Answer:
According to consumer price index a tuiton of 1,834 in 1989 is worth: $3,591.58 in 2009
Explanation:
To convert a past price into future we do as follow:
229/117 = 1.9572649
Then, we multiply the past amount by this multiplier to get the value in todays dollars:
1,835 x 1.9572649 = 3,591.581 = 3,591.58
Answer:
1. $235,600
2. $13,320 favorable
3. $159,960 Unfavorable
4-a. Maxwell spent more than anticipated for fixed overhead
b. $44,120
Explanation:
The computation of given question is shown below:-
1. Budgeted fixed overhead = Planned activity × Standard fixed overhead rate per hour
= 19,000 x $12.40
= $235,600
2. Variable Overhead Spending Variance = (Actual machine hours × Standard variable rate per hour) - Actual Variable Overhead
= 22,200 × $7.50 - $153,180
= $13,320 favorable
3. Fixed Overhead Volume Variance = Budgeted fixed overhead - Actual production × Standard hours for actual output × Standard fixed overhead rate per hour
= $235,600 - 6,100 × $12.40
= $159,960 Unfavorable
Note: Two completed units per machine hour
So, Standard hours for actual output = 12,200 ÷ 2
= 6,100
4-a. Maxwell spent more than anticipated for fixed overhead
b. Difference = Actual total overhead - Actual variable overhead - Budgeted fixed overhead
($432,900 - $153,180) - $235,600
= $44,120
Answer:
Ending inventory cost= $10,900
COGS= $15,940
Explanation:
<u>To calculate the ending inventory using LIFO (last-in, first-out) method, we need to use the cost of the lasts units incorporated into inventory:</u>
Ending inventory in units= 1,000 - 550= 450
Ending inventory cost= 340*23 + 110*28= $10,900
<u>Now, the cost of goods sold:</u>
COGS= 270*30 + 280*28= $15,940
Answer: 1. a. Liquidity Ratios
b. Activity Ratios
c. Financial Ratios
d. Profitability Ratios
e. Market Value Ratios
2. A. Seasonal factors can distort data
B. Window dressing might be in effect.
Explanation:
a. Liquidity Ratios give the company an idea of it's ability to access hard currency. Examples include the Current ratio and the Quick ratio.
b. Activity Ratios allows stakeholders know how efficient the company is at running daily operations. Examples include; Receivables Turnover and Asset Turnover ratios.
c. Financial Ratios are very important to the company as they can decide if a company will be able to get loans. They include ratios that measure the firm's ability to pay off debt as well as the overall condition of the firm in terms of it's finances.
Examples include; Net Profit Margin and Debt to Asset ratio.
d. Profitability Ratios
These help ascertain the ability of the business to make returns based on its resources. Examples include Return on Assets and Return on Equity.
e. Market Value Ratio
These essentially help the company and other stake holders know what the company is worth in the market. An example is the Book Value per Share ratio.
2. Seasonal Factors may indeed distort data depending on the type of industry that the firm is into and ratios will usually not show this. For instance, an Ice Cream company will not have strong sales in winter so when interpreting ratio analysis it would be important to note that this could happen.
Another weakness is that ratios are calculated based on the figures that are given by a company. These figures may not truly reflect the actual situation of the company when management supply more optimistic figures than is true. This is called Window Dressing.
It will have the effect of distorting the ratios so that they do not represent a true representation of the actual situation of the company.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $15,000,000
To Bonds payable $15,000,000
(Being issue of bonds is recorded)
2. Interest expense on bonds Dr, $675,000
To cash $675,000 ($15,000,000 × 9% × 6 ÷ 12)
(Being payment of interest is recorded)
3. Bonds payable Dr, $15,000,000
To Gain on redemption of bonds $600,000
To Cash ($15,000,000 × 0.96) $14,400,000
(Being redemption on bonds is recorded)
