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1 year ago

11

Most companies with well-developed project management systems insist that a project must pass an approval of some kind to move f

rom one life cycle stage to the next.A. True
B. False

1 answer:

Romashka [77]1 year ago

8 0

Answer:

it is A. True

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Jed Castanza transfers $90,000 of cash to the JN partnership for a 60 percent interest in the JN partnership. Ned transfers a bu

mojhsa [17]

Answer:

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjusted basis is 30,000 while the property value is 100,000

Explanation:

Mr Castanza

90,000 = 60%

Ned

100,000 - 40,000 = 60,000 = 40%

Total capital

90,000 + 60,000 = 150,000 = 100%

<u>Check for difference:</u>

90,000/150,000 x 60% = 90,000

60,000/150,000 x 40% = 60,000

Their basis will be 90,000 for Mr Castanza

and 60,000 for Ned

Also Ned will recognize a capital gain for 70,000 when performing the transfer of the property. As his adjustedbasis is 30,000 while the property value is 100,000

8 0

1 year ago

At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.5 million. $10.5 million of the purchase price

sdas [7]

Answer:

$511,667

Explanation:

The computation of the depreciation expense for 2019 and 2020 is shown below:

= (Purchase price - residual value) ÷ (useful life)

= ($10,500,000 - $2,500,000) ÷ (25 years)

= ($8,000,000) ÷ (25 years)

= $320,000

The depreciation in this method is the same for the rest of the useful life

Now the book value for 2021 would be

= Purchase price - depreciation for 2 years

= $10,500,000 - $320,000 × 2

= $9,860,000

Now the depreciation for 2021 would be

= ($9,860,000 - $650,000) ÷ 18 years

= $511,667

3 0

1 year ago

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 22 percent, 11 percent, −4 percent, 6 percent,

cupoosta [38]

Answer:

Cherry Jalopies, Inc.:

mean = (0.22 + 0.11 - 0.04 + 0.06 + 0.09) / 5 = 0.52 / 5 = 0.104

variance = [(0.22 - 0.104)² + (0.11 - 0.104)² + (-0.04 - 0.104)² + (0.06 - 0.104)² + (0.09 - 0.104)²] / 5 = (0.013456 + 0.000036 + 0.020736 + 0.001936 + 0.000196) / 5 = 0.007272

standard deviation = √0.007272 = 0.085276 = 8.53%

Straw Construction Company:

mean = (0.16 + 0.23 - 0.01 + 0.01 + 0.17) / 5 = 0.56 / 5 = 0.112

variance = [(0.16 - 0.112)² + (0.23 - 0.112)² + (-0.01 - 0.112)² + (0.01 - 0.112)² + (0.17 - 0.112)²] / 5 = (0.002304 + 0.013924 + 0.014884 + 0.010404 + 0.003364) / 5 = 0.008976

standard deviation = √0.008976 = 0.09474 = 9.47%

5 0

1 year ago

Periodic inventory by three methods The beginning inventory for Midnight Supplies and data on purchases and sales for a three-mo

dybincka [34]

Answer:

1. We have:

Inventory on March 31 = $1,010,625

Cost of merchandise sold for the three-month period = $10,891,875

2. We have:

Inventory on March 31 = $881,250

Cost of merchandise sold for the three-month period = $11,021,250

3. We have:

Inventory on March 31 = $980,975.27

Cost of merchandise sold for the three-month period = $10,921,524.73

4. We have:

Details FIFO LIFO Weighted Average

$ $ $

Sales 19,875,000 19,875,000 19,875,000

Cost of Goods sold <u> (10,891,875) </u> <u> (11,021,250) </u> <u> (10,921,525) </u>

Gross Profit <u> 8,983,125 </u> <u> 8,853,750 </u> <u> 8,953,475 </u>

Inventory, March 31 1,010,625 881,250 980,975

Explanation:

1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

Note: See part 1 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

From the part 1 of the attached excel file, we have:

Inventory on March 31 = $1,010,625

Cost of merchandise sold for the three-month period = $10,891,875

2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

Note: See part 2 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

From the part 2 of the attached excel file, we have:

Inventory on March 31 = $881,250

Cost of merchandise sold for the three-month period = $11,021,250

3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.

Note: See part 3 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system.

From the part 3 of the attached excel file, we have:

Inventory on March 31 = $980,975.27

Cost of merchandise sold for the three-month period = $10,921,524.73

4. Compare the gross profit and the March 31 inventories, using the following column headings.

Details FIFO LIFO Weighted Average

$ $ $

Sales 19,875,000 19,875,000 19,875,000

Cost of Goods sold <u> (10,891,875) </u> <u> (11,021,250) </u> <u> (10,921,525) </u>

Gross Profit <u> 8,983,125 </u> <u> 8,853,750 </u> <u> 8,953,475 </u>

Inventory, March 31 1,010,625 881,250 980,975

6 0

1 year ago

The following costs result from the production and sale of 4,500 drum sets manufactured by Tight Drums Company for the year ende

podryga [215]

Answer:

Tight Drums Company

1. Contribution Margin Income Statement for the year ended December 31, 2019:

Sales Revenue $1,350,000

Variable production costs:

Plastic for casing $121,500

Drum stands 162,000

Wages of assembly workers 414,000

Total variable prodn. costs $697,500

Variable selling costs :

Sales commissions 112,500

Total variable costs $810,000 810,000

Contribution $540,000

Fixed manufacturing costs:

Taxes on factory 15,000

Factory maintenance 30,000

Factory machinery depreciation 90,000

Total Manufacturing overhead $135,000 135,000

Fixed selling and administrative costs :

Lease of equipment for sales staff 30,000

Accounting staff salaries 80,000

Administrative management salaries 160,000

Total fixed selling and admin. costs $270,000 270,000

Operating Profit (Pre-Tax) Income $135,000

Income Tax Expense (Rate = 35%) 47,250

Net Income $87,750

2.Computation of Contribution Margin per unit and Contribution Margin Ratio:

a) Contribution Margin per unit

= Contribution Margin divided by Units sold

= $540,000/4,500

= $120 per unit

b) Contribution Margin Ratio

= Contribution per unit/Selling price * 100

= $120/$300 * 100

= 40%

3. For each dollar of sales, contribution per dollar

= 40% of $1

= $0.40

Explanation:

a) Data:

Sales = 4,500 drums

Selling price = $300 each

Sales Revenue = 4,500 x $300 = $1,350,000

Variable production costs:

Plastic for casing $121,500

Drum stands 162,000

Wages of assembly workers 414,000

Total variable prodn. costs $697,500

Variable selling costs :

Sales commissions 112,500

Total variable costs $810,000

Fixed manufacturing costs:

Taxes on factory 15,000

Factory maintenance 30,000

Factory machinery depreciation 90,000

Total Manufacturing overhead $135,000

Fixed selling and administrative costs :

Lease of equipment for sales staff 30,000

Accounting staff salaries 80,000

Administrative management salaries 160,000

Total fixed selling and admin. costs $270,000

Income Tax Rate = 35%

b) Tight Drums Company's contribution margin income statement is a financial statement that separates all the variable costs from the fixed costs. The difference between Tight Drums' Sales Revenue of $1,350,00 and the Total Variable Costs of $810,000 is called the Contribution Margin.

The Contribution margin of $540,000 shows how much of the sales revenue is left to cover the fixed costs totalling $405,000 and generate operating income, after deducting all the variable costs.

This contribution margin can be expressed per unit by dividing the contribution margin of $540,000 by the 4,500 units sold. The per unit value can then be expressed as a ratio of the selling price. From the contribution margin ratio, we can estimate how much is left per dollar of sales for Tight Drums Company to cover its fixed costs and generate operating income.

7 0

2 years ago