Answer:
Kitchen workers prepare and cook food and clean dishes, while the other restaurant employees greet guests and take orders.
Explanation:
Kitchen workers prepare and cook food and clean dishes, while the other restaurant employees greet guests and take orders is the best describes the difference in the duties of restaurant employees who work inside and outside a kitchen. Hence, option D is correct.
What are duties and responsibilities of restaurant staff?The tasks and obligations of a waiter or waitress include greeting and seating customers, collecting their orders, properly relaying them to the kitchen, and memorizing the menu in order to suggest additional appetizers, desserts, or drinks.
The duties of an assistant manager in a restaurant range from scheduling shifts to taking care of the needs of the personnel. They must also guarantee that the establishment complies with all relevant rules and encourages a pleasant dining experience with top-notch customer service.
promptly, expertly, and amiably handled customers' orders for food and beverages. Good menu knowledge was used to help clients and, when possible, upsell menu items. Ensured that everything was kept orderly and clean at all times, including the placement of all tables and silverware.
Thus, option D is correct.
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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $360,000. During 2021, Halifax sold merchandise on account for $12,100,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $594,000 in sales for credit, with $328,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.
Required:
1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021, and (c) adjust the refund liability to its appropriate balance at year-end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?
1a. Record the actual sales return of merchandise sold prior to 2021.
1b. Record the cost of merchandise returned for goods sold prior to 2021.
1c. Record the actual sales return of merchandise sold during 2021.
1d. Record the cost of merchandise returned for goods sold during 2021.
1e. Record the year-end adjusting entry for estimated returns.
1f. Record the adjusting entry for the estimated return of merchandise to inventory.
3. What is the amount of the year-end refund liability after the adjusting entry is recorded?
Answer:
Halifax Manufacturing
a. Record the actual sales return of merchandise sold prior to 2021.
Debit Refund Liability $328,000
Credit Accounts Receivable $328,000
To record actual returns for sales prior to 2021.
1b. Record the cost of merchandise returned for goods sold prior to 2021.
Debit Inventory $229,600
Credit Estimated Inventory Returns $229,600
To record the cost of merchandise returned for goods sold prior to 2021.
1c. Record the actual sales return of merchandise sold during 2021.
Debit Sales Returns $266,000
Credit Accounts Receivable $266,000
To record actual returns for the current year.
1d. Record the cost of merchandise returned for goods sold during 2021.
Debit Inventory $186,200
Credit Cost of Goods sold $186,200
To record the cost of goods returned for sales during the year.
1e. Record the year-end adjusting entry for estimated returns.
Debit Sales Returns $591,700
Credit Refund Liability $591,700
To record sales returns adjusting entry for the current year.
1f. Record the adjusting entry for the estimated return of merchandise to inventory.
Debit Estimated Inventory Returns $414,190
Credit Cost of goods sold $414,190
To record the adjusting entry for the estimated inventory returns.
3. What is the amount of the year-end refund liability after the adjusting entry is recorded?
= $623,700
Explanation:
a) Data and Calculations:
Refund liability (beginning balance) = $360,000
Sales = $12,100,000
Cost of merchandise = $8,470,000 (70% * $12,100,000)
Actual returns during the year = $594,000
Returns for prior years = 328,000
Returns for current year = 266,000
Estimated sales returns allowance = 5% for year-end adjusting entry.
Refund liability (beginning balance) = $360,000
Actual return for prior years = (328,000)
Allowance for current year = 591,700
Refund liability (ending balance) = $623,700
A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is:
Answer: Please see explanation for answer
Explanation:
Journal entry to record sale of bonds
Account titles Debit Credit
Cash $50,000,000
Bonds Payable $50,000,000
Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.
Answer:
Definition of Economic Costs
Implicit and Explicit Costs:
The wholesale cost for the pianos that Darnell pays the manufacturer Explicit Cost
The salary Darnell could earn if he worked as an accountant Implicit Cost
The wages and utility bills that Darnell pays Explicit Costs
The rental income Darnell could receive if he chose to rent out his showroom Implicit Cost
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit $89,000
Economic Profit $3,000 ($89,000 - 86,000)
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $__86,000____.
This economic profit includes the rental and salary income that Darnell can earn.
Explanation:
a) Data:
Sales Revenue = $842,000
Cost of goods sold 452,000
Wages & Utilities = 301,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
Profit (Dollars)
Sales Revenue = $842,000
Cost of goods sold 452,000
Gross profit $390,000
Wages & Utilities = 301,000
Net Income $89,000
Opportunity cost of showroom = $38,000
Opportunity cost of employment = $48,000
Total opportunity cost = $86,000
Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.
Answer:
Fixed annuities
Variable annuities
Indexed annuities
Explanation:
Annuities are defined as contract that pays out regular amounts over time at a particular interest rate.
Usually there is an initial investment of a lumps sum or a series of deposits.
Annuities are classified based on level of risk and payout potential into 3:
- Fixed annuity give out a fixed guaranteed payout amount. The risk is low but the payout is low. Slightly above certificate of deposits.
- Variable annuity is one that gives room for a higher payout but risk is also higher. A set of mutual funds are invested in and payout is dependent on how they perform.
- Indexed annuity gives higher return that is tied to the performance of an index like the S&P 500. The risk is lower than that of variable annuity
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
Calculation for annual demand
Annual demand=138*358 days
Annual demand=49,404
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
Reorder point = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets $ 10,000
Current liabilities $ 7,840
Other assets 3,100
Long-term debt 5,110
Net fixed assets 17,300
Equity 17,450
Total $ 30,400
Total $ 30,400
All Gold Mining
Current assets $ 2,920
Current liabilities $ 2,620
Other assets 1,380
Long-term debt 0
Net fixed assets 6,110
Equity 7,790
Total $ 10,410
Total $ 10,410
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,510; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,660 in new long-term dept to finance the acquisition.
Answer:
Silver Enterprises Post Merger Balance Sheet
Current Assets 12,920 Current liabilities 10,460
Other Asset 4,480 Long-term debt 19,770
Net Fixed Asset 24,810 Equity 17,450
Goodwill 5,470
$47,880 $47,680
Explanation:
Current assets = 10,000 + 2,920 = 12,920
Other assets = 3,100 + 1,380 = 4,480
Current liabilities = 7,840 + 2,620 = 10,460
Net fixed assets = 17,300 + 7,510= 24,810
Long-term debt = 5,110 + 14,660 = 19,770
Equity = $17,450
Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? Declaration and payment of a cash dividend during the period. Net income for the period.
Answer:
Net income for the period.
Explanation:
the statement of cash flow is a financial statement which gives a summary of amount of money or money equivalents that are going into a company and also going out of the company. it gives a measurement of how well the cash position is being managed by the company. the net income for the period is going to be reported in the section called financing activities.
Darby Company, operating at full capacity, sold 500,000 units at a price of $94 per unit during the current year. Its income statement is as follows:
Sales $47,000,000
Cost of goods sold 25,000,000
Gross profit $22,000,000
Expenses:
Selling expenses $4,000,000
Administrative expenses 3,000,000
Total expenses 7,000,000
Income from operations $15,000,000
The division of costs between variable and fixed is as follows:
Variable Fixed
Cost of goods sold 70% 30%
Selling expenses 75% 25%
Administrative expenses50% 50%
Management is considering a plant expansion program for the following year that will permit an increase of $3,760,000 in yearly sales. The expansion will increase fixed costs by $1,800,000 but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs $_____
Total fixed costs $_____
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost $_____
Unit contribution margin $_____
3. Compute the break-even sales (units) for the current year.
4. Compute the break-even sales (units) under the proposed program for the following year.
5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
6. Determine the maximum income from operations possible with the expanded plant.
7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
8. Based on the data given, would you recommend accepting the proposal?
a. In favor of the proposal because of the reduction in break-even point.
b. In favor of the proposal because of the possibility of increasing income from operations.
c. In favor of the proposal because of the increase in break-even point.
d. Reject the proposal because if future sales remain at the current level, the income from operations will increase.
e. Reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.
Answer:
1. Determine the total variable costs and the total fixed costs for the current year.
Total variable costs = $17,500,000 + $3,000,000 + $1,500,000 = $22,000,000 Total fixed costs = $10,000,0002. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year.
Unit variable cost = $22,000,000 / 500,000 = $44 Unit contribution margin = $94 - $44 = $503. Compute the break-even sales (units) for the current year.
break even point = $10,000,000 / $50 = 200,000 units4. Compute the break-even sales (units) under the proposed program for the following year.
break even point = $11,800,000 / $50 = 236,000 units5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $15,000,000 of income from operations that were earned in the current year.
units = ($11,800,000 + $15,000,000) / $50 = 536,000 units6. Determine the maximum income from operations possible with the expanded plant.
total units sold 500,000 + 40,000 = 540,000total contribution margin = 540,000 x $50 = $27,000,000operating income = $27,000,000 - $11,800,000 = $15,200,0007. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year?
operating income = (500,000 x $50) - $11,800,000 = $13,200,000represents a decrease of $15,000,000 - $13,200,000 = $1,800,0008. Based on the data given, would you recommend accepting the proposal?
b. In favor of the proposal because of the possibility of increasing income from operations.Cari created a list of ways to reduce her spending. Which activity should she omit from her list? Choose the correct answer below. use less expensive places for services such as haircuts wear items of clothing for an extra season buy store brands instead of name brands for food and other items rely on friends to treat me when I am out of money
Answer:
b
Explanation:
The difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's: Group of answer choices
Answer:
Incremental cash flows.
Explanation:
An incremental cash flow can be defined as the additional cash flow with respect to operating activities or costs that is generated when an organization from executing a new project entirely.
Hence, the difference between a firm's future cash flows if it accepts a project and the firm's future cash flows if it does not accept the project is referred to as the project's Incremental cash flows.
For example, when Toyota purchase Uber transport.
Assignment 3 Suggested Length: 750 to 1000 words Ethical Theories to Apply: Golden Rule and Virtue Ethics
1. Task You work in the Ethics Department for ABC Company (ABC). Your department is dedicated to advising its employees about their ethical obligations in the corporate setting. You are an internal consultant who provides advice and most importantly, recommendations for action to employees of the firm. All communications you receive in this capacity are confidential. Luke, an employee of ABC, comes to you with the following scenario and asks for your advice. He wants to fully consider the situation. Your task is to advise and recommend a course of action based on the specified ethical lenses and facts as given. Below are the facts that Luke provides to you. ***** Luke has been asked to work on a project that involves developing land recently purchased by ABC to build an adult entertainment retail store. According to the plan, the land is located on the corner of the neighborhood where Owen, Luke’s brother, lives. Luke knows that as soon as the plans for the store are made public, property values for the surrounding neighborhood will decrease significantly. ABC plans to publicly announce the project one month from today. Luke is concerned about his obligations of confidentiality to his company. However, Luke is also very close to Owen, who recently told Luke that he received an offer to sell his house at an "okay" price given the current real estate market. Owen is considering selling but hasn’t made any final decision yet. He wonders if he might get a better offer a few years from now when the real estate market improves. What is the ethical issue, why is this an issue, and what should Luke do about it?
***** For assignment 3, prepare a memo, setting out your analysis and recommendations, that considers ONLY the following two theories: Golden Rule and Virtue Ethics.
Answer:
My answer is a little long, so you will probably need to summarize it.
The ethical issue here is that you work for a company that is about to open a store that will make the price of your brother's house to plummet. Your brother has the option to sell his house right now, but if you tell him to accept the offer, you will be breaching your employment duties.
Is your duty towards your brother more or less important than the duty towards the company?
We can analyze both possible outcomes:
You do not tell your brother and he does not sell his house. After the store is announced, your brother's house will decrease in value. That means that your brother will lose a lot of money, but you complied with the obligation of confidentiality that you have with your company. The downside is that once your brother knows about it, he will hate you for the rest of his life. And the hatred will probably not be limited to only your brother, most, if not all of your family will be very unpleased and terribly mad at you. Your family will probably wonder why your parents didn't abort you?, or are you adopted?, or do you simply hate humanity? On the other hand, you decide that you value your brother and whole family, and you decide to tell him to accept the offer. You will have breached your confidentiality obligation towards the company, but you will have literally saved your brother's financial situation, and you will have saved any type of relationship that you have with your family. Will the company be hurt by your decision? No, it will not make any difference to them. They are announcing the decision in just a few days, so anything that you tell your brother will not make any difference. Since your brother will try to sell his house, he will keep the information to himself, since telling other people will only ruin any possible sale.If we follow the golden rule: do to others what you would like them to do to you, then obviously we should tell Owen about our company's plans. If we were Owen, that information would be really important for us.
If we follow virtue ethics, then it gets a little bit more complicated. Is telling Owen about the new store a virtuous action? Would a virtuous person do it? To be honest, I'm not really sure what exactly is a virtuous person.
What I understand is that virtue ethics is based on who you are, and not what you really will do. So, the question here would be: Are you a good (or virtuous) brother? Are you a good (or virtuous) employee? In this case, you cannot be a virtuous employee and a virtuous brother at the same time, so it depends on which you value the most. Going back to the possible outcomes, I would prefer to be a virtuous brother in this case.
"The​ ________ includes all international economic transactions with income or payment flows occurring within the year."
Answer:
Current account
Explanation:
The current account is the account that involves all the transactions deals in an economic way and have international transactions. This shows the income generated and the flows of payment arise within the year or for the present period.
It could be in terms of trading of goods, trading of services, income, present transfers
Therefore the given situation represent the current account
What is the situation when a home currency purchases more goods and services at home than abroad when converted to a foreign currency
Answer:
The domestic currency is undervalued .
Explanation:
In the situation when a home currency purchases more goods and services at home than abroad when converted to a foreign currency, then The domestic currency is undervalued
A currency is undervalue whenever the "exchange rate" value to other currency arround the world is comparatively low. Under the economic condition the whenever the consumer purchase goods from foreign countries they tends to pay high because the value of that home currency is weak and low compare to the foreign currency. Most home currency are usually rate against US dollar.
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $9.15 per haircut. Other costs are as follows.
Advertising $240 per month
Rent $1,100 per month
Barber supplies $0.35 per haircut
Utilities $185 per month plus $0.10 per haircut
Magazines $35 per month Sunland currently charges $16 per haircut.
Vin currently charges $10 per haircut.
Required:
a. Determine the variable costs per haircut and the total monthly fixed costs.
b. Compute the break-even point in units and dollars.
c. Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.
d. Determine net income, assuming 1,600 haircuts are given in a month.
Answer:
a. Variable costs = $9.60 and Fixed Costs = $7,840
b. 1,225 haircuts and $19,600
c. See attachment
d. $2,400
Explanation:
Variable Costs per haircut Calculations
Barber supplies $0.35
Utilities $0.10
Commission $9.15
Total Variable Costs per haircut $9.60
Total Monthly Fixed Costs Calculation
Base Salary (1,440 × 4 + 520) $6,280
Advertising $240
Rent $1,100
Utilities $185
Magazines $35
Total Monthly Fixed Costs $7,840
Contribution per unit = Selling price per unit - Variable Cost per unit
= $16.00 - $9.60
= $6.40
Contribution Margin Ratio = Contribution ÷ Selling Price
= $6.40 ÷ $16.00
= 0.40
Break-even point (units) = Fixed Cost ÷ Contribution per unit
= $7,840 ÷ $6.40
= 1,225 haircuts
Break-even point (dollars) = Fixed Cost ÷ Contribution Margin Ratio
= $7,840 ÷ 0.40
= $19,600
Net income, assuming 1,600 haircuts are given in a month [calculation]
Contribution (1,600 × $6.40) $10,240
Less Fixed Costs ($7,840)
Net Income/(loss) $2,400
Two manufacturers, denoted 1 and 2, are competing for 100 identical customers. Each manufacturer chooses both the price and quality of its product, where each variable can take any nonnegtive real number. Let pi and xi denote, respectively, the price and quality of manufacturer i's product. The cost to manufacturer i of producing for one customer is 10+5xi . Note in this expression that the cost is higher when the quality is higher. If manufacturer i sells to qi customers, then its total cost is qi(10+5xi). Each cutomer buys from the manufacturer who offers the greatest value, where the value of buying from manufacturer i is 1000+ xi - pi ; higher quality and lower price means more value. A manufacturer's is qi( pi- 10 - 5xi ). If both manufacturer offers the same value, then 50 customers buy from each manufacturer. If one manufacturer offers higher value, then 100 customers buy from it.
Find all symmetric Nash equilibria.
Answer:
Nash equilibrium will occur at the following conditions P1 = P2 = 10 and x1 = x2 = 0.
Explanation:
The term or concept known as the Nash equilibria is very important and it is often used in the determination of the kind of price strategies companies that are competing against one another will use in order to acquire more customers than the others.
So, in this question/problem we are given that there are two manufacturer that is manufacturer 1 and manufacturer 2. Also, the total number of customers both manufacturers are competing for is equal to 100.
Kindly note that we are given from the question that ''Each manufacturer chooses both the price and quality of its product, where each variable can take any non-negative real number''
If each of the manufacturer has 50 customers each that is symmetric condition.
Assuming we have a condition or situation where p1 is less than p2 for manufacturer 1, it means that manufacture 1 lessens its price, therefore manufacturer 1 will have all all the profit = 100(p1 - 10 - 5x1).
Assuming manufacturer 1 reduces both the quality and the price this time around to the point that it is justifiable to lower the price because of the quality , it means that we will have 1000 + (x1 = 0) + (p1 - compensation m).
For any of the manufacturer, If m> x' and we have that x1 = x'>0[ which is for the quality], then, the profit will be 100(10 + 5x'- m -10).
Also, For any of the manufacturer, if we have x'<m<5x' and x1 for the representation of quality, then, Customers will buy from both manufacturer making m<5x'.
Therefore, Nash equilibrium will occur at the following conditions: P1 = P2 = 10 and x1 = x2 = 0.
SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?
Answer: See explanation
Explanation:
a. The optimal order quantity can be calculated as:
= √2DS/H
where
D = 3 × 12 × 3487 × 0. 75
= 94149
Total cost incurred during purchase
= $1.55 + $0.70
= $2.25
Setup cost (S) = $186
Holding cost
= 32% × $2.25
= 0.32 × $2.25
= $0.72
Optimal order quantity
= √(2 × 94149 × 186)/0.72
= 6974.50
b. This will be calculated as:
Annual demand / EOQ
= 94149/6974.50
= 13.50
The company should order cotton 13.5 times per year.
c. Since the first order is needed on 1-July and lead time is 2 weeks, SYM should place the order before 17th June.
d. This will be:
= Annual demand / EOQ
= 94149/6974.50
= 13.5 orders
e. The resulting annual holding cost will be:
= 0.72 × (6974.50/2)
= 0.72 × 3487.25
= $2510.82
f. The resulting annual ordering will be:
= 94149/6974.50 × $186
= 13.5 × $186
= $2511
Freeport-McMoRan Copper & Gold Inc., headquartered in Phoenix, Arizona, is a leading international mining company of copper, gold, and molybdenum. Its revenues were over $16 billion with net income of nearly $2 billion in a recent year.
Assume that in February 2020, Freeport-McMoRan paid $800,000 for a mineral deposit in Indonesia. During March, it spent $70,000 in preparing the deposit for exploitation. It was estimated that 1,000,000 total cubic yards could be extracted economically. During 2020, 60,000 cubic yards were extracted. During January 2021, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit.
Required:
a. Compute the acquisition cost of the deposit in 2020.
b. Compute depletion for 2020.
c. Compute the net book value of the deposit after payment of the January 2021 developmental costs.
Answer:
A. $ 870,000
B. $52,200
C. $823,800
Explanation:
a. Computation for acquisition cost.
Using this formula
Acquistion cost= 800,000 +70,000
Acquistion cost=$ 870,000
2. Computation for depletion
Depletion for 2020=
(870,000/1,000,000)*60,000
Depletion for 2020=0.87*60,000
Depletion for 2020= $52,200
3. Computation for the net book value
Net book value =$870,000 -$52,200 +$6,000
Net book value=$823,800
At year-end 2018, Marvel Company total assets were $4.5 million, and its accounts payable were $850,000. Sales, which in 2018 were $5.5 million, are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Marvel typically uses no current liabilities other than accounts payable. Common stock amounted to $ 2.25 million in 2018, and retained earnings were $150,000. Marvel has arranged to sell $25,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 2.5%, and 55% of earnings will be paid out as dividends.
Required:
a. What were Marvel's total long-term debt and total liabilities in 2018?
b. How much new long-term debt financing will be needed in 2019?
Answer:
Marvel Company
a. Marvel's total long-term debt in 2018 = $1,250,000
a2. Marvel's total liabilities = $2,100,000 ($850,000 +$1,250,000)
b. New long-term debt financing needed in 2019 = $810,156
Explanation:
a) Data and Calculations:
Year-end 2018:
Total assets = $4.5 million
Accounts payable $850,000
Sales = $5.5 million
Common Stock = $2.25 million
Retained Earnings = $150,000
Long-term debt = Total assets Minus (Accounts payable + Equity)
= $4,500,000 - ($850,000 + 2,250,000 + 150,000)
= $1,250,000
Year 2019:
Sales = $6,875,000 ($5.5 million * 1.25)
Net profit margin on sales = $171,875 (2.5% * $6,875,000)
Dividends = 55% of earnings = $94,531 (55% * $171,875)
Retained earnings for the year = $77,344
Retained earnings for 2018: 150,000
Retained earnings, 2019: $227,344
Common Stock = $2,275,000 ($2,250,000 + $25,000)
Total equity = $2,502,344 ($2,250,000 + 227,344)
Total assets = $5,625,000 ($4.5 million * 1.25)
Accounts payable = $1,062,500 ($850,000 * 1.25)
Long-term debt = Total Assets - (Total equity + Accounts Payable)
= $5,625,000 - ($2,502,344 + 1,062,500)
= $2,060,156
Increase in long-term debt = $810,156 ($2,060,156 - $1,250,000)
Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of 75,000 machine-hours.
During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:
Machine-hours 76,000
Manufacturing overhead cost $637,000
Inventories at year-end:
Raw materials $20,000
Work in process (includes overhead applied of $36,480) $115,800
Finished goods (includes overhead applied of $91,200) $289,500
Cost of goods sold (includes overhead applied of $480,320) $1,524,700
Required:
a. Compute the underapplied or overapplied overhead.
b. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
c. Assume that the company allocates any underapplied or over appliedoverhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
d. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?
Answer:
Please solution below
Explanation:
a. Compute the under applied or over applied overhead
First, we need to determine the predetermined overhead rate.
Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours
= $900,000 / 75,000 hours
= $12.0 per hour
But;
Actual manufacturing overhead = $637,000
Manufacturing overhead applied to work in process during the year = 76,000 actual MHs × $12.00 per MH $912,000
Over applied overhead cost = $275,000
b. Journal entry
Cost of goods sold Dr $275,000
To Manufacturing over head applied Cr $275,000
c. The over applied over head would be allocated using the following percentages;
Overhead applied during the year ;
Work in process = $36,480. 6%
Finished goods = $91,200. 15%
Cost of goods sold = $480,320 79%
Total = $608,000 100%
The entry to record the allocation of the overhead applied would be ;
Work in process [6% × $275,000] = $16,500
Finished goods [15% × $275,000] = $41,250
Cost of goods sold [79% × $275,000] = $217,250
d. Comparing the two method;
Cost of goods sold if the over applied overhead is closed to the cost of goods sold [$1,524,700 + $275,000] = $1,799,700
Cost of goods sold if the overhead applied is closed to work in process, finished goods, and cost of goods sold = [$1,524,700 + $217,250] =
$1,741,950
Difference in cost of goods sold = $57,750
Larkspur Incorporated factored $124,300 of accounts receivable with Cullumber Factors Inc. on a without-recourse basis. Cullumber assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments.
Required:
Prepare the journal entry for Larkspur Incorporated and Cullumber Factors to record the factoring of the accounts receivable to Cullumber.
DR Cash 115,599
Due from Factor (Cullumber) 6,215
Loss on Sale of Receivables 2,486
CR Accounts Receivable 124,300
Working
Due from Factor = 5% * 124,300
= $6,215
Loss on sale of receivables = 2% * 124,300
= $2,486
Cash = 124,300 - 6,215 - 2,486
= $115,599
Cullumber Factors Inc.DR Accounts Receivable 124,300
CR Due to Larkspur 6,215
Financing Revenue 2,486
Cash 115,599
You have a tax basis of ​$ and a useful life of five years and no salvage value. Provide a depreciation schedule ​(dk for k1​5) for ​% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the ​% declining balance and​ straight-line methods and BV amounts for each year
Answer:
the numbers are missing, so I will use another question as an example:
the asset's cost is $100,000useful life is 5 yearsno salvage value150% declining balancestraight line depreciation = $100,000 / 5 = $20,000
150% declining balance depreciation year 1 = 1.5 x $100,000 x 1/5 = $30,000, since it is higher than straight line we will use declining balance
book value at end of year 1 = $100,000 - $30,000 = $70,000
straight line deprecation = $70,000 / 4 = $17,500
150% declining balance depreciation year 2 = 1.5 x $70,000 x 1/5 = $28,000, since it is higher than straight line we will use declining balance
book value at end of year 2 = $70,000 - $28,000 = $42,000
straight line depreciation = $42,000 / 3 = $14,000, since it is higher than declining balance we will use straight line ⇒ switchover year
150% declining balance depreciation year 3 = 1.5 x $42,000 x 1/5 = $12,600
book value at end of year 3 = $42,000 - $14,000 = $28,000
depreciation year 4 = $14,000 (straight line)
book value at end of year 4 = $28,000 - $14,000 = $14,000
depreciation year 5 = $14,000 (straight line)
book value at end of year 5 = $14,000 - $14,000 = $0
Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
22%
Explanation:
Margin of Safety is the amount by which sales can fall before making a loss.
Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales
= (13,600 - 10,608) ÷ 13,600
= 0.22 or 22%
Blight Financial has an investment in bonds issued by Searing Industries that are classified as trading securities. At December 31, Year 2, the Investment in Searing bonds account had a debit balance of $500,000, and the bonds were purchased at par so the $500,000 equals amortized cost. The Fair Value Adjustment account had a debit balance of $20,000. On December 31, Year 3, the amortized cost of those bonds has not changed, but the fair value of those bonds was $515,000. Which of the following will be included in the related journal entry dated December 31, Year 3?
a. Debit to Fair value adjustment for $5,000.
b. Credit to Fair value adjustment for $5,000.
c. Debit to Fair value adjustment for $25,000.
d. Credit to Fair value adjustment for $25,000.
Answer:
b. Credit to Fair value adjustment for $5,000.
Explanation:
Particulars Amount
Beginning balance of fair value adjustment $20,000
Less: Unrealized gain on Dec 31 $15,000
(515,000 - 500,000)
Credit to fair value adjustment $5,000
The following costs and inventory data were taken from the accounts of Simon Company for 2010:
January 1, 2011 December 31, 2011
Inventories:
Raw materials $ 8,000 $ 7,000
Work in process 15,000 13,000
Finished goods 16,000 12,000
Costs incurred at the end of December 31, 2011:-
Raw materials purchases $83,000
Direct labor 42,000
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Operating expenses 17,000
Instructions
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31, 2011 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31, 2011 in good form.
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.
A check register shows a balance of $152.34. The bank statement shows that a check for $75.00 deposited by the account owner was drawn against insufficient funds and was returned. A charge for $2.00 was also deducted by the bank because of the return. Compute the adjusted cash balance of the check register.
Answer:
$150.34
Explanation:
The $75 check has been drawn against insufficient funds and has been returned so this check won't be included in the adjusted cash balance of the check register.
A charge for $2.0 will be deducted from the balance shown by the cash register above to calculate the adjusted cash balance of the check register.
Adjusted cash balance of the check register = $152.34 - $2
Adjusted cash balance of the check register = $150.34
Maria Boyd has been hired by Barnum Hotels to manage staffing for the regional hotel chain. Barnum intends to open two new hotels within the next three years and will have many job positions to fill. Historically, employee turnover is high at Barnum as employees remain with the company for one or two years before quitting. Maria realizes that Barnum needs to make significant changes in its personnel strategy in order to meet the company's goals for the future and improve employee retention rates. All of the following questions are relevant to Mari's decision to fill top positions at the new hotels with internal candidates EXCEPT::_______
a. What are the key managerial positions that are available at the new hotels?
b. What percentage of employers in the service industry use succession planning?
c. What skills, education, and training have been provided to potential candidates?
d. What is the designated procedure for assessing and selecting potential candidates?
Answer:
b. What percentage of employers in the service industry use succession planning?
Explanation:
The answer choice number B would not be relevant for Maria Boyd strategy. Succession planning is related to the passing of ownership of the business. and Maria is not in charge of devising ownership schemes, but in charge of implementing a corporate policy in order to improve employee retetion, and reduce in this way, employee turnover.
Answer:
b. What percentage of employers in the service industry use succession planning
Explanation:
GOT IT RIGHT ON TEST 2020
Maisie Taft started her own consulting firm, Maisie Consulting, on May 1, 2020. The following transactions occurred during the month of May.
May 1 Maisie invested $7,000 cash in the business.
2 Paid $900 for office rent for the month.
3 Purchased $800 of supplies on account.
5 Paid $125 to advertise in the County News.
9 Received $4,000 cash for services performed.
12 Withdrew $1,000 cash for personal use.
15 Performed $6,400 of services on account.
17 Paid $2,500 for employee salaries.
20 Made a partial payment of $600 for the supplies purchased on account on May 3.
23 Received a cash payment of $4,000 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased equipment for $4,200 on account.
30 Paid $275 for utilities.
Questions:
A. Prepare an income statement for the month of May.
B. Prepare a balance sheet at May 31, 2020.
Answer:
A. NET INCOME $6,600
B. TOTAL ASSETS $22,000
TOTAL LIABILITIES AND EQUITY $22,000
Explanation:
A. Preparation of income statement for the month of May.
Maisie Taft INCOME STATEMENT for May 2020
Service Revenue $10,400
($4,000 + $6,400)
Less: Expenses
Rent expense ($900)
Advertising expense ($125)
Salaries expense ($2,500)
Utilities expense ($275)
NET INCOME $6,600
Therefore the Net income on the income statement for the month of May 2020 will be $6,600
B. Preparation of balance sheet at May 31, 2020
Maisie Taft BALANCE SHEET at May 31, 2020
ASSETS:
Cash $14,600
Accounts receivable $2,400
Supplies $800
Equipment $4,200
TOTAL ASSETS $22,000
(14,600+2,400+800+4,200)
LIABILITIES:
Accounts payable $4,400
Notes payable $5,000
Total liabilities $9,400
($4,400+$5,000)
EQUITY:
Owner's equity $7,000
Retained earnings $5,600
($6,600 - $1,000)
Total equity $12,600
($7,000+$5,600)
TOTAL LIABILITIES AND EQUITY $22,000
($9,400 + $12,600)
CASH
May 1 Cash $7,000
2 Paid Office rent ($900)
5 Paid to advertise ($125)
9 Cash Received $4,000
12 Cash Withdrew ($1,000)
17 Paid employee salaries ($2,500)
20 Supplies purchased ($600)
23 Cash payment $4,000
26 Note payable $5,000
30 Utilities ($275)
CASH $14,600
ACCOUNT RECEIVABLES
May 15 $6,400
May 23 ($4,000)
ACCOUNT RECEIVABLES $2,400
ACCOUNT PAYABLE
May 3 $800
May 20 ($600)
May 29 $4,200
ACCOUNT PAYABLE $4,400
Therefore the Total asset on the balance sheet at May 31, 2020 will be $22,000 and the Total liabilities and equity on the balance sheet at May 31, 2020 will be $22,000
A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in year-end accounts payable CONCEPT REVIEW A common way to test accounts payable is to examine the check register after period end and make selections for testing. Items are selected and then examined for detail. A determination is then made to conclude whether the amount should have been a liability as of year-end and, if so, if it was recorded as such
1. When searching for unrecorded liabilities, the auditors consider transactions recorded__________year end.
2. Accounts payable __________can be mailed to vendors from whom substantial purchases have been made.
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider _________.
4. When auditors find unrecorded liabilities, before adjusting they must consider __________.
5 Auditiors need to consider_______ terms for determining ownership and whether a liability should be recorded.
Answer:
1. When searching for unrecorded liabilities, the auditors consider transactions recorded after year end.
Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period.
2. Accounts payable confirmation can be mailed to vendors from whom substantial purchases have been made.
As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation.
3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider ratios.
Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable.
4. When auditors find unrecorded liabilities, before adjusting they must consider materiality.
They must consider if the adjustment is material or significant enough to record.
5 Auditiors need to consider shipping terms terms for determining ownership and whether a liability should be recorded.
Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods.
What is a sum of money that is borrowed and is expected to be paid back with interest?
What aspect does line weight represent? A. angle of a line B. color of a line C. length of a line D. thickness of a line
Answer:
D
Explanation: