High Tech Manufacturing manufactures 256GB SD cards​ (memory cards for mobile​ phones, digital​ cameras, and other​ devices). Price and cost data for a relevant range extending to​ 200,000 units per month are as​ follows:


Sales price per unit: (current monthly sales volume is 120,000 units) $25

Variable costs per unit:
Direct materials 6.60
Direct labor 7.70
Variable manufacturing overhead 2.40
Variable selling and administrative expenses 1.90

Monthly fixed expenses:
Fixed manufacturing overhead 241,900
Fixed selling and administrative expenses 327,900

Required:
a. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin?
b. What would the company's monthly operating income be if the company sold 160,000 units?
c. What would the company's monthly operating income be if the company had sales of
d. What is the breakeven point in units? In sales dollars?
e. How many units would the company have to sell to earn a target monthly profit of $260,100?
f. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10% and fixed costs will increase by S22,500 per month. If these costs increase, how many units will the company have to sell each month to break even?
g. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)?
h. If sales volume increases by 7%, by what percentage will operating income increase?
i. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?

Answers

Answer 1

Answer:

High Tech Manufacturing

a. Contribution margin per unit:

Selling price = $25

Variable cost   $18.60

Contribution   $6.40

Contribution margin percentage:

Contribution/Selling price * 100

= $6.40/$25 * 100

= 25.6%

Total contribution margin:

Sales Revenue ($25 * 120,000) = $3,000,000

Variable cost ($18.60 * 120,000) =  2,232,000

Total Contribution =                        $768,000

b. Monthly operating income if the company sold 160,000 units:

Sales Revenue ($25 * 160,000) =            $4,000,000

Variable cost ($18.60 * 160,000) =             2,976,000

Total Contribution =                                  $1,024,000

Fixed manufacturing overhead $241,900

Fixed selling and administrative

expenses                                    327,900

Total Expenses                                           $569,800

Operating Income                                    $454,200

c. What would the company's monthly operating income be if the company had sales of $4,500,000?

Sales volume = $4,500,000/$25 = 180,000 units

Sales Revenue ($25 * 180,000) =            $4,500,000

Variable cost ($18.60 * 180,000) =             3,348,000

Total Contribution =                                   $1,152,000

Fixed manufacturing overhead $241,900

Fixed selling and administrative

expenses                                    327,900

Total Expenses                                           $569,800

Operating Income                                     $582,200

d. Break-even point in units = Fixed costs/Contribution per unit

= $569,800/$6.4

= 89,031 units

Break-even point in sales dollars = Fixed costs/Contribution margin ratio

= $569,800/25.6%

$2,225,781.25

e. Sales unit to earn a Target profit of $260,100:

= (Fixed Costs + Target profit)/Contribution per unit

= ($569,800 + $260,100)/$6.40

= 129,672 units

f.  If direct labor costs increase by 10% and fixed costs increase by $22,500, units to sell to break even per month:

= $592,300/$5.63

= 105,204 units

g. Current operating leverage factor = Contribution margin / Net operating income

= $768,000/198,200

= 3.87

h. = 27.12%

Sales Revenue ($25 * 128,400) = $3,210,000

Variable cost ($18.60 * 128,400) =  2,388,240

Total Contribution =                          $821,760

Fixed Costs                                      $569,800

Operating income                            $251,960

Increase operating income = $53,760 ($251,960 - $198,200)

Percentage increase = $53,760/198,200 * 100

= 27.12%

i.  Margin of safety as a percentage of sales:

Margin of safety = (Sales Minus Break-even Sales)/Sales * 100

= ($3,000,000 - $2,225,781)/$3,000,000 * 100

= 3.91%

Explanation:

Price and Cost Data and Calculations:

Relevant range = 200,000 units per month

Sales price per unit: (current monthly sales volume is 120,000 units) $25

Variable costs per unit:

Direct materials                                6.60

Direct labor                                       7.70        + 1.1 = $8.47

Variable manufacturing overhead  2.40

Variable Manufacturing Costs    $16.70

Variable selling and administrative expenses 1.90

Total variable costs per unit  $18.60            New = $19.37

Total contribution margin:

Sales Revenue ($25 * 120,000) = $3,000,000

Variable cost ($18.60 * 120,000) =  2,232,000

Total Contribution =                        $768,000

Total fixed costs =                            $569,800

Operating income =                         $198,200

New Contribution = $25 - 19.37 = $5.63

Contribution margin ratio = $5.63/$25 * 100 = 22.52%

Monthly fixed expenses:

Fixed manufacturing overhead $241,900

Fixed selling and administrative expenses 327,900

Total fixed costs = $569,800

New fixed costs = $569,800 + $22,500 = $592,300


Related Questions

A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. Additionally, the hourly fuel expense for running the turbine is $7.50 per hour, and the turbine is expected to operate 3,000 hours each year. The cost of dismantling and disposing of the turbine at the end of its 8-year life is $8,000.

Required:
a. If the MARR is 15% per year, what is the annual equivalent life-cycle cost of the gas turbine?
b. What percent of annual life-cycle cost is related to fuel?

Answers

Answer:

The annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8

The percentage  fuel cost = 63.25%

Explanation:

From the given information:

Let's start with the initial investment cost, which can be expressed by using the formula:

Initial investment cost = Investment cost of turbine + cost including shipping,  insurance, site preparation, fuel lines, and fuel storage tanks.)

Initial investment cost = $40,000 + $14000

Initial investment cost = $54000

However, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year

The annual fuel expense = $7.50 × 3000

The annual fuel expense = $22,500

Therefore, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year

the total operating cost per year = $(450 + 22500)

the total operating cost per year = $22,950

If the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years

Therefore, the annual equivalent life-cycle cost (AC) of the gas turbine can be computed as follows:

AC(15%) = -54000 (A/P, 15%, 8) - $22950-$8000(A/F,15%,8)

where;

(A/P,15%,8) = annual worth factor of a present worth

(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.

If we use the discrete compounding table when i = 15%;

Value of (A/P,15%,8) = 0.229

Value of (A/F,15%,8) = 0.0729

AC(15%) = -$54,000(0.2229) - $22,950 -$8000(0.0729)

AC(15%) = -$12,036.6 -$22950 -$583.2

AC(15%) = -$35,569.8

Therefore, the annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8

b.

The percentage of the annual life-cycle cost related to the fuel can be calculated by using the formula :

[tex]\mathbf{\% \ fuel \ cost = \dfrac{fuel \ cost \ per \ year}{total \ annual \ life \ cycle \ cost }\times 100\%}[/tex]

Replacing our values from above, we have:

[tex]\mathbf{\% \ fuel \ cost = \dfrac{\$22500}{\$35,569.8}\times 100\%}[/tex]

[tex]\mathbf{\% \ fuel \ cost = 0.6325\times 100\%}[/tex]

The percentage  fuel cost = 63.25%

Based on the given information, the annual equivalent life-cycle cost of the gas turbine is "$35,569.80," while the percent of the annual life-cycle cost is related to fuel is "65.87%."

This is based on the calculation below:

Given that: Initial investment cost => Investment cost of turbine + cost including shipping, insurance, site preparation, fuel lines, and fuel storage tanks.

Hence, we have the following:

Initial investment cost = $40,000 + $14,000;

=> Initial investment cost = $54,000.

On the other hand, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year;

Thus, we have the following:

The annual fuel expense = $7.50 × 3,000;

The annual fuel expense = $22,500.

Also, since, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year;

We have the following:

the total operating cost per year = $(450 + 22,500);

the total operating cost per year = $22,950.

Therefore, given that the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years.

Then, the annual equivalent life-cycle cost (AC) of the gas turbine is measured as:

AC (15%) = -54,000 (A/P, 15%, 8) - $22,950 - $8,000 (A/F,15%,8);

Here, we have the following details;

(A/P,15%,8) = annual worth factor of a present worth;

(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.

This, given that we use the discrete compounding table when i = 15%;

We have the following:

Value of (A/P,15%,8) = 0.229;

Value of (A/F,15%,8) = 0.0729.

AC (15%) = -$54,000 (0.2229) - $22,950 -$8,000 (0.0729);

AC(15%) = -$12,036.60 -$22,950 -$583.20;

AC(15%) = -$35,569.80.

Hence, the annual equivalent life-cycle cost (AW) of gas turbine = $35,569.80.

Similarly, the percent of the annual life-cycle cost is related to fuel is measured as = ($35,569.8 ÷ $54,000) × 100

=> 65.87%.

Hence, in this case, it is concluded that the lifecycle cost is essential when measuring the productivity of a project.

Learn more here: https://brainly.com/question/7203876

Recording and Reporting Accrued Liabilities and Deferred Revenue with Discussion of Accrual Versus Cash Accounting
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends December 31.
A. Paid and recorded wages of $140,000 during Year 1; however, at the end of Year 1, three days' wages are unpaid and have not yet been recorded because the weekly payroll will not be paid to employees until January 6 of Year 2. Wages for the three days are $4,900.
B. Collected rent revenue of $4,800 on December 12 of Year 1 for office space that Walnut rented to another company. The rent collected was for 30 days from December 12 of Year 1 to January 10 of Year 2. Record the collection of rent on December 12.
Required:
1. With respect to wages, provide the adjusting entry required at the end of year 1 and the journal entry required on January 6 of year 2.
2. With respect to rent revenue, provide the journal entry for the collection of rent on December 10 and the adjusting entry required on December 31.

Answers

Answer:

Walnut Company

1. Adjusting Journal Entry:

December 31, Year 1:

Debit Wages Expense $4,900

Credit Wages Payable $4,900

To accrue unpaid wages at the end of the year.

General Journal Entry:

January 6, Year 2:

Debit Wages Payable $4,900

Credit Cash Account $4,900

To record the payment of accrued wages.

2. General Journal Entry:

December 12, Year 1:

Debit Cash Account $4,800

Credit Deferred Rent Revenue $4,800

To record the receipt of rent in advance.

Adjusting Journal Entry:

December 31, Year 1:

Debit Deferred Rent Revenue $3,200

Credit Rent Revenue $3,200

To adjust for rent revenue earned for 20 days.

Explanation:

The rent revenue of $4,800 according to the question is for 30 days.  December 12 to December 31 has 20 days while January 1 to January 10 has 10 days.  So the rent revenue for Year 1 is computed as $4,800 * 20/30 = $3,200 while the remaining balance will be for rent revenue in Year 1 ($4,800 * 10/30).

World Company expects to operate at 80% of its productive capacity of 67,500 units per month. At this planned level, the company expects to use 32,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.600 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $68,040 fixed overhead cost and $408,240 variable overhead cost. In the current month, the company incurred $472,000 actual overhead and 29,400 actual labor hours while producing 51,000 units.

Required:
a. Compute the overhead volume variance.
b. Compute the overhead controllable variance.

Answers

Answer:

1. $3,780 Unfavorable

2. $453,600 Overhead controllable variance

Explanation:

Req. 1

Fixed Overhead Applied

Fixed OH per DL hr. ($68,040 ÷ $32,400) = 2.1

Standard DL hours = 0.60 * $51,000 = $30,600

Fixed OH applied = 2.1 * $30,600 = $64,260

Volume variance.

Total fixed OH applied $64,260

Total budgeted fixed OH $68,040

Fixed OH volume variance $3,780 Unfavorable

Req. 2

Overhead controllable variance.

Total actual overhead $ 472,000

Flexible budget overhead

Variable = $408,240 ÷ $32,400 = 12.6

=> $30,600 * 12.6 = $385,560

Fixed. $68,040

Total $453,600 Overhead controllable variance

Which option enables you to keep the last grammatical change?​

Answers

Answer:

Undo Option

Explanation:

The Accept option enables you to keep the last grammatical change in Microsoft Word.

Fortuna Company issued 70,000 shares of $1 par stock, with a fair value of $5 per share, for 80% of the outstanding shares of Acappella Company. The firms had the following separate balance sheets prior to the acquisition:
Assets Fortuna Acappella
Current assets $2,100,000 $ 960,000
Property, plant, and equipment (net) 4,600,000 1,300,000
Goodwill -- 240,000
Total assets $6,700,000 $2,500,000
Liabilities and Stockholders' Equity
Liabilities $3,000,000 $ 800,000
Common stock ($1 par) 800,000
Common stock ($5 par) 200,000
Paid-in capital in excess of par 2,200,000 300,000
Retained earnings 700,000 1,200,000
Total liabilities and equity $6,700,000 $2,500,000
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which has a fair value of $1,400,000. Compute goodwill or gain recognized in the consolidated statements .
Book values equal fair values for the assets and liabilities of Acappella Company, except for the property, plant, and equipment, which have a fair value of $1,600,000.Required:
a. What is the Goodwill/Gain associated with the acquisition:
b. What is the Non-Controlling Interest recorded in the consolidated balance sheet
c. What is the balance of the assets and liabilities side of the consolidated balance sheet after the acquisition:
d.Record the two elimination entries associated with the acquisition of the company

Answers

Answer:

Part 1

$1,730,000 (Gain)

Part 2

a. $1,890,000 (Gain)

b. $560,000

c. Consolidated Assets = $9,850,000 and Consolidated Liabilities = $3,800,000

d.  Journals

Journal 1

Property Plant and Equipment $300,000 (debit)

Revaluation Reserve $300,000 (credit)

Revaluation of Acappella`s Property Plant and Equipment item

Journal 2

Common Stock $1,300,000 (debit)

Retained Earnings $1,200,000 (debit)

Revaluation Reserve $100,000 (debit)

Investment in Subsidiary $350,000 (credit)

Non-Controlling Interest $560,000 (credit)

Gain on Bargain Purchase $1,890,000 (credit)

Main Elimination Journal

Explanation:

Goodwill is the excess of Purchase Consideration over the Net Assets Acquired.

Purchase Consideration  (70,000 shares × $5) = $350,000

Part 1

Calculation of Net Assets Acquired

Retained Earnings                                             $1,200,000

Common Stock                                                  $1,300,000

Revaluation                                                           $100,000

Total Net Assets Acquired                               $2,600,000

Therefore,

Net Assets Attributable to Fortuna Company = $2,600,000 × 80%

                                                                            = $ 2,080,000

Purchase Consideration $350,000 < Net Assets Acquired ($ 2,080,000), therefore we have a gain situation of $1,730,000

Part 2

2a.

Calculation of Net Assets Acquired

Retained Earnings                                             $1,200,000

Common Stock                                                  $1,300,000

Revaluation                                                           $300,000

Total Net Assets Acquired                               $2,800,000

Therefore,

Net Assets Attributable to Fortuna Company = $2,800,000 × 80%

                                                                            = $ 2,240,000

Purchase Consideration $350,000 < Net Assets Acquired ($ 2,240,000), therefore we have a gain situation of $1,890,000

2b.

Calculation of Non - Controlling Interest

Note : I have elected to measure Non-Controlling Interest as proportionate to the fair value of Net Identified Assets Acquired !

Non - Controlling Interest = Non Controlled Interest % × Total Net Assets Acquired  

                                           = 20 % × $2,800,000

                                           = $560,000

2c.

Consolidation is 100 % of Parent/ Acquirer and 100% of subsidiary (Acquired) combined.

Assets :

Fortuna Company = $6,700,000 + $350,000     = $7,050,000

Acappella Company = $2,500,000 + $300,000 = $2,800,000

Total Assets                                                            = $9,850,000

Liabilities :

Fortuna Company                                                  = $3,000,000

Acappella Company                                                = $ 800,000

Total Liabilities                                                        = $3,800,000

2d.

Journal 1

Property Plant and Equipment $300,000 (debit)

Revaluation Reserve $300,000 (credit)

Revaluation of Acappella`s Property Plant and Equipment item

Journal 2

Common Stock $1,300,000 (debit)

Retained Earnings $1,200,000 (debit)

Revaluation Reserve $100,000 (debit)

Investment in Subsidiary $350,000 (credit)

Non-Controlling Interest $560,000 (credit)

Gain on Bargain Purchase $1,890,000 (credit)

which situation best describes the role of businesse in the circular flow of goods

Answers

Answer:

A company makes a new line of kitchen appliances

Explanation:

Just did it

The following is selected information from Bonita Corporation for the fiscal year ending October 31, 2018
Cash received from customers $301000
Revenue recognized 376000
Cash paid for expenses 184000
Cash paid for computers on November 1, 2017 that will be used for 3 years (annual depreciation is $16100) 48300
Expenses incurred, including interest, but excluding any depreciation 218000
Proceeds from a bank loan, part of which was used to pay for the computers 95000
Based on the accrual basis of accounting, what is Monty Corporation’s net income for the year ending October 31, 2018?

Answers

Answer:

Net Income = $141,900

Explanation:

Accrual Basis of Accounting

                 Net income of Monty Corporation’s for the

                       year ending October 31, 2018

       Particulars                                                    Amount

Revenue recognized                                          $376,000

Less: Expenses incurred, including interest,    $218,000

         but excluding any depreciation

          Depreciation                                             $16,100  

Net Income                                                          $141,900

"What is the allowable MACRS depreciation on Evergreen’s property in the current year if Evergreen does not elect out of bonus depreciation?"

Answers

Answer:

the list of assets is missing, so I looked for a similar question and found the following:

MACRS depreciation for machinery is 10 years, and the depreciation % for the first year using the half year convention is 10% ⇒ depreciation expense = $70,000 x 10% = $7,000

MACRS depreciation for computer equipment is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $10,000 x 20% = $2,000

MACRS depreciation for the delivery truck is 5 years, and the depreciation % for the first year using the half year convention is 20% ⇒ depreciation expense = $23,000 x 20% = $4,600

MACRS depreciation for furniture is 7 years, and you can use the mid-quarter convention since furniture represents more than 40% of total assets placed in to service. The depreciation % for the first year, second quarter  using the mid-quarter convention is 17.85% (the half year convention depreciation rate is 14.29%) ⇒ depreciation expense = $150,000 x 17.85% = $26,775

total depreciation expense = $40,375

Robert has set-up a start-up business. You have been appointed as an accountant for his business. Prepare journal entries for the following
transactions
1. On January 1, 2015, Robert invested $50,000 in his business.
2. On January 4, 2015, Robert bought a laptop for $2,800 for business use.
3. On January 20, 2015, Robert received $13,000 for services rendered.
4. On January 23, 2015, Robert paid salaries to his staff for $3,500

Answers

Answer:

On January 1, 2015, Robert invested $50,000 in his business.

Date Account Debit Credit

January 1, 2015 Cash  

                                            50,000

January 1, 2015 Cash  

50,000

On January 4, 2015, Robert bought a laptop for $2,800 for business use.

Date Account Debit Credit

January 4, 2015 Office Computer  

2,800

January 4, 2015 Cash  

2,800

On January 20, 2015, Robert received $13,000 for services rendered.

Date Account Debit Credit

January 20, 2015 Cash  

13,000

January 20, 2015 Revenue  

13,000

On January 23, 2015, Robert paid salaries to his staff for $3,500.

Date Account Debit Credit

January 23, 2015 Salaries  

3,500

January 23, 2015 Cash  

3,500

Explanation:

What precaution should a food handler take when cleaning up vomit

Answers

Explanation:

The following are some precautions a food handler should take:

they should ensure that they are adequately protected by wearing hand gloves.ensure that they properly wash the area affected and the equipment used during the cleaning with detergent (eg bleach).the gloves worn during the cleaning operation should also be properly disinfected with detergents.

You predict that interest rates are about to fall. Which bond will give you the highest capital gain

Answers

Answer: d. Zero coupon, long maturity

Explanation:

It is generally held that when interest rates decrease in the market, the price of bonds will increase because people will seek bonds as they offer a steady rate of return.

A longer maturity bond will enable you to take advantage of this decrease in interest rates over a longer period because you get to discount the bond at a lower rate over a longer period so it is better.

A zero coupon long maturity bond is the best because when it is discounted at this lower rate, it will bring back a higher price than the rest of the bonds

Canadians companies are free to charge whatever prices they wish. True or false

Answers

Answer:true

Explanation:

Terrill Company finds its records are incomplete concerning a piece of machinery used in its plant. According to the company records, the machinery has an estimated useful life of 10 years and an estimated salvage value of $ 24,000. It has recorded $ 12,000 in depreciation each year using the straight-line method. If the accumulated depreciation account shows a balance of $ 72,000, what is the original cost of the machinery and how many years remain to be depreciated?

Answers

Answer:

original cost $144,000: Remaining years 4 years

Explanation:

Depreciation is the process of expensing the value of an asset over its useful life. The straight-line method allocates an equal amount of expense as depreciation in every of the gainful life.

The calculation of depreciation involves first determining the depreciable amounts.

The depreciable amount = asset cost - salvage value. In this case, the salvage value is  $ 24,000, but the asset cost is not given.

Depreciation per year= depreciable amount divided by lifespan

For Terrill company

$12,000 =depreciable amount /10

Depreciable amount = $12,000 x  10

=$120,000

If depreciable amount = asset cost - salvage value, then

$120,000 = asset cost - $24,000

Asset cost = $120,000 + $24,000

Asset cost = $144,000

Accumulated depreciation of $72,000 implies the asset has been depreciated $72,000/$12,000 times

=72,000/12000

= 6 times or six year.

The asset has a lifespan of 10 years; then it has four years remaining(10-6)

Which drawback of being an entrepreneur can disrupt your personal life?

Answers

Stress and responsibilities
Hope this helps!
I hav to give my life to my business if I’m tryna hangout but promised a restock that day I have to restock and u have to respond to demand

Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $94,500 worth of parts from your supplier and the discount is at an annual rate of 10%. How much will you pay for the parts if you pay today

Answers

Answer: $92,275

Explanation:

The amount you will pay today is the present value of the purchase price given a 10% discount for a quarter of a year.

= 94,500/ (1 + 10%) ^ 1/4 year

= 92,274.91147

= $92,275

Your parents are giving you $250 a month for 4 years while you are in college. At an interest rate of .57 percent per month, what are these payments worth to you when you first start college

Answers

Answer:

FV= $13,757.37

Explanation:

Giving the following information:

Monthly payment= $250

Interest rate= 0.0057

Number of periods= 4*12= 48

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly payment

FV= {250*[(1.0057^48) - 1]} / 0.0057

FV= $13,757.37

On December 31, 2017, Wayne Sparks Company had 600,000 shares of common stock issued and outstanding. Sparks issued a 5% stock dividend on June 30, 2018. On September 30, 2018, 20,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2018

Answers

Answer: $625,000

Explanation:

The number of shares to use will be the Weighted average of the number of common shares in the company as at December 2018.

5% stock had been issued so common stock increases to;

= 600,000 * ( 1 + 5%)

= 630,000 shares

The treasury stock is to be deducted from the amount above and was only reacquired on Sept. 30 so the weighted average is;

= 20,000 * 3/12 months

= 5,000 shares

Number of shares = 630,000 - 5,000 = $625,000

Forest Components makes aircraft parts. The following transactions occurred in July. Purchased $16,950 of materials on account. Issued $16,780 in direct materials to the production department. Issued $1,340 of supplies from the materials inventory. Paid for the materials purchased in transaction (1) using cash. Returned $2,020 of the materials issued to production in (2) to the materials inventory. Direct labor employees earned $32,500, which was paid in cash. Purchased miscellaneous items for the manufacturing plant for $17,250 on account. Recognized depreciation on manufacturing plant of $36,700. Applied manufacturing overhead for the month. Forest uses normal costing. It applies overhead on the basis of direct labor costs using an annual, predetermined rate. At the beginning of the year, management estimated that direct labor costs for the year would be $434,600. Estimated overhead for the year was $412,870. The following balances appeared in the inventory accounts of Forest Components for July.
Beginning Ending
Materials Inventory ? $12,490
Work-in-Process Inventory ? 10,560
Finished Goods Inventory $2.700 6.930
Cost of Goods Sold ? 75,1000
a. Prepare Journal Entries to record these transactions (1-9)
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold

Answers

Answer:

Forest Components

Journal Entries:

1. Debit Materials Inventory $16,950

Credit Accounts Payable $16,950

To record the purchase of materials on account.

2. Debit Work in Process Inventory $16,780

Credit Materials Inventory $16,780

To record the issue of materials to the production department.

3. Debit Manufacturing Overhead $1,340

Credit Materials Inventory $1,340

To record the issue of materials to the service department.

4. Debit Accounts Payable $16,950

Credit Cash Account $16,950

To record the payment for the materials purchased on account.

5. Debit Materials Inventory $2,020

Credit Work In Process $2,020

To record the record of materials.

6. Debit Work in Process $32,500

Credit Factory Wages $32,500

To record the direct labor cost.

7. Debit Manufacturing Overhead $17,250

Credit Accounts Payable $17,250

To record the purchase of miscellaneous items for the plant.

8. Debit Manufacturing Overhead $36,700

Credit Depreciation Expense $36,700

To record depreciation expense on manufacturing plant.

9. Debit Work In Process $30,875

Credit Manufacturing Overhead $30,875

To apply overhead for the month.

b. T-accounts:

Materials Inventory

Accounts Titles         Debit    Credit

Balance                    $12,320

Accounts Payable   $14,930

Work in Process         2,020

Work in Process Inventory    $16,780

Balance                                  $12,490

Work-in-Process Inventory

Accounts Titles         Debit    Credit

Balance                    $11,755

Materials Inventory   16,780

Materials Inventory                $2,020

Factory Wages        32,500

Overhead                30,875

Finished Goods Inventory    79,330

Balance                                  10,560

Manufacturing Overhead

Accounts Titles                 Debit    Credit

Materials Inventory         $1,340

Accounts Payable           17,250

Depreciation Expense   36,700

Work In Process                         $30,875

Finished Goods Inventory

Accounts Titles         Debit    Credit

Balance                   $2,700

Work in Process     79,330

Cost of goods sold                75,100

Balance                                 $6,930

Cost of Goods Sold

Accounts Titles         Debit    Credit

Finished Goods      75,100

Explanation:

a) Data and Calculations:

Materials Inventory                 ?         $12,490

Work-in-Process Inventory     ?           10,560

Finished Goods Inventory $2,700       6,930

Cost of Goods Sold                ?         75,1000

Predetermined overhead rate = $412,870/$434,600 = $0.95

Overhead applied = $30,875 ($0.95 * $32,500)

To raise operating funds, Coyne Incorporated sold its office building to an insurance company on January 1, 2021, for $1,600,000 and immediately leased the building back. The operating lease is for 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $1,600,000 and a book value of $1,300,000 (its original cost was $2 million). The rental payments of $200,000 are payable to the insurance company each December 31. The lease has an implicit rate of 9%.

Prepare the appropriate entries for National Distribution Center on January 1, 2018 and December 31, 2018, to record the sale-leaseback and necessary adjustments.

1. Record Sale of Building
2. Record the beginning of the lease for National
3. Record the lease and interest expense for National
4. Record the amortization expense for national

Answers

Answer:

1. 1-Jan-21

Dr Cash $1,600,000

Dr Accumulated Depreciation $700,000

Cr Building $2,100,000

Cr Gain On Sale of Building (BF) $200,000

2. 1-Jan-21

Dr Right Of Use Assets ( 200000* PVAF 9% for 12 year) $1,432,000

Cr Lease Payable $1,432, 000

3. 31-Dec-21

Dr Interest Expense $128,880

Dr Lease Payment (BF) $71,120

Cr Cash $200,000

4. 31-Dec-21

Dr Amortization Expenses $71,120

Cr Right Of Use Assets $71,120

Explanation:

1. Preparation of the Journal entry to Record Sale of Building

1-Jan-21

Dr Cash $1,600,000

Dr Accumulated Depreciation $700,000

(2,000,000-1,300,000)

Cr Building $2,100,000

[(1,600,000+700,000)-200,000]

Cr Gain On Sale of Building (BF) $200,000

(To Record Lease)

2. Preparation of the journal entry to Record the beginning of the lease for National

1-Jan-21

Dr Right Of Use Assets ( 200000* PVAF 9% for 12year)

(200,000*7.16) $1,432,000

Cr Lease Payable $1,432, 000

(To Record The Leae Payable)

3. Preparation of the journal entry to Record the lease and interest expense for National

31-Dec-21

Dr Interest Exp

(1,432,000*9%) $128,880

Dr Lease Payment (BF) $71,120

(200,000-128,880)

Cr Cash $200,000

(To Record First Lease payment)

4. Preparation of the journal entry to Record the amortization expense for national

31-Dec-21

Dr Amortization Expenses $71,120

Cr Right Of Use Assets $71,120

(To Record Amortisation Expense)

The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows:

Blink Division Blur Division Total
Sales $280,000 $168,000 $448,000
Variable costs 98,000 77,000 175,000
Contribution margin $182,000 $91,000 $273,000
Direct fixed costs 84,000 70,000 154,000
Segment margin $98,000 $21,000 $119,000
Allocated common costs 42,000 31,500 73,500
Operating income (loss) $56,000 ($10,500) $45,500

Operating income for Winston Corporation as a whole if the Blur Division were dropped would be:

a. $66,500.
b. $56,000.
c. $45,500.
d, $24,500.

Answers

Answer:

d, $24,500

Explanation:

Computation for the Operating income for Winston Corporation as a whole if the Blur Division were dropped

Operating income (loss) for Blink Division $56,000

Less Allocated common costs Blur Division (31,500)

Operating income for Winston Corporation $24,500

Therefore the Operating income for Winston Corporation as a whole if the Blur Division were dropped would be $24,500

Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account

1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account

Answers

Answer:

1. Supplies - ASSETS

Supplies are assets and are debited when they increase.

2. Notes Payable - LIABILITIES.

Current Liabilities owed to creditors.

3. Service Revenue. REVENUE

Revenue that will go to the income statement.  

4. Dividends. EQUITY.

These are payments to Shareholders and so are Equity.

5. Accounts Payable. LIABILITY.

These are current liabilities and increase by credit.

6. Salaries and Wages Expense. EXPENSE.

These are expenses that will go to the Income Statement

7. Common Stock. EQUITY.

Common Stock is equity as it represents ownership in the company.

8. Accounts Receivable. ASSET.  

Accounts Receivables are current assets and are debited when they increase.

9. Equipment. ASSET.

Equipment are fixed assets and are debited when they increase.

10. Notes Receivable. ASSETS.

Like Receivables these are current assets and are debited when they increase.

The following trial balance of Crane Co. does not balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit Credit
Cash $3,099
Accounts Receivable $3,460
Supplies 1,029
Equipment 4,029
Accounts Payable 2,895
Unearned Service Revenue 1,429
Common Stock 6,229
Retained Earnings 3,229
Service Revenue 2,609
Salaries and Wages Expense 3,629
Office Expense 1,169
Totals $14,745 $18,061
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).
6. A debit posting to Salaries and Wages Expense of $899 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.
Prepare a correct trial balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit
Credit $ $
Totals $ $

Answers

Answer and Explanation:

Cash= 3,099+180-294-294= 2691

Accounts receivable= 3,460-180=3280

Supplies =1,029-729=300

Equipment= 4,029+729=4758

Accounts payable =2,895-206-260= 2429

unearned service revenue=1,429-554= 875

Service revenue= 2,609+801+554 3964

Salaries & wage expense 3,629+899-804= 3724

Find attached

Task C has two immediate predecessors, Tasks A and B. Task C also has two immediate followers, Tasks D and E. Task A has an early finish time of 3 days, and Task B has an early finish time of 5 days. Task D has a late start time of 10 days and Task E has a late start time of 8 days. Task C is 2 days long. What is the early finish time of Task C

Answers

Answer:

7 days

Explanation:

Calculation for the early finish time of Task C

First step is to find the Early Start of task C

Using this formula

Early Start of task C = MAX (Early Finish of task A, Early Finish of task B)

Let plug in the formula

Early Start of task C= MAX(3,5)

Early Start of task C = 5

Now let calculate the Early Finish time of Task C

Using this formula

Earliest Finish = Earliest Start + Activity Duration

Let plug in the formula

Earliest Finish of task C = 5 + 2

Earliest Finish of task C = 7 days

Therefore the early finish time of Task C will be 7 days

The early finish time of task C is the sum of the early start time and the activity duration of the task. Hence, the early finish time of task C is 7 days.

Given the Parameters :

Activity time of task C = 2 days Early finish, Task A = 3 days Early finish, Task B = 5 days

The early finish time of task C :

Early start time possible + Activity time of task C

Maximum value of the finish time of the preceeding task :

Early start time of task C = maximum(3, 5)

Early start time of task C = 5 days

Early finish time of C = 5 days + Activity time

Early finish time of task C = 5 days + 2 days = 7 days

Therefore, the early finish time of task C is 7 days

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Thomas, a senior manager at a manufacturing firm, is coming up with
ideas for a new product. Thomas has made a list of the following tasks that form a part of this project, along with their respective durations.
Create questionnaires to interview potential customers (7 days)
Find existing information about the market from online sources and trade journals (6 days)
Interview the respondents with the help of the questionnaire (10 days)
Design a new product according to the information obtained through the interviews (30 days)
If Thomas conducts a Critical Path Analysis to schedule these activities, what is the most likely duration that the activities will take to be completed?
A. 50 days
B. 40 days
C. 57 days
D. 47 days
E. 67 days

Answers

Answer:

47

Explanation:

The Answer is D, 47.

Answer:

47

Explanation:

Plato/Edmentum

Telecomp is a U.S.-based manufacturer of cellular telephones. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, Poland, or Mexico. The cost of the facility will differ between countries and will even vary within countries depending on the economic and political climate, including monetary exchange rates. The company has estimated the facility cost (in $ millions) in each country under three different future economic/political climates as follows.Economic/Political Climate Country Decline Same Improve South Korea 21.7 19.1 15.2 China 19.0 18.5 17.6 Taiwan 19.2 17.1 14.9 Poland 22.5 16.8 13.8 Mexico 25.0 21.2 12.5 Determine the best decision using the following decision criteria. (Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax.)
a. Maximin
b. Minimax
c. Hurwicz ( 0.40)
d. Equal likelihood

Answers

Answer:

a. Maximin =  19.0

b. Minimax  = 17.6

c. Hurwicz ( 0.40)  = Taiwan

d. Equal likelihood = Taiwan

Explanation:

Remember, we are told to: Note that since the payoff is cost, the maximax criteria becomes minimax and maximin becomes minimax

a) Maximin: Since the payoff is cost, we begin by determining the maximum cost for each alternative and then selecting the one which gives the minimum of these maximums. (minimax)

b) Minimax: Since the payoff is cost, we begin by determining the minimum cost for each alternative and then selecting the one which gives the maximum of these minimums. (maximin).

c) Hurwicz (0.40): In this method, we add and multiply each payoff value by alpha (0.4).

South Korea = 15.2 (0.4) + 21.7 (0.6) = 19.1 ( remember, in $ millions)

China = 17.6 (0.4) + 19.0 (0.6) = 18.44

Taiwan = 14.9 (0.4) + 19.2 (0.6) = 17.48

Poland = 13.8 (0.4) + 22.5 (0.6) = 19.02

Mexico = 12.5 (0.4) + 25.0 (0.6) = 20

From the values above we select the minimum outcome since the company is looking at saving cost. Which is Taiwan; having the lowest cost of $17.48 million.

d) Using the formula [tex]\frac{P_{1} +P_{2}+P_{3}...P_{n} }{n}[/tex] where P = payoffs value, n = number of events.

South Korea =  15.2 + 21.7 + 19.1 /3 = 18.66

China = 17.6 + 19.0 + 18.5 /3 = 18.36

Taiwan = 14.9 + 19.2 +17.1 /3 = 17.06

Poland = 13.8 + 22.5 + 16.8 /3 = 17.7

Mexico = 12.5 + 25.0 + 21.2 /3 = 19.56

Taiwan should be selected since it has the lowest cost of $17.06 million.

A company purchased new furniture at a cost of $26,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3,200. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31

Answers

Answer: Depreciation for 3 months  = $1140.

Explanation:

In straight line method, Depreciation for full year  = (Cost – Salvage value) ÷ useful life

Depreciation for full year = ($26,000 -$3,200 ) ÷ 5

= $(22800÷ 5)

= $ 4,560

Furniture was purchased on September 30, so depreciation will be calculated from October to December(3 months)

Depreciation for 3 months  = Yearly depreciation x ([tex]\dfrac3{12}[/tex])

= $4,560 x (0.25)

= $1140.

Hence, Depreciation for 3 months  = $1140.

Fact Pattern: Dori Castings, a job-order shop, uses a full-absorption, standard-cost system to account for its production costs. The O/H costs are applied on a direct-labor-hour basis.
The amount of fixed factory O/H that Dori will apply to finished production is the:_______.
A. Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour.
B. Actual fixed factory O/H cost per direct labor hour times the standard allowed direct labor hours.
C. Actual direct labor hours times the standard fixed factory O/H rate per direct labor hour.
D. Standard units of output for the actual direct labor hours worked times the standard fixed factory O/H rate per unit of output.

Answers

Answer:

A)Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour.

Explanation:

Production cost are all cost that producer used to produce his/her goods, it could be labor cost , and other expenses.bit can be calculated by dividing the total unit produced by the cost . Or the summation of all cost such direct labor, overhead cost.

Hence, The amount of fixed factory O/H that Dori will apply to finished production is the: ""Standard allowed direct labor hours for the actual units of finished output times the standard fixed factory O/H rate per direct labor hour."" Which is option A

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.
Account Titles Debit Credit
Cash $ 11,200
Accounts Receivable 5,200
Prepaid Rent 2,240
Equipment 20,200
Accumulated Depreciation $ 1,180
Accounts Payable 1,180
Income Tax Payable 0
Common Stock 24,000
Retained Earnings 1,300
Sales Revenue 47,080
Salaries and Wages Expense 24,200
Utilities Expense 11,700
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 74,740 $ 74,740
Other data not yet recorded at December 31:
1. Rent expired during the year, $1,120.
2. Depreciation expense for the year, $1,180.
3. Utilities used and unpaid, $8,200.
4. Income tax expense, $310.
Required:
Indicate the accounting equation effects of each required adjustment. (Enter all amounts as positive values.)

Answers

Answer and Explanation:  

The accounting equation effects of each required adjustment is shown below:-

Transactions    Assets                  

a.                    Prepaid rent - $1,280

b.                   Accumulated  

                     depreciation  - $1,180

c.                    NE

d.                    NE

Transactions =    Liabilities     +                    Stockholders' Equity

a.                       NE                                        Rent expenses -$1,280

b.                       NE                                        Depreciation expenses -$1,180

c.                     Accounts payable + $8,200 Utilities expenses -$8,200

d.                   Income tax payable + $310   Income tax expense -$310

Find an approximate annual dollar-weighted yield received by Abiyote for the three-year period from January 1, 1994 until January 1, 1997 using

Answers

Answer:

The information about Abiyote's investment is missing, so I looked for similar questions:

Abiyote's time weighted rate of return = [(1 + HP₁ )  x (1 + HP₂) x (1 + HP₃)]¹/³ - 1

HP₁ = ($28,212 - $24,500) / $24,500 = 0.1515

HP₂ = ($15,892 - $18,212) / $18,212 = -0.1274

HP₃ = ($30,309 - $23,892) / $23,892 = 0.2686

TWRR = [(1.1515 x 0.8726 x 1.2686)¹/³ - 1 = 0.08426 = 8.43%

You calculate TWRR in the same way as you calculate geometric mean.

According to Joseph​ Schumpeter, what does economic progress depend​ on? A. technological change in the form of new products B. ​competition, especially price competition C. the initial endowment of economic​ resources, such as the amount of labor and capital available D. government protection of competition

Answers

Answer:

A. technological change in the form of new products

Explanation:

Joseph Schumpeter gave his economist theory of creative destruction which was a change-oriented and innovative based approach to enterprise ship was the central point of his work was capitalism. In areas of economic, industrial policy, and management studies.

According to JosephSchumpeter, the economy depends on technological change in the form of new products. Thus, the correct option is (A).

Schumpeterian growth is defined as economic growth that is driven by innovation and guided by the creative destruction process.

Formal economic models that operationalize Schumpeter's concept of creative destruction have been developed.

Joseph Schumpeter emphasizes the importance of the entrepreneur in bringing about change and adding innovative activities to an economy.

Furthermore, Schumpeter sees capitalism as a growing system, with his entrepreneur contributing to it.

Therefore, the correct option is "A".

To know more about Joseph​ Schumpeter, visit:

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