Answer:
1. Dr Raw materials inventory $175,000
Cr Cash $175,000
2. Dr Goods in process inventory $138,000
Cr Raw materials inventory $138,000
3. Dr Factory overhead $7,000
Cr Raw materials inventory $7,000
Explanation:
Preparation of journal entries transactions for the month of May.
1. Dr Raw materials inventory $175,000
Cr Cash $175,000
2. Dr Goods in process inventory $138,000
Cr Raw materials inventory $138,000
($26,000+$175,000-$7,000-$56,000)
3. Dr Factory overhead $7,000
Cr Raw materials inventory $7,000
V Boutique is a fashion house that designs, manufactures, and sells evening gowns. Their lowest-selling design is a vibrant green strapless gown in Dupioni silk. V Boutique is considering lowering the selling price of the gown to stimulate demand. However, before lowering the price, they must evaluate the total costs associated with the gown.
. Fabric and materials - $62/gown
. Labor to construct the gown - $40/gown
. Equipment cost for these gowns (steamer and sewing machines) $3,000
V Boutique anticipates selling 500 gowns after lowering the selling price. Assuming their projection is accurate, what is the total average cost they will incur per gown?
Answer:
V. Boutique
Assuming their projection of 500 gowns is accurate, the total average cost they will incur per gown is:
= $108.
Explanation:
a) Data and Calculations:
Unit variable costs:
Fabric and materials per gown = $62
Labor cost per gown to construct the gown = $40
Total unit variable costs per gown = $102
Unit fixed costs:
Equipment cost = $3,000/500 $6
Total average costs per gown = $108
b) The average cost per gown equals the unit costs (variable costs per unit and the fixed costs per unit). V. Boutique incurs a total equipment cost of $3,000 for the 500 gowns. This means that each gown consumes $6 ($3,000/500) in equipment costs.
Assume that Canada imports more goods and services than it exports. Which of the following is true of the Canadian balance of payments accounts?
(A) The current account balance must be negative.
(B) The current account balance must be positive
(C) The trade balance must be negative.
(D) The financial account (formerly called capital account) balance must be negative
(E) The financial account (formerly called capital account) balance must be positive
Answer:
(C) The trade balance must be negative.
Explanation:
The Balance of trade refers to the net amount payable or receivable
In the case when the net amount is receivable so the balance of trade comes in positive and when the net amount payable is high than the balance of trade is negative.
Now
When the country exports greater than imports so it is a positive balance of Trade and on the other hand When the country imports greater than exports then the balance of trade is negative.
Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow.
Month Number of Units Produced Total Cost
January 4,360 $65,600
February 225 $6,250
March 1,000 $15,000
April 5,475 $111,250
May 1,750 $32,500
June 3,015 $48,000
From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the High-Low Method. Recall that Total Costs = (Variable Cost Per Unit x Units Produced) + Fixed Cost. Complete the following table.
Total Fixed Cost Variable Cost per Unit
Answer and Explanation:
The computation is given below:
As we know that
The Variable cost per unit is
= (Highest activity cost- Lowest activity cost) ÷ (Highest activity units- Lowest activity units)
Particulars Total Cost Units
Highest units 111,250.00 5,475.00
Lowest units 6,250.00 225.00
Difference 105,000.00 5,250.00
Variable cost per unit 20.00
Now
Fixed cost= Highest activity cost- (Highest units × Variable cost per unit)
= $111,250 - (5475 × 20)
= $1,750.00
Cost of Normal Spoilage
Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $1,900 and direct labor of $500. Overhead is applied at the rate of 140 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $400 and direct labor costing $100. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:
1. Calculate the cost of the Tramel job.
2. Make any needed journal entry to the overhead control account.
3. What if the additional rework required $200 of direct labor? What would be the effect on the cost of the Tramel job?
Answer:
See below
Explanation:
1. Cost of the Tramel Job
= Direct material cost + Direct labor cost + Overhead applied
= $1,900 + $500 + (140% × $500)
= $1,900 + $500 + $700
= $3,100
2. Journal entry to record the overhead cost
Overhead cost account Dr $500
To Material account Cr $400
To Labor account Cr $100
3. Effect of additional rework required $200 of direct labor on the cost of Tramel job
= Direct material cost + Direct labor cost + Overhead applied
= $1,900 + ($500 + $200) + (140% × $500)
= $1,900 + $700 + $700
= $3,300
The effect of additional rework required of $200 of direct labor cost is an increase of $200 on the cost of job for Tramel
A copy machine is available 18 hours a day. On a typical day, the machine needs to process 320 jobs. Each job takes about 1.5 minutes on the machine, 0.5 minute of which is processing time and 1 minute is setup time (logging in, defining the job). About 25% of the jobs need to be reworked, in which the set?up time and the processing time have to be repeated once. In the remaining time, the equipment is idle. You would need to show steps and use 2 decimals in calculations.
(a) Draw a tree diagram to show the breakdown of equipment time.
(b) Define and calculate total non value added time in minutes.
(c) Define and calculate total value added time in minutes.
(d) Calculate total waste time in minutes. Give a detailed breakdown of waste time.
(e) What is the OEE of the equipment? (percentage, 2 decimals, i.e. 23.67%)
Answer:
(b)
Total available time = 18x60 =1080 min.
Total processing time = 320x0.5 = 160 min
Total set up time = 320x1 -320 min.
Total rework time = ( 1+0.5) =120 min.
Total Non value added time = set up time + rework time 320+120 = 440 min.
(c) Total value added time = processing time = 160 min.
(d) Total waste time = set up time + rework time + Idle time 320+120+ 480 = 920 mn.
(e) OEE = processing time / time available = 160/1080 = 0.1481 = 14.81%
When converting net income to net cash provided (used) by operating activities under the indirect method increases in accounts receivable and increases in accrued liabilities are deducted. decreases in accounts payable and decreases in inventory are deducted. decreases in accounts receivable and increases in prepaid expenses are added. decreases in inventory and increases in accrued liabilities are added.
Answer:
Decrease in inventory and increases in accrued liabilities are added.
Explanation:
Coronado Industries reported revenue of $1650000 in its accrual basis income statement for the year ended June 30, 2021. Additional information was as follows: Accounts receivable June 30, 2020 $405000 Accounts receivable June 30, 2021 521000 Uncollectible accounts written off during the fiscal year 16000 Under the cash basis, Coronado should report revenue of
Answer:
$1,518,000
Explanation:
Prepare a Total Accounts Receivable T Account to determine the revenue received in cash, which is the revenue to be reported under the Cash Basis.
Total Accounts Receivable T Account
Debit :
Beginning Balance $405000
Revenue $1650000
Total $2,055,000
Credit :
Cash (Balancing figure) $1,518,000
Uncollectible accounts written off $16000
Ending Balance $521000
Total $2,055,000
Jeff installs a new dial-up connection to access home Internet. What device should he buy to connect his system to the Internet?
A.
browser
B.
router
C.
antenna
D.
firewall
E.
modem
Answer:modem
Explanation:
Answer: E. Modem
Explanation: I took the test on plato, and also Dial-up access uses a modem to connect to the internet through a phone line. This connection does not require any additional infrastructure other than a modem.
Which of the following is not a way of creating agency in California?
Answer:
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
Explanation:
1. Written or expressed - An oral or written contract in which the parties state the contract's terms and express their intentions in words. We agree orally to the terms of our agency relationship, wherein you will hire me to market your property or represent you as a buyer's agent.
2. Implied - A contract under which the agreement of the parties is demonstrated by their acts and conduct. Example: "I'll help you buy a house; so don't work with anyone else because I will be your agent. Let's go look at some houses today."
3. Ostensible Agency - An actual agency relationship that arises by the actions of the parties rather than by express agreement. For example, the owner of a property knows a broker is showing the owner's vacant lot to prospective buyers without authority to do so. Unless the owner takes steps to stop such unauthorized showings, the law considers that third parties have a just cause to believe the broker to be the "owner's broker." This situation is called an ostensible agency because on the surface an agency appears to exist. Once this type of agency is created, the owner is prevented by estoppel* from denying its existence.
*Estoppel - A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence.
4. Ratification - A method of creating an agency relationship in which the principal (seller or buyer) accepts the conduct of someone who acted without prior authorization as the principal's agent. Example: A licensee who shows a property without the owner's prior approval, and then the owner agrees to work with the agent to sell the property.
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
can anyone share important questions on Managerial Information Systems??
i need it for preparing
for my exams
Explanation:
(1) designing systems that are competitive and efficient; (2) understanding the system requirements of a global business environment; (3) creating an information architecture that supports the organization's goals; (4) determining the ...
Bluegill Company sells 7,200 units at $260 per unit. Fixed costs are $93,600 and income from operations is $842,400. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit $fill in the blank 1 b. Unit contribution margin $fill in the blank 2 per unit c. Contribution margin ratio fill in the blank 3 %
Answer:
Variable cost per unit = $130
Contribution margin per unit = $130
Contribution margin ratio = 50%
Explanation:
According to the scenario, computation of the given data are as follows,
Contribution margin per unit = (Fixed cost + Operations income) ÷ Total units
= ($93,600 + $842,400) ÷ 7,200
= $936,000 ÷ 7,200
= $130
Variable cost per unit = Sale price per unit - Contribution margin per unit
= $260 - $130
= $130
Contribution margin ratio = Contribution margin per unit ÷ Sale price per unit
= 130 ÷ 260
= 50%
At the beginning of 2020, Sun Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Sun Angel 3% of net sales in the first 12 months and 1% of net sales in the second 12 months. Net sales made under warranty in 2020 were $184,743,795. Fifteen percent of the units sold were returned in 2020 and repaired or replaced at a cost of $5,179,626. The amount reported on Sun Angel's 2020 year end balance sheet for Estimated Warranty Liability is:
Answer:
$2,210,126
Explanation:
Calculation to determine what The amount reported on Sun Angel's 2020 year end balance sheet for Estimated Warranty Liability is:
Estimated Warranty Liability=(1%+3%*$184,743,795)-$5,179,626
Estimated Warranty Liability=$7,389,752-$5,179,626
Estimated Warranty Liability=$2,210,126
Therefore The amount reported on Sun Angel's 2020 year end balance sheet for Estimated Warranty Liability is:$2,210,126
[The following information applies to the questions below.]
Identify the corresponding budget(s) from which dollar amounts are transferred directly in constructing each of the following:
1. Budgeted income statement.
2. Budgeted balance sheet.
3. Cash flow budget.
4. Cost of goods sold budget.
5. Production budget.
a. Direct materials budget
b. Cost of goods sold budget
c. Production budget
d. Payables budget
e. Sales budget
f. Budgeted income statement
Answer:
The corresponding budgets in column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A are matched in the explanation below
Explanation:
1.) Budgeted Income Statement
E.) Sales Budget
2.) Budgeted Balance Sheet
D.) Payables Budget
3.) Cash Flow Budget
A.) Direct Materials Budget
4.) Cost of Goods Sold Budget
B.) Cost of Goods Sold Budget
5.) Production Budget
C.) Production Budget
Think about an organizational change that recently affected you. This could be a change at work in which jobs or procedures were changed, or it could be a change at school, such as a change in curriculum requirements or major revisions in registration procedures. How effectively did the organization manage the change? What could the organization have done differently to reduce resistance to the change? Your post should reflect the terms and concepts in Chapter 15.
Explanation:
One good example is the recent change in the way we learn at school (remote learning). For many students, it was the first time they had to receive instructions from a teacher via videoconferencing.
Many organizations tried to adjust to this new normal, however, most organizations were confused about what training to provide, how long to should they plan for, etc.
Reports say that many teachers found it difficult to adapt to this method of teaching, hence, some were resistant to this change. However, if proper enlightenment were carried out, as well as employing some motivational factors, such resistance to change would have been minimal.
Cavy Company estimates that the factory overhead for the following year will be $1,745,300. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 56,300 hours. Calculate the predetermined overhead rate to apply factory overhead. Round your answer to the nearest cent. $fill in the blank 1 per machine hour
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
Which of the following statements about using dramatics in a sales presentation is most likely true? Using dramatic demonstrations fails to set a salesperson apart from the majority of other salespeople. A salesperson's own uncertainty about the use of dramatics increases the positive impact on the prospect. A theatrical movie showing the history of the company is an example of dramatization. Dramatics should be incorporated into all sales presentations due to their success rate. Television commercials are a source of ideas for dramatizations.
Answer:
Television commercials are a source of ideas for dramatizations.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.
Basically, marketing comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
A sales presentation can be defined as series of talk given by a salesperson with the attempt to persuade someone or a potential customer to buy a particular product, by giving information it. Some salespersons resort to the use of dramatics so as to initiate and close the sale of a particular product by engaging in series of theatrical actions.
Hence, the statement about using dramatics in a sales presentation which is most likely true is that, television commercials are a source of ideas for dramatizations because various actions are performed with the intent to promote the purchase of a product.
what is the meaning of dialogue
Answer:
it is a communication that permits people to share their honest opinions even those which have,historically, been difficult to discuss in ways that get ideas out on the table but without offending others
Pankraz Corporation, a calendar year taxpayer, is formed on April 1, 2020. In connection with its formation, it incurs organizational expenditures of $54,000. Pankraz wants to claim as much of these expenses as soon as possible. Round per month amount to two decimal places. Round your final answer to the nearest dollar. Therefore, its deduction for 2020 is $fill in the blank 1
Answer:
$3,650
Explanation:
Calculation to determine its deduction i
First step is to calculate the Expense
Expense=$5,000 - ($54,000 - $50,000)
Expense=$5,000-$4,000
Expense= $1,000
Second step is to calculate the Amortization
Amortization= ($54,000 - $1,000)/180 months
Amortization= $294.44 x 9 months
Amortization= $2,649.99
Amortization= $2,650 (Approximately)
Now let calculate the total deduction
Total deduction =$1,000 + $2,650
Total deduction= $3,650
Therefore, its deduction for 2020 is $3,650
Write a professional 1 page memo that responds to this problem.
Jack Jones is an employee who performs below expected levels. You hired Jack because he was highly qualified for the job, and he used to be an excellent worker. He has a personality that fits well in your company, and you want to keep him. Lately, Jack has been regularly late to work, misses work often, and spends a lot of time away from his desk when he is at work. As the department manager, you are in charge of communicating the news to Jack as well as providing him a feasible plan for improving his work performance.
Solution :
Memo
From : Department Manager
Date : 01 May 2021
Subject : Improvement of Performance
This is to inform you that I have lately noticed that you have not able to meet the goal for the last 6 months and your average is average. I see that you are an excellent worker and have doing good but lately your performance level is not up to the mark. Also you are not punctual at your job which may hamper your appraisal or your incentives.
So going forward, I would like to ask you to be regular to work and work effectively for your overall growth. I would suggest you to be on time at work at complete your daily task for the day to achieve your targets. Your can also seta goal for the day so that your targets are achieved.
You are a true asset to the organization and we believed that your efforts will help you to grow and learn more.
I have attached a file which shows your performance for the last 6 months and also a feedback on how to improve.
Revert if there is any query.
Best Regards
Department Manager
Do you think you would want a credit card in college? Why or why not ?
Answer:
Yes I would to help build my credit but only if I was in a spot where I knew that I whould be able to keep up and pay it back on time.
Explanation:
how have people responded to the pandemic in terms of successful managing event at this time?
Answer:
Find the explanation below.
Explanation:
The pandemic of 2019 which spread so fast in 2020 and caused the shut down of many business activities has been effectively managed and adapted to by many people. Given that the pandemic requires social distancing, regular handwashing, wearing of nose masks and some other hygienic practices aimed at quelling its effects, people have endeavored to avoid unnecessary social gatherings.
Business meetings, wedding events, and even the education of students are held virtually through video calling applications. This way events are still held while keeping to the rules guiding the pandemic.
MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior Pro Striker
Production budget 8,100 units 19,500 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.25 hour per unit 0.50 hour per unit
Pro Striker 0.30 hour per unit 0.70 hour per unit
The direct labor rate for each department is as follows:
Forming Department $17.00 per hour
Assembly Department $9.00 per hour
Required:
Prepare the direct labor cost budget for March.
Answer:
See below
Explanation:
The preparation of direct labor cost budget for March is seen below;
Particulars Foaming department Assembly department
Production 8,100 units 19,500 units
Hours required
Junior 2,025 4,050
Hours required
Pro 5,850 13,650
Total hours
Department Wise (A) 7,875 17,700
Total Hourly rate (B) $17 $19
Total direct labor cost (A × B) $133,875 $336,300
••Workings
For Junior, it would be :
Foaming
= 0.25 hour per unit × 8,100 units
= 2,025
Assembly
= 0.50 hour per unit × 8,100 units
= 4,050
For Pro, it would be:
Foaming
= 0.30 hour per unit × 19,500 units
= 5,850
Assembly
= 0.70 hour per unit × 19,500 units
= 13,650
Chelsea, Inc. uses the job costing method and uses direct labor hours as the allocation base. In 2016, the company estimated that they would incur 250,000 direct labor hours and total overhead costs of $2,500,000. Actual overhead costs for Job 3489 were $275,000 and actual direct labor hours were 28,000. Which of the following represents the MOH allocated to Job 3489?
a. Predetermined MOH rate= total estimated manufacturing overhead costs/ total estimated amount of the allocation base
b. $250,000/ 25,000 DLH= $10
c. MOH allocated to job= predetermined MOH rate * actual amount of allocation base used by the job
d. $10 * 28,000 DLH= $280,000
Answer:
Allocated MOH= 10*28,000
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= 2,500,000 / 250,000
Predetermined manufacturing overhead rate= $10 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10*28,000
Allocated MOH= $280,000
Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of
Answer:
related and supporting industries/complementors.
Explanation:
In the given scenario Toyota effectively leveraged on its related and supporting industries/complementors.
By having a tightly knit network of suppliers in Japan, Toyota developed a fast two-way knowledge sharing—this in turn improved their quality and lowered cost, which it leveraged into a successful blue ocean strategy.
The suppliers complimented their production efforts in such a way that quality improved and cost was lowered
Green Manufacturing, Inc., plans to announce that it will issue $2 million of perpetual debt and use the proceeds to repurchase common stock. The bonds will sell at par with a coupon rate of 6%. Green is currently an all-equity firm worth $6.3 million with 400,000 shares of common stock outstanding. After the sale of the bonds, Green will maintain the new capital structure indefinitely. Green currently generates annual pretax earnings of $1.5 million. This level of earnings is expected to remain constant in perpetuity. Green is subject to a corporate tax rate of 40%.
A) What is the expected return on Green?s equity before the announcement of the debt issue?
B) Construct Green's market value balance sheet before the announcement of the debt issue. What is the price per share of the firm's equity?
C) Construct Green's market value balance sheet immediately after the announcement of the debt issue. What is Green's stock price per share immediately after the repurchase announcement?
D) How many shares will Green purchase as a result of the debt issue? How many shares of common stock will remain after the repurchase?
E) Construct a market value balance sheet after the restructuring. What is the required return on Green's equity after the restructuring?
Answer: See explanation and attachment
Explanation:
a. Return on equity:
= Pre tax earnings × (1 - Tax rate) / Total equity
= 1.5 million × (1 - 40%) / 6.3 million
= 1.5 million × (1 - 0.4) / 6.3 million
= (1.5 million × 0.6) / 6.3 million
= 0.9 million / 6.3 million
= 14.29%
b. Check attachment for Green's market value balance sheet before the announcement of the debt issue.
The price per share of the firm's equity will be:
= Equity / Number of shares
= $6300000 / 400000
= $15.75 per share
c. Check Green's market value balance sheet immediately after the announcement of the debt issue.
Green's stock price per share immediately after the repurchase announcement will be calculated thus:
We need to know the value of tax shield which will be:
= 40% × $2,000,000
= $800,000
Value of firm = $6,300,000 + $800,000
= $7,100,000
Price per share will be:
= Equity / Number of shares
= 7100000 / 400000
= $17.75 per share
d. The number of shares that Green will purchase as a result of the debt issue will be:
= Debt issue / Price per share
= 2,000,000 / 17.57
= 112,676
The number of shares of common stock that will remain after the repurchase will be:
= 400000 - 112676
= 287324
e. Check attachment for market value balance sheet after the restructuring.
The required return on Green's equity after the restructuring will be:
= 14.29% + (2000000/5100000) × (14.29% - 6%) × (1 - 40%)
= 14.29% + 0.3921 × 8.29% × 0.6
= 14.29% + 1.95%
= 16.24%
In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are allocated on the basis of the number of purchase requisitions. The Payroll Department had costs of $62,928, and the Purchasing Department had expenses of $29,480 The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000
Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services.
c. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.
Answer:
Lemons Company
a. Total amount of payroll checks = 920
amount of purchase requisitions = 12,500
b-a Residential Commercial Government Total
Payroll $32,832 $19,152 $10,944 $62,928
b-b Purchasing
Costs $17,688 $4,717 $7,075 $29,480
c. Residential's service department charge is __higher__ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a __higher__ number of payroll transactions.
Explanation:
a) Data and Calculations:
Cost of the Payroll Department = $62,928
Cost of the Purchasing Department = $29,480
Residential Commercial Government Total
Contract
Sales $2,000,000 $3,250,000 $2,900,000 $8,150,000
Weekly payroll
(52 weeks per year) 400 250 150 800
Monthly payroll 80 30 10 120
Total 480 280 160 920
Number of purchase
requisitions per year 7,500 3,000 2,000 12,500
a. Total amount of payroll checks = 920 (800 + 120)
Total amount of purchase requisitions = 12,500
b-a Residential Commercial Government Total
Payroll $32,832 $19,152 $10,944 $62,928
(480/920 * $62,928) (280/920 * $62,928) (160/920 * $62,928)
b-b Purchasing
Costs $17,688 $4,717 $7,075 $29,480
(7,500/12,500 * $29,480) (2,000/12,500 * $29,480) (3,000/12,500 * $29,480)
Total $50,520 $23,869 $18,019 $92,408
Percentage 54.7% 25.8% 19.5% 100%
Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 27,000 units. Company policy is to end each month with merchandise inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 180,000 units in October.
Sales (Units) Purchases (Units)
July 210,000 222,000
August 290,000 290,000
September 290,000 273,500
Required:
a. Prepare the merchandise purchases budget for the months of July, August, and September.
b. Compute the ratio of ending inventory to the next month’s sales.
c. How many units are budgeted for sale in October?
Answer:
Walker Company
a. Merchandise Purchases Budget for the months of July, August, and September:
July August September
Sales units 210,000 290,000 290,000
Ending inventory 43,500 43,500 27,000
Goods available 253,500 333,500 317,000
Beginning inventory 31,500 43,500 43,500
Purchases 222,000 290,000 273,500
b. The ratio of ending inventory to the next month's sales = 15% (Ending Inventory/Sales next month * 100)
c. The units budgeted for sale in October = 180,000 units.
Explanation:
a) Data and Calculations:
September ending inventory = 27,000 units
Ending inventory always equal to 15% of budgeted sales for the following month.
Sales (Units) Purchases (Units)
July 210,000 222,000
August 290,000 290,000
September 290,000 273,500
October 180,000
July August September October
Sales units 210,000 290,000 290,000 180,000
Ending inventory 43,500 43,500 27,000
Goods available 253,500 333,500 317,000
Beginning inventory 31,500 43,500 43,500 27,000
Purchases 222,000 290,000 273,500
Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December 31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $5,000
b. Credit to Fair value adjustment for $5,000
c. Debit to Fair value adjustment for $25,000
d. Credit to Fair value adjustment for $25,000
Answer:
b. Credit to Fair value adjustment for $5,000
Explanation:
Particulars Amount
Beginning balance of fair value adjustment $20,000
Less: Unrealized gain on Dec 31, year 3 $15,000 ($515,000-$500,000)
Credit to Fair value adjustment $5,000
So, Credit to Fair value adjustment for $5,000 will be included in the related journal entry dated December 31, Year 3.
Describe how each of the following will affect the demand for personal computers: (a) A rise in incomes (assuming computers are a normal good); (b) A lower expected price for computers; (c) Cheaper software; (d) Simpler-to-operate computers.
Answer and Explanation:
The impact of the demand in the following situations are
1. Since there is a rise in the income and we assume it is a normal good. So in the case of the normal goods it shows a direct relationship between the income and the demand that means if the income is increased so the demand also increased & vice versa
2. For The lower expected computer price, the demand would decrease as the people predict that the price could decline in future
3. For cheaper software, the demand is increased as the price is very less
4. In the case when the computer are simple to operate so it would increase the demand
A rise in income would lead to an increase in the demand for personal computers.
A lower than expected price for personal computers would lead to a rise in the quantity demanded for personal computers.
A cheaper software would lead to an increase in the demand for personal computers.
Simpler-to-operate computers would lead to an increase in the demand for personal computers.
A normal good is a good whose demand increases when income increases and decreases when income declines.
Only a change in the price of a good leads to a change in the quantity demanded. Other factors lead to a change in demand.
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When you begin a new job, you might be assigned to a _____, who will provide much of the new employee training.
mentor
team leader
another new employee
manager