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
uysha [10]
2 years ago
9

Newton Corporation entered into the following transactions during its first year of operations. (Assume all transactions involve

cash.) Acquired $2,000 of capital from the owners. Purchased $600 of direct raw materials. Used $400 of these direct raw materials in the production process. Paid production workers $800 cash. Paid $400 for manufacturing overhead. Started and completed 200 units of inventory. Sold 50 units at a price of $12 each. Paid $80 for selling and administrative expenses. The amount of net income for the year was:
Business
1 answer:
makkiz [27]2 years ago
8 0

Answer:

Newton Corporation

Net income for the year = $120

Explanation:

a) Data and Calculations:

Direct materials cost =   $400

Direct labor cost =            800

Manufacturing overhead 400

Total manufacturing cost $1,600

Cost per unit = $8

Ending Inventory of finished goods = 150 units * $8 = $1,200

Cost of goods sold = 50 * $8 = $400

Sales revenue = 50 * $12 = $600

Newton Corporation

Income Statement

For the year ended December 31:

Sales Revenue     $600

Cost of goods sold 400

Gross income       $200

Selling & Admin.

 expense                 80

Net Income          $120

b) Newton Corporation's net income is the difference between the Sales Revenue, cost of goods sold and selling and administrative expenses.

You might be interested in
Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can e
Karo-lina-s [1.5K]

Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in airplanes.

Answer: Option D

<u>Explanation:</u>

The resources which are used to produce goods are available in limited amount in the economy. But these resources can be used for alternative purposes and producing various goods. So the producers should focus on the optimum utilization of the resources.

The United States of America can produce 20 airplanes with that amount of the resources, so it should specialist in producing air planes and not on the production of the auto mobiles. Because it can produce only 8 automobiles.

6 0
2 years ago
A statewide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing a
STatiana [176]

Answer:

The correct answer is c. economies of scale.

Explanation:

The situation in which a company reduces its production expenses by expanding is called economy of scale. It is a situation in which the more it occurs, the cost that the company has to manufacture a product is lower.

There is a greater benefit for every extra unit we produce. This reduction in the cost of unit manufacturing is not reduced because the price of raw materials goes down, but to take advantage of a material that we have already bought and in which we invested money in the past.

Therefore, it occurs especially in situations in which the company buys more facilities. If we buy a machinery, the way to take advantage of it is to produce more since it is the way that we get a greater benefit, by taking advantage of the same machinery to produce more products, the unit cost of each product is lower. And we will get more benefit the more we produce. This benefit will be greater since we will not have to increase manufacturing costs since we have already had it before.

3 0
3 years ago
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
natita [175]

Answer:

FINISHING TOUCHES

Balance Sheet  December 31, 2015

(Stockholders’ Equity Section)

Stockholders’ equity:

Common stock  = $100,000

Preferred stock  =  $30,000

Treasury stock  = -$5,500

Additional paid-in capital  = $3,216,000

Total paid-in capital  = $3,340,500

Retained earnings  = $63,100

(Preferred stock  = -$,30,000)

Total stockholders’ equity = $3,373,600

Explanation:

a) 100,000 Common stock issued at $35 per share with $1 par is valued at $1 in the Common Stock section while the difference $34 $(35 - 1) is taken to the Additional paid-in capital at 100,000 x $34.

b) 3,000 Preferred Stock  issued at $11 per share with $10 par is valued at $10 in the Preferred Stock while the difference $1 $(11 - 10) is taken to the Additional paid-in capital at 3,000 x $1.

c) Treasury stock is the repurchase of stock by the company.  It is a contra account to the equity accounts.  It is therefore deducted from the equity section.  Two methods exist for its treatment: the cost method and the par value treatment.  We used the par value treatment.

This involves stating the par value movements in the Treasury stock while  the additional loss or additional gain is taken to the Additional Paid-in Capital section.

On the other hand, the cost method treats the cost of repurchase in the Treasury stock.

d) Additional Paid-in Capital (APIC) account records the above par value received.  It is also where the above par value is deducted for Treasury Stock.

e) Retained Earnings represent the net income after paying dividends to common stockholders and preferred stockholders.

f) To get the total stockholders' equity, the preferred stock is deducted.  Holders of preferred stock are not equity holders.

7 0
3 years ago
A nonprofit group organizes its local fundraisers in teams, with each of its L team leaders responsible for D group directors, a
Akimi4 [234]

Answer:

Each of L team leaders has D group directors, making the total number of group directors equal to (L)(D). And each of those group directors has F fundraisers, again requiring multiplication: that total is (L)(D)(F). (You can try this by plugging in small numbers - if each of 2 leaders has 3 directors, you know there would be 6 directors)

So while statement 1 is not sufficient (there are multiple combinations that could get you to 81, such as L = 1, D = 2, and F = 39; or L = 1, D = 5, and F = 15), statement 2 guarantees that there is only one team leader. This is because 5 is a prime number, and you know that the number of group directors = LD. The only possible way for LD to equal 5 is if L is 1 and D is 5, or if D is 1 and L is 5. And since the stimulus tells you that there are more directors than leaders, the combination must be 5 directors and 1 leader. Accordingly, statement 2 is sufficient.

Explanation:

4 0
3 years ago
A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for h
Mrrafil [7]

Answer:

$797,837

Explanation:

the first withdrawal is $50,000

the second is $51,500

and so on...

the formula that used to solve the interest rate earned by the annuity is:

$50,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / [(1 + i)³⁰ x (i - 3%)]} x (1 + i) = $5,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

we start to simplify the equation by cancelling  {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}

[$50,000 x (1 + i)] / (1 + i)³⁰ = $5,000

now we cancel $5,000 on each side:

[10 x (1 + i)] / (1 + i)³⁰ = 1

now lets take away (1 + i):

10 / (1 + i)²⁹ = 1

things get a little bit more simple now:

10 = (1 + i)²⁹

²⁹√10 = ²⁹√(1 + i)²⁹

1.082636734 = 1 + i

i = 1.082636734 - 1 = 0.082636734 = 8.2636734%

now we replace i in any equation:

= $50,000 x {[(1 + 0.082636734)³⁰ - 1.03³⁰] / [(1 + 0.082636734)³⁰ x (0.082636734 - 0.03)]} x (1 + 0.082636734)

= $50,000 x  {[10.82636738 - 2.427262471] / [10.82636738 x 0.052636734]} x (1 + 0.082636734)

= $50,000 x  {8.399104909 / 0.56986462} x (1.082636734)

= $50,000 x 14.73877236 x 1.082636734

= $797,837

8 0
3 years ago
Other questions:
  • To maintain a competitive advantage, the top management of a national furniture store made the decision to increase employee tra
    13·1 answer
  • Mr. Fulgham cites Singapore as a model city in the use of their water resources. Which of the five forces does this "four tap" p
    5·1 answer
  • There are different standards for due process in civil and criminal cases. True or False
    6·2 answers
  • Experience in the workplace builds a foundation for becoming an entrepreneur in all the following ways EXCEPT
    13·2 answers
  • EA13.
    12·1 answer
  • Which of the following statements is correct? A. Assets on the balance sheet include retained earnings. B. Retained earnings inc
    10·1 answer
  • Which of the following best describes a centralized organization
    9·1 answer
  • The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales an
    9·1 answer
  • Revising for Conciseness - Rejecting Redundancies and PurgingEmpty Words
    6·1 answer
  • The senior vice presidents at Terra Firma Construction are each responsible for a specific function within the organization. One
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!