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3 years ago

Jefferson tutoring had the following payroll information on Feb 28:

Business

1 answer:

Norma-Jean [14]3 years ago

6 0

Answer: D. all of the above.

Explanation:

FUTA:

Cumulative earnings were $4,000. FUTA is one the first $7,000 which means that only $3,000 is left to be taxed on account of the cumulative earnings prior to this payroll having been taxed:

= 0.8% * 3,000

= $24

This will be credited to FUTA Payable to recognize that Jefferson owes this liability.

SUTA:

Same goes for SUTA:

= 2% * 3,000

= $60

This will be credited to SUTA Payable to recognize that Jefferson owes this liability.

Payroll tax expense:

= FICA taxes + Medicare + FUTA + SUTA

= ((6.2% + 1.45%) * 4,000) + 24 + 60

= $390

This will be debited to Payroll Tax expense because expenses are debited when they increase.

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Adam Plastics, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi

inysia [295]

Answer:

c. $385,958.90

Explanation:

Step 1 Determine the Total Cost Incurred for Both materials and Conversion

Raw Materials

Opening Work In Process $200,000

Add Cost Added during the year $2,000,000

Total $2,200,000

Conversion

Opening Work In Process $200,000

Add Cost Added during the year $2,500,000

Total $2,700,000

Step 2 Determine the total equivalent units for materials and conversion

Materials

Closing work in process 100 × 100% = 100

Completed and Transferred (600+200-100)×100% =700

Total =800

Conversion

Closing work in process 100 × 30% = 30

Completed and Transferred (600+200-100)×100% =700

Total =730

Step 3 Determine equivalent cost per unit of materials and conversion costs

Materials = $2,200,000/800 = $2,750

Conversion = $2,700,000/730 = $3,699

Step 4 Determine the cost assigned to Ending WIP

Materials ($2,750×100) = $275,000

Conversion Cost ($3,699×30) = $110,970

Total =$385970

5 0

3 years ago

Equipment with a cost of $225,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 10,000 hours. It

elixir [45]

Answer:

The depreciation is $52,500

Explanation:

The formula to compute the depreciation under the straight-line method is shown below:

= $\dfrac{(original\ cost - salvage\ value )}{Number\ of\ years}$

= $\dfrac{(\$225,000 - \$15,000)}{4\years}$

= $52,500

Under the straight-line method, the depreciation expense should be the same for the remaining useful life. Life of the equipment or machine should always be expressed in years, not in hours.

So, these usage of hours should be ignored.

4 0

3 years ago

Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $12,000/day to oper

stepan [7]

Answer:

Operate mine 1 four 4 days and mine 2 during 6 days to obtain minimum cost for the desired output of 850 gold and 18,000 silver

Explanation:

We generate the equation system on excel:

(50g + 3000s) Q_1 --> output generated on Mine 1

(75g + 1,000s) Q_2 --> output generated on Mine 2

12,000 Q1 + 17,000 Q2 = cost of the mines

we do solver to minimize the days of each mine considering a desired output of 18,000 silver and 650 gold:

and get the following:

M1 4 days output: (50g + 3000s) 4 = 200 g 12,000s

M2 6 days output: (75g + 1,000s) 6 = 450g 6,000s

Cost: 12,000 x 4 + 17,000 x 6 = 150,000

6 0

3 years ago

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a

PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0

2 years ago

XYZ Corporation, whose common stock is currently selling for $40 per share, is having a rights offering. The terms of the offeri

____ [38]

Answer:

$0.45

Explanation:

Computation for the theoretical value of a right before the ex-rights date

Using this formula

Theoretical value=(Common stock-Required offering subscription shares)÷(Offering require right+1)

Let plug in the formula

Theoretical value= ($40 ‒ $35) ÷ (10+1)

Theoretical value= $5.00 ÷ 11

Theoretical value=$0.45

Therefore the theoretical value of a right before the ex-rights date will be $0.45

3 0

2 years ago