Contribution Income Statement and Cost-Volume-Profit Graph
Kopi Company produces dog cages that are sold for $35 per unit. The company produced and sold 7,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow.
Variable Costs per Unit Fixed Costs per Month
Manufacturing: Manufacturing overhead $35,000
Direct materials $10 Selling and administrative 15,000
Direct labor 2 Total $50,000
Manufacturing overhead 5 $17
Selling and administrative 5
Total $22
Required
Prepare a contribution income statement for July.
Do not use any negative signs with your answers.
Kopi Company
Contribution Income Statement
For the Month of July 2017
Sales $ Answer
Less variable costs
Direct materials $ Answer
Direct labor Answer
Manufacturing overhead Answer
Selling and administrative Answer Answer
Contribution margin Answer
Less fixed cost:
Manufacturing overhead Answer
Selling and administrative Answer Answer
Profit $ Answer
Answers
Answer:
Profit: $ 41,000
Explanation:
Kopi Company
Contribution Income Statement
For the Month of July 2017
Sales 35*7000 $ 245000
Less variable costs
Direct materials $ 10*7000 70,000
Direct labor 2*7000 14000
Manufacturing overhead 5*7000 35000
Selling and administrative 5*7000 35000
Contribution margin 91,000
Less fixed cost: 50,000
Manufacturing overhead 35000
Selling and administrative 15000
Profit $ 41,000
In contribution margin income staatement the variale costs are deducted from the sales to get the contribution margin and the fixed expenses are deducted to get the profit.
As there are no ending and beginning inventories the profit will not change under both absorption and variable costing.
Related Questions
Mathys Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants "to get everything straightened out." Consequently, she has proposed the following accounting changes in connection with Mathys Inc.'s 2017 financial statements.1. At December 31, 2016, the client had a receivable of $820,000 from Hendricks Inc. on its balance sheet. Hendricks Inc. has gone bankrupt, and no recovery is expected. The client proposes to write off the receivable as a prior period item.2. The client proposes the following changes in depreciation policies.(a) For office furniture and fixtures, it proposes to change from a 10-year useful life to an 8-year life. If this change had been made in prior years, retained earnings at December 31, 2016, would have been $250,000 less. The effect of the change on 2017 income alone is a reduction of $60,000.(b) For its new equipment in the leasing division, the client proposes to adopt the sum-of-the-years'-digits depreciation method. The client had never used SYD before. The first year the client operated a leasing division was 2017. If straight-line depreciation were used, 2017 income would be $110,000 greater.3.In preparing its 2016 statements, one of the client's bookkeepers overstated ending inventory by $235,000 because of a mathematical error. The client proposes to treat this item as a prior period adjustment.4. In the past, the client has spread preproduction costs in its furniture division over 5 years. Because its latest furniture is of the "fad" type, it appears that the largest volume of sales will occur during the first 2 years after introduction. Consequently, the client proposes to amortize preproduction costs on a per-unit basis, which will result in expensing most of such costs during the first 2 years after the furniture's introduction. If the new accounting method had been used prior to 2017, retained earnings at December 31, 2016, would have been $375,000 less.5. For the nursery division, the client proposes to switch from FIFO to LIFO inventories because it believes that LIFO will provide a better matching of current costs with revenues. The effect of making this change on 2017 earnings will be an increase of $320,000. The client says that the effect of the change on December 31, 2016, retained earnings cannot be determined.6. To achieve an appropriate recognition of revenues and expenses in its building construction division, the client proposes to switch from the completed-contract method of accounting to the percentage-of-completion method. Had the percentage-of-completion method been employed in all prior years, retained earnings at December 31, 2016, would have been $1,075,000 greater.Instructions(a) For each of the changes described above, decide whether:(1) The change involves an accounting principle, accounting estimate, or correction of an error.(2) Restatement of opening retained earnings is required.(b) What would be the proper adjustment to the December 31, 2016, retained earnings?
Answers
Answer:
Mathys Inc.
a. (1) Change in accounting principle, accounting estimate, or correction of an error:
1. Write-off of Accounts Receivable = Change in accounting estimate
2. Changes in depreciation policies = Changes in accounting estimate for the office furniture and the introduction of the sum-of-years' digit for the new leasing division's equipment.
3. Overstated Ending Inventory = Correction of an error
4. New accounting method for pre-production costs = Change in accounting estimate
5. Change from FIFO to LIFO = Change in accounting principle
6. Change from completed-contract method of accounting to the percentage-of-completion method = Change in accounting principle
a. (2) If Restatement of opening retained earnings is required:
1. No restatement of opening retained earnings is required.
2. No restatement of opening retained earnings is required.
3. Restatement of opening retained earnings is required.
4. No restatement of opening retained earnings is required.
5. Restatement of opening retained earnings is required.
6. Restatement of opening retained earnings is required.
b) December 31, 2016 Retained Earnings Adjustments:
3. Debit Retained Earnings = ($235,000)
5. Debit Retained Earnings = ($320,000)
6. Credit Retained EArnings = $1,075,000
Net effect on 2016 Retained Earnings = an increase of $520,000
Explanation:
a) Data:
1. December 31, 2016 Write-off of Receivable (Hendricks Inc.) = $820,000
2. Changes in depreciation policies:
a) Office Furniture and Fixtures 10-year to 8-year useful life: Effect on Retained Earnings at December 31, 2016 = $250,000 less. Effect on 2017 Income = $60,000 less.
b) Equipment: sum-of-the-years' digits depreciation method: Effect on 2017 income = $110,000 more.
3. Ending inventory for 2016 overstated by $235,000 Prior period adjustment.
4. Preproduction costs for furniture division: New accounting method. Effect on 2016 Retained earnings = $375,000 less.
5. Inventories for Nursery division, from FIFO to LIFO to match current costs with revenues. Effect on 2017, an increase in Earnings = $320,000.
6. Building Construction Division from completed-contract method of accounting to the percentage-of-completion method. Effect on Retained Earnings 2016 = $1,075,000 greater.
b) Mathys Inc. must correct accounting errors by adjusting previously issued financial statements retrospectively. An example of an accounting error is the overstatement of the ending inventory by $235,000. This implies that the 2016 Retained Earnings were overstated.
c) A good example of a change in accounting estimate is the change Mathys Inc. made of the office furniture's useful life from 10 years to 8. Such changes are not applied retroactively to prior years' financial statements.
d) When Marthys Inc. change the inventory valuation method from LIFO to FIFO, it made a change in an accounting principle. Such principle changes are done retroactively, with the restatement of the financial statements.
"Mr. Bergh sent the firm's then top 60 managers six questions about the pros and cons of the business - and started interviewing each of them." Why would Mr. Bergh ask his managers questions about the pros and cons of the business? What type of information was he attempting to retrieve in his interview process? Do you feel that this is an effective way of communication from a leadership perspective?
Answers
Mr. Bergh asked his managers about the pros and cons of the business to gather valuable insights, encourage collaboration, and enhance organizational performance, making it an effective communication approach from a leadership perspective.
Mr. Bergh likely asked his managers questions about the pros and cons of the business to gain valuable insights and feedback from those who have a deep understanding of the organization's operations. By seeking input from the top 60 managers, he could gather a comprehensive perspective on the strengths and weaknesses of the business.
In his interview process, Mr. Bergh was likely attempting to retrieve information about various aspects of the business, such as identifying areas of improvement, understanding challenges faced by the managers, exploring potential opportunities, and gathering ideas for strategic decision-making.
By asking specific questions, he could assess the managers' knowledge, critical thinking, and problem-solving abilities. The goal would be to obtain actionable insights that could inform the company's future direction and enhance its performance.
From a leadership perspective, this approach can be highly effective. Engaging with managers and soliciting their opinions demonstrates a collaborative and inclusive leadership style.
It empowers managers by involving them in decision-making processes and signaling that their expertise and perspectives are valued. It also fosters a culture of open communication, encourages creativity, and enables the organization to tap into the collective intelligence of its top management.
However, the effectiveness of this approach depends on the receptiveness of the managers, the level of trust and psychological safety within the organization, and how the collected feedback is utilized.
It is essential for leaders to create an environment where managers feel comfortable expressing their views and ensure that the information gathered is acted upon or considered in decision-making processes. Regular and transparent communication should follow to close the feedback loop and demonstrate a commitment to continuous improvement.
In summary, asking managers about the pros and cons of the business and conducting interviews can be an effective way for a leader to gather valuable insights, foster collaboration, and enhance organizational performance when accompanied by a supportive leadership style and a commitment to act upon the feedback received.
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a series of well-defined phases performed in sequence that serves as a framework for developing an information system or project.
Answers
also known as the "waterfall model." It's a series of well-defined phases performed in a sequence that serves as a framework for developing a system or project. They aren't employees but use the system; they include customers, contractors, suppliers, and other business partners.
Keyser Mining is considering a project that will require the purchase of $980,000 in new equipment. The equipment will be depreciated straight-line to a zero book value over the 7-year life of the project. The equipment can be scraped at the end of the project for 5 percent of its original cost. Annual sales from this project are estimated at $420,000. Net working capital equal to 20 percent of sales will be required to support the project. All of the net working capital will be recouped. The required return is 16 percent and the tax rate is 35 percent. What is the amount of the after-tax salvage value of the equipment?
A. $17,150
B. $31,850
C. $118,800
D. $237,600
E. $343,000
Answers
The amount of the after-tax salvage value of the equipment is $31,850. Option B
How to find the amount of the after-tax salvage value of the equipment?To determine the after-tax salvage value of the equipment, we need to calculate the salvage value at the end of the project and then apply the tax rate.
Therefore, the salvage value is:
Salvage Value = 5% of $980,000
= 0.05 * $980,000
= $49,000
The tax rate is given as 35 percent, so we can calculate the after-tax salvage value as:
After-Tax Salvage Value = Salvage Value - Tax on Gain
= $49,000 - (Tax Rate * Gain)
= $49,000 - (0.35 * $49,000)
= $49,000 - $17,150
= $31,850
Therefore, the amount of the after-tax salvage value of the equipment is $31,850.
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What are the steps an Involver follows for planning
Answers
There are several steps that an Involver follows for planning a business, the essential being the establishment of objectives and goals.
What are the planning steps?Planning corresponds to the course of action necessary to achieve objectives and goals, helping to better organize, control and correct the actions taken. The steps are:
Environmental scanStrategy formulationStrategic implementationStrategy assessmentTherefore, those involved must follow the necessary steps to carry out an organizational planning focused and aligned with the company's needs and values.
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Differentiate foreign investment from the types of aid provided by the UNDP and world bank, citing specific examples of aid from both.
Answers
Foreign investment is in domestic companies and assets in another country and made by foreign investors like your participation (ownership stakes) in firm. The types of aid provided by the World Bank are funding, policy advice and technical assistance to developing country governments.
What are foreign investments and their types?A foreign investment is an investment by a foreign investor in a domestic company or property in another country. Large multinationals will look for new opportunities for economic growth by opening branches and expanding investments in other countries.
Types of Foreign Investment in India: Foreign funds can be invested in equity, real estate, ownership/management, or cooperation. Foreign Direct Investment (FDI) Foreign Portfolio Investment (FPI). Foreign Institutional Investment (FII)
What is an example of foreign investment?A major Australian mining company buys a small Angolan company in order to diversify. Both are examples of foreign direct investment, where the business decision to become involved in some way or to have an interest in a company is made by an investor based outside the border.
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What is a standard of living?
A. The lowest level in a social class
B. The ability to provide for your needs and wants
C. The arrangement of people in a society
D. A list of purchases you hope to make in your lifetime
Answers
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7,2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorce from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2019. In addition, in January 2019, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2019 is $150,000. He is an executive working for Cherry.Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society.Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives salary of $42,000 in 2019. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They received $1,900 refund on their 2018 state income taxes. They claimed the standard deduction on their 2018 Federal income tax return. Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2019. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Compute the Old's net tax payable (or refund due) for 2019. Suggested software: ProConnect Tax Online
Answers
To compute the Olds' net tax payable (or refund due) for 2019, we need to gather all the relevant information and calculate their taxable income, apply the appropriate tax rates, deductions, and credits. Since the tax calculation involves various factors and tax laws, it would be best to use tax software such as ProConnect Tax Online or consult with a tax professional. The software will streamline the process and ensure accurate calculations based on the specific tax laws and regulations applicable to the Olds' situation.
The postal service of St. Vincent, an island in the West Indies, recently introduced a limited edition deluxe souvenir sheet priced at $15.00 each. The initial market response was quite positive, with an increase in unit sales compared to the regular souvenir sheets. The postal service sold a total of 50,000 units of the deluxe souvenir sheet.
Based on the given information, calculate the following:
What was the postal service's increase (decrease) in total contribution margin when it sold 50,000 deluxe souvenir sheets at $15.00 each, compared to selling 80,000 regular souvenir sheets at $8.00 each?
By what percentage did the St. Vincent post office increase the selling price for the deluxe souvenir sheet compared to the regular souvenir sheets? Additionally, calculate the percentage increase in unit sales for the deluxe souvenir sheet compared to the regular souvenir sheets. (Round your answers to one-tenth of a percent.)
If the postal service wants to maintain the same total contribution margin per unit for the deluxe souvenir sheets as it did for the regular souvenir sheets, what selling price should they set for the deluxe souvenir sheet? (Round your answer to the nearest whole dollar.)
Calculate the number of deluxe souvenir sheets the postal service would need to sell at the price determined in question 3 to equal the total contribution margin earned by selling 80,000 regular souvenir sheets at $8.00 each. (Round your answer to the nearest whole number.)
Please show your calculations and provide explanations for each answer.
Answers
1. the postal service experienced an increase in total contribution margin of $7.00
2. The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.
3. The postal service should set the selling price for the deluxe souvenir sheet at $15.00
4. The exact number of deluxe sheets is 45.
Calculation of the increase (decrease) in total contribution margin:
The contribution margin is calculated as the selling price minus the variable cost per unit. Given the information, we have:
Selling price of regular souvenir sheets: $8.00
Selling price of deluxe souvenir sheets: $15.00
Number of regular souvenir sheets sold: 80,000
Number of deluxe souvenir sheets sold: 50,000
To calculate the increase (decrease) in total contribution margin, we need to compare the contribution margin of the two scenarios:
Contribution margin regular souvenir sheets = Selling price - Variable cost
= $8.00 - Variable cost
Contribution margin deluxe souvenir sheets = Selling price - Variable cost
= $15.00 - Variable cost
To find the increase (decrease), we'll subtract the contribution margin of regular souvenir sheets from that of deluxe souvenir sheets:
Increase (decrease) in contribution margin = Contribution margin deluxe - Contribution margin regular
= ($15.00 - Variable cost) - ($8.00 - Variable cost)
= $15.00 - $8.00
= $7.00
So, the postal service experienced an increase in total contribution margin of $7.00 when selling 50,000 deluxe souvenir sheets compared to selling 80,000 regular souvenir sheets.
2. Calculation of the percentage increase in selling price and unit sales:
Percentage increase in selling price = [(Selling price deluxe - Selling price regular) / Selling price regular] * 100
= [(15.00 - 8.00) / 8.00] * 100
= 87.5%
Therefore, the St. Vincent post office increased the selling price for the deluxe souvenir sheet by 87.5% compared to the regular souvenir sheets.
Percentage increase in unit sales = [(Unit sales deluxe - Unit sales regular) / Unit sales regular] * 100
= [(50,000 - 80,000) / 80,000] * 100
= -37.5%
The unit sales for the deluxe souvenir sheets decreased by 37.5% compared to the regular souvenir sheets.
3. Calculation of the selling price for the deluxe souvenir sheet to maintain the same total contribution margin per unit:
To maintain the same total contribution margin per unit, the selling price for the deluxe souvenir sheet should be equal to the selling price for the regular souvenir sheet plus the increase in contribution margin per unit:
Selling price deluxe = Selling price regular + Increase in contribution margin
= $8.00 + $7.00
= $15.00
So, the postal service should set the selling price for the deluxe souvenir sheet at $15.00 to maintain the same total contribution margin per unit.
4. Calculation of the number of deluxe souvenir sheets to be sold to equal the total contribution margin earned from selling 80,000 regular souvenir sheets:
Total contribution margin from selling regular souvenir sheets = Contribution margin regular * Number of regular sheets sold
= ($8.00 - Variable cost) * 80,000
To calculate the number of deluxe souvenir sheets to be sold, we'll set the total contribution margin equal to that of regular sheets and solve for the number of deluxe sheets:
Contribution margin deluxe * Number of deluxe sheets = Contribution margin regular * Number of regular sheets
($15.00 - Variable cost) * Number of deluxe sheets = ($8.00 - Variable cost) * 80,000
Simplifying the equation:
Number of deluxe sheets = (Contribution margin regular * Number of regular sheets) / (Contribution margin deluxe)
= ($8.00 - Variable cost) * 80,000 / ($15.00 - Variable cost)
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A married couple with only one spouse currently working outside the home plans to retire in several years. An annuity that would be particularly suitable for saving for that retirement would be:_________
a. a straight life annuity on the life of the working spouse,
b. a straight life annuity on the life of the nonworking spouse,
c. a deferred joint and survivor annuity,
d. an immediate joint and survivor annuity.
Answers
Answer:
b i'm not sure but don't go by my answer please i don't want to get u wrong
Explanation:
Who is most likely to be treated with deference, such as always getting the best seat in the conference room during meetings? vice president of sales sales rep sales assistant sales manager
Answers
Answer: sales manager
Explanation:
Answer:
Vice PresPresident of sales
Explanation:
i took the test 100%
Assume the following information for a company with only two products: Product A Product B Total Sales $ 600,000 $ 400,000 $ 1,000,000 Variable expenses $ 200,000 $ 100,000 $ 300,000 If the break-even sales point is $580,000, then what is the total amount of fixed expenses
Answers
Answer: $406,000
Explanation:
The following can be deduced from the question:
Total sales = $1,000,000
Variable cost = $300,000
Contribution = Sales - Variable cost
= $1,000,000 - $300,000
= $700,000
Contribution ratio = $7000,00/$1,000,000 × 100 = 70%
Fixed cost = $580,000 × 70%
= $580,000 × 0.7
= $406,000
(More than 1 answer)Which of the following collect and evaluate career outlook information: Internal Revenue Service
U.S. Department of Labor
Colleges and universities
State departments of education.
Answers
Answer: U.S. Dept. of Labor, Universities, and Colleges, as well as, State Department of Education collect and evaluate career outlook information.
Explanation:
The collect and evaluate career outlook information: Internal Revenue Service are U.S. Department of Labor, State departments of education & Colleges and universities.
What do you mean by the career outlook?The word "job outlook" refers to the projection of the expected change in a specific occupation. This forecast is typically made based on how many individuals are anticipated to work in a particular occupation over a certain amount of time, such five or ten years.
The job outlook is a projection of how many people will be working in a specific occupation over a given time period, such as two years, five years, or 10 years.
Therefore, the collect and evaluate career outlook information: Internal Revenue Service are U.S. Department of Labor, State departments of education & Colleges and universities.
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What is the formula for wacc?
Answers
Answer:
See attached image.
Explanation:
Why would a business owner chose a party er distribution channel?
Answers
A business owner may choose a party or distribution channel when they want to leverage the expertise and resources of a third-party intermediary to distribute their products or services. By partnering with a party, such as a distributor or wholesaler, the business owner can benefit from their established networks, market knowledge, and logistical capabilities.
Engaging a party distribution channel can offer several advantages to a business owner. Firstly, it allows them to tap into the existing distribution infrastructure of the third-party. This can include established relationships with retailers, access to multiple markets or regions, and efficient supply chain management. By leveraging these capabilities, the business owner can reach a wider customer base and potentially increase sales.
Secondly, partnering with a party distribution channel can help reduce the business owner's operational burden. The third-party takes on responsibilities such as inventory management, warehousing, order fulfillment, and even marketing and promotional activities. This allows the business owner to focus on their core competencies, such as product development or customer relationship management.
Additionally, a party distribution channel can provide valuable market insights and feedback. The intermediary is in direct contact with retailers and customers, giving the business owner access to information about consumer preferences, market trends, and competitor activities. This information can inform business decisions and strategies for future growth.
Overall, a party distribution channel offers convenience, expertise, and market reach to business owners, enabling them to expand their distribution capabilities and focus on their core business functions.
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(5 points)
Willie's Hot Dogs had sales last year of $250,300 and a guest count of 76,079.
Sales this year were $280,750 with a guest count of 83,556.
What was Willie's guest count percentage variance?
Answers
Willie's guest count percentage variance is 9.82%.
How to calculate guest count percentageTo calculate the guest count percentage variance
Use the following formula:
Guest count percentage variance = [(current year guest count - prior year guest count) / prior year guest count] x 100%
Guest count percentage variance = [(83,556 - 76,079) / 76,079] x 100%
Guest count percentage variance = (7,477 / 76,079) x 100%
Guest count percentage variance = 0.0982 x 100%
Guest count percentage variance = 9.82%
Therefore, Willie's guest count percentage variance is 9.82%.
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What can people do better to make a better place in this earth
Answers
Answer:
not be so selfish and quit worrying about materialistic things and worry about the better being of others but be kind n respectful to your self at the same time
Identify what constitute the combination of traits, which result from the interaction of genes and environment.
O personality
O locus of control
O ethnocentrism
O perception
Answers
Answer:
Personality
Explanation:
the combination of traits, which result from the interaction of your genes and your environment, they constitute your personality.
The personality from the interaction of genes and environment.
What is combination of traits?It could involve anything from managing a team of people to swaying opinions and guiding an organization's development.
Whatever your personal definition of leadership may be, we can all agree on one thing: Great leaders regularly exhibit certain characteristics as opposed to mediocre ones.
Effective leaders play a critical role in ensuring that people are inspired, engaged, and properly prepared to provide their best work at all levels of a business.
Therefore, The personality from the interaction of genes and environment.
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In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 600 units at $10 on January 8, and (3) 930 units at $11 on January 29. Assume 1,130 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 800 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Answers
Answer:
(a) FIFO
Cost of Goods Sold = $6,800
Ending Inventory = $12,230
(b) LIFO
Cost of Goods Sold = $7,400
Ending Inventory = $11,630
(c) weighted average cost
Cost of Goods Sold = $7,040
Ending Inventory = $11,990
Explanation:
Perpetual inventory method ensures that cost of sales and inventory value is determined after each and every transaction.
FIFO
This method assumes that the units to arrive first, will be sold first. This means the cost of sales is based on the earlier (old) prices and inventory valuation is based on recent (later) prices.
Cost of Goods Sold = 400 x $7 + 400 x $10 = $6,800
Ending Inventory = 200 x $10 + 930 x $11 = $12,230
LIFO
This method assumes that the units to arrive last , will be sold first. This means the cost of sales is based on the recent (later) prices and inventory valuation is based on earlier (old) prices.
Cost of Goods Sold = 600 x $10 + 200 x $7 = $7,400
Ending Inventory = 200 x $7 + 930 x $11 = $11,630
Weighted Average Cost Method
A new unit cost is calculated with each and every purchase made. This new unit cost is then used to determine the cost of goods sold and the value of inventory.
New Unit Cost - 8 jan = (400 x $7 + 600 x $10) ÷ 1,000 = $8.80
New Unit Cost - 29 jan = (200x $8.80 + 930 x $11) ÷ 1,130 = $10.61
therefore,
Cost of Goods Sold = 800 x $8.80 = $7,040
Ending Inventory = 1,130 x $10.61 = $11,990
What are the common barriers to communication?
Answers
The income statement can help a business do which of the following?
Answers
Explanation:
An income statement helps business owners decide whether they can generate profit by increasing revenues, by decreasing costs, or both. It also shows the effectiveness of the strategies that the business set at the beginning of a financial period
Kendra makes custom baby quilts embroidered with the baby’s name and date of birth. Although quilts can be partially completed in advance, all quilts remain in the Work in Process Inventory account until the final embroidery is completed. Quilt BBGR12 was completed in July. At the beginning of July, costs accumulated on the quilt were direct materials of $50, direct labor of $75, and overhead of $20. Completing the quilt required 2.5 hours of direct labor at $12 per hour. Overhead is applied at $3 per direct labor hour. What is the total cost on the job cost sheet for Job BBGR12 at the end of July? (Show your work.)
Answers
Answer:
$182.50
Explanation:
Calculation of the total cost on the job cost sheet for Job BBGR12
Manufacturing Costs Schedule
Beginning Work In Process Inventory :
Direct Materials $50.00
Direct labor of $75.00
Overhead of $20.00
Incurred during the year :
Direct labor (2.5 hours × $12) $30.00
Overheads (2.5 hours × $3) $7.50
Total cost on the job cost sheet $182.50
c) “Shadow price is the increase in value created by having one additional unit of a limiting resource at original cost”. Provide a comprehensive real world example of where a shadow price can be calculated with multiple limiting factors and with more than one product. Your answer should be in a form of a short case study roughly 4 or 5 sentences. (5 marks)
Answers
A real world example of shadow pricing would be in a case where a manufacturer produces two product A and B with 2 input such as raw materials and labor.
How is this so?Two products (A & B) are produced through the use of two primary resources: labor & raw materials. To produce one unit of product A, we require roughly an hour's worth (60 minutes) of work time from our available pool.
Also, approximately two pounds worth of our current stockpile must be incorporated into each instance as well. Comparatively speaking, producing one unit from group B takes almost three times that much effort (3 hours' time), but only requires about half as much by weight (a single pound).
Our maximum allowance stands at exactly 60 work-hours across all levels plus another hundred pounds maximum in terms concerning these earthly elements - with that established pricing amounts to a flat rate where five dollars buys us one metric pound whereas ten dollars goes towards hourly wages; so what is their shadow price?
When dealing with limited input availability, the optimal allocation of resources and production process optimization can be achieved using shadow prices. In this regard, it has been determined that labor's shadow price stands at $10 per hour while the shadow price for raw materials is set at $5 per pound.
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Stephanie notices that it is staring to get windy outside. The wind is moving from the north to the south. What is the cause of the wind
Answers
Wind is caused by air moving from high pressure areas to low pressure areas. Stephanie's observation of wind moving from north to south indicates that the wind is a type of polar easterly wind.
Stephanie notices that it is starting to get windy outside. The wind is moving from the north to the south. Wind is caused by air moving from high pressure areas to low pressure areas. Wind is the motion of the air molecules in the atmosphere that moves from the place where there is higher air pressure to the place where there is lower air pressure.
The earth is warmed by the sun's energy, which is not uniform throughout the earth's surface. It is warmer near the equator and cooler near the poles. This difference in temperature causes differences in air pressure, which then creates winds that blow from the cooler areas toward the warmer areas. Winds are classified according to the direction from which they come. The prevailing wind is the direction from which the wind most commonly blows.
Trade winds are winds that blow from east to west between the equator and 30 degrees latitude. Prevailing westerlies blow from west to east between 30 and 60 degrees latitude, and polar easterlies blow from east to west between 60 degrees latitude and the poles. Therefore, Stephanie's observation of wind moving from north to south indicates that the wind is a type of polar easterly wind.
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If the market risk premium increased to 5%, what would happen to the stock's required rate of return
Answers
Answer:
a. 1.5
b. Required rate of return would increase by 3% to 12%
Explanation:
a. According to the Capital Asset Pricing Model,
Required return = Risk free rate + beta *market premium
9% = 4.5% + beta * 3%
Beta * 3% = 9% - 4.5%
Beta = (9% - 4.5%)/3%
= 1.5
b.
= 4.5% + 1.5 * 5%
= 12%
The required return would increase by 3%
state 2 sources of income from sales for a pizzeria
Answers
Two sources of income from sales for pizzerias include:
Sales of pizzas and other pastries Sales of drinks and refreshments How do pizzerias make money?Pizzerias as the term implies, are places that make and sell pizzas. This means that their chief source of income from sales would be the sale of pizzas. They also make sales of other pastries such as calzones and bread on occasion.
Pizzerias also sell drinks and liquid refreshments for customers to consume when eating the pizzas so this is another source of income from sales for pizzerias.
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Itzair has completed the balance sheet for his business. What is one question the balance sheet answers about the business?
COA.
"How much debt does my business have?"
OB. "Who do I owe for my cost of goods sold?"
OC. "What percentage of sales tax is required?"
COD. "Did I meet my end-of-year profit goals?"
)
Answers
The question that balance sheet answers about the business is "How much of debt does my business have?".
What is a balance sheet?A balance sheet is financial statement that reports company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of a company's financial position and helps investors and stakeholders understand the company's financial health. The assets section of the balance sheet includes items such as cash, investments, inventory, and property. The liabilities section includes items such as loans, accounts payable, and taxes owed. The equity section includes items such as retained earnings and stockholders' equity. The balance sheet is important because it provides insights into a company's financial stability, liquidity, and ability to meet its obligations. It is commonly used by investors, analysts, and creditors to evaluate a company's financial health and make informed decisions.
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35
BSBHRM614_Learner Workbo...
TION
A
Report Template (completed)
You will play the role of Zane O'Brien to research and analyse future
workforceneeds at CBSA.
Based on the email, review the staff audit results on staff turnover and
demographics, the summary of the Strategic Plan which contains the strategic
objectives of the organisation, and the organisation's policies and procedures
including the BD001 Business Plan. Then using the Report Template, develop
andsubmit a report where you are to:
1. Detail workforce trend analysis of the organisation. You should provide:
an overview of the departments that CBSA uses
an overview of the current number of employees including their
employmenttype (full-time, part-time, etc.)
the services CBSA currently offers and those that it intends to offer
(.
■ analysis of the demographics and education level of the employees
analysis of staff turnover from the last year
the number of new human resources required for the coming year.
2. Detail the future workforce needs by outlining:
■ the job role
the number of employees required for the job role
■ the skills required for the job role
what option(s) should be used to source the job role.
3. Detail the technology considerations by outlining:
the current technology used by the organisation
any different technology that could be implemented to increase
productivitywhich may impact on job roles/design/skills.
4. Detail legislation and industrial considerations by outlining:
an overview of the major policies and procedures used by the
organisationand the legislation they relate to
research and detail any recent or impending legislation or
industrialchanges that may affect the organisation in some
capacity.
Answers
This report has provided an overview of the workforce needs at CBSA, including workforce trend analysis, future workforce needs, technology considerations, and industrial and legislative considerations.
What informs the analysis of the workforce needs at CBSA?Report on Workforce Needs Analysis at CBSA
Executive Summary
The purpose of this report is to provide a detailed analysis of the workforce needs at the Canadian Border Services Agency (CBSA). This report outlines the current workforce trends, future workforce needs, technology considerations, and industrial and legislative considerations at CBSA. This report also provides recommendations on how to address the identified workforce gaps.
Workforce Trend Analysis
1.1 Overview of Departments at CBSA
CBSA operates several departments that are responsible for various services such as border control, immigration, customs, and revenue collection. These departments include the Operations Branch, the Intelligence and Enforcement Branch, the Corporate Affairs Branch, and the Programs Branch.
1.2 Overview of Current Employees
As of 2022, CBSA had 14,000 employees working across Canada. The employment types include full-time, part-time, and seasonal workers.
1.3 Services Offered by CBSA
CBSA offers several services, including border control, immigration, customs, and revenue collection. The agency also provides assistance to other government departments and agencies.
1.4 Analysis of Demographics and Education Level of Employees
CBSA has a diverse workforce, with employees from different cultural backgrounds and education levels. The majority of employees hold a high school diploma, while some have a college or university degree.
1.5 Analysis of Staff Turnover
The staff turnover rate at CBSA for the last year was 7.5%, which is slightly higher than the average for the public sector. This rate is mainly due to retirements and transfers to other government agencies.
1.6 Number of New Human Resources Required
Based on the projected workload and the expected retirement of some employees, CBSA will require approximately 500 new human resources in the coming year.
Future Workforce Needs
2.1 Job Roles and Skills Required
CBSA will need to hire employees for several job roles in the coming year. These roles include border services officers, intelligence officers, and revenue agents. The required skills for these roles include critical thinking, problem-solving, communication, and interpersonal skills.
2.2 Number of Employees Required
CBSA will need to hire approximately 400 border services officers, 50 intelligence officers, and 50 revenue agents in the coming year.
2.3 Sourcing Options
To source these job roles, CBSA will need to consider several options, including internal promotions, external hiring, and partnerships with educational institutions.
Technology Considerations
3.1 Current Technology Used
CBSA uses several technologies, including advanced screening systems, electronic surveillance systems, and border management systems.
3.2 Different Technology for Increased Productivity
CBSA can consider implementing new technologies such as artificial intelligence, automation, and predictive analytics to improve productivity and enhance job roles and skills.
Legislation and Industrial Considerations
4.1 Major Policies and Procedures and Related Legislation
CBSA has several policies and procedures that relate to its operations, including the Access to Information Act, the Privacy Act, and the Canadian Charter of Rights and Freedoms.
4.2 Recent or Impending Legislation or Industrial Changes
CBSA will need to monitor recent and impending changes in legislation and industrial changes such as trade agreements, border security measures, and immigration policies.
Recommendations
Based on the analysis of the workforce needs at CBSA, the following recommendations are proposed:
CBSA should develop a talent management strategy to retain employees and prepare for future retirements.
CBSA should consider partnerships with educational institutions to develop and train new employees for critical job roles.
CBSA should explore the use of new technologies such as artificial intelligence, automation, and predictive analytics to enhance productivity and improve job roles and skills.
Conclusion
In conclusion, this report has provided an overview of the workforce needs at CBSA, including workforce trend analysis, future workforce needs, technology considerations, and industrial and legislative considerations. The recommendations outlined in this report will help CBSA to address workforce gaps and maintain a talented and engaged workforce to provide high-quality services to the public.
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Using a 21 percent rate:Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in a $31,000 temporary excess of book income over taxable income.Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in an $18,400 permanent excess of book income over taxable income.Compute the deferred tax asset or deferred tax liability (if any) from a transaction resulting in a $55,000 temporary excess of taxable income over book income.
Answers
Answer:
A) 21% of $31,000 excess of book income over taxable income = $6,510 deferred tax liability.
B) There is no deferred tax asset or liability from permanent book/tax difference.
C) Deferred tax asset or deferred tax liability from a transaction resulting in a $55,000 temporary excess of taxable income over book income: 21% of $55,000 excess of taxable income over book income = $11,550 deferred tax asset.
You realize you forgot to pay yourself for work done in February. You create an account called
"Accrued Expenses" (Account #221) and record the $300 due you for your accounting work
You use Feb23.2 as the entry number
Answers
Based on the fact that you created an account called accrued expenses and need to record the $300 you are due for your accounting work, the journal entry would be:
Date Account Title Debit Credit
Feb 23 Accrued expenses $300
Accounts Payable $300
How to record accrued expenses?Accrued expenses are expenses which means that they will be recorded like expenses are. When expenses increase, they are debited to the expenses account which in this case is the Accrued expenses account. The amount of $300 is therefore debited to the Accrued expenses account.
Accrued expenses mean that a business has not paid for certain expenses and so owe them. They will therefore be credited to the accounts payable account as was done above.
Rest of the question is:
You use Feb23.2 as the entry number to make the relevant journal entry.
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