Tropic Zone Corporation experienced the following variances: materials price $260 U, materials quantity $1,260 F, labor price $590 F, labor quantity $370 F, and overhead $890 U. Sales revenue was $68,200, and cost of goods sold (at standard) was $38,200. Determine the actual gross profit.
Actual gross profit $
In: Accounting
imagine a small business that you would like to open (Gym). Give a comprehensive overview of the opportunities and challenges facing the business. This might include (but not limited to) discussions of your business's customers, revenue sources, business model, competition, operating environment, marketing efforts, information technology, management structure, etc., etc. s. Be creative. Be concise.
In: Operations Management
Kinney’s Repair Ltd. was started on May 1. A summary of May transactions is presented below.
| 1. | Shareholders invested £15,572 cash in the business in exchange for ordinary shares. | |
| 2. | Purchased equipment for £5,309 cash. | |
| 3. | Paid £248 cash for May office rent. | |
| 4. | Paid £370 cash for supplies. | |
| 5. | Incurred £273 of advertising costs in the Beacon News on account. | |
| 6. | Received £4,133 in cash from customers for repair service. | |
| 7. | Declared and paid a £1,518 cash dividend. | |
| 8. | Paid part-time employee salaries £1,113. | |
| 9. | Paid utility bills $144. | |
| 10. | Performed repair service worth £1,040 on account. | |
| 11. | Collected cash of £121 for services billed in transaction (10). |
Prepare a tabular analysis of the transactions. Revenue is called Service Revenue. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis (15,000).)
From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
In: Accounting
A partial adjusted trial balance of Rooney Sports at January 31, 2020, shows the following.
| ROONEY Sports Adjusted Trial Balance January 31, 2020 | ||
|---|---|---|
| Debit | Credit | |
| Supplies | £800 | |
| Prepaid Insurance | 1,800 | |
| Salaries and Wages Payable | £900 | |
| Unearned Service Revenue | 850 | |
| Supplies Expense | 800 | |
| Insurance Expense | 300 | |
| Salaries and Wages Expense | 3,200 | |
| Service Revenue | 3,400 | |
Answer the following questions, assuming the year begins January 1.
(a) If the amount in Supplies Expense is the January 31 adjusting entry and £1,200 of supplies was purchased in January, what was the balance in Supplies on January 1?
The balance in Supplies on January 1 £ _______
(b) If the amount in Insurance Expense is the January 31 adjusting entry and the original insurance premium was for one year, what was the total premium and when was the policy purchased?
The total premium £_______
The policy purchased _______
(c) If £3,700 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019?
The balance in Salaries and Wages Payable at December 31, 2019 £_______
In: Accounting
Preparing Closing Entries
The following selected accounts and amounts are from the adjusted trial balance for Seattle Inc.
| Sales | $192,500 | Cost of goods sold | $92,750 |
| Service revenue | 3,500 | Interest expense | 7,000 |
| Operating expenses | 42,000 | Dividends | 19,250 |
| Income tax expense | 8,750 |
Required
Prepare the closing entries for revenues, expenses, and dividends. Use the Income Summary account to close income statement amounts.
| General Journal | ||
|---|---|---|
| Account Name | Dr. | Cr. |
| Answer | Answer | |
| Service Revenue | Answer | Answer |
| Answer | Answer | |
| To close revenues to income summary | ||
| Answer | Answer | |
| Operating Expenses | Answer | Answer |
| Income Tax Expense | Answer | Answer |
| Costs of Goods Sold | Answer | Answer |
| AnswerRetained EarningsDividendsCommon StockInterest RevenueSalesService RevenueSalesService RevenueInterest ExpenseIncome Tax ExpenseOperating ExpensesIncome Summary | Answer | 7,000 |
| To close expenses to income summary | ||
| Answer | Answer | |
| Answer | Answer | |
| To close income summary to retained earnings | ||
| Answer | Answer | |
| Answer | Answer | |
| To close dividends to retained earnings | ||
In: Accounting
1) Syarikat Sabah prepares lumber for companies who manufacture furniture
(a) The main product is finished lumber with a byproduct of wood
shavings. The byproduct is sold to plywood manufacturers. For July,
the manufacturing process incurred RM332,000 in total costs. 80,000
board feet of lumber were produced and sold along with 6,800 kg of
shavings. The finished lumber sold for RM6.00 per board foot and
the shavings sold for RM0.60 a kg. There were no beginning or
ending inventories.
Required:
Prepare two statements of financial position as at 31 December 2019 showing the byproduct as a cost reduction during production, and as a revenue item when sold each
(b) Distinguish and briefly discuss the merits [or demerits] between the two principal methods of accounting for byproducts: the production byproduct method and the sale byproduct method.
(c) Identify the revenue or expense amounts necessary to make a sell-or-process-further decision and the reasons behind them
(d) Identify the four methods of allocating joint costs to individual products and the most preferred method among accountants.
In: Accounting
Your pricing team has run an A/B test and determined that when the price of your product is $300 the quantity demanded is 100 units. However, when the price is $200 quantity demanded is 150 units.
Your procurement and warehousing team has also provided a best estimate of your costs. The fixed cost for rent is $1,000 / month. The variable cost to procure and ship your product is 8Q + 2Q²
Answer the following questions:
Write out your demand and inverse demand functions.
Write out your profit function.
Using calculus, what is the quantity that maximizes profit (prove using derivatives that it is indeed a maximum)?
Using Excel, create a graphshowing TR, TC, and Profit from Q = 50 to Q = 200 by increments of 10.
At P=84
How much quantity is demanded?
What is the elasticity of demand?
The company is debating increasing price by 5%. What will happen to revenue if price increases by 5%? (Revenue goes down or goes up? Why?)
In: Economics
The state of Texas is seeking to raise $500 million through the sale of general obligation bonds. Which of the following will support the repayment of the bond issue?
Select one:
a. User Fees
b. Property Taxes
c. Sales taxes
d. None of the above
The state of Massachusetts is seeking to raise $300 million through the sale of revenue bonds to repair the roadways. Which of the following is correct?
Select one:
a. The offering will be advertised in the daily bond buyer.
b. None of choices.
c. These bonds will be issued through a negotiation.
d. The bonds will be subject to a statutory debt limit.
The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?
Select one:
a. The bonds' legal claim to the tax revenue is in doubt.
b. The bonds received no legal opinion.
c. The bonds received an unqualified legal opinion.
d. None of the above.
In: Economics
Consider the following hourly demand and cost schedule for a firm facing a fixed price of $ 6.00 per unit. (Tπ, is Total Profit).
Q P TR MR TFC TVC TC MC ATC AVC Tπ
0 $6.00 $2.00
1 4
2 6
3 8
4 11
5 15
6 20
7 26
8 33
9 41
10 50
11 60
Complete the columns for ATC, AVC, andMC as well as those for (TC),TVC, & TFC.
Draw the curves for Demand, MR (Marginal Revenue), ATC, AVC, and MC, all in one diagram. Also draw the Total Revenue (TR), Total Cost (TC), TVC, and TFC in a second diagram right below the first one.
Determine, in order to maximize profit, how many units should this firm produce and why?
Calculate the total profit at the profit-maximizing level and demonstrate it graphically and geometrically in the diagrams wherever applicable.
In: Economics
Sharecropping is a farming system in which owners of the land allow others to farm it and then the harvest is split, with some portion (let's say half) going to the laborer and some to the land owner. Renting land (the "English system") is an alternative in which laborers pay a fixed monetary rent and then keep all of the proceeds of their production. For hundreds of years commentators have pointed out that sharecropping lowers overall investment and effort and that renting both generates more revenue for owners and, on average, more revenue for laborers due to the harvest generally being much larger. However, when prices drop significantly for agricultural outputs, rents can exceed the total value of output under the English system. Given that in the English system rent returns more money to land owners and on average generates more income for laborers than sharecropping, why is sharecropping still so common? Note: The answer is not that the sharecroppers are poor.
In: Economics