Answer:
c. Work in Process--Department 2 375,000 Work in Process--Department 1 375,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 $375,000 ($100,000 + $125,000 + $150,000)
To Work in Proces - Department 1 $375,000
(Being the flow of cost from Dept 1 to Dept 2 is recorded)
Here the work in process for dept 2 is debited as it increased the assets and credited the work in process for dept 2 as it decreased the assets
Mary owns her own business and has just attended a cash flow management seminar where it was suggested the businesses should delay paying their suppliers as long as absolutely possible even if doing so violates the stated payment terms. Mary decides to continue paying her suppliers on time in accordance with their payment terms because Mary would like her customers to pay her on time. Mary has reached her decision in accordance with:_________.
Answer:
Kantian ethics.
Explanation:
Kantian ethics is a deontological moral theory founded on Kant's theory. According to this theory, the right or wrong actions doing does not rely upon the consequences but whether or not they carry out their duty.
In the given case, Mary's decision is in accordance with Kantian ethics as she decides to pay her suppliers on time.
Therefore, Kantian ethics is the correct answer.
Etonic Inc. is considering an investment of $369,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $249,000 and $74,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. Etonic will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $49,000 in nominal terms at that time. The one-time net working capital investment of $12,000 is required immediately and will be recovered at the end of the project. All corporate cash flows are subject to a 39 percent tax rate. What is the project’s total nominal cash flow from assets for each year?
Answer:
annual increase in revenues = $249,000 - $74,000 = $175,000
then they grow by 2% per year
depreciable value = $369,000 - $49,000 = $320,000
depreciation expense per year = $320,000 / 5 = $64,000
initial investment = $369,000 + $12,000 = $381,000
corporate tax rate = 39%
cash flow year 0 = -$381,000
cash flow year 1 = [($175,000 - $64,000) x (1 - 39%)] + $64,000 = $131,710
cash flow year 2 = [($178,500 - $64,000) x (1 - 39%)] + $64,000 = $133,845
cash flow year 3 = [($182,070 - $64,000) x (1 - 39%)] + $64,000 = $136,023
cash flow year 4 = [($189,426 - $64,000) x (1 - 39%)] + $64,000 = $140,510
cash flow year 5 = [($193,214 - $64,000) x (1 - 39%)] + $64,000 + $49,000 + $12,000 = $203,821
The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n): Multiple choice question. increase in assets and an increase in liabilities decrease in assets and a decrease in liabilities decrease in one asset and an increase in another asset increase in assets and an increase in equity
Answer:
decrease in one asset and an increase in another asset increase.
Explanation:
Work-in-process inventories can be defined as a number of partially completed goods which are still in the process of being transformed into finish products that meets the needs of consumers.
Generally, the work-in-process inventories include the following raw materials cost, direct labor cost and factory overhead cost.
These category of products are only partially completed and as such are waiting for further processing, still undergoing fabrication or kept in a buffer storage.
A journal entry involves the process of keeping the records of business transactions made by an organization.
The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
Hence, the journal entry to record the transfer of partially completed work in process to the next process in process costing is a decrease in one asset and an increase in another asset increase.
Golden Generator Supply is approached by Mr. Stephen, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Golden Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:
Direct materials $180
Direct manufacturing labor 170
Variable manufacturing support 250
Fixed manufacturing support 140
Total manufacturing costs 740
Markup (10% of total manufacturing costs) 74
Estimated selling price $814
Required:
If Mr. Stephen wanted a long-term commitment, and not a one-time-only special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same?
Answer:
$814
Explanation:
With regards to the above, if it charges a price below the full cost and markup, it will not be able to sustain such in the long run.
However, when a company received one time only, then they may be willing to charge a lower price in order to cover a portion of their fixed cost when there is extra capacity; whereas in the long run, they will have to charge at full cost so that they will not lose money.
Sheffield Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Sheffield $4 each. Sheffield estimates that 45 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:______.
2020 2021
Bags of dog food sold 480000 620000
Leashes purchased 19000 24000
Coupons redeemed 110000 130000
The premium liability at December 31, 2015 is?
Answer: $108875
Explanation:
First, we calculate the Premium liability at December 31, 2020 which will be:
= (480,000 × 45%) - $110,000/8 × 4
= (216000 - 110000)/8 × 4.
= $53000.
Premium liability at December 31, 2021 will be:
= 53000 + [(620000 × 45%) - $130,000]/8 × 3
= 53000 + 55875
= $108875
4.7 Discuss the role that computers play in modern society.
Answer:
Computer roles in education in modern society
Storage of information.
Quick data processing.
Audio-visual aids in teaching.
Better presentation of information.
Access to the Internet.
Quick communication between students, teachers and parents.
Explanation:
Computers make people's lives easier and more comfortable:
they provide opportunities for staying in touch to billions of people who are in different parts of the world.
People can drive computerized cars and work for employers from other countries without even seeing them.
Isabel has to create a storyboard for the website of a large multi-national company selling multiple products. Which flowchart should Isabel use for her storyboard?
Answer:
Flowchart with hierarchical structure would be the most appropriate.
Explanation:
As a website that promotes sales, it needs to present several pages that open progressively according to the user's activity. It is important that Isabel presents a flowchart that represents this progression, the order and the command that promotes the opening of each page.
In this case, the flowchart must present a hierarchical structure of the pages, where it presents the main page at the top of the hierarchy and the pages following it and all the links between them.
Answer:
in other word i took the post test and it is indeed e
Explanation:
List the main characteristics of money market securities
Answer:
Money market securities are typically debt instruments with a face value of $100,000 or more. These securities include federal and municipal bonds, certificates of deposit from financial institutions, and commercial paper, a kind of unsecured IOU, from large corporations.
Answer: Safety
Liquidity
Types
Discounts
Explanation:
Sunland Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 340 $23 $7,820 April 15 purchase 390 28 10,920 April 23 purchase 270 30 8,100 1,000 $26,840 Compute the April 30 inventory and the April cost of goods sold using the LIFO method. Ending inventory $enter a dollar amount Cost of goods sold $
Answer:
Ending inventory cost= $10,900
COGS= $15,940
Explanation:
To calculate the ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:
Ending inventory in units= 1,000 - 550= 450
Ending inventory cost= 340*23 + 110*28= $10,900
Now, the cost of goods sold:
COGS= 270*30 + 280*28= $15,940
A manufacturer reports the following costs to produce 30,000 units in its first year of operations: Direct materials, $30 per unit, Direct labor, $26 per unit, Variable overhead, $300,000, and Fixed overhead, $450,000. Of the 30,000 units produced, 29,200 were sold, and 800 remain in inventory at year-end. Under variable costing, the value of the inventory is:
Answer:
$53,019
Explanation:
Step 1 : Determine the unit product cost
Unit product cost under variable costing consist of only variable manufacturing costs.
Unit product cost = $30 + $26 + ($300,000 ÷ 29,200)
= $66.27
Step 2 : Calculate value of the inventory
Value of the inventory = Unit product cost x units in inventory
= $66.27 x 800
= $53,019
Under variable costing, the value of the inventory is $53,019.
XYZ stock price and dividend history are as follows: YearBeginning-of-Year PriceDividend Paid at Year-End2015 $130 $5 2016 144 5 2017 120 5 2018 125 5 An investor buys six shares of XYZ at the beginning of 2015, buys another three shares at the beginning of 2016, sells one share at the beginning of 2017, and sells all eight remaining shares at the beginning of 2018.a. What are the arithmetic and geometric average time-weighted rates of return for the investor
Answer:
Arithmetic mean = 3.67%
Geometric mean = 3.02%
Explanation:
The following sorted data are given in the question:
Year Beginning-of-Year Price Dividend Paid at Year-End
2015 $130 $5
2016 144 5
2017 120 5
2018 125 5
Therefore, we have:
Arithmetic average return = Sum of returns/ number of years ………....….. (1)
Geometric average return = n * ((1+r1)*(1+r2)*(1+r3)…(1+rn)^(1/n) - 1 .……….. (2)
Where;
n = years 1, 2, 3….
r1, r2, r3… are the returns for year 1, 2, 3….
Return for each year = ((Current year Beginning-of-Year Price – Previous year Beginning-of-Year Price) + dividend) / Previous year Beginning-of-Year Price .................... (3)
Using equation (3), we have:
2016 Return = ((144 - 130) + 5) /130 = 0.146153846153846
2017 Return = ((120 - 144) + 5) /159 = -0.119496855345912
2018 Return = ((125 - 120) + 5) /120 = 0.0833333333333333
Using equation (1), we have:
Arithmetic mean = (2016 Return + 2017 Return + 2018 Return) / 3 = (0.1461538461538460 - 0.1194968553459120 + 0.0833333333333333) / 3 = 0.0367, or 3.67%.
Using equation (2), we have:
Geometric mean = ((1 + 2016 Return) * (1 + 2017 Return) * (1 + 2018 Return))^(1/3) - 1 = ((1 + 0.146153846153846) * (1 - 0.119496855345912) * (1 + 0.0833333333333333))^(1/3) - 1 = 0.0302, or 3.02%
It is better to ___ than to ___.
A. pay with a credit card; use cash
B. pay down a credit card; save the money
C. save the money, pay off a credit card
D. use cash; save the money
Answer:
It is better to pay down a cred card than to save the money.
Or B
Explanation: I just took the quiz.
It is better to "save the money, pay off a credit card" than to "use cash". The correct option is C.
Why is it important to save money early?The first step toward financial independence is saving money. The sooner children and teenagers begin saving, the more probable it is that it will become a habit. Children and teenagers can benefit from compound interest by saving frequently and early. Finding ways to generate additional money might help kids and teenagers increase their savings.
This is because paying off a credit card debt can help reduce overall debt and save money in the long term by avoiding high-interest charges. On the other hand, using cash may provide a sense of security and control over spending, but it does not necessarily address existing debt or help build credit history.
Thus, the ideal selection is option C.
Learn more about saving money here:
https://brainly.com/question/25192498
#SPJ2
Buyer and seller enter into a contract for buyer to purchase seller's condominium unit using the TREC Residential Condominium Contract with an effective date of January 31. The roof of the complex is partially destroyed by a fire on February 3. Seller notified buyer on February 5 of the fire. What is the latest date buyer can terminate the contract because of the fire
Answer: February 12
Explanation:
Part of the Texas Real Estate Commission(TREC) Residential Agreement calls for the Seller to send a Seller's Disclosure to the buyer. This will tell the buyer the condition of the house.
After the buyer receives the disclosure, they are allowed to terminate the contract within 7 days of the receipt of said disclosure. 7 days from February 5 is February 12 so this is the latest date the buyer can terminate the contract because of the fire.
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $11,000 of cash and land with an FMV of $56,000. Her basis in the land is $21,000. Andrew contributes equipment with an FMV of $13,000 and a building with an FMV of $34,000. His basis in the equipment is $9,000, and his basis in the building is $21,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer: $0
Explanation:
There is no gain to be recognized when assets are being transferred between living individuals or entities due to this falling under the Carryover basis.
This carryover basis of the asset will in general, be the same basis as the cost or basis of the asset.
There will therefore be a $0 gain to the SA General Partnership. Gains will be calculated if the partnership wants to dispose of the assets.
isa Inc. uses the lower-of-cost-or-net-realizable-value (LCNRV) basis for its inventory. The following data are available at December 31 Units Cost/Unit NRV/Unit Cameras Minolta 6 $171 $166 Canon 7 149 159 Light Meters Vivitar 15 121 118 Kodak 11 122 135 What amount should be reported on Lisa's financial statements, assuming the lower-of-cost-or-net-realizable-value rule is applied
Answer:
Lisa Inc.
The amount that should be reported on Lisa's financial statements, assuming the lower-of-cost-or-net-realizable-value rule is applied is:
= $5,151.
Explanation:
a) Data and Calculations:
at December 31
Units Cost/Unit NRV/Unit Total Value
Cameras
Minolta 6 $171 $166 $996 ($166 * 6)
Canon 7 149 159 1,043 ($149 * 7)
Light Meters
Vivitar 15 121 118 1,770 ($118 * 15)
Kodak 11 122 135 1,342 ($122 * 11)
Total value of ending inventory $5,151
b) This implies that the value of the ending inventory is based on the lower of each product's cost or net realizable value. Once each individual product's lower cost is chosen, it is then multiplied by the units in ending inventory to obtain the value for the particular product's ending inventory. Then, the sum of the individual values becomes the value of all the ending inventory for Lisa Inc.
Luke Corporation issued at a premium of $5,000 a $100,000 bond issue convertible into 2,000 shares of common stock (par value $20). At the time of the conversion, the unamortized premium is $3,000, the market value of the bonds is $110,000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds
Answer:
Face Value of Bonds = $100000
Unamortized Premium = $2000
Conversion of Equity Shares = 2000 * $20 = $40,000
Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000
Journal Entries
Account Title & Explanation Debit Credit
Bond Payable Account $100000
Unamortized Premium $2000
Common Stock $40000
Paid in Capital in Excess of par $62000
(To record conversion of Bonds)
The presence of a sales tax means that people pay a tax on most everyday things they buy, such as clothes and groceries. In the United States, 45 states collect state sales tax, and 38 states collect local sales tax. In 2018, the highest combined state and local sales tax was 10.02%, in Louisiana. The sales tax amount varies by location, but everyone purchasing within an area pays the same percentage sales tax.
a. Sales tax:_________.
i. is relatively more expensive to the poor than to the rich.
ii. is a relatively small expense for both the rich and the poor.
iii. is relatively more expensive to the rich than to the poor.
iv. impacts poor and rich families in the same way because everyone pays the same percentage.
b. A sales tax is:_______.
i. regressive
ii. progressive
Answer:
i. is relatively more expensive to the poor than to the rich.
regressive
Explanation:
A sales tax is a tax on the consumption of goods and services levied by the government or an agency of the government.
There are three types of tax systems
1. Regressive tax system is a tax system where those that earn lower income pay more tax and those that earn higher income pay less tax.
2. A proportionate tax taxes everyone the same regardless of the amount earned.
3. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
A sales tax is regressive.
This can be illustrated with an example.
Person A earns $100,000 while person B earns $1000. They both purchased a good and the sales tax paid was $50.
The proportion of sales tax to income for person A = 50 / 100,000 = 0.05%
The proportion of sales tax to income for person B = 50 / 1000 = 5%
It can be seen that the sales tax is relatively more expensive to the poor than to the rich. this is an example of a regressive tax
Brief Exercise 162 a-b On January 1, 2020, Borse Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Answer:
1.
January 1, 2020
Cash $760000 Dr
Discount on Bonds Payable $40000 Dr
Bonds Payable $800000 Cr
2.
January 1, 2020
Cash $840000 Dr
Bonds Payable $800000 Cr
Premium on Bonds Payable $40000 Cr
Explanation:
1.
When the bonds are issued at 95, this means that they are being issued at 95% of their face value and the cash received will be 95% of the face value which will be = 800000 * 0.95 = 760000
This means that the bonds are issued at a discount to face value and the entry will be to record the cash received as debit for 760000 and the bonds payable which is a liability as credit of 800000. The difference is the discount on issuance of bonds and will be debited by,
Discount = 800000 - 760000 => $40000.
2.
When the bonds are issued at 105, this means that they are being issued at 105% of their face value and the cash received will be 105% of the face value which will be = 800000 * 1.05 = 840000
This means that the bonds are issued at a premium to the face value and the entry will be to record the cash received as debit for 840000 and the bonds payable which is a liability as credit of 800000. The difference is the premium on issuance of bonds and will be credited by,
Premium = 840000 - 800000 => $40000.
Money, Inc., a calendar year S corporation in Denton, Texas, has two unrelated shareholders, each owning 50% of the stock. Each shareholder recorded a $400,000 stock basis as of January 1. At the beginning of the tax year, Money reports balances in AAA of $300,000 and AEP of $600,000. During the year, Money generates operating income of $100,000. At the end of the year, Money distributes securities worth $1,000,000, with an adjusted basis of $800,000.
a. At the end of the year, before the distribution, each shareholder's basis is $__________
b. After the distribution, each shareholder's basis is $______ .
c. Each shareholder has $____ of dividend income.
Answer:
See below
Explanation:
a. At the end of the year, before distribution, each shareholder's basis
= $400,000 + $100,000 + $50,000
= $550,000
b. After the distribution, each shareholder's basis is
= $300,000 + $200,000
= $500,000
c. Therefore, each shareholder has
$250,000 worth of dividend income.
Perez Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 202 boats at a total cost of $156,800. The low point in production occurred in January when it produced 32 boats at a total cost of $48,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Perez Boat Company. Determine the total estimated cost if 160 boats are made.
Answer:
Total cost= $129,920
Explanation:
To calculate the variable and fixed costs under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (156,800 - 48,000) / (202 - 32)
Variable cost per unit= $640 per boat
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 156,800 - (640*202)
Fixed costs= $27,520
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 48,000 - (640*32)
Fixed costs= $27,520
Total cost= 27,520 + 640*x
x= number of boats
Now, for 160 boats:
Total cost= 27,520 + 640*160
Total cost= $129,920
Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange
Answer: $446
Explanation:
Antoine will receive the same basis in the stock that was in the property.
The Corporation however, assumed $78 of the liability of the property transferred which would reduce Antoine's basis in that property
Antoine's basis = Property base - Liability assumed by corporation
= 524 - 78
= $446
Deviations from informational efficiency would result in a large cost that will be borne by all participants, namely inefficient resource allocation. Corporations with overpriced securities, for example, would be able to obtain capital too expensively while undervalued companies might forgo investment opportunities because the cost of raising capital would be too low.
a. True
b. False
Answer: False
Explanation:
Deviations from informational efficiency does in fact result in a large cost for all participants however the effects given in the question are false.
If there is a deviation from informational efficiency, overpriced companies would be viewed as performing well enough to get capital at a cheaper rate because they would be viewed as less of a risk.
Undervalued companies would get capital at a higher cost because they would be viewed as less likely to pay back the capital when in fact they are not valued at their proper value which would have shown that they would be able to pay off the capital acquired.
Tony runs a sales and marketing research firm. He is very hands-on and participates in various client meetings. In almost all his conversations, Tony repeats or rephrases what a person has said. Which crucial aspect of good listening skills does Tony demonstrate? A. questioning B. negotiation C. reflecting D. confronting
Answer:
C. Reflecting
Explanation: it is correctomando
What are some possible explanations for why these loans are popular despite the fact that they create a cycle of debt for many borrowers?
The cost of the average consumer’s basket of goods in 2018 was nearly 10 times what it was in 1950. In other words, what the average consumer bought for $100 in 1950 would cost a consumer $1,000 in 2018. Does this mean that the purchasing power of the average consumer is one-tenth what it was in 1950? Explain your reasoning. The perception of an increase in the average cost of a basket of goods, from $100 to $1,000, reflects . To analyze the effect of inflation on purchasing power, we should focus on values. As prices have risen over time, so have incomes, and now, on average, purchasing power is than in
Answer:
The CPI might have increased by ten during the last 68 years, and apparently that is a huge increase. But we also remember that the salaries back then were not the same as today. The purchasing power measures is a relative measure between the nominal prices and the nominal salaries. For example, if back then a chewing gum was worth $0.10 and now it is worth $1, but your salary was $4 per hour, and now it is $50 per hour; your purchasing power actually increased. Before, you could purchase 40 pieces of chewing gum with one hour of labor, and now you can purchase 50 pieces. The same applies to other goods; you have to compare how many goods you could purchase back then and how many goods you can purchase now.
I am a rational and risk-averse person, and I have an option of making the following bet: I receive $500 cash, after which I roll a normal 6-sided die. Whatever I roll, I must pay $200 times the value of the roll of the die (so if make the bet and roll a ‘2’, I get $500, then have to pay out $400, thus I win $100 in total). 10. If my goal is to maximize my personal utility, should I accept this bet, and does my exact level risk aversion affect whether or not I should accept the bet? I should accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does matter There is not enough information to determine whether I should accept the bet or not; the precise level of my risk aversion does matter
Answer:
I should not accept the bet; the precise level of risk aversion does matter.
Explanation:
Risk averse person is the one who is not willing to take the risk even if he is given high returns. Risk averse person will always avoid the risks. In the given scenario the person is risk averse. If he rolls out the dice he has to pay $200 times the dice number which means he just have two chance (dice rolls 1 or dice rolls 2) for getting return otherwise he will loose the bet and he will have to pay money from the pocket.
Lakeisha works as an administrative assistant in the finance department of a commercial construction company. She enjoys writing and public speaking, so she thinks she might enjoy working as a communications manager in the marketing communications department. What is the best choice of interviewee for Lakeisha's career research interview?
Answer:
A manager in the marketing communications department
Explanation:
The marketing communications department manager is the best choice of interviewee for Lakeisha's interview, as this professional can provide you with information relevant to your job duties so that Lakeisha can better assess your career research.
As she is a person who has communication skills in public, being a marketing communications manager can be a good option for Lakeisha, since this position has as main duties to develop marketing communication strategies in order to promote the company and its employees. products and services in the market, generate value to the target audience through marketing campaigns and position the company in a competitive way in the market.
You run a hospital with 100 rooms. Fixed daily cost is $2000 which includes staff salary, property charges, maintenance etc. Variable cost per room is $10 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $50 per room per day. You sold 30 rooms today, how much profit/loss did you earn.
Answer:
lost $800
profit per room is 50-10= 40 per full room. 30 rooms at 40 each is $1200. fixed cost is $2000, $800 more than the days revenue
Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $144 Variable Sales and Administration Expenses $5 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.
Answer:
Appliance Apps
Income statement under the absorption method.
Sales $2,880,000
Less Cost of Sales
Beginning Inventory 0
Add Cost of Goods Manufactured $1,927,500
Less Ending Inventory ($385,500) ($1,542,000)
Gross Profit $1,338,800
Less Expenses
Variable Sales and Administration Expenses $100,000
Fixed Sales and Administration Expenses $975,000 ($1,075,000)
Net Income $263,000
Explanation:
Units in Ending Inventory
Beginning Inventory 0
Add Units Produced 25,000
Available for Sale 25,000
Less Units Sold 20,000
Ending Inventory 5,000
Absorption Cost calculations
Product Cost = $77.10
Cost of Goods Manufactured = $1,927,500
Ending Inventory = $385,500
Different compounding periods, are used for different types of investments. In order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. In order to do this, you need to understand the difference between the nominal interest rate (INOM) and the effective annual rate (EAR). The ____________ interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (APR). If the compounding periods for different securities is the same, then you -Select- use the APR for comparison. If the securities have different compounding periods, then the __________ must be used for comparison.Here, M is the number of compounding periods per year and INOM/M is equal to the periodic rate (IPER). If a loan or investment uses ____________ compounding, then the nominal interest rate is also its effective annual rate. However, if compounding occurs more than once a year, EAR is _____________ INOM.
Answer:
Nominal
EAR
annual
higher than
Explanation:
The Nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (APR).
If the securities have different compounding periods, then the EAR must be used for comparison.
If a loan or investment uses annual compounding, then the nominal interest rate is also its effective annual rate.
However, if compounding occurs more than once a year, EAR is higher than INOM.