Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?
Answer
a.
Scissorwire Inc. can register with the SEC at any point after the dip in shares.
b.
The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.
c.
The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.
d.
Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.
Answer:
Job 33 $ 27250
Job 34 $ 31500
Job 35 $ 12325
Cost of Goods Sold Job 33 $ 27250
Finished Goods Inventory Job 34 $ 31500
Work in Process Inventory Job 35 $ 12325
Explanation:
Work in Process Balance on 3/1
Job 33 $ 7,500
Job 34 6,000
Total $ 13,500
Job 33
Direct Materials $3500
Direct Labor 6500
Overheads (150%) 9750
Add Opening WIP 7500
Total Cost $ 27250
We add the Direct Material Direct Labor and Mfg overheads with the opening balance of WIP to get the total cost of given jobs.
Job 34
Direct Materials $6000
Direct Labor 7800
Overheads (150%) 11700
Add Opening WIP 6000
Total Cost $ 31500
Job 35
Direct Materials $4200
Direct Labor 3250
Overheads (150%) 4875
Add Opening WIP ------
Total Cost $ 12325
Cost of Goods Sold Job 33 (given) $ 27250
Finished Goods Inventory Job 34 (given) $ 31500
Work in Process Inventory Job 35(given)$ 12325
It is given in the question that Job 34 is transferred to Finished Goods , Job 35 is still in process and Job 33 is cost of goods sold.
By accounting for beginning balances, cost of materials, labor, and overheads, the costs of Jobs 33, 34, and 35 at end of the month are $27,250, $31,500 and $12,325 respectively. The Work in Process Inventory is $12,325, Finished Goods Inventory is $31,500 and Cost of Goods Sold is $27,250.
To calculate the cost of each job at Oak Creek Furniture Factory (OCFF), we first need to consider all cost factors. These include the beginning balances, additional materials requisitioned, labor hours, and overheads. Job overheads for OCFF are applied as 150 percent of direct labor cost.
Job 33: The initial cost was $7,500. During March, materials costing $3,500 and labor cost of $6,500 were added, making a total of $10,000. Applying the overhead calculation, we find that overheads amount to $6,500 * 1.5 = $9,750. The total cost for job 33 is therefore $7,500 (beginning balance) + $10,000 (material and labor costs) + $9,750 (overhead) = $27,250.
Job 34: Initial cost was $6,000. Material and labor costs for March amount to $6,000 and $7,800 respectively, summing up to $13,800. The overhead equals $7,800 * 1.5 = $11,700. The total cost for job 34 is accordingly $6,000 (beginning balance) + $13,800 (material and labor costs) + $11,700 (overhead) = $31,500.
In regard of Job 35, which is still in progress, only the cost of materials $4,200 and labor $3,250 have been added, totalling $7,450. Calculating overheads, we get $3,250 * 1.5 = $4,875. Therefore, the cost so far for job 35 is $7,450 (material and labor costs) + $4,875 (overhead) = $12,325.
For the balance of the Work in Process Inventory, we just include the cost of Job 35, which isn't finished yet: $12,325.
The Finished Goods Inventory includes the cost of Job 34 which is completed but not sold: $31,500.
Cost of Goods Sold consists of completed and sold jobs, in this case only Job 33: $27,250.
#SPJ3
b. people are willing to forgo; yam yam
c. must be forgone; yam yam
d. people are willing to forgo; lemon lemon
Answer:
correct option is d.$7,511.61 unfavorable
Explanation:
given data
standard material cost = $1.97 per yard
Actual material cost = $2.05 per yard
Standard yards = 4.67 per unit
Actual yards = 5.08 per unit
Units of production = 9300
solution
we get here Direct material quantity variance that is express as
Direct material quantity variance = (Standard quantity - actual quantity) × Standard rate .....................1
put here value and we will get
Direct material quantity variance = (9300 × 4.67 - 9300 × 5.08) × 1.97
Direct material quantity variance = −7511.61
so correct option is d.$7,511.61 unfavorable
Answer:
b. $800
Explanation:
The calculation of maximum loss from this position is shown below:-
Maximum Loss from this position = (Assume figure × Call premium) + (Assume figure × Put premium)
= (100 × $5) + (100 × $3)
= $500 + $300
= $800
Therefore for computing the maximum loss from this position we simply applied the above formula.