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Evgen [1.6K]
3 years ago
13

Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capita

l stock. True or false?
Business
1 answer:
Cloud [144]3 years ago
6 0

Answer:

false

Explanation:

Paid-in capital is the amount of money or any other form that stockholders pay to the corporation for capital stock. it is considered as an important part of the equity in the business. paid-in capital can be paid for common or preferred stock.

it is considered a way through which stockholders can represent their funds by showing the amount of stock they have purchased

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What's the appropriate response to receiving a talk about breaking a rule?
Marizza181 [45]

Answer:

Listen, dont be disrespectfull, and learn from it

Explanation: Dont dig a deeper hole

5 0
3 years ago
The following transactions are July 2014 activities of Craig�s Bowling, Inc., which operates several bowling centers (for games
ololo11 [35]

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $15,000

         To Games revenue A/c   $15,000

(Being cash collected)

b. Cash A/c Dr $3,000

   Accounts receivable A/c Dr $5,000

                   To Sales revenue $8,000

(Being cash received for selling of equipment)

c. Cash A/c Dr $4,000

      To Account receivable  $4,000

(Being cash received for merchandise sold by the company)

d. Cash A/c Dr $2,500

       To Unearned revenue A/c $2,500

(Being deposit received for the upcoming fall season)

5 0
3 years ago
Webster Corporation's budgeted sales for February are $318,000. Webster pays sales representatives a commission of 5% of sales d
Natali5045456 [20]

Answer:

The aggregate budgeted selling expense for the month of February amounts to $20,900

Explanation:

Selling expense budget is the plan which estimate the selling expense which happen in that period or year or month. It is related to the marketing as well as selling the product to customers. And involve advertising expense, commission, delivery cost and signs.

The aggregate budgeted selling expense for the month of February is computed as:

Aggregate budgeted selling expense = Commission + Monthly Salary of Sales manager + Advertising expense

where

Commission is as:

Commission = Sales × 5%

= $318,000 × 5%

= $15,900

Monthly Salary of Sales manager is $3,700

Advertising expense is $1,300

So,

Aggregate budgeted selling expense = $15,900 + $3,700 + $1,300

Aggregate budgeted selling expense = $20,900

8 0
3 years ago
Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The o
tigry1 [53]

Answer:

Differential analysis for 1 year

                                        Keep old              Change              Differential

                                        machine               machine             amount

sales revenue                  191,000                191,000               0

depreciation expense     -4,840                  -22,760               -17,920

per year

direct materials                -65,200               -65,200               0

direct labor                       -45,300               -15,100                 30,200

power and                        -4,200                 -7,200                  -3,000

maintenance

taxes and                          -1,500                 -5,000                  -3,500

insurance

S&A expenses                  -45,300              -45,300                0

total                                   24,660               30,440                  5,780

If the new machine is purchased, profits will increase by $5,780 every year.

Differential analysis for 5 years

                                        Keep old              Change              Differential

                                        machine               machine             amount

sales revenue                  955,000              955,000             0

depreciation expense     -24,200               -113,800              -89,600

per year

direct materials                -326,000             -326,000            0

direct labor                       -226,500            -75,500               151,000

power and                        -21,000               -36,000               -15,000

maintenance

taxes and                          -7,500                -25,000               -17,500

insurance

S&A expenses                  -226,500           -226,500              0

total                                   123,300             152,200                28,900

If the new machine is purchased, profits will increase by $28,900 for the 5 year period.

6 0
3 years ago
The following data are for the two products produced by Tadros Company. Product A Product BDirect materials$20 per unit $30 per
fenix001 [56]

Answer:

Tadros Company

Plantwide method:

                                                     Product A    Product B

1.1. Manufacturing cost per unit         $40            $85

1.2 Gross profit per unit                      $15           $135

2.1 Gross profit per customer        $300           $675

2.2 Customer of customer to each customer is:

= $80

The gross profit is adequate for each customer.

ABC method:

                                                                 Product A    Product B

3.1The Manufacturing cost per unit         $36.26         $101.61

3.2 Gross profit per unit                             $18.74         $118.39

4.1 Gross profit per customer                $374.85        $591.94

4.2 Cost of customer service  to each customer is $80.

The Gross profit per customer is adequate.

5. The ABC product costing method gives better information to managers of Tadros Company.

c. Activity-based costing method                          

Explanation:

a) Data and Calculations:

                                             Product A                     Product B

Direct materials                   $20 per unit                 $30 per unit

Direct labor hours                0.5 DLH/unit                 1.5 DLH per unit

Total direct labor hours       8,000 (0.5*16,000)       5,400 (1.5*3,600)

Direct labor costs                $160,000 ($20*8,000) $108,000 ($20*5,400)

Machine hours                     0.4 MH per unit            1.2 MH per unit

Batches                                200 batches                 360 batches

Volume                                16,000 units                  3,600 units

Engineering modifications  20 modifications          80 modifications

Number of customers         800 customers            720 customers

Market price                        $55 per unit                 $220 per unit

Direct labor rate  = $20 per direct labor hour (DLH).

Overhead rates based:

a. Plantwide Method:

Total manufacturing overhead costs/Total direct labor hours

$268,000/13,400 = $20

Cost of production:

                                                       Product A        Product B

Direct materials per unit               $320,000         $90,000

Direct labor hours per unit DLH      160,000          108,000

Overhead costs                                160,000          108,000

Total production costs                  $640,000       $306,000

Volume                                          16,000 units     3,600 units

Manufacturing cost per unit         $40                   $85

Income Statement:

                                                     Product A        Product B

Sales Revenue ($55 and $220)  $880,000      $792,000

Total production costs                   640,000        306,000

Gross profit                                  $240,000      $486,000

Volume                                       16,000 units     3,600 units

Gross profit per unit                       $15                $135

Gross profit                                  $240,000      $486,000

Customers                                  800 customers  720 customers

Gross profit per customer          $300              $675

b. Departmental Method:

c. ABC Method:

Additional information follows:

Cost Pools                     Overhead       Costs Driver

Indirect manufacturing

Engineering support      $ 53,600      Engineering modifications

Electricity                           53,600       Machine hours

Setup costs                      160,800       Batches

Nonmanufacturing

Customer service             121,600      Number of customers

Overhead rate using ABC:

Cost Pools                     Overhead       Costs Driver                    Rates

Indirect manufacturing

Engineering support      $ 53,600      100 modifications         = $536

Electricity                           53,600       10,720 Machine hours        $5

Setup costs                      160,800       560 Batches                   $287

Customer service             136,800      1,520 customers              $90

Cost of production:

                                                      Product A        Product B

Direct materials per unit              $320,000         $90,000

Direct labor hours per unit DLH     160,000          108,000

Overhead costs:

Engineering support                         10,720            42,880

Electricity                                          32,000            21,600

Setup costs                                      57,400          103,320

Total production costs                $580,120       $365,800

Volume                                        16,000 units     3,600 units

Manufacturing cost per unit         $36.26        $101.61

Income Statement:

                                                     Product A        Product B

Sales Revenue ($55 and $220)  $880,000      $792,000

Total production costs                    580,120        365,800

Gross profit                                   $299,880     $426,200

Volume                                       16,000 units     3,600 units

Gross profit per unit                     $18.74           $118.39

Gross profit                              $299,880                   $426,200

Customers                               800 customers           720 customers

Gross profit per customer      $374.85                       $591.94

Total production costs             $580,120                   $365,800

Customers                               800 customers           720 customers

Cost per customer                  $725.15                       $508.06

Customer service costs

Customer service             $121,600/1,520 = $80

8 0
3 years ago
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