Answer:
the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.
Explanation:
An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
1. Year 1 cost of goods soldunanswered
2. Year 2 cost of goods soldunanswered
3. Year 2 ending inventoryunanswered
4. Year 2 beginning inventory
Answer:
1. Year 1 cost of goods sold
2. Year 2 cost of goods sold
4. Year 2 beginning inventory
Explanation:
If year 1's ending inventory is wrong, the beginning inventory of year 2 will also be wrong (they are the same).
Cost of goods sold = cost of goods available for sale - ending inventory, so COGS for year 1 will be affected since ending inventory is wrong
Cost of goods available for sale = beginning inventory + purchases - ending inventory. Since beginning inventory year 2 is wrong, the cost of goods available for sale will also be wrong, as well as COGS
Which methods can be used to run a query? Check all that apply.
On the Create tab, in the Queries group, click Run.
In query Design view, on the Design tab, click Run.
Switch to Datasheet view before any other commands.
Close the Show Table dialog box in the Datasheet view.
On the Create tab, in the Queries group, click Create Query.
Answer:
Option B and C
Explanation:
A query can be run by selecting query option visible through deign view option. After selecting the appropriate option, the query must be run. This shall execute the function for the selected option.
Like wise in data sheet view, one can see the action query before running it.
Hence, option B and C are correct
Answer:
B) In query Design view, on the Design tab, click Run.
C) Switch to Datasheet view before any other commands.
Explanation:
Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b - d below, enter D for debit or C for credit in the first box and the amount in the second box. What is the net book value of the equipment on July 30, 2020
Answer:
The net book value of the equipment on July 30, 2020 is $24,900.
Explanation:
The net book value can be calculate using the following formula:
Net book value = Cost of the equipment - Accumulated depreciation …………………… (1)
Where:
Cost of the equipment = $49,700
Accumulated depreciation = $24,800
Substituting the values into equation (1), we have:
Net book value = $49,700 - $24,800 = $24,900
Therefore, the net book value of the equipment on July 30, 2020 is $24,900.
at the best answer for the question
The selling of goods and/or services to a customer is called
A.Service Industry
B.Food Service
C.Purchasing
D.Retail
Answer:
The correct answer is D. Retail.
Explanation:
Retail is the sale to the final consumer of goods and services. It is a sector formed by different branches (such as the food industry, the fashion industry, the home industry, etc.), which constitutes the last link in the supply chain that goes from the manufacturer to the consumer, it is In other words, it is the culmination of the process of production of goods and services, when they reach the consumer. This sale is usually carried out in stores, supermarkets, pharmacies, internet platforms and any other place where goods and services can be offered to final recipients.
Rules are formally expressed as
O a code of conduct.
consequences.
O a code of ethics.
O a conflict of interest.
what is the role of marketing?
When the accounts of Sunland Inc. are examined, the adjusting data listed below are available on December 31, the end of the annual period.
1. Interest has accrued on a $28,800, 6% note payable, issued on May 1.
2. On September 1, Rent Revenue was credited for $7,800, representing revenue from a subrental for a 6-month period beginning on that date.
3. Purchase of supplies for $2,110 during the year was recorded in the Supplies Expense account. On December 31, supplies of $540 are on hand.
Prepare the adjusting entry for each item. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 2. 3.
Prepare the reversing entry for each item where appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit
Answer:
Sunland Inc.
Adjusting Journal Entries:
Account Titles and Explanation Debit Credit
Interest Expense $1,152
Interest Payable $1,152
To record accrued interest for 8 months.
Rent Revenue $2,600
Deferred Revenue $2,600
To record deferred rent revenue for 2 months.
Supplies Expense $1,570
Supplies $1,570
To record supplies expense for the period.
Explanation:
a) Data and Calculations:
1. Interest Expense $1,152 Interest Payable $1,152 ( $28,800 * 6% * 8/12)
2. Rent Revenue $2,600 Deferred Revenue $2,600 ($7,800 * 2/6)
3. Supplies Expense $1,570 Supplies $1,570 ($2,110 - $540)
b) The above adjusting journal entries are made in order to reverse the earlier entries made. The purpose is to bring the accounts in line with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses and revenues for the period are matched and recognized whether or not cash is exchanged.
Freight Terms
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
Merchandise Freight Paid Freight Terms Returns and Allowances
(Invoice Amount) by Seller (Invoice Amount)
a. $5,100 $200 FOB destination,
1/10, n/30 $1,700
b. 3,250 400 FOB shipping point,
2/10, n/30 1,000
Answer:
A. $3,566
B. $2,605
Explanation:
Calculation to Determine the amount to be paid in full settlement of each of two invoices, (a) and (b)
A. Amount paid in full=(5,100-1,700)*(100%-1%)+200
Amount paid in full=(5,100-1,700)*99%+200
Amount paid in full=3,400*99%+200
Amount paid in full=$3,566
B. Amount paid in full=(3,250-1,000)*(100%-2%) +400
Amount paid in full=(3,250-1,000)*98% +400
Amount paid in full=2,250*98%+400
Amount paid in full=$2,605
Therefore the amount to be paid in full settlement of each of two invoices, (a) and (b) will be :
A. $3,566
B. $2,605
Which of the following will not cause the production possibility frontier to shift? Group of answer choices the introduction of "fiber optic" technology a land reclamation program an increase in the working population a reduction in unemployment an explosion destroying a chemical plant
Answer:
an increase in the working population
Explanation:
The Production possibilities frontier (PPF) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
The PPF can shift either inward or outward.
An outward shift is associated with an increase in output while an inward shift is associated with a reduction in output.
Factors that cause the PPF to shift
1. changes in technology. technological progress leads to outward shift of the PPF. introduction of "fiber optic" technology would shift the PPF outward.
2. changes in available resources. a land reclamation program would increase the land available for production and this would increase output. While an explosion destroying a chemical plant would reduce output and lead to an inward shift of the PPF
3. changes in the labour force. A decrease in unemployment would increase output and shift the the PPF outward
Working population is the number of people between 15-59.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $10,100 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that an 12% interest rate is applicable. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) How much sales revenue would Wooten recognize on January 1, 2021
Answer: $9,017.89
Explanation:
Wooten will recognize the present value of $10,100 as it is to be paid to them in a year and the company sees time value of money as a significant component.
= 10,100 * Present value interest factor, 12%, 1 period
= 10,100 * 0.89286
= $9,017.886
= $9,017.89
A large country can gain from imposing a tariff on the import of a good if: Group of answer choices the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market the tariff is high enough that the country becomes an exporter of the product. the tariff drives the quantity imported to zero. the tariff revenue collected by the domestic government is less than the losses caused by the production and consumption effects of the tariff.
Answer:
part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market
Explanation:
Tariff is a form of tax levied on imported goods. Tariffs increases the price of import. This would discourage foreign exporters because there would be less demand for their good.
Tariffs would reduce the consumption of foreign goods and this would lead to negative welfare effect on consumers. This negative welfare effect can be mitigated if the tariff paid is greater than the welfare losses
1. My boss asks me politely to do things, gives me reasons why, and invites my suggestions. 2. I am encouraged to learn skills outside of my immediate area of responsibility. 3. I am left to work without interference from my boss, but help is available if I want it. 4. I am given credit and praise when I do good work or put in the extra effort. 5. People leaving the company are given an 'exit interview' to hear their views on the organization. 6. I am incentivized to work hard and well. 7. If I want extra responsibility my boss will find a way to give it to me. 8. If I want extra training my boss will help me find how to get it or will arrange it. 9. I call my boss and my boss's boss by their first names. 10. My boss is available for me to discuss my concerns or worries or suggestions. 11. I know what the company's aims and targets are. 12. I am told how the company is performing on a regular basis. 13. I am given an opportunity to solve problems connected with my work. 14. My boss tells me what is happening in the organization. 15. I have regular meetings with my boss to discuss how I can improve and develop.
Question Completion:
Given the above scenario, which management theory is dominantly in operation?
Theory X
Theory Y
Answer:
The dominant management theory in this case is:
Theory Y.
Explanation:
Theory X: This theory presents a process-driven work situation, whereby workers follow rules that they did not contribute in making. There is a lack of individual initiative and motivation because the assumption is that the workers dislike their work and must be coerced, directed, and controlled in order to achieve organizational goals.
Theory Y: With this theory, workers are treated as the most valuable assets of the company. Employees are self-motivated and generally, there is a high sense of value placed on human esteem and self-actualization by the workers and managers. The workers do not dislike their work, and they work to achieve goal congruence between organizational and individual goals.
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $42,100 for Division A. Division B had a contribution margin ratio of 35% and its sales were $220,000. Net operating income for the company was $34,200 and traceable fixed expenses were $50,100. Corbel Corporation's common fixed expenses were:
Answer:
Common fixed costs= $34,800
Explanation:
First, we need to calculate the contribution margin for Division B:
Contribution margin Division B= slaes*contribution margin ratio
Contribution margin Division B= 220,000*0.35
Contribution margin Division B= $77,000
Now, the segmented margin for both Divisions:
Segmented margin= (42,100 + 77,000) - 50,100
Segmented margin= $69,000
Finally, the common fixed costs:
Common fixed costs= segmented margin - net income
Common fixed costs= 69,000 - 34,200
Common fixed costs= $34,800
The US Government is forecasting that the nominal risk-free rate of return on Treasury Notes maturing in 7 years is 2.5% and is expected to be constant for the foreseeable future. Apple Computer's Treasury department is considering issuing a 7 year corporate bond and they know that Apple's corporate bonds generally yield investors 100 basis points or 1% over the nominal risk free rate at the time of issuance. The bonds will be issued at par value. What is the coupon percentage and total yield expected on these new 7 year bonds?
a. 3.5%
b. 10%
c. 2.5
d. Cannot determine
Answer:
a. 3.5%
Explanation:
If the nominal interest rate of the Treasury bonds is 2.5%, and Apple's corporate bonds yield 1%, just add 2.5% + 1% = 3.5%.
when you are talking about bonds, 100 points = 1%. This many times confuses people that are not aware of this since you hear that a bond will pay 50 points more and you imagine a really high interest rate.
Answer:
A
Explanation:
n many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this? lender of last resort source of ultimate credit provider of fiduciary insurance liquidity resource bailout bank Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this? deposit guarantee banking promise deposit insurance financially distressed institution clause
Answer:
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the term for this?
The term is called:
lender of last resort.
Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. What is the term for this?
The term is called:
deposit insurance.
Explanation:
Central banks play important roles in the economy. They conduct the economy's monetary policy, regulate other banks, and provide various other financial services, including economic research. They stabilize the nation's currency by ensuring that unemployment is kept low and also prevent economic fluctuations.
Last year, Hever Inc. had sales of $500,000, based on a unit selling price of $250. The variable cost per unit was $175, and fixed costs were $75,000. The maximum sales within Hever Inc.'s relevant range are 2,500 units. Hever Inc. is considering a proposal to spend an additional $33,750 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last year. Break-even sales (dollars) Break-even sales (units) 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the income from operations for last year and (b) the maximum income from operations that could have been realized during the year. Income from operations Maximum income from operations 3. Construct a cost-volume-profit chart (on your own paper) indicating the break-even sales for the current year, assuming that a noncancelable contract is signed for the additional billboard advertising. No changes are expected in the unit selling price or other costs. Dollars Units
Answer:
1. Break-even sales (dollars) $ 250,000
Break-even sales (units) 1000
2. Income from operations $ 75,000
Maximum income from operations $ 112,500
3. Break-even sales (dollars) $ 362,500
Break-even sales (units) 1450
4. Income from operations at 2,000 units $41,250
Maximum income from operations $ 78,750
Explanation:
1. Calculation to Construct a cost-volume-profit chart , indicating the break-even sales for last year.
First step is to calculate the Contribution margin using this formula
Contribution margin = unit selling price - variable costper unit
Let plug in the formula
Contribution margin =250-175
Contribution margin = 75
Second step is to calculate the Contribution margin Ratio using this formula
Contribution margin Ratio = Contribution margin /unit selling price
Let plug in the formula
Contribution margin Ratio = 75/250
Contribution margin Ratio = 30%
Now let calculate the Break-even sales (dollars) using this formula
Break-even sales (dollars) = fixed costs /Contribution margin Ratio
Let plug in the formula
Break-even sales (dollars) = 75,000/30%
Break-even sales (dollars) = $250,000
Therefore Break-even sales (dollars) is $250,000
Calculation for Break-even sales (units) using this formula
Break-even sales (units) = fixed costs /Contribution margin
Let plug in the formula
Break-even sales (units) = 75,000/75
Break-even sales (units) = 1000
Therefore Break-even sales (units) is 1000
2a. Calculation to determine the income from operations for last year Using the cost-volume-profit chart prepared in part (1)
First step is to calculate the No of Unit sold using this formula
No of Unit sold = Sale /Sale Price
Let plug in the formula
No of Unit sold = 500000/250
No of Unit sold= 2000
Now let calculate the Income from operations for last year Using this formula
Income from operations for last year = Contribution margin*No of Unit sold - Fixed cost
Let plug in the formula
Income from operations for last year = 75*2000 - 75000
Income from operations for last year = $ 75,000
Therefore Income from operations for last year is $75,000
2b. Calculation to determine the maximum income from operations that could have been realized during the year Using the cost-volume-profit chart prepared in part (1)
Using this formula
Maximum income from operations = Contribution margin*No of Maximum Unit can be sold - Fixed cost
Let plug in the formula
Maximum income from operations = 75*2500 - 75000
Maximum income from operations = $ 112,500
Therefore Maximum income from operations is $ 112,500
3. Calculation to Construct a cost-volume-profit chart indicating the break-even sales for the current year
First step is to calculate the Contribution margin using this formula
Contribution margin = unit selling price - variable costper unit
Let plug in the formula
Contribution margin =250-175
Contribution margin = 75
Second step is to calculate the Contribution margin Ratio using this formula
Contribution margin Ratio = Contribution margin /unit selling price
Let plug in the formula
Contribution margin Ratio = 75/250
Contribution margin Ratio = 30%
Third step is to calculate the Total fixed costs
Total fixed costs = 75,000+33,750
Total fixed costs = $108,750
Now let calculate the Break-even sales (dollars) using this formula
Break-even sales (dollars) = Fixed costs /Contribution margin Ratio
Let plug in the formula
Break-even sales (dollars) = 108,750/30%
Break-even sales (dollars) =$362,500
Therefore the Break-even sales (dollars) is $362,500
Calculation for the Break-even sales (units) using this formula
Let plug in the formula
Break-even sales (units) = Fixed costs /Contribution margin
Break-even sales (units) = 108,750/75
Break-even sales (units) = 1450
Therefore the Break-even sales (units) is 1450
4a. Calculation to determine (a) the income from operations if sales total 2,000 units Using the cost-volume-profit chart prepared in part (3)
First step is to calculate the No of Unit sold Using this formula
No of Unit sold = Sale /Sale Price
Let plug in the formula
No of Unit sold = 500,000/250
No of Unit sold 2000
Now let calculate the Income from operations for last year using this formula
Income from operations for last year = Contribution margin*No of Unit sold - Fixed cost
Let plug in the formula
Income from operations for last year = 75*2000 - 108,750
Income from operations for last year = $ 41,250
Therefore Income from operations for last year is $41,250
4b. Calculation to determine (b) the maximum income from operations that could be realized during the year Using the cost-volume-profit chart prepared in part (3)
Using this formula
Maximum income from operations = Contribution margin*No of Maximum Unit can be sold - Fixed cost
Let plug in the formula
Maximum income from operations = 75*2500 -108,750
Maximum income from operations = $ 78,750
Therefore Maximum income from operations is $ 78,750
The break-even sales are the point where the total revenue is equal to total costs. The break-even sales for the current period after the calculation is $$362,500.
What do you mean by Break-even sales?Break-even sales are the amount of revenue in which the business gains zero profit. This sale price includes exactly the core fixed costs of the business, as well as all the variable costs associated with the sale.
As per the information available:
1. We will construct a cost-volume-profit chart, indicating the break-even sales for last year. The first step is to calculate the Contribution margin using this formula:
[tex]\rm\,Contribution \;margin = Unit \;Selling \; Price - Variable \; Cost \;Per \;Unit[/tex]
[tex]\rm\,Contribution\; Margin =250-175\\\\Contribution \;margin = \$75[/tex]
Next, we have to calculate the contribution margin ratio:
[tex]\rm\,Contribution \; Margin \; Ratio = \dfrac{Contribution \;Margin \;}{Unit \;Selling \;Price}\\\\[/tex]
[tex]\rm\,Contribution \;Margin\; Ratio = \dfrac{75}{250}\\\\Contribution \;Margin\; Ratio = 30\%[/tex]
Calculation of the Break-even sales (dollars) using this formula:
[tex]\rm\,Break- \;Even \;Sales \;(dollars) = \dfrac{\; Fixed \;Costs }{Contribution \;Margin \; Ratio \;}[/tex]
[tex]\rm\,Break- \;even \;sales (dollars) = \dfrac{75,000}{30\%}\\\\Break- \;even \; sales \; (dollars) = \$250,000[/tex]
Thus Break-even sales are $250,000
The calculation for Break-even sales (units) using this formula:
[tex]\rm\,Break-\,even \,sales \,(units) =\dfrac{ Fixed\, Costs}{Contribution\, margin}[/tex]
[tex]\rm\,Break-even \;Sales (units) = \dfrac{75,000}{75}\\\\Break \;-even \;Sales \;(units) = 1000[/tex]
Similarly, we can apply the same formula of the above calculation for number 3. that is to calculate the break-even sales for the current year which is equal to Break-even sales (dollars) is $362,500 and Break-even sales (units) is 1450.
2. Calculation to determine the income from operations for last year Using the cost-volume-profit chart prepared in part (1):
The number of units sold will be equal to sale divided by selling price per unit:
[tex]\dfrac{\$500,000}{\$250} = 2,000\rm\,Units[/tex]
[tex]\rm\,Income \;from\; operations\; for \;last \;year = Contribution\; margin\times No \;of \;Unit\; sold - \;Fixed\; cost[/tex]
[tex]\rm\,Income \;from\; operations \;for \;last \;year = 75\times2000 - 75000\\\\Income\; from \;operations \;for \;last \;year = \$75,000[/tex]
Similarly, By applying the same formula as above, Income from operations for the current period is equal to $112,500.
Hence, break-even sales for the last year and the current period are calculated where the break-even sales for the last year are equal to $250,000 and for the current period is equal to $362,500.
To learn more about break-even sales, refer to the link:
https://brainly.com/question/9212451
A for-profit institution that works with the general public to open and manage
savings accounts is known as a(n).
A. commercial bank
B. savings bank
C. credit union
D. investment bank
Answer:
B. savings bank
Explanation:
Savings bank is defined as a bank which helps customers or people to invest or deposit in interest giving accounts that will give a long term investment.
Savings bank were started in Europe in the 19th century. Saving banks gives interest on the deposit amount that is why its is a for-profit institution for general public. The interest saving banks give by investing in government and corporate debt.
Hence, the correct answer is "B. savings bank".
function of the HR manager is concerned with employing people who
possess the necessary skills, knowledge, and aptitude
O Procurement
Development
O Motivation and compensation
STOS DE
TREI
O Integration
Answer:
Integration.
Explanation:
Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Thus, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.
The function of the HR manager that is concerned with employing people who possess the necessary skills, knowledge, and aptitude is known as integration. This is usually achieved through a recruitment process, which typically involves advertising a vacant position and accepting applications (resumes) from applicants who meet the minimum requirements.
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:
Finished Goods $62,000
Work in Process-Spinning Department 35,000
Work in Process-Tufting Department 28,500
Materials 17,000
Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:
Jan.1 Materials purchased on account, $500,000
2 Materials requisitioned for use:
Fiber-Spinning Department, $275,000
Carpet backing-Tufting Department, $110,000
Indirect materials-Spinning Department, $46,000
Indirect materials-Tufting Department, $39,500
31 Labor used:
Direct labor-Spinning Department, $185,000
Direct labor-Tufting Department, $98,000
Indirect labor-Spinning Department, $18,500
Indirect labor-Tufting Department, $9,000
31 Depreciation charged on fixed assets:
Spinning Department, $12,500
Tufting Department, $8,500
31 Expired prepaid factory insurance:
Spinning Department, $2,000
Tufting Department, $1,000
31 Applied factory overhead:
Spinning Department, $80,000
Tufting Department, $55,000
31 Production costs transferred from Spinning Department to Tufting Department, $547,000
31 Production costs transferred from Tufting Department to Finished Goods, $807,200
31 Cost of goods sold during the period, $795,200
Required:
1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.
2. Compute the January 31 balances of the inventory accounts.*
3. Compute the January 31 balances of the factory overhead accounts.
Answer:
Port Ormond Carpet Company
1. Journal Entries:
Jan. 31 Debit Materials $500,000
Credit Accounts payable $500,000
To record the purchase of materials on account.
Jan. 31 Debit Work-in-Process - Spinning $275,000
Credit Materials $275,000
To record the materials requisitioned.
Jan. 31 Debit Work-in-Process -Tufting $110,000
Credit Materials $110,000
To record carpet backing
Jan. 2 Debit Factory Overhead - Spinning $46,000
Debit Factory Overhead - Tufting $39,500
Credit Materials $85,500
To record indirect materials used.
Jan. 31 Debit Work-in-Process - Spinning $185,000
Debit Work-in-Process - Tufting $98,000
Credit Factory Payroll $283,000
To record direct labor costs.
Jan 31: Debit Overhead - Spinning $18,500
Debit Overhead - Tufting $9,000
Credit Factory Payroll $27,500
To record indirect labor costs.
Jan. 31: Debit Factory Overhead - Spinning $12,500
Debit Factory Overhead - Tufting $8,500
Credit Factory Depreciation Expense $21,000
To record depreciation costs.
Jan. 31:
Debit Factory Overhead - Spinning $2,000
Debit Factory Overhead - Tufting $1,000
Credit Factory Insurance $3,000
To record insurance costs.
Jan. 31 Debit Work-in-Process - Spinning $80,000
Credit Factory Overhead - Spinning $80,000
To record overhead costs applied.
Jan. 31 Debit Work-in-Process - Tufting $55,000
Credit Factory Overhead $55,000
To record overhead costs applied.
Jan. 31 Debit Work-in-Process - Tufting $547,000
Credit Work-in-Process - Spinning $547,000
To record the transfer to Tufting department.
Jan. 31 Debit Finished Goods Inventory $807,200
Credit Work-in-Process- Tufting $807,200
To record the transfer to Finished Goods.
Jan. 31 Debit Cost of Goods Sold $795,200
Credit Finished Goods $795,200
To record the cost of goods sold.
2. January 31 balances of the inventory accounts:
Finished Goods = $74,000
Work-in-Process - Spinning = $28,000
Work-in-Process - Tufting = $31,300
Materials = $46,500
3. Factory Overhead Accounts Balances:
Spinning $1,000 (Debit)
Tufting $3,000 (Credit)
Explanation:
a) Data and Calculations:
January 1 Inventories:
Finished Goods = $62,000
Work in Process- Spinning = $35,000
Work in Process - Tufting = $28,500
Materials = $17,000
Finished Goods
Account Titles Debit Credit
Jan. 1 Beginning balance $62,000
Jan. 2 Work-in-Process-Tufting 807,200
Jan. 31 Cost of Goods Sold $795,200
Jan. 31 Ending balance 74,000
Work-in-Process - Spinning
Account Titles Debit Credit
Beginning balance $35,000
Jan. 2 Materials 275,000
Jan. 31 Direct labor 185,000
Applied overhead 80,000
Work-in-Process -Tufting $547,000
Jan. 31 Ending balance 28,000
Work-in-Process - Tufting
Account Titles Debit Credit
Jan. 1 Beginning balance $28,500
Jan. 2 Carpet backing 110,000
Jan. 31 Direct labor 98,000
Jan. 31 Applied overhead 55,000
Jan. 31 WIP- Spinning 547,000
Jan. 31 Finished Goods $807,200
Jan. 31 Ending balance 31,300
Cost of Goods Sold
Account Titles Debit Credit
Jan. 31 Finished Goods $795,200
Materials
Account Titles Debit Credit
Jan. 1 Beginning balance $17,000
Jan. 2 Accounts payable 500,000
Jan. 31 Work-in-Process - Spinning $275,000
Jan. 31 Work-in-Process - Spinning 46,000
Jan. 31 Factory Overhead - Tufting 39,500
Jan. 31 Factory Overhead - Tufting 110,000
Jan. 31 Ending balance 46,500
Factory Overhead - Spinning
Account Titles Debit Credit
Jan. 31 Materials - Spinning 46,000
Jan. 31 Payroll - Spinning 18,500
Jan. 31 Depreciation - Spinning 12,500
Jan. 31 Factory insurance-Spinning 2,000
Jan. 31 Work in Process 80,000
Jan. 31 Balance 1,000
Factory Overhead - Tufting
Account Titles Debit Credit
Jan. 31 Materials - Tufting 39,500
Jan. 31 Payroll - Tufting 9,000
Jan. 31 Depreciation - Tufting 8,500
Jan. 31 Factory insurance- Tufting 1,000
Jan. 31 Work in Process 55,000
Jan. 31 Balance 3,000
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced. Overhead costs of $94,500 were estimated and allocated to the following activities: Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,000
Machine setups Number of setups 21,500
Quality inspection Number of inspections 33,000
$94,500 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600 Instructions
(a) Determine the overhead rates for each activity Expected Use Estimatedof Cost Driver/Activity-Based
Activity Cost Pools Overhead Activity OH Rates
Materials Handling/ requisition
Machine Setups/setup
Quality inspections/ inspection
(b) Assign the manufacturing overhead costs for April to the two products using activity-based costing, and calculate a per unit OH cost.
Answer:
Results are below.
Explanation:
First, we need to calculate the activity rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,000 / 1,000= $40 per requisition
Machine setups= 21,500 /500= $43 per setup
Quality inspection= 33,000 / 600= $55 per inspections
Now, we can allocate overhead to each product:
Missile range instruments:
Materials handling= 40*400= $16,000
Machine setups= 43*200= $8,600
Quality inspection= 55*200= $11,000
Total allocated overhead= $35,600
Space pressure gauges:
Materials handling= 40*600= $24,000
Machine setups= 43*300= $12,900
Quality inspection= 55*400= $22,000
Total allocated overhead= $58,900
Finally, the unitary overhead cost:
Missile range instruments:
Unitary allocated overhead= 35,600/50= $712
Space pressure gauges:
Unitary allocated overhead= 58,900/300= $196.33
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because:_________
a. mortgage backed securities eliminate prepayment risk for the investor.
b. mortgage backed securities diversify credit risk for the investor.
c. mortgage backed securities offer higher yields than individual mortgages.
d. mortgage backed securities returns are tax-exempt.
Answer:
b. mortgage backed securities diversify credit risk for the investor.
Explanation:
An investor, such as a bank, may prefer to invest in securities backed by a pool of mortgages purchased in the secondary market rather than in an equal dollar amount of mortgage loans because mortgage backed securities diversify credit risk for the investor.
In Mortgage Backed Securities, credit risk is diversified as there are many borrowers and investors between whom credit risk diversifies. So that makes investor such as bank prefer the option.
Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for:_____.
• Total manufacturing costs, $8,450,000 • Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2017, $390,000 • Cost of finished goods manufactured, $8,020,000
Requirements:
1. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in and (b) cost of direct materials used in .
2. Calculate the ending work-in-process inventory on December 31, 2011.
Answer:
Results are below.
Explanation:
Giving the following information:
Total manufacturing costs, $8,450,000
Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)
Work-in-process inventory on January 1, 2017, $390,000
Cost of finished goods manufactured, $8,020,000
First, we need to calculate the direct material and direct labor:
Direct labor= Manufacturing overhead allocated/2.5
Direct labor= 3,375,000 / 2.5
Direct labor= $1,350,000
Total manufacturing costs= Direct material + direct labor + allocated overhead
8,450,000= Direct material + 1,350,000 + 3,375,000
Direct material= $3,725,000
Finally, the ending work-in-process:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
8,020,000= 390,000 + 8,450,000 - Ending WIP
Ending WIP= $820,000
A sales clerk at Schackne Company correctly prepared a sales invoice for $5,200, but the invoice was entered as $2,500 in the sales journal and similarly posted to the general ledger and accounts receivable ledger. The customer remitted only $2,500, the amount on his or her monthly statement. The most effective procedure for preventing this type of error is to:
Answer: Use predetermined totals to control posting routines
Explanation:
Based on the information given in the question, the most effective procedure for preventing this type of error is to use the predetermined total to control the posting routines.
The sales clerk should generate the control total do that the transactions can be posted. This will then be compared with the items posted to individual accounts.
Pls help me with the graph , the choices are below
the answer to your question is graph 1
Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is:
Answer:
Tan Furniture Manufacturing Company
Peggy's gross income from the above is:
= $3,000.
Explanation:
a) Data and Calculations:
Retail price of the furniture = $12,500
Discounted price for employees = $9,500
Gross income received by Peggy = $3,000 ($12,500 - $9,500)
b) The gross income represents the total amount of benefit derived by Peggy by purchasing the furniture from Tan Furniture Manufacturing Company instead of from another manufacturer.
Which of the following is an example of frictional unemployment? A former mayor doing volunteer work A former mayor doing volunteer work A factory worker who loses her job because of recession A factory worker who loses her job because of recession A college student working part-time at the campus bookstore A college student working part-time at the campus bookstore A college graduate interviewing for two available positions A college graduate interviewing for two available positions An architect whose job is replaced by computer software that designs buildings
Answer:
A college graduate interviewing for two available positions
Explanation:
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
An architect whose job is replaced by computer software that designs buildings is an example of structural unemployment. Structural unemployment i is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
A factory worker who loses her job because of recession is an example of cyclical recession. Cyclical unemployment occurs as a result of fluctuations in the economy.
A non-current asset was depreciated at the end of the first year of ownership using the straight-line method based on the following information. Cost $20 000 Working life 4 years Residual value $4000 It was then found that the reducing balance method at 30% per annum should have been used. What was the effect on the profit for the year of correcting this error?
A Decrease by $2000
B Increase by $2000
C Decrease by $6000
D Increase by $6000
Answer:
Correcting the error, the residual value of the product would increase by $802.
Explanation:
Since a non-current asset was depreciated at the end of the first year of ownership using the straight-line method based on the following information: Cost $ 20,000 Working life 4 years Residual value $ 4000; and it was then found that the reducing balance method at 30% per annum should have been used, to determine what was the effect on the profit for the year of correcting this error the following calculation should be performed:
100 - 30 = 70
Year 0: 20,000
Year 1: 20,000 x 0.7 = 14,000
Year 2: 14,000 x 0.7 = 9,800
Year 3: 9,800 x 0.7 = 6,860
Year 4: 6,860 x 0.7 = 4,802
Thus, correcting this error, the residual value of the product would increase by $ 802.
The two main sources of stockholders' equity are Question 4 options: investments by stockholders and net income retained in the business investments by stockholders and dividends paid net income retained in the business and dividends paid investments by stockholders and purchases of assets
Answer:
investments by stockholders and net income retained in the business.
Explanation:
Retained earnings also known as accumulated earnings, can be defined as the total amount of net income held by a corporation for its future use after paying out dividends to its shareholders.
The retained earnings statement refers to a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
The main purpose of preparing a retained earnings statement is to boost investor's confidence and improve market value.
Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.
Retained earnings represents the total stockholders' equity reinvested back into the company.
This ultimately implies that, Retained Earnings statement refers to the changes in the retained earnings account of an organization or business firm, which occurred during the accounting period and typically comprises of net income arising from the income statement.
Thus, the Retained Earnings statement is based upon;
Retained Earnings + Net Income – Dividends.
Retained Earnings statement can be defined as a financial statement that enumerate changes in retained earnings for an organization over a specific period of time. The retained earnings statement is the statement of owner's equity that outlines details of changes in the amount of retained earnings (profits) over a specified period in an organization.
Hence, the two main sources of stockholders' equity are investments by stockholders and net income retained in the business.
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20% Lease payments = 0.6 million Times-interest-earned (TIE) ratio is 6.55 Principal payments = 4 million What is the company's EBIT? The company's interest expense? Select one: a. $8.0 million; $1.22 million b. $7.5 million; $0.75 million c. $8.0 million; $0.62 million d. $1.35 million; $0.37 million e. $3.33 million; $0.83 million
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million