1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
iren [92.7K]
3 years ago
12

Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm

's accountant has provided the following data:
Budgeted Budgeted Actual Actual Direct Costs Direct Costs Center Revenue Revenue 336,000 425,000 561,000 $ $364,800 372,000 Downtown Irvine 588,000 516,800 465,000 H.Beach 756,000 714,000 638,400 713,000 $1,680,000 $1,700,000 $1,520,000 $1,550,000

Totals WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $71,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices.

How much advertising would be allocated to the Irvine center?
Business
1 answer:
m_a_m_a [10]3 years ago
3 0

Answer:

The correct answer is $23,430.

Explanation:

According to the scenario, the given data are as follows:

Total actual revenue = $1,700,000

Irvine Center actual revenue = $561,000

Advertising cost = $71,000

So we can calculate the amount of advertising that would be allocated to the Irvine center by using following formula:

Advertising Cost allocated = (Irvine Center actual revenue × Advertising cost)   ÷ Total actual revenue

By putting the value, we get

= ($561,000 × $71,000)  ÷ ( $1,700,000)

= $23,430.

You might be interested in
1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out metho
Sveta_85 [38]

Complete Question:

The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000

Required: 1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Inventory, June 30 $ Cost of goods sold $

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system. Inventory, June 30 $ Cost of goods sold $

3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar. Inventory, June 30 $ Cost of goods sold $

4. Compare the gross profit and June 30 inventories using the following column headings. For those boxes in which you must enter subtracted or negative numbers use a minus sign. FIFO LIFO Weighted Average Sales $ $ $ Cost of goods sold Gross profit $ $ $ Inventory, June 30 $ $ $

Answer:

<h2>Dunne Co.</h2>

1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system:

a) Inventory, June 30  = $32,864 (26 x $1,264)

b) Cost of goods sold = Cost of goods available for sale - Ending Inventory = $310,776 ($343,640 - $32,864)

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system:

a) Inventory, June 30 =  $31,240

Beginning Inventory 25 units at $1,200 = $30,000

Purchase on April 8, 1 unit at $1,240               1,240

Total Ending Inventory                                $31,240

b)Cost of goods sold = Cost of goods available for sale - Ending Inventory

= $311,400 ($343,640 - $32,240)

3. Determination of the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system. Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar:

a) Inventory, June 30 = $32,500 (26 x $1,250)

b) Cost of goods sold = $311,250 (249 x $1,250)  

4. Comparison of the Gross Profit and June 30 inventories using the following column headings:

                                         FIFO                  LIFO         Weighted Average

Sales                            $525,250         $525,250         $525,250

Cost of goods sold        -310,776            -311,400              -311,150

Gross profit                  $214,474           $213,850           $214,100

Inventory, June 30       $32,864             $31,240            $32,489.60

Explanation:

a) Data on Purchase and Sale Transactions with the Quarter:

Date     Transaction     Number of Units    Per Unit             Total

                                         In        Out                              Cost      Sales

Apr. 3    Inventory          25                        $1,200       $30,000

     8      Purchase          75                          1,240          93,000

    11      Sale                                40           2,000                          80,000

   30     Sale                                30           2,000                          60,000

May 8   Purchase          60                         1,260           75,600

    10     Sale                               50           2,000                         100,000

    19    Sale                                20           2,000                          40,000

   28    Purchase          80                         1,260         100,800

June 5 Sale                               40           2,250                          90,000

       16 Sale                               25           2,250                          56,250

       21 Purchase         35                         1,264           44,240

      28 Sale                               44           2,250                          99,000

b) Goods Available   275                                         $343,640

Cost of goods sold   249                                   See calculations

Sales                                       249                                          $525,250

Ending Inventory        26          See Calculations

c) Average cost of goods = Cost of goods available for sale/Quantity of goods available for sale = $343,640/275 = $1,249.60

d) Under the periodic inventory system:

1) FIFO assumes that the goods bought first are sold first.

2) LIFO assumes that the goods bought last are sold first

3) Weighted Average takes for granted that the cost of goods available for sale and inventory can be determined with the weighted average.  

Using the period inventory system, it is when physical count is taken of inventory that one can estimate its value.  Unlike the perpetual inventory system, the periodic inventory system waits till a financial period ends to value stock.  The results for ending inventory under the weighted average method, using the perpetual inventory system differs from the results under the same method, using the periodic inventory system.

8 0
3 years ago
Suppose that production for good X is characterized by the following production function, Q = K0.5L0.5, where K is the fixed inp
Ad libitum [116K]

Answer:

B). $12

Explanation:

As per the given data, the AFC(Average Fixed Cost) for employing 25 factors of labor and 16 factors of capital would be $12.

We are given the production function,

Q = K^{0.5} L^{0.5}

where,

K = allotted input in short-term

Rental rate of each unit/factor(r) = $15

Wage per factor(w) = $5

As we know, the two inputs are labor, as well as, capital;

To find AFC, we need TC;

so,

TC = (Fixed cost + Variable cost)

TC = (240(15 * 16) + 125(25 * 5) = 365

Thus,

AFC = $ 12

8 0
3 years ago
Who did publisher Henry Luce credit with the provision of “the abundant life” in his blueprint for postwar prosperity, The Ameri
Ratling [72]

Answer:

The correct answer is d. Free enterprise.  

Explanation:

Henry Robinson Luce was known as an American publisher and journalist. They gave him the name of  "the most influential private citizen in the America of his day". This magnate published  what is called “The American Century.” “The American Century” also showed “the vision of America as the dynamic leader of world trade,” and this guy Henry Luce could not have fathomed any economic basis for national leadership besides “free enterprise.”

8 0
3 years ago
A business goes to the trouble and expense of segmenting _________.a. its markets when its customers are dissatisfied. b. it exp
malfutka [58]

Answer:

b. it expects that this will increase sales and profits

Explanation:

6 0
3 years ago
"Prepare the issuer's journal entry for each of the following separate transactions.
Charra [1.4K]

Answer:

Dr cash        $303,500

Cr common stock                                      $133,500

Cr paid in capital in excess of par value $170,000

Second issue of shares:

Dr cash       $74,000

Cr common stock  $74,000

Explanation:

The cash received from the issuance of 44,500 at $3 par value is $303,500 which is to debited to cash and credited to common stock for$133,500 ($3*44,500) while the balance of $170,000  ($303,500-$133,500) is credited to paid in capital in excess par value account.

On the issuance of no par value common stock for cash of $74,000,the cash account is debited as usual with $74,000 while the common stock account is credited with same amount.

3 0
3 years ago
Other questions:
  • Three strategies to use when negotiating a solution are to do the unexpected, to provide a way out, and to _____.
    13·2 answers
  • Offset overflow freeze set when offset storage within idrs is not large enough to hold all generated transactions, or credit bal
    13·1 answer
  • A shoe manufacturer sells high-end designer shoes to wholesalers who, in turn, sell a variety of shoes and other leather accesso
    6·1 answer
  • Companies that show profits on the income statement will always show positive cash flows from operating activities.
    7·1 answer
  • Which of the following are reasons managed floating exchange rates were adopted by the industrialized nations in 1973?
    14·1 answer
  • Using the information below for Sundar Company; determine the cost of goods manufactured during the current year:Direct material
    5·1 answer
  • Bonita Company is trying to determine the equivalent units for conversion costs with 4500 units of ending work in process at 70%
    7·1 answer
  • 3. Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in invento
    13·1 answer
  • Emily Corporation has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation
    14·1 answer
  • During year 1 meriwerher construction company started a construction job with a contract price 3,000,000 the job was completed i
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!