Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $113 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 5% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.1. How much warranty expense does the company report in 2018 for this copier? 2. How much is the estimated warranty liability for this copier as of December 31, 2018? 3. How much warranty expense does the company report in 2019 for this copier? 4. How much is the estimated warranty liability for this copier as of December 31, 2019? 5. Prepare journal entries to record (a) the copier's sale; (b) the adjustment on December 31, 2018, to recognize the warranty expense; and (c) the repairs that occur in November 2019.

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Related Questions

Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply Allentown $22 $16 $21 100 Philadelphia $28 $27 $18 150 Harrisburg $25 $23 $19 175 Demand 175 175 175 What is the maximum quantity that can be shipped from Allentown to Erie? 100 What is the maximum quantity that can be shipped from Harrisburg to Cleveland? 175 What is the maximum quantity that can be shipped from Harrisburg to Dayton? 75 Which demand location will have an unmet demand? Cleveland Answer 1:
In an attempt to have funds for a down payment in five years, james dupont plans to save $3,800 a year for the next five years. with an interest rate of 4 percent, what amount will james have available for a down payment after the five years?
Moorcroft Company’s budgeted sales and direct materials purchases are as follows:Budgeted Sales Budgeted D.M. PurchasesApril $327,000 $42,000May 292,000 51,000June 407,000 61,000Moorcroft’s sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcroft’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.Instructions: (a) Prepare a schedule of expected collections from customers for June. (b) Prepare a schedule of expected payments for direct materials for June. (c) Moorcroft's assistant controller suggested that Moorcroft hire a part-time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible. Prepare a schedule of expected collections from customers for June How did these changes impact cash collections? Would it be worth paying the collector $1,000 per month? (d) The assistant controller also suggested that the company switch their purchases to 40% cash and 60% on account to help stretch out their cash payments. There is no additional interest charge to do this and Moorcroft is still paying their bills on time. There is no change to the company's payment pattern. Prepare a schedule of expected payments for direct materials for June. How did these changes impact the cash payments for June?
Because there are a significant number of "green-conscious" consumers, it is a legitimate market segment for many companies that have heretofore relied on more traditional segmentation such as demographics or psychographics. a. Trueb. False
Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 8 and the tax multiplier is 4. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8.Compute the amount the government would have to increase spending to close the output gap according to each economist's belief. Then, for each scenario, compute the size of the tax cut that would achieve this same effect.

An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost(without profit). The remaining 60% of the business is with several differant customers and they are charged $40 per unit. Find. a.The break even volume for this job.
b.The unit cost if 100,000 units are made per year.
c.The annual profit for this quantity(100,000 units).

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Answer:

a. Break Even Profit = Fixed Cost / Contribution Per Unit

Fixed Cost = $1,000,000

Contribution Per Unit = 40 - 21 = $19 Per Unit

Break-even Profit = 1,000,000 / 19 = 52,631.57 Units

b. Unit Cost = $21 Per Unit

Applied Fixed Cost=  1,000,000 / 100,000 = $10 Per Unit

Total Cost = Unit cost + Applied fixed cost = $21 per unit + $10 per unit =  $31 Per Unit

c. Annual Profit:

Sales                                         $3,640,000

(60,000 x 40) (40,000 x 31)  

Less: Variable Cost                  $2,100,000

Less: Fixed Cost                       $1,000,000

Profit                                          $540,000

1. How is inflation measured? Fill in the blanks to complete the passage about the CPI and the GDP deflator. The Consumer Price Index (CPI) and the GDP deflator are both price indices, so they both serve as measures of inflation. However, the CPI uses a smaller basket of goods. The GDP deflator aims to take into account all final goods and services, whereas the CPI only includes goods and services sold to –. So, for instance, prices on farm equipment are included in the – but not in the –.

Answers

Answer:

First blank: Consumers

Second blank: GDP

Third blank: CPI

Explanation:

The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.

Final answer:

Inflation is measured using the Consumer Price Index (CPI) and the GDP deflator. The CPI measures price changes for a specific basket of goods and services bought by the typical consumer, while the GDP deflator considers all domestically produced final goods and services.

Explanation:

Inflation is typically measured using two indices known as the Consumer Price Index (CPI) and the GDP deflator. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Not all goods and services are included in the CPI, it primarily focuses on those sold to typical urban consumers.

On the other hand, the GDP deflator is a measure of the price of all domestically produced final goods and services in an economy including items like farm equipment, which are not included in the CPI. The GDP deflator takes a broader approach and doesn't restrict itself to a fixed basket of goods and services, rather reflects the current composition of output and the prices of all the goods and services currently produced domestically.

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"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"

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Answer:

The GDP in 2008 was $6800

Explanation:

The GDP or Gross Dividend Product of the country is the total value of the economic activity or the value of goods and services produced in an economy within a country in a certain year.

The formula to calculate the GDP = C + I + G + ( X - M )

Where,

  • C is the consumption
  • I is the Investment
  • G is the government spending
  • X is the value of exports
  • M is the calue of imports

Thus, GDP = 5000 + 1000 + 900 + ( 100 - 200)

GDP = $6800

Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $28,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $55,000. By the end of the week, the company had manufactured 5,600 hockey sticks.1.Calculate the total prime cost for last week.$2. Calculate the per-unit prime cost. Round your answer to the nearest cent.$ per unit3. Calculate the total conversion cost for last week.$4. Calculate the per-unit conversion cost. Round your answer to the nearest cent.$ per unit

Answers

Answer:

Part 1. Calculate the total prime cost for last week

Direct materials                    28,000

Add Direct labor                   28,000

Prime Cost                             56,000

Part 2. Calculate the per-unit prime cost

per-unit prime cost=$56,000/5,600

                                 =$10.00

Part 3. Calculate the total conversion cost for last week

Direct labor                                 28,000

Add Manufacturing Overheads 55,000

Total conversion cost                83,000

Part 4. Calculate the per-unit conversion cost.

per-unit conversion cost=$83,000/5,600

                                         =$14.82

Explanation:

Part 1. Calculate the total prime cost for last week

Prime Cost = Direct Materials + Direct Labor

Part 2. Calculate the per-unit prime cost

Per Unit Prime Cost = total prime cost/number of units manufactured

Part 3. Calculate the total conversion cost for last week

Conversion Cost = Direct Labor + Manufacturing Overheads

Part 4. Calculate the per-unit conversion cost.

Per-unit conversion cost =Total Conversion Cost / number of units manufactured

Final answer:

The total prime cost last week was $56,000, and the per-unit prime cost was $10. The total conversion cost was $83,000, and the per-unit conversion cost was $14.82.

Explanation:

The prime cost is calculated by adding the costs of the direct materials and direct labor. Therefore, the total prime cost for Slapshot Company last week was $28,000 (direct materials) + $28,000 (direct labor) = $56,000.

The per-unit prime cost is calculated by dividing the total prime cost by the number of units produced. Therefore, it is $56,000 ÷ 5,600 hockey sticks = $10 per unit (rounded to the nearest cent).

The conversion cost is calculated by adding the cost of direct labor and manufacturing overhead. Therefore, the total conversion cost last week was $28,000 (direct labor) + $55,000 (overhead) = $83,000.

The per-unit conversion cost is calculated by dividing the total conversion cost by the number of units produced. Therefore, it is $83,000 ÷ 5,600 hockey sticks = <-strong>$14.82 per unit (rounded to the nearest cent).

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Variance Analysis Question The Glass Vessel Company has established the following budget for producing one of its handblown vases: Materials (silica) 2 pounds @ 1.25 per pound Labor 1.5 hours @ $15.00 per hour In March of the most recent year, Glass Vessel produced 300 vases using 650 pounds of materials. Glass Vessel purchased the 650 pounds of materials for $845. Actual total labor costs for March were $7,200, which entailed 480 hours of labor. Please answer both of the following questions:Materials (silica) 2 pounds @ 1.25 per pound
Labor 1.5 hours @ $15.00 per hour
1. What was Glass Vessel’s flexible budget variance for materials in March? (As part of your answer, please indicate whether this variance was favorable or unfavorable.)
2. What was Glass Vessel’s labor efficiency/usage variance for March? (As part of your answer, indicate whether this variance was favorable or unfavorable.)
Must show work

Answers

Answer:

(i) -62.5 (Unfavorable)

(ii) -450 (Unfavorable).

Explanation:

(1) Material variance:

Material cost variance is the difference between standard cost for actual output produced and the actual cost of materials.

Material cost variance = (SQ × SP) – (AQ × AP)

Where SQ = Standard quantity for actual output, AQ = Actual quantity, SP = Standard Price and AP = Actual price.

This material cost variance can be subdivided into material price variance and material usage variance.

Material price variance = AQ × (SP – AP)

Material usage variance = SP (SQ - AQ)

In the problem, it is given that materials 2 pounds @ 1.25 per pound.

Therefore, SP = $1.25 and SQ per unit = 2 pounds.

It is given that Glass vessel produced 300 vases using 650 pounds of material.

Therefore, AQ = 650 pounds and actual output = 300 vases.

Therefore SQ for actual output:

= (SQ per unit) × (Actual output)

= (2 pounds) × (300 vases)

= 600 pounds.

It is given that Glass vessel purchased 650 pounds of material for $845.

Therefore Actual price = $845 ÷ 650 pounds

                                      = $ 1.3

SP = $1.25 and AP = $1.3

SQ = 600 pounds and AQ = 650 pounds.

Material cost variance = (SQ × SP) – (AQ × AP)

Material price variance = AQ × (SP – AP)

Material usage variance = SP × (SQ-AQ)

Material cost variance (MCV):

= (600 × 1.25) – (650 × 1.3)

= -95 (Unfavorable)

Material price variance (MPV):

= 650 × (1.25 – 1.3)

= -32.5 (Unfavorable)

Material usage variance (MUV):

= 1.25 (600-650)

= -62.5 (Unfavorable)

Verification:

MCV = MPV + MUV

        = (-32.5) + (-62.5)

        = -95.

(2) Labor variances:

Labor cost variance is the difference between standard labor cost and the actual cost.

Labor cost variance = (SH × SR) – (AH × AR)

Where SH = Standard hours for actual output, AH = Actual hours, SR = Standard rate and AR = Actual rate.

Labor cost variance can be subdivided into Labor rate variance and Labor efficiency variance.

Labor rate variance = AH × (SR-AR)

Labor efficiency variance = SR × (SH – AH)

It is given that Labor 1.5 hours @ $15 per hour is the standard.

Therefore, SR = $15 and SH per unit = 1.5 hours.

SH for actual output = SH per unit × actual output

                                 = 1.5 × 300

                                 = 450 hours.

It is given that the actual total labor costs for March were $7200, which entailed 480 hours of labor.

Therefore, AH = 480 hours.

AR = Labor cost ÷ labor hours

     = 7,200 ÷ 480

     = $15.

SH = 450 hours, AH = 480 hours, SR = $15 and AR = $15.

Here, standard rate and actual rate are same. Therefore the labor rate variance is NIL. So the entire labor variance will come under labor efficiency variance.

Labor cost variance = (SH × SR) – (AH × AR)

Labor rate variance = AH × (SR-AR)

Labor efficiency variance = SR × (SH – AH)

Labor cost variance = (450 × 15) – (480 × 15)

                                 = -450 (Unfavorable)

Labor rate variance = 480 × (15-15)

                                 = 0

Labor efficiency variance = 15 × (450 - 480)

                                          = -450 (Unfavorable).

An investment of 1 will double in 27.72 years at a force of interest, δ. An investment of 1 will increase to 7.04 in n years at a nominal rate of interest numerically equal to δ and convertible once every two years. Calculate n.

Answers

Answer:

80

Explanation:

According to the given situation, the computation of n is shown below:-

EXP[27.72δ]=2

δ =0.025

m = 1 ÷ 2

(1 + 0.025 ÷ (1 ÷ 2))^n ÷ 2 = 7.04

n ÷ 2 × ln(1.05)=ln(7.04)

n ÷ 2=40

n = 80

Therefore for computing the n we simply applied the above formula i.e. by considering all the information given in the question

Hence,the n is 80

To find the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula A = P(1 + r/m)^mt. Using this formula, we can solve for t by substituting the given values into the equation and solving for t using logarithms.

To find n, the number of years it takes for an investment of $1 to increase to $7.04 at a nominal rate of interest numerically equal to δ and convertible once every two years, we can use the formula:



A = P(1 + r/m)mt



Where A is the final amount, P is the initial investment, r is the nominal rate of interest, m is the number of times interest is compounded per year, and t is the number of years.



In this case, A = $7.04, P = $1, r = δ, and m = 2 (since it is convertible once every two years). Using this information, we can solve for t:



$7.04 = $1(1 + δ/2)2t



Divide both sides by $1:



7.04 = (1 + δ/2)2t



Take the logarithm of both sides:



log(7.04) = log((1 + δ/2)2t)



Apply the power rule of logarithms:



log(7.04) = 2t * log(1 + δ/2)



Divide both sides by 2 * log(1 + δ/2):



t = log(7.04) / (2 * log(1 + δ/2))



Plug in the value of δ to find the value of t.

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