2. In industries that process joint products, the costs of the raw materials inputs and the sales values of intermediate and final products are often volatile. Change the data area of your worksheet to match the following: If your formulas are correct, you should get the correct answers to the following questions. a. What is the overall profit if all intermediate products are processed into final products?
Answers
Answer:
The answer is "74,000".
Explanation:
Please find the complete question in the attached file.
Profitability analysis of the total business:
The combined value for final sales
Low cost of manufacturing end products:
Wool's cost
Process cost of segregation
Combined dyeing cost s
Gain benefit
Final answer:
To determine the overall profit in industries that process joint products, calculate the difference between the sales value of the final products and the costs of the raw materials inputs.
Explanation:
In industries that process joint products, the overall profit can be determined by calculating the difference between the sales value of the final products and the costs of the raw materials inputs. To find out the overall profit, follow these steps:
- Calculate the total sales value of the final products by summing up the sales values of all the final products.
- Calculate the total costs of the raw materials inputs by summing up the costs of all the raw materials.
- Subtract the total costs of raw materials inputs from the total sales value of the final products.
The resulting value will be the overall profit if all intermediate products are processed into final products.
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Related Questions
Implications of game theory
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is: Multiple Choice Target income analysis. Cost-volume-profit analysis. Least-squares regression analysis. Variance analysis. Process costing.
A group of analysts are reviewing the financial results of Airline A and Airline B. Both are medium-sized companies that operate domestic flights. Airline A has reported huge profits for the year compared to losses in the previous years. On the otherhand, Airline B reported losses mainly because of the costs associated with the servicing of its $3 billion debt. One of the analysts advocates investing in Airline A because of the reported numbers and the attractive valuation of it stock. Another analyst argues that Airline B is a better investment target as it could be possibly turned around.Which of the following, if true, would weaken the argument that Airline A is a good candidate for investment?A.The bulk of Airline A's profits came from other income which included the sale of some of its fleet.B.In anticipation of increased demand, Airline A has set aside funds for buying medium sized jets for short-haul routes.C.A look at the stock price and the balance sheet of Airline A reveals that the company's stock is trading below its book value.D.Airline A plans to reduce flights to sectors where the traffic volume is low.E.The company's cost per passenger mile traveled is different from a typical cost per mile traveled in the commuter rail industry.
Noah is an unpaid stay-at-home father who is not currently searching for paid work. Pete is a fulltime student who is not looking for a job. Who is included in the labor force by the Bureau of Labor Statistics?a. only Noahb. only Petec. both Noah and Peted. neither Noah nor Pete
Answers
Answer:
Annual depreciation= $1,275
Explanation:
Giving the following information:
Purchase price= $5,600
Useful life= 4 years
Salvage value= $500
To calculate the annual depreciation, we need to use the following formula each year:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(5,600 - 500) / 4]
Annual depreciation= $2,550
Year 2:
Annual depreciation= 2*[(5,100 - 2,550) / 4]
Annual depreciation= $1,275
Final answer:
The second year's depreciation expense using the double-declining balance method for the point of sale system purchased by Marlow Company would be $1,400.
Explanation:
The double declining balance method is a type of accelerated depreciation accounting method. In the first year, Marlow Company will depreciate the asset at a rate of 2/4 (50%) of the purchase price (i.e., $5,600), which totals $2,800. However, the asset has a salvage value of $500, which must be considered.
In the second year, the depreciation expense will be determined using the remaining book value of the asset after the first year of depreciation (i.e., $5,600 - $2,800 = $2,800) and again applying the rate of 50%. The second year's depreciation will therefore be 50% * $2,800 = $1,400.
So the correct option is e. $1,400.
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b. How much debt and equity has the firm issued to finance its assets?
If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
b. Understate its earnings
Answers
Answer:
1. The financial statement that would be the most helpful for a finance professional to evaluate how a firm's performance is:
a. How much cash is a firm generating through operating, investing, and financing activities?
2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
Explanation:
This financial statement is provided by the Statement of Cash Flows. The statement provides the performance report about a company's liquidity and long-term solvency. The information about how much debt and equity the firm has issued to finance its assets will be obtained from the statement of financial position (known as the balance sheet). This statement does not show the performance of a firm, but its financial position as of a given date.
b. It shifts to the left
c. It does not change
Answers
Answer:b. It shifts to the left
Explanation:
The supply will increases as price increases and vice versa. When the price increases and supply also increases the supply curves shifts to the right and when the price decreases and supply equally decreases supply curves shifts to the left.
In the above scenario since bracelet and necklace are exclusive products the sellers will be willing to supply more of necklace since the price has increased and less of bracelet since the price has fallen and the fall in price which leads to fall in supply of bracelet will shift bracelet supply curves to the left.
Answers
'Auditors' are the 'individuals who conduct an independent review and examination of system records and activities in order to test the adequacy of the effectiveness of data security and processes.'
The statement that most adequately displays the central role of auditors in the 'financial reporting' would be:
D). "Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles."
The responsibilities of an auditor include:
- Review and monitoring of the financial records to prevent any discrepancy.
- Ensure that the organization follows all the standard principles and policies.
- Prevent it from any kind of fraud or risk.
- Assist in saving costs.
- Ensure the operations are being run effectively.
- Preparation of reports and data charts etc.
Thus, option D correctly goes with the above-stated duties that he/she is an individual who looks after that the company is in proper alliance with the set principles.
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Answer:
D. Independent party hired by management to express a professional opinion of the extent to which the company’s financial reporting is in compliance with generally accepted accounting principles.
Explanation:
I just finish my quiz on it.
Answers
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.
Final answer:
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.
Explanation:
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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Answers
Answer:
No
Explanation:
In a competitive market, price should be a function of variable/marginal costs not fixed costs.