Answer:
Total Current assets = $622,000
Explanation:
Balance sheet (For the year ending)
Current asses Amount
Accounts receivable $220,000
Cash $83,000
Stock $275,000
Finished goods $89,000
Raw materials $94,000
W.I.P $92,000
Prepaid expenses $44,000
Total Current assets $622,000
Jacque Ewing Drilling, Inc. has a beta of 1.3. If the risk-free rate of return is 8 percent and the expected return on the market is 12 percent, what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 0 percent
Answer:
The firm after tax cost of equity would be 13.2%
Explanation:
The computation of the firm after tax cost of equity capital is shown below
As we know that
Required rate of return = Risk free rate of return + Beta × (market rate of return - risk free rate of return)
= 8% + 1.3 × (12% - 8%)
= 8% + 1.3 × 4%
= 8% + 5.2%
= 13.2%
Since the marginal tax rate is 0%
So, the firm after tax cost of equity would be 13.2%
Which statement describes an outcome of fiscal policy?
Answer:
Consumers have less money for luxuries because they must pay taxes
Explanation:
One day, Barry the Barber, Inc., collects $500 for haircuts. Over this day, his equipment depreciates in value by $80. Of the remaining $420, Barry sends $50 to the government in sales taxes, takes home $250 in wages, and retains $120 in his business to add new equipment in the future. From the $250 that Barry takes home, he pays $90 in income taxes.Based on this information, complete the following table by computing Barry’s contribution to the measures of income listed.
Measure of Income Barry's contribution
Gross Domestic Product
Net National Product
National Income
Personal Income
Disposable Personal Income (Dollars)
Answer:
Gross Domestic Product
= $500
GDP is the final value of goods and services. The haircut is valued at $500 so is GDP.
Net National Product:
= GDP - Depreciation
= 500 - 80
= $420
National Income
= $420
This is the income that a resident of the country earns and $420 is what Barry earned in net income.
Personal Income
= National income - Retained earnings
= 420 - 120 - 50
= $250
Disposable Personal Income (Dollars)
= Personal income - income taxes
= 250 - 90
= $160
Will any candidate in the Georgia runoff get more than 3 million votes
Answer:
C
Explanation:
Celia has a son and a daughter in college. They have been students since tax year 2017. Celia’s son’s tuition is $6,600 and her daughter’s tuition is $1,875. Celia’s AGI for tax year 2020 is $79,800. Is Celia eligible to claim the tuition and fees deduction? a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.
b. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $4,000.
c. No, Celia is not eligible to claim the tuition and fees deduction because it expired at the end of tax year 2017.
d. No, Celia is not eligible to claim the tuition and fees deduction because her income is too high.
Answer:
a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.
Explanation:
Since Celia's MAGI is less than $80,000 (assuming she is a single filer or head of household), she can claim up to $2,000 per year on each of her children's qualified tuition expenses. In this case, Celia can claim $2,000 from her son's tuition expenses and $1,875 form her daughter's.
The following amounts represent totals from the first three years of operations. Calculate the balance of Retained Earnings at the end of 2021. 2019 2020 2021 Net Income (loss) $ 1,200 $ (500 ) $ 2,300 Net Cash Flows $ 500 $ 300 $ 2,800 Dividends $ 200 $ 0 $ 200 Issuance of Stock $ 2,000 $ 0 $ 0
Answer:
$2,600
Explanation:
Statement of Retained earnings
2019 2020 2021
Beginning balance $0 $1,000 $500
Add: Net Income (Loss) $1,200 ($500) $2,300
Less: Dividends $200 $0 $200
Ending balance $1,000 $500 $2,600
Note: The ending balance of each year is c/f as beginning balance for the subsequent year
solve;
i) X+10%of X =22
ii)x+20%of X=rs60
iii)X+25%ofx=rs120
iv)X=rs200+50%of X
v)X=180+10%of x
question from equation and inequality.
Answer:
[tex]i.\ x = 20[/tex]
[tex]ii.\ x = rs50[/tex]
[tex]iii.\ x = rs96[/tex]
[tex]iv.\ x =rs400[/tex]
[tex]v.[/tex] [tex]x = 200[/tex]
Explanation:
[tex]i.\ x + 10\%\ of\ x = 22[/tex]
[tex]x + 10\%\ of\ x = 22[/tex]
Represent of as *
[tex]x + 10\%\ * x = 22[/tex]
Convert % to decimal
[tex]x + 0.10\ * x = 22[/tex]
[tex]x + 0.10x = 22[/tex]
[tex]1.10x = 22[/tex]
Solve for x
[tex]x = \frac{22}{1.10}[/tex]
[tex]x = 20[/tex]
[tex]ii.\ x+20\%\ of\ x=rs60[/tex]
[tex]x+20\%\ of\ x=rs60[/tex]
Represent of as *
[tex]x+20\%* x=rs60[/tex]
Convert % to decimal
[tex]x+0.20* x=rs60[/tex]
[tex]x+0.20x=rs60[/tex]
[tex]1.20x=rs60[/tex]
Solve for x
[tex]x = \frac{rs60}{1.20}[/tex]
[tex]x = rs50[/tex]
Apply the same steps in (i) & (ii) to the following
[tex]iii.\ x+25\%\ of\ x=rs120[/tex]
[tex]x+25\%\ of\ x=rs120[/tex]
[tex]x+25\%* x=rs120[/tex]
[tex]x+0.25* x=rs120[/tex]
[tex]x+0.25x=rs120[/tex]
[tex]1.25x=rs120[/tex]
[tex]x = \frac{rs120}{1.25}[/tex]
[tex]x = rs96[/tex]
[tex]iv.\ x=rs200 + 50\%\ of\ x[/tex]
[tex]x=rs200 + 50\%\ of\ x[/tex]
[tex]x=rs200 + 50\%* x[/tex]
[tex]x=rs200 + 0.50*x[/tex]
[tex]x=rs200 + 0.50x[/tex]
[tex]x - 0.50x = rs200[/tex]
[tex]0.50x = rs200[/tex]
[tex]x = \frac{rs200}{0.50}[/tex]
[tex]x =rs400[/tex]
[tex]v.\ x=180 + 10\%\ of\ x[/tex]
[tex]x=180 + 10\%\ of\ x[/tex]
[tex]x=180 + 10\%*x[/tex]
[tex]x=180 + 0.10*x[/tex]
[tex]x=180 + 0.10x[/tex]
[tex]x-0.10x=180[/tex]
[tex]0.90x=180[/tex]
[tex]x = \frac{180}{0.9}[/tex]
[tex]x = 200[/tex]
Investment X offers to pay you $3,400 per year for nine years,whereas Investment X offers to pay you $5,400 per year five years. Which of these cash flow streams has the higher present value if the discount rate is 6 percent? If the discount rate is 22 percent?
Answer:
At 6% ; $3400 has higher present value.
At 22% ; $5400 has higher present value
Explanation:
Using the PVA formula:
PVA = C({1 - [1 / (1 + r)^t]} / r )
Where ;
C = cashflow ; r = rate ; t = time
PVA of 3400 for 9 years at 6% = 0.06
PVA = 3400({1 - [1 / (1+ 0.06)^9]} / 0.06)
PVA = 3400([1 -[ 1 / 1.06^9]) / 0.06
PVA = 3400(0.4081015 / 0.06)
PVA = 3400(6.8016922)
PVA = 23125.753
PVA of 5400 for 5 years at 6%
PVA = 5400({1 - [1 / (1+ 0.06)^5]} / 0.06)
PVA = 5400([1 - [ 1 / 1.06^5]) / 0.06
PVA = 5400(0.2527418 / 0.06)
PVA = 5400(4.2123637)
PVA = 22746.764
B.)
PVA of 3400 for 9 years at 22% = 0.22
PVA = 3400({1 - [1 / (1+ 0.22)^9]} / 0.22)
PVA = 3400[1 -[ 1 / 1.22^9]) / 0.22)
PVA = 3400 (0.8329826 / 0.22)
PVA = 3400(3.7862848)
PVA = 12873.368
PVA of 5400 for 5 years at 22% = 0.22
PVA = 5400({1 - [1 / (1+ 0.22)^5]} / 0.22)
PVA = 5400([1 - [ 1 / 1.22^5]) / 0.22
PVA = 5400 (0.6300007 / 0.22)
PVA = 5400 (2.8636397)
PVA = 15463.654
What would be the maximum cost of a CFL such that the total cost (investment plus operating) would be the same for both CFL and incandescent 60-W bulbs
Answer:
don't know bro sorry for that
which method is used to resolve disputed facts to determine the amount of an equitable adjustment when the contractor is clearly entitled to an equitable adjustment (clear proof of injury) and sufficient evidence exists for a fair approximation of the amount of the equitable adjustment (damages)
Answer:
Total cost method.
Explanation:
The total cost method is defined as the method in which the complete end-to-end cost of fixed, variable, and direct costs of manufactured produced goods and services. This method promotes a higher degree of transparency and effectiveness. This is why this method is employed to bring resolution to the disputed facts by assisting in determining the equitable adjustment amount if he is entitled to it as it involves the complete performance cost.
What type of listening would be used if Jim was trying to determine his employees' thoughts and opinions on new health-care coverage?
Answer:
precision listening
Explanation:
Precision listening is a method of listening that focuses on the points that are important to the speaker. It reveals through emotion what the speaker most wants and can bring them satisfaction.
This method is used when one wants to understand another's views on a topic.
This is the best method to use in the given scenario where Jim was trying to determine his employees' thoughts and opinions on new health-care coverage
What is the expected return of a portfolio with 75% in asset A and 25% in Asset B?
State of the economy Prob. of the state of economy Rate of return if states occurs
Boom 0.40 0.15 0.05
Bust 0.60 - 0.05 0.05
Answer: 3.5%
Explanation:
Expected return if there is a Boom:
= (0.75 * 0.15) + (0.25 * 0.05)
= 0.1250
Expected return if things go Bust:
= (0.75 * -0.05) + (0.25 * 0.05)
= -0.025
Expected return of Portfolio = ∑(Probability of market state * expected return of market state)
= (0.4 * 0.1250) + (0.6 * -0.025)
= 3.5%
Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000.Required:1. What is the company's contribution margin (CM) ratio?2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.
Answer and Explanation:
The computation is shown below:
1) The contribution margin ratio is
Contribution margin ratio = Unit Contribution margin ÷ Unit selling price
where,
Unit selling price is
= Total sales ÷ Number of units
= $200,000 ÷50,000
= $4
And,
Unit variable expense = Total variable expenses ÷ number of units
= $120,000 ÷ 50,000
= $2.4
Now
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $4 - $2.4
= $1.6
So, the contribution margin ratio is
Contribution margin ratio = $1.6 ÷ $4
= 0.4 or 40%
2)
The net operating income is
In the case when the total sales increased by $1,000
Sales $201,000
Less: variable expenses $120,600
Contribution margin $80,400
Less: Fixed costs $65,000
Net operating income $15,400
Prior increase in the sales, the net operating income is
Sales $200,000
Less: variable expenses $120,000
Contribution margin $80,000
Less: $65,000
Net operating income $15,000
So it increase by $400 i.e.
= $15,400 - $15000
= $400
Which of the following is an ethical violation in the area of finance?
O A. Keeping a financial client's activities confidential even when they
are likely to harm the finances of a close friend or relative
B. Reporting legal violations of your own company to the appropriate
government agency knowing that it could lead to serious problems
for the company
C. Selling the stock you have from the company you work for before
information about the decreased value of the stock is made public
D. Making accurate public reports of bad news that will obviously
harm the stock value of a publicly traded company
Answer:
The answer is C. Selling the stock you have from the company you work for before information about the decreased value of the stock is made public
Explanation:
Selling the stock you have from the company you work for before information about the decreased value of the stock is made public is an ethical violation.
What is an ethical violation?An ethical violation is a action which goes against the prescribed ethics or acceptable behavior.
In the finance industry, there are ethics that guides businesses.
From the given options, an ethical violation will be selling the stock you have from the company you work for before information about the decreased value of the stock is made public.
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The labor relations system in the United States attempts to serve the goals of management, labor unions, and society at large. Management is interested in controlling its labor costs, maintaining its freedom of action, and increasing productivity. These goals may lead them to vigorously oppose union representation for its employees. Labor unions attempt to give their members an independent means of ensuring that their interests at work are protected and to ensure that the terms and conditions of work are as favorable as possible to workers. To do this most effectively, they try to maximize their bargaining effectiveness. Society has an interest in peaceful relations between employers and employees because it makes for a more stable society. Encouraging and regulating the labor-management environment is seen as promoting that goal.
Roll over each item to reveal its description.
Avoid Adversity- Avoiding adversarial relationship with employees
Resolve Disputes- Resolving disputes over resource allocation in the least costly way possible
Build Membership- building membership to increase bargaining power
Maintain Control- Maintaining substantive control over the activities of the organizatio
Institutionalized Conflict- Managing conflict to reduce friction in the industrial setting
Avoiding Strikes- Avoiding the disruption to production processes a strike might cause
Equal Power- making bargaining power as equal as possible between employers and employees
Minimize cost- minimizing the cost of wages of cost and benefits
Halt Production- increasing its ability to halt or disrupt production if necessary to achieve its goals
Avoid Government- avoiding extensive government involvement in the economy
Protect Interest- Ensuring that employees interest are protected through the collective bargaining process
Independent Voice- Providing workers with an independent voice in setting the terms and conditions of their work
Answer:
Based on the descriptions, the correct columns for these items are:
Society:
Resolve DisputeInstitutionalized ConflictEqual PowerAvoid GovernmentUnions
Build membershipHalt ProductionProtect Interests Independent voiceManagement
Avoid Adversity Maintain ControlAvoiding Strikes Minimize costsJuliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in
Teaching.
Training.
Professional Support.
Administrative Support.
Answer:
I believe Administrative Support.
Explanation:
Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Juliet most likely works in Administrative Support. Thus, option (d) is correct.
What is instructors?
The term instructors refer to the providing of the instruction and the guide the direction of the team. The instructor is the main work to the instruction provided related to the task. An instructor is the good profession but, it was the required the proper knowledge and the experience.
Juliet most likely works in administrative support. The administrative support was the main role to the making copies for instructors, meeting was the recording, filing information, answering phones, handel the customers, staff, scheduling meetings, and they managed the documents and reports.
Therefore, option (d) is correct.
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Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.
Transaction Consumption Investment Government Purchases Net Exports
1. Ford sells a Mustang from its inventory to the Martinez family.
2. Ford manufactures a Focus and adds it to its inventory.
3. Your parents pay an accountant to file their tax returns.
4. Uncle John orders 10 new computers for his finance business.
5. Aunt Polly buys a new air conditioner from a domestic manufacturer.
6. Texas hires public middle school teachers.
7. Your parents buy a bottle of French wine.
8. Uncle John receives a check from the federal government for unemployment insurance benefits.
Answer:
Transactions and Components of GDP affected:
1. Ford sells a Mustang from its inventory to the Martinez family.
Consumption
2. Ford manufactures a Focus and adds it to its inventory.
Investment
3. Your parents pay an accountant to file their tax returns.
Consumption
4. Uncle John orders 10 new computers for his finance business.
Investment
5. Aunt Polly buys a new air conditioner from a domestic manufacturer.
Consumption
6. Texas hires public middle school teachers.
Government Purchase
7. Your parents buy a bottle of French wine.
Consumption and Net Exports
8. Uncle John receives a check from the federal government for unemployment insurance benefits.
None
Explanation:
a) Data:
Components of the GDP are:
Consumption: This GDP component refers to the spending made by households, not for houses.
Investment: This GDP component comprises spending on assets, not for immediate consumption but to generate future returns.
Government Purchases: This component refers to government spending for the maintenance of its services.
Net Exports: This is the difference between exports and imports of goods and services.
Note that the GDP (Gross Domestic Product) can be computed based on three main approaches: income, expenditure, and production output. These three approaches yield the same result.
Bauer Software's current balance sheet shows total common equity of $5,125,000. The company has 520,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ
Answer:
$17.64
Explanation:
Calculation for By how much do the firm's market and book values per share differ
Using this formula
Market and book values per share=[Price per share- (Total common equity/Shares of stock outstanding)]
Let plug in the formula
Market and book values per share=[$27.50 per share-($5,125,000 / 520,000)
Market and book values per share=($27.50 per share -$9.86)
Market and book values per share=$17.64
Therefore By how much do the firm's market and book values per share differ is $17.64
The nation of Pineland forbids international trade. In Pineland, you can buy 1 pound of fish for 2 pounds of pineapples. In other countries, you can buy 1 pound of fish for 1.5 pounds of pineapples. These facts indicate that
Answer: If Pineland were to allow trade, it would import fish.
Explanation:
From the question, we are told that in Pineland, one can buy 1 pound of fish for 2 pounds of pineapples while in other countries, one can buy 1 pound of fish for 1.5 pounds of pineapples.
Based on the above scenario, we can denote that buying of fish from other countries is cheaper but since there's no international trade, this isn't possible. Based on the cheapness, if Pineland were to allow trade, it would import fish.
A landlord sues a tenant for destruction of property. During the trial, the judge issues instructions to the jury to clarify what facts it must determine to issue a verdict. When in the trial process does this occur?
Answer: Jury Deliberation.
Explanation:
Jury deliberation is the method by which a jury in a court trial debates the court's findings in private and agrees about which case to agree with.
The presiding juror leads the jurors' deliberations and ballots, and regularly delivers the verdict.
Which of the following situations does NOT describe a material participant?
A. Arabella participated in Activity X for 612 hours.
B. Anthony participated in Activity Y for 210 hours, more than any other individual.
C. Abbie participated in Activity A for 20 hours, Activity B for 80 hours and Activity C for 75 hours
D. Raj was a full-time employee at the law firm, Activity Q. from 2008 to 2018.
Answer:
C. Abbie participated in Activity A for 20 hours, Activity B for 80 hours and Activity C for 75 hours
Explanation:
To prove material participation, one of the following situation should be satisfied:
1. Work 500 hours or more during the year (Part A)
2. Participate in the activity for more than 100 hours during the year, with no one else working more than the individual (Part B)
3. Materially participate in the activity for any five taxable years during the 10 tax years immediately preceding the taxable year (Part D)
Hence, it can be concluded that none of the conditions are satisfied in Part C.
The correct answer is C.
To prove material participation, one of the below situations should be fulfilled:
Work 500 hours or more during the year (Part A) .Participate in the activity for more than 100 hours during the year, with no one else working more than the individual (Part B) Materially participate in the activity for any five taxable years during the 10 tax years immediately preceding the taxable year (Part D)
Hence, it can be concluded that none of the conditions are satisified in Part C.
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Holding all other things constant, a higher price for ski lift tickets would A. increase the number of skiers. B. increase the price of skis. C. decrease the number of skis sold. D. decrease the demand for other winter recreational activities.
Answer: C. decrease the number of skis sold.
Explanation:
Following the Law of Demand which states that if the price of a god increases, the quantity demanded for that good and complimentary goods will decrease.
People would only buy Ski lift tickets if they had skis. If people find out that after buying skis, they would have to buy ski lift tickets that are now more expensive, they would decline to buy skis in the first place so as not to incur the additional ski lift charge which is now higher.
You were hoping for more input from the team. There may be a big production increase if TriState can win a new contract from the client. You have decided to try to open the lines of communication with your employees. How are you going to accomplish this?
Explanation:
In order to establish a more effective communication, it is necessary that the manager be more assertive, that is, it is ideal that he be able to transmit the information he wants in an honest and direct way, without appearing rude, but with a transparency that inspires confidence to employees, generating greater identification and motivation to achieve the objectives.
In this case, it is ideal that the manager knows how to integrate his team through feedbacks, incentives and demonstration of the benefits that will bring to the whole team, such as when getting a new client contract. It is ideal to know your team and the personality profile of each member, working on the potential of each one so that your skills are beneficial and add greater efficiency and innovation to the group.
Assume that the future value of an ordinary annuity is $3,246, the annual payment is $1,000, and the interest rate is 8 percent. How many years will it take the $1,000 annual payments to grow to $3,246?
a. 1 year
b. 3 years
c. 5 years
d. 7 years
Answer: b. 3 years
Explanation:
Based on the future value of $3,246 and the annual payment of $1,000, one can guess that the number of payments (years) till the future value is reached will be 3 years.
Plug 3 years in to find out if you are right;
= Annuity * (( (1 + r)^n - 1) / r)
= 1,000 * (( ( 1 + 8%)³ - 1) / 8%)
= $3,246
Answer is proven to be 3 years.
Given the vast resources available to mutual fund managers, these managers on average have generally: Multiple Choice outperformed the overall market on a risk-adjusted basis. eliminated excess profits for arbitrageurs. beat broad-based indexes. proved the market to be strong form efficient. underperformed the market on a risk-adjusted basis.
Answer: underperformed the market on a risk-adjusted basis.
Explanation:
A mutual fund manager is someone who implements a investment strategy for a fund and helps.in the management of the trading activities as well. They simply help in overseeing the mutual funds and also help in making vital decisions regarding such investments.
Given the vast resources available to mutual fund managers, these managers on average have generally underperformed the market on a risk-adjusted basis. They've not been able to beat the market while some have even run at a loss as they made bad investment decisions.
How would you build a culture of quality in an organization such as arnold palmer hospital?
Explanation:
An organizational culture must be based on values of integrity, ethics and reliability. Through these values, organizations achieve several benefits that directly impact the internal and external environment.
Integrity can be understood as the company's non-negotiable values, such as compliance with legal and human requirements that protect its employees and customers.
Ethics must be applied to all organizational processes and in all hierarchies, the relationship between boss and employees, as well as with suppliers and customers must be based on ethical values that promote equality, respect and security of the rights of each individual.
And reliability is achieved through good practices in society and well-established values, which demonstrate good corporate governance and socio-environmental development practices.
In a hospital, for example, it is necessary for the organizational culture to be based on excellent service, in addition to effective communication, reliable professionals, quality equipment, problem solving staff, hygiene, etc., which are values that demonstrate the values and commitment of the institution with patient health and public service.
Which of the following best states the principle that guides whether or not an expenditure should be capitalized (debited to an asset account) when a new asset is acquired?
a. The fair value of the asset less an allowance for normal wear and tear should be capitalized.
b. Purchase prices should be capitalized, but no other costs.
c. All costs necessary to get the asset ready for its intended use should be capitalized.
d. All amounts paid for in cash should be capitalized.
Answer: c. All costs necessary to get the asset ready for its intended use should be capitalized.
Explanation:
All costs that were necessary to get the assets ready to fulfil its purpose should be capitalized. These include, in the case of fixed assets, the cost price, taxes, transportation costs, as well as installation costs.
These costs will be added to the cost of the asset and recorded as such in the financial statements because they contributed to the long term usefulness of the asset.
A Kred score metric identifies with the ________ goal for social media metrics. Question 4 options: A) brand awareness B) conversion rate
Incomplete question. The Options;
a. user engagement
b. key performance indicator
c. web site traffic
d. conversion rate
e. brand awareness
Answer:
e. brand awareness
Explanation:
Note, we are looking at the application of Kred score in business promotion using social media. Since brand influencers often use Kred to measure how much Influence they have, it rightly identifies with the goal for social media metrics.
By means of these metrics, For example, a smartphone company can easily track how many people have recently viewed their video ad of its new smartphone model.
Write 2-3 short paragraphs about the marketing message you will use and why you chose this message. Why does it appeal to your target market
Explanation:
A marketing message that is highly regarded in today's world, is one that manages to demonstrate business values in the form of procedures, products and services that contain added value in addition to the purely profitable.
As an example that would write a marketing message about a new clothing brand, it would include information that demonstrates that the manufacturing process and raw materials used in making the clothing is sustainable and has a low impact on the environment.
This is a strategy that increases the perception of stakeholders in relation to products, a brand that actually has parameters of sustainability in its processes can demonstrate them through its marketing messages to create value and greater reliability in the brand, being a great differential for consumers.
Warner Company purchases $50,100 of raw materials on account, and it incurs $61,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $24,100 of the raw materials and $36,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.
Journalize the assignment of overhead to the Assembly and Finishing Departments.
Account Titles and Explanation Debit Credit
Answer:
Date Account Titles and Explanation Debit Credit
WIP - Assembly department $57,600
WIP - Finishing department $40,000
Manufacturing overhead $97,600
(To assign overheads to assembly and finishing department)
Explanation:
Labor cost assigned to assembly = $36,000
Labor cost assigned to finishing = $61,000 - $36,000 = $25000
Manufacturing cost assigned to assembly = $36,000 *160% = $57600
Manufacturing cost assigned to finishing = $25000 * 160% = $40000