Answer: $880,000 as gain
Explanation:
Unrecognized gain in 2019:
= 86 - 56
= $30 per bond
Unrecognized gain in 2020:
= 100 - 86
= $14 per bond
Gain from sale:
= (Unrecognized gain 2019 + Unrecognized gain in 2020 + Gain on sale) * no. of bonds
= (30 + 14 + (144 - 100) ) * 10,000
= $880,000 as gain
The December Customer Survey indicates how customers perceived the products in the segment. The survey evaluates the product against the buying criteria. Zero indicates the product met none of the criteria as of December 31, however it had a higher score earlier in the year. Which of the following conditions does not contribute to a perfect score of 100 for a product?
1) Product was priced at the bottom of the range.
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
3) Product had 100% Awareness and 100% Accessibility.
4) All of these are required for a 100 customer satisfaction.
Answer:
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
Explanation:
The following conditions that contribute 100 as a perfect score is
a. The product should be priced at the bottom range
b. The product contains 100% awareness & 100% accessibility
c. The customer satisfaction needed 100
But the product that is perfect positioned so the same would not be contributed as 100%
Since ages & distance from the ideal spots varies so the score varies month to months
As you employ people, you are responsible for paying the employer's share of certain taxes, such as Social Security
(6.2% of wages) and Medicare (2.45% of wages). If your payroll is $250,000 for the year, how much will you owe in these two taxes?
A.) $20,000
B.) $20.625
C.) $21,625
D.) $22,785
Answer: c $21,625. I just took it
$21,625 will you owe in these two taxes. The correct option is C.
Why is it important to have social security?Compulsory payments made to the general government known as social security contributions give recipients the right to receive a (probable) social benefit in the future. The elderly, disabled workers, injured soldiers, and families who have lost a spouse or parent are all helped by Social Security. At present, over 65 million people receive monthly Social Security benefits while approximately 179 million people are employed and contributing to Social Security.
Given
Payroll = $250,000
Medicare Tax Rate = 2.45%
Social Security Tax Rate = 6.2%
Required to Calculate the sum of these two taxes =?
= 250,000 x 8.65(2.45 + 6.2)/ 100
= $21,625
Medicare tax is not deducted from your paycheck if you work for yourself. Typically, you would submit your estimated tax payments on a quarterly basis and use them to pay your self-employment taxes, including Social Security and Medicare taxes.
Thus, the ideal selection is option C.
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Consider Franco Co, the parent of a US-based multinational corporation (MNC) that uses forecasted exchange rates to assist with various business functions. Franco Co is deciding whether to deposit cash at a bank in the eurozone. The possible appreciation, or depreciation, of the euro affects the number of dollars the MNC ultimately receives. Franco Co uses a forecasted exchange rate of the euro to help them make a decision.
This is an example of using exchange rate forecasting to assist with_____"financing in foreign currency; short-term investment; capital budgeting; short-term investment; hedging; earning assessment" decisions, with the goal of improving the value of the MNC via influencing the______"the cost of capital; dollar value of foreign cash flows"
Answer:
This is an example of using exchange rate forecasting to assist with capital budgeting decisions, with the goal of improving the value of the MNC via influencing the dollar value of foreign cash flows.
Capital budgeting decisions have to do with decisions a company makes on investments that it would like to go into. Depositing money into a Eurozone bank account is that investment so this is a capital budgeting decision.
The goal of this investment is to improve the value of the company by gaining from an appreciation of the Euro so that a higher dollar amount can be acquired for the Euros held.
Blossom Company borrowed $311,000 on January 1, 2020, by issuing a $311,000, 10% mortgage note payable. The terms call for annual installment payments of $52,000 on December 31. (a) Prepare the journal entries to record the mortgage loan and the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Blossom Company
Journal Entries:
January 1, 2020:
Debit Cash $311,000
Credit Mortgage Note Payable $311,000
To record the borrowing of 10% mortgage note payable.
December 31, 2020:
Debit Mortgage Note Payable $52,000
Credit Cash $52,000
To record the first repayment of the mortgage note.
Debit Interest Expense $31,100
Credit Cash $31,100
To record the payment of interest on the note.
Explanation:
a) Data and Calculations:
Mortgage Note Payable = $311,000
Interest rate of mortgage = 10%
Annual installment payments = $52,000
Date of repayment = December 31
Interest expense = $31,100 ($311,000 * 10%)
A Parent Company owns 100 percent of its Subsidiary. During 2018, the Parent company reports net income (by itself, without any investment income from its Subsidiary) of $650,000 and the subsidiary reports net income of $260,000. The parent had a bond payable outstanding on January 1, 2018, with a carrying value equal to $546,000. The Subsidiary acquired the bond on January 1, 2018 for $513,500. During 2018, the Parent reported interest expense (related to the bond) of $45,500, while the Subsidiary reported interest income (related to the bond) of $41,600. What is consolidated net income for the year ended December 31, 2018
Answer:
$913,900
Explanation:
Calculation to determine the consolidated net income for the year ended December 31, 2018
Using this formula
Ending consolidated net income =(2018 Parent company net income+Subsidiary reports net income)+(Parent reported interest expense-Subsidiary reported interest income)
Let plug in the formula
Ending consolidated net income=( $650,000+ $260,000)+($45,500-$41,600
Ending consolidated net income= $650,000+ $260,000+ $3,900
Ending consolidated net income=$913,900
Therefore the consolidated net income for the year ended December 31, 2018 is $913,900
Elsanora Corporation reports the year-end information from 2018 as follows: Sales (100,000 units) $500,000 Less: Cost of goods sold 300,000 Gross profit 200,000 Operating expenses (includes $20,000 of Depreciation) 120,000 Net income $ 80,000 Elsanora is developing the 2019 budget. In 2019 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost of goods sold as a percentage of sales is expected to increase to 62%. Other than depreciation, all operating costs are variable. What is the new net income
Answer:
Results are below.
Explanation:
Giving the following formula:
Unitary selling price= 500,000/100,000= $5
Operating expenses= $1
Depreciation= $20,000
New selling price= 5*1.1= $5.5
Sales in units= 100,000*0.95= 95,000
COGS rate= 0.62
To calculate the net income, we need to use the following structure:
Sales= 5.5*95,000= 522,500
COGS= 522,500*0.62= (323,950)
Gross profit= 198,550
Operating expenses= (95,000 + 20,000)= (115,000)
Net income= 83,550
Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Russell expected each Class 2 return to require 4.0 hours of labor at a cost of $30 per hour. The firm actually completed 600 returns. Actual labor hours averaged 3.6 hours per return and actual labor cost amounted to $34.50 per hour.
Required
a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U).
b. Determine the labor price variance and indicate whether it is favorable (F) or unfavorable (U).
c. Determine the labor usage variance and indicate whether it is favorable (F) or unfavorable (U).
Answer:
a. Total labor variance:
= (Actual labor cost - Standard labor cost) * No of returns completed
= [ (34.50 * 3.6) - (30 * 4) ] * 600
= $2,520 Unfavorable
Unfavorable because the budget was exceeded by the actual costs.
b. Labor Price variance:
= (Actual labor cost - Standard labor cost) * Actual hours
= (34.50 - 30) * 600 returns * 3.6 hours per return
= $9,720 Unfavorable
Budget was exceeded so unfavorable.
c. Labor usage variance:
= (Actual labor hours - Standard labor hours) * Standard labor rate
= [ (3.6 hours * 600 returns) - (4 hours * 600) ] * 30
= -$7,200
= $7,200 favorable
Budget was not exceeded so this is a Favorable variance.
how do i type i am serious
1
Place your fingers in the "home" position. That's the position in which your fingers will rest between keystrokes. No matter what part of the keyboard you're using, your fingers will always come back to rest in this position.[1]
Place your right index finger on the "J" key and let the other three fingers fall naturally onto the "K", "L" and ";" keys respectively. Place your left index finger on the "F" key and let the other three finger fall naturally onto the "D", "S", and "A" keys respectively. Both thumbs should rest on the space bar, but only the right thumb should key it.[2]
You should feel a raised bump on both the "F" and "J" keys. These will allow your fingers to find the home position without having to look at the keyboard.
2
Type each key from left to right. Type each letter covered by the fingers in the home position, going from left to right: a s d f j k l ;. You shouldn't have to move your fingers from their home positions. Just press the keys they are resting on.
3
Repeat, but this time capitalize. Repeat the step above, but this time in capital letters: A S D F J K L :. Use the shift key to capitalize rather than the caps lock. Push the shift key by moving only your nearest pinkie finger and pressing and holding it while pushing the desired letter with your other hand.
In other words, when the letter you would like capitalized is typed with your left hand, you press the right shift key with your right pinkie.
When the letter you would like capitalized is typed with your right hand, you press the left shift key with your left pinkie.
4
Become familiar with the rest of the alphabet. Learn where each letter is positioned on the keyboard, and use the nearest finger to contact each key. (The thumbs are never the nearest finger; they are used only on the space bar.)[3]
"q" "a" and "z" are typed with the left pinkie, and so are the tab, caps lock, and shift keys.
"w" "s" and "x" are typed with the left ring finger.
"e" "d" and "c" are typed with the left middle finger.
"r" "f" "v" "b" "g" and "t" are typed with the left index finger.
Your thumbs should never leave the space bar.
"u" "j" "n" "m" "h" and "y" are typed with your right index finger.
"i" "k" and the keys with "," and "<" are typed with the right middle finger.
"o" "l" and the keys with ">" and "." are typed with the right ring finger.
Your right pinkie finger is used for typing: "p", ";", ":", "'", """ (a quotation mark), "/", "?", "[", "{", "]", "}", "\", "|", and is used for pressing the shift, enter, and backspace keys.
5
Type your first sentence. Starting from the home position, type: "The quick brown fox jumps over the lazy dog". This sentence contains every letter in the alphabet, so it's a perfect sentence for practicing the correct finger positioning.
Type the sentence over and over, watching your fingers to make sure they go to the right keys and immediately return to home position.
Once you begin to feel comfortable with the way your fingers are moving, try to look at the screen while you type rather than looking at the keyboard. This is known as touch typing.
Exercise 13-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 760 $ 77 Accounts receivable (net) 2,080 1,890 Inventory 830 810 Other current assets 440 433 Total current assets $4,110 $3,210 Total current liabilities $2,100 $1,590 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year
Answer:
See below
Explanation:
Data given
Cash and cash equivalents $760 $77
Accounts receivables net $2,080 $1,890
Inventory $830 $810
Other current assets $440 $433
Total current assets $4,110 $3,210
Total current liabilities $2,100 $1,590
Net credit sales $8,258
Cost of goods sold $5,328
1. Current ratio = Current assets/Current liabilities
= 4,110/2,100
= 1.96
2. Accounts receivable turnover = Credit sales/Average accounts receivables
= 8,258÷ [(2,080+1,890)/2]
= 8,258 ÷ 1,985
= 4.16 times
3. Average collection period = Average accounts receivables/Credit sales × 365 days
= (1,985/8,258) × 365
= 87.7 days
4. Inventory turnover = Cost of goods sold/Average inventory
= 5,328/[830 + 810)/2]
= 5,328/820
= 6.5 times
5. Days in inventory = Average inventory/Cost of goods sold × 365
= (820/5,328) × 365
= 56.2 days
Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months.
How many units of A1 does Alana Company expect to use in production during the second month?
A) 12,000 units
B) 12,500 units
C) 10,000 units
D) 10,750 units
Answer:
Direct material used (A1)= 12,500 units
Explanation:
To calculate the units of A1 used in the second month of production, we need to use the following formula:
Direct material used= beginning inventory + production - ending inventory
Beginning inventory= (4,000 - 500)= 3,500
Production= 10*1,200= 12,000
Ending inventory= (3,500 - 500)= 3,000
Direct material used (A1)= 3,500 + 12,000 - 3,000
Direct material used (A1)= 12,500 units
. It is important to conserve fossil fuels because
Explanation:
However, there is a more important reason to conserve fossil fuels, and that's to help heal the environment. Burning petroleum, coal and natural gas fills the air with harmful pollutants, including nitrogen oxides, sulfur dioxide, carbon dioxide, ozone and a host of hydrocarbons.
An advantage of using interchangeable parts is that they
Question 4 options:
A)
are made out of cheaper materials.
B)
make it easier to repair machines.
C)
are custom made to fit each machine.
D)
are easier to work with.
Answer:
answer is part B
Explanation:
Balance Sheet Below are items that may appear on the balance sheet. Required: Match each item with its appropriate classification.
Item
1. Buildings
2. Copyright
3. Supplies
4. Unearned service revenue
5. Prepaid insurance
6. Common stock
7. Rent payable
8. Accounts receivable
9. Allowance for doubtful accounts
10. Bonds payable
Classification
A. Current assets
B. Property, plant, and equipment
C. Intangible assets
D. Current liabilities
E. Long-term liabilities
F. Contributed capital
G. Retained earnings
Answer:
Item Classification
1. Buildings - Property, plant, and equipment
2. Copyright - Intangible assets
3. Supplies - Current assets
4. Unearned service revenue - Current liabilities
5. Prepaid insurance - Current assets
6. Common stock - Contributed capital
7. Rent payable - Current liabilities
8. Accounts receivable - Current assets
9. Allowance for doubtful accounts - Retained earnings
10. Bonds payable - Long-term liabilities
Explanation:
A. Current assets - Assets that exist for a period not exceeding 12 months such as supplies.
B. Property, plant, and equipment - Assets of a Physical Nature that are expected to be used for more than a year.
C. Intangible assets - Assets that do not have a physical nature and are expected to be used for more than a year.
D. Current liabilities - Short term obligation due within a period of 12 months.
E. Long-term liabilities - Long term obligations due within a period exceeding 12 months.
F. Contributed capital - Capital raised by owners of the company excluding reserves attributed to them.
G. Retained earnings - Amounts set aside out of profits that are distributable to the shareholders of the company. Therefore Incomes and expenses are found here.
Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred:
a. Collected $50 cash per share from four individuals and issued 6,000 shares of common stock to each.
b. Issued 7,000 shares of common stock to an outside investor at $50 cash per share.
c. Issued 9,000 shares of preferred stock at $15 cash per share.
Required:
Prepare the journal entries indicated for each of these transactions.
Answer:
the correct answer is C. hope it helps
You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was depreciating using straight line depreciation over a ten year schedule. When you initially placed the asset into service, you expected the asset to have a disposal / salvage value of $0. At the end of year seven the project is suddenly cancelled due to a change in technology and the asset is sold in the open market for $110,000. Prior to this transaction, the firm was forecasted to earn $1,000,000 profit after tax in year seven and the tax rate for the firm is 20%. What is the cash flow, in time period seven, as a result of this transaction
Answer: $112000
Explanation:
First, we calculate the book value in year 7 which will be:
= Depreciation × Balance life
= $400,000 × 3/10
= $120,000
Then, the cash flow as a result of the transaction will be:
= Asset sale - (Asset - Book value) × Tax rate
= 110000 - [(110000 - 120000) × 20%]
= 110000 - (-2000)
= 110000 + 2000
= 112000
Cash flow is the determination of inflow and outflow of cash due to business or non-business activities. The cash flow for a particular year is determined by preparing the cash flow statement. There are two methods for cash flow statements those are: direct and indirect methods.
The cash flow for the transaction is $112,000
Computation:
The cash flow in the time period of seven years is determined as follows:
[tex]\begin{aligned}\text{Cash Flow}&=\text{Sale Value of Asset}-[\left(\text{Asset-Book Value}\right)\times\text{Tax Rate}]\\&=\$110,000-[\left(\$110,000-\$120,000 \right )\times20\%]\\&=\$110,000-\left(-\$2,000 \right )\\&=\$112,000 \end{aligned}[/tex]
Working Note:
The calculation of the book value of the asset at the 7th year:
[tex]\begin{aligned}\text{Book Value}&=\text{Depreciation}\times\dfrac{\text{Remaining Life of Asset}}{\text{Estimate Useful Life of the Asset}}\\&=\$400,000\times\dfrac{3}{10}\\&=\$120,000\end{aligned}[/tex]
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Granite Company purchased a machine costing $137,000, terms 3/10, n/30. The machine was shipped FOB shipping point and freight charges were $3,700. The machine requires special mounting and wiring connections costing $11,700. When installing the machine, $3,200 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.
Answer:
s
Explanation:
Bailey Manufacturing Co.'s static budget at 10,000 units of production includes $60,000 for direct labor and $6,000 for electric power. Total fixed costs are $20,000. At 14,000 units of production, a flexible budget would show a.variable costs of $66,000 and $20,000 of fixed costs. b.variable and fixed costs totaling $120,400. c.variable costs of $92,400 and $28,000 of fixed costs. d.variable costs of $92,400 and $20,000 of fixed costs.
Answer:
d. variable costs of $92,400 and $20,000 of fixed costs.
Explanation:
Flexible Budget is a budget that has been adjusted to meet the actual level of activities (units produced) during the year.
Step 1 : Determine the Variable unit Costs
Direct Labor ($60,000 ÷ 10,000) = $6.00
Electric Power ($6,000 ÷ 10,000) = $0.60
Total Variable Cost per unit = $6.60
Step 2 Determine Total Cost
Total Cost = Variable Cost + Fixed Cost
where x units are produced this will be :
Total Cost = $6.60x + $20,000
for 14,000 units produced this will be :
Total Cost = $6.60 x 14,000 + $20,000
= $92,400 + $20,000
= $112,400
Conclusion :
The correct option is d. variable costs of $92,400 and $20,000 of fixed costs.
Limited liability is an advantage of what form of business ownership?
Question 16 options:
A)
Sole proprietorship
B)
Franchise
C)
Partnership
D)
Corporation
Answer:
d
Explanation:
Answer:
Corporation
Explanation:
Instruction. Use insertion about to guido
discussion. Give
your
de a detailed description of the management conces and 17 entral
resources needed by the business to achieve its objectives
Answer:
Resources needed by a business to achieve it objectives include but are not limited to the following:
Human Resources: No matter how beautiful a business plan is, it is as worthless as the document on which it is written if it fails to attract the right set of human resources to help bring it to life.
Financial Resource: In business, there is a common cliche that is ever relevant and it says: Cash is King. Whether it is self-owned finance, equity financing, debt financing, grants, etc every business needs money to finance its operations.
Place of Operation
This can either be a physical space or cyber space or both. However, a business needs a space to operate from. In the wake of the recent pandemic, there has been a strong shift and preference towards a combination of domestic space and electronic space as places from where businesses run their operations. This of course is dependent on the nature of the business.
Machinery and Equipment
The type required by the business is directly related to the nature of the business. Whilst a Maize farmer will require land and tractors etc, an IT company will spend more in favor of electronic equipment, laptops, servers, etc.
Vehicle
The question here is whether it is owned or not. It is a matter of what the business requires in order to transport human resources, its input and output from one location to another with ease and at the lowest cost possible.
Some companies in-source their transportation needs. Others out-source them.
Supplies
These may include but are not limited to stationery, fuel, spare parts, refreshment etc.
Utility
Examples of these are:
Electric power supplyInternet connectivityCommunication services etcOther resources include:
Strong political affiliationPatentsCopyrightsLicenses and PermitsTrademarksJoint Venture RelationshipsPartnershipsetc
Cheers
After the accounts have been adjusted at March 31, the end of the fiscal year, the following balances were taken from the ledger of Haverty Services Co.:
Retained Earnings $587,500
Dividends 40,000
Fees Earned 542,145
Wages Expense 349,700
Rent Expense 83,900
Supplies Expense 31,475
Miscellaneous Expense 10,490
Required:
Journalize the two entries required to close the accounts.
Answer and Explanation:
The two entries for closing the accounts are shown below:
1 Fees earned $542,145
To Income Summary $542,145
(Being revenue accounts are closed)
2 Income Summary Dr $475,565
To Wages expense $349,700
To Rent Expense $83,900
To Supplies Expense $31,475
To Miscellaneous expense $10,490
(Being expense accounts are closed)
These two entries should be recorded
Item8 10 points eBookPrintReferencesCheck my workCheck My Work button is now enabledItem 8 You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Pay $660 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $18,850, due when you purchase the car. 1-a. Determine how much cash the dealer would charge in option (a). (Round your answer to 2 decimal places.) 1-b. In present value terms, which offer is clearly a better deal
Answer:
1. a. $20,199.85
b. One time payment of $18,850.
Explanation:
1. a. Find the present value of $660 per month (annuity) and $12,000 at the end of 25 months.
Period = 25 months
Interest = 24% / 12 months = 2%
Present value of annuity = 660 * ( 1 - (1 + 2%) ⁻²⁵) / 2%
= $12,885.48
Present value of $12,000 at end of 25 months.
= 12,000 / ( 1 + 2%)²⁵
= $7,314.37
Present value = 12,885.48 + 7,314.37
= $20,199.85
1.b. Making a one time payment of $18,850 is the better deal.
7. Food is set out on a counter, either for self - service or to be
served by an attendant.
a. buffet
c. cafeteria
b. counter
d. tray or table service
You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles. Make your case, arguing from both developed and developing country perspectives, in terms of who gains and who loses.
Answer:
The answer is explained below in separate headings.
Explanation:
Resources available such as land, labour, capital and entrepreneurship are different for each country. Some may have more while others might have less. The large (developed) countries tend to be more resourceful than those small (developing) countries.
Developed Country
In this case, the capital available at the developed country's disposal helps them export manufactured goods and import labour-intensive goods from developing country with relative ease in order to produce and profit from the market.
Developing Country
From their point of view, the potential to trade outward results in the enhancement in the country's growth and efficiency. This ultimately creates an opportunity for the consumers to benefit from the variety of goods available to choose from and workers of higher incomes.
Hence, if the trade barriers are increased then it would affect both the country's in terms of profit. However, the effect would be more adverse for developing country rather than for a developed country.
Pet business examples
Hello mate... here's the answer.,...
Answer:
*There are many pet business examples but the few I know are these:- *pet sitting,pet walking , training the dog,pet bakery if u like my answer thank them....
To qualify for a debt consolidation loan, you must have some type of collateral that secures the payment of the debt.
a. True
b. False
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2019: Account receivable 12,000 Inventory 40,000 Patent $12,000 Investment $30,000 Prepaid insurance $6000 Note receivable due 2026 $50,000 Investments consist of treasury bills that were purchased in November this year and mature in January next year. Prepaid insurance is for the next two years. What amount should be included in the current asset section of Janson's December 31, 2013, balance sheet
Answer:
$82,000
Explanation:
Current Assets are assets of a short term nature that exists in the business for a period not exceeding 12 months.
The current asset section
Inventory $40,000
Investment $30,000
Account receivable $12,000
Total $82,000
Therefore
The current asset section of Janson's December 31, 2013, balance sheet would show a total of $82,000
Rooney Company, which sells electric razors, had $350,000 of cost of goods sold during the month of June. The company projects a 5 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $28,000, and the desired ending inventory balance for July is $29,000. Rooney pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $39,000.
Required:
a. Determine the amount of purchases budgeted for July.
b. Determine the amount of cash payments budgeted for inventory purchases in July.
Answer:
A. $368,500
B. $276,375
Explanation:
A. Calculation to determine the amount of purchases budgeted for July
Using this formula
Budgeted purchase = Cost of goods sold + Ending inventory - Beginning inventory
Let plug in the formula
Budgeted purchase=$350*000*1.05 + $29,000 - $28,000
Budgeted purchase=$367,500+$29,000-$28,000
Budgeted purchase=$368,500
Therefore the amount of purchases budgeted for July is $368,500
b. Calculation to Determine the amount of cash payments budgeted for inventory
Cash payment = $368,500*75%
Cash payment= $276,375
Therefore the amount of cash payments budgeted for inventory is $276,375
You are responsible for managing the diaper inventory at an Amazon warehouse. Demand for diaper boxes from this warehouse is predictable and is about 10,000 boxes per month. The fixed cost of placing a diaper box order from a supplier is $400 per order (mostly due to fixed transportation costs). Furthermore, you estimate that the holding cost of a box of diapers is about $0.5 per month. The wholesale cost of each box of diapers from the supplier is $15 per box.
1. What is the cost-minimizing number of boxes that you should order from your supplier? How often should you place this order?
2. Due to the consolidation of replenishment orders of different products, your manager informs you that you are constrained to re-ordering diaper boxes only once a month (i.e., you must place a replenishment order once every month). What should be your ordering quantity in this case? By how much does your average monthly costs increase compared to the ordering quantity in Question 1?
Answer:
1. EOQ = 4,000 units per order.
place an order every 12 days.
2. If you can only make one purchase per month, the purchase order should be for 10,000 units.
Total inventory costs would increase by $10,800
Explanation:
annual demand = 10,000 x 12 = 120,000
annual holding cost per unit = $0.50 x 12 = $6
order cost = $400
EOQ = √[(2 x 120,000 x $400) / $6] = √16,000,000 = 4,000
total number of orders per year = 120,000 / 4,000 = 30
each order will be placed after 365 / 30 = 12.17 days
total inventory costs = (30 x $400) + (2,000 x $6) = $24,000
new inventory costs = (12 x $400) + (5,000 x $6) = $34,800
Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.70 per guest check-in, $18.00 per room cleaning, and $3.00 per served meal (not including food). Julie Campbell visited the hotel for a 5-night stay. Julie had 6 meals in the hotel during the visit. Determine the total activity-based cost for Campbell's visit during the month. Round your answer to the nearest cent.
Answer:
Allocated costs= $116.7
Explanation:
Giving the following formula:
The activity rates associated with each activity pool are $8.70 per guest check-in, $18.00 per room cleaning, and $3.00 per served meal (not including food).
Julie Campbell visited the hotel for a 5-night stay. Julie had 6 meals in the hotel during the visit.
To allocated costs, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated costs= 8.7 + 18*5 + 3*6
Allocated costs= $116.7
Morris is a software engineer for a manufacturer. He wrote a program for the accounting department. During the testing phase, he noticed that the software would occasionally return an erroneous result, but he decided not to make modifications to the program because there were concerns about the project going over budget. He decided that it was better for him to be seen as someone who could stay within budget, and rationalized that the error was minor, and would not affect financial performance.Which principle of the Software Engineering Code of Ethics has Morris violated
Answer:
The principle of the Software Engineering Code of Ethics that Morris has violated is:
the Product principle.
Explanation:
The Product principle requires that Morris' program (product and related modifications) should meet the highest professional standards. Staying within budget and rationalizing an error as minor are not requirements of the Software Engineering Code of Ethics that Morris subscribed to.
Other requirements of the code include acting in the best interest of the public, client, and employer; maintaining high product standards; integrity and independence in professional judgment; using an ethical approach; maintaining professional integrity and independence; being fair and supportive to colleagues; and ensuring participation in lifelong learning.
The principle of the Software Engineering Code of Ethics which Morris has violated is:
The Product principle.
Based on the given scenario, we can see that Morris who is a software engineer was running a program which he had written for the accounting department when he discovered that there was a bug.
However, he decided not to report this bug which was discovered and decided to keep the app, as he was already over budget and thought it would not be a huge hindrance.
This type of negligence goes against the principle of the product principle which entails that any given program must be of the highest standard available.
Therefore, the correct answer is product principle.
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