Answer:
The Price elasticity of demand shows the effect of a change in price on the quantity demanded. In other words, it shows the percentage change in quantity demanded as a result of a 1% change in price.
Price elasticity of demand = % change in quantity demanded / % change in price of good
Clive Cloves price elasticity:
= 6.67% / 10%
= 0.667
Delores Cloves price elasticity:
= 6.67% / 2%
= 3.335
Josephine quits her $40,000 a year job to start her own business. She rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000. She uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively.
a. $45,000 and $11,000.
b. $51,000 and $5000.
c. $45,000 and $5000
d. $51,000 and $45,000.
Answer:
b. $51,000 and $5000.
Explanation:
According to the scenario, computation of the given data are as follows,
Total Revenues = $140,000
Explicit cost = $15,000 + $50,000 + $4,000 + $20,000 = $89000
Implicit cost (opportunity cost) = $40,000 + $6,000 = $46,000
So, we can calculate accounting profit and economic profit by using following formula,
Accounting Profit = Total revenue - Explicit cost
By putting the value, we get
= $140,000 - $89,000
= $51,000
Economic Profit = Total revenue - Explicit cost - Implicit cost
By putting the value, we get
= $140,000 - $89,000 - $46,000
= $5,000
The following data are available relating to the performance of Seminole Fund and the market portfolio: Seminole Market Portfolio Average return 18 % 14 % Standard deviations of returns 30 % 22 % Beta 1.4 1.0 Residual standard deviation 4.0 % 0.0 % The risk-free return during the sample period was 6%. If you wanted to evaluate the Seminole Fund using the M2 measure, what percent of the adjusted portfolio would need to be invested in T-Bills
Answer:
0.8%
Explanation:
Calculation to determine what percent of the adjusted portfolio would need to be invested in T-Bills
Using this formula
M2 =(Rp - Rf) * σ m / σ p - (Rm - Rf)
Whrere,
Rp represent Return on Seminole Fund (14%)
Rf represent Risk free rate of return(6%)
Rm represent Return on Market Portfolio(18%),
σ m represent Standard Deviation of return on market portfolio (22%)
σ p represent Standard Deviation of return on fund (30%)
Let plug in the formula
M2= (18 - 6) * 22 / 30 - (14 - 6)
M2= (12 * 0.73 ) - 8
M2= 8.8 - 8
M2= 0.8%
Therefore the percent of the adjusted portfolio that would need to be invested in T-Bills is 0.8%
Which of the following best explains why resources need to be allocated in the game of economic? A) Natural resources are often found in places far from where they are used for production. B) There are always different production methods for the same goods and services. C) There are not enough resources to produce all of the good and services that everyone wants. D) If sufficent resources are not set aside for future production, scarcity cannot be eliminated. THE ANSWER IS C!!!!!!
Answer:
The best explanation for the need to allocate resources in the game of economics is that:
C) There are not enough resources to produce all of the goods and services that everyone wants.
Explanation:
In economics, it has been established that human needs are insatiable and that the resources to meet the needs are not readily and sufficiently available. This is the bedrock of Economics. It is the reason that Economics is studied as a separate course. Scarcity and needs are important concepts in human interactions. Therefore, the ability to allocate scarce resources to enable the production of goods and services is key to human development.
The effect of the declaration of a cash dividend by the board of directors is to:___________
Increase Decrease
a. Stockholders' equity Assets
b. Assets Liabilities
c. Liabilities Stockholders' equity
d. Liabilities Assets
Answer:
C. Increase liabilities , decrease stockholder's equity
Explanation:
Usually, investors or shareholders in a company would have their returns paid to them at the end of each accounting period in the form of dividends. The reward of their investment is called dividend.
Shareholders are the owners of a company. They subscribe to shares of a company and their funds is used to run the company.
The effect of the declaration of cash dividend by the board of directors is that it will increase the liabilities and decrease stockholder's equity. What this means is that paying cash dividend would further bring about an increase in the liabilities of a company whilst also reducing the amount of equity or capital of the company's stockholder.
Andrew is deciding whether to remain in the home he has lived in for the past ten years, which is located very near his work, or to move into a newer home that is located in the suburbs farther from his job. The old house was purchased for $160,000 and has a market value of $220,000. The new home can be purchased for $285,000. Which of the following is not relevant to Andrew's decision?
a. Driving distance to work
b. Cost of the old house
c. Market value of the old house
d. Cost of the new house
Answer:
The decision that is not relevant to Andrew is:
b. Cost of the old house.
Explanation:
a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges. It is a sunk or past cost. Past costs are not relevant because they do not make a difference in the decision or the alternative to choose. Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.
When researchers estimate labor market discrimination, they control for many observable factors that are thought to impact wages (e.g., education, occupation, experience, location). Even after accounting for these factors, they find that men are typically paid more than women, concluding that any remaining differences may indicate discrimination. Of course, it is not possible to control for all differences that may affect earnings. Consider whether this methodology overestimates or underestimates the total effect of discrimination on wages.
a. Women may choose certain jobs to avoid the impact of discrimination in higher-paying professions. If this is the case, the methodology the total effect of discrimination on wages.
b. Jobs that are dominated by women may pay less than similarly skilled jobs that are dominated by men. If this is the case, the methodology the total effect of discrimination on wages. underestimates overestimates
Answer and Explanation:
a. In the case when the women might select the specific job for avoiding the effect of discrimination in a profession that pay high salary so the methodology would underestimate the total impact with respect to the discrimination of the wages
b. In the case when the job i.e dominated by the women that pay lower having same skilled job dominated by men. So here the methodology also be underestimated
The cost of materials transferred into the Rolling Department of Keystone Steel Company is $571,100 from the Casting Department. The conversion cost for the period in the Rolling Department is $111,000 ($68,000 factory overhead applied and $43,000 direct labor). The total cost transferred to Finished Goods for the period was $669,000. The Rolling Department had a beginning inventory of $26,800.
Required:
a. On June 30, journalize the cost of transferred-in materials.
b. On June 30, journalize the conversion costs.
c. On June 30, journalize the costs transferred out to Finished Goods.
Answer:
Part a
Debit : Work in Process : Casting Department $571,100
Credit : Work In Process : Rolling Department $571,100
Being Cost of materials transferred from Casting Department to Rolling Department
Part b
Debit : Work In Process : Overheads $68,000
Debit : Work In Process : Direct Labor $43,000
Credit : Overheads $68,000
Credit : Salaries Payable $43,000
Being factory overhead applied and direct labor incurred
Part c
Debit : Finished Goods Inventory $669,000
Credit : Work in Process : Rolling Department $669,000
Being Cost transferred to Finished Goods for the period
Explanation:
Journal entries for the transactions have been prepared above.
Scenario: Color-Me-Green Inc. Color-Me-Green Inc., a U.S.-based clothing merchant, has started doing business internationally. Having subsidiaries in several countries, the company must integrate financial information from all its subsidiaries with the U.S. home office at the end of the year. Suppose Country A has a currency called the Pulse (P). At the beginning of the year, the exchange rate between the Pulse and the U.S. dollar was P150/$. The inflation rate in Country A is running at an annual rate of 250 percent, whereas inflation in the U.S. is running at 2 percent.
Required:
What would most likely be the new exchange rate that Color-Me-Green can expect at the end of the year?
Answer:
P514.70/$
Explanation:
At the beginning the exchange rate was P150/$
The inflation is 250% in Country A and 2% in country B.
The net inflation for the two countries exchange rate will be 125%.
The new exchange rate for the Color-Me-Green will be ;
P150/$ * 125% * fisher effect inflation rate = P514.70
Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.
Direct material cost per unit of Q $18
Total estimated manufacturing overhead $103,000
Total cost per unit of Q $72
Total estimated machine hours 206,000 MH
Direct labor cost per unit of Q $36
a. 40 MH per unit of Q.
b. 0.50 MH per unit of Q.
c. 0.75 MH per unit of Q.
d. 14.00 MH per unit of Q.
e. 24 MH per unit of Q.
Answer:
Machine hours per unit= 18 / 0.5= 36
Explanation:
First, we need to calculate the predetermined manufacturing overhead rate using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 103,000 / 206,000
Predetermined manufacturing overhead rate= $0.5 per machine hour
Now, we need to determine the allocated overhead:
Unitary cost= direct material + direct labor + allocated overhead
72= 18 + 36 + allocated overhead
18= allocated overhead
Finally, the machine hours per unit:
Machine hours per unit= 18 / 0.5= 36
g production machine tool. The new machine would cost $3700, have a life of four years, have no salvage value, and save the firm $500 per year in direct labor cost and $200 per year indirect labor costs. The existing machine tool was purchased four years ago at a cost of $4000. It will last four more years and have no salvage value at the end of that time. It could be sold now for $1000 cash. Assume money is worth 8%, and that the difference in taxes, insurance, and so forth, for the two alternatives is negligible. Determine whether or not the new machine should be purchased
Answer:
The new machine should NOT be purchased.
Explanation:
Annual total cost saving = Direct labor cost saving + Indirect labor costs saving = $500 + $200 = $700
Using the formula for calculating the present value of an ordinary annuity, the present value of the annual total cost saving can be calculated as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value the total annual cost saving = ?
P = Total annual cost saving = $700
r = interest rate = 8%, or 0.08
n = number of years = 4
Substitute the values into equation (1), we have:
PV = $700 * ((1 - (1 / (1 + 0.08))^4) / 0.08)
PV = $2,318.49
Net present value of new machine tool = – Cost of the new machine tool + PV = – $3700 + $2,318.49 = – $1,381.51
Salvage value existing machine tool now = $1,000
Since the Salvage value existing machine tool now is $1,000 while the Net present value of new machine tool is –$1,381.51, the new machine should NOT be purchased.
Define four functions of managenet
Answer:
The answer is below
Explanation:
The Four functions of management are:
1. Planning: this is the process of setting out a plan by the management team that involves the goals and the template or means to achieve those goals.
2. Organizing: this is a process of organizing the resources; both human and material resources, that are deemed essential to the realization of the set out plans or goals.
3. Leading: this is a process of ensuring all the team members work together to achieve the main goals or set out plans.
4. Controlling: this is a process that involves constant checking, evaluation, and monitoring activities to ensure the ongoing performance meets the actual plans and will eventually yield to the goal.
On January 1, 2019, Sunland Company purchased the following two machines for use in its production process.
Machine A: The cash price of this machine was $50,000. Related expenditures included: sales tax $3,700, shipping costs $100, insurance during shipping $60, installation and testing costs $70, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Sunland estimates that the useful life of the machine is 5 years with a $5,050 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B: The recorded cost of this machine was $180,000. Sunland estimates that the useful life of the machine is 4 years with a $20,880 salvage value remaining at the end of that time period.
Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 2,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. The journal entry to record its purchase on January 1, 2019.
2. The journal entry to record annual depreciation at December 31, 2019.
No. Account Titles and Explanation Debit Credit 1.
Answer:
1. Purchase of Machine A (Dr.) $54,030
Cash (Cr.) $54,030
2. Depreciation Machine A (Dr.) $9,796
Accumulated depreciation (Cr.) $9,796
3. Depreciation Machine B (Dr.) $39,780
Accumulated depreciation (Cr.) $39,780
Explanation:
Machine A :
Cash price $50,000
Sales Tax $3,700
Shipping cost $100
Insurance $60
Installation and Testing $70
Oil and lubricants $100
Total cost of machine = $54,030
Depreciation = ( Cost - Salvage Value ) / Useful Life
Depreciation = ( $54,030 - 5,050 ) / 5 years = $9,796
Machine B :
Depreciation = ( 180,000 - 20,880 ) / 4 = $39,780
Which of the following statement(s) is (are) true regarding the variance/standard deviation of a portfolio of two risky securities? I. The lower the coefficient of correlation between securities, the greater the reduction in the portfolio variance. II. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance. III. The standard deviation of the portfolio decreases at an increasing rate as more stocks are added to the portfolio
Answer:
The degree to which the portfolio variance is reduced depends on the degree of correlation between securities
Explanation:
The variance of a portfolio of 2 risky assets can be equal to zero if the association or connection between the two securities is equal to minus one likewise the investment opportunity set of 2 risky assets shows that all risk-return is an association or combinations of any portfolio of the two securities.
The variance of a portfolio of risky securities is usually said to be the weighted sum of the securities' variances and covariances.
The standard deviation of a portfolio of risky securities is commonly defined as the square root of the weighted sum of the securities' variances and covariances.
The expected return of a portfolio of risky securities is said to be a weighted average of the securities' returns.
Income statement data for Huffman Pharmaceuticals are provided below. Income Statements 12/31/201712/31/2016 Sales Revenue$598,000$724,000 Cost of Goods Sold337,000427,000 Gross Profit261,000297,000 Operating Expenses137,000146,000 Operating Income124,000151,000 Other Income (Expense)60,00023,000 Income before Tax184,000174,000 Income Tax Expense71,00076,000 Net Income$113,000$98,000 Using trend analysis, what percentage should be assigned to Gross Profit
Answer:
Huffman Pharmaceuticals
The percentage that should be assigned to Gross Profit, using trend analysis, is:
= 42%.
Explanation:
a) Data and Calculations:
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Operating Expenses 137,000 146,000
Operating Income 124,000 151,000
Other Income (Expense) 60,000 23,000
Income before Tax 184,000 174,000
Income Tax Expense 71,000 76,000
Net Income $113,000 $98,000
Income Statements 12/31/2017 12/31/2016
Sales Revenue $598,000 $724,000
Cost of Goods Sold 337,000 427,000
Gross Profit 261,000 297,000
Ratio of Gross profit to
Sales Revenue
2017 = $261,000/$598,000 * 100 = 43.65% = 44%
2016 = $297,000/$724,000 * 100 = 41%
Average Gross profit ratio for the two years = 42.5% (44 + 41)/2.
b) Huffman's trend analysis is the use of its past financial performance indices to predict its future financial performances. Past performances are expressed in percentages, forming the basis for predicting and comparing future performances of an entity.
Which group typically predicts trends in industry based on patterns?
O consumers
O economists
O producers
O shippers
Answer:
B economists
Explanation:
Right on edge
Economists is the group that typically predicts trends in industry based on patterns. Therefore, the correct option is option B.
Who is economists?A professional or practitioner inside the social science field of economics is called an economist. The person may also research, create, and use economic theories and concepts, as well as write concerning economic policy. There are numerous sub-fields in this discipline, ranging from broad philosophical ideas to the in-depth examination of details in particular markets, macroeconomic analysis.
Utilising analytical techniques and tools such statistics, financial economics, mathematical finance, econometrics, and computational economics models. Economists are employed in a variety of settings, including academia, government, and business. Economists is the group that typically predicts trends in industry based on patterns.
Therefore, the correct option is option B.
To know more about economists, here:
https://brainly.com/question/31302033
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Ataxia Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 4 years with no salvage value at the end of the 4 years. Ataxia internal rate of return on this equipment is 6%. Ataxia discount rate is also 6%. The payback period on this equipment is closest to (Ignore income taxes.):
Answer: 3.47 years
Explanation:
Payback Period on an investment can be calculated as:
= Cost of investment / Net annual cash inflow
The internal rate of return is the rate that equates the Cost of investment to the annual net cash inflow. This means that if you were to solve for the IRR factor, the formula would be:
= Cost of investment /Net annual cash inflow
Notice how the formulas are the same.
The factor for IRR is therefore the Payback period.
Using your Present value of an Annuity Factor table therefore, find the Factor for the IRR rate of 6% and 4 years.
= 3.4651
= 3.47 years
Tru-Shine is a cleaning company in the United States that offers various cleaning products and services. After gaining popularity in the United States, the company decided to expand its business in other North American nations. The company entered into an agreement with some local cleaning companies in Canada where the local companies would sell its products and services under the same trade name. Tru-Shine also agreed to provide the training and necessary equipments and supplies to the local companies. In this example, the strategy used by Tru-Shine for entering foreign markets is an example of _____.
Answer:
Franchising
Explanation:
Franchising can be understood as a business model where a brand gives up the rights to use its name and operational model to the franchisee who pays royalties on the use of the brand.
This is an insertion strategy in the market that can have many added advantages, since the franchise is generally already a recognized brand with a consistent and standardized business model that helps in the operationalization of business and in attracting customers. The franchise usually offers the franchisee the training and equipment necessary for the business to be well positioned in the market, as in the case of the example, the company Tru-Shine provides training, equipment and supplies necessary for local companies to sell their products and services under the same trade name.
Staples Corporation would have had identical income before taxes on both its income tax returns and its income statements for the years 2020 through 2023 except for a depreciable asset that cost $120,000. The asset was 100% expensed for tax purposes in 2020. However, for accounting purposes the straight-line method was used (that is, $30,000 per year). The accounting and tax periods both end December 31. There were no deferred taxes at the beginning of 2020. The depreciable asset has a four-year estimated life and no residual value. The tax rate for each year was 25%. Pretax GAAP income amounts for each of the four years were as follows:
Year Pretax GAAP Income
2020 $230,000
2021 250,000
2022 240,000
2023 240,000
Required:
Prepare a schedule to compute the increase to income tax payable on December 31, 2020, 2021, 2022, and 2023.
Answer:
Staples Corporation
A Schedule, computing the increase to income tax payable on December 31, 2020, 2021, 2022, and 2023:
Year Pre-tax GAAP Tax- Tax Taxable Income Tax Deferred
GAAP Income able Income Income Payable Expense Liability
(a) (b) (c) 25% 25% (Recovery)
of (c) of (b)
2020 $230,000 $200,000 $110,000 $27,500 $50,000 $22,500
2021 250,000 220,000 250,000 62,500 55,000 (7,500)
2022 240,000 210,000 240,000 60,000 52,500 (7,500)
2023 240,000 210,000 240,000 60,000 52,500 (7,500)
Total $960,000 $840,000 $840,000 $210,000 $210,000 0
Explanation:
a) Data and Calculations:
Cost of depreciable asset = $120,000
Estimated useful life = 4 years
Residual value = $0
Tax depreciation expense = 100% in 2020
GAAP depreciation expense = 25% in 2020, 2021, 2022, and 2023
Tax rate for each year = 25%
Year Pre-tax GAAP Tax- Tax Taxable Income Tax Deferred
GAAP Income able Income Income Payable Expense Liability
(a) (b) (c) 25% 25% (Recovery)
of (c) of (b)
2020 $230,000 $200,000 $110,000 $27,500 $50,000 $22,500
2021 250,000 220,000 250,000 62,500 55,000 (7,500)
2022 240,000 210,000 240,000 60,000 52,500 (7,500)
2023 240,000 210,000 240,000 60,000 52,500 (7,500)
Total $960,000 $840,000 $840,000 $210,000 $210,000 0
2020 Tax Taxable Income = $110,000 ($230,000-$120,000)
GAAP Taxable Income = GAAP minus Annual Depreciation
b) Tax Taxable Income = GAAP income of $230,000 minus 100% depreciation ($120,000) for the first year and 0% for the remaining years. This gives rise to temporary differences in 2020 between the calculated tax payable and the tax expense for the following years. While in the first year, there arose a tax liability, this is offset in subsequent years.
1. Which of the following is an example of inflation?
a. The price of lettuce increases by $0.40 a head overnight.
b. The price level of many things you buy increases over time.
c. The average price level of many things you buy decreased last year.
d. The prices of computers and cellphones increases.
At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $25,000 from the secondary market for $17,800. The bond has a stated annual interest rate of 8 percent payable on June 30 and December 31, and it matures in five years on December 31. Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures
Answer: See explanation
Explanation:
Based on the information given in the question, the interest income reported this year will be:
= ($25000 × 8%/2) × 2
= $25000 × 0.04 × 2
= $2000
The interest income that will be reported in the year the bond matures will be:
= $2000 + ($25000 - $17800)
= $2000 + $7200
= $9200
Question 9 of 15
What is a social platform?
A system that is dedicated to the development and management of an organization's employee policies.
A system that is dedicated to the development and management of customer relations.
A system that enables the development, deployment, and management of human resources solutions and
services.
A system that enables the development, deployment, and management of online interaction solutions and
services.
I don't know this yet.
Answer:
b is it I seen this before
Hoyle Company owns a manufacturing plant with a fair value of $4,600,000, a recorded cost of $8,500,000, and accumulated depreciation of $3,650,000. Patterson Company owns a warehouse with a fair value of $4,400,000, a recorded cost of $6,900,000, and accumulated depreciation of $2,800,000. Hoyle and Patterson exchange assets, with Hoyle also receiving cash of $200,000 from Patterson. The exchange is considered to have commercial substance.
Required:
Record the exchange on the books of:
a. Hoyle
b. Patterson
Answer:
A. Hoyle
Dr Warehouse $4,400,000
Dr Cash $200,000
Dr Accumulated depreciation $3,650,000
Dr Loss on sale of asset $250,000
Cr Manufacturing plant $8,500,000
B. Patterson
Dr Manufacturing plant $4,600,000
Dr Accumulated depreciation $2,800,000
Cr Gain on sale of asset
$300,000
Cr Warehouse $6,900,000
Cr Cash $200,000
Explanation:
A. Preparation of the Jounal entry to Record the exchange on the books of Hoyle
Dr Warehouse $4,400,000
Dr Cash $200,000
Dr Accumulated depreciation $3,650,000
Dr Loss on sale of asset $250,000
(8,500,000-4,400,000-200,000-3,650,000)
Cr Manufacturing plant $8,500,000
B. Preparation of the Jounal entry to Record the exchange on the books of Patterson
Dr Manufacturing plant $4,600,000
Dr Accumulated depreciation $2,800,000
Cr Gain on sale of asset
$300,000
(4,600,000+2,800,000-6,900,000-200,000)
Cr Warehouse $6,900,000
Cr Cash $200,000
Economists argue that the pace of economic growth: Determines the size of the population of a nation over the long term. Determines the standard of life of a nation over the long term. Determines the military capability of a nation over the long term. Determines the unemployment rate of a nation over the long term. Determines the environmental health of a nation over the long term.
Answer: Determines the standard of life of a nation over the long term.
Explanation:
Economists believe that the economic growth of a country determines the standard of living of its people over the long term which is why measures such as GDP per capita exist.
They argue that if the economy is growing, more wealth will be created for citizens to access and the higher production of goods and services will give citizens more choice on what to buy to be able to improve their standard of living.
Can anyone explain me, The demand for resources?
Answer
demand for resources is determined (derived) by the products they help produce. The additional revenue generated by an additional worker (resource). In perfectly competitive product markets the MRP equals the marginal product of the resource times the price of the product.
Answer:
Resource Demand Determinants. With all else equal, an increase in the demand for a product that uses a particular resource will also increase the demand for that resource; likewise, if demand for a product decreases, then the demand for the resource will also decrease. Hence, resource demand is a derived demand. When the demand for gasoline increases, then there will be greater demand for oil and vice versa, since oil is a major component of gasoline and one of its major uses.
Explanation:
Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 30,500 barrels of oil for purchase in June for $75 per barrel. Direct labor budgeted in the chemical process was $274,500 for June. Factory overhead was budgeted at $411,800 during June. The inventories on June 1 were estimated to be:
Oil $19,200
P1 12,900
P2 11,000
Work in process 15,900
The desired inventories on June 30 were:
Oil $21,100
P1 11,800
P2 10,400
Work in process 16,500
Required:
Use the preceding information to prepare a cost of goods sold budget for June.
Answer:
See below
Explanation:
Preparation of cost of goods sold budget for June
Finished goods inventory June 1
Working in process Inventory June 1
Direct materials
Direct materials inventory, June 1
Direct material purchases
Cost of direct materials available for sale
Fitness Fanatics is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The company's Springfield Club reported the following results for the past year:
Sales $1,400,000
Net operating income $70,000
Average operating assets $350,000
Required:
a. Compute the Springfield club's return on investment (ROI), margin and turnover value.
b. Assume that the manager of the club is able to increase sales by $70,000 and that, as a result, net operating income increases by $18,200. Further, assume that this is possible without any increase in operating assets. What would be the club's return on investment (ROI), margin and turnover value?
c. Assume that the manager of the club is able to reduce expenses by $14,000 without any change in sales or operating assets. What would be the club's return on investment (ROI), margin and turnover value?
Answer:
1. 20%
2.25.2%
3.24%
Explanation:
1. Calculation to determine the ROI
Using this formula
ROI= Net income/Average operating assets
Let plug in the formula
ROI= $70,000 / $350,000*100
ROI= 20%
2) ROI = ($70,000 +$18,200)/$350000"100
ROI=$88,200/$350,000*100
ROI=25.2%
3) ROI = ($70,000 +$14,000)/350000*100
ROI=$84,000/$350,000*100
ROI=24%
Finance is best defined as
the tracking and documenting of money or things that are worth money.
the management of money and things that are worth money.
an item, such as a car or a house, that is worth money.
an amount of money a person or organization owes to another person or organization.
Answer:
the management of money and things that are worth money.
Explanation:
Finance is best defined as the management of money and things that are worth money.
Answer:
The answer is B
Explanation:
Appellate courts hear the appeals of decisions made at the trial court level brought by the losing party in the case.
t or f
Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows:
Units Costs
Beginning work in process (30% complete) 118,300
Direct materials $193,000
Conversion cost 345,000
Total cost of beginning work in process $538,000
Number of units started 244,000
Number of units completed and transferred to finished goods 334,900
Ending work in process (65% complete) ________
Direct materials $249,700
Conversion cost 332 000
Total current period costs $581,700
Required:
Using the weighted-average method of process costing, complete each of the following steps:
a. Reconcile the number of physical units worked on during the period.
b. Calculate the number of equivalent units.
c. Calculate the cost per equivalent unit.
d. Reconcile the Total cost of work in process.
Answer:
Part a
Reconciliation of the number of Physical units worked
INPUTS :
Beginning Inventory units 118,300
Add Started during the period 244,000
Total 362,300
OUTPUTS :
Completed and Transferred 334,900
Ending Work In Process 24,400
Total 362,300
Part b
Materials = 359,300 units
Conversion Costs = 350,760 units
Part c
Materials = $1.23
Conversion Costs = $1.93
Part d
Reconcile the Total cost of work in process.
Cost in Beginning Inventory $538,000
Add Costs During the Period $581,700
Total $1,119,700
Cost of Units Still in Process $60,622
Units Completed and Transferred $1,058,284
Total $1,118,506
Explanation:
Step 1 : Equivalent units
These are physical units outputs (completed and transferred and units in process) expressed in terms of percentage of work completed in terms of materials and conversion costs
Materials = 334,900 + 24,400 x 100% = 359,300
Conversion Costs = 334,900 + 24,400 x 65% = 350,760
Step 2 : Cost per Equivalent unit
Cost per Equivalent unit = Total Cost ÷ Total Equivalent Units
therefore,
Materials = ($193,000 + $249,700) ÷ 359,300 = $1.23
Conversion Costs = ($345,000 + $332 000) ÷ 350,760 = $1.93
Total Unit Cost = $1.23 + $1.93 = $3.16
Step 3 : Cost of Units Still in Process and Units Completed and Transferred
Cost of Units Still in Process = 24,400 x $1.23 + 15,860 x $1.93 = $60,622
Units Completed and Transferred = 334,900 x $3.16 = $1,058,284
Refries Refrigerator Company manufactures ice-makers for installation in refrigerators. The costs per unit for 20,000 units of ice-makers, are as follows:
Direct materials. ....... $7
Direct labor.......... $12
Variable overhead ......$5
Fixed overhead............$10
Total costs ...................$34
Cool Compartments Inc. has offered to sell 20,000 ice-makers to Refrigerator Company for $28 per unit. If Refrigerator accepts Cool Compartments' offer, the facilities used to manufacture ice-makers could be used to produce water filtration units. Revenues from the sale of water filtration units are estimated at $80,000, with variable costs amounting to 60% of sales. In addition, $6 per unit of the fixed overhead associated with the manufacture of ice-makers could be eliminated. For Refrigerator Company to determine the most appropriate action to take in this situation, the total relevant costs of make vs. buy, respectively, are:____.
a. $600,000 vs. $560,000.
b. $648,000 vs. $528,000.
c. $600,000 vs. $528,000.
d. $680,000 vs. $440,000.
Answer:
c. $600,000 vs. $528,000.
Explanation:
The computation of the relevant cost of make & buy is given below:
Total relevant cost of making the product is
= (cost per unit - unavoidable fixed cost per unit ) × 20,000 units
= ($34 - $4 ) × 20,000 units
= $600,000.
And, Total relevant cost of buying is
= (cost of buy per unit × 20,000 units ) - Contribution sale of water filtration = ( $28 × 20,000 units ) - ($80,000 - 60% of $80,000)
= $528,000
hence, the option c is correct