BUSINESS COLLEGE

The following information pertains to Guillotine Corporation: Beginning inventory 1,000 units Ending inventory 6,000 units Direct labor per unit $40 Direct materials per unit $20 Variable overhead per unit $10 Fixed overhead per unit $30 Variable selling and admin. costs per unit $6 Fixed selling and admin. costs per unit $14A) What is the value of the ending inventory using the absorption costing method?a) $600,000b) $100,000c) $120,000d) $70,000

Answers

Answer 1
Answer:

Answer:

Value of the ending inventory=$600,000

Option A is correct ($600,000)

Explanation:

Given Data:

Ending inventory=6,000 units

Direct labor per unit =$40

Direct materials per unit=$20

Variable overhead per unit =$10

Fixed overhead per unit=$30

Required:

Value of the ending inventory=?

Solution:

Value of the ending inventory=(Direct labor per unit+Direct materials per unit+Variable overhead per unit + Fixed overhead per unit)*Ending inventory

Value of the ending inventory=($40+$20+$10+$30)*6000

Value of the ending inventory=$100*6000

Value of the ending inventory=$600,000

Option A is correct ($600,000)
Answer 2
Answer:

Final answer:

The value of the ending inventory using the absorption costing method for Guillotine Corporation is $600,000. This is calculated by adding the relevant per unit costs, which total $100 per unit, and then multiplying by the number of units in the ending inventory.

Explanation:

The absorption costing method includes both variable and fixed manufacturing costs, such as direct labor, direct materials, and both variable and fixed overhead, in the valuation of inventory.

In Guillotine Corporation's case, the costs per unit would be added together: $40 (direct labor) + $20 (direct materials) + $10 (variable overhead) + $30 (fixed overhead), which equals $100 per unit. Notice that the selling and administrative costs are not included in the valuation because absorption costing only includes manufacturing costs.

To find the value of the ending inventory, we then multiply the cost per unit ($100) with the number of units in the ending inventory (6,000 units). Therefore, 6,000 units * $100/unit = $600,000. Therefore, answer a) $600,000 is correct.

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11) Individual Web pages or clusters of pages that function as supplements to a primary site are ________. A) search engine optimization B) pay-per-click ads C) delighters D) microsites E) touch points

Answers

Individual Web pages or clusters of pages that function as supplements to a primary site are  microsites.

What is a microsite?

  • Microsites are brand-specific websites (or a single web page) that businesses use to advertise their particular goods, occasions, or campaigns. These have a different URL than their corporate websites and are hosted on their own domain or a subdomain of the company.
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An employee earns $32 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $46,400. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $515. a. Determine the gross pay for the week. $ If applicable, round your final answer to two decimal places. b. Determine the net pay for the week. $

Answers

Answer:

a. Gross pay for the week = $2,240

b. net pay for the week = $683

Explanation:

a) gross pay for the week = total amount earned, before the deduction of taxes and other charges, it is calculated as follows:

amount earned per hour = $32

amount earned in excess of 40 hours = 1.5 × 32 = $48 per hour

Total hour worked = 60 hours

This means that in the first 40 hours, the employee earned 32$ per hour and $48 per hour for the next 20 hours

∴ amount earned in the first 40 hours = 32 × 40 = $1,280

amount earned in the next 20 hours = 48 × 20 = $960

∴ Gross pay for the week = 1,280 + 960 = $2,240

b) net pay for the week = Gross pay - (Total deductions)

Deductions are as follows:

social security tax rate = 6.0% of gross pay = 0.06 × 2,240 = $134.4

Medicare tax rate = 1.5% of gross pay = 0.015 × 2,240 = $33.6

Federal income tax = $515

Total deductions = 134.4 + 33.6 + 515 = $683

∴ Net pay for the week = 2,240 - 683 = $1,557

Tina is very skilled at knowing what gifts are acceptable to give coworkers and clients when she travels around the world representing Pepsi.

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Right Medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. Based on industry experience with similar product introductions, warranty costs are expected to approximate 1% of sales. Sales were $15 million and actual warranty expenditures were $20,000 for the first year of selling the product. What amount (if any) should Right report as a liability at the end of the year? (Enter your answers in whole dollars.)

Answers

Answer:

warranty liability $ 130,000

Explanation:

the warrant liability will de clared based on sales volume and the expected warranty expenditures associate with sales.

This is done to match the expenses of the warranty with the period on which are generated. If don't further period will have expenditures which related to sales of prior periods.

Having said that we proceeds:

warranty liability:

15,000,000 x 1% =         150,000

warranty expenditures (20,000)

                       net          130,000

the company still spect this sales will generate additioal warranty expenditres for 130,000 dollars. this is a liability.

Final answer:

Based on an expected 1% of sales as warranty costs, Right Medical should report a warranty liability of $130,000 at year-end, subtracting the actual costs ($20,000) from the expected costs ($150,000).

Explanation:

The question revolves around estimating the warranty liability that Right Medical should report at the end of the year after introducing a new implant with a five-year warranty. Based on industry standards, warranty costs are expected to be 1% of sales. The company did indeed incur actual warranty expenditures of $20,000, however, the expectation based on sales would be $150,000 (1% of $15 million). Since the actual expenditures are lower than expected, the company should report the difference between the expected cost (calculated as 1% of sales) and the actual cost as the warranty liability. Therefore, Right Medical should report a liability of $150,000 - $20,000 = $130,000 at the end of the year.

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Muddy Meadows Earthmoving can purchase a bulldozer for $147,000. After 7 years of use, the bulldozer should have a salvage value of $50,000. What depreciation is allowed for this asset in Year 4 for.(a) Straight-line depreciation?(b) 150% declining balance depreciation?(c) 40% bonus depreciation with the balance using 5-year MACRS?PLEASE DO NOT USE EXCEL AND SHOW CALCULATIONS1.) a) $13,857; b) $15,676; c) $10,1612.) $13,857; b) $15,676; c) $44663.) $21,000; b) $15,676; c) $10,1614.) $13,857; b) $12,437; c) $10,161

Answers

Answer:

1) a. $13,857 : b. $15,676 : c. $10,161

Explanation:

(a) Straight-line depreciation:

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(b) 150% declining balance depreciation:

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depreciation expense year 1 = $147,000 x 1/7 x 1.5 = $31,500

depreciation expense year 2 = $115,500 x 1/7 x 1.5 = $24,750

depreciation expense year 3 = $90,750 x 1/7 x 1.5 = $19,446

depreciation expense year 4 = $71,304 x 1/7 x 1.5 = $15,279 (this number is similar to $15,676, so I will choose that number. Depreciation % may vary a little due to rounding)

(c) 40% bonus depreciation with the balance using 5-year MACRS:

depreciation expense year 1 = $147,000 x 40% = $58,800

depreciation expense year 2 = $88,200 x 32% = $28,224

depreciation expense year 3 = $88,200 x 19.20% = $16,934

depreciation expense year 4 = $88,200 x 11.52% = $10,161

Medicaplus, a pharmaceutical company, is finding it difficult to track and locate slow moving medicines. pharmaceutical distributors have been complaining about the time it takes for their orders to arrive. one technology that can be used effectively to shorten this waiting period, locate, and track items easily is:

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One technology that can be used effectively to shorten this waiting period, locate, and track items easily is RFID. RFID stands for the radio-frequency identification. This system uses an electromagnetic field to identify and track tags that are attached to different objects. They are transmitted over radio waves from sender to receiver. 
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