Mortech had net income of $246,000 based on variable costing. Beginning and ending inventories were 46,000 units and 45,000 units, respectively. Assume the fixed overhead per unit was $0.50 for both the beginning and ending inventory. What is net income under absorption costing?

Answers

Answer 1

Answer:

$245,500

Explanation:

Given that;

Net income based on variable costing = $246,000

Beginning inventories = 46,000 units

Ending inventories = 45,000 units

Fixed overhead per unit = $0.50

Inventory = (Beginning inventories - Ending inventories) × Fixed overhead per unit

= (46,000 units - 45,000 units) × $0.50

= 1,000 units × $0.50

= $500

Net income under absorption costing

= Net income based on variable costing - Inventory

= $246,000 - $500

= $245,500


Related Questions

Fiat money:________.a) has no intrinsic value. b) is backed by gold. c) is a medium of exchange but not a unit of account. d) is any close substitute for curren

Answers

Answer: a) has no intrinsic value

Explanation:

Fiat currency is money that is used in a country and is regulated by the central bank of that country. Fiat money has no commodity backing it such as gold or silver and has no intrinsic value of its own.

It is instead backed by the full faith and credit of the government of the country that produces it. For instance, the US dollar is backed by the full faith and credit of the US government.

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29:35
What gives the US government the power to collect taxes?

the Constitution
laws passed by Congress
an executive order
common law

Answers

Answer:

The Constitution

Explanation:

In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This is also referred to as the "Taxing and Spending Clause."

Blue Spruce Corp. incurs the following expenditures in purchasing a truck:

Cash price $53,000
Accident insurance $3,800
Sales taxes $3,400
Motor vehicle license $100
Painting and lettering $400.

What is the cost of the truck?

Answers

Answer:

$56,800

Explanation:

The cost of the truck is calculated as;

= Cash price + Sales tax + Painting and lettering

Given that;

Cash price = $53,000

Sales tax = $3,400

Painting and lettering = $400

= $53,000 + $3,400 + $400

= $56,800

Therefore, cost of the truck is $56,800.

* Note

The expenditures for accident insurance and motor vehicle license will not be added to the cost of the truck.

Suppose that a country's economy is operating at an unemployment rate 6% higher than its natural rate of unemployment. Then a(n) __________ exists and government should _________.a. inflationary gap; increase spendingb. inflationary gap; decrease spendingc. recessionary gap; increase spendingd. recessionary gap; decrease spending

Answers

Answer:

c. recessionary gap; increase spending

Explanation:

When the country's economy is operating at an unemployment rate that is higher than its natural rate of unemployment, that means a lower level of consumer demand due to the fact that more number of people don't have jobs. Which in turn implies lower production level and thus lower GDP and thus causes a recessionary gap. In order to fill this recessionary gap the government should increase spending so as to boost money into the economy which will then boost consumer demand and thereby production level will increase and in turn will fill the gap.

Hello I need help with this question

Classify each statement according to whether it will increase the equilibrium level of human capital investments or decrease the equilibrium level of human capital investments.

Answers

Answer:

Congress votes to double the amount of federally subsidized student loans - this will increase the equilibrium level of human capital investments because higher education is one of the most effective ways that people can use to increase their human capital.

There is a decrease in student learning capacities - decrease the equilibrium level of human capital investments because a lower learning capacity will prevent students from reaching their full potential.

Suburban families see a decrease in wealth due to a particularly poor performing sotck market - decrease because suburban families will have less income and wealth to spend, including expenditures in education and training.

The president signs into a law a bill that will reduce discrimination in the labor market - increase because workers that were previously kept from finding employment due to discrimination will now be able to obtain jobs and acquire working experience, this increases their human capital.

The natural talents and abilities of graduating high school students rise - increase because high school graduates have become more naturally skilled and this will help them through college and in their future jobs.

John's Mattresses is now selling its products in Spain. It has priced its line of mattresses very low in the hopes that it will drive away weaker competitors. This is an example of:________

Answers

Answer: predatory pricing.

Explanation:

John's Mattresses is now selling its products in Spain. It has priced its line of mattresses very low in the hopes that it will drive away weaker competitors. This is an example of predatory pricing.

Predatory pricing is when a company intentionally reduces its price in order to reduce competition. It should be noted that this can lead to monopoly and it violated the antitrust law.

A company is experiencing accessibility issues reaching services on a cloud-based system. What monitoring tools should be used to locate possible outages

Answers

A network analyzer is a useful tool, helping you do things like track traffic and malicious usage on the network.

In a perfectly competitive market, state the condition (clearly) that causes firms to enter the market? When does the entry and exit of firms from the perfectly competitive industry end? (micro economic question)....write it in your own words :)

Answers

Ok so, the condition that causes firms to enter the market is when firms are making Super Normal Profit. This is when Average Total cost curve is under the MR=D=AR=P line. So firms outside the market are attracted to the SNP being made, and the profits get competed out until normal profit is being made. That’s when ATC is equal to MR=D=AR=P line. If more people enter the market, that’s when a loss is being made.

A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):Cash $ 33,000 Liabilities $ 50,000Other assets 100,000 Playa, capital (40%) 24,000Bahia, capital (30%) 29,000Arco, capital (30%) 30,000Total $ 133,000 Total $ 133,000During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation?Multiple ChoicePlaya, $16,000; Bahia, $23,000; Arco, $24,000.Playa, $19,200; Bahia, $14,400; Arco, $14,400.Playa, $6,000; Bahia, $4,500; Arco, $4,500.Playa, $10,000; Bahia, $18,500; Arco, $19,500.

Answers

Answer:

Playa, $10,000; Bahia, $18,500; Arco, $19,500.

Explanation:

Cash $33,000

Other assets $100,000

Total $133,000

Liabilities $50,000

Playa, capital (40%) $24,000

Bahia, capital (30%) $29,000

Arco, capital (30%) $30,000

Total $133,000

other assets sold for $80,000 resulting in a $20,000 loss

cash = $33,000 + $80,000 = $113,000

- liabilities ($50,000)

$63,000

- liquidation expenses ($15,000)

remaining cash $48,000

total loss = $20,000 + $15,000 = $35,000

partners' share of loss:

Playa = $14,000

Bahia = $10,500

Arco = $10,500

remaining capital accounts:

Playa = $24,000 - $14,000 = $10,000

Bahia = $29,000 - $10,500 = $18,500

Arco = $30,000 - $10,500 = $19,500

Paul Corporation reported net income of $260,000 during the current calendar year. The company had 10,000 common shares outstanding on January 1 and sold an additional 6,000 shares on July 1. What is the company’s basic EPS?

Answers

Answer:

the company’s basic EPS is $37.14

Explanation:

Basic Earnings per share = Earnings attributable to holders of common stock ÷ Weighted Average Number of Common Stocks

Step 1 : Calculation of Earnings attributable to holders of common stock

This is given. It is the Net Income during the current year of $260,000

Step 2 : Calculation of Weighted Average Number of Common Stocks

Outstanding Stocks at the beginning of the year                 10,000

Less Sold Stocks - On Weight Basis (6/12 × 6,000)               3,000

Weighted Average Number of Common Stocks                    7,000

Therefore,

Basic Earnings per share = $260,000 ÷ 7,000

                                           = $37.14

Joe's Mart policy is to have 20% of the next month's sales on hand at the end of the current month. Projected sales for August, September, and October are 36,000 units, 31,000 units, and 41,000 units, respectively. How many units must be purchased in September?A. 16,000.B. 17,000.C. 22,000.D. 26,000.E. 28,000.

Answers

Answer:

the number of units purchased in September is 33,000 units

Explanation:

The computation of the number of units purchased in September is shown below:

= September sales + desired ending inventory - beginning inventory

= 31,000 + 41,000 × 20% - 31,000 × 20%

= 31,000 + 8,200 - 6,200

= 33,000 units

This is the answer but the same is not provided in the given options

hence, the number of units purchased in September is 33,000 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Waterway Industries purchased machinery for $905000 on January 1, 2017. Straight-line depreciation has been recorded based on a $52000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $13000. How much cash did Waterway receive from the sale of the machinery?

Answers

Answer:

$ 178,733  

Explanation:

From January 2017 when the machinery was acquired till May 1 2021  when it disposed of, depreciation would have been charged for full years 2017,2018,2019 and 2020 while 2021 depreciation would only be for 4 months.

Annual depreciation=cost-salvage value/ useful life

annual depreciation=($905000-$52000)/5=$170,600  

depreciation for 4 years=$170,600*4=$682,400

depreciation for 4 months=$170,600*4/12=$56,867  

accumulated depreciation=$682,400+$56,867=$739,267  

carrying value=cost-accumulated depreciation= $905000- $739,267 =$165,733  

gain on disposal=cash proceeds-carrying value

$13000=cash proceeds-$165,733  

cash proceeds=$165,733 +$13000=$ 178,733  

Lon's GPS, Inc., orders 500 Class A widgets to be installed in GPS units it is manufacturing. When delivery is made on Monday, the widgets delivered are Class B. Lon's signs a receipt accepting the nonconforming shipment. The next day, Lon's installs some of the Class B widgets and finds that they perform with half the accuracy of the Class A widgets. What, if any, options does Lon's have?

Answers

Answer and Explanation:

In the most cases when a shipment of goods are accepted i.e. not confirmed so here the buyer could adjust the prices also he has the right to reject the goods.

In the given case, UCC provides that the goods that are non confirmed is accepted and these goods want to impair so the buyer has the right to revoke the acceptance this can be done with the reasonable time

The purpose of using a balanced scorecard is for:_______.a. companies to keep track of their wins and losses. b. companies to keep track of their assets and their debits. c. companies to get a better understanding of their balance sheet. d. companies to make sure their business activities align with strategy. e. companies to compare themselves with their competitors.

Answers

Answer:

a. companies to keep track of their wins and losses.

Explanation:

If a central bank wishes to reduce inflation, it should announce its intentions and follow through with them, thereby using _________ monetary policy.
A. visible
B. integral
C. credible
D. authoritative

Answers

Answer:

C. credible

Explanation:

A credible monetary policy is the policy where the problem of inconsistency of time can be avoided also the biasness of the inflation also it keeps the inflation under a control.

Therefore in the case when the central bank wants to decrease the inflation so they are using the credible monetary policy

Hence, the correct option is C.

The current carrying value of Marigold’s $811000 face value bonds is $806000. If the bonds are retired at 105, what would be the amount Marigold would pay its bondholders?

Answers

Answer:

$846,300

Explanation:

since the face value of the bonds is $806,000 and they are retired at 105, the company will pay $806,000 x 1.05 = $846,300

the journal entry to record this transaction would be:

Dr Bonds payable 806,000

Dr Premium on bonds payable 5,000

Dr Loss on redemption of bonds 35,300

    Cr Cash 846,300

Organizations must use software tools to process data into meaningful information to make _____ useful.

Answers

Answer:

data warehouses

Explanation:

In the science of computing, we can also call a data warehouse, to be an enterprise data warehouse, this is a system that is used for reporting and also analysing data, a data warehouse is known to be a very central part of business intelligence.

Organizations must use software tools to process data into meaningful information to make data warehouses useful.

From the list of universality skills,gey the aspects which you think you have embody.​

Answers

Answer:

i didn't got ur question..

Oxford university I’m not sure

Jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio,which Lear then sells to Ford.From Ford's point of view,Jones Manufacturing is a(n)__________ supplier.A) Echelon 1B) Echelon 2C) Tier 1D) Tier 2

Answers

Answer:

d)Tier 2

Explanation:

from the question we are informed about jones Manufacturing sells a part to Lear Corporation.Lear puts this part into a radio,which Lear then sells to Ford.From Ford's point of view, in this case Jones Manufacturing is tier 2. Tier 2 capital can be regarded as second layer of capital which serve as a required reserves of a bankIt contains revaluation reserves as well as hybrid capital instruments

Shane is a newly hired inventory manager at a manufacturing firm. What can he do to avoid shortages or excess quantity of inventory?

Answers

Answer:

take inventory on how much product he has and how much he needs

Explanation:

Answer:

Honestly not sure but I personally put "C. plan appropriate order cycles for the inventory"

Explanation:

Plato

What is the minimum nominal rate of return that you should accept if you require a 4% real rate of return and the rate of inflation is expected to average 3.5% during the investment period

Answers

Answer:

7.5%

Explanation:

real interest rate = nominal interest rate - inflation rate

nominal interest rate = real interest rate + inflation rate = 4% + 3.5% = 7.5%

inflation rate refers to the general increase in the price level while the real rate of return is the rate that investors seek after discounting inflation, i.e. the real gain of taking an investment.

To this day, many companies believe that service is a cost rather than a revenue producer. Why might they hold this view? How would you argue the opposite view?

Answers

Answer: Difficulty involved in tracing the link between service and financial returns.

Explanation:

Many companies believe that service is a cost rather than a revenue producer due to the following reasons;

- There is this difficulty in tracing the link between service and financial returns.

- Profits are not directly linked to service provided most times, so it seems as though the service rendered was a cost rather than a revenue

- When service is rendeded most times, the results are not seen immediately, as it would require time to get tvalue and profit for what was done.

Monopolistic competition is defined by product differentiation .explain

Answers

Explanation:

Product differentiation is the means used by a firm in a monopolistic competitive market with many firms selling similar products to differentiate its product from that of other firms

Answer:

In Monopolistic Competition, a buyer can get a specific type of product only from one producer. In other words, there is product differentiation. The firms have to incur selling expenses since there is product differentiation. There is a large number of sellers with inter-dependent demand and supply conditions

Explanation:

Raven Company has a target of earning $71,200 pre-tax income. The contribution margin ratio is 16%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $38,400

Answers

Answer:

$685,000  

Explanation:

First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:

contribution margin ratio=contibution margin/sales revenue

contribution margin ratio=16%

contribution margin required=pretax income+fixed costs

contribution margin required=$71,200+$38,400=$109,600  

16%=$109,600/sales revenue

16%*sales revenue=$109,600

sales revenue=$109,600/16%

sales revenue=$685,000  

Because nonprofit organizations do not have a conventional __________, managers may struggle with the question of what constitutes results and effectiveness.

Answers

Answer:

bottom line

Explanation:

In simple words, a bottom line refers to the net income that appears on the bottom of the income statement of the year. Since the non profit organisation works for the betterment of the society they do no possess it.

The lack of bottom line results in difficulties for the managers to handle the operations and to take decisions regarding operations that results in operational effectiveness as there is no parameter to judge the current process.

Downing Company issues $4,000,000, 8%, 5-year bonds dated January 1, 2020 on January 1, 2020 (ten periods). The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?

Answers

Answer:

$4,525,123.84

Explanation:

The computation of the proceeds from the issuance of the bond is shown below:

Given that

Face Value of Bonds = $4,000,000

Annual Coupon Rate = 8%

So, Semiannual Coupon Rate = 4%

So, Semiannual Coupon = 4% × $4,000,000

= $160,000

Time to Maturity = 5 years

So, Semiannual Period = 10

And,

Annual Interest Rate = 5%

So, Semiannual Interest Rate = 2.5%

Now the proceeds from the issuance of the bond is

= $160,0000 × PVIFA(2.5%, 10) + $4,000,000 × PVIF(2.5%, 10)

= $160,000 × 8.752064  + $4,000,000 × 0.78120

= $1,400,330.23  + $3,124,793.61

= $4,525,123.84

Cash outflows for McKinney Publishing in 2020 included:________. $347,000 in salaries to authors. $180,000 in fees to contracted editors. $83,000 to obtain copyrights for 15 new books. $1.3 million to purchase a new printing warehouse. $560,000 to upgrade current printing equipment. How much of these cash outflows will McKinney Enterprises expense?

Answers

Answer: $527,000

Explanation:

Salaries to authors = $347,000

Fees to contracted editors = $180,000

Copyrights obtained = $83,000

Purchase of a new printing warehouse = 1.3 million

Upgrade of current printing equipment = $560,000

McKinney Enterprises expense will be:

= Salaries to authors + Fees to contracted editors

= $347,000 + $180,000

= $527,000

The State of Adaven issued $50 million of perpetual bonds in 1990. The bonds were issued in $100 denominations with an annual coupon interest rate of 5%. Determine the rate of return or current yield on these bonds if they are purchased at the current price of $40.a. 12.5%.b. 8.0%.c. 5.0%.d. 1.25%.

Answers

Answer: 12.5%

Explanation:

From the question, we are informed that the State of Adaven issued $50 million of perpetual bonds in 1990 and that the bonds were issued in $100 denominations with an annual coupon interest rate of 5%.

The rate of return or current yield on these bonds if they are purchased at the current price of $40 will be calculated as:

= (5% × $100)/$40

= $5/$40

= 0.125 or 12.5%

Nellie Raysan’s monthly budget allows her to spend $150 for entertainment. In February she spent $27. How much more or less did she spend than budgeted?

Answers

she spent $123 less

When evaluating an investment, the MNC should consider the ____________ cash flows generated by the project.

a. total
b. variable
c. incremental
d. fixed

Answers

Answer: c. Incremental

Explanation:

Simply put incremental cashflow is the additional cashflow that accrues to a company when it takes on a new project. The Multinational company should therefore consider this when they are accepting a project.

If the new project has a positive incremental cashflow, it will add to the cashflows of the company and so should be initiated as opposed to those with negative incremental cashflows.

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