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 $24,600 Ending 55,300 Work in process: Beginning 16,700 Finished goods: Sold in May 401,000 Ending 51,000 Manufacturing overhead: Beginning 0 Accrued wages payable: Beginning 10,500 Ending 19,700 Other information: 1. Total direct materials requisitions for the month were $180,100. 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 $101,400 was incurred during the period. 4. On May 31, the ending inventory of work in process is $5,500. Calculate the following:
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In: Accounting
Given the estimated regression equation results for the sale of energy bars (a food item). It is expected that sales of the bars varies depending on which quarter of the year it is.
SALES = 6837 – 532 (PRICE) + 62 (ORGANIC) + 27 Q2 + 35 Q3 – 21 Q4
SALES = number of individual energy bars (not dollars) sold per month
PRICE = price of bars in dollars
ORGANIC = dummy variable: 1 if organic, 0 if not organic
Q2 = dummy variable (second quarter: April, May, June)
Q3 = dummy variable (third quarter: July, August, September)
Q4 = dummy variable (fourth quarter: October, November, December )
(3 pts.) Interpret the coefficient on the PRICE variable.
(3 pts.) Interpret the coefficient on the Q4 dummy variable. (Be as specific as possible)
(3 pts.) Calculate (with a calculator) what SALES would be (how many bars would we sell) if PRICE was $1.50, they are NOT ORGANIC, and we are in the third quarter of the year. SHOW YOUR WORK.
(2 pts.) What changes to this regression would you make (if any) if the p-value on the coefficient of the ORGANIC dummy variable were 0.36? EXPLAIN.
In: Statistics and Probability
2. Complete the following sentences:
i. If the unemployment rate is rising and the labor force participation rate is rising, then the unemployment rate rose because
ii. If the unemployment rate is falling and the labor force participation rate is falling, then the unemployment rate fell because
iii. If the unemployment rate is rising and the labor force participation rate is falling, then the unemployment rate rose because
3. Classify the following individuals as employed (E), unemployed (U) or out of the labor force (NFL). If the individual is unemployed, identify the type of unemployment.
a. A college graduate spends the summer following graduation on a volunteer service trip to Venezuela before beginning her job search.
b. A college student advertises her willingness to pet sit but no one purchases her services.
c. A part-time college instructor is only able to find two classes to teach this semester, though he would like to work full-time.
d. After completing nursing school, Sarah has spent three months searching for a job in rural Missouri.
e. Mike lost his job at the financial services company when the country experienced a recession. He continues to search for a new position.
f. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.
g. Recently, Mel has reduced Flo’s hours at the diner from 40 hours per week to 25 hours per week. Flo is frantically searching for a new full-time job while she continues to work at the diner.
h. Melanie lost her position with a contemporary dance company when the new artistic director added the requirements that dancers be accomplished tap dancers. Melanie is searching for another position, because she never learned to tap.
In: Economics
1. Carlos plans to start a new dry cleaning business. For that he purchased a space which costed him $100,000. For that he withdrew his savings worth $50,000 and borrowed the remaining $50,000 from a bank. His savings was earning him 3% interest per annum and the banks charges him 6% interest per annum. Based on this what would be Carlos opportunity cost of purchasing the space?
| a. |
$3,000 |
|
| b. |
$1,500 |
|
| c. |
$3,000 |
|
| d. |
$4,500 |
2. Which of the following statements is correct?
| a. |
The total variable cost of seven units equals the average variable cost of seven units times seven. |
|
| b. |
The marginal cost of the fifth unit of output equals the total cost of five units minus the total cost of four units. |
|
| c. |
The marginal cost of the fifth unit of output equals the total variable cost of five units minus the total variable cost of four units. |
|
| d. |
All the other options are correct. |
3. For a firm the Marginal Cost of producing 60th unit is $3.90 and the Average Total Cost of producing 59 units is $3.30. This would mean that
| a. |
average variable costs must be falling. |
|
| b. |
average total costs are rising at 60 units. |
|
| c. |
average total costs are falling at 60 units. |
|
| d. |
total costs are falling at 60 units. |
4. Brandon starts a new business for which he got loan from bank worth $200,000 charging him interest 6% per annum. Further he also used his savings worth $100,000 on which he was earning an interest of 2% per annum. Based on this information, Brandon explicit cost of capital would be
| a. |
$4,000. |
|
| b. |
$6,000. |
|
| c. |
$4,000. |
|
| d. |
$12,000. |
5. Sunny sells lemonade for $0.50 per cup. In a day he sold 300 cups. His total revenue for the day would be
| a. |
$150. |
|
| b. |
$300. |
|
| c. |
$350. |
|
| d. |
$600. |
In: Economics
3.14
The first application listed in Section 3.7 involved British insurance claims.
The 2005 median was £1570. A random sample of 14 claims from a large batch
Received in the first quarter of 2006 were for the following amounts (in £):
1175 1183 1327 1581 1592 1624 1777 1924 2483 2642 2713 3419 5350 7615
What test do you consider appropriate for a shift in median relative to the 2005 median. Would a one-tail test be appropriate? Obtain a 95 percent confidence interval for the median based upon these data. If all amounts were converted to, say, Burma or to $138, would your conclusions be the satire?
I NEED TO GET TO THIS ANSWER: TESTING Ho = 1570, TWO TAIL P= 0.570. ONE TAIL P= 0.0287. 94.3 PERCENT CONFIDENCE INTERVAL BASED ON SIGN TEST IS 1581. BUT THE EVIDENCE IS NOT STRONG THAT CHANGING CURRENCY WOULD ALTER THE CONCLUSION.
In: Statistics and Probability
Jupiter Company's budget for coming year estimates monthly sales
in units for first five months of the year as follows: April
35,000; May, 38,000; June 40,000; July, 39,000; and August
38,000.
The ending inventory of finished units for each month is to be
maintained at 25% of next month's estimated sales. On April 1,
there were 12,000 units on hand.
a. prepare a production budget (in units) for the first four months
of the period. Rounds amounts to the nearest unit.
Jupiter company continued from (a) above. Each unit of finished
product requires the use of four pound of materials. Materials are
to be carried in inventory in an amount equal to 20% of expected
production of the coming month. Beginning inventory on April 1 of
the current year was 32,500 units of material. Each unit of
material costs $2.
b. prepare a material purchases budget ( in units of materials and
dollars) for the second quarter of the coming year. round amounts
to the nearest unit.
In: Accounting
Generally, a security interest is perfected when the
Secured party has a legally enforceable right to take that property and sell it to satisfy the debt
Goods are sold, but regained as soon as the debtor takes possession of the new property
Buyer takes the property subject to a mortgage and the seller agrees to continue paying the debt
Secured party has done everything that the law requires to give the secured party greater rights to the goods than others have
Which of the following is true of recording a mortgage?
Recording a mortgage notifies any third party that the mortgagee has an interest in the real property covered by the mortgage
The second mortgagee must know about the first mortgage and is exempt from recording the mortgage
If the mortgage is not recorded and a later mortgage is given on the same property, the old mortgage is superior to the second
A failure to record the first mortgage would remove the obligation of the mortgage to the first mortgagee
The only individuals specifically excluded from filing under Chapter 11 are
Commodity brokers and stockbrokers
Real estate developers
Chartered accountants
Lawyers and judges
In: Operations Management
In: Computer Science
1.The following inventory data relate to the Reta Company:
INVENTORIES
| Beginning | Ending | |
| Finished goods | $80,000 | $100,000 |
| Work in process | 65,000 | 70,000 |
| Direct materials | 60,000 | 64,000 |
Revenues and costs for the period:
| Sales | $740,000 |
| Cost of goods available for sale | 650,000 |
| Total manufacturing costs | 575,000 |
| Factory overhead | 154,000 |
| Direct materials used | 164,000 |
| Selling and administrative expenses | 51,000 |
a. Direct materials purchased
b. Direct labor costs incurred
c. Cost of goods sold
e. How does cost of goods sold statement differ from income
statement?
2.The following data was taken from the general ledger and other
records of Martinez Manufacturing Co. at July 31, the end of the
first month of operations in the current fiscal year:
Sales $50,000
Materials inventory (July 1) 15,000
Work in process inventory (July 1) 20,000
Finished goods inventory (July 1) 28,000
Materials purchased 21,000
©Al Tareeqah Management Studies - 2020 8
Direct labor cost 12,500
Factory overhead (including $5,000 of indirect materials used and
$2,500 of indirect labor cost)
11,500
Selling and administrative expense 8,000
Inventories at July 31:
Materials 16,000
Work in process 18,000
Finished goods 30,000
a. Prepare a statement of cost of goods manufactured.
b.Determine the cost of goods sold for the month.
c. What are the applications of cost of goods sold and cost of
goods manufactured statements?
In: Accounting
|
You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer’s silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are anxious to make a favorable impression on the president and have assembled the information below. |
|
The company desires a minimum ending cash balance each month of $12,000. The ties are sold to retailers for $8.10 each. Recent and forecasted sales in units are as follows: |
|
January (actual) |
20,000 |
June |
65,000 |
|
February (actual) |
24,000 |
July |
40,000 |
|
March (actual) |
28,000 |
August |
36,000 |
|
April |
33,000 |
September |
32,000 |
|
May |
41,000 |
||
|
The large buildup in sales before and during June is due to Father’s Day. Ending inventories are supposed to equal 75% of the next month’s sales in units. The ties cost the company $4.85 each. |
|
Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 30% of a month’s sales are collected by month-end. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. |
|
The company’s monthly selling and administrative expenses are given below: |
|
Variable: |
|||
|
Sales commissions |
$ 1 |
per tie |
|
|
Fixed: |
|||
|
Wages and salaries |
$ |
22,000 |
|
|
Utilities |
$ |
14,000 |
|
|
Insurance |
$ |
1,200 |
|
|
Depreciation |
$ |
1,500 |
|
|
Miscellaneous |
$ |
3,000 |
|
|
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $30,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company’s balance sheet at March 31 is given below: |
|
Assets |
||
|
Cash |
$ |
14,000 |
|
Accounts receivable ($19,440 February sales;
$158,760 |
178,200 |
|
|
Inventory (24,750 units) |
120,037.50 |
|
|
Prepaid insurance |
14,400 |
|
|
Fixed assets, net of depreciation |
172,700 |
|
|
Total assets |
$ |
499,337.50 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ |
76,993.75 |
|
Dividends payable |
12,000 |
|
|
Capital stock |
300,000 |
|
|
Retained earnings |
110,343.75 |
|
|
Total liabilities and stockholders’ equity |
$ |
499,337.50 |
|
The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $300,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $12,000 in cash. |
Part 1a. Create a sales budget by month and the total for the 2nd quarter.
Part 1b. Create a schedule for budgeted cash collections from sales and accounts receivable.
Part 1c. Create a purchases budget in units and dollars. Note: this company is a merchandiser, so no production budget is needed. Instead, a purchases budget will be used (since the company will be buying inventory instead of manufacturing it).
Part 1d. Create a cash disbursements budget for purchases by month and the total for the quarter.
Part 2. Create a cash budget by month and the total for the quarter.
Part 3. Create a budgeted income statement from the previous parts and additional information given in the case.
Part 4. Create a budgeted balance sheet from the previous parts and additional information given in the case.
In: Accounting