Answer: Debit factory overhead $5600; credit cost of goods sold $5600
Explanation:
The journal entry simply has to do with the keeping of records of transactions in a company and it shows both the debit balances and the credit balances of the company.
The factory overhead, also referred to as the manufacturing overhead is simply the total cost that is involved in production which can't be traced to a product directly like the indirect cost and the indirect labor.
The journal entry for the above transaction is:
Debit Factory overhead. 5600
Credit Cost of good sold 5600
Therefore, the entry to dispose of this remaining factory overhead balance is: Debit factory overhead $5600; credit cost of goods sold $5600.
Assume that the Accumulated Depreciation account has an unadjusted normal balance of $120,000. The company's list of adjusting entries includes one that debits Depreciation Expense and credits the Accumulated Depreciation account for $20,000. The adjusted balance in the Accumulated Depreciation account is a:
Answer:
$140,000
Explanation:
The computation of adjusted balance in the Accumulated Depreciation account is shown below:-
adjusted balance in the Accumulated Depreciation account = unadjusted normal balance + Credit Accumulated Depreciation account
= $120,000 + $20,000
= $140,000
Hence the adjusted balance in the Accumulated Depreciation account is $140,000.
The Balance Sheets at the end of each of the first two years of operations indicate the following: 2006 2005 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities 150,000 80,000 Total long-term liabilities 350,000 250,000 Preferred 9% stock, $100 par 100,000 100,000 Common stock, $10 par 600,000 600,000 Paid-in-Capital in excess of par-common stock 60,000 60,000 Retained earnings 325,000 210,000 If Net Income is $115,000 and interest expense is $30,000 for 2006, what is the return on total assets for 2006 (round percent to one decimal place)
Answer:
Return on Assets (2006) = 7.60 %
Explanation:
Return on Assets = Earnings Before Interest and Tax ÷ Total Assets
Therefore,
Return on Assets (2006) = ($115,000 + $30,000) / ( $600,000 + $60,000 + $900,000) × 100
= $118,000 / $1,560,000 × 100
= 7.60 % (one decimal place)
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2021, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,200; cost of goods sold, $1,440; selling expense, $215; general and administrative expense, $205; interest expense, $45; and gain on sale of investments, $85. Income tax expense has not yet been recorded. The income tax rate is 25%. Assume the company’s accountant prepared a multiple-step income statement. a. What amount would appear in that statement for operating income? b. What amount would appear in that statement for nonoperating income?
Answer:
A. $340 million
B. $40 million
Explanation:
A. Calculation for the amount that would appear in that statement for operating income
Sales revenue $2,200
Less: Cost of goods sold ($1,440)
Selling expense ($215)
General and administrative expense ($205)
Operating income $340 million
Therefore the amount that would appear in that statement for operating income will be $340 million
B. Calculation for the amount that would appear in that statement for non operating income
Interest expense $45
Less Gain on sale of investments $85
Non-operating income $40 million
Therefore the amount that would appear in that statement for nonoperating income will be $40 million
What is one way a person can use technology to automate a process that may be more efficient doing than manually
Answer:
Business process automation is the use of technology to execute recurring tasks or processes in a business where manual effort can be replaced. It is done to minimize costs, increase efficiency, and streamline processes.
Explanation:
hope this helps
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,600 Total fixed manufacturing overhead cost $ 195,600 Variable manufacturing overhead per machine-hour $ 4.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 30 Direct materials $ 550 Direct labor cost $ 1,100 The total job cost for Job T687 is closest to:
Answer:
Total cost= $1,900
Explanation:
Giving the following information:
Total machine-hours 32,600
Total fixed manufacturing overhead cost $ 195,600
Variable manufacturing overhead per machine-hour $ 4.00
Job T687:
Total machine-hours 30
Direct materials $ 550
Direct labor cost $ 1,100
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= (195,600/32,600) + 4
Predetermined manufacturing overhead rate= $10 per machine hour
Now, we can determine the total cost:
Total cost= direct material + direct labor + allocated overhead
Total cost= 500 + 1,100 + 10*30
Total cost= $1,900
How is the change in cash classified on the statement of cash flows?
a. It is found in the investing activities section of the statement.
b. It is found in the operating activities section of the statement.
c. It is found in the financing activities section of the statement.
d. It is the sum of the investing, operating, and financing activities sections.
Answer:
d. It is the sum of the investing, operating, and financing activities sections.
Explanation:
Change in cash classified on the statement of cash flows is derived by the sum of the Investing cash flow activities + Operating cash flow activities Financing cash flow activities. The balance gotten is known as Net cash flow for the particular period.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the form and obtained the following resultsDEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON FOBSERVATIONS: 35 0.8713 108.3 0.0001VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 43.40 13.80 3.14 0.0036Q -2.80 0.90 -3.11 0.0039Q2 0.20 0.05 4.00 0.0004What is the estimated equation for average variable cost (AVC)?What is the estimated equation for short-run marginal cost (SMC)?What is the estimated equation for total variable cost (TVC)?At what level of output is AVC at its minimum point for Straker Industries?If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
Answer:
Note: The organized table is attached as picture below
i. What is the estimated equation for average variable cost (AVC)?
Intercept value = 43.40, Parameter estimates of Q and Q2 = -2.80 & 0.20 respectively.
Hence, the estimated equation for AVC is:
AVC = 43.40 - 2.80Q + 0.20Q2
ii. What is the estimated equation for total variable cost (TVC)?
Similarly, the estimated equation for TVC is
= AVC * Q
= 43.40Q - 2.80Q2 + 0.20Q3
iii. At what level of output is AVC at its minimum point for Straker Industries?
AVC will attain its minimum value when its derivative is set = 0. This occurs when:
-2.80 = -0.40Q
Q = 7.
iv. What is the estimated equation for short-run marginal cost (SMC)?
SMC is the derivative of TVC, its estimated equation is given by:
= 43.40 - 5.60Q + 0.60Q2
iv. If Straker Industries produces 20 units of output, what is its estimated TVC, AVC and SMC?
TVC = 43.40Q - 2.80Q^2 + 0.20Q^3
TVC = 43.40(20) - 2.80(20)^2 + 0.20(20)^3
TVC = 868 - 1120 + 1600
TVC = 1348
At 20 unit of output, its estimated TVC is 1348
AVC = 43.40 - 2.80Q + 0.20Q^2
AVC = 43.40 - 2.80(20) + 0.20(20)^2
AVC = 43.40 - 56 + 80
AVC = 67.4
At 20 unit of output, its estimated AVC is 67.4
SMC = 43.40 - 5.60Q + 0.60Q^2
SMC = 43.40 - 5.60(20) + 0.60(20)^2
SMC = 43.40 - 112 + 240
SMC = 171.4
At 20 unit of output, its estimated SMC is 171.4.
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation: If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept? Select one: a. $50,000 increase b. $250,000 increase c. $250,000 decrease d. $550,000 increase
Question:
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:
Contribution margin.... 200,000
Fixed Expense.... 500,000
net operating loss..... (300,000)
If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?
A) 50,000 increase
B) 250,000 increase
C)250,000 decrease
D) 550,000 increase
Answer:
Option A is correct
Increase in profit = $50,000
Explanation:
To determine whether or not it will be profitable to drop a loss making division, we compare the savings in fixed cost to the lost contribution from the division.
It is noteworthy that only the fixed cost attributed to division can only be saved should the division be shut down.
The analysis is done as follows:
$
Lost contribution (200,000 )
Savings in fixed cost (1/2× 500,000) 250,000
Net savings 50,000
Increase in profit = $50,000
In January, Stripe, Inc. purchased 50 shares of its own $10 par value common stock for $20 per share. In March, Stripe sold 10 shares at $25 per share. The journal entry to record the sale of treasury stock using the cost method would include a (debit/credit) Blank 1 of 2 to Treasury Stock in the amount of $ Blank 2 of 2.
Answer: credit; $200
Explanation:
The journal entry to record the sale of treasury stock using the cost method would include a credit to Treasury Stock in the amount of $200.
Using the cost method, the journal entry should reflect the sale of the stock at the original price it was purchased at ( its cost). With the original cost of purchase being $20, the 10 shares that were sold will be recorded as;
= 10 shares * $20
= $200
This will be credited to the Treasury account and along with the additional amount made on the sale, debited to the cash account to reflect a cash increase.
The most recent financial statements for Schenkel Co. are shown here: Income Statement Balance Sheet Sales $ 14,500 Current assets $ 12,000 Debt $ 16,500 Costs 8,400 Fixed assets 29,000 Equity 24,500 Taxable income $ 6,100 Total $ 41,000 Total $ 41,000 Taxes (40%) 2,440 Net income $ 3,660 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
Answer:
0.1046 or 10.46%
Explanation:
The computation of the sustainable growth rate is shown below:
The Sustainable growth rate of the firm is
= Return on Equity × ( 1 - Dividend Payout Ratio )
where,
Dividend Payout Ratio = 30%
And,
Return on equity is
= Net Income ÷ Shareholder 's equity
= $3660 ÷ $ 24,500
= 0.14938
So,
Sustainable growth rate is
= 0.14938 × (1 - 30%)
= 0.1046 or 10.46%
Presented below are three transactions. Mark each transaction as affecting owner's investment (I), owner's drawings (D), revenue (R), expense (E), or not affecting owner's equity (NOE). ________(a) Received cash for services performed ________(b) Paid cash to purchase equipment ________(c) Paid employee salaries g
Answer:
a. revenue (R), affecting owner's investment (I)
b. not affecting owner's equity (NOE)
c. expense (E) and affecting owner's investment (I)
Explanation:
Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.
Financing that individuals or institutions have provided to a corporation is: Multiple Choice always classified as a liability. classified as a liability when provided by creditors and as stockholders' equity when provided by owners. always classified as equity. classified as a stockholders' equity when provided by creditors and a liability when provided by owners.
Answer:
classified as a liability when provided by creditors and as stockholders' equity when provided by owners
Explanation:
Corporate finance can be explained as how the revenue, asset as well as is been taken care of in business. The financing could be by individual or institution.
It should be noted that Financing that individuals or institutions have provided to a corporation is classified as a liability when provided by creditors and as stockholders' equity when provided by owners
The president of Nash Company is considering a proposal by the factory manager for the purchase of a machine for $72,500. The useful life would be eight years, with no residual scrap value. The use of the machine will produce a positive annual cash flow of $14,000 a year for eight years. An annuity table shows that the present value of $1 received annually for eight years and discounted at 10% is 5.335. The net present value of the proposal, discounted at 10%, is:___________A. ($3,868).B. $2,190.C. $3,868.D. Zero.
Answer:
B. $2,190
Explanation:
Calculation for the net present value of the proposal
Using this formula
Net present value=(Annual cash flow×Discounted present value)- Machine purchase amount
Let plug in the formula
Net present value=($14,000 ×5.335)-$72,500
Net present value=$74,690-$72,500
Net present value= $2,190
Therefore the Net present value will be $2,190
A purposeful systematic process for collecting information on the important work related aspects of a job is called job description. TURE OR FALSE
Answer:
F
Explanation:
Suppose you make the decision to volunteer for an event in school for an hour this week. This means that you would have to take an hour off from your summer job, for which you earn $10 per hour. You spend $3 in bus fare in order to get to school and $5 for lunch. If you went to work, you would have been able to walk to your job, and lunch would have been provided to you by the office. The opportunity cost of volunteering is:
Answer:
$10 what you would have earned at the job
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
When you decide to volunteer, you would not be able to go to work. The opportunity cost of volunteering is what you would have earned if you were at work
g An accelerated depreciation method: Group of answer choices Results in reporting higher earnings every year. Depreciation an asset over a shorter life than does the straight-line method. Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. Is required for assets that become technologically obsolete before they physically wear out.
Answer:
The correct answer is the third option: Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.
Explanation:
To begin with, the name of "Accelerated Depreciation" is refered to a method used in the accouting fields in order to determine how much of a permanent asset has been worn out by the time that has passed and to put that amount in the accounts of the company so that there is a record of the money that has been lost for those depreciations. Moreover, in difference with the traditional method, this one uses a process in where the depreciation will be higher in the early years of the asset while in the latest will be less depreciation.
why is manufacturing becoming more competitive
Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1: Material $5 Labor 3 Overhead 2 $10 Beginning inventory at these costs on July 1 was 11,500 units. From July 1 to December 1, Convex produced 26,000 units. These units had a material cost of $7 per unit. The costs for labor and overhead were the same. Convex uses FIFO inventory accounting. a. Assuming that Convex sold 28,000 units during the last six months of the year at $14 each, what would gross profit be?
Answer:
Gross profit= $79,000
Explanation:
Giving the following information:
July 1, 20X1:
Material $5
Labor 3
Overhead 2
Total= $10
Beginning inventory at these costs on July 1 was 11,500 units.
From July 1 to December 1, Convex produced 26,000 units.
These units had a material cost of $7 per unit.
First, we need to determine the cost of goods sold. Under the FIFO (first-in, first-out) method, the COGS is calculated using the cost of the first units produces.
COGS= 11,500*10 + 16,500*12= $313,000
Now, we can calculate the gross profit:
Gross profit= sales - cogs
Gross profit= 28,000*14 - 313,000
Gross profit= $79,000
Which order is correct for the marketing framework?
Answer:
5C's, STP, 4P's
Explanation:
The marketing framework is a template that has instructions for the carrying out of marketing plan. Such a framework enables you to deliver the correct content to the right people, by using the right channels, at an appropriate time to attain your important or core marketing goals.
The correct order is 5C's, STP, 4P's.
Thank you!
What are the three components of the BI Ecosystem?
A. Data
B. Intelligence creation
C. Information Management
D. Innovation
Ted Catering received $1,180 cash in advance from a customer for catering services to be provided in three months. Determine the general journal entry that Ted Catering will make to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.
Answer:
Debit cash for $1,180
Credit unearned catering revenue for $1,180
Explanation:
Unearned revenue refers to the amount of money that is received in cash by a company for goods that are yet to be delivered or services that yet to be rendered.
The $1,180 advance payment received by Ted Catering is unearned catering revenue. The eneral journal entry that Ted Catering will make to record the cash receipt wil appear as follows:
Account title Dr ($) Cr ($)
Cash 1,180
Unearned catering revenue 1,180
(To record unearned catering revenue.)
________is due to the inability to "successfully" adapt in the new country.
Answer:
Acculturative stress
Explanation:
Acculturation can be defined as the experiences and changes, which may be psychological, social or cultural that individuals and group of people undergo when they come into contact or are trying to adapt with a different culture in a society.
Hence, acculturation involves the process of transferring customs, beliefs and values from a cultural group to another.
This ultimately implies that, acculturative stress is due to the inability to "successfully" adapt in the new country. For instance, an African immigrant who migrates to the United States of America may experience a significant level of stressors in adapting to the cultural values, customs and beliefs of the people living in the particular state or region.
Which of the following is NOT considered a step in activity-based costing?
A. Trace or allocate overhead costs to activity cost pools.
B. Identify and classify the major activities involved in the manufacture of specific products.
C. Identify a single overhead rate as the predetermined overhead rate.
. The overhead traced or allocated to the activity cost pools is assigned to products using cost drivers.
Answer: C. Identify a single overhead rate as the predetermined overhead rate.
Explanation:
Activity based costing works by assigning indirect and overhead costs to the activities that caused the costs to be incurred and then assigning those activities to the products those activities helped produce such that indirect and overhead costing is more accurate.
The steps involved include, tracing and allocating overhead costs to activity coat pools, identifying and classifying the major activities involved in the manufacture of specific products, and assigning overhead costs to products based on cost drivers.
It does not include identifying a single overhead rate as the predetermined overhead rate. This is a step is in Standard Costing.
Storm Concert Promotions Valle Home Builders Actual indirect materials costs$12,400 $7,000 Actual indirect labor costs 55,900 46,900 Other overhead costs 16,000 48,900 Overhead applied 91,600 98,300 Storm Concert Promotions Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Valle Home Builders Determine whether overhead is overapplied or underapplied. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.
Answer and Explanation:
Storm Concert Promotions
The computation of overhead is shown below:-
Factory Overhead-Storm
Indirect materials $12,400 Applied overhead 91,600
Indirect Labor $55,900
Other overhead
costs $16,000
Overapplied overhead $7,300
The Journal entry is shown below:-
Factory overhead Dr, $ 7,300
To Cost of goods sold $7,300
(Being cost of goods sold is recorded)
Valle Home Builders
The computation of overhead is shown below:-
Factory Overhead-Value home builders
Indirect materials $7,000 Applied overhead 98,300
Indirect Labor $46,900
Other overhead
costs $48,900
Overapplied overhead $4,500
Factory overhead Dr, $ 4,500
To Cost of goods sold $4,500
(Being cost of goods sold is recorded)
Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities.
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Based on the projections, Decker will have:___________.
a.) a financing deficit of $36
b.) a financing surplus of $36
c.) a financing deficit of $255
d.) zero financing surplus or deficit
e.) a financing surplus of $255
Answer:
Decker Enterprises
Based on the projections, Decker will have:___________:
b.) a financing surplus of $36
Explanation:
a) Data and Calculations:
Income Statement Current Projected
Sales na 1,500
Costs na 1,050
Profit before tax na 450
Taxes na 135
Net income na 315
Dividends na 95
Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 1,200 1,440 Long-term debt 300 360
Common stock 500 500
Retained earnings 430 650
Total 1,300 1,555 Total 1,300 1,591
b) Financing surplus 36
c) Decker Enterprises does not need additional financing, but has excess financing because the Liabilities and Equity are greater than the assets.
Multiple Choice based on accounting profits is preferable to the financial (or present value) break-even method. identifies the optimal maximum level of output for any given level of fixed assets. ignores both taxes and interest when computing the financial break-even point. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss. identifies the optimal sales price for any new product.
Complete Question:
Breakeven-Analysis:
Group of answer choices
A. based on accounting profits is preferable to the financial (or present value) break-even method.
B. identifies the optimal maximum level of output for any given level of fixed assets.
C. ignores both taxes and interest when computing the financial break-even point.
D. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.
E. identifies the optimal sales price for any new product.
Answer:
D. provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.
Explanation:
Breakeven-Analysis provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.
It is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income. It is also known as the cost-volume-profit analysis in financial accounting.
Generally, to use the Breakeven-Analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
When a business offers valuable goods and services what is the potential negative effect of this?
1) causing financial instability 2) disturbing communities
3) generating pollution
4) creating safety risks
Answer:
Option 1, 3 and 4 is the appropriate answer.
Explanation:
Potential negative impacts that industry might have on communities include emissions and waste generation, health & security threats, environmental disturbance as well as financial uncertainty. The future detrimental consequences of the industry are significant problems, but workers should treat themselves in full accordance with the fundamental to modern with either the common values of society.Choice 2 isn't relevant to the situation in question. So the three remaining options are the appropriate response.
The typical starting point of any firm's marketing mix is the:____________
A) analysis of what production equipment is available and owned by the company
B) design of the promotion campaign to be used for the product
C) selection of the places through which the good or service will be sold
D) determination of the product's price, enabling future revenues and budgets to be estimated
E) development of the good or service to be sold
Answer: E. development of the good or service to be sold
Explanation:
The typical starting point of any firm's marketing mix is the development of the good or service to be sold. The marketing mix is simply a mix of the marketing strategies that are vital to achieve marketing aims and increase sales.
It should be noted that marketing mix begins with the product and without this, distribution, pricing and the promotion are not relevant.
Assume that your aunt sold her house on December 31, and to help close the sale she took a second mortgage in the amount of $10,000 as part of the payment. The mortgage has a quoted (or nominal) interest rate of 12%; it calls for payments every 6 months, beginning on June 30, and is to be amortized over 10 years. Now, 1 year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. (This interest will be income to your aunt and a deduction to the buyer of the house.) To the closest cent, what is the total amount of interest that was paid during the first year
Answer:
Total interest paid during the first year: $1,183.69
Explanation:
First, we need to know the installment amount:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 10,000.00
time 20
rate 0.06
[tex]10000 \div \frac{1-(1+0.06)^{-20} }{0.06} = C\\[/tex]
C $ 871.85
now we calcualte the interest and amortization made in the first payment:
interest: 10,000 x 6% = 600
Amortization 871,85 - 600 = 271,85
Principal at second installment:
10,000 - 271.85 = 9,728.15
Interest 9,728.15 x 0.06 = 583,69
Total interest: 583,69 + 600 = 1.183,69
How do organizations use and deliver podcasts business communication?
Explanation:
Podcasts are usually recorded audio clips but may also be in video or document formats.
The following are some of the uses of podcasts by organizations;
to market new productsprovide information about the organizationto reach new audiences (for example, audio podcast reaches the visually impaired)These podcasts are usually delivered via the organization's podcast channel/account, so users can just follow the organization's channel to get the latest episodes.