenue recognized should be $0.
In this scenario, Finerly is uncertain about the ability of the goods to be sold by the distributors and is committed to accepting the cosmetics should they not sell.
As they have little experience which means that they will be unable to control much unforeseen factors, there is an expectation of reversal so revenue should be recognized at $0 on delivery. Revenue will only be recognized after sales.
The equilibrium price is: unstable because at this price the quantity demanded is less than the quantity supplied. stable because at this price the quantity demanded equals the quantity supplied. stable because at this price all buyers are willing and able to pay. unstable because at this price the quantity demanded exceeds the quantity supplied.
Answer:
stable because at this price the quantity demanded equals the quantity supplied.
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
Generally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
You are deciding where to eat dinner tonight. Eating at Soup Plantation costs $15 and it gives you $20 worth of benefit. Eating at Del Taco costs $5 and gives you $7 worth of value. What is the opportunity cost of eating at Soup Plantation
Answer: $7
Explanation:
Due to scarcity of resources, economic agents have to make choices and the real cost of the forgone alternative when a choice is made is referred to as the opportunity cost.
Based on the information given, the opportunity cost of eating at Soup Plantation will be the $7 worth of value that will be gotten when one eats at Del Taco.
On June 30, 2024, L. N. Bean issued $20 million of its 8% bonds for $18 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2024
Answer:
Explanation:
Interest expense for 6 months ended Dec 31, 2024 = issue price of bonds* market interest rate
= $18,000,000* 10%*6/12
= $900,000
stock co uses a job costing system the following debts appeared in stock work in process account for the month of april balance 4300 direct materials 26,4000 rate of 80% direct labor of 2300 what was the amount og direct materials charged to job no 5
Answer:
See below
Explanation:
The above information is incomplete. Concluding part from similar question is seen below.
Direct labor $16,000
Factory overhead $12,800
To finished goods ($48,000)
Therefore, the amount of direct materials charged to job is computed as;
= Balance + Direct materials + Direct labor + Factory overhead - Finished goods
= $4,300 + $26,400 + $16,000 + $12,800 - $48,000
= $11,500
The next step is to deduct the job Still in work in process charged with direct labor.
= $11,500 - $2,300
= $9,200
Hence, the amount of direct materials charged to job no 5 is $9,200
The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing______________________.
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents $5,600
Accounts receivable (net) 26,000
Inventory 66,000
Property, plant, and equipment (net) 150,000
Accounts payable 45,000
Salaries payable 17,000
Paid-in capital 130,000
The only asset not listed is short-term investments. The only liabilities not listed are $36,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.6:1.
Required:
Determine the following at December 31, 2021:
Total current assets
Short-term investments
Retained earnings
Answer and Explanation:
The computation is shown below:
1)
Total current assets of $100,800
2)
Short term investments = Total current assets - Cash and cash equivalents - Accounts receivable - Inventory
= $100,800 - $5,600 - $26,000 - $66,000
= $3,200
3)
Retained earnings = Property plant and equipment + Total current assets - Total liabilities - Paid in capital
where,
Total liabilities = Accounts payable + Salaries payable + Accrued interest + Notes payable
= $45,000 + $17,000 + $1,000 + $36,000
= $99,000
SO,
Retained earnings = $150,000 + $100,800 - $99,000 - $130,000
= $21,800
The initial value of your 401k savings plan is $35,000. The value your 401k savings plan at a later point in time is $44,500. The percent change in the value of your 401k plan over the period is
Answer: 27.14%
Explanation:
Percent change in value of 401k = (Ending value - Initial value) / Initial value * 100%
= (44,500 - 35,000) / 35,000 * 100%
= 9,500 / 35,000 * 100%
= 27.14%
Interest earning of 3% with a $450 minimum balance average monthly balance of $900 monthly service charge of $11 for falling below the minimum balance which occurs five times a year no interest earned in the month. What is the net annual cost
Answer:
$39.25
Explanation:
Given that Interest earning = 3 percent
minimum balance = $450
average monthly balance = $900
monthly service charge = $11
Occurrence period = 5 times
Hence, Net annual cost = Service charges - Interest earnings
=> Service Charge = (5 × $11) - Interest earnings (7 / 12)(0.03 × $900)
= $55 - $15.75
= $39.25
Therefore, the final answer to this question is $39.25
If a bank holds $450,000 in required reserves, and $1.8 million in total deposits, then the deposit expansion multiplier is:______.
a. 0.25
b. 2
c. 4
d. 5
e. 10
Answer:
4
Explanation:
A bank holds 450,000 in required reserves
The bank also hold 1,800,000 in total deposits
Therefore the deposits expansion multiplier can be calculated as follows
= 1,800,000/450,000
= 4
Hence the deposits expansion multiplier is 4
Which of the following statements are TRUE? A firm's entry/exit decision is about: I. whether profits are positive or negative now. II. whether the stream of future profits is positive or negative. III. government regulations.
Answer: Whether profits are positive or negative now
II. Whether the stream of future profits is positive or negative
Explanation:
It should be noted that In a perfectly competitive industry in the long run, there'll be new firms that will enter the market when the already existing firms are making profit.
In the case of a loss, there'll be an exit. Therefore, the true is that a firm's entry or exit decision is about whether profits are positive or negative now and also whether the stream of future profits is positive or negative.
Therefore, the correct option is and II
Which function will give the average of values in the second column of a database named “Earnings” that meets the criteria listed in cells A2 through C4?
A. =DAVERAGE(2,Earnings,A2:C4)
B. =DAVERAGE(A2:C4,Earnings,2)
C. =DAVERAGE(A2:C4,2,Earnings)
D. =DAVERAGE(Earnings,2,A2:C4)
Answer:
DDDD. =DAVERAGE(Earnings,2,A2:C4)
Explanation:
Took the test
The Bronco Corporation exchanged land for equipment. The land had a book value of $125,000 and a fair value of $160,000. Bronco received $15,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment
Answer:
The Bronco Corporation
The fair value of the equipment is:
= $145,000.
Explanation:
a) Data and Calculations:
Book value of land = $125,000
Fair value of the land = $160,000
Amount received from the equipment owner in exchange = $15,000
Fair value of the equipment = $145,000 ($160,000 - $15,000)
b) This simply means that the equipment is worth less than the land which is exchanged between Bronco and the equipment owner.
A company recorded 2 days of accrued salaries of $1,500 for its employees on January 31. On February 9, it paid its employees $7,200 for these accrued salaries and for other salaries earned through February 9. Assuming the company does not prepare reversing entries, the January 31 and February 9 journal entries are:
Answer:
Journal Entries are:
January 31:
Debit Salaries Expense $1,500
Credit Salaries Payable $1,500
To accrue salary expense for 2 days.
February 9:
Debit Salaries Expense $5,700
Debit Salaries Payable $1,500
Credit Cash $7,200
To record the payment of salaries expense, including salaries payable.
Explanation:
a) Data and Analysis:
January 31: Salaries Expense $1,500 Salaries Payable $1,500
February 9: Salaries Expense $5,700 Salaries Payable $1,500 Cash $7,200
g Oriole Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85300. Income taxes payable were $34000 at the beginning of the year and $20500 at the end of the year. Cash payments for income taxes are
Answer:
the cash payment for the income tax is $71,800
Explanation:
The computation of the cash payment for the income tax is shown below;
= Income tax expense + decrease in income tax payable
= $85,300 + ($20,500 - $34,000)
= $85,300 + $20,500 - $34,000
= $71,800
Hence, the cash payment for the income tax is $71,800
The same is to be considered
What is the purpose of using predetermined overhead rates: Variation in cost assignment due to short-term variations in volume can be prevented Delays in product costing can be avoided Variation in cost assignment due to seasonality can be prevented. All of the answers are correct.
Answer:
All of the answers are correct.
Explanation:
At the beginning of the accounting period a pre-determined overhead is computed by dividing the estimated overhead production by the estimated basis of operations. The default overhead rate is then applied to manufacturing, so that the standard cost for a product may be calculated
The purpose of using pretermined overhead rates are
Delays in product costing can be avoided
Variation in cost assignment due to seasonality can be prevented
Variation in cost assignment due to short-term variations in volume can be prevented
The Use of predetermined overhead rates serves all the above purposes
Hence, all answers are correct.