Answer:
Nominal interest rate (n) = 10% = 0.10
Inflation rate (i) = -2% = -0.02
Real interest rate (r) = ?
Application of Fisher's Equation
(I + n) = (1 + r)(1 + i)
(1 + 0.10) = (1 + r)(1 + -0.02)
1.10 = (1 + r)(0.98)
1.10 = 1 + r
0.98
1.1224 = 1 + r
1.1224 - 1 = r
r = 0.1224 = 12.24%
Jimmer's real income will change by 12.24% next year.
Explanation:
In the determination of the rate of change in real income, there is need to apply Fisher's equation. The nominal rate and inflation rate have been given, thus, we will make the real rate the subject of the formula.
Carolyn purchased a new office desk on July 23, 2018, at a cost of $2,474. She did not claim the bonus depreciation deduction. Using the half-year convention, Carolyn may claim 2018 depreciation in the amount of:__________a. $237 b. $339 c. $475 d. $791
Answer:
Depreciation under half-year convention is= 309.25
Explanation:
(Important Note: The information provided in the question are incomplete. In order to calculate depreciation expense using the half year convention we must have useful life of the new office desk and residual value, if any! Therefore we base the solution of this question by using some assumptions.)
Assuming that the useful life of the new office desk is 4 years and has no salvage value, the depreciation would be as follows:
Depreciation expense = $2474÷ 4
Depreciation expense = $618.5
But this is yearly expense and under the half-year convention it's assumed that the new office desk is being used for one-half or it's first year therefore the half year depreciation expense will be calculated and the remaining half of depreciation will be expensed out in the final year of depreciation.
So depreciation under half-year convention is= 618.5× 6÷ 12
depreciation under half-year convention is= 309.25
Let's consider the effects of inflation in an economy composed of only two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans. In 2013, the price of beans was $1, and the price of rice was $3. Suppose that in 2014 the price of beans was $2 and the price of rice was $6. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
b. Now suppose that in 2014 the price of beans was $2 and the price of rice was $4. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
c. Finally, suppose that in 2014 the price of beans was $2 and the price of rice was $1.50. What was inflation? Was Bob better off, worse off, or unaffected by the changes in prices? What about Rita?
d. What matters more to Bob and Rita�the overall inflation rate or the relative price of rice and beans?
Inflation involves the rise in prices for goods or services over time. The relative effects of inflation on Bob and Rita depend on how their production and consumption are affected. More important to their individual economic conditions are the relative prices of beans and rice.
Explanation:The inflation rate is calculated by comparing the price increase of goods or services over a specified time period. To determine how inflation affects Bob and Rita, we should examine the price changes of beans and rice.
Inflation is 100% as price of both beans and rice has doubled. Bob and Rita are worse off as they have to spend more for the same amount of goods.For beans, inflation is 100%, while for rice it's 33%. Since Bob and Rita consume equal amounts of both, the overall effect of inflation depends on how the price changes affect their budgets. If they can't limit their consumption or find alternatives, they're worse off.With the price of beans doubling (100% inflation) and the price of rice decreasing (50% deflation), the impact on Bob and Rita depends on how much of each good they consume and their production. If they maintain equal consumption, Bob is better off since the price for his product has increased. Rita is possibly worse off, unless the reduced cost of beans allows her to increase her rice production without increasing costs.Relative prices tend to matter more than the overall inflation rate for Bob and Rita, as changes in the relative prices of rice and beans directly affect their economic situations. Inflation or deflation alone gives us an average, but individual experiences can vary greatly from the average.
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Final answer:
Inflation affects purchasing power, making goods and services cost more nominally. Bob and Rita, characters in a hypothetical two-person economy, are impacted differently depending on how the prices of beans and rice change relative to their incomes. The relative prices of goods consumed and income adjustments determine their economic well-being more than the overall inflation rate.
Explanation:
Understanding Inflation and Its Impact on Bob and Rita
When assessing the effects of inflation, it is crucial to consider both the nominal price and the real price. Inflation represents the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Consider the hypothetical economy with Bob, a bean farmer, and Rita, a rice farmer.
Scenario Analysis
In 2014, with bean prices at $2 and rice prices at $6, the inflation rate would be 100% for both beans and rice (since their prices doubled from 2013). Bob and Rita would both be worse off if their incomes did not double to compensate for these price increases.With bean prices at $2 and rice prices at $4 in 2014, the inflation rate for beans would still be 100%, but rice would see a lower inflation rate of about 33%. Bob would again be worse off unless his income increased by more than the inflation rate. Rita would be worse off if her income did not increase by at least 66% to match the weighted average inflation of beans and rice.If, in 2014, bean prices were $2 and rice prices were $1.50, inflation for beans would be 100%, but rice would experience deflation of -50%. Bob would be worse off due to the higher prices for his goods unless his income increased accordingly. Rita, on the other hand, might be better off if her income remained stable or increased, as the cost of her primary good, rice, has decreased.For both Bob and Rita, the relative prices of rice and beans and their changes are critical since they consume these goods in equal amounts. Therefore, the specialization and the relative prices matter more than the overall inflation rate to their individual economic statuses.In conclusion, inflation affects individuals based on their consumption patterns and income changes. The overall inflation rate is important, but for Bob and Rita, the relative price changes of beans and rice are more significant.
Suppose the following data describe output in two different years:
Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price
Oranges 15,000 $ 0.20 20,000 $ 0.25
Computers 600 $750.00 700 $ 840.00
Video Games 8,000 $ 0.75 10,000 $ 1.00
Compute nominal GDP in year 2 (Enter as a numeric value e.g. 100000)
Answer:
$603,00
Explanation:
Nominal GDP is the addition of current year prices multipled by quantity produced.
Gross domestic product is the sum of all final goods and services produced in an economy within a given period.
Nominal GDP = ($20,000 × $ 0.25) + (700 × $ 840.00) + (10,000 $ 1.00) = $5,000 + $588,000 + $10,000 = $603,000
I hope my answer helps you
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as a(n):________a. Alternative cost.b. Sunk cost.c. Out-of-pocket cost.d. Differential cost.e. Opportunity cost.
Answer:
The potential benefits lost by taking a specific action when two or more alternative choices are available is known as opportunity cost.
The correct answer is E
Explanation:
Opportunity cost is the potential lost as a result of selecting an alternative where alternative courses of action are involved. It is a relevant cost for decision-making.
Answer:
e. Opportunity cost
Explanation:
This is the perfect definition of opportunity cost.
Businesses mostly find themselves stuck in choosing between two different alternatives, especially when each alternative has a cost consequence. For example, as an employee I am faced with two alternatives, first, I can go on a one week holiday with my friends and chill (which would cost me $1500) but if I do so I would be loosing $200 (as my salary) daily for one week, the total of which would be $1400. If I choose to go with my friends on the holiday anyhow, the total cost of my holiday would not just be $1500 but the opportunity cost of $1400 would also be a part of my holiday cost because it's relevant and is being influenced by my decision.
So I would basically be loosing the potential benefits (salary in this case) if I choose to go on the holiday with my friends.
Alternative cost is the cost comparison of two alternatives aimed at choosing the most economically feasible option.
Sunk cost is cost that is already incurred and/or is committed to be incurred at a later date which can't be influenced by our decision.
Differential cost is the difference between the cost of two options.
Suppose the firm currently employs 500 workers at 40 hours per worker per week and that the following relationship holds. 9,000-15 ME 800 МЕ, MPР, H M MPI 6,000 400 Prove that the firm is not at an equilibrium mix of workers and hours by showing there is a window of opportunity for it to reduce its total cost
If a contractor is producing missiles for the Navy, and the contractor fails to deliver them on time, the Navy has the right to: [Contrast the difference between termination for convenience, termination for default, and termination for cause.]
A. Terminate the contract for default
B. Terminate the contract for convenience
C. Terminate the contract for cause
D. All of the answers are correct
Answer:
The correct answer is letter "A": Terminate the contract for default.
Explanation:
A termination for default takes place when one party on a contract is not able to fulfill the agreement conditions. The party who failed to fulfill the contract obligations can be sued and could be found liable for all the damages caused as a result of the breach of the agreement.
Your firm purchased a warehouse for $335,000 six years ago. Four years ago, repairs were made to the building which cost $60,000. The annual taxes on the property are $20,000. The warehouse has a current book value of $268,000 and a market value of $295,000. The warehouse is totally paid for and solely owned by your firm. If the company decides to assign this warehouse to a new project, what value, if any, should be included in the initial cash flow of the project for this building?
Answer:$295,000
Explanation:
6 years ago, the purchase price of the warehouse was $335,000 and the current warehouse market worth is $295,000 and the book value is $268,000. If the company decides to assign this warehouse to a new project, it should include its current market worth as the initial cash flow for the building because if the company does not use the warehouse for project purposes, the company receives a cash flow of $295,000, market worth as cash flow.
The firm must place a market worth of $295,000 as the initial cash flow for the project.
MacKenzie Company sold $640 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 2.0% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made.The journal entry to record this sale transaction would be:A)Debit Cash of $640 and credit Sales $640.B)Debit Cash of $640 and credit Accounts Receivable $640.C)Debit Accounts Receivable $640 and credit Sales $640.D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640.E)Debit Cash $627.20 and credit Sales $627.20.
Answer:
.D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640
Explanation:
Sales = $640
To recognize this,
Debit Cash $640
Credit Sales $640
Being entries to recognize sale and cash received.
On this sale, the bank deducts 2% of the sales value
Amount deducted = 2% × $640
= $12.80
To recognize this,
Debit Credit Card Expense $12.80
Credit Cash $12.80
Being entries to recognize credit card expense incurred on sale.
As such, the net effect of the two entries
Debit Cash $627.20
Debit Credit Card Expense $12.80
Credit Sales $640
The right option is D)Debit Cash $627.20; debit Credit Card Expense $12.80 and credit Sales $640.
If some sellers exit a competitive market, how will this affect its equillibrium? Using the 3-point drawing tool, show the impact if some sellers enter a competitive market. Label your new curve appropriately. Using the point drawing tool, show the new equilibrium price and quantity. Label this point 'A'. Carefully follow the instructions above and only draw the required objects. According to your graph, when some sellers enter a competitive market, the equilibrium price_________ and the equilibrium quantity________.
Final answer:
When sellers enter a competitive market, the supply increases, causing the equilibrium price to decrease and the equilibrium quantity to increase. The new equilibrium point is indicated on the graph as point 'A'.
Explanation:
When sellers exit a competitive market, the supply curve shifts to the left, indicating a decrease in supply. This leads to a higher equilibrium price and a lower equilibrium quantity, as the point of intersection between supply and demand curves moves upwards along the demand curve. Conversely, when new sellers enter the market, the supply curve shifts to the right, indicating an increase in supply. This results in a lower equilibrium price and a higher equilibrium quantity, and the new intersection point on the graph is labeled as 'A'.
Following this analysis, when some sellers enter a competitive market, the equilibrium price decreases, and the equilibrium quantity increases. This is because the additional sellers cause more of the good to be available at each price, which, in turn, puts downward pressure on the price to the new equilibrium point.
Remember: The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium, and the equilibrium price is the only price where the amount consumers are willing to buy is equal to the amount sellers are willing to sell, known as the equilibrium quantity.
Bryant Co. reports net income of $20,000. For the year, depreciation expense is $7,000 and the company reports a gain of $3,000 from sale of machinery. It also had a $2,000 loss from retirement of notes. Compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
$26,000
Explanation:
Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
The computation of the cash flows from operations is shown below:
Cash flow from Operating activities
Net income $20,000
Adjustments made:
Add: Depreciation expense $7,000
Less: Gain on sale of machinery - $3,000
Add: Loss from the retirement of notes $2,000
Net Cash flow from Operating activities $26,000
Using the indirect method, Bryant Co.'s cash flow from operations is calculated by adjusting the net income with non-cash expenses and non-operating gains and losses. After calculating, the cash flow from operations is $26,000.
Explanation:The indirect method for calculating cash flows from operating activities starts with the net income and then adds or subtracts items to adjust to the cash amount. To compute cash flows from operations for Bryant Co., we start with a net income of $20,000. Then we add back depreciation expense, which is a non-cash expense, for $7,000. We then subtract the gain on the sale of machinery for $3,000 because it's a non-operating activity. Finally, we add back the loss from the retirement of notes because it's a non-cash loss. This gives us a total cash flow from operations of $26,000. Therefore, Bryant Co.'s operating cash flow, using the indirect method, is $26,000.
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Market research indicates that a new product has the potential to make the company an additional $1.6 million, with a standard deviation of $2.5 million. If these estimates were based on a sample of 12 customers from a normally distributed data set, what would be the 95% confidence interval?a. (0.00, 3.69) b. (-0.13, 3.33) c. (-0.49, 3.69) d.(-0.09, 4.10)
Answer:
The 95% confidence interval would be given by (0.011;3.2188)
But on this case the most accurate option seems to be : a. (0.00, 3.69)
Explanation:
Previous concepts
A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".
The margin of error is the range of values below and above the sample statistic in a confidence interval.
Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".
Solution to the problem
The confidence interval for the mean is given by the following formula:
[tex]\bar X \pm t_{\alpha/2}\frac{s}{\sqrt{n}}[/tex] (1)
In order to calculate the critical value [tex]t_{\alpha/2}[/tex] we need to find first the degrees of freedom, given by:
[tex]df=n-1=12-1=11[/tex]
Since the Confidence is 0.95 or 95%, the value of [tex]\alpha=0.05[/tex] and [tex]\alpha/2 =0.025[/tex], and we can use excel, a calculator or a table to find the critical value. The excel command would be: "=-T.INV(0.025,11)".And we see that [tex]t_{\alpha/2}=2.201[/tex]
Now we have everything in order to replace into formula (1):
[tex]1.6-2.201\frac{2.5}{\sqrt{12}}=0.011[/tex]
[tex]1.6+2.201\frac{2.5}{\sqrt{12}}=3.188[/tex]
So on this case the 95% confidence interval would be given by (0.011;3.2188)
But on this case the most accurate option seems to be : a. (0.00, 3.69)
On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $10,700. In payment for the services, Whole Grain Bakery signs a 10% note requiring the payment of the face amount and interest to Terrell & Associates on September 1.
Required:For Terrell & Associates, record the acceptance of the note receivable on March 1 and the cash collection on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Final answer:
Terrell & Associates records the acceptance of a note receivable on March 1 by debiting Notes Receivable and crediting Legal Services Revenue. Upon collection on September 1, they debit Cash and credit Notes Receivable along with Interest Revenue for the principal amount and accrued interest.
Explanation:
On March 1st, Terrell & Associates accepts a note receivable in exchange for legal services provided to Whole Grain Bakery. The journal entry to record the acceptance of the note receivable would be a debit to Notes Receivable for the amount of the legal services provided, $10,700, and a credit to Legal Services Revenue for the same amount:
Debit Notes Receivable: $10,700Credit Legal Services Revenue: $10,700On September 1st, when the note is due, Whole Grain Bakery pays the face value plus interest. Over six months, the 10% annual interest rate accrues $535 on the principal ($10,700 * 10% * 6/12). The journal entry to record the cash collection would include a debit to Cash for the total amount received ($11,235), a credit to Notes Receivable for the principal amount ($10,700), and a credit to Interest Revenue for the interest earned ($535):
Debit Cash: $11,235Credit Notes Receivable: $10,700Credit Interest Revenue: $535On January 1, 2016, Wasson Company purchased a delivery vehicle costing $50,710. The vehicle has an estimated 8-year life and a $4,700 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 107,000 miles. What is the vehicle's book value as of December 31, 2017 assuming Wasson uses the units-of-production depreciation method and the vehicle was driven 10,700 miles during 2016 and 18,700 miles during 2017? (Do not round your intermediate calculations.)
A. $34,508.
B. $38,068.
C. $33,368.
D. $39,208.
Answer:
Book value= $33,008
Explanation:
Giving the following information:
On January 1, 2016:
Purchase cost= $50,710.
Residual value= $4,700
Wasson uses the units-of-production depreciation method.
The vehicle will be driven 107,000 miles.
2016= 10,700 miles
2017= 18,700
First, we need to calculate the depreciation of 2016 and 2017, using the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of miles]*miles
2016= [(50,710 - 4,700)/107,000]*10,700= $4,601
207= 0.43*18,700= $8,401
Book value= depreciable value - accumulated depreciation
Book value= 46,010 - (4,601 + 8,401)= $33,008
Shawna finally made it big in Nashville. She never expected the lack of privacy, criticism and demands that would follow. She finds herself unable to cope. According to Albrecht's nine variables, which one is now outside her comfort zone?
Answer and Explanation:
The factors that are influenced in Shawna's usual range of familiarity as indicated by Albrecht's factors are the lucidity of expected set of responsibilities and assessment criteria, work status and human contact. She's getting analysis that perhaps she was not set up for, which makes the assessment criteria of her business to be flimsy and difficult for her to satisfy inevitably. The status of her activity is too influenced by the analysis and the requests, and the human contact quality that she's having a direct result of her activity is a long way from the ideal in light of her absence of security.
This is a shallow perception as indicated by the verifiable depiction of the issues that Shawna is having, however it's the most precise sentiment as per the factors.
In January 2001, the euro/dollar exchange rate was 1.10, and in January 2002, the euro/dollar exchange rate was 1.120. What happend to the exchange rate during this period?
A. Euro depreciated against the dollar
B. Euro appreciated against the dollar
C. Dollar appreciated against the euro
D. Both B and C
Answer:
B. Euro appreciated against the dollar
Explanation:
Depreciated means a decrease in value. Therefore, option A is incorrect. Since the exchange rate of Euro increases, the dollar cannot be appreciated at the same time. So, C cannot be the answer. If "C" is incorrect, both "B" and "C"; it means "D" is incorrect.
Hence, option "B" is correct because the foreign exchange rate of Euro increases relative to the exchange rate of the dollar in 2002. If there is an increase of a currency relative to others, the increased currency is said to be appreciated.
Pearson Collections (PC) sells one-pound cans of coffee for $25 each. The variable cost to produce each can is $17.50, and fixed operating costs are $1,500. PC normally sells 30,000 pounds of coffee each year, has an interest expense equal to $300, and its marginal tax rate is 40 percent. Given this information, what is PC’s operating breakeven point?
Answer:
200 cans
Explanation:
Given that,
Selling price per can = $25
Variable cost = $17.50 each can
Fixed operating costs = $1,500
Marginal tax rate = 40 percent
Profit per unit = Selling price - Variable cost
= $25 - $17.50
= $7.50
PC’s operating break-even point:
= Fixed cost ÷ Profit per unit
= $1,500 ÷ $7.50
= 200 cans
Final answer:
Pearson Collections' operating breakeven point is reached when 200 one-pound cans of coffee are sold, which is calculated by dividing the total fixed costs by the difference between the price per unit and the variable cost per unit.
Explanation:
To calculate Pearson Collections' (PC) operating breakeven point, we need to find the level of output at which the company's total revenues equal its total fixed and variable costs, without considering interest expense or taxes, since operating breakeven focuses on operations alone. The formula for the operating breakeven in units is given by total fixed costs divided by the price per unit minus the variable cost per unit. In this case, the price per unit is $25, and the variable cost per unit is $17.50.
The calculation for PC's breakeven point would be:
Operating Breakeven Point in Units = Total Fixed Costs / (Price per Unit - Variable Cost per Unit)
Operating Breakeven Point in Units = $1,500 / ($25 - $17.50) = $1,500 / $7.50 = 200 Units
Therefore, PC needs to sell 200 one-pound cans of coffee to reach its operating breakeven point.
Megan Johnson owns a kitchen and bathroom cabinet company. Her market research is telling her that she is taking business away from the large home improvement stores in her trade area. One thing that Megan is worried about is that the large stores might fight back by lowering their prices, which hurts everyone except the consumer. The day-to-day challenge of firm growth that this example is referring to is _______
Answer: Price war
Explanation:
Price war is a market strategy in which a firm lowers it's price in comparison to the prices of other seller's in the market in order to gain absolute control of the Consumers patronage.
Price war it's more prevalent in a market where the sellers sell differentiated products either through branding or qualities.
The firm also employed advertising to drag home the superiority of their products and cheap prices.
Single linkage is a measure of calculating dissimilarity between clusters by
a. considering the distance between the cluster centroids.
b. considering only the two most similar observations in the two clusters.
c. computing the average dissimilarity between every pair of observations between the two clusters.
d. considering only the two most dissimilar observations in the two clusters
Answer:
Single linkage is a measure of calculating dissimilarity between clusters by
b. considering only the two most similar observations in the two clusters.
Explanation:
Single Linkage:
It is a type of hierarchical clustering which is used to measure the dissimilarity between clusters by considering the only two observations that are closest in the clusters.
So, according to above point the option b is correct.The option a is not correct as we don't consider the distance between the cluster centroids.The option c is not correct as computing the average dissimilarity between every pair of observations between the two clusters is not done rather we consider the two closest similar observations in the cluster so that's why the option d is also incorrect.Final answer:
Single linkage measures dissimilarity between clusters by considering the distance between the two most similar observations in the two clusters.
Explanation:
Single linkage is a measure of calculating dissimilarity between clusters by b. considering only the two most similar observations in the two clusters. This method involves identifying the closest (or most similar) pair of observations where one member of the pair is from each cluster and calculating the distance between this pair as the measure of dissimilarity between the two clusters.
This approach is different from other clustering measures such as the centroid method (which considers the distance between cluster centroids) or the complete linkage method (which considers the distance between the most dissimilar observations in clusters). Single linkage can lead to a chaining effect where clusters may be joined together due to single close pairs, even though the remaining elements in the clusters may be far from each other.
There isn’t a definitive relationship – more inventory could mean a lower or a higher in-stock probability What is the relationship between the average inventory and the in-stock probability?
a. The more inventory the lower the in-stock probability
b. There isn’t a definitive relationship – more inventory could mean a lower or a higher in-stock probability
c. The more inventory the higher the in-stock probability
Answer:
The correct answer is letter "C": The more inventory the higher the in-stock probability.
Explanation:
If a company inventory increases it implies it has bought more than what it has sold. When inventory increases the company can meet more demand, increasing the likelihood of satisfying all customers. Though, if the demand does not increase, the excess in supply could be reflected as negative in the balance sheet.
Worthington Chandler Company purchased equipment for $12,000. Sales tax on the purchase was $800.
Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225.
What is the cost of the equipment?
a. $12,000
b. $12,800
c. $13,225
d. $13,575
Answer:
d. $13,575
Explanation:
The entirety of the costs incurred during the purchase of the asset, that are used to make it functional are generally capitalized. This involves the freight expense paid to bring the asset to the premises of operation, the installation costs and all other costs that are paid for the asset to be functional and hence a total of $13,575 are capitalized in this case.
Total cost of equipment = 12,000 + 800 + 200 + 350 + 225 = $13,575
Hope that helps.
Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8,700, direct labor of $3,800, and applied overhead of $3,230. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on account) for $23,500, Job 121 is started and completed, and Job 122 is started and still in process at the end of the month. Custom Cabinetry incurs the following costs during July. July Product Costs Job 120 Job 121 Job 122 Total Direct materials $ 2,100 $ 6,400 $ 3,400 $ 11,900 Direct labor 2,300 4,200 2,300 8,800 Overhead applied ? ? ? ?
1. Prepare journal entries for the following in July.
2. Direct materials used in production.
3. Direct labor used in production.
4. Overhead applied. The sale of Job 120.
e. Cost of goods sold for Job 120. 2.
Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory general ledger accounts. (Assume there are no jobs in Finished Goods Inventory as of June 30.)
Answer and Explanation:
Cost Schedule:
Product Costs Job 120 Job 121 Job 122 Total
Beginning WIP 15700 15700
Direct Materials 2100 6400 3400 11900
Direct Labor 2300 4200 2300 8800
Overhead 85% 1955 3570 1955 7480
of Direct Labor
Total 22055 14170 7655 43880
Jounral Entries
Work in Process Inventory 11900
Raw Materials Inventory 11900
To record materials in inventory
Work in Process Inventory 8800
Wages Payable 8800
To record Labor cost
Work in Process Inventory 7480
Applied Factory Overhead 7480
To record applied FOH
Accounts Receivable 23,500
Sales Revenue 23,500
To record Job sold on account
Cost of Goods Sold (Job 120) 22055
Finished goods 22055
To record cost of goods sold
Ending Work in Process account = 7655
Ending Finished Good account = 14170
Who is responsible for announcing StartEx and EndEx during an operations-based exercise?
Answer:
The senior controller is responsible for announcing StartEx and EndEx during an operations-based exercise.
Final answer:
The Exercise Director is usually responsible for announcing StartEx (start of the exercise) and EndEx (end of the exercise) in operations-based exercises. These announcements mark the official beginning and end of the scenario for the participants.
Explanation:
The individual responsible for announcing StartEx and EndEx during an operations-based exercise is typically the Exercise Director or the person in charge of the exercise control. StartEx marks the beginning of the exercise scenario, signaling to all participants that the exercise has commenced. EndEx is the announcement that signifies the end of the exercise, indicating to participants that the scenario has concluded and the operations should cease. It is very important for the smooth execution of the exercise that these announcements are clearly communicated to ensure that all participants are aware of the start and end times, allowing for accurate evaluation and feedback.
Fill in the blanks to complete the passage about the law of one price. Drag word(s) below to fill in the blank(s) in the passage. must According to the law of one price, identical goods sold sell for the same price, except for costs associated with Those costs reflect and the cost of shipping. According to the law of one price, if the price of a good in one location does not match the price of the same good in a different location, sellers will increase until prices in both locations are equal supply in the location where the good is in different locations less expensive at different times trade barriers production movement between locations currency exchange more expensive
Answer:
Consider the following explanation.
Explanation:
According to the law of one price, identical goods
sold IN DIFFERENT LOCATIONS must sell for the same
price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.
Those costs reflect TRADE BARRIERS and the cost of shipping.
According to the law of one price, if the price of a good
in one location does not match the price of the same good in
a different location, sellers will increase supply
in the location where the good is MORE EXPENSIVE
until prices in both locations are equal.
Interview Example:
• Client is a leading food company that wants to develop a fresh prepared meal business
• Trend among consumers is toward fresher food with no artificial preservatives or coloring
• Consumers are currently purchasing $5 0 billion of frozen meals—trendis toward more upscale products
• A fresh meal plate combining a protein, vegetable and starch is delicately arranged in a sealed plastic dome package
• Nitrogen gas flushing is used to extend shelf life
• Product is currently in limited consumer test at $5 50 to $850 per meal
• Shelf life of product is 14 days— product will spoil in 21 dayspotentially causing food poisoning
• Client wants to know if they can make money in this business
• Client wants to know if the market is big—
how will they keep competition out?
The client's goal to enter the fresh prepared meal market must address profitability, market saturation, consumer safety, and shelf life. Packaging and processing play a pivotal role in extending shelf life while maintaining food quality. The competitive landscape and consumer expectations present significant challenges to new market entrants.
The client, a leading food company, seeks advice on entering the fresh prepared meal market, given the consumer trend towards fresher food without artificial preservatives or coloring. They are testing nitrogen gas-flushed, sealed meals with a shelf life of 14 days and a $5.50 to $8.50 price range.
The business analysis must consider the profitability and competitiveness of this endeavor in an industry leaning towards upscale products. It is critical to ensure safety and shelf life via proper packaging and storage, balancing between preserving food quality and maintaining its marketability. Overcoming extensive market saturation is a considerable challenge that requires prioritizing customer satisfaction and product safety to ensure a viable business venture in the food industry.
The prepared food must remain safe, with concerns generally stemming from microbial contamination and the necessity for vigilant processing and packaging, such as using barrier films or active components to extend the product's shelf life. Consumer expectations dictate ready food availability, with increasing concerns over the health and sustainability implications of current food supply practices.
The success of a new product involves long-term development and overcoming regulatory and market hurdles, especially in the saturated food industry landscape characterized by established chains and vending machines.
Gavin tells Rod that he will pay him $400 to paint his house. Rod starts to paint, intending to accept. Halfway through his paint job, Gavin tells Rod that he wants to revoke the offer. Under this scenario:Select one:a. Gavin is not allowed to revoke because the contract is unilateralb. Gavin is allowed to revoke, but is liable to Rod for the reasonable value of painting half the house c. Gavin may not revoke because the contract is bilaterald. d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
Answer:
d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
Explanation:
Either he accepts, or he does not accept the offer. Even if he started to paint without accepting the offer, and Gavin does not like his work, the offer can be revoked.
So the correct answer is:
d. Gavin is allowed to revoke if he finds Rod's efforts half-hearted
Firms from which country lead the way in "direct foreign investment" in the United States?A. JapanB. IndiaC. ChinaD. United Kingdom
Answer:
D. United Kingdom.
Explanation:
Direct Foreign Investment are long-term investments (usually not related with stock exchange market). The UK accounted for the 15.2% of total foreign direct investments in USA in 2017. This was the higher share per country that year followed by Japan 11.8%, Germany 10.1% and Ireland 8.1%
Which of the following is a cognitive strategy protecting goal value and promoting self-control?
(A) Decreasing the value of temptations
(B) Both decreasing the value of temptations and increasing the value of goal-consistent stimuli
(C) None of the answers provided are correct
(D) Increasing the value of goal-consistent stimuli
Answer:
The correct answer is (B)
Explanation:
Self-control and goal value both are important to achieve motivation and satisfaction at work. According to cognitive strategy goal, value and promoting self-control helps to decrease the value of temptation, and it helps to increase the value of consistent goal stimuli. It helps to stay focus to achieve goals and objectives. Similarly, if a person is dedicated and build self-control he/she will resist temptation.
Legal responsibility for someone else’s use of your possessions or someone else’s activity for which you are responsible is called __________.
a. negligence.
b. strict liability.
c. vicarious liability.
d. property risk.
e. pure risk
Answer:
The correct answer is letter "C": vicarious liability.
Explanation:
Vicarious liability may apply when a party is found responsible because of the acts of a third party and the first party is not able to take care of the responsibility. The party found responsible and the party responsible for the actions share responsibility in the acts.
A manufacturer of industrial sales has production capacity of 1,000 units per day. Currently, the firm sells production capacity for $10 per unit. At this price, all production capacity gets booked about one week in advance. A group of customers have said that they would be willing to pay $15 per unit if capacity was available on the last day. About ten days in advance, demand for the high-price segment is normally distributed with a mean of 250 and a standard deviation of 100. How much production capacity should the manufacturer reserve for the last day
Answer:
The production capacity the manufacturer should reserve for the last day = 206.00 units.
Explanation:
Normal production = 1000 X $ 10
Normal production = $ 10,000
Spot production = 1,000 X $ 15
Spot production = $ 15,000
p* = 15,000 - 10,000 / 15,000
p* = 0.33
Q = norminv(0.33,250,100)
The production capacity the manufacturer should reserve for the last day = 206.00 units
What internet business model would be appropriate for a company to follow in creating a website & why? The company is a hair salon. In what ways can the business beneft from a website? What functions should it perform for the company (e.g., marketing sales, customer support etc), In what other ways might the company use the internet for its own business? Prepare functional specification for the company's use of the Web and the internet. Include links to and from other sites in your design.
Answer:
The E-commerce business model
Explanation:
The E-commerce internet business model is the appropriate business model to follow for a company that is into hair salon.
Why?
Considering the type and nature of the business, the hair salon will probably be in the sales of fashion hair and making of hair. To achieve maximum sales and to be able to reach maximum potential client, an e-commerce website should be developed for the hair salon.
Function
This will allow the salon be able to make sales online, improve and have the ability to adopt different marketing strategy for the benefit of reaching a wider audience. Since the website is a technology that is internet based, customer feed back and customer support can be easily integrated and achieved on the website.
Other way the company can use the website and the internet is the ability to allow client book available time to walk into the salon to make their hair without waiting for so long. Additionally, the internet can be used for research purposes to acquire knowledge for the development of the company.