Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
|
Direct materials |
$4.00 |
|
Direct labour |
$4.00 |
|
Variable manufacturing overhead |
$3.00 |
|
Fixed manufacturing overhead |
$4.00 |
|
Total cost |
$15.00 |
|
The fixed overhead costs are unavoidable. |
|
Assuming Cruise Company can purchase 6,000 units of the part from Suri Company for $13 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Cruise Company do?
Make the part and save $6.00 per unit.
Make the part and save $2.00 per unit.
Buy the part and save $2.00 per unit.
Buy the part and save $4.00 per unit.
Assume Cruise Company can purchase 6,000 units of the part from Suri Company for $13.00 each, and the facilities currently used to make the part could be used to manufacture 6,000 units of another product that would have an $7 per unit contribution margin. If no additional fixed costs would be incurred, what should Cruise Company do?
Make the new product and buy the part to earn an extra $5.00 per unit contribution to profit.
Make the new product and buy the part to earn an extra $6.00 per unit contribution to profit.
Continue to make the part to earn an extra $2.00 per unit contribution to profit.
Continue to make the part to earn an extra $5.00 per unit contribution to profit.
In: Accounting
The one-time fling! Have you ever purchased an article of clothing (dress, sports jacket, etc.), worn the item once to a party, and then returned the purchase? This is called a one-time fling. About 5% of all adults deliberately do a one-time fling and feel no guilt about it! In a group of six adult friends, what is the probability of the following? (Round your answers to three decimal places.)
(a) no one has done a one-time fling
(b) at least one person has done a one-time fling
(c) no more than two people have done a one-time fling
The college student senate is sponsoring a spring break Caribbean cruise raffle. The proceeds are to be donated to the Samaritan Center for the Homeless. A local travel agency donated the cruise, valued at $2000. The students sold 2714 raffle tickets at $5 per ticket.
(a) Kevin bought fourteen tickets. What is the probability that
Kevin will win the spring break cruise to the Caribbean? (Round
your answer to five decimal places.)
What is the probability that Kevin will not win the cruise? (Round
your answer to five decimal places.)
(b) Expected earnings can be found by multiplying the value of the
cruise by the probability that Kevin will win. What are Kevin's
expected earnings? (Round your answer to two decimal places.)
$
Is this more or less than the amount Kevin paid for the fourteen
tickets?
more or less?
How much did Kevin effectively contribute to the Samaritan Center
for the Homeless? (Round your answer to two decimal places.)
$
In: Statistics and Probability
October
1. S. Erickson invested $5 0,000 cash, a $16,000 pool equipment, and $12,000 of office equipment in the company.
2. The company paid $4,000 cash for five months’ rent.
3. The company purchased $1,620 of office supplies on credit from Todd’s Office Products.
5. The company paid $4,220 cash for one year’s premium on a property and liability insurance policy.
6. The company billed Deep End Co $4,800 for services performed in installing a new pool
8. The company paid $1,620 cash for the office supplies purchased from Todd’s Office Products on October 3.
10. The company hired Julie Kruit as a part-time assistant for $136 per day, as needed.
12. The company billed Deep End Co another $1,600 for services performed.
15. The company received $4,800 cash from Deep End Co as partial payment on its account.
17. The company paid $750 cash to repair pool equipment that was damaged when moving it.
20. The company paid $1,958 cash for advertisements published in the local newspaper.
22.The company received $1,600 cash from Deep End Co. on its account.
28. The company billed Happy Summer Corp $6,802 for consulting services performed.
31. The company paid $952 cash for Julie Kruit’s wages for seven days’ work.
31. S. Ericksonwithdrew $3,500 cash from the company for personal use.
November
1. The Company reimbursed S. Erickson in cash for business automobile mileage allowance (Ericksonlogged 1,500 miles at $0.32 per mile).
2. The company received $5,630 cash from Underground Inc. for consulting services performed.
5. The company purchased office supplies for $1,325 cash from Todd’s Office Products.
8. The company billedSlides R Us $7,568 for services performed.
13. The company agreed to perform future services for Henry’s Pool and Spa Co. No work has been performed.
18. The company received $2,802 cash from Happy Summer Corp as partial payment of the October 28 bill.
22. The company donated $450 cash to the United Way in the company’s name.
24. The company completed work and sent a bill for $4,800toHenry’s Pool and SpaCo.
25. The company sent another bill to Happy Summer Corp for the past-due amount of $ 4 000.
28. The company reimbursed S. Erickson in cash for business automobile mileage(1,300 miles at $0.32 per mile).
30. The company paid cash to Julie Kruit for 14 days’ work.
30. S. Erickson withdrew $1,500 cash from the company for personal use
December
2. Paid $1,200 cash to West Side Mall for Splashing Around’s share of mall advertising costs.
3. Paid $350 cash for minor repairs to the company’s pool equipment
4. Received $4,800 cash from Henry’s Pool and Spa Co. for the receivable from November.
10. Paid cash to Julie Kruit for six days of work at the rate of $136 per day.
14. Notified by Henry’s Pool and Spa Co. that Splashing Around’s bid of $ 10,000 on a proposed project has been accepted. Henry’s paid a $ 6,500 cash advance to Splashing Around
15. Purchased $1,400 of office supplies on credit from Todd’s Office Products.
16. Sent a reminder to Slides R Us to pay the fee for services recorded on November 8.
20. Completed a project for Underground Inc and received $6,545 cash.
22–26 Took the week off for the holidays.
28. Received $4,500 cash from Slides R Us on its receivable.
29. Reimbursed S. Erickson for business automobile mileage (500 miles at $0.32 per mile).
31. S.Erickson withdrew $ 2,500 cash from the company for personal use.
Adjusting Entries
The following additional facts are collected for use in making adjusting entries prior to preparing
financial statements for the company’s first three months:
a. The December 31 inventory count of office supplies shows $1800 still available.
b.Three months have expired since the 12-month insurance premium was paid in advance.
c. As of December 31, Julie Kruit has not been paid for four days of work at $136 per day.
d.The pool equipment, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f.Three of the five months’ prepaid rent has expired
just the adjusting entries journalized.
In: Accounting
The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
| A. | Checks outstanding totaled $61,280. |
| B. | A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement. |
| C. | The bank collected $42,000 on a $40,000 note, including interest of $2,000. |
| D. | A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. |
| E. | A check drawn for $240 had been erroneously charged by the bank as $420. |
| F. | Bank service charges for April amounted to $145. |
| Instructions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1. | Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.“Deduct:” or “Add:” will automatically appear if it is required. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2. | Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3. |
If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions.
|
In: Accounting
In: Finance
In: Economics
+
In no less than 2 descriptive paragraphs describe what this statement means.
In: Nursing
QUESTION 1
True
False
1 points
QUESTION 2
True
False
1 points
QUESTION 3
True
False
1 points
QUESTION 4
True
False
1 points
QUESTION 5
True
False
1 points
In: Economics
In: Statistics and Probability
Identifiable Intangibles and Goodwill, U.S. GAAP
International Foods, a U.S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles:
| Intangible Asset | Date of Acquisition | Fair Value at Date of Acquisition | Useful Life |
|---|---|---|---|
| Customer relationships | January 1, 2019 | $4,000,000 | 4 years |
| Favorable leaseholds | June 30, 2019 | 8,000,000 | 5 years |
| Brand names | June 30, 2019 | 18,000,000 | Indefinite |
| Goodwill | January 1, 2019 | 500,000,000 | Indefinite |
Goodwill was assigned to the following reporting units:
| Asia | $100,000,000 |
| South America | 150,000,000 |
| Europe | 250,000,000 |
| Total | $500,000,000 |
It is now December 31, 2020, the end of International Foods’ accounting year. No impairment losses were reported on any intangibles in 2019. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indefinite-life intangibles. Additional information at December 31, 2020 is as follows:
| Intangible Asset | Sum of Future Expected Undiscounted Cash Flows | Sum of Future Expected Discounted Cash Flows |
|---|---|---|
| Customer relationships | $1,200,000 | $900,000 |
| Favorable leaseholds | 6,000,000 | 4,400,000 |
| Brand names | 14,000,000 | 7,000,000 |
| Reporting Unit | Unit Carrying Value | Unit Fair Value |
|---|---|---|
| Asia | $300,000,000 | $400,000,000 |
| South America | 200,000,000 | 350,000,000 |
| Europe | 600,000,000 | 500,000,000 |
Required
Compute 2020 amortization expense and impairment losses on the above intangibles, following U.S. GAAP.
Enter answers in millions, using decimal places when applicable.
| (in millions) | |
|---|---|
| Amortization expense - identifiable intangibles | $Answer |
| Impairment losses - identifiable intangibles | Answer |
| Goodwill impairment loss | Answer |
| Total | $Answer |
In: Accounting