1A. At the end of the first year of operations, 4,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
| Direct materials | $27.30 | |
| Direct labor | 14.10 | |
| Fixed factory overhead | 7.10 | |
| Variable factory overhead | 6.20 |
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
| Absorption costing | $ |
| Variable costing | $ |
1B. Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:
|
1 |
Sales (38,000 units) |
$9,500,000.00 |
|
|
2 |
Production costs (46,500 units): |
||
|
3 |
Direct materials |
$4,650,000.00 |
|
|
4 |
Direct labor |
1,860,000.00 |
|
|
5 |
Variable factory overhead |
1,162,500.00 |
|
|
6 |
Fixed factory overhead |
697,500.00 |
8,370,000.00 |
|
7 |
Selling and administrative expenses: |
||
|
8 |
Variable selling and administrative expenses |
$1,250,000.00 |
|
|
9 |
Fixed selling and administrative expenses |
235,000.00 |
1,485,000.00 |
| Required: | |||
| a. | Prepare an income statement according to the absorption costing concept.* | ||
| b. | Prepare an income statement according to the variable costing concept.* | ||
| c. | What is the reason for the
difference in the amount of income from operations reported in (a)
and (b)?
|
In: Accounting
2. Alternative price indexes
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the _______ using _______ by the _______ using and multiplying by 100. However, the CPI reflects only the prices of all goods and services _______.
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply.
An increase in the price of a Chinese-made car that is popular among U.S. consumers.
A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S but not bought by U.S. consumers.
In: Economics
in a certain year the mean interest rate on loans to a random sample of 80 large retailers (that is, those with assets of $10,000,000 or more) was 10.0% and the standard deviation was 0.6%. Two years later, a random sample of 100 loans to large retailers yielded a mean interest rate of 10.25% and a standard deviation of 0.72%.
a. Would you conclude that there has been a change in the average level of interest rates for large retailers? Use a 0.01 level of significance.
b. Find a 96% confidence interval for the difference between the two means.
In: Statistics and Probability
In a survey of 2075 adults in a recent year, 1432 say they have made a New Year's resolution. Construct 90% and 95% confidence intervals for the population proportion. Interpret the results and compare the widths of the confidence intervals.
A. The 90% confidence interval for the population proportion p is..
B.The 95% confidence interval for the population proportion p is..
C.Determine the widths of the intervals..
In: Statistics and Probability
The price of a stock is $60. The price of a one-year European put option on the stock with a strike price of $45 is quoted as $10.5 and the price of a one-year European call option on the stock with a strike price of $75 is quoted as $7.5. Suppose that an investor buys 100 shares of stock, shorts 100 shares of call options, and buys 100 shares of put options.
(a) Show the profit (loss) table for the combined position (long stock, long put, and short call) if ST $75.
(b) Draw the profit (loss) graph for (a), illustrating how the investor’s profit or loss varies with the stock price over the next year.
In: Accounting
Principles of Macroeconomics
Q. 1 If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the rate of inflation was
Group of answer choices
A.5.3 percent.
B. 5.8 percent.
C. 7.7 percent.
D. 4.4 percent.
Q. 2 In general, monetary policy has a longer ________ lag than fiscal policy but shorter ________ lag.
Group of answer choices
A. implementation; response
B. implementation; recognition
C. response; implementation
D. recognition; response
Q.3 ________ economists believe that active help from fiscal and monetary policy is needed to insure that the economy is operating at full employment.
Group of answer choices
A.Monetarist
B. Keynesian
C. Classical
D. All
Q.4 Suppose the current situation is such that the price level is 120, real GDP is $17 trillion, and GDP along the long-run aggregate supply curve is $16.6 trillion. How will the economy self-correct to restore the long-run equilibrium?
A. The money wage rate will rise until real GDP reaches $16.6 trillion.
B.The price level will fall and money wage rates will rise until real GDP along the long-run aggregate supply curve is $17 trillion.
C. Aggregate demand will increase until both short-run and long-run aggregate supply equal $17 trillion.
D. The price level will fall until long-run aggregate supply increases to $17 trillion.
Q.5 Suppose the economy is experiencing frictional unemployment of 1.5 percent, structural unemployment of 1.5 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?
A.7 percent
B.5 percent
C. 4 percent
D.3 percent
Q.6 In the short run, the Federal Reserve faces a tradeoff between
A. real GDP growth and potential GDP growth.
B.economic growth and employment.
C. inflation and unemployment.
D. inflation and price stability.
In: Economics
You have $5,000 to invest for the next year and are considering three alternatives
a) A money market fund with an average maturity of 30 days offering a current annualized yield of 3%.
b) A two-year CD at a bank offering an interest rate of 4.5%
c) A 20-year U.S. Treasury bond offering a yield to maturity of 6% per year.
What role does your forecast of future interest rates play in your decision?
In: Finance
a. Karsted Air Services is now in the final year of a project. The equipment originally cost $23 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $5.75 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.
b.Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number.
| Equipment cost (depreciable basis) | $100,000 |
| Straight-line depreciation rate | 33.333% |
| Sales revenues, each year | $60,000 |
| Operating costs (excl. depr.) | $25,000 |
| Tax rate | 35.0% |
c.Project L costs $40,000, its expected cash inflows are $9,000 per year for 7 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
In: Finance
What are some public health initiatives that have ended in the following year?
In: Nursing
Many movies are released each year and it would be interesting to be able to predict the Total Gross Revenues (in $1,000,000) from the box office based on a few predictors. The following predictors have been identified for 70 movies:
The following partial output has been obtained:
|
Coefficients |
Standard Error |
t Stat |
|
|
Intercept |
-4.039 |
30.735 |
|
|
Budget |
0.803 |
0.154 |
|
|
Length |
-0.433 |
0.242 |
|
|
Screens |
0.013 |
0.005 |
|
|
Awards |
1.390 |
1.049 |
|
|
Genre 1 |
4.777 |
2.032 |
|
|
Genre 2 |
2.732 |
13.646 |
|
ANOVA |
||||
|
df |
SS |
MS |
F |
|
|
Regression |
39.5 |
|||
|
Residual |
170.2 |
|||
|
Total |
Based on the above partial printout, answer the following questions:
In: Statistics and Probability