At December 31, 2020, Sandra’s Boutique had 1850 gift certificates outstanding, which had been sold to customers during 2020 for $70 each. Sandra’s operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 1850 outstanding gift certificates should be deferred at December 31, 2020?

Answers

Answer 1

Answer:

Answer: $129,500

Explanation:

According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.

On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.

This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).

They cannot therefore recognize the revenue as Revenue yet and have to defer it.

The amount to be Deferred will therefore be,

= 1,850 * $70

= $129,500

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Arden Company reported the following costs and expenses for the most recent month:Direct materials $ 80,000
Direct labor $ 42,000
Manufacturing overhead $ 19,000
Selling expenses $ 22,000
Administrative expenses $ 35,000

1) What is the total amount of product costs?

2) What is the total amount of period costs?

3) What is the total amount of conversion costs?

4) What is the total amount of prime costs?

Answers

Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000

Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory

2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.

3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000

4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000

Final answer:

The total product cost is $141,000, total period cost is $57,000, total conversion cost is $61,000, and the total prime cost is $122,000.

Explanation:

In business terms, costs and expenses are categorized differently. The product costs are the costs involved directly in manufacturing a product, which include direct materials, direct labor, and manufacturing overhead. Therefore, the total product cost would be $80,000 (direct materials) + $42,000 (direct labor) + $19,000 (manufacturing overhead) = $141,000.

On the other hand, period costs are the costs that are not directly tied to a product, like selling and administrative expenses. Therefore, the total period cost is $22,000 (selling expenses) + $35,000 (administrative expenses) = $57,000.

Conversion costs are the costs of converting the raw materials into a finished product, these are direct labor and manufacturing overhead. So the conversion cost is = $42,000 (direct labor) + $19,000 (manufacturing overhead) = $61,000. The prime costs refer to the direct costs of production, these are direct materials and direct labor, prime cost = $80,000 (direct materials) + $42,000 (direct labor) = $122,000.

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In the probabilistic approach to project network analysis, the time estimate annotated tm for any activity is the: Multiple Choice: O mean time. O marginal time. O mode time. O most likely time. O median time.

Answers

Answer:

Most likely time

Explanation:

Related concepts to understand the problem.

In the probabilistic approach to project network analysis the most likely time is the best estimate of the time required to complete an objective (m) or a path (M), supposing everything proceeds as usual.

Haskell Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $100,000 in debt. Plan II would result in 8,700 shares of stock and $155,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $80,000. The all-equity plan would result in 18,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Assuming that the corporate tax rate is 40 percent, what are the break-even levels of EBIT for each plan as compared to that for an all-equity plan? (Do not round intermediate calculations.)

Answers

Answer:

Please find attached detailed solution to the above question.

Explanation:

Please as attached detailed solution.

CoolBreeze Manufacturing produces a single product, a tabletop fan. They reported the following information from their operations last period:___________. Cost of Direct Materials used in production: $50,000
Cost of Direct Labor wages: $37,500
Variable Manufacturing Overhead: $25,000
Fixed Manufacturing Overhead: $125,000
Total units produced: 10,000
Under absorption costing what was the per-unit cost of the units produced?
a. None of the above
b. $23.75
c. $12.50
d. $11.25
e. $8.75

Answers

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Cost of Direct Materials used in production: $50,000

Cost of Direct Labor wages: $37,500

Variable Manufacturing Overhead: $25,000

Fixed Manufacturing Overhead: $125,000

Total units produced: 10,000

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

First, we need to calculate the total cost:

Total cost= 50,000 + 37,500 + 25,000 + 125,000

Total cost= $237,500

Now, the unitary cost:

Unitary cost= 237,500/10,000= $23.75

Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Emma deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 9%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 11 years

Answers

Answer:

$995.00

Explanation:

Calculation for how much money will she have in her account in 11 years

Using this formula

Future Value = Present Value + Present Value * Interest Rate ×Time Period

Let plug in the formula

Future Value = $500 + $500 ×0.09 × 11

Future Value =$500+$495

Future Value = $995.00

Therefore the amount of money she will have in her account in 11 years will be $995.00

Final answer:

Emma will have $995 in her savings account after 11 years with a fixed interest rate of 9%.

Explanation:

To calculate how much money Emma will have in her savings account after 11 years with a fixed interest rate of 9%, we can use the formula:

Future Value = Principal + (Principal * Interest Rate * Time)

Substituting the values, we get:

Future Value = $500 + ($500 * 0.09 * 11) = $500 + $495 = $995

Therefore, Emma will have $995 in her account after 11 years.

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You are a financial advisor at the bond dealer Dewey, Cheatem, and Howe. Your client has informed you that she is on the Board of Directors of a company that needs to buy some bonds, but is only allowed to purchase investment grade bonds. You recommend the D-rated bonds of Dry Wells Oil Exploration, Inc. because, although the par value of the bonds is $1000, the current market price is only $200. Which of the following statements is False? A. Your client will not be able to purchase these bonds
B. Investors clearly believe this company is not in danger of bankruptcy
C. You made a very recommendation
D. The yield to maturity of these bonds is higher than the coupon rate

Answers

Answer:

B. Investors clearly believe this company is not in danger of bankruptcy

Explanation:

The yield of these bonds is much higher than its coupon rate, that is why there market price is so low. Clearly, this company is almost bankrupt. Investment grade bonds are A bonds, these would be junk bonds. These bonds are a very risky investment, that is why their yield is so high.

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