Answer:
Part a
Direct Materials Schedule
Beginning Materials $ 8,000
Add Purchases $83,000
Less Ending Materials ($ 7,000)
Less Indirect materials ($4,000)
Direct Materials Used in Production $80,000
Part b
Overheads Incurred during the year
$
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Total Overheads $28,000
Part c
Cost of Goods Manufactured Schedule
Direct Materials $80,000
Direct labor $42,000
Overheads $28,000
Add Opening Work In Process $15,000
Less Closing Work In Process ($13,000)
Cost of Goods Manufactured $152,000
Part d
Cost of Goods Sold
Beginning Finished goods Inventory $16,000
Add Cost of Goods Manufactured $152,000
Less Ending Finished Goods Inventory ($12,000)
Cost of Goods Sold $156,000
Explanation:
The following steps must be done to reach the cost of goods sold :
Use the Manufacturing Cost Schedule to calculate the Cost of Goods ManufacturedUse the Finished Goods Inventory Account to calculate the Cost of Goods Sold.See the calculations and schedules prepared above.
James Dodgsen is a student in a graduate course in business. The professor in the course has given Dodgsen and his classmates a surprise quiz in class. Dodgsen did not do the reading for class that day because he had been grading papers as part of his TA position. He has been prepared for every other class that semester. As he glances as the quiz questions, he realizes that he does not know any of the answers. However, he sees that Jane Frampton, the student who sits next to him, is well prepared and answering the questions with great ease. He can see her answers because of her large, block-style printing. Dodgsen copies her answers.
a. Dodgsen is justified in using the answers because the pop quiz was unfair.
b. Dodgsen is justified in using the answers because he was fulfilling his TA responsibilities instead of preparing for class.
c. Dodgsen is justified in using the answers if he intends to read the material eventually.
d. Dodgsen has been dishonest.
Answer:
d. Dodgsen has been dishonest.
Explanation:
Looking at the scenario in the question above, it is possible to say that James Dodgsen was dishonest in copying Jane's responses.
This question leads us to the conclusion that Dodgen's schedule lacked organization. As much as he was prepared for the other classes and having just coincided with a surprise test when he couldn't find time to study the content of that class specifically, there is a problem looking at his classmate's answers when the test given by the teacher was individual guidance.
The organization of the agenda is essential for a student of business administration, since the corporate environment consists of the functions of organizing, commanding, coordinating and controlling, therefore there must be established times for each task of daily fulfillment, whether in a personal or professional environment. , so that there is a greater possibility of fulfilling the essential tasks and the established objectives are properly achieved
a worker produced four components during an 8-hour shift in which he earned $96. What is his labor cost per unit?
Answer:
$24
Explanation:
Labor cost per unit is the ratio of total labor expense for a period of time divided by the total number of units produced during that period of time. It is given by the formula:
Labor cost per unit = Total money earned during a specified period / number of components produced.
Hence using the formula above, the labor cost per unit of the worker is gotten to be:
Labor cost per unit = $96 / 4 components = $24
Two carmakers have developed a strange but successful partnership. Ford, a U.S. automaker,and Mazda, an Asian carmaker, have collaborated on several models, including the Explorer, the Probe, the Mazda 323, and the Mazda MX-6. The U.S. automaker has supplied Mazda with help in marketing, finance, and styling. In return, Mazda has provided manufacturing and product development expertise to Ford. Both companies have worked together toward a common goal and both have benefited as a result of theirA. strategic alliance.B. international contract.C. free trade agreement.D. collaborative treaty.E. global oligopoly.
Answer:
A. strategic alliance
Explanation:
A strategic alliance refers to an agreement that is made between the two companies to work for accomplishing a common objective also in this the independence is there for working. It is less difficult and less binding as compared with the joint venture
Therefore in the given situation, it represents upon the strategic alliance and the same is to be considered
hence, the correct option is A.
Pooling has been used for a long time by businesses as a way to reduce risk. Imagine that years ago a small paint factory employed 200 people, each with an annual salary of $600/year. The factory owner knew from experience that 4 percent of workers were being injured each year, becoming unable to work. The factory owner decided to set up a fund to pay injured workers three months of salary to help their families and build good will with employees. The owner did not contribute to the injury fund. The workers themselves contributed a fixed amount each year to fund the plan. Answer the following questions (1 point each):_____.
1. How much did the owner need to collect from employees in total to fully fund the plan each year?
2. How much did each employee have to contribute each year to fully fund the plan?
3. What percentage of salary did each employee contribute to have an injury fund like this?
Answer:
1. Amount required to fund the plan = % of injured*Total employees* Annual salary
Amount required to fund the plan = 4%*200 people* $600
Amount required to fund the plan = $4800
2. Amount contributed by each employee = Amount required to fund the plan / Number of employees
Amount contributed by each employee = $4800/200
Amount contributed by each employee = $24
3. Percentage of salary = Amount contributed by each employee / Salary
Percentage of salary = 24/600
Percentage of salary = 0.04
Percentage of salary = 4%
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and cannies. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, you know that complements are typically consumed together while substitutes can take the place of other goods.
Run-of-the-Mills provides your marketing firm with the following data: When the price of splishy splashies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of cannies sold decreases by 5%. Your job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods your marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and flopsicles, and then between splishy splashies and kipples. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating which good you should recommend marketing with splishy splashies.
Relative to Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute Recommend Marketing with Splishy Splashies
Flopsicles
Kipples
Answer:
cross-price elasticity formula = % change in quantity demanded of good X / % change in price of good Y
cross-price elasticity of demand between splishy splashies and frizzles (or is it flopsicles?) = 4% / -5% = -0.8, complement goods. When the cross price elasticity is negative, then the goods complement each other.
cross-price elasticity of demand between splishy splashies and cannies (or is it kippies?) = -5% / -5% = 1, substitute goods. When the cross price elasticity is positive, then the goods substitute each other.
If you are about to launch a marketing campaign for splishy splashies, then you should include frizzles in it.
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:
1 Sales $8,800,000.00
2 Manufacturing costs:
3 Direct materials $3,360,000.00
4 Direct labor 1,344,000.00
5 Variable manufacturing cost 816,000.00
6 Fixed manufacturing cost 528,000.00 6,048,000.00 7
Selling and administrative expenses:
8 Variable $528,000.00
9 Fixed 352,000.00 880,000.00
Required:
a. Prepare an income statement based on the absorption costing concept.
b. Prepare an income statement based on the variable costing concept.
c. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
Answer:
Part a.
Income statement based on the absorption costing concept.
Sales $8,800,000.00
Less Cost of Sales
Beginning Inventory $0
Add Manufacturing Cost $6,048,000.00
Less Ending Inventory ($504,000.00) ($5,544,000.00)
Gross Profit $3,256,000.00
Less Expenses :
Selling and administrative expenses:
Variable $528,000.00
Fixed $352,000.00 ($880,000.00)
Net Income/(loss) $2,376,000.00
Part b.
Income statement based on the variable costing concept.
Sales $8,800,000.00
Less Cost of Sales
Beginning Inventory $0
Add Manufacturing Cost $5,520,000.00
Less Ending Inventory ($460,000.00) ($5,060,000.00)
Contribution $3,740,000.00
Less Expenses :
Fixed manufacturing cost $528,000.00
Selling and administrative expenses:
Variable $528,000.00
Fixed $352,000.00 ($1,408,000.00)
Net Income/(loss) $2,332,000.00
Part c.
Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.
Explanation:
Units in Ending Inventory Calculation :
Production 48,000
Less Sales (44,000)
Ending Inventory 4,000
Absorption Costing Calcs
Variable Manufacturing Costs
Direct materials $3,360,000.00
Direct labor $1,344,000.00
Variable manufacturing cost $816,000.00
Fixed manufacturing cost $528,000.00
Total $6,048,000.00
Ending Inventory = $6,048,000.00 × 4,000 / 48,000
= $504,000
Variable Costing Calcs
Variable Manufacturing Costs
Direct materials $3,360,000.00
Direct labor $1,344,000.00
Variable manufacturing cost $816,000.00
Total $5,520,000.00
Ending Inventory = $5,520,000.00 × 4,000 / 48,000
= $460,000
Deferred tax liability $ 355,000 $ 463,000 The income statement reported tax expense for Year 2 in the amount of $580,000. Required: 1. What was the amount of income taxes payable for Year 2
Answer: $472,000
Explanation:
Deferred Tax Liability arises as a result of the different accounting methods used by Companies and by the Government for taxation.
Deferred tax liabilities are taxes that are owed to the Government due to the company using the Accrual system but as the Government uses the Cash basis, they have not yet recognised this tax.
The Tax Payable in Year 2 is;
= Reported Tax Expense - increase in Deferred Tax liability
= 580,000 - (463,000 - 355,000)
= $472,000
Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $24,500 of materials on account. Issued $1,450 of supplies from the materials inventory. Purchased $25,900 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $30,900 in direct materials to the production department. Incurred direct labor costs of $29,500, which were credited to Wages Payable. Paid $22,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Applied overhead on the basis of 120 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $5,900.
The following balances appeared in the accounts of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Required:
a. Prepare journal entries to record the transactions. (If o entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transactions General Journal Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Work in Progress Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Manufacturing Overhead Control
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Applied Manufacturing Overhead
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accounts Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Cash
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Wages Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Finished Goods Inventory
Beg. bal. ___________ ____________
Goods Completed ___________ ____________ Transfer to Cost of Goods Sold
End. bal. ___________ ____________
Cost of Goods Sold
Beg. bal. ___________ ____________
Finished Goods Inventory ___________ ____________
End. bal. ___________ ____________
Answer:
Sunset Products
a) Journal Entries:
Transactions General Journal Debit Credit
Materials Inventory $24,500
Accounts Payable $24,500
To record the purchase of materials on account.
Manufacturing Overhead $1,450
Materials Inventory $1,450
To record the issue of supplies.
Materials Inventory $25,900
Accounts Payable $25,900
To record the purchase of materials on account.
Accounts Payable $24,500
Cash Account $24,500
To record the payment on account.
Work-in-Process Inventory $30,900
Materials Inventory $30,900
To record the issue of direct materials to the production department.
Work-in-Process Inventory $29,500
Factory Wages $29,500
To record direct labor costs to work in process.
Manufacturing Overhead $22,400
Cash Account $22,400
To record the payment for utilities and other expenses.
Work-in-Process Inventory $35,400
Manufacturing Overhead $35,400
To apply overhead to work in process.
Manufacturing Overhead $5,900
Depreciation Expense $5,900
To recognize depreciation on property, plant, and equipment.
Manufacturing overhead applied $29,750
Manufacturing overhead $29,750
To transfer manufacturing overhead to the overhead applied account.
b) T-accounts:
Materials Inventory
Transaction Details Debit Credit
Beginning balance $ 13,500
Accounts Payable 24,500
Manufacturing overhead $1,450
Accounts Payable 25,900
Work-in-Process Inventory 30,900
Ending balance $31,550
Work-in-Process Inventory
Transaction Details Debit Credit
Beginning balance $24,750
Materials Inventory 30,900
Factory Wages 29,500
Manufacturing Overhead 35,400
Finished Goods Inventory $71,600
Ending balance 54,200
Finished Goods Inventory
Transaction Details Debit Credit
Beginning balance $97,500
Work-in-Process 71,600
Cost of goods sold $114,350
Ending balance 54,750
Cost of Goods Sold
Transaction Details Debit Credit
Beginning balance $120,000
Overapplied overhead $5,650
Ending balance 114,350
Manufacturing Overhead Control Account
Transaction Details Debit Credit
Materials Inventory $1,450
Cash Account 22,400
Depreciation expense 5,900
Manufacturing overhead applied $29,750
Manufacturing Overhead Applied
Transaction Details Debit Credit
Work in Process $35,400
Manufacturing overhead $29,750
Overapplied overhead 5,650
Accounts Payable
Transaction Details Debit Credit Materials Inventory $24,500
Materials Inventory 25,900
Cash Account $24,500
Ending Balance 25,900
Cash Account
Transaction Details Debit Credit
Accounts Payable $24,500
Manufacturing Overhead 22,400
Explanation:
a) Data and Calculations:
Accounts balances of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following about these 2 firms:______.
Stock Price per share # shares outstanding Market Value of Debt
UPS $65 0.7 billion $ 5 billion
FedEx $55 250 million $ 3 billion
We also have the following data on the securities of these firms:_______.
Beta E Beta D
UPS 0.8 0
FedEx 1.1 0.1
Assume that our firm has risk-free debt with market value $20 million and equity with market value $450 million. Assume that taxes are not relevant. Please estimate our firm’s equity beta
Answer:
The answer is "0.85 "
Explanation:
In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.
Price Outstanding shares(Billion) Market valu of equity(Billion) Market value of debt(billions) D/E Ratio
UPS 65 0.7 45.5 5 0.1099
FedEx 55 0.25 13.75 3 0.2182
[tex]Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}[/tex]
taxes desn't matter , given in the question so, assumed to be 0
[tex]Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}[/tex]
[tex]= \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72[/tex]
[tex]Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}[/tex]
[tex]= \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90[/tex]
[tex]Average \ Unlevered \ beta = \frac{0.72+0.90}{2}[/tex]
[tex]= \frac{1.62}{2}\\\\=0.81[/tex]
[tex]\text{levered beta of the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))[/tex]
[tex]= 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85[/tex]
1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
Answer: $20
Explanation:
The sales commission is 6% and the selling price per unit is $340.
The Sales commission per unit saved therefore is;
= 340 * 6%
= $20.40
= $20
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
Which of the following influences what you choose to wear
Your activities
All of the Above
Basic needs
Your personal preferences
Answer:
all of the above dnnxndncnvhhdbdbdbd
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
You are considering starting a company that manufactures racing bicycles. You are planning on financing your firm 40% equity and 60% debt. You estimate that your upfront costs will be $5M, and that you will earn an EBIT of $1M per year for the next 12 years. Lightning Bolt Bikes makes racing bicycles similar to the ones that you wish to manufacture. They have a CAPM equity beta of 1.9 and a debt to equity ratio of 0.7. The tax rate for both firms is 35%, the riskless rate is 3%, and the expected return on the S&P500 is 15%. Cost of Debt is 6%
Part A (5 points). What is the asset beta of Lightning Bolt Bikes?
Part B (5 points). What is your unlevered cost of equity?
Part C (5 points). What is your firm’s equity beta?
Part D (10 points). What is your firm’s weighted average cost of capital?
Part E (5 points). What is the NPV of your proposed bicycle company using the WACC method?
Answer and Explanation:
1. Asset beta measures company's risk or volatility of return in assets without the effect of leverage financing or debt.
Asset beta= Equity beta / 1+(1-tax rate) *debt / equity
2. Unlevered cost of equity measures the returns on assets without the effect of debt
Unlevered cost of equity = Risk free return + Asset Beta * (Expected market return - Risk free return)
3. Equity beta measures security prices' volatility to change in the market
4. Weighted average cost of capital is the weighted average cost or average cost of all capital sources employed by the company in financing it's assets
Weighted Average cost of capital = Cost of Equity * proportion of equity + Cost of debt after tax rate * proportion of debt
Expected return in CAPM= Risk free return +asset beta *market return -risk free return
Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1,760 per month. Her employer deducts $199 for taxes from her monthly pay. Kim also pays $189 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $172 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan.
Required:
a. Carl’s house payment is $1,640 per month and his car payment is $482 per month. If Carl's take-home pay is $3,250 per month, what percentage does Carl spend on his home and car?
b. Suppose that your monthly net income is $2,850. Your monthly debt payments include your student loan payment and a gas credit card. They total $1,140. What is your debt payments-to-income ratio?
Answer:
1. Kim:
Debt payments-to-income ratio with the college loan
= 23%
2. Carl:
Percentage spent on home and car
= 65.3%
3. Debt payment to income ratio
= 40%
Explanation:
Kim's Data and Calculations:
Gross income = $1,760
Income taxes -199
After Tax Income $1,561 per month
Credit card debts = $189 per month
School loan = $172 per month
Total Debt payments = $361
Debt payments-to-income ratio with the college loan
= $361/$1,561 = 23%
Carl:
House payment = $1,640
Car payment = $482
Total payments = $2,122
Take-home pay = $3,250
Percentage spent on home and car = 65.3% ($2,122/$3,250 * 100)
3. My monthly net income = $2,850
Monthly debt payments = $1,140
Debt payment to income ratio
= $1,140/$2,850 * 100
= 0.4
= 40%
Financial Assertions and Audit Objectives. You are engaged to examine the financial statements of Spillane Company for the year ended December 31. Assume that on November 1, Spillane borrowed $500,000 from Second National Bank to finance plant expansion. The long-term note agreement provided for the annual payment of principal and interest over five years. The existing plant was pledged as security for the loan. Due to the unexpected difficulties in acquiring the building site, the plant expansion did not begin on time. To use the borrowed funds, management decided to invest in stocks and bonds and on November 16, invested the $500,000 in publicly traded securities
Required:
Develop specific assertions (audit objectives) related to securities (assets) based on management’s five (PCAOB) general assertions.
Answer:
Assertion 1) Existence or occurrence: the company must provide the loan documents along with proof that they actually purchased the stocks and bonds using the loan money. It would also help to have a document explaining why the building site couldn't be acquired as planned.
Assertion 2) Rights and obligations: all the legal paperwork regarding the loan, the mortgage on the existing plant and the stocks and bond paperwork must be presented.
Assertion 3) Completeness: all the relevant information must be readily available including building titles, inventories, equipment, cash receipts, etc. The auditor should be allowed to physically visit the plant and confirm the documents.
Assertion 4) Valuation and allocation: information regarding the current market values of the building, inventories and equipment should be given. The auditor should be able to confirm if the depreciation values and market values are consistent. Also, the auditor must have access to accounts receivables and should be able to analyze them to check for any inconsistencies.
Assertion 5) Presentation and disclosure: the auditor should be able to check expense accounts and capitalization accounts, and analyze them. E.g. equipment or machinery repairs must be treated as expenses and not capitalized.
For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are
Answer:
dry skin and acne
Explanation:
Coppertone is an American brand name of a sunscreen. This brand is headquartered in Whippany, New Jersey. Coppertone the Coppertone girl logo and a different kind of fragrance.
For Coppertone products, evaluations in the post purchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are dry skin and acne.
True or false, Is server a collection of computers and devices connected together wirelessly
Answer:
True
Explanation:
A network is a collection of computers and devices connected together via communications devices and transmission media. Many businesses network their computers together to facilitate communications, share hardware, share data and information, share software, and transfer funds.
Answer:
True
Explanation:
The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original payment was initially debited to a prepaid asset account. The appropriate journal entry has been recorded on December 31, 20x9. The balance in the prepaid asset account on December 31, 20x9 should be Select one: a. The same as the original payment b. The same as it would have been if the original payment had been debited initially to an expense account c. Higher than if the original payment had been debited initially to an expense account d. Zero Check
Answer:
b. The same as it would have been if the original payment had been debited initially to an expense account
Explanation:
We can use an example to explain this:
original journal entry to record a 3 year insurance policy on January 1 is:
Dr Prepaid insurance 3,600
Cr Cash 3,600
Adjusting entry on December 31
Dr Insurance expense 1,200
Cr Prepaid insurance 1,200
balance of prepaid insurance = $3,600 - $1,200 = $2,400
If instead of recording prepaid insurance on January 1, you recorded insurance expense:
Dr Insurance expense 3,600
Cr Cash 3,600
Adjusting entry on December 31
Dr Prepaid insurance 2,400
Cr Insurance expense 2,400
balance of prepaid insurance = $2,400
What was the first chess champion
Answer:
Wilhelm Steinitz
Explanation:
Answer:
Wilhelm Steinitz
Explanation:
in 1886 he took place the first officially recognized World Chess Championship. So in the year of 1886 he was proclaimed as the first World Chess Champion. The final result was 10 victories for Steinitz, 5 for Zukertort and 5 draws
University Printers has two service departments Maintenance and Personnel and two operating departments Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours ? 455 455 2,590
Labor-hours 315 ? 294 1,491
Department direct cost 11,000 $23,000 $25,000 $23,000
Required: Allocate the service department costs using the reciprocal method. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.
Answer:
Machine hour percentages -Allocation of Maintenance Costs
455 + 455 + 2,590 = 3,500 total machine hrs
Personnel = 455 / 3,500 = 13%
Printing = 455 / 3,500 = 13%
Developing = 2,590 / 3,500 = 74%
Labor hr. percentages--Allocation of Personnel costs
315 + 294 + 1,491 = 2,100 total labor hrs.
Maintenance = 315 / 2,100 = 15%
Printing = 294 / 2,100 = 14%
Developing = 1,491 / 2,100 = 71%
Service
Maintenance Personnel Printing Developing
Costs before allocation 11,000 23,000 25,000 23,000
Allocate maintenance costs -11,000 1,430 1,430 8,140
0 24,430
Allocate personnel costs 3664.5 -24430 3420.2 17345.3
Allocate maintenance costs -3664.5 476.39 476.39 2711.73
Allocate personnel costs 71.46 -476.39 66.69 338.24
Allocate maintenance costs -71.46 9.29 9.29 52.88
Allocate personnel costs 1.39 -9.29 1.3006 6.5959
Allocate maintenance costs -1.39 0 0 1.39
Total costs 0.00 0.00 30403.87 51596.13
Workings
Allocate maintenance costs
Personnel = (11000 * 13%) = 1430
Printing = (11000 * 13%) = 1430
Developing = (11000 * 74%) = 8140
Allocate personnel costs
Maintenance = 24430 * 15% =
Printing = (24430 * 14%) =
Developing = (24430 * 71%) =
Allocate maintenance costs
Personnel = (3664.5 * 13%)
Printing = (3664.5 * 13%)
Developing = (3664.5 * 74%)
Allocate personnel costs
Maintenance = (476.39 * 15%)
Printing = (476.39 * 14%)
Developing = (476.39 * 71%)
Allocate maintenance costs
Personnel = (71.46 * 13%)
Printing = (71.46 * 13%)
Developing = (71.46 * 74%)
Allocate personnel costs
Maintenance= (9.29 * 15%)
Printing = (9.29 * 14%)
Developing = (9.29 * 71%)
Read the overview below and complete the activities that follow. In addition to trade accounts payable, many companies have other types of current liabilities. These include amounts withheld from employees' pay, sales and other taxes payable, deposits, and other accrued liabilities.
CONCEPT REVIEW:
Companies have many different types of current liabilities. These can include various taxes payable (income tax, sales tax, payroll tax), accrued amounts for salary, vacation or other benefits, and estimates such as accrued utilities and warranty. To adhere to the concept of the matching principle, companies must estimate the amount of their other liabilities.
1. Federal anid state governments do not specily the exact______to be maint, but do specify the amounts to be withheld.
2. Income taxes withheld from employees but not yet submitted to the govenment are considered to be a(n)______.
3. When testing customer deposits, auditors typically review a(n)______of the individual deposits.
4. When testing other accrued liabilities. auditors may independently calculate the amount and______ it to management's estimate.
5. Property tax payments are typically______in number.
Answer:
1. Federal and state governments do not specify the exact__number of accounts____to be maintained, but do specify the amounts to be withheld.
2. Income taxes withheld from employees but not yet submitted to the government are considered to be a(n)_liability_____.
3. When testing customer deposits, auditors typically review a(n)_sample_____of the individual deposits.
4. When testing other accrued liabilities. auditors may independently calculate the amount and__compare____ it to management's estimate.
5. Property tax payments are typically_numerous_____in number.
Explanation:
Even Federal and State governments and business organizations apply the matching principle of the generally accepted accounting principles. The principle requires that revenues are matched to the expenses that are incurred in generating them and vice versa. The purpose is to present a balance view of financial performance and position of the reporting entity. For this reason, who expenses may not be actually paid for and they are recognized while some that have been paid for are not. The same rule applies to the revenue side.
Bramble Corp. sells MP3 players for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How many MP3 players must Bramble sell to earn net income of $300000?
Answer:
Break-even point in units= 14,000 units
Explanation:
Giving the following information:
Selling price= $60
Variable costs are $30 per unit
Fixed costs total $120,000.
Desired profit= $300,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit
Break-even point in units= (120,000 + 300,000) / 30
Break-even point in units= 14,000 units
If the amount of credit is 300,000 how much is the discount if the debtor is given a credit term of 2/10 N/30?show your
Answer:
6,000
Explanation:
In credit sales, 2/10 Net 30 means that the seller has offered the customer a trade discount. 2/10 net 30 is a conditional discount available if payment is made in 10 days. It's a 2% discount should the customer pay in 10 days, if not so, the full amount is due within 30 days.
The discount amount for 300,000 is 2 percent of 300,000.
=2/100 x 300,000
=0.02 x 300,000
=6,000
King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
Calculation of Cost of Goods Sold :
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Most decision makers and analysts use five groups of ratios to examine the different aspects of a company’s performance. Indicate whether each of the following statements regarding financial ratios are true or false?
a. The ratios provide an accurate and thorough representation of the Chinese company’s performance.b. The analysis likely includes incorrect and misleading conclusions.
Answer:
a. False
b. True
Explanation:
Ratio analysis is a very useful method of analyzing a company however it is not necessarily very in-depth. If a company seems to be performing below the industrial average, it would be prudent to check the reasons why the company is doing so.
The advantage of ratio analysis in this instance is that it would help point you in the right direction to know what accounts to analyze more intensely to find out why the Chinese company is not performing up to standard.
Ratio analysis are good but they do not always provide an accurate and thorough representation of a company’s performance therefore relying solely on ratios will lead to an analysis that likely includes incorrect and misleading conclusions.
Which of the following is a key role that a human resource manager can play in a company?
A. Public Relations officer
B. Marking Analyst
C. Training specialist
D. Sales supervisor
Answer:
c training specialist
List 6 mistakes that can be made during an interview.
Answer:
1.Appearing Disinterested
2.Answering a Call or Texting
3.Dressing Inappropriately
4.Talking Negatively About a Current or Previous Employer
5.Body Language
6.Being Vague
Explanation:
Hope this helps !
Poor interview preparation is a clear killer, and 75% of interviews end in failure because the applicant wasn't prepared for some of the questions asked or didn't know enough about the employer.
What are mistakes that can be made during an interview ?Failing to conduct research The biggest error all of our experts mentioned was showing up unprepared for an interview. This could be not doing your homework on the business, not giving the job enough consideration, or not knowing who you're meeting. However, it could also refer to not having a plan for your conversation.
Most applicants anticipate being questioned. When one person asks every question and the other person responds, an interrogation has taken place. In an interview, questions are posed and answered in the context of a business dialogue. applicants who anticipate unwilling interrogator.
Lack of planning. Some recruiting managers favour conducting interviews in a more "spontaneous" manner.
becoming very anxious.acting too carelessly.being very zealous.intimidating potential employees.Lying. accepting bias.Learn more about Interveiw here
https://brainly.com/question/12600494
#SPJ2
Hussein got a call yesterday from First Bank, the company that issued his credit card inquiring about an $105.00 charge made in Buenos Aires, Argentina. Upon learning that Hussein was in Detroit and had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Hussein's credit card number had an illegal transaction, he may also want to:____________.
A) check his computer's firewall to make sure it's working.
B) cancel his account and eliminate credit cards from his life.
C) change his passwords and store them in a password manager.
D) diversify his spending habits by using one of several credit cards when making purchases.
Answer:
C) change his passwords and store them in a password manager.
Explanation:
Hussein, being a victim of cyber theft of money from his bank account, after having informed bank about the fraudulent transaction, should :-
Take further precautionary measures for modifying & safely saving other related crucial information, like passwords. So, he should change his passwords and store them in a password manager.
Apr. 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $390 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $13,100 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Answer:
Apr. 2
Merchandise $6,900 (debit)
Accounts Payable : Lyon Company $6,900 (credit)
Purchased Merchandise from Lyon Company on credit
April 3.
Accounts Payable : Lyon Company $390 (debit)
Cash $390 (credit)
Payment of Freight Charges Include in Invoice (FOB)
April 4.
Accounts Payable : Lyon Company $500 (debit)
Merchandise $500 (credit)
Returned Merchandise to Lyon Company
April 17.
Accounts Payable : Lyon Company $6,010 (debit)
Discount Received $120 (credit)
Cash $5,890 (credit)
Payment of amount due to Lyon Company and discount received
April 18.
Merchandise $13,100 (debit)
Accounts Payable: Frist Corp $13,100 (credit)
Purchased Merchandise on credit from Frist Corp
April 2.
Accounts Payable: Frist Corp $400 (debit)
Purchase allowance $400 (credit)
Received and allowance from Frist Corp
April 28.
Accounts Payable: Frist Corp $12,700 (debit)
Discount Received $127 (credit)
Cash $12,573 (credit)
Payment of amount due to Frist Corp and discount received
Explanation:
See the journals and their narrations prepared above.