Answer:
$13,070
Explanation:
The Cost of inventory according to IAS 2 include all cost of purchase, cost of conversion and other cost incurred in bringing the inventory to their present location and condition.
Calculation of Inventory Cost
Cost of Purchase $12,000
Transportation-in $100
Shipping insurance $170
Car import duties $800
Total Cost $13,070
Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority
Answer:
Chain of command.
Explanation:
Chain of command is been used in the description of operation flow pattern in companies, government, universities and in many organisations which aid in a better reporting relationship. This report is said to set records straight and also puts every individual in a category in this chart organization. Also a chain of command is established so that everyone knows whom they should report to and what responsibilities are expected at their level. A chain of command enforces responsibility and accountability.
Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 50,000 Net operating income $ 70,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
1. Company wide break-even point in dollar sales= $425,000
2. Break-even point in dollar sales for North region= $200,000
3. Break-even point in dollar sales for South region = $100,000
Explanation:
1. Computation of the companywide break-even point in dollar sales
First step is to find the Contribution margin ratio
Using this formula
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio:
Total company: ($240,000/$600,000)=0.4
North : ($120,000/$400,000)=0.4
South : ($120,000/$200,000)=0.6
Now let compute the Company wide break-even point in dollar sales using this formula
Company wide break-even point in dollar sales= Fixed costs / Contribution margin ratio
Let plug in the formula
Company wide break-even point in dollar sales= ($120,000 + $50,000) / 0.4
Company wide break-even point in dollar sales= $425,000
2. Computation for the break-even point in dollar sales for the North region using this formula
Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for North region= $60,000 / 0.3
Break-even point in dollar sales for North region= $200,000
3. . Computation for the break-even point in dollar sales for the South region.
Using this formula
Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for South region = $60,000 / 0.6
Break-even point in dollar sales for South region = $100,000
Jen Rogers withdrew a total of $15,000 from her business during the current year. The entry needed to close the withdrawals account is:_________
A. Debit Income Summary and credit Cash for $31,000.
B. Debit Jen Rogers, Withdrawals and credit Cash for $31,000 Debit Income Summary and credit Jen Rogers, Withdrawals for $31,000.
C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $31,000.
D. Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $31,000.
Answer: C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $15,000
Explanation:
The options do not match the question. Correct answer is posted.
When closing the Withdrawal account at the end of the period, the withdrawals need to be accounted for from the capital invested by the investor because the withdrawals would reduce the capital balance.
To do this the Capital account should be debited to signify that it is reducing. The opposing entry therefore will be to credit the Withdrawals account.
he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,900 10,900 12,900 13,900 Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Answer:
1. Total estimated direct labor cost = $148,800
2. Total estimated manufacturing overhead cost = $410,880
3. Total Cash disbursement for the fiscal year = $254,880
Explanation:
Please see attached detailed explanation of the above questions and answers.
During 2021, WMC Corporation discovered that its ending inventories reported in its financial statements were misstated by the following material amounts: 2019 understated by $ 124,000 2020 overstated by 154,000 WMC uses a periodic inventory system and the FIFO cost method. Required: 1. Determine the effect of these errors on retained earnings at January 1, 2021, before any adjustments. (Ignore income taxes.) 2. Prepare a journal entry to correct the errors.
Answer:
WMC Corporation
Misstatement of Ending Inventories:
1. Effect of these errors on Retained Earnings at January 1, 2021:
a) The understated amount by $124,000 in 2019 has self-corrected in 2020 with the Beginning Inventory also understated. So, it has no effect on the Retained Earnings at January 1, 2021.
b) The overstated ending inventories by $154,000 will overstate the Retained Earnings at January 1, 2021 by the same amount. Since it has not self-corrected like (a), the correction will be to reduce the Retained Earnings and reduce the Beginning Inventories by $154,000.
2. Journal Entry:
Debit Retained Earnings $154,000
Credit Beginning Inventories $154,000
To reverse the overstated inventories.
Explanation:
a) Data:
2019 understated by $ 124,000
2020 overstated by 154,000
Inventory system = periodic
Inventory method = FIFO
g Question 3 (ASC Required - 20 points): After graduation, you work for a few years at a major accounting firm and advance to Senior. However, as part of this role, you start working on a client that is different from your other background: specifically, a major bank located in San Francisco. This bank primarily takes deposits from retail and business customers and lends money out to others. The accounting seems to be completely different from what you are used to and so you go to the Codification to find out what the accounting standards for this industry consist of. Describe the major classes of transactions undertaken by this sort of entity and how they should be accounted for.
Answer with Explanation:
The major transactions that a bank will be involved in are listed below:
Deposits of accounts holders: These deposits are basically the liability of the bank which it will pay them back in near future. Hence it must be recorded as a Current or Non-current liability depending upon the type of account and agreement between the parties to contract. Money lendings to borrowers: This money must be accounted for as a current or non-current asset depending upon the type of account and agreement made.Interest on the money lendings: It is interest income and must be accounted for as revenue.ATM and other Transaction processing charges: These fee charges are also part of income and thus must be accounted for as income.Park competes with World by providing a variety of rides. sells tickets at $110 per person as a one-day entrance fee. Variable costs are $44 per person, and fixed costs $412,500 are per month. Under these conditions, the breakeven point in tickets is 6,250 and the breakeven point in sales dollars is $687,500.
Requirement
1. Suppose Park cuts its ticket price from to to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets must sell to break even under this scenario
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable costs are $44 per person
Fixed costs $412,500
Let's suppose that the new selling price is $100.
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 412,500 / (100 - 44)
Break-even point in units= 7,366 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 412,500 / (56/100)
Break-even point (dollars)= $736,607
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting. A. True B. False
Answer:
A. True
Explanation:
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting.
Discounting is the opposite of Compounding because discounting measures what the value of future cash flow is worth in the present while compounding takes the present value into the future. Discounting generally points to a method of knowing the present value of cash flow. Discounting is an important tool due to how a business could know the present value of what the business spends and gains by comparing it to the future value of what is to be received.
The cash flow that is received or paid in the future is less than the present value of the cash flow and that depicts the time value of money.
None of the following would be an advantage of self-administered surveys:
A) Reduced cost
B) Respondent control
C) Reduced interview evaluation apprehension
A. True
B. False
Answer:
B. False
Explanation:
A self-administered survey is one where there is the collection of the necessary data for the survey is carried out through a questionnaire of questions to be answered by the interviewee. Questionnaires can be sent via mail, e-mail, personal interception, hand delivery etc.
The advantages of self-administered surveys are cost reduction, since questionnaires can be sent via email at no cost to both, greater control of the interviewee, since the questions can be developed according to the information you want to collect, greater quick feedback, which reduces the apprehension of the interview evaluation.
False, the self-administered surveys would not be advantageous in terms of reduced interview evaluation apprehension. The Option B.
Would self-administered surveys be advantageous?Self-administered surveys eliminate the need for face-to-face interactions and direct interviewer involvement which can indeed reduce interview evaluation apprehension. When individuals complete surveys on their own, they may feel less pressured and more comfortable expressing their opinions.
But this advantage does not hold true for self-administered surveys as they are completed by the respondents themselves without the presence of an interviewer. Consequently, the absence of an interviewer does not contribute to a reduction in interview evaluation apprehension. Therefore, the Option B is correct.
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Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.21%. If Janet sold the bond today for $993.14, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
20.10%
Explanation:
The first task is to compute the bond's purchase price last year which is found using the bond price formula below:
bond price=face value/(1+r)^n+ annual coupon*(1-(1+r)^-n/r
face value=$1000
r=yield to maturity=12.21%
n=number of annual coupons in 15 years=15
annual coupon=face value*coupon rate=$1000*11%=$110
bond price=1000/(1+12.21%)^15+110*(1-(1+12.21%)^-15/12.21%
bond price=1000/(1+12.21%)^15+110*(1-0.177634192 )/12.21%
bond price=$918.50
Rate of return=(price today-initial price+coupon received)/initial price
price today= $993.14
initial price=$918.50
coupon received(for 1 year)=$110
Rate of return=($993.14-$918.50+$110)/$918.50=20.10%
Goal-Setting, Expectancy, Reinforcement, and Equity Theory
Goal-Setting, Expectancy, Reinforcement, and Equity Theories all serve Theory Y managers in understanding how employees can be motivated at work. Employees seek interesting and challenging work in a fair work environment that allows for autonomy. There should be a system to engage everyone in the organization in goal setting and implementation as well as an expectation that effort expended will result in a positive outcome and be balanced from one employee to another (given the same work). Managers can also find success in fairness and a reward system that all employees value.
Goal-setting theory is based on the premise that employees are motivated when they are clear about the goals they are working toward. More importantly, they are more likely to engage to attain these goals if they collaborate with management in planning. Management by Objectives (MBO) is the process of discussion, review, and evaluation of goals between a manager and employee. Expectancy theory is based on the premise that the amount of effort employees exert on a specific task depends on their expectations of the outcome. Reinforcement theory states that individuals act to receive rewards and avoid punishment. A manager may attempt to surface good behaviors through rewards and extinguish poor behaviors through punishment. Equity theory zeros in on how employees' perceptions of fairness affect their willingness to perform.
Roll over each employee name to read a scenario. Match the scenario with the respective theory on the left by dragging the employee name to the corresponding theory.
1. Nathaniel has been late so much this month that he was not put on the project he requested to lead.
2. Robert does not want to go into work on his day off because he does not really need the overtime pay and that is the only benefit his boss offered.
3. Angela will be offered the role of team leader if she prepares a year-end profit and loss statement in Excel for the department, but she has not been trained to use Excel.
4. Rebecca's manager gave her a gift card to her favorite restaurant for having the highest value of sales in her department last month.
5. Gwen was glad she could sit down with her boss and plan the best schedule to accomplish her goals and objectives for the first quarter of the year.
6. Ruth found of that Liz is getting paid more per hour for doing the same job! Ruth has been with the company longer and her output is higher.
7. Jason is meeting with his manager to review the list of goals they spelled out last month to see what he has accomplished so far.
8. Daniel gave up his day off to help is boss hoping he would be appointed team leader, but the position was awarded to a co-worker who never helps out on the weekends!
A. Goal-setting
B. Expectancy
C. Reinforcement
D. Equity
Answer:
Goal-Setting, Expectancy, Reinforcement, and Equity Theories
Matching the scenario with respective theories:
A. Goal-setting : Gwen, Jason
B. Expectancy : Robert, Daniel
C. Reinforcement : Angela, Rebecca
D. Equity : Nathaniel, Ruth
Explanation:
Below are summaries of the different theories that can "serve Theory Y managers in understanding how employees can be motivated at work:"
A. Goal-setting Theory = setting clear goals
B. Expectancy Theory = acting based on the expected outcome
C. Reinforcement Theory = acting based on rewards and punishment
D. Equity Theory = willing to perform is based on perceived fairness
Match the scenario:
Part A. Goal-setting: Gwen, Jason
Part B. Expectancy: Robert, Daniel
Part C. Reinforcement: Angela, Rebecca
Part D. Equity: Nathaniel, Ruth
What is Equity?
In finance, equity is the right of assets that may have debts or other liabilities connected to them. Equity is estimated for accounting purposes by subtracting liabilities from the importance of the assets.
Descending are summaries of the different approaches that can "serve Theory Y managers in understanding how employees can be motivated at work:"
When the Goal-Setting, Expectancy, Reinforcement, and also Equity Theories
When the Matching the scenario with respective theories are:
Part A. Goal-setting Theory is = setting clear goals
Part B. Expectancy Theory is = acting based on the expected outcome
Part C. Reinforcement Theory is = acting based on rewards and punishment
Part D. Equity Theory is = willing to perform is based on perceived fairness
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Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________.
Answer:
Results are below.
Explanation:
First, we need to calculate the currently employed people and the unemployment rate:
Employed people= 100,000,000 - 6,000,000= 94,000,000
Unemployment rate= unemployed people / labor force
Unemployment rate= 6,000,000 / 100,000,000
Unemployment rate= 0.06= 6%
Now, the newly employed people and the unemployment rate:
Employed people= 94,000,000 + 300,000 - 200,000
Employed people= 94,100,000
Unemployment rate= 5,900,000 / 100,000,000
Unemployment rate= 0.059 = 5.9%
Which of the following is correct? Group of answer choices Risk-averse people will not hold stock. Diversification cannot reduce firm-specific risk. The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return. Stock prices are determined by fundamental analysis rather than by supply and demand.
Answer: The larger the percentage of stock in a portfolio, the greater the risk, but the greater the average return.
Explanation:
Stock in general is more risky than most financial instruments but this risk is accompanied with greater returns. This is why it is generally advisable to diversify stock in a portfolio.
As already mentioned, stock is risky but rewarding. It therefore follows that the more stock is in a portfolio, the risker the portfolio but the greater the average return.
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 44,000,000 Operating expenses: Variable expenses $ 28,600,000 Fixed expenses 7,700,000 Total expenses 36,300,000 Operating profit $ 7,700,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $9,152,500. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 9%
Answer:
Please see attached
Explanation:
• Break even point in sales dollars $22,000,000
• Required sales in dollars $48,150,000
• Break even point in sales dollars $34,010,600
See as attached, detailed solution to the questions above.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $44,000,000
Variable expenses $ 28,600,000
Fixed expenses 7,700,000
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 28,600,000)/44,000,000]
Break-even point (dollars)= $22,000,000
Now, we incorporate the desired profit of $9,152,500
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (7,700,000 + 9,152,500) /0.35
Break-even point (dollars)= $48,150,000
Finally, the new break-even point in dollars:
Total variable cost= 28,600,000*1.09= 31,174,000
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 31,174,000) / 44,000,000]
Break-even point (dollars)= 7,700,000 / 0.2915
Break-even point (dollars)= $26,415,094.34
The following transactions occurred at the Daisy King Ice Cream Company.
1. Started business by issuing 10,000 shares of capital stock for $23,000.
2. Signed a franchise agreement to pay royalties of 5% of sales.
3. Leased a building for three years at $530 per month and paid six months' rent in advance.
4. Purchased equipment for $5,700, paying $2,000 down and signing a two-year, 10% note for the balance.
5. Purchased $2,100 of supplies on account.
6. Recorded cash sales of $1,100 for the first week.
7. Paid weekly salaries and wages, $470.
8. Paid for supplies purchased in item (5).
9. Paid royalties due on first week's sales.
10. Recorded depreciation on equipment, $70.
Required:
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal Entries Needed as followed:
1. Started business by issuing 10,000 shares if capitol stock for $23,000
2. Signed a franchise agreement to pay royalties of 5% of sales
3. Leased a building for 3yrs st $530 per month and paid 6 months rent in advance
4. Purchased equipment for $5700, paying $2000 down and signing a 2yr 10% note for the balance.
5. Purchased $2100 of supplies on account
6. Recorded cash sales of $1100 for the 1st week
7. Paid weekly salareies and wages $4700
8. Paid for suplies purchased in item (5)
9. Paid royalites due on 1st weeks sales
10. Recorded depreciation on equipment $70
Answer:
Daisy King Ice Cream Company
General Journal
1. Debit Cash Account $23,000
Credit Capital Stock $23,000
To record the issue of 10,000 shares for cash.
2. No journal entry required.
3. Debit Prepaid Rent $3,180
Credit Cash Account $3,180
To record the payment in advance of six months' rent.
4. Debit Equipment $5,700
Credit Cash $2,000
Credit Notes Payable $3,700
To record the purchase of equipment for cash and 10% two-year notes.
5. Debit Supplies $2,100
Credit Accounts Payable $2,1000
To record the purchase of supplies on account.
6. Debit Cash Account $1,100
Credit Sales Revenue $1,100
To record the sale of goods for cash.
Debit Royalties Expense $55
Credit Royalties Payable $55
To record 5% royalties payable on sales.
7. Debit Salaries and Wages Expense $470
Credit Cash Account $470
To record the payment of weekly salaries and wages.
8. Debit Accounts Payable $2,100
Credit Cash Account $2,100
To record the payment for supplies purchase on account.
9. Debit Royalties Payable $55
Credit Cash Account $55
To record the payment of royalties due.
10. Debit Depreciation Expense $70
Credit Accumulated Depreciation $70
To record the depreciation expense for the period.
Explanation:
For Daisy King Ice Cream Company, the recording of business transactions in the journal is the first step of maintaining the double-entry system of book-keeping. In it, the accounts to be debited and credited are identified and recorded for onward posting to the general ledger.
What type of buffer(s) (inventory, time, or capacity) would you expect to find in the following situations? a) A maker of custom cabinets b) A producer of automotive spare parts c) A hospital emergency room d) Wal-Mart e) Amazon f) A government contractor that builds submarines g) A bulk producer of various chemicals h) A maker of lawn mowers for K-mart and Target i) A freeway j) The space shuttle k) A business school
Answer:
a) A maker of custom cabinets ⇒ TIME, generally goods that are custom made take longer to produce and clients are aware of this.
b) A producer of automotive spare parts ⇒ CAPACITY, if more parts are needed, you will have to use spare capacity.
c) A hospital emergency room ⇒ CAPACITY, services cannot be stocked, therefore, the only possible buffer is capacity since they cannot make their patients wait in line (a dead person waiting in line is no longer a patient).
d) Wal-Mart ⇒ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.
e) Amazon ⇒ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.
f) A government contractor that builds submarines ⇒ TIME, submarines are very expensive and it takes years to build them, so a week more wouldn't make a difference.
h) A maker of lawn mowers for K-mart and Target ⇒ INVENTORY, the company probably knows when it is going to sell more, so it can add to its inventory of finished goods just in case.
i) A freeway ⇒ CAPACITY and then TIME, services cannot be stocked, and since it takes years to plan and build a highway or freeway, the only possible initial buffer is capacity. But once full capacity is reached, then the only buffer is time.
j) The space shuttle ⇒ INVENTORY, since you cannot go back to Earth just to get refueled, you must carry extra fuel just in case. The same for the rest of the stuff.
k) A business school ⇒ CAPACITY, services cannot be stocked, and no student will wait a few extra years just to get into the school that they love.
$50 an hour is a
A salary
B commission
C wage
D pension
Answer: C.) Wage
Explanation: A salary is a set cost that is due to you over an agreed amount of time. A commission is a percentage that you get from the original cost. A wage is the income one makes daily, or per hour. A pension is the gradual amount of money being added up during the years one works. Therefore, $50 an hour is a wage.
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A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased to 9.7 percent
Answer:
$320.59 decrease
Explanation:
The computation of the change in the value is shown below:
As we know that
The Value of perpetuity is
= Annual inflows ÷ interest rate
Current value is
= $170 ÷ 0.082
= $2,073.17
And,
New value is
= $170 ÷ 0.097
= $1,752.58
Now change in value is
= $2,073.17 - $1,752.58
= $320.59 decrease
We simply applied the above formula
Assume Brad has a choice between two deposit accounts. Account WH has an annual percentage rate of 7.35% with interest compounded continuously. Account MW has an annual percentage rate of 7.45% with interest compounded monthly. Which account provides the highest effective annual return?
Answer: Account MW which compounds monthly provides a higher effective rate at 7.71%
Explanation:
Use the Effective Interest rate formula to see which offers the higher return.
Account WH;
Compounded continuously;
= e^(interest rate) - 1
= e^7.35% - 1
= 7.63%
Account MW
Compounded per month
= (( 1 + interest / compounding period) ^ period) - 1
= (( 1 + 7.45%/12) ^ 12) -1
= 7.71%
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $4.71 billion. The country collected $4.83 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Answer: $0.12 billion
Explanation:
Based on the information given in the question:
Total spending for Lilliput last fiscal year = $4.71 billion
Tax collected(Revenue)= $4.83 billion
Government transfers = $0
Lilliput's budget balance based on the information provided will be:
= (Taxes - Government transfers) - Government expenditures
= ($4.83 billion - $0) - $4.71 billion
= $0.12 billion
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
Linden, Inc. uses a 5,700 square foot factory space that it rents for $2,800 a month for all its manufacturing activities. Linden has decided to switch to an activity-based costing system, and has identified its activities as follows: Preparation and Setup, Machining, Finishing, and Quality Control. 2,600 square feet of the factory are used for machining, while 1,300 square feet (each) are used for Preparation and Setup and Quality Control. Finishing uses 500 square feet. When assigning indirect costs to each activity, how much factory rent should be assigned to the Preparation and Setup cost pool
Answer:
$639
Explanation:
Rent assigned to preparation and setup = Total rent / Total space * Space used by preparation and setup
= $2,800 / 5,700 * 1,300
= 638.5965
= $639
Therefore, the factory rent that would be assigned to Preparation and Setup cost pool is $639.
Corentine Co. had $154,000 of accounts payable on September 30 and $133,500 on October 31. Total purchases on account during October were $283,000. Determine how much cash was paid on accounts payable during October. On September 30, Valerian Co. had a $103,500 balance in Accounts Receivable. During October, the company collected $103,890 from its credit customers. The October 31 balance in Accounts Receivable was $91,000. Determine the amount of sales on account that occurred in October. During October, Alameda Company had $104,500 of cash receipts and $105,150 of cash disbursements. The October 31 Cash balance was $19,600. Determine how much cash the company had at the close of business on September 30.
Answer:
Explanation:
a. Accounts Payable
Payments on account $303,500 | Beginning balance $154,000
| Purchases on account $283,000
|
| Ending balance $133500
b. Accounts Receivable
Beginning balance $103,500 | Cash receipts on account $103,890
Sales on account $91,390 |
|
Ending balance $91,000 |
c. Cash
Cash receipts $104,500 | Cash disbursements $105,150
Beginning balance $20,250 |
|
Ending balance $19,600 |
what is acknowledgement
Answer: it means to accept something or recognition
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 117 Units in beginning inventory 0 Units produced 2,900 Units sold 2,500 Units in ending inventory 400 Variable costs per unit: Direct materials $ 32 Direct labor $ 45 Variable manufacturing overhead $ 2 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $43,500 Fixed selling and administrative expense $15,000 The total gross margin for the month under absorption costing is:
Answer:
The correct answer is "57,500 ".
Explanation:
Unit product cost
= [tex]32 + 45 + 2 + \frac{43500}{2900}[/tex]
= [tex]94[/tex]
Gross margin = Sales - Cost of Goods Sold
= [tex](2500\times 117) - (2500\times 94)[/tex]
= [tex]292,500-235,000[/tex]
= [tex]57,500[/tex]
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,000 and an adjusted basis of $45,000. In addition, the equipment is subject to a $10,000 loan that KS Partnership is assuming. What amount represents Kline's initial basis in the partnership
Answer: $40,000
Explanation:
Kline brings in equipment that is worth $60,000 but has a basis of $45,000.
The equipment however is subject to a loan of $10,000.
This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.
Basis = 45,000 - 5,000
= $40,000
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $470,000. Shipping costs totaled $14,100. Foundation work to house the centrifuge cost $7,700. An additional water line had to be run to the equipment at a cost of $2,600. Labor and testing costs totaled $7,000. Materials used up in testing cost $3,700. (Leave no cells blank. Enter 0 where needed.) a. What is the total cost of the equipment
Answer:Total Cost of equipment=$502,500
Explanation:
Total Cost of equipment= This is gotten by addition of Cost of Purchase +Shipping costs +Foundation work+ Testing expense
=$470,000+$14,100+$7,700+($7,000+$3,700.)
=$502,500
Ramon had AGI of $165,000 in 2020. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability.
Answer:
the situations are missing, so I looked for similar questions:
a. A cash gift of $68,500.
In the current year, Ramon may deduct $68,500 since his charitable contribution is limited to $165,000.
b. A gift of OakCo stock worth $68,500 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $61,650.
The stock's value for determining the contribution is $68,500 (fair market value). The deduction for 2020 is $49,500 (30% of AGI). The remaining $19,000 for years.
c. A gift of a painting worth $68,500 that Ramon purchased three years ago for $61,650. The charity has indicated that it would sell the painting to generate cash to fund medical research.
The contribution is valued at $61,650 (the charity will sell the painting immediately). The amount deductible in the current year is $61,650.
Explanation:
The charitable contribution limit was increased to 100% of AGI for 2020 by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
Roose, Inc. reported revenue of $92 million and incurred total expenses of $84 million. The total expenses included cost of goods sold of $50 million, salaries and other administrative expenses of $9 million, $11 million of interest paid on a building's mortgage, and $14 million of depreciation. Assuming Roose is subject to the interest expense limitation, what amount of interest expense can the business deduct in the current year
Answer:
Roose, Inc.
The business can deduct $9.5 million in the current year.
Explanation:
Revenue = $92 million
Expenses allowed = 73 million ( $84 - $11 million for interest expense)
Adjusted taxable income before interest = $19 million
50% of adjusted taxable income = $9.5 million
Disallowed interest expense in the current year = $1.5 million
The interest expense allowed (deductible) is 50% for 2019 and 2020, as amended by the CARES Act) of the taxpayer's adjusted taxable income.
Which scenario holds true when a tariff is applied to an imported item? A. both domestic and foreign consumers pay the same price B. domestic consumers of the imported item pay a higher price C. foreign consumers of the imported item pay a higher price D domestic consumers of the imported itern pay a lower price
Answer:
i would say b, the domestic pay more.