Answer:
1. Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
2. Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
3. Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
Explanation:
1. Preparation of the Journal entry to Record the correcting entry to expense R&D costs incorrectly capitalized
Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
(To record research and development expense )
Calculation for the Total of research and development expense
Basic research to develop the technology $2,000,000
Engineering design work $680,000
Development of a prototype device $300,000
Testing and modification of the prototype $200,000
Total research and development expense $3,180,000
2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
(To correct cost of equipment capitalized to patent)
3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment used in R&D projects.
Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
(To record research and development expense)
Requirement 1. Compute cost of goods sold and gross profit using the FIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the FIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the FIFO inventory costing method.
Gross profit is $
using the FIFO inventory costing method.
Requirement 2. Compute cost of goods sold and gross profit using the LIFO inventory costing method.
Begin by computing the cost of goods sold and cost of ending merchandise inventory using the LIFO inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventorypurchased, sold, and on hand at the end of the period. (Enter the oldest inventory layers first.)
Purchases
Cost of Goods Sold
Inventory on Hand
Unit
Total
Unit
Total
Unit
Total
Date
Quantity
Cost
Cost
Quantity
Cost
Cost
Quantity
Cost
Cost
May 1
11
23
26
29
Totals
Compute gross profit using the LIFO inventory costing method.
Gross profit is $
using the LIFO inventory costing method.
Answer:
The question is incomplete because the numbers are missing, so I looked for a similar question that can help you understand how this works.
June 1 Beginning inventory 17 units at $15 each June 12 Purchase 5 units at $19 each June 20 Sale 14 units at $37 each = $518June 24 Purchase 11 units at $23 each June 29 Sale 13 units at $37 each = $481Cost of goods sold under FIFO (first in, first out):
June 20 sale = 14 units x $15 = $210
Inventory on hand:
June 1 Beginning inventory 3 units at $15 each June 12 Purchase 5 units at $19 eachJune 29 sale = (3 units x $15) + (5 units x $19) + (5 units x $23) = $255
Inventory on hand:
June 24 Purchase 6 units at $23 eachTotal COGS = $465
Ending inventory = $138
Gross profit = ($518 + $481) - $465 = $534
Cost of goods sold under LIFO (last in, first out):
June 20 sale = (5 units x $19) + (9 units x $15) = $230
Inventory on hand:
June 1 Beginning inventory 8 units at $15 eachJune 29 sale = (11 units x $23) + (2 units x $15) = $283
Inventory on hand:
June 1 Beginning inventory 6 units at $15 eachTotal COGS = $513
Ending inventory = $90
Gross profit = ($518 + $481) - $513 = $486
Suppose you run a software company and you want to determine if there is a difference between the 'debugging unit' (population 1) and 'after sales services unit' (population 2) by considering the return on investment for each unit. you have acsess to information from a random survey which is done for 24 companies for population 1 which reveals that the average return on investment (ROI) for each dollar you invest is.12, while for population, the survey is performed on 30 companies and the average ROI is found to be .30. You also know from the previously published results that the standard deviation for any ROI in the software industry is .25 What is the value of the test statistic for your research hypothesis?
a. -1.3145.
b. -1.2728.
c. -2.3738.
d. -2.2411.
e. -2.6291.
Answer:
e. -2.6291.
Explanation:
from the information available in this question,
mean x₁ = 0.12
mean x₂ = 0.30
n₁ = 24
n₂ = 30
n1 = 24 < 30
n₂ = 30 <= 30
therefore we would be solving this using the t test.
we have
[tex]t =\frac{x_{1-x_{2} } }{s} *\sqrt{\frac{n1n2}{n1+n2} }[/tex]
inserting values whe have:
[tex]t=\frac{0.12-0.30}{0.25} *\sqrt{\frac{24*30}{24+30} }[/tex]
[tex]t = -0.72 *\sqrt{13.33333}[/tex]
[tex]t=-0.72*3.6514836[/tex]
[tex]t=-2.629067947[/tex]
this is approximately
[tex]-2.6291[/tex]
therefore option e answers this question.
Hey guys i dont know who to vote for plz give me suggestions and reasons why
Answer:
me ig im just trying to get more points and brainliest
Explanation:
also im nice :) when people are not rude to me
Use the following information to answer the question below:
Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10%
Excess cash is used to help pay for the acquisition
Acquirer expects to be able to close down several of the target company’s old manufacturing facilities and save an estimated $2 million in the first year
Target PP&E is written up by $25 million to fair market value
Investment bankers, accountants, and consultants on the deal earned $30 million in fees
Which of the following adjustments would be made to the pro forma income statement?
a) Advisory fee expense of $30 million
b) Depreciation expense increase due to PP&E write-up
c) Pre-tax synergies of $2 million
d) All of the above
Answer:
d) All of the above
Explanation:
Pro forma income statements are basically estimated or expected income statements which do not necessarily comply with US GAAP norms (are not useful in legal terms), but should reflect future outcomes.
In this case, Acquirer didn't simply decide to purchase Target and carried the operation immediately. The process is long and complicated and many times companies negotiate fair values and future cash flows. If you analyze the acquisition process of Whole Foods by Amazon it is very interesting. After negotiations Amazon paid 4 times the capitalization value of Whole Foods.
Before the actual process ends, Acquirer should present a pro forma statement and it must include all the relevant issues about the merger. They already know how much the transaction will cost, what actions will be taken to increase profits and any other major event.
A father and mother are planning a savings program to put their daughter through college. Their daughter is now 8 years old. She plans to enroll at the university when she is 18 and it should take her 4 years to complete her education. Currently, the cost per year (for tuition, etc.) is $16,200, but a 2 percent inflation rate in these costs is forecasted. The cost for each year of college will be withdrawn when she turns 18, 19, 20, and 21. The daughter received $13,000 at age 4 and another $2,900 at age 6 from her grandmother; this money, which is invested in an account earning 7.5 percent interest compounded annually, will be used to help meet the costs of the daughter's education. The rest of the costs will be met by money the parents will deposit in the savings account. They will make 4 equal annual deposits to the account, with the first deposit being made today on her 8th birthday and the last one being made on her 11th birthday. These deposits will also earn 7.5 percent interest compounded annually. How large must each deposit (from the parents) be in order to put the daughter through college
Answer:
$4,102.57
Explanation:
we must first calculate the future costs of college:
cost of college year 1 = $16,200 x (1 + 2%)¹⁰ = $19,747.71
cost of college year 2 = $19,747.71 x 1.02 = $20,142.66
cost of college year 3 = $20,142.66 x 1.02 = $20,545.51
cost of college year 4 = $20,545.51 x 1.02 = $20,956.42
in order to determine how much money does the family need to have before college starts we must discount the cost of college by 7.5%:
PV cost of college year 1 = $19,747.71
PV cost of college year 2 = 20,142.66 / 1.075 = $18,737.36
PV cost of college year 3 = $20,545.51 / 1.075² = $17,778.70
PV cost of college year 4 = $20,956.42 / 1.075³ = $16,869.09
total = $73,132.86
the future value of the grandmother's deposits:
$13,000 x (1 + 7.5%)¹⁴ = $35,781.77
$2,900 x (1 + 7.5%)¹² = $6,907.16
total = $42,688.93
that means that you will need to save $73,132.86 - $42,688.93 = $30,443.93 by the time your child turns 18
you will make 4 deposits and their future value will be:
deposit x 1.075¹⁰ = 2.0610D
deposit x 1.075⁹ = 1.9172D
deposit x 1.075⁸ = 1.7835D
deposit x 1.075⁷ = 1.6590D
total = 7.4207D
yearly deposit = $30,443.93 / 7.4207 = $4,102.57
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. As a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only thing to be changed. The bakery makes 1,500 loaves per month with a labor productivity of 2.344 loaves per labor-hour, how many workers will lackey need to add?
Answer:
It would take is one worker to finish it. The further explanation is given below.
Explanation:
The given value are:
Complete loaves for every hour of labor
= 2.244
Each employee who works every month.
= 160 hours
Monthly output of one worker will be:
= [tex]Total \ loaves\times Total \ hours[/tex]
= [tex]2.344\times 160[/tex]
= [tex]375.04 \ loaves[/tex]
The increased competition, as we know, seems to be "25%" of 1,500 loaves every month.
= [tex]1500\times 25 \ percent[/tex]
= [tex]375[/tex]
= [tex]\frac{375}{375.04}[/tex]
= [tex]0.99[/tex]
Throughout preparation around for job to be completed, Lackely would need to employ another worker although one worker's monthly output is equivalent to 375.04 loaves as well as the minimum additional loaves every month becomes 375, so what it would take is one worker to finish it.
The laws passed by Congress and by state legislatures are called:
Answer:
Rules
Explanation:
I think I'm right
Answer:
Rules
Explanation:
Yes I think this is right
what is business mathematics ? and what are the basics of business mathematics ?
Answer: Business calculation is mathematics used by industrial companies to record and maintain enterprise operations. Profit-making organizations use mathematics in accounting, catalog management, retailing, deals forecasting, and monetary analysis.
Answer: Business mathematics are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis.
An American currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate is i$ = 2% in the U.S. and i€ = 6% in the euro zone, respectively. The spot exchange rate is $1.25 = €1.00 and the one-year forward exchange rate is $1.20 = €1.00. Show how you can realize a certain dollar profit via covered interest arbitrage.
a. Borrow $1,000,000 at 2%; trade $1,000,000 for €800,000 at the spot rate; invest euros at i€= 6%;translate euro proceeds back to dollars at the forward rate of $1.20 = €1.00. Gross proceeds will be $1,017,600.
b. Borrow $1,000,000 at 2%; trade $1,000,000 for €800,000 at the spot rate; invest euros at i€= 6%;translate euro proceeds back to dollars at the forward rate of $1.20 = €1.00. Net profit will be $17,600.
c. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €850,000 at the forward rate of $1.20 = €1.00. Net profit will be €2,000.
d. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €848,000 at the forward rate of $1.20 = €1.00. Net profit will be $2,400.
Answer:
c. Borrow €800,000 at i€= 6%;translate euros to dollars at the spot rate, invest dollars in the U.S. at i$ = 2% for one year; translate dollars back to €850,000 at the forward rate of $1.20 = €1.00. Net profit will be €2,000.
Explanation:
borrow 800,000€ today and purchase $1,000,000
invest the $1,000,000 and get $1,020,000 in one year
purchase back $1,020,000 / $1.20 = 850,000€
pay your loan resulting in a = 850,000€ - (800,000€ x 1.06) = 850,000€ - 848,000€ = 2,000€ gain
if you borrow $1,000,000 and purchase 800,000€
invest 800,000€ and get 848,000€ in one year
purchase back 848,000€ x 1.2 = $1,017,600
pay your loan back = $1,017,600 - ($1,000,000 x 1.02%) = $1,017,600 - $1,020,000 = -$2,400 loss
X Manufacturing uses a normal cost system and had the following data available for 20x8: Direct materials purchased on account $148,000 Direct materials requisitioned 98,000 Direct labor cost incurred 127,000 Factory overhead budgeted 155760 Factory overhead incurred 137,800 Cost of goods sold 260,000 Beginning direct materials inventory 34,000 Beginning WIP inventory 70,000 Beginning finished goods inventory 55,000 Ending finished goods inventory 104,000 Overhead application rate, as a percent of direct-labor costs 118% Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345 What is the adjusted cost of goods sold assuming the over/under applied overhead is immaterial?
Answer:
Adjusted cost of goods sold = $247,940
Explanation:
Under / Over-applied overhead = Factory overhead incurred - Factory overhead applied
Under / Over-applied overhead = Factory overhead incurred - (Direct labor cost*Overhead application rate)
= $137,800 - ($127,000*118%)
Over-applied overhead = $137,800 - $149,860
Over-applied overhead = ($12,060)
Adjusted cost of goods sold = Unadjusted cost of goods sold - Over-applied overhead
Adjusted cost of goods sold = $260,000 - $12,060
Adjusted cost of goods sold = $247,940
Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Answer:
The transaction price would Leo estimated for this contract is $30,000
Explanation:
The computation of the transaction price is shown below:
= (Fixed fee + additional amount) × chance + fixed fee × chance
= $35,000 × 50% + $25,000 × 50%
= $17,500 + $12,500
= $30,000
hence, the transaction price would Leo estimated for this contract is $30,000
We simply applied the above formula so that the correct answer could come
Opunui Corporation has two manufacturing departments--Molding and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding Finishing Total
Estimated total machine-hours (MHs) 3,250 3,000 6,250
Estimated total fixed manufacturing overhead cost $27,000 $4,700 $31,700
Estimated variable manufacturing overhead cost per MH $ 1.00 $ 2.00
During the most recent month, the company started and completed two jobs--Job A and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job A Job M
Direct materials $15,900 $ 9,700
Direct labor cost $ 23,000 $ 9,500
Molding machine-hours 1,250 2,000
Finishing machine-hours 1,750 500
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 30% on manufacturing cost to establish selling prices. The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
a) $58,550
b) $99,500
c) $76,115
d) $17,565
Answer:
Results are below.
Explanation:
Giving the following information:
Estimated total machine-hours (MHs)= 6,250
Estimated total fixed manufacturing overhead cost= $31,700
Estimated variable manufacturing overhead cost= (1*3,250 + 2*3,000)= $9,250
Job A
Direct materials $15,900
Direct labor cost $ 23,000
Molding machine-hours 1,250
Finishing machine-hours 1,750
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (31,700 + 9,250)/6,250
Predetermined manufacturing overhead rate= $6.55 per machine hour
Now, we can calculate the total cost of Job A:
Total cost= 15,900 + 23,000 + 6.55*3,000
Total cost= $58,550
Finally, the selling price for Job A:
Selling price= 58,550*1.3= $76,115
Toyota has been working alongside us for years, but we just heard the bad news: they’re not renewing our electric vehicle (EV) collaboration when the current project is completed. Their research and development (R&D) team feels that they’ve finally caught up, and they’re going to start using their own EV components in their cars—even though the range is less than ours, the components are less expensive.This represents an example of which of the following competitive forces?a. Bargaining power of suppliersb. Bargaining power of buyers (customers)
Answer:
The right approach is Option a (Bargaining power of suppliers).
Explanation:
The concept is such an industry influences the buyer's business climate and determines the potential including its buyer to attain profitability.The meaning is basically how very much jurisdiction a single provider has. By supplier, I represent the industries that create the manufactured goods that even the sellers refine into the finished product to something like the sellers throughout the business. If there are several suppliers during the sector because each supplier is indeed very poor.What are the main parts of a cover letter and their purposes?
Answer:
The introduction: Whenever possible, indicate how you came to apply to the company, such as...
responding to an advertised opening
having identified the company through research (do not use this if you didn't do the research as it may be obvious to the employer)
reading about the company or its executives in a publication
receiving a referral from John Jones at XYZ company
The body: It is important to highlight your qualifications and strengths as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
The closing: If the position was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
Explanation:
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which help people to achieve the objective for which it is written.
What is a cover letter?A one-page professional letter is submitted with your resume when you apply for a job is known as a cover letter. It allows you to reveal a personal side while proving why choosing you is a wise choice.
The cover letter should serve as an argumentative essay that explains to the employer why you are a strong candidate for the position. Include concrete situations from your prior experience that demonstrate your suitability for the job.
The main parts of a cover letter are the Introduction, Sales Pitch, and Conclusion which helps to introduce a person in front of the employer and help to make convince through their conversation about suitability for a particular role.
Learn more about the Cover letters, here:
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Erics - Automotive Final Exam
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Rearrange the following steps in the accounting cycle in proper sequence: a. A post-closing trial balance is prepared. 3 b. Adjustment data are asssembled and analyzed. c. Adjusting entries are journalized and posted to the ledger. d. An adjusted trial balance is prepared. e. An optional end-of-period spreadsheet is prepared. f. An unadjusted trial balance is prepared. g. Closing entries are journalized and posted to the ledger. h. Financial statements are prepared. i. Transactions are analyzed and recorded in the journal. j. Transactions are posted to the ledger.
Answer:
The Accounting Cycle of a Business refers to the entire process of accounting for the transactions in the business from the moment the company begins a new transaction to the end of the period where it is aggregated into other accounts and presented to relevant stakeholders.
There are 10 steps to this cycle and they are;
Transactions are analyzed and recorded in the journal. Transactions are posted to the ledger An unadjusted trial balance is prepared Adjustment data are assembled and analyzed An optional end-of-period spreadsheet is preparedAdjusting entries are journalized and posted to the ledger An adjusted trial balance is prepared Financial statements are prepared Closing entries are journalized and posted to the ledger A post-closing trial balance is preparedi ⇒ j ⇒ f ⇒ b ⇒ e ⇒ c ⇒ d ⇒ h ⇒ g ⇒ a
Accounts payable 448 394 Accounts receivable 1,292 840 Accumulated depreciation 6,758 6,642 Cash & equivalents 236 138 Common stock 1,196 1,130 Cost of goods sold 1,500 n.a. Depreciation expense ? n.a. Common stock dividends paid ? n.a. Interest expense 140 n.a. Inventory 1,026 1,036 Addition to retained earnings 602 n.a. Long-term debt 824 746 Notes payable 230 380 Gross plant & equipment 10,260 10,000 Retained earnings 3,074 2,486 Sales 3,018 n.a. Other current liabilities 116 96 Tax rate 34 % n.a. Market price per share – year end $ 19.80 $ 17.50 Number of shares outstanding 500 million 500 million
Answer:
a. Year 2 ICR = 10.01
Year 1 ICR = 10.81
b. Year 2 ACP = 566 days
Year 1 ACP = 187 days
c.Year 2 current ratio = 4.53
Year 1 current ratio = 4.11
d. Year 2 Quick ratio = 2.71
Year 1 Quick ratio = 2.00
Explanation:
Note: This question is not complete and the data in it are merged together. The complete question is therefore provided before answering the question. Please, see the attached pdf file for the complete question and the sorted data.
Also note: See the attached pdf file for the explanation of the answer.
Does Diamond’s recording of the August 2010 ‘‘continuity’’ payments and August/September 2011 ‘‘momentum’’ payments as the purchases of fiscal 2010 and fiscal 2011, respectively, comply with the U.S. GAAP (Generally Accepted Accounting Principles)? Why or why not? Provide support from the accounting literature, including the FASB Concept Statements, in support of your argument
Answer:
The correct response is "No".
Explanation:
The August year 2010 "continuity" transactions reported by Diamonds as well as the August/September year 2011 "momentum" transactions or transfers do not cooperate within U.S. GAAP. Diamond said that because it was truly compensating for products they had indeed purchased, the fees are there for potential products to be obtained.Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2017, she exchanges it with Lisa Martin (an unrelated party) for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. As the real estate market on the East Coast is thriving, on September 1, 2018, Lisa sells the land she acquired for $120,000.If an amount is zero, enter "0".a. On January 4, 2017, Tanya's realized gain for the West Coast land is $, her recognized gain is $, and her adjusted basis is $.b. On January 4, 2017, Lisa's realized gain for the East Coast land is $, her recognized gain is $, and her adjusted basis is $.c. Lisa's realized gain from the September 1, 2018, sale is $. Her recognized gain from the September 1, 2018 sale is$.d. What effect does Lisa's 2018 sale have on Tanya?Lisa’s sale of the East Coast land has for Tanya.e. Complete the letter to Tanya advising her of the tax consequences of this exchange.
Answer:
Following are the solution to the given point:
Explanation:
In point a:
Sum of:
= ($89,000 + $3,000)
= $92,000
Modified foundation= -$80,000
A real profit= $12,000
Gain (boot received) recognised = $3,000
Tanya's West Coast Changed Base:
Fair Market = $89,000
Posted benefit:
= ($ 12,000- $ 3,000)
= $ 9,000
Adjusted Base =$80,000
In part b:
Realized benefit calculation:
Sum of = $92,000
Modified Base =$72,000 + $3,000 = $75,000
A real profit= $17,000
gain was accepted = $0
Changed base of Martin to the West Coast:
Fair Market = $92,000
Gain deferred = ($17,000-$0) = $ 17,000
Adjusted Base = $75,000
In point c:
Recognized benefit from Martin:
Value = $1,20,000
Base adjusted= $ 75,000
actual gain = $45,000
Gain Recognized= $45,000
In point d:
Tanya has little effect mostly on selling by Lisa of an eastern seaboard ground. There is no supposed selling care among Lauren and Tanya after selling property on the eastern seaboard since they are unrelated parties.
In point e:
sum of = $92,000.
Tanya 's acceptable basis is $80,000 ($89,000-($12,000-$3,000)).
actual benefit = $ 12,000
gain benefit = $3,000
Since the trade is deemed a non-taxable trade, $3,000 is recognized of the total $12,000 benefit. Its ground earned is $80,000 adjusted.
Hudek Inc., a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was $20,000 at the beginning of the month and $10,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $50,000 and direct labor cost of $22,000. The actual manufacturing overhead cost incurred was $58,000. The manufacturing overhead cost applied to Work in Process was $56,000. The cost of goods manufactured for July was:
Answer:
$138,000
Explanation:
The computation of cost of goods manufactured for July is shown below:-
Cost of goods manufactured for July = Opening work in progress + Direct material + Direct labor + Manufacturing cost - Closing work in progress
= $20,000 + $50,000 + $22,000 + $56,000 - $10,000
= $148,000 - $10,000
= $138,000
Therefore for computing the cost of goods manufactured for July we simply applied the formula.
As organizations expand into global markets, business communicators need to become aware of their own culture and how it differs from other cultures. Cultural awareness allows professionals to communicate successfully with other cultures and to navigate the intercultural challenges of a globalized business world. The first step in overcoming intercultural obstacles is understanding the trends that drive globalization.
Identify the trend illustrated by the following example.
A U.S. retailer of high-tech products looks to open stores in Russia where there has been a surge in demand for smartphones and tablet computers.
A) Favorable trade agreements
B) Robust middle-class growth
C) Transportation advancements
Answer:
Option C (Robust middle-class growth) seems to be the correct option.
Explanation:
We will construct a convincing hypothesis of middle-class development by culling through canonical academics as well as contemporary scholars. Stable demand, confidence, political stability, and a collection of respectable, forward-looking liberal as well as proto-capitalist practices are the main structures of middle-class-led growth.Some other possibilities given weren’t connected to the instance given. So, the solution here is the best one.
The following information pertains to Bridgeport Co.:
Preferred stock, cumulative:
Par value per share $100
Dividend rate 6%
Shares outstanding 10,000
Dividends in arrears none
Common stock:
Par value per share $10
Shares issued 140,000
Dividends paid per share $1.80
Market price per share $52
Additional paid-in capital $500,000
Unappropriated retained
earnings (after closing) $280,000
Retained earnings
appropriated for
contingencies $300,000
Common treasury stock:
Number of shares 10,000
Total cost $250,000
Net income $580,000
Compute (assume no changes in balances during the past year):
A) Total amount of stockholders' equity in the balance sheet.
B) Earnings per share of common stock.
C) Book value per share of common stock.
D) Payout ratio of common stock.
E) Return on common stock equity per share per share.
Answer:
A. Total amount of stockholders' equity in the balance sheet.
= Preferred stock + Common Stock + Additional Paid-In Capital + Unappropriated retained earnings + Retained earnings appropriated for contingencies - Treasury stock
= (100 * 10,000) + (10 * 140,000) + 500,000 + 280,000 + 300,000 - 250,000
= $3,230,000
B. Earnings per share of common stock.
= (Net Income - Preferred Dividends ) / (Common stock - treasury stock)
= (580,000 - (10,000 * 6% * 100) ) / (140,000 - 10,000)
= $4
C. Book value per share of common stock.
= (Stockholder's equity - Preferred stock) / ( Common stock - Treasury)
= (3,230,000 - (100 * 10,000) ) / (140,000 - 10,000)
= $17.15
D. Payout ratio of common stock
= Dividend per share/ Earnings per share
= 1.8/4
= 45%
E. Return on common stock equity
= (Net Income - Preferred Dividends ) / (Stockholder's equity - Preferred stock)
= (580,000 - (10,000 * 6% * 100) / (3,230,000 - (100 * 10,000) )
= 0.233
= 23.3%
What is an example of brand promotion
A.charging a premium
B.providing a warranty
C.providing after-sales service
D.attending a trade show
Answer:
D
Explanation:
attending a trade show
supposes there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen?
Answer:Suppose there is economic profit being made in the garbage bag industry. Over time, we should expect which of the following things to happen? ... Garbage bag supply will decrease. Garbage bag prices will increase.
Explanation:workers at this wage; therefore it would simply create unemployment. b. To help ... There needs to be differences in opportunity costs of producing goods across countries for there ... Suppose we have the following market supply and demand schedules ... Economic profits are zero and firms neither enter nor exit the industry.
Exacto Company reported the following net income and dividends for the years indicated:
Year Net Income Dividends
20X5 $35,000 $12,000
20X6 45,000 20,000
20X7 30,000 14,000
True Corporation acquired 75 percent of Exacto’s common stock on January 1, 20X5. On that date, the fair value of Exacto’s net assets was equal to the book value. True uses the equity method in accounting for its ownership in Exacto and reported a balance of $259,800 in its investment account on December 31, 20X7.
Required
a. What amount did True pay when it purchased Exacto’s shares?
b. What was the fair value of Exacto’s net assets on January 1, 20X5?
c. What amount was assigned to the NCI shareholders on January 1, 20X5?
d. What amount will be assigned to the NCI shareholders in the consolidated balance sheet pre-pared at December 31, 20x7?
Answer:
A. $211,800
B. $282,400
C. $70,600
D. $ 86,600
Explanation :
A. Calculation for the amount that True pay when it purchased
Balance in investment account, December 31, 20x7$259,800
Cumulative earnings since acquisition$110,000
(35,000+45,000+30,000)
Less Cumulative dividends since acquisition(46,000)
(12,000+20,000+14,000)
Total $64,000
(110,000-46,000)
Proportion of stock held by True Corporationx 0.75
Total amount debited to Investment account(48,000)
(0.75*64,000)
Purchase amount on January 1, 20X5 $211,800
(259,000-48,000)
B. Calculation for fair value of Exacto’s net assets on January 1, 20X5
True Corporation’s Purchase amount $211,800
÷True Corp.’s percentage 0.75
Fair Value of Exacto Company’s Net Assets $282,400
C. Calculation for the amount that was assigned to the NCI shareholders on January 1, 20X5
Fair Value of Exacto Company’s Net Asset$282,400
× Exacto Company’s percentage 0.25
(100%-75%)
NCI’s portion $70,600
D. Calculation for the amount that will be assigned to the NCI shareholders
True Corp’s investment balance$259,800
÷True Corp’s percentage0.75
=Fair Value of Exacto’s Net Assets 20X7 $346,400
×Exacto Company’s percentage 0.25
(100%-75%)
NCI’s Portion, December 31, 20X7 $ 86,600
($346,400×0.25)
Required information [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 310,000 units of a product and transferred them to the next department. Of these transferred units, 62,000 were in process in the production department at the beginning of April and 248,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 84,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method.
Answer:
Computation of Equivalent units
units Materials Conversion
Started & completed 248,000 248,000 248,000
Ending inventory 84,000 75,600 33,600
Equivalent units 323,600 281,600
Explanation:
a) Data and Calculations:
Units transferred out = 310,000
Beginning inventory = 62,000 (70% materials and 30% conversion)
Started and completed = 248,000
Ending inventory = 84,000 (90% materials and 40% conversion)
b) Equivalent units are physical units expressed as finished units by multiplying the physical units with the degree of completion in terms of materials and conversion (labor and overheads).
You can buy a property today for $4 million and sell it in 6 years for $5 million. You will not earn any rental income on the property. Answer the following questions. a.) If the interest rate is 5%, what is the present value of the sales price? _____________ (4 pts) b.) Is this a good investment for you? Explain your answer ____________________________ _______________________________________________________________________(4 pts) c.) If the interest rate is 5%, what is the present value of the sales price if you also earned $200,000 in rental income each year? _______________________________________________(4 pts)
Answer:
a. Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Present value = $4,746,215.40
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
a. Cash flow each year from year 1 to 5 = 0
Cash flow in year 6 = $5,000,000
I = 5%
Present value = $3,731,076.98
It is not a good investment because the present value of the sales price is less than the purchase price of the property. This means that purchasing the property would be unprofitable.
c. Cash flow each year from year 1 to 5 = $200,000
cash flow in year 6 = $200,000 + $5,000,000 = $5,200,000
I = 5%
Present value = $4,746,215.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Assume that Minneapolis’ sales by major market are: Market Minneapolis Medical Dental Sales $ 390,000 100 % $ 260,000 100 % $ 130,000 100 % Variable expenses 234,000 60 % 169,000 65 % 65,000 50 % Contribution margin 156,000 40 % 91,000 35 % 65,000 50 % Traceable fixed expenses 46,800 12 % 13,000 5 % 33,800 26 % Market segment margin 109,200 28 % $ 78,000 30 % $ 31,200 24 % Common fixed expenses not traceable to markets 11,700 3 % Office segment margin $ 97,500 25 % The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $5,200. Marketing studies indicate that such a campaign would increase sales in the Medical market by $45,500 or increase sales in the Dental market by $39,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answer:
1. Medical market $10,725
2. Dental market $14,300
3. Dental market
Explanation:
1. Calculation for How much would the company's profits increase (decrease) in the Medical Market
MEDICAL MARKET
Increase in sales $45,500
Contribution Magin ratio 35%
Increase in contribution margin $15,925
(Medical $45,500*35%=$15,925)
Less increase in Advertisement $5,200
Increase in company profit
$10,725
Based on the above calculation Medical Market profit will increase by $10,725
2. Calculation for How much would the company's profits increase (decrease) in the Dental Market
DENTAL MARKET
Increase in sales $39,000
Contribution Magin ratio 50%
Increase in contribution margin $19,500
(Dental $39,000*50%=$19,500)
Less increase in Advertisement $5,200
Increase in company profit
$14,300
Based on the above calculation Dental Market profit will increase by $14,300
3. Based on the above calculation I would recommend that the company should focus its advertising campaign on DENTAL MARKET because DENTAL MARKET has the highest profit of the amount of $14,300 than Medical market which has a profit of $10,725.
Your company has a line of credit through a local bank. The bank requires a 6% compensating balance and charges 12% on the amount borrowed against the line. If the company needs $100,000 to purchase inventory, find the amount it should borrow, and calculate the effective annual rate on the loan (b) You’ve worked out a line of credit arrangement that allows you to borrow up to $100 million at any time. The interest rate is 0.4 percent per month. In addition, 5% of the amount that you borrow must be deposited in a non-interest bearing account (i.e. a compensating balance). Assume that your bank uses compound interest on its line of credit loans. What is the effective annual rate (EAR) on the loan? W
Answer:
A) 19.15%
B) 68.53%
Explanation:
as it requires 6% of compensating balance the company you ask for:
$100,000 / (1 - 6%) = 106.382,98
Now we solve for the effective rate.
106,382.98 x (1 + 0,12) = 100,000 x (1 + r)
r = 119.148,93/100,000 - 1 = 0,1914893
B) we do the same procedure as the previous one
[tex]1/(0,95) (1+0.04)^{12} = 1+r_e[/tex]
re 0,685297072
On January 1, 2016, Gless Textiles issued $24 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 15% of the issue as an investment.3. On July 1, 2021, when Gless’s common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century for the conversion of the bonds (book value method). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)1. Record the entry for Gless regarding the conversion of the bonds.2. Record the entry for Century regarding the conversion of the bonds.
Answer and Explanation:
The Journal entries are shown below:-
1. Convertible bonds payable Dr, $3,600,000
Premium bonds payable Dr, $16,200
To common stock $3,616,700
(Being conversion of the bonds is recorded)
Working note:
Issue price of the convertible bonds $3,636,000
($24,000,000 × 15% × 101%)
Less: Par value of the bonds $3,600,000
($24,000,000 × 15% × 100%)
Premium on bonds payable $36,000
less: Premium on bonds payable
amortized $19,800
($26,000 × 11 ÷ 20)
Available Balance $16,200
2. Investment in common stock Dr, $3,616,200
To Investment in convertible bonds $3,616,200
To Premium on bond investment $16,200
(Being conversion of the bonds is recorded)