Answer:
$4,900
Explanation:
Total variable overhead estimated
= $6 × 50,000
= $300,000
Therefore,
Total overhead estimated = Total variable overhead estimated + Total fixed overhead estimated
= $300,000 + $400,000
= $700,000
Predetermined overhead rate
= $700,000/50,000
= $14 per machine hour
Total overhead applied
= $14 × 100
= $1,400
Therefore,
Total job cost = Direct material + direct labor + total overhead
= $750 + $2,750 + $1,400
= $4,900
Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,400 units. The costs and percentage completion of these units in beginning inventory were:
Cost Percent Complete
Materials costs $6,700 65%
Conversion costs $7,800 45%
A total of 8,500 units were started and 6,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Cost
Materials costs $126,500
Conversion costs $208,000
The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:_____.
a. $18.42.
b. $19.02.
c. $19.91.
d. $17.60.
Answer: $27.14
Explanation:
First find the ending inventory:
= Beginning inventory + Units started - units transferred
= 1,400 + 8,500 - 6,900
= 3,000 units
Conversion EUP = Units transferred + (50% * ending inventory)
= 6,900 + (35% * 3,000)
= 7,950 units
Conversion cost per EUP:
= (Beginning conversion cost + month conversion cost) / EUP
= (7,800 + 208,000) / 7,950
= $27.14
The options are probably for another variant of this question.
Milton Mende purchased the Star Midas Mining Co., Inc., for $6,500. This Nevada corporation was a shell corporation with no assets. Mende changed the name of the corporation to American Equities Corporation (American Equities) and hired Bernard Howard to prepare certain accounting reports so that the company could issue securities to the public. In preparing the financial accounts, Howard (1) made no examination of American Equities' books; (2) falsely included an asset of more than $700,000 on the books, which was a dormant mining company that had been through insolvency proceedings; (3) included in the profit and loss statement companies that Howard knew American Equities did not own; and (4) recklessly stated as facts things of which he was ignorant. Did Howard act unethically
Answer:
Yes. Howard acted unethically as a professional accountant.
Explanation:
With the stated actions of Howard, it is very clear that he did not follow the ethics of his profession. To act ethically as an accountant, Howard should have observed the ethical conducts expected of a professional account. They include observing integrity, confidentiality, and objectivity, demonstrating professional competence and due care, and acting in the public interest. Through his stated reckless assertions, misrepresentation of facts and figures, and lack of due professional care, Howard demonstrated the highest form of unethical behavior.
Last year, a small nation with abundant forests cut down $200 worth of trees. $100 worth of trees was then turned into $150 worth of lumber. $100 worth of that lumber was used to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in the production of trees, lumber, and bookshelves, what is this nation's GDP
Answer:
$400
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Inventory grew by (200 - 100) $100
$50 of value was created
total gdp = $100 + $250 + 50 = $400
The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2021 12/31/2020 Common stock, $5 par; 27 million shares authorized; 22 million shares issued and 19 million shares outstanding at 12/31/2021; and ____million shares issued and ____shares outstanding at 12/31/2020. $ 110 million $ 95 million Additional paid-in capital on common stock 527 million 394 million Retained earnings 204 million 164 million Treasury common stock, at cost, 3 million shares at 12/31/2021 and 1 million shares at 12/31/2020 (79 million) (57 million) Total shareholders’ equity $ 762 million $ 596 million What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2021?
Answer:
$29.6 million per share
Explanation:
Additional share issued = (Issued and shares outstanding 2021 + Additional paid-in capital on common stock 2021) - (Issued and shares outstanding 2020 + Additional paid-in capital on common stock 2020)
Additional share issued = (110 million + 527 million) - (95 million + 394 million)
Additional share issued = 637 million - 489 million
Additional share issued = $148 million
Average price paid = Additional share issued / $5
Average price paid = $29.6 million per share
Rob, a college senior was given $10,000 by an aunt. Before she died, she told
Rob to put the money to work and leave it alone, so that some day he could
leave money to his heirs. Rob is pumped. He has two great ideas, both of which
he learned about on late-night TV. One is to buy foreclosure properties. The
other is to speculate in gold. The people on TV made a killing doing very little
work. Their DVD's will tell him all he needs to know. He asks you which sounds
better to you.
Answer:
Gold
Explanation:
Gold is an long term investment, and has been used for thousands of years
On January 1, JKR Shop had $560,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,700,000 of merchandise, returned $24,200, and paid freight charges of $38,700 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 25%, and the store had $2,110,000 of net sales (at retail) in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter.
Beginning inventory $560,000
Net cost of goods purchased 1,714,500
Cost of goods available for sale 2,274,500
Estimated cost of goods sold 2,274,500
Estimated March 31 inventory $6,920,000
Answer:
Estimated march 31 inventory $586,500
Explanation:
The computation is shown below:
Beginning Inventory $560,000
Net cost of goods purchased $1,714,500 (1700000-24200+38700)
Cost of goods available for sale $2,274,500
Estimated cost of goods sold $1,688,000 ($2110000 ÷ 125 × 100)
Estimated march 31 inventory $586,500
Information for Hobson Corp. for the current year ($ in millions): Income from continuing operations before tax $ 380 Loss on discontinued operation (pretax) 92 Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income 85 Depreciation deducted on tax return in excess of depreciation expense 175 Permanent differences (all related to operating income): Nondeductible portion of entertainment expense 20 The applicable enacted tax rate for all periods is 25%. How should Hobson report tax on the discontinued operation
Answer:
$188
Explanation:
Income from continuing operations before tax $380
Less: Income Tax Expenses $100 [($380+$20)/25%]
Income from continuing operations $280
Less: Loss on discontinued operation (pretax) $92
Income from discontinued operations $188
Enrique Industries purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Enrique's accounting records at the end of the period disclosed a material price variance of $5,000U and a material quantity variance of $3,000F, what is the actual price paid for a gallon of direct material
Answer:
$0.7 = actual price
Explanation:
First, we need to calculate the standard price using the direct material quantity variance:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
3,000 = (11,000*5 - 50,000)*standard price
3,000 = 55,000standard price - 50,000standard price
3,000/5,000 = standard price
$0.6= standard price per gallon
To calculate the actual price paid per gallon, we need to use the direct material price variance:
Direct material price variance= (standard price - actual price)*actual quantity
-5,000 = (0.6 - actual price)*50,000
-5,000 = 30,000 - 50,000actual price
-35,000 = -50,000actual price
$0.7 = actual price
Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity? an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds new federal legislation that raises the legal driving age to twenty-four in all states a new fee that used car dealers must pay to the government on all sales of used cars all of the above because each is consistent with the "law of demand"
A market-clearing price, often referred to as an equilibrium price, is the consumer cost associated with a good or service when supply and demand are equal or nearly equal. Hence quantity will increase .
What is Equilibrium price and quantity ?The manufacturer or vendor is free to transfer as many units as they like, and the consumer is free to access as many units as they like.
Economic equilibrium in economics refers to a scenario where supply and demand are balanced and the values of economic variables do not change in the absence of external factors.
The only price at which consumer and producer preferences coincide is the equilibrium price; in other words, the price at which consumers want to purchase the same quantity of the good (quantity demanded) as producers do.Manufacturers want to sell (quantity supplied).
The equilibrium quantity is that amount that both parties seek equally. Any other price causes the market to be out of equilibrium since the amount requested does not match the quantity supplied. From the previous explanations of surpluses and shortages, it should be obvious that if a market is out of equilibrium, market forces will drive it into equilibrium.
Learn more about Equilibrium here
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# SPJ 2
Using data spanning 2002-2013 from the ACFE Report to the Nations on Occupational Fraud and Abuse, and made available through the Institute for Fraud Prevention (IFP), the authors examined private company FRF cases in comparison to those at public companies and found several key differences. These included the observation that a stronger antifraud environment in public companies appears to lead public company FRF perpetrators to use ____________ perhaps to make the fraud less obvious, rather than other fraud schemes such as fictitious revenues.
Answer:
Skimming Scheme
Explanation:
Skimming scheme is a fraudulent activity which involves taking cash from daily receipts. The total cash is reported lower and the excess of cash is withdrawn by fraudster. This fraud is difficult to catch red handed. The daily cash reporting should be segregated between two or more employees in order to control this fraud.
Instructions
1. Column C. should be type asset liabilitt revenue equity or expense
2. Coloumn D OR E should have a YES OR NO.
3. Fill in debit or credit- which is normal balance of the account, (INCREASE SIDE)
4. Fill in which type of account is it? Temporary or permanent.
Account Name Type: Asset, Will be Will be Normal Temporary or
liability, equity, on the on the Balance Permanent
revenue or Income balance is Debit
Expense statement Sheet or Credit
Cash
Capital Stock
Mortgage Payable
Interest Receivable
Supplies
Account Payable
Short Term Investments
Repair Expense
Unearned Service Revenue
Equipment
Depreciation Expense
Interest Revenue
Salaries Expense
Retained Earnings
Accumulated Depreciation
Utilites Expense
Salaries Payable
Account Receivable
Notes Payable
Service Revenue"
Answer:
I attached a picture of an Excel table I used to work this. I also attached the proper format of the question that I found that helped answer this.
In 2005, a loan broker and appraiser working for a subsidiary of Bank of America appraised the Cassies home at a fair market value of $620,000. Based on that appraisal and other representations by lending personnel, the Cassies elected to refinance their home with a $495,000 adjustable rate mortgage. Lending personnel told them their home would appreciate and they would be able to sell or refinance the home at a later date before having to make higher monthly loan payments. In 2010, the Cassies discovered their home was valued at $250,000. The monthly mortgage payments doubled in size. The Cassies stopped making payments on the mortgage, which had a balance due of $625,000. Soon after, the fair market value of the house was $200,000. Then, the bank foreclosed on the house and the Cassies moved in with family. The Cassies sued Bank of America for fraud. What is the result?
A. The Cassies will lose.
B. The Cassies will recover partial value of their foreclosed home.
C. The Cassies will win.
Answer:
C. The Cassies will win.
Explanation:
In the given case, the cassies would win as this was appraisal fraud that done by the company employee who is a Bank of america Subsidiary. Here the loan broker and the appraiser increase the fair market value of cassies home i.e. $620,000 but it would be lesser that is $250,000. So this inflate the value in order to make the payment of high rate with related to the mortgage
If I buy options contracts for a year out is that profitable instead of day trading/swing trading? Because day trading or swing trading is usually hard to predict but we know when long-term good stocks are always going the upside and with the leverage, an option contract has it could make more than just buying shares. So Buying options contracts a year out is good or not?
Answer:
Active traders often group themselves into two camps: the day traders and the swing traders. Both seek to profit from short-term stock movements (versus long-term investments), but which trading strategy is the better one? Here are the pros and cons of day trading versus swing trading.
he treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 2 percent less than that for preferred stock. Debt can be issued at a yield of 11.4 percent, and the corporate tax rate is 30 percent. Preferred stock will be priced at $63 and pay a dividend of $5.50. The flotation cost on the preferred stock is $8. a. Compute the aftertax cost of debt.
Answer:
7.98 %
Explanation:
Debt is any source that requires repayment of a fixed amount as interest to the holder of the source of finance.
Since we are given the Yield, we can safely use that to calculate the After tax cost of debt as follows
After-tax cost of debt = Interest x ( 1 - tax rate)
= 11.40 % x ( 1 - 0.30)
= 7.98 %
The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:
Debits Credits
Sales revenue 5,400,000
Interest revenue 37,500
Loss on sale of investments 10,000
Loss on debt investments 125,000
Gain on projected benefit obligation 235,000
Cost of goods sold 3,950,000
Selling expense 350,000
Restructuring costs 155,000
Interest expense 20,000
General and administrative
expense 250,000
The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%.
Required:
Prepare a 2021 multiple-step income statement for Rollins Inc. with earnings per share disclosure.
Answer:
Net income = $725,625
Earnings per share = $7.26 per share
Explanation:
The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.
The multiple-step income statement can be prepared as follows:
Rollins Inc.
multiple-step income statement
For the Year Ended December 31, 2021
Details $ $
Sales Revenue 5,400,000
Cost of goods sold (3,950,000)
Gross profit 1,450,000
Operating expenses:
Selling expense (350,000)
General and admin expense (250,000)
Total operating expenses (600,000)
Operating income 850,000
Interest revenue (expense):
Interest revenue 37,500
Interest expense (20,000)
Total Interest revenue (expense) 17,500
Other compreh. income (loss):
Loss on sale of investments (10,000)
Loss on debt investments (125,000)
Gain on projected ben. obligation 235,000
Total other compreh. income (loss) 100,000
Income before tax 967,500
Income taxes (w.1) (241,875)
Net income 725,625
Earnings per share (w.2) 7.26
Workings:
w.1: Income taxes = Income before tax * Effective tax rate = $967,500 * 25% = $241,875
w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26
The following units of an inventory item were available for sale during the year: Beginning inventory 10 units at $55 First purchase 25 units at $60 Second purchase 30 units at $65 Third purchase 15 units at $70 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. The value of ending inventory rounded to the nearest dollar using the weighted average cost method is
Answer:
$3,788
Explanation:
Periodic Inventory is being used. Periodic inventory method determines the cost of sales and inventory after a certain period determined by the company.
Step 1 : Find Cost per unit
Cost per unit = Total Costs ÷ Units available for sale
= $5,050 ÷ 80
= $63.125
Step 2 : Determine value of ending inventory
Value of ending inventory = Cost per unit x units remaining
= $63.125 x 60 units
= $3,788
Meredith, Linda, and Peter are working together in a project team at a home appliances company. They had to select two out of five new products to be introduced in the next quarter. The team has a conflict over the choice of those two products. (a) Meredith, who is uncomfortable with confrontations, chooses to remain neutral by staying away from the argument. (b) Linda and Peter had a few arguments which were finally resolved when Linda gave in to Peter's demands.
In this situation, (a) Meredith used the____style of conflict resolution and (b) Linda used the_____style of conflict resolution.
Answer:
a) avoiding
b) accommodation
Explanation:
a) Meredith feels uncomfortable with confrontations, she chooses to remain neutral while staying away from the discussion, so it is correct to say that she used the style of avoiding conflict resolution, which occurs when individuals prefer to avoid a situation that can generate conflicts as in the case described in the matter, and so they prefer to act diplomatically avoiding confrontations and not giving opinions contrary to a given situation.
b) Linda used the accommodation style as she gave in to Peter's demands for the choice of products. In this style, the individual values the relationship with the other individual above his personal opinion, and therefore gives up on maintaining the conflict because of a situation that is less important to him than the maintenance of the relationship.
Freeman Company's accounting records include the following information: Payments to suppliers $ 47,000 Collections on accounts receivable 99,000 Cash sales 26,000 Income taxes paid 4,400 Equipment purchased 14,900 What is the amount of net cash provided by operating activities indicated by these transactions?
Answer:
$73,600
Explanation:
Cash flow from Operating Activity
Cash sales $26,000
Collections on accounts receivable $99,000
Payments to suppliers ($47,000)
Cash generated from operations $78,000
Income taxes paid ($4,400)
Net cash provided by operating activities $73,600
therefore,
the amount of net cash provided by operating activities indicated by these transactions is $73,600
Consider the free cash flow approach to stock valuation. Utica Manufacturing Company is expected to have before-tax cash flow from operations of $500,000 in the coming year. The firm's corporate tax rate is 30%. It is expected that $200,000 of operating cash flow will be invested in new fixed assets. Depreciation for the year will be $100,000. After the coming year, cash flows are expected to grow at 6% per year. The appropriate market capitalization rate for unleveraged cash flow is 15% per year. The firm has no outstanding debt. The projected free cash flow of Utica Manufacturing Company for the coming year is _______.
Answer:
$180,000
Explanation:
Calculation for what The projected free cash flow of Utica Manufacturing Company for the coming year is
First step is to calculate After-tax unleveraged income
Before-tax cash flow from operations $500,000
Less Depreciation $100,000
Taxable income$400,000
($500,000-$100,000)
Less Taxes $120,000
(30%*400,000)
After-tax unleveraged income$280,000
($400,000-$120,000)
Now let calculate The PROJECTED FREE CASH FLOW
After-tax unlevered income + depreciation $380,000
($100,000+$280,000)
Less New investment $200,000
Free cash flow$180,000
($380,000-$200,000)
Therefore The projected free cash flow of Utica Manufacturing Company for the coming year is $180,000
Karim Corp. requires a minimum $8,100 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,500 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $ 24,100 $ 32,100 $ 40,100
Cash payments 28,150 30,100 32,100
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
KARIM CORP.
Cash Budget
For July, August, and September
July August September
Beginning cash balance $8,500
Cash receipts 24,100
Total cash available 32,600
Cash payments
Interest revenue
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month $0
Additional loan (loan repayment)
Loan balance - End of month
Answer:
a. Ending Cash Balance are as follow:
July = $8,100
August = $8,100
September = $14,343
b. Loan Balance End of Month are as follows:
July = $3,650
August = $1,723
September = $0
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
July Additional loan = Minimum required cash balance - July Preliminary cash balance = $8,100 - $4,450 = $3,650
August Loan repayment = August Preliminary cash balance - Minimum required cash balance = $10,027 - $8,100 = $1,927
September Loan repayment = Loan Balance End of Month at the beginning of September = $1,723
If a company's scope is too big what is likely to happen?
Answer:
The company will lose direction and focus.
Explanation: ;)
Month-end & Year-end process helps to write-off bad debts.
Select one:
True
O False
Answer:
False
Explanation:
It is FALSE that Month-end and Year-end process helps to write-off bad debts.
This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.
Bad debt is written off only when a customer invoice is deemed to be uncollectible.
Two methods can be used to produce solar panels for electric power generation. Method 1 will have an initial cost of $740,000, an AOC of $190,000 per year, and $135,000 salvage value after its 3-year life. Method 2 will cost $870,000 with an AOC of $135,000 and a $170,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a three-year planning period. You estimate the salvage value of Method 2 will be 37% higher after three years than it is after five years. If the MARR is 14% per year, which method should the company select
Answer:
method 2 should be selected
Explanation:
The computation is shown below:
For Method 1
Value = $740,000 + $190,000 ÷ 1.14 + $190,000 ÷ 1.14^2 + $190,000 ÷ 1.14^3 - $135,000 ÷ 1.14^3
= $1,089,988.93
For Method 2
Value = $870,000 + $135,000 ÷ 1.14 + $135,000 ÷ 1.14^2 + $135,000 ÷ 1.14^3 - $170,000 × 1.37 ÷ 1.14^3
= $1,026,219.458
As we can see that in the method 2 there is a less cost as compared with method 1
So, method 2 should be selected
The daily cost of producing pizza in New Haven is C(Q) = 4Q + (Q2/40); the marginal cost is MC = 4 + (Q/20). There are no avoidable fixed costs. What is the market supply function if there are 10 firms making pizza? If 20 firms are making pizza? What is the market supply curve under free entry? [HINT: As the first step, find the AC and show that AC is at its minimum when Q = 0.]
Answer:
[tex]q_{10}[/tex] = 200P - 800
[tex]q_{20}[/tex] = 400P - 1600
Explanation:
let the supply function be : P = MC
P = 4 + Q/20
therefore Q = 20P - 80 ( supply function )
For 10 firms
Q = 10( 20P - 80 ) = 200P - 800
for 20 firms
Q = 20(20P - 80 ) = 400P - 1600
next determine market supply curve under free entry
AC = 4 + Q/40
Hence ; when Q = 0 , AC = 4 and this is for unlimited number of firms
Bellue Incorporated manufactures a single product. Variable costing net operating income was $92,400 last year and its inventory decreased by 3,100 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year
Answer:
6,000
Explanation:
Bellue incorporated manufactures a single product
The variable costing net operating income is $92,400
The inventory is 3100 units
The fixed manufacturing overhead cost is $1
Therefore the absorption cost can be calculated as follows
= 9200-1 x3200
= 9200- 3200
= 6000
Hence the absorption cos is $6,000
Winston Company estimates that the factory overhead for the following year will be $478,800. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,600 hours. The total machine hours for the year were 54,000 hours. The actual factory overhead for the year was $986,000. Enter the amount as a positive number.
Answer:
Results are below.
Explanation:
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= 478,800 / 26,600
Predetermined manufacturing overhead rate= $18 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 18*54,000
Allocated MOH= $972,000
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 986,000 - 972,000
Underallocated overhead= $14,000
The following were selected from among the transactions completed by Babcock Company during November of the current year. Babcock uses the net method under a perpetual inventory system.
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4 Sold merchandise for cash, $38,210. The cost of the goods sold was $20,810.
5 Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice.
6 Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
8 Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the goods sold was $10,190.
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14 Sold merchandise on VISA, $231,570. The cost of the goods sold was $142,060.
15 Paid Papoose Creek Co. on account for purchase of November 5.
23 Received cash on account from sale of November 8 to Quinn Co.
24 Sold merchandise on account to Rabel Co., $54,800, terms 1/10, n/30. The cost of the goods sold was $33,850.
28 Paid VISA service fee of $3,580.
30 Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140.
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSBabcock CompanyGeneral Ledger
ASSETS
110 Cash
121 Accounts Receivable-Quinn Co.
122 Accounts Receivable-Rabel Co.
125 Notes Receivable
130 Inventory
131 Estimated Returns Inventory
140 Office Supplies
141 Store Supplies
142 Prepaid Insurance
180 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
211 Accounts Payable-Moonlight Co.
212 Accounts Payable-Papoose Creek Co.
216 Salaries Payable
218 Sales Tax Payable
219 Customer Refunds Payable
221 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
521 Delivery Expense
522 Advertising Expense
524 Depreciation Expense-Store Equipment
525 Depreciation Expense-Office Equipment
526 Salaries Expense
531 Rent Expense
533 Insurance Expense
534 Store Supplies Expense
535 Office Supplies Expense
536 Credit Card Expense
539 Miscellaneous Expense
710 Interest Expense
Answer and Explanation:
The journal entries are shown below:
On Nov 3
Merchandise Inventory $62,300 ($89,000 × (1-30%))
To Accounts Payable-Moonlight Co $62,300
(Being inventory purchased on account)
On Nov 4
Cash $38,210
To Sales $38,210
(Being cash is recorded)
Cost of goods sold $20,810
To Merchandise Inventory $20,810
(Being cost of inventory is recorded)
On Nov 5
Merchandise Inventory $52,280 ($51,550 + $730)
To Accounts Payable-Papoose Creek $52,280
(Being inventory purchased on account)
On Nov 6
Accounts Payable-Moonlight Co. $14,000
To Merchandise Inventory $14,000
(Being returned goods is recorded)
On Nov 8
Accounts Receivable-Quinn Co $ 15,010
To Sales $15,010
(Being sales is recorded)
Cost of goods sold $10,190
To Merchandise Inventory $10,190
(Being cost of inventory is recorded)
On Nov 13
Accounts Payable-Moonlight Co. 48,300 (62,300- 14,000)
To Cash 47,334
To Merchandise Inventory 966 ($48,300 × 2%)
(being cash paid is recorded)
On Nov 14
Cash $231,570
To Sales $231,570
(Being cash is recorded)
Cost of goods sold $142,060
To Merchandise Inventory $142,060
(Being cost of inventory is recorded)
On Nov 15
Accounts Payable-Papoose Creek $52,280
To Cash $51,249
To Merchandise Inventory 1,031 ($51,550 ×2%)
(Being cash paid is recorded)
On Nov 23
Cash $15,010
To Accounts Receivable-Quinn Co $15,010
(Being cash collection is recorded)
On Nov 24
Accounts Receivable-Rabel Co. $54,800
To Sales $54,800
(being sales is recorded)
Cost of goods sold $33,850
To Merchandise Inventory $33,850
(Being cost of inventory is recorded)
On Nov 28
VISA service fees $3,580
To Cash $3,580
(Being cash paid is recorded)
On Nov 30
Sales returns and allowances $6,420
To Cash 6,420
(Being sales return is recorded)
Merchandise Inventory 3,140
To Cost of goods sold $3,140
(Being returned inventory is recorded)
The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,098,900. The conversion cost for the period in the Bottling Department is $603,000. The total equivalent units for direct materials and conversion are 33,300 liters and 6,700 liters, respectively. Determine the direct materials and conversion cost per equivalent unit.
Answer:
direct materials = $33.00
conversion cost = $90.00
Explanation:
Cost per equivalent unit = Cost during the period ÷ Equivalent units of Production
The direct materials and conversion cost per equivalent unit.
Direct materials = $1,098,900 ÷ 33,300 liters = $33.00
Conversion cost = $603,000 ÷ 6,700 liters = $90.00
define regulation economics.
Answer and Explanation:
Regulatory economics is the economics of regulation. It is the application of the law by government or independent administrative agencies for various purposes, including remedying market failure, protecting the environment, and economic management
Answer:
regulation economics is the economics of regulation. It is the application of the law by government or independent administrative agencies for various purposes
A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising it sells 350 units. For each additional $3000 spent, an additional 15 units are sold.
A) If x is the amount of money that the company spends on advertising, find a formula for y, the number of units sold as a function of x.
B) How many units does the firm sell if it spends $25,000 on advertising?
C) How many units does the firm sell if it spends $50,000 on advertising?
D) How much advertising money must be spent to sell 700 units?
E) Which of the following statements correctly explains the meaning of the slope?
1. If the company spends an additional $1000 on advertising, it will increases the number of units it sells by 10.
2. In order to sell one more unit, the company would need to increase the amount it spends on advertising by $100.
3. If the company spends an additional $0.01 on advertising, it will sell one more additional unit.
4. If the company increases the amount of money it spends on advertising by $300, it will double the number of units it sells.
5. None of the above.
Answer:
A. y = 0.005x + 350
B. 475 units
C. 600 units
D. $70,000
E. None of the above
Explanation:
A)
If the company spend $3,000 on advertisement then it can sell 15 additional units. Total the company can sell 350 units without any advertisement. Then assuming linear relationship the equation will be:
y = 15 /3000 x + 350
y = 1 / 200 x + 350
y = 0.005x + 350
B) y = 0.005 (25,000) + 350
y = 475
C) y = 0.005 (50,000) + 350
y = 600
D) $3,000 / 15 units = $200 per unit
Since 350 units are sold without any cost then additional 350 units will be sold by,
350 units * 200 $ = $70,000