Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured. Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31
Allen Company Statement of Cost of Goods ManufacturedFor the Year Ended December 31
Prepare a statement of cost of goods manufactured.
Allen Company
Statement of Cost of Goods Manufactured
For the Year Ended December 31
Beginning work in process inventory
Direct materials
Direct labor
Factory overhead
Indirect labor
Indirect materials
Total manufacturing costs incurred
Total manufacturing costs
Cost of goods manufactured

Answer:

$130,200

Explanation:

                                  Allen Company

                Statement of cost of goods manufactured

                          For year ended December 31

Opening work in progress inventory                       5,500

Direct Materials                                         71,000

Direct Labour                                             37,000

Factory Overhead

Indirect Labour                     2,700

Indirect Materials                 1,600

Utilities                                  3,100

Maintenance                         4,500

Supplies                                1,800

Depreciation                         7,900  

Property Tax                         2,600             24,200

Total manufacturing cost incurred                            132,200

Total manufacturing cost                                            137,700

Less: Closing work in progress inventory                    7,500

Cost of goods manufactured                                    $130,200

Lewis spends a lot of time socializing while at work. In his interactions with Walid, he constantly asks personal questions and shares information about his family and hobbies. This frustrates Walid who just wants to get his work done. This illustrates ____, one of the intercultural communication challenges in business contexts.

Assume that a profit-maximizing firm which competes in a purely competitive product industry has only two factor inputs, labor and capital, and that resource prices remain constant. This firm finds that the marginal revenue product of labor (MRP) when divided by the price for labor (MRC) is less than one. The firm also finds that the marginal revenue product for capital (MRP) when divided by the price (MRC) is greater than one. If this firm wishes to produce the same amount of output with these two resources, but minimize the cost of output, this firm must employ:________

a. less labor and more capital
b. more capital
c. more labor and capital
d. less labor
e. more labor and less capital

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 2,000 sets per year. Annual cost data at full capacity follow:
Direct labor $ 118,000
Advertising $ 50,000
Factory supervision $ 40,000
Property taxes, factory building $ 3,500
Sales commissions $ 80,000
Insurance, factory $ 2,500
Depreciation, administrative office equipment$4,000
Lease cost, factory equipment $ 12,000
Indirect materials, factory $ 6,000
Depreciation, factory building $ 10,000
Administrative office supplies (billing) $ 3,000
Administrative office salaries $ 60,000
Direct materials used (wood, bolts, etc.) $ 94,000
Utilities, factory $ 20,000
Required:
1. Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as variable or fixed with respect to the number of units produced and sold; and second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.)
Cost Behavior
Selling or Administrative
Product Cost
Cost Item
Variable Fixed Cost Direct Indirect Direct labor$118,000$118,000Advertising50,00050,000Factory supervisionProperty taxes, factory buildingSales commissionsInsurance, factoryDepreciation, administrative office equipmentLease cost, factory equipmentIndirect materials, factoryDepreciation, factory buildingAdministrative office supplies (billing)Administrative office salariesDirect materials used (wood, bolts, etc.)Utilities, factoryTotal costs$118,000
2. Compute the average product cost of one patio set.
Average product cost per set = ????
3. Assume that production drops to only 1,000 sets annually. Would you expect the average product cost per set to increase, decrease, or remain unchanged?
Increase
Decrease
Remain unchanged

palmer corp is considering the purchase of new equipment the cost savings from the equipment would result in the annual increase income after tax of 133500 the equipment will have an initial cost of 534000 and have a 7 year life is the salvage value estimated to be 9000 what is estimated to be the payback period

The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively. What is ABC's return on assets (round to nearest whole percentage, just put in the number with no %)

On January 1, 2021, Pine Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Pine to make annual payments of $800,000 at the beginning of each year for five years beginning on January 1, 2021 with the title passing to Pine at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Pine uses the straight- line method of depreciation for all of its fixed assets. Pine accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $3,335,888 at an effective interest rate of 10%. In 2021, Pine should record interest expense of:______.
a. 333,589
b. 253,589
c. 466,411
d. 546,411

On January 1, 2021, the Allegheny Corporation purchased equipment for $295,000. The estimated service life of the equipment is 10 years and the estimated residual value is $20,000. The equipment is expected to produce 280,000 units during its life.

Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.

a. Sum-of-the-years'-digits.
b. One hundred fifty percent declining balance.

Parties to an administrative hearing may subpoena witnesses if they choose not to testify willingly.


True

False

Lando Calrissian just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $330,000 per year for 25 years beginning today, or receiving one lump-sum amount today. Lando can earn 4% investing this money. At what lump-sum payment amount would he be indifferent between the two alternatives

Second-degree price discrimination: Multiple Choice results in transfer pricing. None of the answers are correct. is the practice of posting a discrete schedule of declining prices for different ranges of quantities. eliminates the problem of double marginalization.

Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $57,740 per month plus $3,006 per flight plus $17 per passenger. The company expected its activity in November to be 85 flights and 257 passengers, but the actual activity was 88 flights and 259 passengers. The actual cost for plane operating costs in November was $315,650. The spending variance for plane operating costs in November would be closest to:

Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his tasks on time. He learns that some of his team members are also facing the same issue. Even though there is clarity of the target among the team members, the team struggles to efficiently carry out its task. Which of the following should the team do in order to ensure the completion of the tasks?
It should change the output and retain the workforce.
It should use informal communication to carry out its tasks.
It should standardize the work activities through flowcharts.
It should conduct an in-house training program to bring employees up to speed.
Team-based organizational structures are usually organic and highly decentralized.
True
False

You are considering buying one of two types of health insurance, both with the same premium. You guess that in the next year there is a 1 percent chance of serious illness that will cost you $67,500 in health care, a 9 percent chance of a moderate illness that will cost you $2,500, and a 90 percent chance of regular health care needs that will cost you $500. One type of health insurance is emergency-only coverage; it will cover your expenses for serious illness but not moderate illness or regular care. The other type covers moderate illness and regular expenses, but its payout is capped, so it will not cover the cost of a serious illness.

Required:
a. What is the expected value of payouts from the emergency-only insurance? $.
b. What is the expected value of payouts from the capped-coverage insurance? $.
c. Which is the more risk-averse option?

The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 3,840 liters in beginning work in process inventory (30% complete). During the period 64,880 liters were completed. The ending work in process was 5,160 liters (70% completed). All inventories are costed by the first-in, first-out method. What is the total equivalent units for direct materials (using the FIFO method) if materials were added at the beginning of the process

Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine. The firm owns two machines that together provide 4,000 hours of machine time per year. Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time. ​ What is the amount of machine time for model P-4 in terms of percent of a machine hour?
a. 50%
b. 25%
c. 30%
d. 20%
e. 10%

Suppose the working-age population of a fictional economy falls into the following categories:
75 have full-time employment; 25 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 people are stay at home parents.
(1) What is the size of Labor force?
(2) What is the Unemployment rate?

Baskin Promotions, Incorporated sells T-shirts decorated for a variety of concert performers. The company has developed the following budget for the coming year based on a sales forecast of 77,000 T-shirts: Sales $ 1,345,190 Cost of Goods Sold 786,940 Gross Profit 558,250 Operating Expenses ($100,000 is fixed) 406,460 Operating Income 151,790 Income Taxes (30% of operating income) 45,537 Net Income $ 106,253 Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 57,000 T-shirts. What unit cost did Baskin use in budgeting the cost of goods sold for the year

An ARMA(3, 0) model is fit to the following quarterly time series: Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 3.53 1.33 1.85 0.61 2019 0.98 3.61 3.44 3.38 2020 2.91 2.12 4.62 2.93 The estimated coefficients are: ar1 ar2 ar3 intercept 0.252 0.061 -0.202 2.637 Forecast the value for Quarter 1 of 2021. Give full explanation on how you arrived to your answer. Show calculations. A. Less that 3.00 B. At least 3.00, but less than 3.25 C. At least 3.25, but less than 3.50 D. Atleast 3.50, but less than 3.75 E. At least 3.75.

UML Foods reported $940 million in income before income taxes for 2020, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $120 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences. The income tax rate for 2020 was 35%, but the enacted rate for years after 2020 is 30%. The balance in the deferred tax liability in the December 31, 2020, balance sheet is:

Indirect: Computing cash flows from operation
Case X Case Y Case Z
Net income $7,200 $180,000 $129,600
Depreciation expense 54,000 14,400 43,200
Accounts receivable increase (decrease) 72,000 36,000 (7,200)
Inventory increase (decrease) (36,000) (18,000) 18,000
Accounts payable increase (decrease) 43,200 (39,600 ) 25,200
Accrued liabilities increase (decrease) (79,200 ) 21,600 (14,400)
For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method.

Neumann Corporation issues convertible preferred stock that is mandatorily redeemable five years from the date of issuance. During the last two years that the preferred shares are outstanding, investors may convert each one share of preferred stock to two shares of common stock. Prior to conversion or redemption, the preferred shares should be classified on the balance sheet as:

the retained earnings of a corporation is ________. a. internally generated equity that is received from employee stock purchases b. externally generated equity that is acquired from banks and other creditors c. externally generated equity that is contributed by shareholders d. internally generated equity that is earned by profitable operations that is not distributed to stockholders

Orin creates an irrevocable living trust to pass his 1/3rd of his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that A. the trust earnings become public. B. the assets are doubled. C. Orin avoids having to pay death taxes on these assets. D. the assets can be transferred without going through probate.

Gross private domestic investment includes business: a. purchases of capital goods, all new construction, and inventory investment. b. purchases of all types of durable goods, all new construction, and inventory investment. c. purchases of capital goods, all new construction, and purchases of consumer durable goods. d. purchases of capital goods, all new commercial construction, and inventory investment.

On December 31, 2017, Dow Steel Corporation had 730,000 shares of common stock and 43,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 5% common stock dividend on May 15 and paid cash dividends of $530,000 and $82,000 to common and preferred shareholders, respectively, on December 15, 2018.
On February 28, 2018, Dow sold 60,000 common shares. Also, as a part of a 2017 agreement for the acquisition of Merrill Cable Company, another 24,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2019, if Merrill's 2019 net income is at least $630,000. In 2018, Merrill's net income was $760,000.
In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2018, was $2,750,000. The income tax rate is 40%.
As part of an incentive compensation plan, Dow granted incentive stock options to division managers at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date. Information concerning the number of options granted and common share prices follows:
Date Granted Options Granted Share Price
(adjusted for the stock dividend)
December 31, 2016 20,000 $ 32
December 31, 2017 15,000 $ 41
December 31, 2018 18,500 $ 40
The market price of the common stock averaged $40 per share during 2018.
On July 12, 2016, Dow issued $500,000 of convertible 10% bonds at face value. Each $1,000 bond is convertible into 50 common shares (adjusted for the stock dividend).
Required:
Compute Dow's basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in thousands.)

Dennis wants to determine if the discount rate really makes any difference in the net present value of a project. He feels that if a project is acceptable at one rate of return, it will be acceptable at all rates of return. To explain why his thinking is incorrect, you are creating an example to illustrate your point. The cash flows you are using are as follows: time zero is -$71,000, years 1 through 4 are $17,500 each, and years 5 and 6 are $22,500 each. What is net present value at a discount rate of 12 percent and 17 percent

Define your seven weakness and seven strengths with reason

Suppose you can only invest in the stock markets of two countries: US and China. The US has an expected return of 5.0% and a standard deviation of 15.0%. China has an expected return of 7.0% and a standard deviation of 22.0%. The correlation between the returns in the two markets is 0.3. The risk-free rate is 3.0%. What is the maximum Sharpe ratio you can obtain (rounded to the nearest 0.001)

Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875.
a. What is Logan's recognized gain?
b. Assume instead that Johnathan's land is worth $90,000 and he gives Logan $10,000 cash. Now what is Logan's recognized gain?

Although the Fed has very strong influence over the money supply, it does not have complete control a.Because the Fed has no idea how much reserves will change when it buys or sells securities. b.Because of unpredictable changes in the public's desire to hold cash or borrow and banks' desires to hold reserves or lend. c.Because of unpredictable changes in reserve requirements. d.Because the FOMC meets only twice a year.