Answer:
$500
Explanation:
2012 Income Statement
Revenue $2,000
Expenses
Wages incurred and paid $500
Salaries $400
Interest on bank loans $600 $1,500
Net Income $500
So, the amount of $500 will be shown as Net Income on the 2012 Income Statement.
why does crime exist?
Answer:
well for me I think
Explanation:
The world is polluted
a ____ is paid work that gives you experience to lead to a new job
A. Career
B. Job
C. occupation
D. Skill
Answer:
B. Career.
Explanation:
A Career is an Occupation where you can earn better jobs in any given field with progress and experience.
The trial balance of Sheffield Corp. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventory $18,870; Purchases $224,790; Sales Revenue $204,200; Freight-In $9,780; Sales Returns and Allowances $4,720; Freight-Out $2,740; and Purchase Returns and Allowances $5,430. The ending inventory is $20,100.Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022.
Answer:
Particulars Amount
Beginning inventory, September 1, 2013 $18,870
Purchase $ 224,790
Less: Purchase return and allowance $ 5,430
Net purchase $ 219,360
Add: Freight in $9,780
Cost of goods purchased $229,140
Cost of goods available for sale $248,010
Less: Inventory August 31,2014 $20,100
Cost of goods sold $227,910
Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are:
Answer:
Actual results are missing, so I looked for a similar question and found:
Actual results for the year are: Actual production (units) 594,000 Actual variable overhead $928,000 Actual direct labor hours (AH) 446,000 Actual fixed overhead $835,600
1. Compute the applied fixed overhead
2. Compute the fixed overhead spending and volume variances
1) budgeted labor hours = 600,000 units x 0.75 labors hours per unit = 450,000 labor hours
standard fixed overhead rate = $832,500 / 450,000 labor hours = $1.85 per labor hour
applied fixed overhead = actual labor hours x standard fixed overhead rate = 446,000 x $1.85 = $825,100
2) Fixed overhead volume variance = applied fixed overhead – budgeted fixed overhead = $825,100 - $832,500 = -$7,400 favorable
Fixed overhead spending variance = actual fixed overhead - applied fixed overhead = $835,600 - $825,100 = $10,500 unfavorable
total fixed overhead variance = -$7,400 + $10,500 = $3,100 unfavorable
The following information is available for Windsor Corporation for the year ended December 31, 2022.
Beginning cash balance $40,000
Accounts payable decrease 3,300
Depreciation expense 82,000
Accounts receivable increase 9,200
Inventory increase 12,300
Net income 337,500
Cash received for sale of land at book value 40,000
Sales revenue 740,500
Cash dividends paid 10,100
Income tax payable increase 4,900
Cash used to purchase building 149,500
Cash used to purchase treasury stock 37,000
Cash received from issuing bonds 225,000
Answer:
Windsor Corporation Statement of Cashflows For
Year Ended December 31, 2022
Cashflow from Operating Activities:
Net Income $337,500
Adjustments to reconcile net income to
Net Cashflow from Operating Activities:
Add: Depreciation 82,000
Less: Accounts Payable decrease (3,300)
Accounts Receivable increase (9,200)
Inventory increase (12,300)
Add: Income tax payable increase 4,900
$62,100
Net cashflow: Operating Activities $399,600
Cashflow from Investing activities:
Add: Sale of Land 40,000
Less: Purchase of Building (149,500)
Net cashflow: Investing activities ($109,500)
Cashflow from Financing activities:
Less: Cash dividends paid (10,100)
Purchase of treasury stock (37,000)
Add : Bond issuance 225,000
Net cashflow: Financing activities $177,900
Total Cashflow increase (decrease) $468,000
Beginning Cash balance $40,000
Ending Cash balance $508,000
If the Fed were to unexpectedly increase the money supply, creditors would gain at the expense of debtors. a. True b. False
Answer: False
Explanation:
It should be noted that when the Fed unexpectedly increase the money supply, the debtors would gain at the expense of the creditors.
This is because when the Fed increase the money supply, there will more money in circulation which means that money will lose its value. In this case, the debtor gains at the expenses of the creditor because when the creditor collects the money back, it won't be as valuable as before as the value has reduced
Construction ManagementA construction company is building a new neighborhood, and they are currently working on the design. Each house will be built using one of three main materials (e.g., wood, brick, or concrete), but no side-by-side houses can be made of the same material. Because each house will be of varying size and complexity, the cost of the materials for each house varies. Given the cost of using each material for each house, what is the minimum cost needed to complete the neighborhood
Answer:
Answer is described below.
Explanation:
POINTS TO NOTE:
1. Each house will be built using one (only one) of three major building materials - wood, brick, concrete.
2. The linear (in a line or side-by-side) arrangement of the houses will be such that no house will have the same material as the one beside it.
3. The cost of materials for each house will vary.
ANSWER: The minimum cost needed to complete the neighborhood depends on two things;
- The cost of each type of house (cost of a wood house, cost of a brick house, cost of a concrete house)
- The number of each type of house to be built. Or, the number of houses to be built; bearing in mind that they must be arranged without consecutive repetition. Hence, how much will a wood house cost? How much will a brick house cost? How much will a concrete house cost?
Knowing these, the minimum cost needed to complete the neighborhood can be found. If it's going to be 6 houses in the neighborhood for instance and a wood house costs $40, a brick house costs $50 and a concrete house costs $60; the minimum cost to set up the neighborhood will be:
2(40) + 2(50) + 2(60) = 80+100+120 = $300
The number of each type of house will be 2 because same-material houses cannot stay side-by-side. If the rule wasn't there and all the houses were to be concrete, the total cost would be 6(60) = $360
Stock in CDB Industries has a beta of .97. The market risk premium is 7.2 percent, and T-bills are currently yielding 4.2 percent. The most recent dividend was $2.60 per share, and dividends are expected to grow at an annual rate of 5.2 percent indefinitely. If the stock sells for $48 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
11.04%
Explanation:
Using CAMP
Cost of Equity= Risk Free rate +Beta *Market risk Premium
= 4.2% + 0.97 *7.2%
= 11.18%
Using Dividend Discount Model:
Cost of Equity = (D1 / P0)+g
g= Growth rate =5.2% =0.052
D1 = Current Dividend * (1+g) = 2.60 * (1 +0.052) = 2.7352
P0 = Current Price =$48
Hence Cost of Equity = (2.7352 /48) + 0.052
=0.10898
=10.90%
Average Cost of Equity = (11.18+ 10.9 )/ 2 = 11.04%
Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
$600 8% $1,393
850 12 2,330
18,800 18 367,247
21,900 14 382,983
Answer:1)10.94years , 2.) 8.90 years 3) 17.96years 4) 21.84years
Explanation:
Using the formula
FV = PV (1 + r)ⁿ
where
PV=present value
r=interest rate
n =number of periods
FV = future value.
Present Value Years Interest Rate Future Value
$600 ? 8% $1,393
850 ? 12 2,330
18,800 ? 18 367,247
21,900 ? 14 382,983
Using FV = PV (1 + r)ⁿ, The number of years can be calculated
FV/PV = (1 + r)ⁿ
FV/PV/ 1+r = eⁿ
In FV/PV / In ( 1+ r) = n
1)
n ( Number of years )=In FV/PV / In ( 1+ r)
=In ( 1,393/600) / In ( 1+ 0.08)
0.84228/0.07696
=10.94years
2.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In (2330/850) / In ( 1+ 0.12)
1.00837625/0.113328685
=8.90 years
3.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In (367,247/ 18,800) / In ( 1+ 0.18)
2.97217778/0.165514438
=17.96years
4.
n ( Number of years )=In FV/PV / In ( 1+ r)
=In ( 382,983/ 21,900) / In ( 1+ 0.14)
2.86150396/0.131028262
=21.84 years
Diamond and Turf Inc. is considering an investment in one of two machines. The sewing machine will increase productivity from sewing 130 baseballs per hour to sewing 234 per hour. The contribution margin per unit is $0.48 per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic packing machine for the golf ball line. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $26 per hour. The sewing machine will cost $305,500, have an eight-year life, and will operate for 1,400 hours per year. The packing machine will cost $131,800, have an eight-year life, and will operate for 1,200 hours per year. Diamond and Turf seeks a minimum rate of return of 12% on its investments.Present Value of an Annuity of $1 at Compound InterestYear 6% 10% 12% 15% 20%1 0.943 0.909 0.893 0.870 0.8332 1.833 1.736 1.690 1.626 1.5283 2.673 2.487 2.402 2.283 2.1064 3.465 3.170 3.037 2.855 2.5895 4.212 3.791 3.605 3.353 2.9916 4.917 4.355 4.111 3.785 3.3267 5.582 4.868 4.564 4.160 3.6058 6.210 5.335 4.968 4.487 3.8379 6.802 5.759 5.328 4.772 4.03110 7.360 6.145 5.650 5.019 4.192A. Determine the net present value for the two machines. Use the table of present values of an annuity of $1 above.B. Determine the present value index for the two machines.C. If Diamond and Turf has sufficient funds for only one of the machines and qualitative factors are equal between the two machines, in which machine should it invest?
Answer:
A) Sewing machine:
initial outlay = -$305,500
net cash flow per year = (234 baseballs per hour - 130 baseballs per hour) x 1,400 hours x $0.48 per baseball = $69,888
NPV = -$305,500 + ($69,888 x 4.968) = -$305,500 + $347,203.58 = $41,703.58
Packing machine:
initial outlay = -$131,800
net cash flow per year = 1,200 hours x $26 per hour = $31,200
NPV = -$131,800 + ($31,200 x 4.968) = -$131,800 + $155,001.60 = $23,201.60
B) PVI of sewing machine = $347,203.58 / $305,500 = 1.137
PVI of packing machine = $155,001.60 / $131,800 = 1.176
C) They should invest in the packing machine since its PVI is higher, meaning that it increases the company's value by a higher amount per dollar invested.
Alma, a sales associate, receives a 20% employee discount. Because she was the top sales associate of the month, Alma was given an additional 10% discount for the month of March. During March, Alma purchased a pair of running shoes for $89.50, a running suit for $129.99, two pairs of socks at $4.00 each and a t-shirt for $21.50. What was the dollar amount of Alma's purchases, including a 7.5% sales tax
Answer:
$187.365
Explanation:
Alma Purchases
Shoes $89.5
Running Suit $129.99
Socks 2 Paris $8
T-Shirts $21.5
Total purchase $248.99
Less: Discount $74.697 [30% * $248.99{
Less: Sales Tax $13.07198 {7.5% * $248.99}
Total Amount $187.365
Thus, the dollar amount of Alma's purchases, including a 7.5% sales tax is $187.365.
The dollar amount of Alma's purchases is $187.365.
What are purchases?In accounting, Purchases refer to the cost of buying goods or inventory during a period for the purpose of further production or resale. The amount of net purchases is calculated by adjusting the returns and discounts.
The total purchases of Alma will be:
[tex]\rm Total \:purchases = Running\: shoes + Running \:suit + Socks +T-shirt \\\\\rm Total \:purchases= \$89.50 + 129.99 + (\$4.00 \times 2) + \$21.50\\\\\rm Total \:purchases = \$248.99[/tex]
The amount of discount will be 30% of total purchases:
[tex]\rm Discount = Total\:purchases \times Rate\\\\\rm Discount = \$248.99 \times 30\%\\\\\rm Discount = \$74.697[/tex]
The sales tax amount will be:
[tex]\rm Sales \:tax = Total purchases \times Rate\\\\\rm Sales\: tax = 248.99 \times 7.5\%\\\\\rm Sales\: tax =\$18.67425[/tex]
Therefore the net purchase after sales tax will be:
[tex]\rm Net\:purchases = Total\:purchases - Discount - Sales\:tax \\\\\rm Net\:purchases = \$248.99 - \$74.697- \$18.67425\\\\\rm Net\:purchases = \$$187.365[/tex]
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Given the same demand and cost conditions, a revenue maximizing hospital will: a. Charge a higher price and produce more medical care than a profit maximizing hospital b. Charge a higher price and produce more medical care than an output maximizing hospital c. Charge a higher price and produce less medical care than an output maximizing hospital d. Charge a higher price and produce less medical care than a profit maximizing hospital
Answer:
c. Charge a higher price and produce less medical care than an output maximizing hospital
Explanation:
A revenue maximising firm's goal is to make the highest possible profit while the goal of an output maximising firm is to produce the highest possible number of output.
So, for a a revenue maximizing hospital, price would be higher but it would produce less medical care due to the law of demand.
The law of demand says the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
While for the output maximising hospital, it would produce more output and charge a lower price than a revenue maximizing hospital
Margaret Lindley paid $15,040 of interest on her $300,400 acquisition debt for her home (fair market value of $500,400), $4,040 of interest on her $30,040 home-equity loan, $1,040 of credit card interest, and $3,040 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,040 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year
Answer:
$23,160
Explanation:
The Total interest = 15,040 + 4040 + 1040 + 3040
Total interest = $23,160
Hence, the Interest deductable this year = $23,160
A company has $110,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $1,000 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Answer:
Provision on accounts receivable = $110,000 * 4% = $4,400
Total allowance for doubtful accounts = $4,400 - $1,000 = $3,400
Date Account Titles and Explanation Debit Credit
Bad debt expense $3,400
Allowance for doubtful accounts $3,400
(To record the bad debt expense)
The table below lists the insurance options offered by AA Auto Insurance. Calculate the monthly payment for an insurance plan including the following options:
Bodily Injury: $50/100,000
Property Damage: $100,000
Collision: $500 deductible
Comprehensive: $100 deductible
AA Auto Insurance
Type of Insurance Coverage
Coverage Limits
Annual Premiums
Bodily Injury
$25/$50,000
$22.50
$50/100,000
$31.75
$100/300,000
$40.25
Property Damage
$25,000
$120.50
$50,000
$144.75
$100,000
$193.00
Collision
$100 deductible
$520.00
$250 deductible
$415.25
$500 deductible
$275.75
Comprehensive
$50 deductible
$110.25
$100 deductible
$100.00
a.
$50.04
b.
$50.90
c.
$54.31
d.
$68.73
Based on the information given, it can be deduced that the monthly payment for the insurance plan will be A. $50.04.
An insurance simply means a protection from financial loss. It's simply used on hedging against the risk of an uncertainty.
A deductible simply means the amount of money that an individual will pay towards an insured loss. From the table, the monthly payment for the insurance plan will be $50.04.
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Answer:
The answer would be A
Explanation: I Took the quiz
Which of the following decisions is part of the HR function of compensation?
A. What responsibilities should be part of an office worker's job
B. How to make sure office workers are treated ethically
C. Which employees will do the best work in the fastest time
D. Whether to pay office workers a wage or a salary
Answer:
D. Whether to pay office workers a wage or a salary
Explanation:
Compensation refers to the regular payments that employers extend to employees for work done. It is the reward employees get for rendering services to the employer.
The compensation scheme is an organization is managed by the Human resources department ( HR). The HR manager, in consultation with other managers, set the amount of compensation and benefits that each employee in the organization is entitled to.
It is the HR that decides the contracts to award employees, whether permanent or temporary. HR determines whether to pay wages or salaries.
Answer:
Whether to pay office workers a wage or a salary
Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)
Assets Liabilities and Stockholders' Equity
2006 2005 2006 2005
Current Assets Current Liabilities
Cash 63.6 58.5 Accounts payable 87.6 73.5
Accounts receivable55.5 39.6 Notes payable 10.5 9.6
sort term debt
Inventories 45.9 42.9 Current maturities of 39.9 36.9
long-term debt
Other current assets6.0 3.0 Other current liabilities 6.0 12.0
Total current assets 171.0 144.0 Total current liabilities 144.0 132.0
Long-Term Assets Long-Term Liabilities
Land 66.6 62.1 Long-term debt 239.7 168.9
Buildings 109.5 91.5 Capital lease 0 0
obligations------
Equipment 119.1 99.6 Total Debt 239.7 168.9
Less accumulated(56.1) (52.5) Deferred taxes 22.8 22.2
depreciation
Net property, plant, 239.1 200.7 Other long-term liabilities ------
and equipment
Goodwill 60.0 -- Total long-term liabilities 262.5 191.1
Other long-term 63.0 42.0 Total liabilities 406.5 323.1
assets
Total long-term assets362.1 242.7 Stockholders' Equity 126.6 63.6
Total Assets 533.1 386.7 Total liabilities and 533.1 386.720
Stockholders' Equity
Refer to the balance sheet above.What is Luther's net working capital in 2005?
A) $12 million
B) $27 million
C) $39 million
D) $63.6 million
Answer:
A) $12 million
Explanation:
The computation of the working capital for the year 2005 is as follows:
As we know that
Working capital is
= Current assets - current liabilities
= $144 million - $132 million
= $12 million
Hence, the working capital for the year 2005 is $12 million
So the correct option is A
The same is to be considered
A crossword puzzle is looking for another word for "fair." Which of the following would not be a good choice?
a. Common
b. Insufficient
c. Middling
d. Ordinary
Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: Contribution margin per unit Contribution margin ratio Break-even in units A) Increases Increases Decreases B) No change No change No change C) No change Increases No change D) Increases No change Decreases Option C Option B Option D Option A
Answer:
D) Increases No change Decreases
Explanation:
Contribution margin is Sales less Variable Costs. This will increase if the selling price per unit and the variable expense per unit both increase.
Contribution margin ratio is Contribution expressed as a percentage of Sales. This will stay the same when the selling price per unit and the variable expense per unit both increase by the same percentage.
Break-even in units is Fixed Costs divided my contribution per unit. This will decrease as the Contribution margin has increased.
Secondary data consist of ________. Group of answer choices information collected for the specific purpose at hand data that does not age information that already exists somewhere, having been collected for another purpose information collected from conducting personal, in-depth interviews data that is unreliable and unsuitable for the purpose of making marketing decisions
Answer:
information that already exists somewhere, having been collected for another purpose
Explanation:
In data collection there are two main types based in the source and the purpose for which it is collected.
Primary data collection is done mainly for a particular purpose. It is the first time data is collected for that reason.
Secondary data is one that is collected from primary sources. It is collected from data compiled for other purposes in the past.
The data is now seen as being useful for another activity so it is reused.
Examples are information from newspapers, diaries, transcripts, and financial statements
Liam has been employed by the skateboard company, Alien Workshop for two years. Each February, Liam meets with his boss, Brandon, at Bill’s Cafe to review his employee performance over the last 12 months. Brandon reviews Liam’s prior year goals, discusses his performance and whether he met his performance expectations, and then sets goals for Liam to accomplish over the coming year. Brandon has just conducted ________ with Liam.
Answer:
a performance appraisal
Explanation:
Looking at the information above, it is possible to say that Chief Brandon conducted a performance appraisal with Liam.
Performance appraisal is a method that the organization uses to provide feedback to employees on their performance in fulfilling their tasks and obligations in their position at the company.
This review can happen in different periods of time according to the need perceived by each organization, and its central objective is to make an in-depth analysis of the employee's performance, so that possible occurrences in relation to their work are justified and so that the employee can check how your overall performance is doing and look for ways to improve your performance and become more productive and motivated in your position.
The following information is also available: A) A count of supplies revealed $1,800 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers four years. C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Answer:
the requirements are missing, but I guess that you need to make the year-end adjustment entries
A) A count of supplies revealed $1,800 worth on hand at December 31, 2018.
Dr Supplies expense 2,000
Cr Supplies 2,000
B) An insurance policy, purchased on January 1, 2018, covers four years.
Dr Insurance expense 1,900
Cr Prepaid insurance 1,900
C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018.
Dr Depreciation expense 2,400
Cr Accumulated depreciation 2,400
D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.
Dr Deferred revenues 6,000
Cr Service revenue 6,000
E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Dr Wages expense 3,400
Cr Wages payable 3,400
Cypgef 252 Corporation has two products, Beautiful and Gorgeous. In the last period, the Cypgef252 Corporation's net operating income was $20,500, and the common fixed expenses were $45,000. (ID#56034) The contribution margin ratio for Product Beautiful was 40%, its sales were $130,000, and its segment margin was $37,000. Q: If the contribution margin for Product Gorgeous was $35,000, what was the segment margin for Product Gorgeous?
A. $28,500
B. $37,000
C. $8,000
D. $65,500
Answer:
segment margin Gorgeous= $28,500
Explanation:
Giving the following information:
Beatiful:
Segment margin= $37,000
Net income= $20,500
Common fixed costs= $45,000
To calculate the segment margin of Gorgeous, we need to use the following formula:
Net income= segment margin Beatiful + segment margin Gorgeous - common fixed costs
20,500= 37,000 + segment margin Gorgeous - 45,000
segment margin Gorgeous= $28,500
Which of the following should you keeo in mind when targeting high-level networkers on sites such as LinkedIn?
A. You should only request a connection if you know the person.
B. You should tell the person how she/he can help you.
C. You should make sure that the person has at least 100 connections.
D. You should make sure that the person is active on the site.
Answer:
I took the test and it's NOT you should only request a connection if you know the person
Explanation:
Answer:
You should make sure the person is active on the site
Explanation:
I took the test and this was the correct answer
1.How we can measure uncertainty in the environment? Define it with the help of relevant grid. Also provide at least one example of an organization for each quadrant of the grid. Mention the examples in the grid below in their respective cells.
Answer:
Ujhvfhibsbsjsneudnddjideh
At which stage of project management do you need to discuss and clarify doubts about the project with the client?
А. risk mitigation
B. project Initiation
C. project planning
D. project execution
Answer:
C. Project Initiation
Explanation:
You typically should sort out all questions and concerns about a project to a client before the actual work on the project begins. Project Initiation is sort of pre-planning: it is pitching an idea to a client.
Risk mitigation is esentially risk management, or fixing problems after they arise.
Project planning is the beginning of the project where you map out the path you'd take to execute the idea.
Project execution is the actual work that is done to complete the project.
Answer:
B. project initiation
(got it right on edmentum)
be sure to check the picture below fro more secure to getting this question rightExplanation:
Chester Corp. ended the year carrying $21,490,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Chester Corp.
Answer: $21,490,000
Explanation:
Contribution Margin is simply the Sales less the value of variable costs.
If the inventory had been sold in its entirety, it would have added its value to the sales which means that sales would have increased by the value of the inventory which is $21,490,000.
Peterson Corporation produces a single product. Data from the company's records for last year follow: Units in beginning inventory 0 Units produced 70,000 Units sold 60,000 Sales $1,400,000 Manufacturing costs: Variable $630,000 Fixed $315,000 Selling and administrative expenses: Variable $98,000 Fixed $140,000 Under variable costing, net operating income would be: $217,000 $307,000 $374,500 $352,000
Answer:
$307,000
Explanation:
Step 1
First determine the units Sold, Produced and the units remaining in Inventory. This are important amounts for our calculation.
Units Sold = 60,000
Units Produced = 70,000
Beginning Inventory = 0
Ending Inventory (0 + 70,000 - 60,000) = 10,000
Step 2
Now we identify the method that is used for the preparation of Income Statement. In this case it is the variable costing method.
Variable Costing Method, only takes into account the Variable Manufacturing Costs for Product Costing. The Fixed Manufacturing Costs together with All Non-Manufacturing Expenses are regarded as Period Costs and are Expensed In the Income Statement.
Step 3
Calculation of Production Cost.
In this case this is $630,000 (variable costing)
Step 4
Calculation of Ending Inventory.
In this case this is $90,000 ($630,000 × 10,000 / 70,000)
Step 5
Calculation of Cost of Sales.
This will be $540,000 ($630,000 - $90,000). That is Production Costs and Opening Inventory less Closing Inventory.
Step 6
Calculation of Gross Profit.
Gross Profit is Sales less Cost of Sales. That is $1,400,000 - $540,000 which gives $860,000.
Step 7
Calculation of Expenses.
For Variable Costing, this will be Fixed Manufacturing Costs plus All Non - Manufacturing Costs. That is $315,000 + $98,000 + $140,000 which gives $553,000.
Step 8 (Final Step)
Calculate the Net Operating Income.
Gross Profit less Expenses is the formula. That will be $307,000 ($860,000 - $553,000).
QS 23-16 Product pricing LO P6 Garcia Co. sells snowboards. Each snowboard requires direct materials of $122, direct labor of $52, and variable overhead of $67. The company expects fixed overhead costs of $679,000 and fixed selling and administrative costs of $114,000 for the next year. It expects to produce and sell 12,200 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 10% of total cost
Answer:
Selling price= $336.6
Explanation:
Giving the following information:
Variable costs:
direct materials= $122
direct labor= $52
variable overhead= $67
Total unitary variable cost= $241
Total fixed costs= 679,000 + 114,000= $793,000
First, we need to calculate the total unitary cost:
Total unitary cost= (793,000/12,200) + 241
Total unitary cost= $306
Now, the selling price:
Selling price= 306*1.1
Selling price= $336.6
On January 1, Vermont Corporation had 48,400 shares of $9 par value common stock issued and outstanding. All 48,400 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a
Answer:
Debit to Treasury Stock for $21,840
Explanation:
Cost = Number of Stock * Cost per Stock
Cost = 910 shares * $24
Cost = $21,840
Date Accounts Debit Credit
Feb 1 Treasury Stock $21,840
Cash $21,840
Note: When company reacquire its outstanding shares and not retire, it is called treasury stock.