Answer:
Following are the solution to the given points:
Explanation:
In point a, As it would be impossible that although the failure of the lawsuit is remote, the same cannot be recorded as well as avoided.
In point b, Its prosecutor thinks Gallardo's failure of the case (which would be likely to occur) is therefore likely to be reported throughout the books, that legal expenses must be paid and the civil responsibility measured at $10,00000 credited.
In point c, In the case is fairly probable, this can occur only if it is reported throughout the corresponding Balance Sheet accounts.
Gallardo Co.'s response to the lawsuit depends on their attorneys' opinions. If it's remotely believed that the company will lose, no need to recognize the liability or disclose it in financial statements. If the loss is estimated as probable, recognize the $1,000,000 liability and expense; if reasonably possible, no liability needs to be recognized, but disclosure in the financial statement notes is needed.
By the Generally Accepted Accounting Principles (GAAP), Gallardo Co. should account for the lawsuit differently based on the attorneys' estimation of loss.
(a) If the attorney's opinion is that it's remote that Gallardo will lose the suit, the company doesn't have to make a provision or disclose it in its financial statements. Since they believe the likelihood of loss is minimal, no liability needs to be recognized.
(b) If the attorney believes it's probable that Gallardo will lose, then according to GAAP, the company will have to recognize a liability of $1,000,000 and record a lawsuit expense in the income statement.
(c) If it's reasonably possible that Gallardo could lose, the company doesn't have to recognize a liability, but it should disclose the lawsuit and the potential financial impact in the notes to its financial statements.
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b. If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand 2 days later? Number of inventory
c.What is the average inventory of elements, assuming each production cycle begins when there are none on hand? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Average inventory
d. The same equipment that is used to make the heating elements could also be used to make a component for another of the firm’s products. That job would require 3 days, including setup. Setup time for making a batch of the heating elements is a half day. Is there enough time to do this job between production of batches of heating elements?
i. No
ii. Yes
Answer:
(a) 93.85 batches of heating elements are produced annually
(b) 1725
(c) 863
(d) Yes
Explanation:
(a) Daily production rate is 860 units
Annual (251 days) production rate is = 251×860 = 215860 units
In a batch, 2300 units are produced
215860 units are produced in (215860 ÷ 2300) = 93.85 batches
(b) In 251 days, 93.85 batches are produced
In 2 days, (93.85×2)÷251 is produced = 0.75 batch
1 batch = 2300 units
0.75 batch = 0.75×2300=1725 units
(c) 0.75 batch is produced in 2days
1 batch is produced in 2/0.75days
Average= (2300×0.75)÷2= 863
The company produces approximately 93.85 batches of heating elements annually, has an inventory of 1,060 units two days after production, and maintains an average inventory of 1,150 units. Furthermore, there is enough time to produce other products between batches of heating element production.
To solve this problem, we first need to understand the company's production and consumption rates of the heating elements for their hair dryers.
a. The company produces elements at a rate of 860 per day and runs 251 days per year. Thus, they produce around 215,860 elements annually. As they produce elements in batches of 2,300, the number of batches produced annually will be 215,860 divided by 2,300, which is approximately 93.85. So, the company produces about 93.85 batches of heating elements annually.
b. Two days after the production of a batch, the company will have produced 2 * 860 = 1,720 elements but used 2 * 330 = 660, thus having an inventory of 1,060 units.
c. To calculate the average inventory, we take the sum of the maximum and minimum inventory (2,300 and 0, respectively) and divide by 2, leading to an average inventory of 1,150 units.
d. The time between production of batches of heating elements is the total quantity in a batch divided by the net increase per day (860-330). This equals 2,300/(860-330) approximately 4.8 days. Given that the other product takes 3 days to make, including setup, there is enough time to produce it between batches of heating elements.
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Which of the following give the nominal value of a variable? Check all that apply.
__ Rina's wage is 2 comic books per hour in 2011.
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Which of the following give the real value of a variable? Check all that apply.
__Rina's wage is $14.00 per hour in 2011.
__The price of a comic book is 3.5 beignets in 2011.
__Rina's wage is 7 beignets per hour in 2011.
Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Rina's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00.
In 2016, the relative price of a comic book is ( 0.29 beignets, 3.5 beignets, $4.00, $14.00)
Between 2011 and 2016, the nominal value of Rina's wage (decreases, increases, remains the same) and the real value of her wage(decreases,increases,remains the same) .
Monetary neutrality is the proposition that a change in the money supply (does not affect, affect) nominal variables and ( does not affect, affect) real variables.
Answer:
Real variable
__ Rina's wage is 2 comic books per hour in 2011.
Nominal variable
__The price of a beignet is $2.00 in 2011.
__ Rina's wage is $14.00 per hour in 2011.
Relative price of comic books - 3.5 beignets
Nominal value of Rina's wage increases
Real value of Rina's wage stages the same.
Monetary neutrality is the proposition that a change in the money supply ( affect) nominal variables and ( does not affect, ) real variables.
Explanation:
Nominal value is the face value or stated value.
Real value is nominal value adjusted for inflation. Real value of money also refers to the amount of goods and services money can buy.
Relative price is the price of a good in relation to another good.
The relative price of comic books in 2016 to biegnets = $14 / $4 = 3.5
Rina's income increased from $14 in 2011 to $28 in 2016. Her nominal income increased.
But the purchasing power of her income fell. In 2011 , her income could buy :
$14 / $7 = 2 comic books
Or
14 / 2 = 7 beignets
But in 2016, her income would buy:
$28 / $14 = $l2
Or
$28 / $4 = 7
We can see that her purchasing power remains the same.
I hope my answer helps you
Answer:
The Cost of Manufactured Goods 9,998,145
Explanation:
The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.
CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR
Description Amount ($) Amount ($)
Opening Inventory of Raw materials 42,385
Add: Purchase of raw materials 387,521
Direct raw materials available 429,906
Subtract: Closing raw materials (44,299)
Raw materials in Production 385,607
Add:
Direct labour ($388,400 x $23.60) 9,166,240
Manufacturing overhead 451,850
The total manufacturing costs 10,003,697
Add: Opening Work-in-Progress 22,655
10,026,352
Subtract: Closing work-in-progress (28,207)
The Cost of Manufactured Goods 9,998,145
Answer: The stated purpose of the food administration during the great war was to reduce food consumption by civilians (B)
Explanation:
The U. S. Food Administration was the department responsible for the administration of the United States army abroad and food reserves of its allies during the World War 1. An important role of the United States Food Administration was the regulation of the price of wheat in the market.
During the war, the United States was short of commodities because the commodities were sold to their allies hence, every citizen were asked to donate horses, weapons and ammunition they had to help supply the army. It was done so that food for soldiers wouldn't be an issue.
Answer: D
It collected food donations to be sent to soldiers in Europe
Explanation:
On August, 1917 almost immediately after US joined the World War I, the US food administration was set up to manage wartime supply of food. A voluntary program was set up where Americans were encouraged to donate foods to US troops and its allies by modifying their eating habits and also reducing their consumption levels.
Answer:
Neither Technician A or B are correct
Explanation:
Wheel runout is a term that involves a vehicle tire that's not perfectly round again. Thus, this will mean that the balance of the tires will be thrown off.
In this wheel runout, it can't be measure with a dial indicator and neither can it occur only in the tire..
Answer:
Journal Entry
Debit Work-in-Process $388,284
Credit Manufacturing Overhead $388,284
To record the application of factory overhead costs for the year.
Explanation:
a) Data and Calculations:
Estimated factory overhead costs = $348,400
Estimated direct labor hours = 47,000
Predetermined overhead rate = $7.41 ($348,400/47,000)
Actual overhead costs = $304,000
Actual direct labor hours = 52,400
Applied overhead costs = $388,284 (52,400 * $7.41)
b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate. This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied. The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.