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2 years ago

Swifty Corporation’s unit manufacturing cost is:

1 answer:

7 0

The incremental profit for Swifty Corporation upon the acceptance of the order will amount to around $2000.

<h3>What is incremental profit?</h3>

According to the information provided, the actual variable cost upon acceptance of the order will be $52. Now, the margin for Swifty Corporation will be 53 – 52 = $1.

As the order is received for a production of 2000 units, the net incremental profit for acceptance of such order will be 2000 x $1 = $2,000.

Hence, option D holds true regarding the incremental profit of Swifty Corporation.

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Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sol

Sedbober [7]

Answer:

1. Cost to retail ratio = Cost of goods available for sale/ Retail value of goods available for sale

- Cost of goods available for sale = $430000 + $920000 + $62550 = $1412550

- Retail Value of goods available for sale = Retail value of inventory + Net Markup - Net Markdown = $565000 + $1340000 + $61000 - $31000 = $1935000

Cost to retail ratio = Cost of goods available for sale/Retail value of goods available for sale = ($1412550/$1935000)*100 = 73%

Sales value at retail = $1265000

So, Cost Of goods Sold = Sales Value at retail*Cost to retail ratio = $1265000*73% = $923,450

2. Ending Inventory Retail Value = Retail value of goods available for sale-Sales value at retail = $1935000 - $1265000 = $670,000

So, Cost of ending inventory = Ending inventory value at retail*Cost to retail ratio = $670000*73% = $489,100

8 0

3 years ago

The following information is available for two different types of businesses for the 2016 accounting year services to is a merch

babunello [35]

Answer and Explanation:

The Preparation of income statement, balance sheet, and statement of cash flows for each of the companies is prepared below:-

Income Statement

HOPKINS CPAs

For the year ended December,31 2016

Particulars Amount

Revenue:

Service Revenue $31,000

Less: Salaries Expense ($19,800)

Net Income $11,200

Balance Sheet

HOPKINS CPAs

As at December 31,2016

Particulars Amount

Assets

Cash $52,200

Total Assets $52,200

Liabilities:

Notes Payable $41,000

Total Liabilities $41,000

Stockholder's Equity:

Retained Earnings $11,200

Total Stockholder's

Equity $11,200

Total Liabilities and

Stockholder's Equity $52,200

Working Note:

The Cash balance as on 31 December, 2016

= Borrowed amount + Collection from customer - Salary expense

= $41,000 + $31,000 - $19,800

=$52,200

Statement of cash flows

HOPKINS CPAs

For the Year Ended 31, December, 2016

Particulars Amount

Cash Flows From Operating Activities:

Cash Inflow from Clients $31,000

Cash outflows for Salaries -$19,800

Net Cash Flow from Operating Activities $11,200

Cash Flows From Investing Activities: $0

Cash Flows From Financing Activities:

Cash Inflow from Loan $41,000

Net Cash Flows from Financing Activities $41,000

Net Increase in Cash $52,200

Add: Beginning Cash Balance $0

Ending Cash Balance $52,200

Income Statement

Sports clothing

For the Year Ended 31 December,2016

Particulars Amount

Revenue:

Service Revenue $30,000

Less;Cost of Goods Sold -$16,800

Gross Margin $13,200

Less: Operating Expense -$2,400

Net Income $10,800

Balance Sheet

Sports clothing

As of December 31,2016

Particulars Amount

Assets:

Cash $48,600

Merchandise Inventory $3,200

Total Assets $51,800

Liabilities:

Notes Payable $41,000

Total Liabilities $41,000

Stockholder's Equity:

Retained Earnings $10,800

Total Stockholder's Equity $10,800

Total Liabilities and

Stockholder's Equity $51,800

Notes:-

Cash balance on 31 December,2016 = Borrowed amount - Purchase of Inventory + Collection from sale of inventory -Operating expense

= $41,000 - $20,000 + $30,000 - $2,400

= $48,600

Merchandise Inventory = Purchase - Cost of goods sold

= $20,000 - $16,800

= $3,200

Statement of Cash Flows

Sports Clothing

For the Year Ended 31, Dec 2016

Particulars Amount

Cash Flows From Operating Activities

Cash Inflow from Customers $30,000

Less: Inventory for Cash Outflow -$20,000

Less: Expenses for Cash Outflow -$2,400

Net Cash Flow From Operating Activities $7,600

Cash Flow From Investing Activities $0

Cash Flow From Financing Activities

Cash Inflow from Loan $41,000

Net Cash Flow From Financing Activities $41,000

Net Increase in Cash $48,600

Add: Beginning Cash Balance $0

Ending Cash Balance $48,600

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3 years ago

Details that suzanne and shandra discovered about competitors in their market would most likely be analyzed in which section of

Aleksandr-060686 [28]

Analyze in food prices and personal items as well.

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3 years ago

It usually takes less time to buy a six-pack of Pepsi, a loaf of bread, and a bag of potato chips at a small convenience store (

Marrrta [24]

Answer:

a person who works at a full-service grocery store

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3 years ago

Predetermined Overhead Rate; Various Cost Drivers

spayn [35]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Actual manufacturing overhead= $340,000

Budgeted machine hours= 10,000

Budgeted direct-labor hours= 20,000

Budgeted direct-labor rate= $14

Budgeted manufacturing overhead= $364,000

Actual machine hours= 11,000

Actual direct-labor hours= 18,000

Actual direct-labor rate= $15

First, we need to calculate the predetermined overhead rate for each cost driver:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine-hours:

Estimated manufacturing overhead rate= 364,000/10,000= $36.4 per machine hour

Direct-labor hours:

Estimated manufacturing overhead rate= 364,000/20,000= $18.2 per direct labor hours

Direct-labor dollars:

Estimated manufacturing overhead rate= 364,000/(20,000*14)= $1.3 per direct labor dollar

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machine-hours:

Allocated MOH= 36.4*11,000= $400,400

Direct-labor hours:

Allocated MOH= 18.2*18,000= $327,600

Direct-labor dollars:

Allocated MOH= 1.3*(18,000*15)= $351,000

Finally, we can determine the over/under allocation:

Over/under allocation= real MOH - allocated MOH

Direct-machine hours:

Over/under allocation= 340,000 - 400,400= $60,400 overallocated.

Direct-labor hours:

Over/under allocation= 340,000 - 327,600= $12,400 underallocated.

Direct-labor dollars:

Over/under allocation= 340,000 - 351,000= $11,000 overallocated

3 0

4 years ago