Questions
How long will it take payment of $500 per quarter to amortize a loan of $8,000...

How long will it take payment of $500 per quarter to amortize a loan of $8,000 at 16% compounded quarterly? Approximate your answer in terms of years and months. How much less time will it take if loan payments are made at the beginning of each quarter rather that at the end?

In: Finance

North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 77.0 + 0.45Q,

North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 77.0 + 0.45Q,

where Q refers to the sequential quarter number and Q=1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows:

QuarterFactor (Index)
Winter0.72
Spring1.25
Summer1.45
Fall0.58

In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place):

QuarterEnergy Use
Winter
Spring
Summer
Fall


In: Other

Martinez Fabrics manufactures shirts each of which requires the following:       Direct materials standard               2.5 yards...

Martinez Fabrics manufactures shirts each of which requires the following:

      Direct materials standard               2.5 yards at $8 per yard

      Direct manufacturing labor standard      6 hours at $12

Actual results in the third quarter included production of 2,000 shirts which cost $35,000 and used 4,500 yards of fabric. There were 7,000 actual direct labor hours, with an actual cost of $70,000.

Required:

a.   Compute the direct materials price and efficiency variances for the quarter.

b.   Compute the direct manufacturing labor price and efficiency variances for the quarter.

In: Accounting

A family wants to have a $130,000 college fund for their children at the end of...

A family wants to have a $130,000 college fund for their children at the end of 16 years. What contribution must be made at the end of each quarter if their investment pays 7.2%, compounded quarterly?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuity due    


(b) Solve the problem. (Round your answer to the nearest cent.)

2

If $5500 is deposited at the end of each quarter in an account that earns 5% compounded quarterly, after how many quarters will the account contain $100,000? (Round your answer UP to the nearest quarter.)
quarters

In: Accounting

An S&L pays 5% per annum compounded quarterly. Bert and Bertha are now 50 years old....

An S&L pays 5% per annum compounded quarterly. Bert and Bertha are now 50 years old. They will deposit $200 per quarter at the end of each quarter until they are 65 years old.

  1. How much is in their retirement account at the end of this period i.e. at 65?
  2. 3 months after their last deposit they start withdrawing equal amounts each quarter until they are 80 i.e. for the next 15 years Find the size of the withdrawals.
  3. How much cash did they deposit? How much cash did they withdraw? What was the total interest?

In: Finance

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information...

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Amount
Sales $ 1,376,000
Selling price per pair of skis $ 430
Variable selling expense per pair of skis $ 47
Variable administrative expense per pair of skis $ 15
Total fixed selling expense $ 150,000
Total fixed administrative expense $ 110,000
Beginning merchandise inventory $ 70,000
Ending merchandise inventory $ 110,000
Merchandise purchases $ 295,000

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

Prepare a traditional income statement for the quarter ended March 31.

The Alpine House, Inc.
Traditional Income Statement
Selling and administrative expenses:

In: Accounting

The Alpine House, Inc., is a large retailer of snow skis. Thecompany assembled the information...

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Sales$1,125,000
Selling price per pair of skies$450
Variable selling expense per pair of skis$48
Variable administrative expense per pair of skis$18
Total fixed selling expense$145,000
Total fixed administrative expense$120,000
Beginning merchandise inventory$60,000
Ending merchandise inventory$115,000
Merchandise purchases$305,000

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

In: Accounting

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop...

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered. Projected sales in units 1,220casesSelling price per case$240 Inventory at the beginning of the quarter 150casesTarget inventory at the end of the quarter 100casesDirect labor hours needed to produce one case 2hoursDirect labor wages$10per hourDirect materials cost per case$8 Variable manufacturing overhead cost per case$6 Fixed overhead costs for the upcoming quarter$220,000

a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units.

b. What is Mercury's budgeted variable manufacturing cost per case?

c. Prepare Mercury's manufacturing cost budget.

d. What is the projected ending value of the Inventory account?

In: Accounting

TG manufactures Product Z. Its standard selling price is $55. The production and sales budget for...

TG manufactures Product Z. Its standard selling price is $55. The production and sales budget for the quarter ended 31 March 20X3 was 7,500 units. The standard specification per unit of Product Z comprises: Direct labour 4 standard hours at $6/hour Direct material 1.2 kg at $10/kg Standard variable overhead 4 standard hours at $1/hour Budgeted fixed overhead $75,000 At the end of the quarter the management accounts showed the following:

Production and sales of product Z in units: 7700

Actual sales revenue: $424270

Actual direct labour (31,750): $192577

Actual direct material (8855 kg) :    $89436

Actual fixed overhead: $72400

(a) Prepare a statement reconciling budgeted and actual profit in the quarter, using absorption costing.

(b) Prepare a statement reconciling budgeted and actual profit in the quarter, using marginal costing.

In: Accounting

Last night, the sprinkler system at Plant A was accidentally set off. The ensuing deluge destroyed...

Last night, the sprinkler system at Plant A was accidentally set off. The ensuing deluge destroyed most of the cost records in Plant A for the month just completed (May). The plant manager has come to you in a panic—he has to complete his report for head office by the end of today. He wants you to give him the numbers he needs for his report. He can provide you with some fragments of information he has been able to salvage:
Raw materials: Beginning $24,000
Ending 56,400
Work in process: Beginning 17,200
Finished goods: Sold in May 401,200
Ending 54,800
Manufacturing overhead: Beginning 0
Accrued wages payable: Beginning 11,600
Ending 18,100

Other information:
1. Total direct materials requisitions for the month were $180,400.
2. A total of 9,000 direct labour hours were worked during the month at an average wage of $15/hour.
3. Manufacturing overhead of $100,000 was incurred during the period.
4. On May 31, the ending inventory of work in process is $5,300.

Calculate the following:

1. The material purchased during May.
Material purchased ( )$
2. The amount paid to the labour force in May.
Amount paid to the labour force ( )$
3. The cost of goods transferred from work in process inventory to finished goods inventory in May.
Cost of goods transferred from work in process inventory to finished goods inventory ( )$
4. The cost of finished goods inventory at the beginning of May.
Cost of finished goods inventory ( )$

In: Accounting