Master Business with Fun Quizzes & Brain Teasers!

Merchandise inventory includes: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) a) costs to purchase checked b) costs to sell unanswered shipping c) costs checked costs to prepare for sale checked d) cost of goods sold
2 Answers
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $325,000, and its year-end receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late? Base your answer on this equation: DSO - Credit Period = Days early or late, and use a 365-day year when calculating the DSO. A positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91
1 Answer
Flexible budgeting is a reporting system wherein the: Group of answer choices a. Statements included in the budget report vary from period to period. b. Budget standards may be adjusted at will. c. Reporting dates vary according to the levels of activity reported upon. d. Planned level of activity is adjusted to the actual level of activity before the budget comparison report is prepared.
1 Answer
Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend yield of 7.50% and a par value of $60. If the market value for the preferred stock is $70, what is the required return on this preferred stock?
2 Answers
Suppose the opportunity cost of capital is 10 percent and you have just won a $1 million lottery that entitles you to $100,000 at the end of each of the next ten years. Alternatively, you can accept an immediate cash payment of $600,000. Ignoring the tax implications, which option is better and by how much?
1 Answer
Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesas total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor.
1 Answer
Read the Leading Innovation and Change: Best Practices Case Study and answer the following in the Lesson Forum: What elements of Kotter's Eight Stages of Leading Change were used by the company in this Case Study
1 Answer
If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10%. What would be my annual payment? Answer: $6,456.72 Answer: $9,376.24 Answer: $9,712.72 Answer: $12,345.67
1 Answer
Crisp Cookware's common stock is expected t opay a dividend of $1.50 a share at the end of this year; its beta is 0.6. The risk free rate is 5.6% and the market risk premium is 4%. The dividend is expected to grow at some constant rate and the stock currently sells for $50 a share. Asuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years
1 Answer
Ginny currently earns a (real or nominal) wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of sparkling water is $2.50 per gallon; in this case, Ginny (real or nominal) wage, in terms of the amount of sparkling water she can buy with her paycheck, is gallons of sparkling water per hour. When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a (real or nominal) wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's (real or nominal) wage is than both the worker and employer expected when they agreed to the wage. Ginny and her employer both expected inflation to be 4% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.48 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 5%, not 4%. For example, suppose the price of apple juice rose from $2.00 per gallon to $2.10 per gallon. This means that between 2012 and 2013, Ginny's nominal wage by___________ % , and her real wage by approximately____________ .
1 Answer
g Other things the same, an increase in the price level causes the interest rate to a. increase, the dollar to depreciate, and net exports to increase. b. increase, the dollar to appreciate, and net exports to decrease. c. decrease, the dollar to depreciate, and net exports to increase. d. decrease, the dollar to appreciate, and net exports to decrease.
1 Answer
You own a portfolio that is 28 percent invested in Stock X, 43 percent in Stock Y, and 29 percent in Stock Z. The expected returns on these three stocks are 9 percent, 12 percent, and 14 percent, respectively. What is the expected return on the portfolio
1 Answer
The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause __________ to fail and spread to the rest of the financial system.
1 Answer
Flint Company buys merchandise on account from Windsor, Inc.. The selling price of the goods is $1,050, and the cost of the goods is $660. Both companies use perpetual inventory systems. Required:Journalize the transaction on the books of both companies.
1 Answer
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes bird cages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $95,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: Raw materials $10,400Work in process $4,700 Finished goods $8,200During the year, the following transactions were completed:Raw materials purchased for cash, $ 167,000.Raw materials used in production, $143,000 (materials costing $129,000 were charged directly to jobs; the remaining materials were indirect).Cash paid to employees as follows:Direct labor $151,000Indirect labor $241,600Sales commissions $28,000Administrative salaries $43,000Cash paid for rent during the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling and administrative activities).Cash paid for utility costs in the factory, $18,000.Cash paid for advertising, $14,000.Depreciation recorded on equipment, $22,000. ($16,000 of this amount related to equipment used in factory operations; the remaining $6,000 related to equipment used in selling and administrative activities.)Manufacturing overhead cost was applied to jobs, $_________.Goods that had cost $227,000 to manufacture according to their job cost sheets were completed.Sales for the year (all paid in cash) totaled $507,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.Required:a. Prepare journal entries to record the transactions for the year.b. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (dont forget to enter the beginning balances in your inventory accounts).c. Is Manufacturing Overhead underapplied or overapplied for the year?d. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.e. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.
1 Answer
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 34,200 units. Per Unit Total Direct materials $15 Direct labor $5 Variable manufacturing overhead $11 Fixed manufacturing overhead $478,800 Variable selling and administrative expenses $5 Fixed selling and administrative expenses $171,000 The company uses a 40% markup percentage on total cost.Compute the total cost per unit.Total cost per unit $____________________
1 Answer
For 2018, Rest-Well Bedding uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $6.00 per unit. The selling price of the product is $21.00. The estimated manufacturing overhead costs are $275,000 and estimated 40,000 machine hours. The actual manufacturing overhead costs are $350,000 and actual machine hours are 50,000. Using job costing, the 2018 actual indirect-cost rate is ________.
1 Answer
The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: Jan. 1 Inventory $ 360,000 Jan. 1 to Dec. 31 Purchases (net) 2,870,000 Sales 4,470,000 Estimated gross profit rate 30% A. Estimate the cost of the inventory destroyed. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. B. In which situations would the gross profit method be useful
1 Answer
If a gain of $221000 is realized in the cash sale of a building having a book value of $882000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
1 Answer
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price$180,000 $140,000 $120,000 $60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10% 10% 10% 10% In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at:
1 Answer
Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as follows: ACME Wayne ($ in millions) Corporation Enterprises Current assets: Cash and cash equivalents $ 407 $ 165 Current investments 6 463 Net receivables 706 86 Inventory 10,653 7,409 Other current assets 1,215 135 Total current assets $ 12,987 $ 8,258 Current liabilities: Current debt $ 7,421 $ 4,229 Accounts payable 1,687 941 Other current liabilities 1,193 2,375 Total current liabilities $ 10,301 $ 7,545 Required: 1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.) 1-b. Which company has the better ratio
2 Answers
Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What amount will Andrew debit to Work in Process Inventory for the month of March
1 Answer
You purchased Butterfly Wing Corp. stock exactly one year ago at a price of $77.66 per share. Over the past year, the stock paid dividends of $2.92 per share. Today, you sold your stock and earned a total return of 15.84 percent. What was the price at which you sold the stock
1 Answer
Torch Industries can issue perpetual preferred stock at a price of $58.50 a share. The stock would pay a constant annual dividend of $7.00 a share. What is the company's cost of preferred stock, rp
1 Answer