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dusya [7]
1 year ago
13

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending

Raw materials inventory $ 547,000 $ 610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:
Business
1 answer:
aleksandr82 [10.1K]1 year ago
7 0

Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

The raw materials used in manufacturing during the year totaled $1,018,000

<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

brainly.com/question/24258358

#SPJ4

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McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Varia
torisob [31]

Answer:

1,350 units

Explanation:

The computation of the break-even point in composite units is shown below;

Composition contribution margin per unit is

= ($75 - $35) × 5  + ($95 - $40) × 2

= 310

Now break-even point in composite units is

= Fixed cost ÷ Composition contribution margin per unit

= $418,500 ÷ 310

= 1,350 units

8 0
3 years ago
HCC, Inc., expects its dividends to grow at 25 percent per year for the next seven years before levelling off to a constant 3 pe
Minchanka [31]

Answer:

a. $43.21

Explanation:

Find <u>dividend (D) per year;</u>

D1 = D0(1+g)

D0= current dividend = 1.05

g= growth rate = 25% or 0.25 as a decimal

therefore;

D1 = 1.05(1.25) =1.3125

D2 = 1.3125 (1.25) = 1.6406

D3 = 1.6406(1.25) =2.0508

D4 = 2.0508 (1.25) = 2.5635

D5 = 2.5635(1.25) = 3.2044

D6 = 3.2044(1.25) =4.0055

D7 = 4.0055 (1.25) = 5.0069

Terminal dividend: D8 = 5.0069(1.03) = 5.1571

Next , find the <u>present values</u> of each dividend (at t=0) at 11% discount rate;

1.3125 / (1.11) = 1.1824

1.6406 / (1.11^2) = 1.3315

2.0508 / (1.11^3) = 1.4995

2.5635 / (1.11^4) = 1.6887

3.2044 / (1.11^5) = 1.9017

4.0055 / (1.11^6) = 2.1415

5.0069 / (1.11^7) =  2.4116

Price of growing perpetual at (t= 0) = \frac{5.1571 /(0.11-0.03)}{(1.11)^{7} }  = \frac{64.46375}{2.07616} = 31.0495

Next, sum up all the Present values to get the current stock price;

=43.2064

Therefore, the current price = $43.21

5 0
3 years ago
Suppose that $1 lottery tickets have the following probabilities and values: 1 in 5 to win a free ticket (worth $1), 1 in 100 to
Fantom [35]

Answer:

$0.36

Explanation:

Expected value of the lottery ticket = (p1 x a1) + (p2 x a2) + (p3 x a3) + (p4 x a4)

p1 = probability of winning $1 = 1/5 = 0.2

a1 = $1

p2 =  probability of winning $5 = 1/100 = 0.01

a2 = $5

p3 =  probability of winning $1000 = 1/100,000 = 0.00001

a3 = $1000

p4 =  probability of winning $1 million = 1/10,000,000 = 0.0000001

a4 = $1 million

(0.2 x 1) + (0.01 x 5) + (0.00001 x 1000) + (1,000,000 x 0.00001) = $0.36

4 0
3 years ago
The following transactions apply to Jova Company for Year 1, the first year of operation:
aleksandr82 [10.1K]

Answer:

<u>Year 1: </u>

a. Issued $17,000 of common stock for cash.  ⇒ ASSET SOURCE

Dr Cash 17,000

    Cr Common stock 17,000

b. Recognized $63,000 of service revenue earned on account.  ⇒ ASSET SOURCE

Dr Accounts receivable 63,000

    Cr Service revenue 63,000

c. Collected $56,400 from accounts receivable.   ⇒ ASSET EXCHANGE

Dr Cash 56,400

    Cr Accounts receivable 56,400

d. Paid operating expenses of $36,600.   ⇒ ASSET USE

Dr Operating expense 36,600

    Cr Cash 36,600

e. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. ⇒ ASSET USE  

Dr Bad debt expense 132

    Cr Allowance for doubtful accounts 132

<u>Year 2:</u>

a. Recognized $70,500 of service revenue on account.   ⇒ ASSET SOURCE

Dr Accounts receivable 70,500

    Cr Service revenue 70,500

b. Collected $64,400 from accounts receivable.  ⇒ ASSET EXCHANGE

Dr Cash 64,400

    Cr Accounts receivable 64,400

c. Determined that $860 of the accounts receivable were uncollectible and wrote them off.  ⇒ ASSET EXCHANGE

Dr Bad debt expense 860

    Cr Accounts receivable 860

d. Collected $300 of an account that had previously been written off.  ⇒ ASSET EXCHANGE

Dr Accounts receivable 300

    Cr Bad debt expense 300

Dr Cash 300

    Cr Accounts receivable 300

e. Paid $48,100 cash for operating expenses.  ⇒ ASSET USE

Dr Operating expense 48,100

    Cr Cash 48,100

f. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.  ⇒ ASSET USE

Dr Bad debt expense 117

    Cr Allowance for doubtful accounts 117

<u>trial balance year 1</u>

Dr Cash 36,800

Dr Accounts receivable 6,468

Cr Common stock 17,000

Cr Service revenue 63,000

Dr Operating expense 36,600

Dr Bad debt expense 132

Income Statement

<u>Year 1</u>

Service revenue                                       $63,000

Expenses:

  • Operating expense $36,600
  • Bad debt expense $132                 <u>($36,732)</u>

Net income                                                $26,268

Balance Sheet

<u>Year 1</u>

Assets:

Cash $36,800

Accounts receivable $6,468

Total Assets $43,268

Equity:

Cr Common stock 17,000

Retained earnings $26,268

Total equity $43,268

Statement of changes in stockholders' equity

<u>Year 1</u>

Beginning balance                       $0

Common stock issued               $17,000

Net income                              <u>  $26,268</u>

Ending balance                          $43,268

<u>trial balance year 2</u>

Dr Cash 16,600

Dr Accounts receivable 5,123

Cr Service revenue 70,500

Dr Operating expense 48,100

Dr Bad debt expense 677

Income Statement

<u>Year 2</u>

Service revenue                                       $70,500

Expenses:

  • Operating expense $48,100
  • Bad debt expense $677                 <u>($48,777)</u>

Net income                                                $21,723

Statement of changes in stockholders' equity

Beginning balance:

Common stock issued               $17,000

Retained earnings                     $26,268

Net income                               <u>  $21,723</u>

Ending balance                          $64,991

Balance Sheet

<u>Year 2</u>

Assets:

Cash $53,400

Accounts receivable $11,591

Total Assets $64,991

Equity:

Cr Common stock 17,000

Retained earnings $47,991

Total equity $64,991

Statement of cash flows

<u>Year 2</u>

Net income                                           $21,723

Adjustments to net income:

Increase in accounts receivable         <u>($5,123)</u>

Net cash from operating activities     $16,600

Net cash increase                               $16,600

Beginning cash balance                    <u>$36,800</u>

Ending cash balance                         $53,400  

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