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3 years ago

The following inventory valuation errors have been discovered for Knox Corporation:

Business

1 answer:

Whitepunk [10]3 years ago

7 0

Answer:

Income +/- inventory adjustment

2015: 138,000 - 23,000 = 115,000

2016: 254,000 + 61,000 = 315,000

2017: 168,000 + 17,000 = 185,000

Explanation:

Inventory Identity:

Beginning + Purchases = Ending + COGS

As the mistake is on the right side it compensates by the other component which is COGS

When the inventory is overstated this means COGS is understated.

We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.

When the inventory is understated this means COGS is overstated.

We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.

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Project Management Practice ProblemBragg’s Bakery is building a new automated bakery downtown Sandusky. Here are the activities

pav-90 [236]

Answer:

a. The normal project length is 36 weeks.

b. The critical path in this project is A-C-E-F.

c. The activity that you choose to crash first to reduce the duration of the project by one week is E because it has the least expediting cost/week amongst A, C, E, F.

d. The project length if all activities are crashed to their minimum is 23 weeks.

e. The slack for activity D is 5 weeks.

Explanation:

a) The normal length of the project = completion time of last activity = 36 weeks.

b) The criteria for critical activity:

$LC_{i} = ES_{i} ,\\LC_{j} = ES_{j} ,\\$

$ES_j - ES_i = LF_j - LF_{i} =$ duration of the activity

where ES = Earliest start time, EF = Earliest finish time , LC = latest completion time, LF = latest finish time ,

The suffix- i refers to the preceding node, suffix-j refers to the succeeding node.

activities satisfying above all criteria are A, C, E, F

therefore critical path is A-C-E-F.

c) To reduce the project duration by 1 week. we should choose to crash among critical activities A, C, E, F. thus we choose to crash activity E because it has the least expediting cost/week amongst A, C, E, F.

d) if we crash all the activities to their minimum, then the project length = sum of crash time of all critical activities

= [6 + 10 + 6 + 1]

= 23 weeks.

e) The slack of activity d = LS - ES = 34 - 29

= 5 weeks

The critical path is given in the diagram,

7 0

3 years ago

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Lab

alina1380 [7]

Answer:

Machine setups= $173.8 per setup

Special processing= $136.67 per machine hour

General factory= $13 per direct labor hour

Explanation:

To calculate the activities cost rates, we need to use the following formulas:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setups= 34,760 / 200= $173.8 per setup

Special processing= 136,670 / 1,000= $136.67 per machine hour

General factory= 819,000 / 63,000= $13 per direct labor hour

5 0

3 years ago

Marketing Strategy Formulation

Keith_Richards [23]

Answer:

Marketing Strategy Formulation

Goals indicate what a business unit wants to achieve; strategy answers how to get there.

Basic generic strategies

Overall cost leadership

The business works hard to achieve the lowest costs. The problem with this strategy is that other food trucks will usually emerge with still lower costs. The real key is for Chix and Waffles to achieve the lowest costs among those competitors adopting a similar differentiation or focus strategy.

Differentiation

The business concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market(s).

Focus

The business focuses on one or more narrow market segments rather than going after a large market. The food truck gets to know the needs of these segments and pursues either cost leadership or a form of differentiation within the target segments.

Goal Formulation

Goals are listed hierarchically, from most to least important. State the objectives quantitatively with a time line and a due date. Your goal at this point of your business plan is to execute the business plan in order to achieve the budgeted profits by the end of the first quarter of re-opening.

Examples

Goal #1: Achieve budgeted profits of __________ by July 31, 2021.

Strategy #1 - How are you going to do it? Develop a statement or series of statements that tell how you are going to achieve profit. Use your cost control course or purchasing course to list a series of actions that will achieve the following costs.

Actions: Food cost: __________

Bar cost: ___________

Labor cost: _________

Strategy #2

Goal #2: Achieve budgeted sales of __________ by July 31, 2021.

Strategy #1 - How are you going to do it? Develop a statement around one of the three generic strategies listed above.

Actions: Achieve cost leadership of our direct competition through ________________ (use of publicist, advertising, promotions, TV, etc.).

Strategy #2

Goal #3: Execute cultural values to embrace market to build concept loyalty and build repeat customer trial to 12 visits per quarter by July 31, 2021.

Strategy #1 – How are you going to establish a guest list and measure repeat patronage?

Actions:

8 0

3 years ago

One important change that resulted from the movement to enterprise systems was the creation of stronger, faster, and more effec

nignag [31]

The answer to the space provided is hops. Therefore, when we complete the sentence, we will have ‘One important change that resulted from the movement to enterprise systems was the creation of stronger, faster, and more effective hops among value chains.’

3 0

3 years ago

benjamin company has the following results of operations for the pat tyear. A foreign company (whose sales will not affect Benja

maks197457 [2]

Answer:

Increase by $5,975

Explanation:

Calculation to determine the profit

First step is to calculate the Direct Material and Direct labor per unit

Direct Material and Direct labor per unit=$100,000/16,000

Direct Material and Direct labor per unit=$6.25

Second step is to calculate the Relevant Variable Overhead

Relevant Variable Overhead = 20,000 * 20%

Relevant Variable Overhead= $4,000

Third step is to calculate the

Relevant Variable Cost per unit = $4,000 / 16,000

Relevant Variable Cost per unit= $0.25

Fourth step is to calculate the Total Relevant Variable cost per unit

Total Relevant Variable cost per unit = $6.25 + $0.25

Total Relevant Variable cost per unit= $6.5

Fifth step is to calculate the Relevant Contribution Margin per unit

Relevant Contribution Margin per unit = $8.05 - $6.5

Relevant Contribution Margin per unit= $1.55

Sixth step is to calculate the Total Contribution

Total Contribution = 4,500 * $1.55

Total Contribution= $6,975

Now let calculate the profit using this formula

Profit = Contribution - Fixed Cost

Let plug in the formula

Profit = $6,975 - $650 - $350

Profit = $5,975

Therefore If Benjamin accepts the offer, its profits will:Increase by $5,975

5 0

3 years ago