BUSINESS COLLEGE

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produce 1,375 units that can be sold now for $89,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $290 per unit. If Holmes processes further, the units can be sold for $440 each. Should Holmes sell the product now or process it further

Answers

Answer 1
Answer:

Answer:

Yes

Explanation:

The computation is shown below:

Particulars         Sales As Is   Process further     Incremental Accounting

Sales            $89,500       $605,000               $515,500

                                             (1,375 units × $440)

Less:

Additional Process costs $398,750                $398,750

                                          (1,375 units × $290)

Total           $89,500       $206,250                $116,750

Based on the incremental income, Holmes should process it further.

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Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? (Round your intermediate calculations to 2 decimal places.)

Answers

Answer:

underapplied by 2,250

Explanation:

(Cost\: Of \:Manufacturing \:Overhead)/(Cost \:Driver)= Overhead \:Rate

we will distribute the expected cost of overhead  ovwer the cost driver. In this case, machine hours:

255,000 / 100,000 = 2.55

Then we multiply thew rate by the amount of actual hours:

105,000 x 2.55 = 267,760

We compare with the appleid overhead:

267,760 - 270,000 = -2,250

As the actual overehad was higher than applied overhead the overhead was underapplied

3. If you are the victim of fraud in Oklahoma, the best place to start is bya. calling the Governor’s office for help.

b. hiding what happened so no one will find out.

c. calling your friends to tell them what happened.

d. calling the State Attorney General’s office for advice.

Please answer right away

Answers

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Suppose a group of investors pooled $750,000 and founded Best National Bank in Rochester, NY. Best National Bank used $$75,000 of this to purchase shares in the New York Federal Reserve Bank. With the remaining $675,000, the bank manager purchased a building, furniture, and equipment for the bank.

Answers

Answer:

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Assume Joe Harry sells his 25 percent interest in Joe's S Corp., Inc., to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc., earned $200,000 from January 1 to January 29 and a total of $1,460,000 from January 1 through December 31 (365 days)?a. $28,000.
b. $50,000.
c. $112,000.
d. $200,000.
e. None of the above.

Answers

Answer:

$29,000

Explanation:

Joe sells 25% of his interest to Joe's S corporation

= 25/100

= 0.25

Therefore using the daily allocation method, the amount of income reported if Joe earns $200,000 from January 1st to January 29th and a total of $1,460,000 for 365 days

= 1,460,000/365 days × 29 days × 0.25

= 4,000×29×0.25

= $29,000

Hence the amount of income reported by Joe Harry is $29,000

Suppose that LilyMac Photography has annual sales of $290,000, cost of goods sold of $155,000, average inventories of $3,500, average accounts receivable of $21,000, and an average accounts payable balance of $10,000. Assuming that all of LilyMac's sales are on credit, what will be the firm's cash cycle?

Answers

Answer:

11.12

Explanation:

See attached files

Answer:

Explanation:

Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300.

Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Suppose you are committed to owning a $191,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of 11 percent and you want to buy the car in 8 years on the day you turn 30, how much must you invest today?

Answers

Answer:

Explanation:

In this scenerio we have to use compound interest formula to find the investmen amount:

FV=PV(1+i)^{n}

FV: Future Value (Ferrari price)

PV: Present Value (Investment amount)

i: interest rate (0.11) (11%)

n: time (8 years)

191,000=PV(1+0.11)^{8}⇒ 191,000=PV×2,3045377697175681

PV= $82,879.96=Investment amount
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