Answer:
receive less funding if they represent the riskiest operations of the firm
Explanation:
In simple words, the cost of capital is represented as weighted average and its represents the level or return expected by the investors and represents the level of risk of the firm on average. Therefore, managers tends to lift up or down this return depending upon the risk of the potential project to be taken.
Thus, if the average return will be applied for all projects then high risk projects will get less funding and low risk project will get excess funding.
Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. Compute the missing amounts. Operating Data Women’s Shoes Men’s Shoes Children’s Shoes Contribution margin $304,020 $ (3) $202,680 Controllable fixed costs 112,600 (4) (5) Controllable margin (1) 101,340 106,970 Sales 675,600 506,700 (6) Variable costs (2) 360,320 281,500 Prepare a responsibility report for the Women’s Shoes Division assuming (1) the data are for the month ended June 30, 2020, and (2) all data equal budget except variable costs which are $5,630 over budget. SWIFTY INC. Women’s Shoe Division Responsibility Report For the Month Ended June 30, 2020 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
Answer:
(1) Controllable margin $ 191420
(2) Variable Costs$ 371580
(3) Contribution Margin $ 146380
(4)Controllable fixed costs $45,040
(5) Controllable fixed costs $ 95710
(6) Sales $ 484,180
Explanation:
The workings have been done to show the results.
Swifty Inc.
Women’s Shoes Men’s Shoes Children’s Shoes
Sales 675,600 506,700 (6) $ 484180
Variable costs (2)$ 371580 360,320 281,500
C. Margin $304,020 $ (3)146380 $202,680
(2) Variable Costs = Sales - Contribution Margin= 675600- 304020=
$ 371580
(3) Contribution Margin= Sales - Variable Costs = 506,700-360,320 = $ 146380
(6) Sales = Contribution Margin + Variable Costs= 281,500 +$202,680 = $ 484,180
Swifty Inc.
Women’s Shoes Men’s Shoes Children’s Shoes
Sales 675,600 506,700 $ 484180
Variable costs $ 371580 360,320 281,500
C. Margin $304,020 $ 146380 $202,680
Controllable
fixed costs 112,600 (4) $45,040 (5) $ 95710
Controllable margin (1) $ 191420 101,340 106,970
(1) Controllable margin=Contribution Margin-Controllable fixed costs
= $ 304,020 -112,600 =$ 191420
(4) Contribution Margin- Controllable margin=Controllable fixed costs
$ 146380 - 101,340 = $45,040
(5) Contribution Margin- Controllable margin=Controllable fixed costs
$202,680 - 106,970 = $ 95710
hich one of the following statements is correct? Question 13 options: A longer payback period is preferred over a shorter payback period. The payback rule states that you should accept a project if the payback period is less than one year. The payback period ignores the time value of money. The payback rule is biased in favor of long-term projects. The payback period considers the timing and amount of all of a project's cash flows.
Answer:
The payback period ignores the time value of money.
Explanation:
The Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
The shorter the payback period, the more desirable a project is.
The company determines the maximum pay back period, it can be a year or more than a year of even less.
The Payback period doesn't account for the time value of money. The discounted playback period corrects for this limitation.
The Payback period method ignores cash flows after the payback period has been reached.
I hope my answer helps you
On January 4, 2019, Kiley Co. leased a building to Dodd Corp. for a ten-year term at an annual rental of $200,000. At the beginning of the lease, Kiley received $800,000 covering the first two years' rent of $400,000 and a security deposit of $400,000. This deposit will not be returned to Dodd upon expiration of the lease but will be applied to payment of rent for the last two years of the lease.What portion of the $800,000 should be shown as a current and long-term liability in Kiley's December 31, 2019 balance sheet? Current Liability Long-term Liabilitya. $0 $800,000b. $200,000 $400,000c. $400,000 $400,000d. $400,000 $200,000
Answer:
b. $200,000 $400,000
Explanation:
As it given that $800,000 received by Kiley, out of which $400,000 is the security deposit amount and remaining $400,000 represents the current year and the next year rent
So we assume $200,000 is the current year rent revenue and the other $200,000 represents the unearned rent revenue which is reflected as a current liability
And, the security amount is shown as a long term liability
The following are budgeted data:January February March Sales in units 16,600 23,200 19,600Production in units 19,600 20,600 19,300One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 25% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:
Answer:
The purchases of raw material for February are budgeted to be 20275 pounds.
Explanation:
The opening inventory of raw material in February should be equal to 25% of the production requirement for the month of February. Thus, the opening balance of raw material is,
Opening balance- Raw material = 0.25 * 20600 = 5150 pounds
Similarly, the closing inventory for raw material for the month of February should be equal to the 25% of production requirement for the month of March. Thus, the closing inventory of raw material in the month of February is,
Closing balance = 0.25 * 19300 = 4825 pounds
Purchases of raw material should be enough to produce enough units to meet February's production requirement after using the opening inventory of raw material along with having enough desired closing inventory of raw material. So, the purchases of raw material are,
Purchases = Closing inventory + Production - Opening Inventory
Purchases = 4825 + 20600 - 5150
Purchases = 20275 pounds
Whole milk is one of the joint products in a joint manufacturing process. Management is considering whether to sell the whole milk at the split-off point or to process it further into cheese. The following data have been gathered:
I. Selling price of the whole milk
II. Variable cost of processing the whole milk into cheese
III. The avoidable fixed costs of processing the whole milk into cheese
IV. The selling price of cheese
V. The joint cost of the process from which the whole milk is produced
Which of the above items are relevant in a decision of whether to sell the whole milk as is or process it further into cheese?
a. I, II, and IV
b. I, II, III, and IV
c. I, II, III, and V
d. I, III, and V
Answer:
Option (b) : I, II, III, and IV
Explanation:
As per the data given in the question,
In order to evaluate weather a product is sold at a split-off point or can be further processed, the joint processing costs that have already been obtained will have no effect on the decision because the costs and revenues that will be acquired and obtained after consideration will have to be decided whether to continue processing or not. The sunken cost is the cost of processing jointly. Therefore it will not affect the decision to process further or not.
Hence, Option (b) : I, II, III, and IV is correct answer
The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not currently being used. This truck could be sold for $14,000, after taxes, if the project is rejected. What should Black Sheep Broadcasting do to take this information into account
Answer and Explanation:
Given that
Initial investment = $20,000
Sale value of the truck = $14,000
Based on the information given, the amount of initial investment should be increased by sale value of the truck i.e $14,000 as it denotes the opportunity cost i.e to be lost not the sunk cost
Therefore, in this case the amount of the initial investment should be increased by $14,000
When a company enters a foreign market, it can use either expatriates or local nationals as their salespersons. Please compare the advantages and disadvantages between expatriates and local national salespersons. GE Nuclear Energy is a world-leading provider of advanced reactor technology and nuclear services. If GE wants to sell their nuclear reactor to a new Vietnamese nuclear power plant, should it use expatriates or local national salespersons
Answer:
Explanation:
1. Using expatriates may present the challenge of communicating the product or services in a way that appeal to the foreign market, because this expatriate may not be used to this business environment, although they may be advantageous if they alone have the specialised knowledge to sell the product.
Also, if we are to use local salespersons if they lack technical and specialized knowledge of the product it may be a problem, although local salespersons stand a better chance of understanding the local market.
2. It is best if General Electric company use expatriates to sell their nuclear reactor to a new Vietnamese nuclear power plant because this type of sales involves specialized knowledge.
You buy a seven-year bond that has a 5.75% current yield and a 5.75% coupon (paid annually). In one year, promised yields to maturity have risen to 6.75%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer :
Holding period return = 0.95%
Explanation :
As per the data given in the question,
Years of maturity = 7
Coupon rate = 5.75%
Current yield = 5.75%
Per value of bond = $1000.00
Coupon payment = Par value × Coupon rate
=1,000 ×5.75%
= $57.50
Current yield = Coupon payment ÷ price of bond
0.575 = $57.50 ÷ Price per bond
Price per bond = $1,000
In 1 year the yield to maturity increases to = 6.75%
Price of bond after 1 year = $951.96
The formula is shown below:
=-PV(RATE;NPER;PMT:FV:0)
where
Rate = 6.75%
FV = $1,000
PMT = $57.5
NPER = 7 - 1 = 6 years
Please find the attachment below:
Holding period return = (Price of bond after one year - Current bond price + Coupon payment) ÷ Current bond price
= 0.95%
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X Product Y Product Z
Units produced 1,900 2,400 3,400
Per unit sales value at split-off $17.00 $21.00 $19.00
Added processing costs per unit $2.00 $4.00 $4.00
Per unit sales value if processed further $22.00 $22.00 $27.00
The cost of the joint raw material input is $72,000.
Which of the products should be processed beyond the split-off point?
Answer:
Products X and Z
Explanation:
All of the following are the primary goals of research ethics committees, EXCEPT:
A) Protect the 'human subjects' who will participate in observational or experimental studies or whose personal information will be examined by researchers
B) Oversee research carried out on animals
C) Legally protect the researcher's institution from the liability that could occur as a result of research activities
D) Protect researchers by preventing them from engaging in activities that could cause harm
Answer: Oversee research carried out on animals
Explanation: Research ethics committees is a body responsible for the critical evaluation of research proposals to ensure that they meet the highest ethical standard.
One of their primary goals is to protect the 'human subjects' who will participate in observational studies. Their primary goal is not to look after research carried out on animals.
In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of its $1 par common stock at $47 per share.
Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.
b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.
c. On august 13, 2018, borland sold 1 million shares at $55 per share.
d. On december 15, 2018, borland sold 2 million shares at $50 per share.
Answer:
Kindly check attached picture
Explanation:
In 2018, borland semiconductors entered into the transactions described below. In 2015, borland had issued 215 million shares of its $1 par common stock at $47 per share.
Required: Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:
a. On january 2, 2018, borland reacquired 11 million shares at $45.00 per share.
b. On march 3, 2018, borland reacquired 11 million shares at $50 per share.
c. On august 13, 2018, borland sold 1 million shares at $55 per share.
d. On december 15, 2018, borland sold 2 million shares at $50 per share.
Kindly check attached picture for detailed explanation
To record the appropriate journal entry for each transaction, Borland must understand the concept of stock retirement and follow the correct accounting entries. The entries involve debiting the Treasury Stock account and crediting the Cash account. Transactions a to d are explained with the respective journal entries.
Explanation:To record the appropriate journal entry for each transaction, we need to understand the concept of stock retirement. When a company buys back its own shares, it is considered a retirement of shares. The journal entry for the retirement of shares includes debiting the Treasury Stock account and crediting the Cash account. Let's go through each transaction:
a. On January 2, 2018, Borland reacquired 11 million shares at $45.00 per share. The journal entry would be: Debit Treasury Stock for $495 million and credit Cash for $495 million.
b. On March 3, 2018, Borland reacquired 11 million shares at $50 per share. The journal entry would be: Debit Treasury Stock for $550 million and credit Cash for $550 million.
c. On August 13, 2018, Borland sold 1 million shares at $55 per share. The journal entry would be: Debit Cash for $55 million and credit Treasury Stock for $55 million.
d. On December 15, 2018, Borland sold 2 million shares at $50 per share. The journal entry would be: Debit Cash for $100 million and credit Treasury Stock for $100 million.
Learn more about Stock Retirement here:https://brainly.com/question/12875212
#SPJ12
You are implementing a new server that will connect 10 client computers to the Internet to access a company application. None of these clients has anti-virus software installed. Assume there is a 90% chance that 50% of these systems will become infected with a virus after they connect to the Internet, and this virus will bring your network down for an entire 8-hour day. Anti-virus software would cost $500 a year for the organization. Assume that the impacted employees are paid $12 an hour. What is the Exposure Factor (EF) for this risk?
Answer:
Explanation:
Within the context of the project risk management system, performing these risk analyses are two different processes. Effective risk analysis and management are the basis of any project's success.
These two methods dominate the risk analysis technique
In almost all risks and for all projects, qualitative risk analysis is performed but quantitative risk analysis is more limited and they are based on the type of project or the risk involved.
The major difference between these two methods is their approach to the process.
Qualitative risk analysis is more biased and focuses on finding the risks which will measure the occurrence of a specific risk event during the project life cycle and also its impact on the overall process.
In qualitative risk analysis, the goal is to ascertain the severity, and then those data are recorded in a risk assessment matrix or any form of an intuitive graphical report can be used and these matrices are valuable to communicate the outstanding hazards to the stakeholders.
In Qualitative risk analysis, method risk is measured in terms of low moderate-high and extreme.
Quantitative risk analysis is unbiased as it needs verified data to analyze the risk effect in terms of money, resource consumption, and any delays in schedule.
Quantitative risk analysis assigns a numerical value to an extent risk.
If risk X has a 40% chance of happening based on the quantifiable data and 15% chance of causing a delay of A number of days. Hence it is totally dependent on the quantity and accuracy of data.
Since we look into the process and approach of both the methods and when it comes to choosing any one method for handling risk and considering your example:
I can say that in terms of assessing probability and prioritizing risk in very simpler terms which is easy to understand and to implement, qualitative risk analysis is better.
This method is easier to approach as we can easily identify areas that need special attention and can be employed at any stage of the project to handle risk.
Conclusively, I believe if you need to adopt one method (for your case and in general), go for qualitative. Although both methods are similar and which one is better cannot be clearly stated. Hence both analyses should be conducted in tandem which will give us the best possible insight into the risk involved and their possible impact.
Therefore, whatever is the size or the complexity of your project you will have everything with you that is best for your organization.
Concord Corporation is planning to sell 500 boxes of ceramic tile, with production estimated at 470 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.25 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $17 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Concord has 4600 pounds of clay mix in beginning inventory and wants to have 5000 pounds in ending inventory.
What is the total amount to be budgeted for manufacturing overhead for the month?
The Heather Honey Company purchases honeycombs from beekeepers for $2.00 a pound. The company produces two main products from the honeycombs%u2014honey and beeswax. Honey is drained from the honeycombs, and then the honeycombs are melted down to form cubes of beeswax. The beeswax is sold for $1.50 a pound.
The honey can be sold in raw form for $3.00 a pound. However, some of the raw honey is used by the company to make honey drop candies. The candies are packed in a decorative container and are sold in gift and specialty shops. A container of honey drop candies sells for $4.40.
Each container of honey drop candies contains three quarters of a pound of honey. The other variable costs associated with making the candies are as follows:
Decorative container $0.40
Other ingredients 0.25
Direct labor 0.20
Variable manufacturing overhead 0.10
Total variable manufacturing cost $0.95
The monthly fixed manufacturing overhead costs associated with making the candies follow:
Master candy maker%u2019s salary $3,880
Depreciation of candy making equipment 400
Total fixed manufacturing cost $4,280
The master candy maker has no duties other than to oversee production of the honey drop candies. The candy making equipment is special-purpose equipment that was constructed specifically to make this particular candy. The equipment has no resale value and does not wear out through use.
A salesperson is paid $2,000 per month plus a commission of 5% of sales to market the honey drop candies.
The company had enjoyed robust sales of the candies for several years, but the recent entrance of a competing product into the marketplace has depressed sales of the candies. The management of the company is now wondering whether it would be more profitable to sell all of the honey rather than converting some of it into candies.
Required:
1.What is the incremental contribution margin per container from further processing the honey into candies?
2.What is the minimum number of containers of candy that must be sold each month to justify the continued processing of honey into candies?
The incremental contribution margin per container from further processing the honey into candies is $0.98.
The incremental contribution margin per container will be calculated thus:
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 / 4
= $0.98
On the other hand, the minimum number of containers of candy sold each month will be:
=($2,000 + $3,880) / $0.98
= 6,000 containers
Therefore, the minimum number of containers of candy that must be sold each month is 6000.
Read related link on:
https://brainly.com/question/14599086
Final answer:
To continue producing honey drop candies profitably, the Heather Honey Company needs an incremental contribution margin of $1.20 per container and must sell at least 8,467 containers monthly to cover fixed and variable costs.
Explanation:
The financial viability of continuing to produce honey drop candies in the face of competition, considering the incremental contribution margin per container and the minimum number of containers that must be sold to justify production. First, to calculate the incremental contribution margin per container of candy, we consider the selling price of the candies ($4.40) minus the cost of honey ($3.00 × 0.75 = $2.25) and the total variable manufacturing costs ($0.95) linked to the production of candies. This results in an incremental contribution margin of $1.20 per container. To determine the break-even point for candy production, considering both fixed and variable costs, we include the fixed manufacturing overhead ($4,280), the salary of the master candy maker ($3,880), and the salesperson's fixed compensation ($2,000). Knowing the fixed costs ($10,160) and the incremental contribution margin per container ($1.20), the Heather Honey Company must sell a minimum of 8,467 containers per month (rounded up from 8466.6667) to cover these costs and justify the continued processing of honey into candies.
On September 1, Tacht Company lent $ 82,000 to L. Kalra on a 90-day, 2% note.
1. Journalize for Tacht Company the lending of the money on September 1.
2. Journalize the collection of the principal and interest at maturity. Specify the date. Round interest to the nearest dollar.
Answer and Explanation:
The journal entries are shown below:
On Sep 1
Note receivable Dr $82,000
To Cash $82,000
(Being the lending of the money is recorded)
On Sep 1 to 90 days it is December 1
29 days in September + 31 days in October + 30 days in November
On December 1
Cash $82,410
To Interest revenue $410
To Note receivable $82,000
(Being the collection of the principal and interest at maturity is recorded)
The computation is shown below:
= $82,000 × 2% × 90 days ÷ 360 days
= $410
Renaissance Technologies (RenTech) is a good example of a hedge fund that has benefited from the ________________ to the financial sector. Select one: a. migration of low-level talent b. migration of high-level talent c. migration of entry-level MBA talent d. migration of large amount of cash
Answer:
The correct option is D) migration of high level talent
Explanation:
Renaissance Technologies (RenTech) is a good example of a hedge fund that has benefited from the migration of high level talent to the financial sector.
Known for their continued success and almost impenetrable fortress, Renaissance Technologies (RenTech) continues to thrive with a net worth of US$ 110 billion as of June 30, 2019.
Their mode of operation is uncommon and their human resource was drawn from a bunch of mathematicians and very skilled scientists.
This hedge fund specializes in systematic trading using quantitative models derived from mathematical and statistical analyses.
Their success is not unconnected with the migration of high level talent into the financial sector.
The payroll register of Heritage Co. indicates $3,900 of social security withheld and $975 of Medicare tax withheld on total salaries of $65,000 for the period. Earnings of $10,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% and the state rate of 5.4%.
Provide the journal entry to record the payroll tax expense for the period. If an amount box does not require an entry, leave it blank.
a. Payroll Tax Expense
b. Social Security Tax Payable
c. Medicare Tax Payable
d. State Unemployment Tax Payable
e. Federal Unemployment Tax Payable
Kramer Enterprises reports year-end information from 2015 as follows: Sales (160,000 units) $960,000 Cost of goods sold 640,000 Gross margin 320,000 Operating expenses 260,000 Operating income $60,000 Kramer is developing the 2016 budget. In 2016 the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 2016
Answer:
Budgeted sales for 2016 is $982,800 (145,600 units)
Cost of goods sold: $582,400
Gross margin: $400,400
Operating expenses: $260,000 (fixed cost and remained constant)
Operating income: $140,400
Explanation:
In 2015:
Selling prices = $960,000/160,000 = $6
Cost of goods sold per unit = $640,000/160,000 = $4
In 2016, the company would like to increase selling prices by 12.5%, and as a result expects a decrease in sales volume of 9%.
Selling prices = $6 x (1 + 12.5%) = $6.75
Sales volume = 160,000 x (1-9%) = 145,600 units
Total sales = 145,600 x $6.75 = $982,800
Cost of goods sold = 145,600 x $4 = $582,400
Gross margin = $982,800 - $582,400 = $400,400
Operating expenses $260,000 (fixed cost and remained constant)
Operating income = Total sales - Cost of goods sold - Operating expenses = $982,800 - $582,400 - $260,000 = $140,400
8. A company increased the selling price of its product from $1.00 to $1.10 a unit when total fixed costs increased from $400,000 to $480,000 and variable cost per unit remained unchanged. How will these changes affect the breakeven point? A. These changes will increase the breakeven point B. These changes will decrease the breakeven point C. These changes will not affect the breakeven point D. The effect cannot be determined
Answer:
C. These changes will not affect the breakeven point
Explanation:
The BEP which is the break even point is the point where the company's sales or revenue generated is equal to the cost incurred. As such, the BEP is the number of units that must be sold for the company to make neither a profit nor a loss.
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
As such, the net operating income/loss is the difference between the sales and the total costs
Let the number of units to break even be u, the variable cost per units be v
then before the increase,
u(1 - v) = 400,000
u = 400,000/(1 - v)
After the increase
u(1.1 - v) = 480,000
u = 480,000/(1.1 - v)
Assuming a random figure of $0.50 for the variable cost per unit, the units required to breakeven before the changes made
= 400000/(1-0.5)
= 800,000 units
After the changes made the units required to breakeven
= 480,000/(1.1 - 0.5)
= 480,000/0.6
= 800,000 units
Auditing standards define ________ as the magnitude of misstatements that individually, or when aggregated with other misstatements, could reasonably be expected to influence the economic decisions of users made on the basis of the financial statements.
A) fraud
B) inherent risk
C) materiality
D) significant
Coronado Industries is preparing its direct labor budget for May. Projections for the month are that 23400 units are to be produced and that direct labor time is three hours per unit. If the labor cost per hour is $12, what is the total budgeted direct labor cost for May
Answer:
$842,400
Explanation:
The direct labor cost given is a function number of hours needed to produce a unit, the number of units to product and the cost per labor hour.
The total budgeted direct labor cost is the product of these elements. Given that a unit requires 3 hours, the total number of hours required to produce 23400 units
= 23400 * 3
= 70200 hours
If the labor cost per hour is $12, the total budgeted direct labor cost for May
= 70200 * $12
= $842,400
Answer:
$842,400
Explanation:
Cost of labor which is incurred to produce a specific product is known as direct labor cost of that product. It is charged directly to the product cost as this cost is purely incurred in the production that specific product.
As per given Data
Projected units = 23,400
Hours per unit = 3 hours
Labor cost per hour = $12 per hour
Budgeted Direct labor hour = Projected units x Hours per unit x Labor cost per hour
Budgeted Direct labor hour = 23,400 units x 3 hours x $12 per hour
Budgeted Direct labor hour = $842,400
Your Competitive Intelligence team is predicting that the Baldwin Company will invest in adding capacity to their Beetle product this year. Assume Baldwin's product Beetle invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year
Answer: 13,288 units
Explanation:
I attached a table showing the production capacities since it was missing.
Since your company believes that all core products will increase capacity by the same amount, we can solve for this by,
= (1,200 + 1,450 + 1,040 + 1,050 + 100 + 1,200) * ( 1 + 0.1)
= 6,040 * 1.1
= 6,644
A tricky part of this question is that you have to remember that Baldwin can produce twice this as they could have a 2nd shift.
That means the value will become,
= 6,644 * 2
= 13,288 units
The industry can produce 13,288 units in the Core segment the next year.
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $110,000 are allocated based on the number of employees. The costs of operating departments A and B are $188,000 and $282,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows
Support Production
Departments Departments
Maintenance Personnel
Department Department A B
Budgeted costs $360,000 $110,000 $188,000 $282,000
Budgeted maintenance-hours NA 880 1230 680
Number of employees 60 NA 290 630
Using the direct method, what amount of Maintenance Department costs will be allocated to Department B?
a. $100,398
b. $128,168
c. $87,742
d. $167,330
Answer:
b. $128,168
Explanation:
Hanung Corp
Service Departments
Maintenance Department Personnel Department
Costs $360,000 $110,000
Cost Driver budgeted maintenance-hours number of employees
Budgeted
Maintenance-hours NA 880
Number of employees 60 NA
Production Departments
Department A Department B
Budgeted Costs $188,000 $282,000
Budgeted
Maintenance-hours 1230 680
Number of employees 290 630
First we find the rate by dividing the total budgeted cost of Maintenance with the budgeted maintenance hours then we multiply it with the maintenance hours of Department to B to get Department B maintenance Costs.
Using the direct method, the amount of Maintenance Department costs will be allocated to Department B
=($ 360,000/ 1230+680 )*680=($ 360,000/ 1910 )*680=$ 128167.53
= $ 128167
So choice B is the correct answer.
Walberg Associates, antique dealers, purchased goods for $38,100. Terms of the purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's warehouse was $1,500. Walberg Associates insured the shipment at a cost of $210. Prior to putting the goods up for sale, they cleaned and refurbished them at a cost of $550. Determine the cost of inventory.
Answer:
$40,360
Explanation:
Data provided
Inventory price = $38,100
Transportation cost = $1,500
Shipment insurance = $210
Cleaning and refurbishing = $550
According to the situation the computation of total cost of inventory is shown below:-
Total cost of inventory = Inventory price + Transportation cost + Shipment insurance + Cleaning and refurbishing
= $38,100 + $1,500 + $210 + $550
= $40,360
Therefore for computing the total cost of inventory we simply applied the above formula.
Final answer:
The total cost of inventory for Walberg Associates is $40,360, calculated by adding the purchase cost, transportation, insurance, and refurbishing expenses together.
Explanation:
The cost of inventory for Walberg Associates, including the purchase price, transportation, insurance, and refurbishing costs, can be calculated as follows:
Cost of goods: $38,100Transportation costs (FOB shipping point): $1,500Insurance cost for the shipment: $210Cost to clean and refurbish the goods: $550To determine the total cost of inventory, we add up these expenses:
Total Cost of Inventory = $38,100 + $1,500 + $210 + $550
Total Cost of Inventory = $40,360
Therefore, the cost of inventory that should be recorded by Walberg Associates is $40,360.
Monty Corp. receives $180,000 when it issues a $180,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments of $30,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
December 31, 2019
Dr. Cash $180,000
Cr. Mortgage Payable $180,000
December 31, 2020
Dr. Mortgage Payable $12,000
Dr. Interest Expense $18,000
Cr. Cash $30,000
December 31, 2021
Dr. Mortgage Payable $13,200
Dr. Interest Expense $16,800
Cr. Cash $30,000
Explanation:
Mortgage Loan
Installment of Mortgage loan includes the interest expense and principal value. As Cash of $180,000 received, so we need to debit the cash with this value. On the other hand there is a liability arise from this event. A mortgage payable account will be credited because it has credit nature.
First Loan Payment
Installment Payment = $30,000
Interest portion of Installment = $180,000 x 10% = $18,000
Interest portion of Installment = $30,000 - $18,000 = $12,000
First Loan Payment
Installment Payment = $30,000
Interest portion of Installment = ($180,000-12,000) x 10% = $16,800
Interest portion of Installment = $30,000 - $16,800 = $13,200
First Loan Payment
Installment Payment = $30,000
Interest portion of Installment = $180,000 x 10%
Interest portion of Installment = $18,000
Interest portion of Installment = $30,000 - $18,000
Interest portion of Installment = $12,000
Second Loan Payment
Installment Payment = $30,000
Interest portion of Installment = ($180,000-12,000) x 10%
Interest portion of Installment = $16,800
Interest portion of Installment = $30,000 - $16,800
Interest portion of Installment = $13,200
Date Account titles Debit Credit
Dec 31, 2019 Cash $180,000
Mortgage Payable $180,000
Dec 31, 2020 Mortgage Payable $12,000
Interest Expense $18,000
Cash $30,000
Dec 31, 2021 Mortgage Payable $13,200
Interest Expense $16,800
Cash $30,000
Read more about this here
brainly.com/question/16245211
The following transactions were selected from the records of OceanView Company:
July 12 Sold merchandise to Customer R, who charged the $3,500 purchase on his Visa credit card. Visa charges OceanView a 2 percent credit card fee.
15 Sold merchandise to Customer S at an invoice price of $10,500; terms 4/10, n/30.
20 Sold merchandise to Customer T at an invoice price of $5,800; terms 4/10, n/30.
23 Collected payment from Customer S from July 15 sale.
Aug. 25 Collected payment from Customer T from July 20 sale.
Required:
a. Assuming that Sales Discounts and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31.
The net sales for the OceanView Company for the two months ending August 31, after taking into account credit card and sales discounts, is $19,310.
Explanation:In order to answer the question, we first need to determine the gross sales and sales discounts. The gross sales refers to the total amount of sales before any deductions. On the other hand, sales discounts are reductions in the selling price of merchandise sold to customers, which in this case includes both the credit card discount for Customer R and the cash discounts for Customer S and T.
On July 12, OceanView sold merchandise for $3,500 to Customer R. However, as Visa charges a 2% credit card fee, the discount from this sale amounts to $70 (= $3,500 * 2%).
On July 15, the merchandise was sold to Customer S for $10,500 with terms 4/10, n/30. This means that if the invoice is paid within 10 days, a 4% discount can be taken. Given that they paid on July 23, they were within the ten-day window, and the discount amounts to $420 (= $10,500 * 4%).
On July 20, the merchandise was sold to Customer T, again totaling $5,800 and with the same terms; however, since they paid on August 25, beyond the 10-day terms, no discount applies.
To find the net sales for the period ending August 31, we sum all the sales and subtract the total sales discount. Hence, net sales is calculated as [($3,500 + $10,500 + $5,800) - ($70 + $420)] = $19,310.
Learn more about Net Sales here:https://brainly.com/question/31764949
#SPJ3
OceanView Company's net sales for the two months ended August 31st are approximately $16,230.
Assuming Sales Discounts and Credit Card Discounts are contra-revenues, here's how to compute net sales for OceanView Company for the two months ended August 31st:
Sales Revenue:
Customer S: $10,500Customer T: $5,800Credit Card Fee:
Visa charges a 2% fee on the $3,500 purchase by Customer R.Credit Card Fee = $3,500 * 2% = $70 (This is a contra-revenue deduction)Sales Discounts:
We don't have enough information to determine if either customer S or T took advantage of the 4/10 discount terms. Without knowing the payment dates, we cannot calculate potential discounts.Net Sales Calculation:Net Sales = Gross Sales Revenue - Credit Card Fee (Since Sales Discounts are unknown)Net Sales = ($10,500 + $5,800) - $70Net Sales = $16,300 - $70Net Sales = $16,230We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. $ millions in 2017 Actual 2018 Est. Net Sales $708,554 $740,439 Marketable securities 67,096 62,096 Long-term debt 346,558 308,437 Treasury stock (deducted from equity) 51,174 51,174 Cash generated by operations 57,696 Cash used for investing (14,908) Cash used for financing (54,660) Total net change in cash (11,872) Cash at beginning of period 51,141 Cash at end of period $39,269
Does forecasted cash deviate from the normal level for this company?
Answer:
The forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales). This results in a -26.59% change in the normal cash level.
Explanation:
2017 Actual 2018 Est. Net
Sales $708,554 $740,439
Marketable securities 67,096 62,096
Long-term debt 346,558 308,437
Treasury stock (deducted from equity) 51,174 51,174
Cash generated by operations 57,696
Cash used for investing (14,908)
Cash used for financing (54,660)
Total net change in cash (11,872)
Cash at beginning of period 51,141
Cash at end of period $39,269
the normal cash level for this company = $51,141 (ending cash 2017 or beginning cash 2018) / $708,554 (total sales 2017) = 7.22%
the cash level for 2018 = $39,269 (budgeted cash at end of 2018) / $740,439 (budgeted total sales 2018) = 5.3%
so the forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales)
the percent change = (5.3% - 7.22%) / 7.22% = -26.59%
Based on the provided information, it is impossible to definitively say whether the 2018 forecasted cash deviates from the normal level for Journey Company. Additional information involving 2018 estimates for cash generation and usage is necessary to carry out a thorough analysis.
Explanation:The analysis of a company's cash level involves a detailed study of its financial statements. In the Journey Company's case, we base our analysis on how the forecasted cash for 2018 deviates from the previously recorded amounts. For a start, the cash at the end of the 2017 period was $39,269 million. However, no estimated cash at the end of 2018 is provided. If we consider the cash generation and usage, the cash generated by operations in 2017 amounted to $57,696 million, while the cash used for investing and financing were $14,908 million and $54,660 million respectively. These figures ended in a total net change in cash of $-11,872 million in 2017. Nevertheless, without 2018 estimates for these cash in/out-flows, it is impossible to definitively say whether the 2018 forecasted cash deviates from the normal level without additional data. In conclusion, more information on the 2018 cash flows would be needed to make a thorough analysis on this issue.
Learn more about Financial Forecast Analysis here:https://brainly.com/question/32601263
#SPJ11
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2017 20 50 60 5 2018 21 70 80 6 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2017 as the base year, and fix the basket at 2 karaoke machine and 6 CDs.)
Answer:35.38%
Explanation: Using basket at 2 karaoke machine and 6 CDS
Value of market basket o in 2017 = ($50 * 2) + ($5 * 6) = $130
Value of market basket in 2018 = ($70 * 2) + ($6 * 6) = $176
-Using 2017 as base year
Customer Price Index in 2017 = ($130 / $130) * 100 = 100
CPI in 2018 = ($176 / $130) * 100 = 135.38
% change in overall price = 135.38- 100= 35.38%
or
Percentage change in overall price=base index- new index / base index X 100
= $176 - $130/ 130= 46/130= 0.3538 x 100 = 35.38%.
2017 Sold $1,351,700 of merchandise (that had cost $981,800) on credit, terms n/30. Wrote off $21,500 of uncollectible accounts receivable. Received $670,400 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable will be uncollectible. 2018 Sold $1,586,800 of merchandise on credit (that had cost $1,326,300), terms n/30. Wrote off $25,300 of uncollectible accounts receivable. Received $1,182,900 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Liang’s 2017 and 2018 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar amount.)
Answer and Explanation:
The Journal entry is shown below:-
1. Accounts receivable Dr, $1,351,700
To Sales revenue $1,351,700
(Being merchandise on credit is recorded)
Cost of goods sold Dr, $981,800
To Merchandise inventory $981,800
(Being cost of goods sold is recorded)
2. Allowance for Uncollectible accounts Dr, $21,500
To Accounts receivable $21,500
(Being Uncollectible accounts is receivable is recorded)
3. Cash account Dr, $670,400
To Accounts receivable $670,400
(Being cash is recorded)
4. Bad debts expenses Dr, $41,294
To Allowance for uncollectible accounts $41,294
(Being bad debt expenses is recorded)
Working Note
Accounts receivable ($1,351,700 - $21,500 - $670,400) $659,800
Required balance 3% $19,794
Add: Debit balance $21,500
Bad debt expenses $41,294
5. Accounts receivable Dr, $1,586,800
To Sales revenue $1,586,800
(Being merchandise on credit is recorded)
Cost of goods sold Dr, $1,326,300
To Merchandise inventory $1,326,300
(Being cost of goods sold is recorded)
6. Allowance for Uncollectible accounts Dr, $25,300
To Accounts receivable $25,300
(Being uncollectible accounts receivable is recorded)
7. Cash account Dr,$1,182,900
To Accounts receivable $1,182,900
(Being cash is recorded)
8. Bad debts expenses Dr, $36,658
To Allowance for uncollectible accounts $36,658
(Being bad debt expenses is recorded)
Working Note
Accounts receivable-Gross $659,800
Add: Sales $1,586,800
Less: Collections $1,182,900
Less: Amount write off $25,300
Balance $1,038,400
Required balance 3% $31,152
Allowance Balance $19,794
Less: Amount written off $25,300
Debit balance $5,506
Add: Required balance $31,152
Bad debts expenses $36,658
To record Liang’s transactions and adjustments for bad debts expense for 2017 and 2018, journal entries need to be made for sales on credit, cost of goods sold, uncollectible accounts write-offs, cash collections, and bad debt expense adjustments using the allowance method for accounts receivable.
Journal Entries for 2017 and 2018
The journal entries to record the summarized transactions and year-end adjustments for bad debts expense using the allowance method for accounts receivable for 2017 and 2018 are as follows:
2017 Transactions
Sales on Credit: Debit Accounts Receivable $1,351,700; Credit Sales $1,351,700.Cost of Goods Sold: Debit Cost of Goods Sold $981,800; Credit Inventory $981,800.Write-Off: Debit Allowance for Doubtful Accounts $21,500; Credit Accounts Receivable $21,500.Cash Collection: Debit Cash $670,400; Credit Accounts Receivable $670,400.Year-End Adjustment: To record the estimated uncollectible accounts, calculate 3% of the ending balance of accounts receivable after write-offs and cash collection, then Debit Bad Debt Expense and Credit Allowance for Doubtful Accounts by the calculated amount.2018 Transactions
Sales on Credit: Debit Accounts Receivable $1,586,800; Credit Sales $1,586,800.Cost of Goods Sold: Debit Cost of Goods Sold $1,326,300; Credit Inventory $1,326,300.Write-Off: Debit Allowance for Doubtful Accounts $25,300; Credit Accounts Receivable $25,300.Cash Collection: Debit Cash $1,182,900; Credit Accounts Receivable $1,182,900.Year-End Adjustment: Similarly, compute 3% of the ending balance of accounts receivable for 2018 and make the necessary adjustment by Debiting Bad Debt Expense and Crediting Allowance for Doubtful Accounts.Please note, the actual figures for year-end adjustment will depend on the ending balance of accounts receivable when these calculations are made. The provided examples are for illustrative purposes only.
Use the information given below to answer the questions that follow.
True Nutri Inc. sells performance enhancing foods and beverages for athletes and health-conscious people. In a recent product development meeting, Mike suggested that True Nutri Inc. should acquire a new technology developed by One Health Corp. for infusing vitamin and mineral blends into food. He believed it would be easier to acquire the technology directly from One Health Corp. Justin felt that the method of infusing blends into food should be developed within True Nutri Inc. itself. He knows it may take longer but feels that the competitive advantage it would provide was worth the wait. Lara suggested that True Nutri Inc. should use its resources and work jointly with One Health Corp. to develop an entirely new product.
Based on the scenario, which method of acquiring technology does Justin favor?Question 1 options:
1-internal development
2-licensing
3-contracted development
4-franchising
5-research partnership
Answer:
1. Internal development.
Explanation:
From the write up, Justin felt that the method of infusing blends into food should be developed within True Nutri Inc. itself. He knows it may take longer but feels that the competitive advantage it would provide was worth the wait.
Based on the scenario, Justin favors internal development as a method of acquiring technology.
Internal development describes a growth strategy that focuses on developing an organization by making use of its own resources and capabilities.
Basically, internal development helps to expand businesses, boost productivity and sales, increase efficiency etc.