Business
On September 1 of the current year,Scots Company experienced a flood that destroyed the company's entire inventory.Because the company had not completed its month end reporting for August,it must estimate the amount of inventory lost using the gross profit method.At the beginning of August,the company reported beginning inventory of $215,450.Inventory purchased during August was $192,530.Sales for the month of August were $542,500.Assuming the company's typical gross profit ratio is 40%,estimate the amount of inventory destroyed in the flood.A) $87,480B) $134,520C) $109,980D) $82,480E) $81,480
1. Calculate the income elasticities of demand for the following: A. Income rises by 20%; demand increases by 10%. B. Income rises from $30,000 to $40,000; demand increases (at a constant price) from 16 to 19. 2. For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explain.A. Pen, pencil. Close to zero. While they are substitutes they are not close substitutes. Negative. They are complements. Positive. They are close substitutes.B. Ketchup, hot dogs. Negative. They are complements. Positive. They are close substitutes. Close to zero. While they are substitutes they are not close substitutes.C. Tortillas, lobster tail. Negative. They are complements. Positive. They are close substitutes. Close to zero. While they are substitutes they are not close substitutes.D. Home heating oil, natural gas. Positive. They are close substitutes. Negative. They are complements. Close to zero. While they are substitutes they are not close substitutes.3. One football season Dominos Pizza, a corporate sponsor of the Washington Redskins (a football team), offered to reduce the price of its $8 medium-size pizza by $1 for every touchdown scored by the Redskins during the previous week. Until that year, the Redskins werent scoring many touchdowns. Much to the surprise of Dominos, in one week in 1999, the Redskins scored 1 touchdown. (Maybe they like pizza.) Dominos pizzas were selling for $7 a pie! The quantity of pizzas demanded soared the following week from 50 pies an hour to 60 pies an hour. What was price elasticity of demand for Dominos pizza?4. When tolls on the Dulles Airport Greenway were reduced from $2.00 to $0.75, traffic increased from 12,000 to 34,000 trips a day. Assuming all changes in quantity were due to the change in price, what is the price elasticity of demand for the Dulles Airport Greenway?5. Determine the price elasticity of demand if, in response to an increase in price of 20%, quantity demanded decreases by 25%.6. When the price of ketchup falls by 17%, the demand for hot dogs rises by 4%b. Income rises from $75,000 to $90,000; demand increases (at a constant price) from 50 to 55..A. Calculate the cross-price elasticity of demand.B. Are the goods complements or substitutes: .C. In the original scenario, what would have to happen to the demand for hot dogs for us to conclude that hot dogs and ketchup are substitutes?1. The demand for hot dogs would have to decline.2. The demand for hot dogs would have to remain unchanged.3. The demand for hot dogs would have to rise.7. Calculate the income elasticities of demand for the following:A. Income rises by 5%; demand increases by 5%.B. Income rises from $75,000 to $90,000; demand increases (at a constant price) from 50 to 55.8. One football season Dominos Pizza, a corporate sponsor of the Washington Redskins (a football team), offered to reduce the price of its $8 medium-size pizza by $1 for every touchdown scored by the Redskins during the previous week. Until that year, the Redskins werent scoring many touchdowns. Much to the surprise of Dominos, in one week in 1999, the Redskins scored 1 touchdown. (Maybe they like pizza.) Dominos pizzas were selling for $7 a pie! The quantity of pizzas demanded soared the following week from 50 pies an hour to 60 pies an hour. What was price elasticity of demand for Dominos pizza?
Sales and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice. 5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the goods sold was $25,000. 7. Returned merchandise with an invoice amount of $6,850 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the goods sold was $64,800. 22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the goods sold was $10,000. 23. Sold merchandise for cash, $91,200. The cost of the goods sold was $55,000. 28. Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250. 31. Paid MasterCard service fee of $1,650.Required:Journalize the transactions.
On December 31, 2019, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; December 1, $1,500,000. The building was completed in February 2021. Additional information is provided as follows. 1. Other debt outstanding 10.year, 13% bond, December 31, 2013, interest payable annually $4,000,000 6-year, 10% note, dated December 31, 2017, interest payable annually $1,600,000 2. March 1, 2020, expenditure included land costs of $150,000 3. Interest revenue earned in 2020 $49,000 Instructions:Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.The amount of interest$SHOW LIST OF ACCOUNTSPrepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Date Account Titles and Explanation Debit CreditDecember 31, 2020
Dales Business Services experienced the following events during its first year of operations:1. Acquired $20,000 cash from the issue of common stock.2. Borrowed $12,000 cash from First Bank.3. Paid $5,000 cash to purchase land.4. Received $25,000 cash for providing boarding services.5. Acquired an additional $5,000 cash from the issue of common stock.6. Purchased additional land for $4,000 cash.7. Paid $10,000 cash for salary expense.8. Signed a contract to provide additional services in the future.9. Paid $1,200 cash for rent expense.10. Paid a $1,000 cash dividend to the stockholders.11. Determined the market value of the land to be $18,000 at the end of the accounting period.Required:Classify each event as an asset source, use, or exchange transaction or as not applicable (NA).
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is:__________ A. $6,834 per order. B. $240 per order. C. $0.12 per part. D. $1.20 per direct labor hour.
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,670 Work-in-Process Inventory 21,090 Finished Goods Inventory 8,680 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,360 $2,647 $3,807 Direct labor 1,780 1,540 4,120 Applied overhead 1,157 1,001 2,678 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,520. Materials requisitioned: Job 114, $16,190; Job 115, $12,340; and Job 116, $4,850. Job tickets were collected and summarized: Job 114, 170 hours at $11 per hour; Job 115, 210 hours at $14 per hour; and Job 116, 90 hours at $17 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $4,590. Job 115 was completed and transferred to the finished goods warehouse. Job 115 was shipped, and the customer was billed for 125 percent of the cost.Required:a. Calculate the predetermined overhead rate based on direct labor cost.b. Calculate the ending balance for each job as of April 30.