DC's has been approached by a large grocery store chain that wants to sell their award winning BBQ sauce. Determine the selling price based on the following information:
Fixed costs for production will be $400,000 of which $150,000 is for selling and admin expenses.
Variable costs will be $15 per case. Variable selling expenses are $3 per case.
Anticipated sales are 100,000 cases.
DC's desires a $350,000 profit.
What does the selling price per case need to be?
After visiting with customers of the DC's restaurant, the grocery chain also wants to produce DC's Dry Seasoning Rub.
Determine the selling price for the Rub based on the following combined information:
| Variable Costs | Fixed Costs | |
|---|---|---|
| Manufacturing | 2,700,000 | 300,000 |
| Selling and Administrative | 450,000 | 200,000 |
| Total | 3,150,000 | 500,000 |
Desired profit from Rub sales = $150,000
The Cost for 1 case of Rub is:
| Direct Materials | $ 9 |
| Direct Labor | $ 7 |
Manufacturing Overhead:
| Variable | $ 3 |
| Fixed | $ 2 |
| Total Manufacturing Costs | $ 21 |
| Variable Selling and Admin | $ 3 |
Required:
1. Determine the markup percentage on variable costs required to earn the desired profit.
2. Use the variable markup percentage to determine the suggested price of the Rub.
3. Determine the markup percentage on manufacturing costs to earn the desired percentage
4. Determine the suggested price of the Rub using manufacturing cost markup.
In: Accounting
Tables 1 and 2 show the
quantities of the goods that Suzie bought and the prices she paid
during two consecutive weeks. Suzie’s CPI market basket contains
the goods she bought in Week 1. Calculate the cost of Suzie’s CPI
market basket in Week 1 and in Week 2. What percentage of the CPI
market basket is gasoline? Calculate the value of Suzie’s CPI in
Week 2 and her inflation rate in Week 2.
Table 1 Data for Week 1
Item
Quantity
Price (per unit)
Coffee
11 cups
$3.25
DVDs
1
$25.00
Gasoline
15 gallons
$2.50
Table 2 Data for Week 2
Item
Quantity
Price (per unit)
Coffee
11 cups
$3.25
DVDs
3
$12.50
Gasoline
5 gallons
$3.00
Concert
1 ticket
$95.00
Use the following information to work Problems 4 and 5.
The GDP price index in the United States in 2000 was about 90, and real GDP in 2000 was $11 trillion (2005 dollars). The GDP price index in 2010 was about 111, and real GDP in 2010 was $13.1 trillion (2005 dollars).
Calculate nominal GDP in 2000 and in 2010 and the percentage increase in nominal GDP between 2000 and 2010.What was the percentage increase in production between 2000 and 2010, and by what percentage did the cost of living rise between 2000 and 2010?
In: Economics
Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis
Scherer Company provided the following income statements for its first 3 years of operation:
| Scherer Company Income Statements Years of Operation |
|||
| Year 1 | Year 2 | Year 3 | |
| Net sales | $1,010,000 | $1,131,200 | $1,353,400 |
| Less: Cost of goods sold | (293,000) | (314,000) | (362,000) |
| Gross margin | $717,000 | $817,200 | $991,400 |
| Less: | |||
| Operating expenses | (424,000) | (490,000) | (595,500) |
| Income taxes | (110,800) | (120,200) | (135,000) |
| Net income | $182,200 | $207,000 | $260,900 |
repare common-size income statements by using Year 1 as the base period. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage.)
| Scherer Company | ||||||
| Common-Size Income Statements | ||||||
| Years of Operation | ||||||
| Year 1 | Year 1 | Year 2 | Year 2 | Year 3 | Year 3 | |
| Dollars | Percentage | Dollars | Percentage | Dollars | Percentage | |
| Net sales | $1,010,000 | % | 1,131,200 | % | $1,353,400 | % |
| Less: Cost of goods sold | (293,000) | (314,000) | (362,000) | |||
| Gross margin | $717,000 | $817,200 | $991,400 | |||
| Less: | ||||||
| Operating expenses | (424,000) | (490,000) | (595,500) | |||
| Income taxes | (110,800) | (120,200) | (135,000) | |||
| Net income | $182,200 | $207,000 | $260,900 | |||
In: Accounting
(Based on Alton Bridge Video Clip) Large construction projects, like buildings and bridges, are some of the most complex projects to manage. The construction of the bridge from
Alton, Ill. to St. Louis provides an excellent example of a complex project. Describe three challenges the Alton Bridge project had faced and how they were resolved?
In: Operations Management
a company in continuous production, which implements the FIFO method, provides the following data. The initial cost of inventory is $ 16,000 and the cost of the period is $ 54,000. inventory at the beginning 600 pieces and has absorbed 75% of the costs, unit produced 2000 pieces and inventory at the end 3200 pieces. Equivalent units are 2200 pieces. Find the percentage of inventory cost absorption at the end.
a. 29.2% b. 20.3% c. 27.4% d. 25.6%
In: Accounting
Consider a market characterized by demand Q = 80/6 − P/6 . It is served by two firms A and B, and both firms have constant marginal cost equal to 8. Suppose an investment by firm A reduces its marginal cost to 5 (a decrease of 37.5%), while B’s marginal cost remains at 8. If the firms compete by setting quantities, what is the predicted percentage change in the market price? Show your work.
In: Economics
Please use Phyton to write a program:
Write a program that calculates and displays the total bill at a restaurant for a couple that is dining. The program should collect from the couple, cost of each meal, and the percentage of the final cost that they would like to tip. The sales tax in the state where the restaurant exists is 7.5%.
Display to the user, line by line:
In: Computer Science
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
| Machine-hours required to support estimated production | 156,000 | |
| Fixed manufacturing overhead cost | $ | 651,000 |
| Variable manufacturing overhead cost per machine-hour | $ | 4.60 |
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
| Direct materials | $ | 370 |
| Direct labor cost | $ | 290 |
| Machine-hours used | 31 | |
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 60 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
-Predetermined overhead rateper MH?
If Job 400 includes 60 units, what is the unit product cost for this job?
total manufacturing costs?
If Moody uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
What is selling price per unit?
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
Year 1
Jan.22Purchased 23,600 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission.
Mar.8Received a cash dividend of $0.21 per share on Sankal Inc. stock.
Sep.8A cash dividend of $0.24 per share was received on the Sankal stock.
Oct.17Sold 4,700 shares of Sankal Inc. stock at $15 per share less a brokerage commission of $60.
Dec.31Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $26 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment.
Record these transactions on page 11:
Year 2
Jan.10Purchased an influential interest in Imboden Inc. for $1,287,000 by purchasing 165,000 shares directly from the estate of the founder of Imboden Inc. There are 500,000 shares of Imboden Inc. stock outstanding.
Mar.10Received a cash dividend of $0.29 per share on Sankal Inc. stock.
Sep.12Received a cash dividend of $0.24 per share plus an extra dividend of $0.06 per share on Sankal Inc. stock.
Dec.31Received $56,400 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $489,800 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.
Dec.31Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $21 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $26 to $21 per share.
Required:
1.Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries.
2.Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming the Retained Earnings balance on December 31, Year 2, is $376,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31:
Record these transactions on page 10:
|
Year 1 |
||
| Jan. | 22 | Purchased 23,600 shares of Sankal Inc. as an available-for-sale security at $18 per share, including the brokerage commission. |
| Mar. | 8 | Received a cash dividend of $0.21 per share on Sankal Inc. stock. |
| Sep. | 8 | A cash dividend of $0.24 per share was received on the Sankal stock. |
| Oct. | 17 | Sold 4,700 shares of Sankal Inc. stock at $15 per share less a brokerage commission of $60. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $26 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. |
Record these transactions on page 11:
|
Year 2 |
||
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $1,287,000 by purchasing 165,000 shares directly from the estate of the founder of Imboden Inc. There are 500,000 shares of Imboden Inc. stock outstanding. |
| Mar. | 10 | Received a cash dividend of $0.29 per share on Sankal Inc. stock. |
| Sep. | 12 | Received a cash dividend of $0.24 per share plus an extra dividend of $0.06 per share on Sankal Inc. stock. |
| Dec. | 31 | Received $56,400 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $489,800 in Year 2. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Dec. | 31 | Sankal Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $21 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the decrease in fair value from $26 to $21 per share. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. |
| 2. | Prepare the investment-related asset and stockholders’ equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming the Retained Earnings balance on December 31, Year 2, is $376,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
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Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Amount Descriptions
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Amount Descriptions |
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| Available-for-sale investments (at cost) | |
| Available-for-sale investments (at fair value) | |
| Net income | |
| Net loss | |
| Other comprehensive income (loss) | |
| Other income (loss) | |
| Trading investments (at cost) | |
| Trading investments (at fair value) |
In: Accounting
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 20Y6. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6:
| Jan. | 10 | Purchased an influential interest in Imboden Inc. for $720,000 by purchasing 96,000 shares directly from the estate of the founder of Imboden Inc. There are 300,000 shares of Imboden Inc. stock outstanding. |
| Dec. | 31 | Received $57,600 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $450,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. |
| Required: | |
| 1. | Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
| 2. | Should Forte Inc.’s investment in Imboden Inc. be reported at fair value on its financial statements for the year ending December 31, 20Y6? |
In: Accounting