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Transactions Units AmountInventory, January 1 600 $1800Purchase, January 12 580 2900Purchase, January 26 180 1260 Sale (460)Sale (460)Required:a. Compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. Assume that the company uses periodic inventory system. b. Prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (c) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase Assume that the company uses periodic inventory system.
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Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. (a) Indicate the missing amount for each letter. Case 1 2 Direct materials used $9,760 $ (g) Direct labor 5,680 8,810 Manufacturing overhead 8,480 4,620 Total manufacturing costs (a) 16,570 Beginning work in process inventory 1,460 (h) Ending work in process inventory (b) 3,590 Sales revenue 25,330 (i) Sales discounts 2,790 2,010 Cost of goods manufactured 17,530 22,960 Beginning finished goods inventory (c) 3,660 Goods available for sale 22,290 (j) Cost of goods sold (d) (k) Ending finished goods inventory 3,650 3,250 Gross profit (e) 7,430 Operating expenses 3,290 (l) Net income (f) 5,300 Attempts: 0 of 2 ub) Prepare a condensed cost of goods manaufactures schdule ffor Case1c1) Prepare an Income statement for Case 1c2) Prepare the current assets section of the balance sheet for Case1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600 and Prepaid Expenses $400.
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Competition is serious business and sometimes fierce. The stakes are high. Unless the firm has a monopoly, pricing is one area that may be intensely competitive, and not all competition is fair or legal.When considering pricing strategy, the international business manager must be aware of the strategies of other firms when setting the firm's own strategy. Some pricing strategies of others may violate antidumping rules and other regulations. As managers set prices under the strategy, they must be aware of many different dynamics.Pricing is an important part of the marketing mix. Firms must look at charging different prices in different markets, pricing as a competitive weapon, and the regulatory factors including government control and anti-dumping regulations. All will affect the design and implementation of pricing strategy.Determine if it is a consideration of price discrimination, strategic pricing, or regulatory influence. Then, drag the item to the appropriate category on the chart.
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When dealing with credit cards, it is important to know your cards _______________.
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Mackay gives a list of items (starting with "Two lasts of wheat, 448 florins") that were traded for one tulip root. He could have left out this list and simply said that the root cost 2500 florins. What is the purpose of the list?
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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it has an estimated market value of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciation amount in the third year and book value at the end of the fifth year of life using SL method and 200% DB method with switchover to SL. Which method should the company use
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You have been offered an investment that will pay you $10,000 in 10 years. You think a 7% annual rate compounded annually is an appropriate rate of return or interest rate for this investment. What is the most you would be willing to pay for this investment today based on this information
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At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented. Calculate the absolute value of the price elasticity of demand for canoe rentals, using the midpoint formula. Group of answer choices
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Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $18,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 1,450 Outstanding checks 837 Additionally, a $29 check written and recorded by the company correctly was recorded by the bank as a $92 deduction. The adjusted cash balance per the bank records should be:
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Net income reported under absorption costing will exceed net income reported under direct costing for a given period if: Group of answer choices a. Production equals sales for that period. b. Production exceeds sales for that period. c. Sales exceed production for that period. d. The variable overhead exceeds the fixed overhead.
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An entrepreneur is investigating starting a company that provides tax advice to small companies. In order to position his company differently from the existing competitors, the entrepreneur must:
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The following information is available for Elliot Company. January 1, 2013 2013 December 31, 2013 Raw materials inventory $26,000 $30,000 Work in process inventory 13,500 22,200 Finished goods inventory 30,000 21,000 Materials purchased $170,000 Direct labor 220,000 Manufacturing overhead 180,000 Sales 800,00Required:Compute cost of goods manufactured $____________________
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Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5%. He currently has $105,000 saved, and he expects to earn 8% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?
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Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: A. Purchased $68,500 of materials. B. Used $52,700 of direct materials in production. C. Incurred $78,800 of direct labor wages. D. Incurred $111,000 of factory overhead. E. Transferred $184,300 of work in process to finished goods. F. Sold goods for $329,500. G. Sold goods with a cost of $146,600. H. Incurred $84,300 of selling expense. I. Incurred $37,000 of administrative expense. Using the information given, complete the following: A. Prepare the January income statement for Sorensen Manufacturing Company.B. Determine the inventory balances at the end of the first month of operations.
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ShadyPalms Hotel has 100 rooms. During the month of February, it had 500 guests, each staying 5 nights. The occupancy rate for ShadyPalms Hotel for the month of February (not a leap year) was closest to a.80% b.90% c.120% d.70%
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A gasoline station very near a professional football stadium parks car to make money on game days. Last year it charged $4.00 per car and parked 1,000 cars. This year it raised the parking price to$ 6.00 and parked 800 cars. Calculate the total revenue. Did the station owner make a good economic decision in raising the parking prices from one year to the next? Explain
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1. Set up the calculation to arrive at the market value of a new bond having a face amount of $1,000, annual interest rate of 7% payable semiannually, callable at the end of five years (call price of 106) and 25 years remaining maturity at a 6% yield to call. (Do not use a calculator. Show the appropriate equation and data substitution.) At this yield will the bond trade at par, a discount or a premium
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Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohnos monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,500 Insurance on factory building 1,780 Raw materials (plastics, polystyrene, etc.) 80,800 Utility costs for factory 920 Supplies for general office 320 Wages for assembly line workers 59,700 Depreciation on office equipment 830 Miscellaneous materials (glue, thread, etc.) 1,470 Factory managers salary 6,200 Property taxes on factory building 420 Advertising for helmets 14,900 Sales commissions 10,900 Depreciation on factory building 1,640 Prepare an answer sheet with the following column headings. Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Rent on factory equipment $ $ $ $ Insurance on factory building Raw materials Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials Factory managers salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building $ $ $ $ Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
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Making journal entries Assume that during the month of April the production report of Austin Adhesives, Inc., in E8-10 revealed the following information:_______. Units produced during the month . . . .......................... 21,000 Direct labor hours for the month . . . . . . . . . . . . . . . . . .41,000 Materials purchased (in pounds) . . . . . ..................... 130,000 Materials used (in pounds) ........................................ 125,000 Labor rate per hour ..................................................... $10.04 Materials cost per pound . . . . . . . . . ........................... $ 1.98 Make journal entries to charge materials (use the materials purchase price variance) and labor to Work in Process. (Remember to retrieve the standard costs)
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An electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit, the plant would be legal; but it would cause some air pollution. The company could spend an additional $40 million at Year 0 to mitigate the environmental Problem, but it would not be required to do so. The plant without mitigation would cost $209.71 million, and the expected cash inflows would be $70 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $75.84 million. Unemployment in the area where the plant would be built is high, and the plant would provide about 350 good jobs. The risk adjusted WACC is 17%.a) Calculate the NPV and IRR with and without mitigation.b) How should the environment effects be dealt with when evaluating this project?c) Should this project be undertaken? If so, should the firm do the mitigation?
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Emily is considering purchasing a new home for $400,000. She intends to put 20% down and finance $320,000, but is unsure which financing option to select. Emily is considering the following options: o Option 1: Fixed rate mortgage over 30 years at 8% interest, zero points, or o Option 2: Fixed rate mortgage over 30 years at 4% interest, plus two discount points. How long would her financial planner recommend that she live in the house to break even using Option 2 presuming she is not financing the points
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Larned Corporation recorded the following transactions for the just completed month. $72,000 in raw materials were purchased on account. $70,000 in raw materials were used in production. Of this amount, $62,000 was for direct materials and the remainder was for indirect materials. Total labor wages of $106,000 were paid in cash. Of this amount, $102,200 was for direct labor and the remainder was for indirect labor. Depreciation of $193,000 was incurred on factory equipment.Required:Record the above transactions in journal entries.
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Which of the following statements are true regarding dividends?a. Stock dividends are sometimes referred to as capitalizing retained earnings. b. A stock dividend commonly indicates management's confidence that the company is doing well. c. All stock dividends (large and small) are recorded at the market value of the stock price as of date of declaration. d. A stock dividend increases the number of outstanding shares.
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A firm has sales of $10,000, EBIT of $3,000, depreciation of $400, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there were no increases in net operating working capital, what is the firm's free cash flow
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