Required information [The following information applies to the questions displayed below.] O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 29 Direct labor $ 18 Variable manufacturing overhead $ 4 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 560,000 Fixed selling and administrative expenses $ 180,000 During its first year of operations, O’Brien produced 96,000 units and sold 77,000 units. During its second year of operations, it produced 82,000 units and sold 96,000 units. In its third year, O’Brien produced 87,000 units and sold 82,000 units. The selling price of the company’s product is $74 per unit. 2. Assume the company uses variable costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first): a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3.
In: Accounting
Transaction Analysis and Financial Statements
Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of operations:
| January 2: | Filed articles of incorporation with the state and issued 100,000 shares of capital stock. Cash of $100,000 is received from the new owners for the shares. |
| January 3: | Purchased a warehouse and land for $80,000 in cash. An appraiser values the land at $20,000 and the warehouse at $60,000. |
| January 4: | Signed a three-year promissory note at Third State Bank in the amount of $50,000. |
| January 6: | Purchased five new delivery trucks for a total of $45,000 in cash. |
| January 31: | Performed services on account that amounted to $15,900 during the month. Cash amounting to $7,490 was received from customers on account during the month. |
| January 31: | Established an open account at a local service station at the beginning of the month. Purchases of gas and oil during January amounted to $3,230. Blue Jay has until the 10th of the following month to pay its bill. |
Required:
1. Complete the below table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases.
| Blue Jay Delivery Service Transactions for the Month of January |
|||||||||||||||||||||||||
| Assets | = | Liabilities | + | Stockholders' Equity | |||||||||||||||||||||
| Date | Cash | Accounts Receivable | Trucks | Warehouse | Land | Accounts Payable | Notes Payable | Capital Stock | Retained Earnings | ||||||||||||||||
| January 2 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 3 | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 4 | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 6 | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 31-Revenue | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 31-Payment received | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| January 31-Gas & oil | |||||||||||||||||||||||||
| Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Total Assets: | $ | Total Liabilities and Stockholders' Equity: | $ | ||||||||||||||||||||||
Feedback
After every transaction check that equation is still in balance.
The equation equates to a weight balance that requires both sides
to be balanced. An increase on one side either requires an equal
decrease on same side or equal increase on other side. The same
process for decreases. Increases/decreases are actions affecting an
account balance. All transactions involve an exchange.
January 2: Record receipt of cash (increase to asset) in exchange
for capital stock (increase to capital stock).
January 3: Record land and warehouse purchases (increase to assets)
with payment of cash (decrease to asset).
January 4: Record receipt of cash (increase to asset) with notes
payable (increase to liability).
January 6: Record purchase of delivery trucks (increase to asset)
with payment of cash (decrease to asset).
January 31: Record service revenue earned (increase to retained
earnings) with amount due on account receivable (increase to
asset). Revenue is an indirect increase to Retained Earnings.
January 31: Record receipt of cash (increase to asset) with payment
on account receivable (decrease to asset).
January 31: Record gas and oil expense (decrease to retained
earnings) with amount due on account payable (increase to
liability).
2. Prepare an income statement for the month of January.
| Blue Jay Delivery Service | |
| Income Statement | |
| For the Month Ended January 31 | |
| Service revenue | $ |
| Gas and oil expense | |
| Net income | $ |
Feedback
1) Revenue – expenses = net income.
2) Revenues represents all types of income earned.
3) Expenses represent all of the various costs necessary to
generate revenue.
3. Prepare a classified balance sheet at January 31.
| Blue Jay Delivery Service | ||
| Balance Sheet | ||
| January 31 | ||
| Assets | ||
| Current assets: | ||
| Cash | $ | |
| Accounts receivable | ||
| Total current assets | $ | |
| Property, plant, and equipment: | ||
| Delivery trucks | $ | |
| Warehouse | ||
| Land | ||
| Total property, plant, and equipment | ||
| Total assets | $ | |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ | |
| Long-term debt: | ||
| Notes payable | ||
| Total liabilities | $ | |
| Capital stock | $ | |
| Retained earnings | ||
| Total stockholders' equity | ||
| Total liabilities and stockholders' equity | $
Correct |
|
Feedback
In: Accounting
Please use Statistical Software R
Consider a dataset called fandango in fivethirtyeight package:
Identify the Top 5 best rated and Top 5 worst rated movies based on rottentomatoes.
Identify the Top 5 best rated and Top 5 worst rated movies based on the average of three users’ scores (rottentomatoes_user, metacritic_user, and imdb).
Visualize the difference between Fandango stars and actual Fandango ratings. Comment on what you see.
Construct a formal test to see if there is a significant difference between between Fandango stars and actual Fandango ratings.
In: Statistics and Probability
Please write clear grammatically correct answer. Answers that are not grammatically correct will be counted wrong. Simplify your answers as much as possible. Do not write long paragraphs. Answer all 3 questions.
In: Biology
Question 1: Electrostatics
a. Draw the electric field lines around a system that consists of two equal positive charges
b. Calculate the electric force that exists between two objects that are 7.3 x 10^-2 m apart and carry charges of 4.5 x 10^-6 C and -7.2 x 10^-6 C. Is this force attractive or repulsive?
c. Write two or three sentences to explain the effect on the electric force between two charged objects if the amount of charge on one of the objects is doubled at the same time as the distance between the objects is doubled.
In: Physics
QUESTION ONE
a. You are presented with the following information for Unilever Ghana Ltd.
Fixed costs GH¢150,000
Total costs GH¢ 400,000
Sales (50,000 units) GH¢ 500,000
Required:
Calculate the following:
(a) Break-even point in value terms and in units. (5marks)
(b) Margin of safety in value and in units. (5marks)
(c) Budgeted Profit for the period. (3marks)
(d) What is the relationship between sales revenue and margin of safety? (2marks)
b. State five (5) uses of the Cost- Volume- Profit (CVP) Analysis. (5marks)
In: Accounting
A market research firm reports to Unilever Company ( which produces and sells butter) that the estimate of the cross price elasticity between magarine and butter is approximately 1.6. Unilever's price of butter is Ghs 60 per Kilo with sales of 1000 kilos per month. The price of margarine is GHs 25 per kilo with sales of 3500 kilos per month. The price elasticity of butter is estimated to be -3. What would be the effect on the revenue and sales of Unilever and margarine sellers if Unilever decided to cut price of butter to Ghs 54.
In: Economics
Choose two (2) set of financial statements of two companies of UAE for the same latest financial year from similar industries, which are publicly available (online), and:
1. Recognize and describe the main items in the Income Statement, Statement of owner’s equity, and the Statement of Financial Position (Balance Sheet).
2. Compare and contrast the Asset/Liability/Equity/Revenue/Expenses between the two set of financial statements.
3. Outline the possible reasons for the differences of the above items in the two companies’ financial statements (use table and diagram as needed).
In: Accounting
In: Accounting
Consider the world market for computers between the U.S. and China. Let the demand for computers in the U.S. be Du = 3500-2P and in China be Dc = 1800 - 3P. Let the supply of computers in the U.S. be Q u = 500 +P and in China be Qc = 200+2p
Suppose now that the importing country wants to impose an import tariff of $200 per computer. If this tariff is enacted, how much will the consumers in the importing country pay per computer? please draw a graph.
If the $200 tariff is enacted, how much revenue will it generate?
In: Economics