Answer:
1.
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
Explanation:
We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,
Carrying value = Cost - Accumulated depreciation
Depreciation 2019 = (497000 - 33000) * 83000 / 580000
Depreciation 2019 = 66400
Depreciation 2020 = (497000 - 33000) * 133000 / 580000
Depreciation 2020 = 106400
Depreciation 2021 = (497000 - 33000) * 67000 / 580000
Depreciation 2021 = 53600
Carrying value = 497000 - [ 66400 + 106400 + 53600 ]
Carrying value = $270600
1.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 253600 - 270600
Gain or (Loss) on sale = (17000) Loss
2.
Cash 253600 Dr
Accumulated Depreciation 226400 Dr
Loss on Sale 17000 Dr
Equipment 497000 Cr
3.
Gain or (Loss) on sale = Sales price - Carrying Value
Gain or (Loss) on sale = 280000 - 270600
Gain or (Loss) on sale = 9400 Gain
4.
Cash 280000 Dr
Accumulated Depreciation 226400 Dr
Gain on Sale 9400 Cr
Equipment 497000 Cr
When researchers estimate labor market discrimination, they control for many observable factors that are thought to impact wages (e.g., education, occupation, experience, location). Even after accounting for these factors, they find that men are typically paid more than women, concluding that any remaining differences may indicate discrimination. Of course, it is not possible to control for all differences that may affect earnings. Consider whether this methodology overestimates or underestimates the total effect of discrimination on wages.
a. Women may choose certain jobs to avoid the impact of discrimination in higher-paying professions. If this is the case, the methodology the total effect of discrimination on wages.
b. Jobs that are dominated by women may pay less than similarly skilled jobs that are dominated by men. If this is the case, the methodology the total effect of discrimination on wages. underestimates overestimates
Answer and Explanation:
a. In the case when the women might select the specific job for avoiding the effect of discrimination in a profession that pay high salary so the methodology would underestimate the total impact with respect to the discrimination of the wages
b. In the case when the job i.e dominated by the women that pay lower having same skilled job dominated by men. So here the methodology also be underestimated
Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.
Direct material cost per unit of Q $18
Total estimated manufacturing overhead $103,000
Total cost per unit of Q $72
Total estimated machine hours 206,000 MH
Direct labor cost per unit of Q $36
a. 40 MH per unit of Q.
b. 0.50 MH per unit of Q.
c. 0.75 MH per unit of Q.
d. 14.00 MH per unit of Q.
e. 24 MH per unit of Q.
Answer:
Machine hours per unit= 18 / 0.5= 36
Explanation:
First, we need to calculate the predetermined manufacturing overhead rate using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 103,000 / 206,000
Predetermined manufacturing overhead rate= $0.5 per machine hour
Now, we need to determine the allocated overhead:
Unitary cost= direct material + direct labor + allocated overhead
72= 18 + 36 + allocated overhead
18= allocated overhead
Finally, the machine hours per unit:
Machine hours per unit= 18 / 0.5= 36
Milano Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt–equity ratio of 35 percent and makes interest payments of $53,000 at the end of each year. The cost of the firm’s levered equity is 20 percent. Each store estimates that annual sales will be $1.54 million; annual cost of goods sold will be $790,000; and annual general and administrative costs will be $525,000. These cash flows are expected to remain the same forever. The corporate tax rate is 40 percent.
Use the flow to equity approach to determine the value of the company’s equity.
What is the total value of the company?
Answer:
A. $516,000
B. $696,600
Explanation:
A. Calculation to to determine the value of the Company's equity
First step is to calculate the Net income
Sales1,540,000
Less: Cost of goods sold790,000
Less: General and administrative costs525,000
Less: Interest expenses53,000
Income before corporate tax 172,000
Less: Corporate tax 40% 68,800
(40%*172,000)
Net income103,200
(172,000-68,800)
Now let determine the value of the Company's equity using this formula
Value of the Company's equity
= Net income/ cost of the firm’s levered equity
Let plug in the formula
Value of the Company's equity = $103,200/0.20
Value of the Company's equity = $516,000
Therefore The Value of the Company's equity is $516,000
B. Calculation to determine the total value of Company equity
First step is to calculate the Debt
Debt equity Ratio = 0.35
Debt/Equity = 0.35
Debt/ $516,000 = 0.35
Debt = $516,000 * 0.35
Debt =$180,600
Now let determine The Company’s value using this formula
Company’s Total value = Equity + Debt
Let plug in the formula
Company’s Total value = $516,000 + $180,600
Company’s Total value = $696,600
Therefore the total value of Company equity is $696,600
(One Temporary Difference, Tracked for 4 Years, One Permanent Difference, Change in Rate) The pretax financial income of Truttman Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $290,000 $180,000 35% 2021 320,000 225,000 20 2022 350,000 260,000 20 2023 420,000 560,000 20 Pretax financial income for each year includes a nondeductible expense of $30,000 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Instructions a. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021. b. Prepare the income statement for 2021, beginning with Income before income taxes.
Answer:
Truttman Company
a. Journal Entries:
December 31, 2020:
Debit Income Tax Expense $112,000
Income Tax Payable $63,000
Deferred tax liability $49,000
To record income tax expense for the year.
December 31, 2021:
Debit Income Tax Expense $70,000
Income Tax Payable $112,000
Deferred tax liability $25,000
To record income tax expense for the year.
December 31, 2022:
Debit Income Tax Expense $76,000
Income Tax Payable $52,000
Deferred tax liability $24,000
To record income tax expense for the year.
December 31, 2023:
Debit Income Tax Expense $90,000
Deferred tax asset $22,000
Income Tax Payable $112,000
To record income tax expense for the year.
b. Income Statement for 2021
Year 2021
Pretax Financial Income $320,000
Income tax expense 70,000
Net income $250,000
Explanation:
a) Data and Calculations:
Year Pretax Financial Income Taxable Income Tax Rate
2020 $290,000 $180,000 35%
2021 320,000 225,000 20
2022 350,000 260,000 20
2023 420,000 560,000 20
Year 2020 2021 2022 2023
Pretax Financial Income $290,000 $320,000 $350,000 $420,000
add Nondeductible expense 30,000 30,000 30,000 30,000
Adjusted Pretax Financial $320,000 $350,000 $380,000 $450,000
Taxable Income 180,000 225,000 260,000 560,000
Depreciation temporary
differences $140,000 $125,000 $120,000 ($110,000)
Tax Rate 35% 20% 20% 20%
Income Tax Payable $63,000 $45,000 $52,000 $112,000
Deferred tax liability (asset) 49,000 25,000 24,000 (22,000)
Income tax expense $112,000 $70,000 $76,000 $90,000
Question 9 of 15
What is a social platform?
A system that is dedicated to the development and management of an organization's employee policies.
A system that is dedicated to the development and management of customer relations.
A system that enables the development, deployment, and management of human resources solutions and
services.
A system that enables the development, deployment, and management of online interaction solutions and
services.
I don't know this yet.
Answer:
b is it I seen this before
On January 1, 2019, Sunland Company purchased the following two machines for use in its production process.
Machine A: The cash price of this machine was $50,000. Related expenditures included: sales tax $3,700, shipping costs $100, insurance during shipping $60, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Sunland estimates that the useful life of the machine is 5 years with a $5,050 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B: The recorded cost of this machine was $180,000. Sunland estimates that the useful life of the machine is 4 years with a $20,880 salvage value remaining at the end of that time period.
Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. The journal entry to record its purchase on January 1, 2019.
2. The journal entry to record annual depreciation at December 31, 2019.
No. Account Titles and Explanation Debit Credit 1.
Answer:
1. Purchase of Machine A (Dr.) $54,030
Cash (Cr.) $54,030
2. Depreciation Machine A (Dr.) $9,796
Accumulated depreciation (Cr.) $9,796
3. Depreciation Machine B (Dr.) $39,780
Accumulated depreciation (Cr.) $39,780
Explanation:
Machine A :
Cash price $50,000
Sales Tax $3,700
Shipping cost $100
Insurance $60
Installation and Testing $70
Oil and lubricants $100
Total cost of machine = $54,030
Depreciation = ( Cost - Salvage Value ) / Useful Life
Depreciation = ( $54,030 - 5,050 ) / 5 years = $9,796
Machine B :
Depreciation = ( 180,000 - 20,880 ) / 4 = $39,780
Where the goth girl at???
Answer:
im batman
Explanation:
Answer:
RAWR
Explanation:
A water bottle manufacturer plant uses a three-step procedure to produce each unit of bottled water. The first step, casting, which uses 35 labor hours to operate the furnace. The second step, quenching, which uses 35 labor hours, and the final step, dispatch, uses 70 labor hours. If the factory produces 14,000 bottles, than the productivity of labor is equal to:
Answer: 100 bottles per labor hour
Explanation:
To solve this question, we need to first calculate the number of labor hours used. This will be:
= 35 + 35 + 70
= 140 labor hours
Since the total number of bottles produced by the factory is 14000 bottles, then the productivity of labor will be equal to:
= Total production / Total labor hours .
= 14000 / 140
= 100 bottles per labor hour
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:
Sales $1,400,000
Net operating income $70,000
Average operating assets $350,000
Required:
a. Compute the Springfield club's return on investment (ROI), margin and turnover value.
b. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further, assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI), margin and turnover value?
c. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI), margin and turnover value?
Answer:
1. 20%
2.25.2%
3.24%
Explanation:
1. Calculation to determine the ROI
Using this formula
ROI= Net income/Average operating assets
Let plug in the formula
ROI= $70,000 / $350,000*100
ROI= 20%
2) ROI = ($70,000 +$18,200)/$350000"100
ROI=$88,200/$350,000*100
ROI=25.2%
3) ROI = ($70,000 +$14,000)/350000*100
ROI=$84,000/$350,000*100
ROI=24%
Staples Corporation would have had identical income before taxes on both its income tax returns and its income statements for the years 2020 through 2023 except for a depreciable asset that cost $120,000. The asset was 100% expensed for tax purposes in 2020. However, for accounting purposes the straight-line method was used (that is, $30,000 per year). The accounting and tax periods both end December 31. There were no deferred taxes at the beginning of 2020. The depreciable asset has a four-year estimated life and no residual value. The tax rate for each year was 25%. Pretax GAAP income amounts for each of the four years were as follows:
Year Pretax GAAP Income
2020 $230,000
2021 250,000
2022 240,000
2023 240,000
Required:
Prepare a schedule to compute the increase to income tax payable on December 31, 2020, 2021, 2022, and 2023.
Answer:
Staples Corporation
A Schedule, computing the increase to income tax payable on December 31, 2020, 2021, 2022, and 2023:
Year Pre-tax GAAP Tax- Tax Taxable Income Tax Deferred
GAAP Income able Income Income Payable Expense Liability
(a) (b) (c) 25% 25% (Recovery)
of (c) of (b)
2020 $230,000 $200,000 $110,000 $27,500 $50,000 $22,500
2021 250,000 220,000 250,000 62,500 55,000 (7,500)
2022 240,000 210,000 240,000 60,000 52,500 (7,500)
2023 240,000 210,000 240,000 60,000 52,500 (7,500)
Total $960,000 $840,000 $840,000 $210,000 $210,000 0
Explanation:
a) Data and Calculations:
Cost of depreciable asset = $120,000
Estimated useful life = 4 years
Residual value = $0
Tax depreciation expense = 100% in 2020
GAAP depreciation expense = 25% in 2020, 2021, 2022, and 2023
Tax rate for each year = 25%
Year Pre-tax GAAP Tax- Tax Taxable Income Tax Deferred
GAAP Income able Income Income Payable Expense Liability
(a) (b) (c) 25% 25% (Recovery)
of (c) of (b)
2020 $230,000 $200,000 $110,000 $27,500 $50,000 $22,500
2021 250,000 220,000 250,000 62,500 55,000 (7,500)
2022 240,000 210,000 240,000 60,000 52,500 (7,500)
2023 240,000 210,000 240,000 60,000 52,500 (7,500)
Total $960,000 $840,000 $840,000 $210,000 $210,000 0
2020 Tax Taxable Income = $110,000 ($230,000-$120,000)
GAAP Taxable Income = GAAP minus Annual Depreciation
b) Tax Taxable Income = GAAP income of $230,000 minus 100% depreciation ($120,000) for the first year and 0% for the remaining years. This gives rise to temporary differences in 2020 between the calculated tax payable and the tax expense for the following years. While in the first year, there arose a tax liability, this is offset in subsequent years.
Andrew is deciding whether to remain in the home he has lived in for the past ten years, which is located very near his work, or to move into a newer home that is located in the suburbs farther from his job. The old house was purchased for $160,000 and has a market value of $220,000. The new home can be purchased for $285,000. Which of the following is not relevant to Andrew's decision?
a. Driving distance to work
b. Cost of the old house
c. Market value of the old house
d. Cost of the new house
Answer:
The decision that is not relevant to Andrew is:
b. Cost of the old house.
Explanation:
a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges. It is a sunk or past cost. Past costs are not relevant because they do not make a difference in the decision or the alternative to choose. Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.
Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 4 years with no salvage value at the end of the 4 years. Ataxia internal rate of return on this equipment is 6%. Ataxia discount rate is also 6%. The payback period on this equipment is closest to (Ignore income taxes.):
Answer: 3.47 years
Explanation:
Payback Period on an investment can be calculated as:
= Cost of investment / Net annual cash inflow
The internal rate of return is the rate that equates the Cost of investment to the annual net cash inflow. This means that if you were to solve for the IRR factor, the formula would be:
= Cost of investment /Net annual cash inflow
Notice how the formulas are the same.
The factor for IRR is therefore the Payback period.
Using your Present value of an Annuity Factor table therefore, find the Factor for the IRR rate of 6% and 4 years.
= 3.4651
= 3.47 years
The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As a legal entity, a corporation has most of the rights and privileges of a person. 3. Most of the largest U.S. corporations are publicly held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. 5. The net income of a corporation is taxed as a separate entity. 6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder. 8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation. 9. The chief accounting officer of a corporation is the controller. 10. Corporations are subject to more state and federal regulations than partnerships or proprietorships.
Answer:
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. True
9. True
10. True
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.
Some of the characteristics or features of a corporation are highlighted below;
1. True: A corporation is an entity separate and distinct from its owners.
2. True: As a legal entity, a corporation has most of the rights and privileges of a person.
3. False: Most of the largest U.S. corporations are publicly held corporations. Actually, most of them are privately held corporations.
4. True: Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.
5. True: The net income of a corporation is taxed as a separate entity.
6. True: Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.
7. True: The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder.
8. True: The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation.
9. True: The chief accounting officer of a corporation is the controller.
10. True: Corporations are subject to more state and federal regulations than partnerships or proprietorships.
An analyst should treat preferred stock on a firm's balance sheet as debt when calculating leverage ratios if the preferred stock is: a. callable by the issuer. b. issued at a variable dividend rate. c. redeemable by shareholders. d. convertible into common stock.
Answer:
C. redeemable by shareholders
Explanation:
Redeemable preferred stock can be regarded as type of stock which give room for issuer in order for him/ her to buy back a particular stock at a particular price as well as retire it , so that the stock is been converted to treasury stock, one reason for treatment of preferred stock as debt instead of equity is that it behave like bond that that of a bond.It should be noted that An analyst should treat preferred stock on a firm's balance sheet as debt when calculating leverage ratios if the preferred stock is redeemable by shareholders.
Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Bob’s costs as either an implicit cost or an explicit cost of selling guitars.
a. The wholesale cost for the guitars that Bob pays the manufacturer
b. The wages and utility bills that Bob pays
c. The salary Bob could earn if he worked as a financial advisor
d. The rental income Bob could receive if he chose to rent out his showroom
Answer and Explanation:
The identification of each transaction as an explicit cost or implicit cost is as follows
a. It is an explicit cost as the cost would be paid to the factors of production
b. It is also an explicit cost as the cost would be paid to the factors of production
c. It is an implicit cost as it is considered to be the hidden cost
d. It is also an implicit cost as it is considered to be the hidden cost
The following account balances appear in the 2021 adjusted trial balance of Blue Devils Corporation: Cash, $3,300; Accounts Receivable, $7,300; Supplies, $17,300; Equipment, $103,000; Accumulated Depreciation, $36,500; Accounts Payable, $24,300; Salaries Payable, $14,300; Common Stock, $43,000; and Retained Earnings.
Required:
Prepare the December 31, 2021, classified balance sheet including the correct balance for retained earnings.
Answer and Explanation:
The preparation of the classfied balance sheet is presented below:
Assets Liabilities
Current assets Current liabilities
Cash $3,300 Account payable $24,300
Account receivable $7,300 Salaries payable $14,300
Supplies $17,300
Total current assets $27,900 Total current liabilities $38,600
Fixed assets Stockholder equity
Equipment $103,000 Common stock $43,000
Less: accumulated dep -$36,500 Retained earnings $12,800 (bal.fig)
Net equipment $66,500
Total fixed assets $66,500 Total stock holder equity $55,800
Total assets $94,400 Total liabilities & stock equity $94,400
1. Which of the following is an example of inflation?
a. The price of lettuce increases by $0.40 a head overnight.
b. The price level of many things you buy increases over time.
c. The average price level of many things you buy decreased last year.
d. The prices of computers and cellphones increases.
Lens Junction sells lenses for $44 each and is estimating sales of 16,000 units in January and 17,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 15 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,800 4,900 Direct materials: silicon 8,300 9,200 9,000 Direct materials: solution 11,000 12,200 12,900
Complete Question:
1. Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) Sales Price per Unit Total Sales Revenue Total
2. Prepare a production budget. Lens Junction Production Budget For the Two Months Ending February 28, 20XX January February Expected Sales Total Required Units Required Production Total
3. Prepare direct materials budget for silicon. Lens Junction For the Two Months Ending Fabrant Materials, Purinat for Silinn February Expected Sales Total Required Units Required Production Total
4.Prepare direct materials budget for silicon.
Answer:
Lens Junction
1. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales (Units) 16,000 17,000
Sales Price per Unit $44 $44
Total Sales Revenue $704,000 $748,000
2. Lens Junction Production Budget For the Two Months Ending February 28, 20XX
January February
Expected Sales Total 16,000 17,000
Ending Inventory 4,800 4,900
Required Units 20,800 21,900
Beginning Inventory 4,300 4,800
Required Production Total 16,500 17,100
3 & 4. Lens Junction Direct Materials Budget For the Two Months Ending February
January February
Silicon Solution Silicon Solution
Expected Sales 32,000 48,000 34,000 51,000
Ending inventory 9,200 9,000 12,200 12,900
Total Required 41,200 57,000 46,200 63,900
Beginning inventory 8,300 11,000 9,200 12,200
Units Required 32,900 46,000 37,000 51,700
Explanation:
a) Data and Calculations:
Sales price of lenses per unit = $44
Estimated sales of lenses in January and February respectively = 16,000 and 17,000
Direct materials for each lense:
2 pounds of silicon at $2.50 per pound = $5.00
3 oz of solution at $3.00 per ounce = $9.00
Total cost of direct materials per unit = $14
15 minutes direct labor at $18 per hour = $4.50
Desired inventory levels:
Beginning inventory of finished goods:
January 4,300
February 4,800
March 4,900
Beginning inventory of direct materials:
Silicon Solution
January 8,300 11,000
February 9,200 12,200
March 9,000 12,900
The cost of materials transferred into the Rolling Department of Keystone Steel Company is $571,100 from the Casting Department. The conversion cost for the period in the Rolling Department is $111,000 ($68,000 factory overhead applied and $43,000 direct labor). The total cost transferred to Finished Goods for the period was $669,000. The Rolling Department had a beginning inventory of $26,800.
Required:
a. On June 30, journalize the cost of transferred-in materials.
b. On June 30, journalize the conversion costs.
c. On June 30, journalize the costs transferred out to Finished Goods.
Answer:
Part a
Debit : Work in Process : Casting Department $571,100
Credit : Work In Process : Rolling Department $571,100
Being Cost of materials transferred from Casting Department to Rolling Department
Part b
Debit : Work In Process : Overheads $68,000
Debit : Work In Process : Direct Labor $43,000
Credit : Overheads $68,000
Credit : Salaries Payable $43,000
Being factory overhead applied and direct labor incurred
Part c
Debit : Finished Goods Inventory $669,000
Credit : Work in Process : Rolling Department $669,000
Being Cost transferred to Finished Goods for the period
Explanation:
Journal entries for the transactions have been prepared above.
Identify the definition for each term from the following list. 1. Payoff-matrix format. 2. Game-tree format. 3. A junction on a game tree. 4. One of the final outcomes of a game tree. 5. Divides the overall game tree into nested subgames before working backward from right to left. 6. A mini-game within the overall game. 7. The process of backward induction that relies on both firms having perfect information about the decisions made in each subgame.
Answer:
1. Payoff matrix : Strategic form
2. Game tree format : Extensive form
3. A junction on a game tree : Decision nodes
4. One of the final outcomes of a game tree : Terminal nodes
5. Divides the overall game tree into nested subgames before working backward from right to left : Backward induction
6. A mini-game within the overall game : Subgame
7. The process of backward induction that relies on both firms having perfect information about the decisions made in each subgame : Nash equilibrium.
Explanation:
Payoff matrix is the technique for decision making where goals are dependent on interaction with others. Nash equilibrium is a strategy in which every firm tries to choose best possible outcome keeping in view the decisions of other firms.
Hoyle Company owns a manufacturing plant with a fair value of $4,600,000, a recorded cost of $8,500,000, and accumulated depreciation of $3,650,000. Patterson Company owns a warehouse with a fair value of $4,400,000, a recorded cost of $6,900,000, and accumulated depreciation of $2,800,000. Hoyle and Patterson exchange assets, with Hoyle also receiving cash of $200,000 from Patterson. The exchange is considered to have commercial substance.
Required:
Record the exchange on the books of:
a. Hoyle
b. Patterson
Answer:
A. Hoyle
Dr Warehouse $4,400,000
Dr Cash $200,000
Dr Accumulated depreciation $3,650,000
Dr Loss on sale of asset $250,000
Cr Manufacturing plant $8,500,000
B. Patterson
Dr Manufacturing plant $4,600,000
Dr Accumulated depreciation $2,800,000
Cr Gain on sale of asset
$300,000
Cr Warehouse $6,900,000
Cr Cash $200,000
Explanation:
A. Preparation of the Jounal entry to Record the exchange on the books of Hoyle
Dr Warehouse $4,400,000
Dr Cash $200,000
Dr Accumulated depreciation $3,650,000
Dr Loss on sale of asset $250,000
(8,500,000-4,400,000-200,000-3,650,000)
Cr Manufacturing plant $8,500,000
B. Preparation of the Jounal entry to Record the exchange on the books of Patterson
Dr Manufacturing plant $4,600,000
Dr Accumulated depreciation $2,800,000
Cr Gain on sale of asset
$300,000
(4,600,000+2,800,000-6,900,000-200,000)
Cr Warehouse $6,900,000
Cr Cash $200,000
A company forecasts sales of $91,500 for the quarter ended December 31. Its gross profit rate is 18% of sales, and its September 30 inventory is $25,000. If the December 31 inventory is targeted at $7,500, budgeted purchases for the fourth quarter should be: (Show work on test paper or separate scanned submission.)
Answer:
Purchases= $57,530
Explanation:
Giving the following formula:
Production= 91,500*(1 - 0.18)= $75,030
Beginning inventory= $25,000
Desired ending inventory= $7,500
To calculate the budgeted purchases, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 75,030 + 7,500 - 25,000
Purchases= $57,530
Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.
t or f
Which of the following statement(s) is (are) true regarding the variance/standard deviation of a portfolio of two risky securities? I. The lower the coefficient of correlation between securities, the greater the reduction in the portfolio variance. II. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance. III. The standard deviation of the portfolio decreases at an increasing rate as more stocks are added to the portfolio
Answer:
The degree to which the portfolio variance is reduced depends on the degree of correlation between securities
Explanation:
The variance of a portfolio of 2 risky assets can be equal to zero if the association or connection between the two securities is equal to minus one likewise the investment opportunity set of 2 risky assets shows that all risk-return is an association or combinations of any portfolio of the two securities.
The variance of a portfolio of risky securities is usually said to be the weighted sum of the securities' variances and covariances.
The standard deviation of a portfolio of risky securities is commonly defined as the square root of the weighted sum of the securities' variances and covariances.
The expected return of a portfolio of risky securities is said to be a weighted average of the securities' returns.
Finance is best defined as
the tracking and documenting of money or things that are worth money.
the management of money and things that are worth money.
an item, such as a car or a house, that is worth money.
an amount of money a person or organization owes to another person or organization.
Answer:
the management of money and things that are worth money.
Explanation:
Finance is best defined as the management of money and things that are worth money.
Answer:
The answer is B
Explanation:
Refries Refrigerator Company manufactures ice-makers for installation in refrigerators. The costs per unit for 20,000 units of ice-makers, are as follows:
Direct materials. ....... $7
Direct labor.......... $12
Variable overhead ......$5
Fixed overhead............$10
Total costs ...................$34
Cool Compartments Inc. has offered to sell 20,000 ice-makers to Refrigerator Company for $28 per unit. If Refrigerator accepts Cool Compartments' offer, the facilities used to manufacture ice-makers could be used to produce water filtration units. Revenues from the sale of water filtration units are estimated at $80,000, with variable costs amounting to 60% of sales. In addition, $6 per unit of the fixed overhead associated with the manufacture of ice-makers could be eliminated. For Refrigerator Company to determine the most appropriate action to take in this situation, the total relevant costs of make vs. buy, respectively, are:____.
a. $600,000 vs. $560,000.
b. $648,000 vs. $528,000.
c. $600,000 vs. $528,000.
d. $680,000 vs. $440,000.
Answer:
c. $600,000 vs. $528,000.
Explanation:
The computation of the relevant cost of make & buy is given below:
Total relevant cost of making the product is
= (cost per unit - unavoidable fixed cost per unit ) × 20,000 units
= ($34 - $4 ) × 20,000 units
= $600,000.
And, Total relevant cost of buying is
= (cost of buy per unit × 20,000 units ) - Contribution sale of water filtration = ( $28 × 20,000 units ) - ($80,000 - 60% of $80,000)
= $528,000
hence, the option c is correct
Economists argue that the pace of economic growth: Determines the size of the population of a nation over the long term. Determines the standard of life of a nation over the long term. Determines the military capability of a nation over the long term. Determines the unemployment rate of a nation over the long term. Determines the environmental health of a nation over the long term.
Answer: Determines the standard of life of a nation over the long term.
Explanation:
Economists believe that the economic growth of a country determines the standard of living of its people over the long term which is why measures such as GDP per capita exist.
They argue that if the economy is growing, more wealth will be created for citizens to access and the higher production of goods and services will give citizens more choice on what to buy to be able to improve their standard of living.
Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, the company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of _____.
Answer:
Franchising
Explanation:
Franchising can be understood as a business model where a brand gives up the rights to use its name and operational model to the franchisee who pays royalties on the use of the brand.
This is an insertion strategy in the market that can have many added advantages, since the franchise is generally already a recognized brand with a consistent and standardized business model that helps in the operationalization of business and in attracting customers. The franchise usually offers the franchisee the training and equipment necessary for the business to be well positioned in the market, as in the case of the example, the company Tru-Shine provides training, equipment and supplies necessary for local companies to sell their products and services under the same trade name.
Which of the following best explains why resources need to be allocated in the game of economic? A) Natural resources are often found in places far from where they are used for production. B) There are always different production methods for the same goods and services. C) There are not enough resources to produce all of the good and services that everyone wants. D) If sufficent resources are not set aside for future production, scarcity cannot be eliminated. THE ANSWER IS C!!!!!!
Answer:
The best explanation for the need to allocate resources in the game of economics is that:
C) There are not enough resources to produce all of the goods and services that everyone wants.
Explanation:
In economics, it has been established that human needs are insatiable and that the resources to meet the needs are not readily and sufficiently available. This is the bedrock of Economics. It is the reason that Economics is studied as a separate course. Scarcity and needs are important concepts in human interactions. Therefore, the ability to allocate scarce resources to enable the production of goods and services is key to human development.
Scenario: Color-Me-Green Inc. Color-Me-Green Inc., a U.S.-based clothing merchant, has started doing business internationally. Having subsidiaries in several countries, the company must integrate financial information from all its subsidiaries with the U.S. home office at the end of the year. Suppose Country A has a currency called the Pulse (P). At the beginning of the year, the exchange rate between the Pulse and the U.S. dollar was P150/$. The inflation rate in Country A is running at an annual rate of 250 percent, whereas inflation in the U.S. is running at 2 percent.
Required:
What would most likely be the new exchange rate that Color-Me-Green can expect at the end of the year?
Answer:
P514.70/$
Explanation:
At the beginning the exchange rate was P150/$
The inflation is 250% in Country A and 2% in country B.
The net inflation for the two countries exchange rate will be 125%.
The new exchange rate for the Color-Me-Green will be ;
P150/$ * 125% * fisher effect inflation rate = P514.70