Answer:
Results are below.
Explanation:
Giving the following information:
Jan. 1 Beginning inventory 48 $40 $1,920
Apr. 7 Purchase 128 42 5,376
Jul. 16 Purchase 198 45 8,910
Oct. 6 Purchase 108 46 4,968
For the entire year, the company sells 427 units of inventory for $58 each.
Ending inventory units= 482 - 427= 55
1)
Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units remaining in inventory.
Ending inventory= 55*46= $2,530
COGS= 48*40 + 128*42 + 198*45 + 53*46= $18,644
Revenue= 427*58= $24,766
Gross profit= 24,766 - 18,644= $6,122
2)
Under the LIFO (last-in, first-out) method, the ending inventory is calculated using the cost of the firsts units remaining in inventory.
Ending inventory= 48*40 + 7*42= $2,214
COGS= 108*46 + 198*45 + 121*42= $18,960
Revenue= 427*58= $24,766
Gross profit= 24,766 - 18,960= $5,806
3)
First, we need to calculate the weighted-average cost:
weighted-average cost= (40 + 42 + 45 + 46) / 4= $43.25
Ending inventory= 55*43.25= $2,378.75
COGS= 427*43.25= $18,467.75
Revenue= 427*58= $24,766
Gross profit= 24,766 - 18,467.75= $6,298.25
H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Answer:
The journal entry for J. Laney to record this transaction is
Dr legal expenses $12,990
______Cr Common stock $3,100
_______Cr Share premium $8,990
Explanation:
The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.
Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.
Share premium = ($3.90 - $1) × 3,100
Share premium = $8,990
Labor unions are organizations of employees formed to protect and advance their members' interests by bargaining with management over job-related issues.
a. True
b. False
Answer:
I think that the correct answer is True
What is the amount of interest deduction allowed for the current year, assuming Marge Meyer incurred the following (assume no net investment income):Interest on loan used to purchase land for investment $18,000Interest on loan used to purchase personal residence $6,000Interest on loan used to purchase boat $500Interest on loan to purchase 100 shares of General Auto $3,000
Answer:
Marge Meyer
The amount of interest which Marge can deduct for the current year is:
= $27,000.
Explanation:
a) According to the IRS, the following categories of interest payments, incurred by Marge Meyer, are tax-deductible:
Interest on loan used to purchase personal residence $6,000
Interest on loan used to purchase land for investment $18,000
Interest on loan to purchase 100 shares of General Auto $3,000
Total deductible interest expenses = $27,000
b) Note that interests for outstanding student loans are still tax-deductible. However, interests for personal credit card, auto loan, and other personal consumer finance are not tax-deductible.
Enter the following cash payments transactions in a general journal: Sept. 5 Issued Check No. 318 to Clinton Corp. for merchandise purchased August 28, $6,300, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to Martin Company for merchandise purchased September 2, $7,500, terms 1/10, n/30. A credit memo had been received on September 8 from Martin Company for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Expert Systems for merchandise purchased August 20, $3,900, terms n/30. 27 Issued Check No. 321 to Dynamic Data for merchandise purchased September 17, $9,000, terms 2/10, n/30. Payment is made within the discount period g
Answer:
Cash Payments Transactions
General Journal
Sept. 5: Debit Accounts payable (Clinton Corp.) $6,300
Credit Cash $6,174
Credit Cash Discounts $126
To record the payment, via Check No. 318 for full settlement, including discount.
Sept. 12: Debit Accounts payable (Martin Company) $7,000
Credit Cash $6,930
Credit Cash Discounts $70
To record the payment on account, via Check No. 319, including discount.
Sept. 19: Debit Accounts payable (Expert Systems) $3,900
Credit Cash $3,900
To record payment on account.
Sept. 27 Debit Accounts payable (Dynamic Data) $9,000
Credit Cash $8,820
Credit Cash Discounts $180
To record payment on account, including discount.
Explanation:
a) Data and Analysis:
Sept. 5: Accounts payable (Clinton Corp.) $6,300 Cash $6,174 Cash Discounts $126 Check No. 318
Sept. 12: Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Check No. 319
Sept. 19: Accounts payable (Expert Systems) $3,900 Cash $3,900
Sept. 27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180
On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,200,000 of 8-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $6,836,187. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
Year 1 July 1 Cash 309.236
Discount on Bonds Payable 3,690,764
Bonds Payable 46,000,000
2. Journalize the entries to record the following:
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
3. Determine the total interest expense for Year 1.
Answer:
Livingston Corporation
1.
Year 1 July 1
Debit Cash $6,836,187
Debit Discount on Bonds Payable $363,813
Credit Bonds Payable $7,200,000
To record bonds proceeds and liability.
2.
A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
December 31, Year 1:
Debit Interest Expense $418,738
Credit Bond Discounts $22,738
Credit Cash $396,000
To record interest expense for the first six months and the amortization of bond discounts.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method.
December 31, Year 1:
Debit Interest Expense $411,021
Credit Bond Discounts $15,021
Credit Cash $396,000
To record interest expense for the second six months and the amortization of bond discounts.
3. Determine the total interest expense for Year 1.
Total interest expense for Year 1:
Straight- Effective
Line Method Interest Method
December 31, Year 1 $418,738 $410,171 ($6,836,187 * 6%)
= Cash payment + Semi-annual
Amortization of bonds discount
= ($396,000 + $22,738)
Explanation:
a) Data and Calculations:
Face value of bonds issued = $7,200,0
Cash received = $6,836,187
Total bonds discount = $363,813 ($7,200,000 - $6,836,187)
Period of bonds = 8 years
Interest rate of bonds = 11%
Effective interest rate = 12%
Semi-annual cash payment = $396,000 ($7,200,000 * 11% * 6/12)
First interest expense on December 31 Year 1 = $410,171 ($6,836,187 * 12% * 6/12)
Amortization of bond discount for the first six months = $14,171 ($410,171 - $396,000)
Bond balance after the first six months = $6,850,358 ($6,836,187 + $14,171)
Second interest expense on June 30, Year 2 = $411,021 ($6,850,358 * 6%)
Amortization of bond discount for the second six months (June 30, Year 2) = $15,021 ($411,021 - $396,000)
Bond balance on June 30, Year 2 = $6,865,379 ($6,850,358 + $15,021)
Straight-line method amortization:
Semi-annual amortization of bond discount = $22,738 ($363,813/16)
Interest expense = $396,000
Logan, a 50% shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $116,000 tax loss for the year, Logan's tax basis in his MG stock was $158,000 at the beginning of the year, and he received $83,000 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?
Answer:
$13,920
Explanation:
Calculation to determine how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation
First step is to calculate what Logan's pay, if MG is a C corporation
Logan's pay, if MG is a C corporation =($83,000*24%)
Logan's pay, if MG is a C corporation = $19,920
Second step is to calculate Logan's pay, if MG is a S Corporation
Logan's pay, if MG is a S Corporation =[($83,000-$58,000)*24%]
($116,000*50% = $58,000)
Logan's pay, if MG is a S Corporation=$6,000
Now let calculate how much more tax will Logan pay currently
Logan pay currently = ($19,920-$6,000)
Logan pay currently = $13,920
Therefore how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation will be $13,920
You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.
Required:
a. Calculate your expected dollar cost of buying $F5,000 if you choose to hedge by a call option on SF.
b. Calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract.
c. At what future spot exchange rate will you be indifferent between the forward and option market hedges?
d. Illustrate the future dollar cost of meeting the SF payable against the future spot exchange rate under both the options and forward market hedges.
Answer:
A. 3403.75 dollars
B. 3150
C. 0.579
D. Is an attachment
Explanation:
A. We first find the premium cost
= 0.05x5000 x 1+0.06/4
= 250x1.015
= 253.75
From here we find expected dollar cost
= Exchange rate x units + premium
= 0.63x5000+253.75
= 3,403.75 dollars
B. Forward rate = 0.63
Total cost of dollar
= 0.63x5000
= 3150
C. The investor would be indifferent at 0.579
Forward rate = unit * future + premium
3150 = 5000 * future + 253.75
3150-253.75 = 5000*future
We solve and divide through by 5000
Future = 0.579
D is in the attachment
The expected dollar cost of buying $F5,000 through the call option is $3403.75.
The first thing to do is to calculate the premium cost. This will be:
= (5% × 5000) × (1 + 6%/4)
= (0.05 × 5000) × (1 + 0.06/4)
= 250 × 1.015
= 253.75
The expected dollar cost will be:
= Exchange rate × Number of units + Call premium cost
= 0.63 × 5000 + 253.75
= 3403.75
The future dollar cost of meeting this SF obligation will be calculated thus:
= Forward rate × Number of units
= 0.63 × 5000
= $3150
The future spot exchange rate that the person will be indifferent will be:
= (3150 - 253.75) / 5000
= $0.579
Learn more about call option on:
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Carlos transfers property with a tax basis of $750 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $975 and $75 cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Answer:
$975
Explanation:
Use the following formula to calculate the Corporation's Tax basis in the property received in exchange
Corporation's Tax basis = Tax basis of Property transferred + Gain recognized
Where
Tax basis of Property transferred = $750
Gain recognized = 975 - $750 = $225
Placing values in the formula
Corporation's Tax basis = $750 + $225
Corporation's Tax basis = $975
Pilgrim Industries scheduled its annual sales meeting at Celestial City Resort from January 5-10. In addition to meeting and hotel rooms, the resort was to provide an ice-skating pond for the Pilgrim's annual employee hockey game. In the weeks before the meeting, the resort is hit with its worst heat wave on record. Although hotel and meeting rooms are available, there is no possibility of ice skating at the site. If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:
Answer:
If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:
Frustration of Purpose.
Explanation:
The doctrine of Frustration of Purpose occurs when there is a change of circumstances that is not the fault of either Pilgrim Industries or Celestial City Resort. Since these two parties did not cause the circumstances that made it legally, physically, or commercially impossible to fulfil the contract, the contract can be discharged by the court based on this doctrine. It is also known as Force Majeure.
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin Company receiving cash of $9,594,415.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond.
b. Determine the amount of the bond interest expense for the first year.
$
c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000.?
Answer:
Chin Company
Journal Entries
1. Issuance of the bonds:
Debit Cash $9,594,415
Debit Bond Discounts $405,585
Credit Bonds Liability $10,000,000
To record the issuance of the bonds at a discount.
2. June 30:
Debit Bond Interest Expense $383,777
Credit Cash $350,000
Credit Amortization of Bond Discount $33,777
To record the first interest payment and amortization of bond discount.
3. December 31:
Debit Bond Interest Expense $385,128
Credit Cash $350,000
Credit Amortization of Bond Discount $35,128
To record the second interest payment and amortization of bond discount.
b. The amount of the bond interest expense for the first year:
June 30: Bonds' Interest expense = $383,777
Dec. 31: Bonds' Interest expense = $385,128
Total bond interest expense for the first year = $768,905
c. Chin Company was able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000 because the bonds were issued at a discount and not face value. Bonds can be issued at face value, discount, or premium, depending on the prevailing investor's sentiments and the attractiveness of the bonds to investors.
Explanation:
a) Data and Calculations
Face value of bonds = $10 million
Discounted value (Cash receipt) = $9,594,415
Total amount of discount = $405,585
Bond's interest rate = 7%
Market yield = 8%
Bond maturity period = 5 years
Payment period = semiannually
Issuance of the bonds:
Cash $9,594,415 Bond Discounts $405,585 Bonds Liability $10,000,000
June 30:
Cash payment for interest = $350,000 ($10,000,000 * 3.5%)
Bonds' Interest expense = $383,777 ($9,594,415 * 4%)
Amortization of bond discount = $33,777 ($383,777 - $350,000)
Bond book value = $9,628,192 ($9,594,415 + $33,777)
December 31:
Cash payment for interest = $350,000 ($10,000,000 * 3.5%)
Bonds' Interest expense = $385,128 ($9,628,192 * 4%)
Amortization of bond discount = $35,128 ( $385,128 - $350,000)
Bond book value = $9,663,410 ($9,628,192 + $35,218)
Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $16,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $11,100 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows:
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600
1. If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product P?
a. $163.50
b. $144.00
c. $138.15
d. $117.15
2. If Smelly changes its overhead allocation to departmental rates, what is the product cost per case for Product P assuming Departments C and D use direct labor hours and machine hours as their respective allocation bases?
a. $117.15
b. $163.50
c. $131.50
d. $138.15
Answer:
Smelly Perfume Company
1. a. $117.15
2. $115.95
Explanation:
a) Data and Calculations:
J P X Total
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$170.00 $124.50 $74.00
Direct labor hours per unit 4 3 2
Total direct labor hours 1,200 1,500 1,200 3,900
Machine hours per unit 4 2 3
Total machine hours 1,200 1,000 1,800 4,000
Number of cases (per year) 300 500 600
Department C D Total
Traceable overheads $16,200 $11,100 $27,300
Product costs (machine hours):
Predetermined overhead rate based on machine hours = $6.825 ($27,200/4,000) per machine hour
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead (machine hour) 27.30 13.65 20.48
$169.30 $117.15 $80.48
Product costs (departmental overhead rates):
Departmental overhead rates per hour:
Department C $4.15 ($16,200/3,900) per labor hour
Department D $2.78 ($11,100/4,000) per machine hour
J P X
Direct materials $100.00 $ 72.00 $48.00
Direct labor 42.00 31.50 12.00
Overhead 16.60 12.45 8.34
$158.60 $115.95 $68.34
Sales and Production Budgets Ultimate Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June. U500 S1000 Estimated inventory (units), June 1 25,000 10,000 Desired inventory (units), June 30 30,000 15,000 Expected sales volume (units): Northeast Region 140,000 100,000 Southwest Region 160,000 125,000 Unit sales price $45 $80 a. Prepare a sales budget. Enter all amounts as positive numbers.
Answer:
Part a
Ultimate Audio Company
Sales Budget
For the Month Ending June 30
Product and Area Unit Sales Volume Unit Selling Price Total Sales
Model U500 :
Northeast Region 140,000 $45 $6,300,000
Southwest Region 160,000 $45 $7,200,000
Total $13,500,000
Model U500 :
Northeast Region 100,000 $80 $8,000,000
Southwest Region 125,000 $80 $10,000,000
Total $18,000,000
Total Revenue from Sales $31,500,000
Part b
Ultimate Audio Company
Production Budget
For the Month Ending June 30
Model U500 Model S1000
Expected Units to be Sold 300,000 225,000
Add Desired Closing Inventory 30,000 15,000
Total 330,000 240,000
Less Desired Opening Inventory (25,000) (10,000)
Total Production 305,000 230,000
Explanation:
Note : I have attached the complete question as images below !
A Sales Budget shows the Total Expected Revenue from sale of budgeted units.
Total Revenue = Total Expected Units Sales x Selling Price Per Unit
A Production Budget shows the number of units to be produced to meet the Sales and Inventory targets
Total Production = Expected Sales + Desired Closing Inventory - Desired Opening Inventory
Luther Industries has no debt and expects to generate free cash flows of $48 million each year. Luther believes that if it permanently increases its level of debt to $100 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As a result, Luther's expected free cash flows with debt will be only $44 million per year. Suppose Luther's tax rate is 40%, the risk-free rate is 6%, the expected return of the market is 14%, and the beta of Luther's free cash flows is 1.25 (with or without leverage). The value of Luther with leverage is closest to:_______.
A) 11.5%.
B) 10.8%.
C) 9.8%.
D) 13.0%.
Answer: $315 million
Explanation:
First find the cost of capital as a required rate of return using CAPM:
= Risk free rate + Beta * (Market return - Risk free rate)
= 6% + 1.25 *(14% - 6%)
= 16%
Value of Luther with leverage:
= (Cash flows with debt / required return) + (Debt * Tax)
= (44 million / 16%) + (100 million * 40%)
= $315 million
Options do not represent value.
what is marketing strategies
Answer:
A marketing strategy refers to a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services :)
Explanation:
In other words!
It refers to a business's overall game plan for getting more costumers and more money with the work of their products and services.
Preston Corp. is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sells for $1,100. The firm could sell, at par, $100 preferred stock which pays a 6.07 percent annual dividend, but flotation costs of 5 percent would be incurred. Preston's beta is 1.2, the risk-free rate is 3 percent, and the market risk premium is 5 percent. The firm's marginal tax rate is 40 percent. What is Preston's WACC
Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.25 per share at the end of 2019. The dividend is expected to grow at 15% per year for 3 years, after which time it is expected to grow at a constant rate of 6% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the company's stock today (December 31, 2019)
Answer:
Value of stock = $47.99
Explanation:
The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
Year Present Value
1 1.25× 1.15^1 × 1.095^(-1) =1.31
2 1.25× 1.15^2 × 1.095^(-2) = 1.38
3. 1.25× 1.15^3 × 1.095^(-3)= 1.45
Present value of Dividend in Year 4 and beyond
This will be done in two steps
Step 1
PV in year 3 terms
= Dividend in year 4× (1.06)/(0.095-0.06)
1.25× 1.15^3 × 1.06/(0.095-0.06)=57.57
PV in year 0 terms =
PV in year 3 × 1.095^(-3)
=57.5759 × 1.095^(-3)= 43.852
Value of stock = 1.3 + 1.38 + 1.45 + 43.852= $47.99
Value of stock = $47.99
Jerryworld, Inc., is looking at setting up a new manufacturing plant in Dallas to produce footballs. The company bought some land six years ago for $5.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $10.4 million to build, and the site requires $840,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Answer:
the proper cash flow amount to use as the initial investment in fixed assets is $15,840,000
Explanation:
The computation of the proper cash flow amount to use as the initial investment in fixed assets is shown below:
= (Net amount + cost of the plant + grading cost)
= ($4.6 million + $10.4 million + $0.84 million )
= $15,840,000
Hence, the proper cash flow amount to use as the initial investment in fixed assets is $15,840,000
Garcia Co. sells snowboards. Each snowboard requires direct materials of $113, direct labor of $43, and variable overhead of $58. The company expects fixed overhead costs of $661,000 and fixed selling and administrative costs of $130,000 for the next year. It expects to produce and sell 11,300 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost
Answer:
See
Explanation:
Total cost of 11,300 snow balls
Per unit total =
Direct material = $113 × 100
Direct labor = $43 × 262.79
Variable overhead = $58 × 194.82
Fixed overhead = $661,000
Total cost of 11,300 snow balls $2,700,000
Cost of 1 snow ball = Total cost of 11,300 snow balls / Total number of snowballs
Unimart Precision Manufacturing
Beginning inventory
Merchandise $275,000
Finished goods $450,000
Cost of purchases 500,000
Cost of goods manufactured 900,000
Ending inventory
Merchandise 115,000
Finished goods 375,000
Required:
Compute cost of goods sold for each of these two companies for the year.
Answer:
Cost of goods sold for each of these two companies for the year :
Unimart = $660,000
Precision Manufacturing = $975,000
Explanation:
Note : I have attached the full question as image below.
Unimart
Beginning Merchandise Inventory $275,000
Add Purchases $500,000
Less Ending Merchandise Inventory ($115,000)
Cost of Goods Sold $660,000
Precision Manufacturing
Beginning Finished Goods Inventory $450,000
Add Cost of Goods Manufactured $900,000
Less Ending Finished Goods Inventory ($375,000)
Cost of Goods Sold $975,000
The fractional reserve system of banking started when goldsmiths began: Select one: a. Accepting deposits of gold for safe storage b. Charging people who deposited their gold c. Using deposited gold to produce products for sale to others d. Issuing paper receipts in excess of the amount of gold held
Answer:
d. Issuing paper receipts in excess of the amount of gold held.
Explanation:
Fractional-reserve banking is practiced by all commercial banks. Such banks involve banks that accept deposits from various customers and make loans to other borrowers while keeping an amount in reserve that is equal to a part of the deposit liabilities of the bank.
The fractional reserve system of banking started when goldsmiths began issuing paper receipts in excess of the amount of gold held.
Option d. is correct.
Crane Company offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $30). The price paid for 700, $1,000 bonds with the warrants attached was $810000. The market price of the Crane bonds without the warrants was $710000, and the market price of the warrants without the bonds was $71800. What amount should be allocated to the warrants
Answer:
$ 74,389.87
Explanation:
It is given that :
The cost of 700, $1000 bonds with warrant attached to the bond = $810,000
The cost of Crane bonds with warrant = $710,000
The cost of market price of the warrants without bonds = $71,800
Therefore, the amount should be allocated to the warrants :
[tex]$=\frac{\$71,800}{\$71,800+\$710,000}\times \$ 810,000$[/tex]
[tex]$=\frac{\$71,800}{\$781,800}\times \$ 810,000$[/tex]
= $ 74,389.87
There is a justification of management interference in economies . Explain how it can
intervene while narrating the supporter’s view?
Answer:Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. In inefficient markets that is not the case; some may have too much of a resource while others do not have enough. Inefficiency can take many different forms. The government tries to combat these inequities through regulation, taxation, and subsidies. Most governments have any combination of four different objectives when they intervene in the market.
Maximizing Social Welfare
In an unregulated inefficient market, cartels and other types of organizations can wield monopolistic power, raising entry costs and limiting the development of infrastructure. Without regulation, businesses can produce negative externalities without consequence. This all leads to diminished resources, stifled innovation, and minimized trade and its corresponding benefits. Government intervention through regulation can directly address these issues.
Another example of intervention to promote social welfare involves public goods. Certain depletable goods, like public parks, aren’t owned by an individual. This means that no price is assigned to the use of that good and everyone can use it. As a result, it is very easy for these assets to be depleted. Governments intervene to ensure those resources are not depleted.
Macro-Economic Factors
Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents.
Socio-Economic Factors
Governments may also intervene in markets to promote general economic fairness. Government often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. Other examples of market intervention for socio-economic reasons include employment laws to protect certain segments of the population and the regulation of the manufacture of certain products to ensure the health and well-being of consumers.
Explanation:
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Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2021 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year.
Required:
Prepare journal entries to record the write-off of receivables, the collection of Sl,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense.
Answer and Explanation:
The journal entries are shown below:
Allowance for uncollectible accounts $21,000
To Account receivable $21,000
(being written off is recorded)
Account receivable Dr $1,200
To Allowance for uncollectible accounts $1,200
(Being written back of receivable is recorded)
Cash Dr $1,200
To Account receivable $1,200
(being cash received is recorded)
Bad debt expense $50,300 ($32,000 - $21,000 + $1,200 - $625,000 × 0.10)
To Allowance for uncollectible accounts $50,300
(being the bad debt expense is recorded)
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for
local, state, or federal governments.
nonprofit organizations that use unions.
companies that use self-employed contractors.
private companies and businesses.
HELP PLEASE
Answer:
A.) local, state, or federal governments.
Explanation:
Workers in Transportation and Logistics careers who believe in the benefits of a union are most likely to work for local, state, or federal governments. Thus, option A is correct.
What is Transportation?Transportation, the development of merchandise and people from one spot to another, and the different means by which such development is achieved.
Laborers in Transportation and Logistics vocations who have confidence in the advantages of an association are probably going to work for it. not-for-profit associations that utilize associations.
Laborers in operations vocations who put stock in the advantages of an association are probably going to work for neighborhood, state, or central legislatures.
Union have better work well-being securities and preferred paid leave over non-association laborers, and are safer practicing their freedoms in the workplace.
Therefore, option A is correct.
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Brief Exercise 15-02 During January, its first month of operations, Coronado Company accumulates the following manufacturing costs: raw materials $4,400 on account, factory labor $6,200 of which $5,800 relates to factory wages payable and $400 relates to payroll taxes payable, and factory utilities payable $2,100. Prepare separate journal entries for each type of manufacturing cost.
Answer:
Item 1
Debit : Raw Materials $4,400
Credit : Accounts Payable $4,400
Item 2
Debit : Work in Process : Factory wages ($5,800 + $400) $6,200
Credit : Wages Payable $6,200
Item 3
Debit : Work In Process : Factory Utilities $2,100
Credit : Utilities Payable $2,100
Explanation:
If there is no immediate payment of cash for the expenses incurred, raise a liability - Accounts Payable otherwise recognize a Cash Outflow.
All manufacturing costs incurred are accounted for in the Work In Process Account.
Journal entries for each type of manufacturing cost have been prepared above.
10. Identical wages
Which of the following is required for all workers to earn identical wages in the long run? Check all that apply.
All workers are protected by a union.
Workers can move from one labor market to another at zero cost.
All workers have equal ability and can be trained to do different types of employment at minimum cost.
All workers must have a bachelor's degree.
Answer:
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Explanation:
The economy of the United States can be best described as
a) a mixed economy
b) a command economy
c) a mixed economy, but predominantly command and tradition
d)
a pure free marker
Answer:
A a mixed economy.
Explanation:
The asnswer is a mixed economy
ob 412 was one of the many jobs started and completed during the year. The job required $9,700 in direct materials and 45 hours of direct labor time at a total direct labor cost of $10,600. If the job contained four units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer
Answer:
the price per unit that should be charged to the customer is $8,373.75
Explanation:
The computation of the price per unit that should be charged to the customer is shown below
Unit product cost = ($9,700 + $10,600) ÷ 4 units
= $5,075 per unit
Now the price per unit is
= Unit product cost × given percentage
= $5,075 × 165%
= $8,373.75
hence, the price per unit that should be charged to the customer is $8,373.75
Explain how planning involves making decisions today that will have an impact later.
Planning is figuring out what you will do and when. If you plan to play video games instead of doing homework, then tomorrow at school you will get in trouble. If you plan on dropping out of high school, later in life you will not be able to get as many jobs.
Answer: Decision making is the core of planning. Unless a decision has been made, a plan cannot be implemented in the field. ... Decisions can be made without planning but planning cannot be done without making decisions. Planning can be defined as the process of selecting a future course of action.\
Big Corporation receives management consulting services from its 95 percent owned subsidiary, Small Inc. For the year 20X8, Small billed Big $140,000. Small's labor cost and other associated costs for the employees providing services to Big totaled $121,000 in 20X8. Big reported $2,567,000 of income from its own separate operations for 20X8, and Small reported net income of $695,000. Based on the preceding information, what amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8
Answer: $34750
Explanation:
The amount of income should be assigned to the noncontrolling shareholders in the consolidated income statement for 20X8 will be:
Net income of Small = $695,000
Bug company's share = 95% × $695000 = $660250
Therefore, non controlling shareholders at 5% will be:
= 5% × Net income of Small
= 5% × $695000
= 0.05 × $695000
= $34750