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1 year ago

The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:

Business

1 answer:

joja [24]1 year ago

7 0

Answer:

1. $513,000

2. $913,200

3. $926,400

4. $154,420

5.11340 Units

Explanation:

1. Calculation for Lone OakÃ¢â‚¬â„¢s manufacturing overhead for the year.

Manufacturing overhead

Indirect labor 109,000

Building depreciation (80000*75%) 60,000

Other factory cost 344,000

Manufacturing overhead $513,000

2. Calculation for Lone OakÃ¢â‚¬â„¢s cost of goods manufactured.

First step is to calculate the Direct material used

Direct material used = 15,800+175000-18200

Direct material used= 172,600

Second step is to calculate the Total manufacturing cost

Total manufacturing cost = 172,600+254,000+513,000

Total manufacturing cost= 939,600

Now let calculate the Cost of goods manufactured

Cost of goods manufactured = 35,700+939,600-62100

Cost of goods manufactured = $913,200

3. Compution for the companyÃ¢â‚¬â„¢s cost of goods sold.

Cost of goods sold = 111100+913,200-97900

Cost of goods sold = $926,400

4. Calculation to Determine net income for 20x1, assuming a 30% income tax rate.

Net income :

Sales 1495000

Cost of goods sold -926,400

Gross profit 568,609

Selling and administrative expense (133000+20000+195000) 348000

Profit 220,600

Tax 30% 66,180

Net income $154,420

(220,600-66,180)

(25%*80,000=20,000)

5. Calculation to Determine the number of completed units manufactured during theyear.

No of unit completed = 1190+(1,495,000/$130 per unit)-1350

No of unit completed =1190+11500-1350

No of unit completed = 11340 Units

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eduard

Answer:

$115,000

Explanation:

Calculation for the total expected cost

First step is to find the variable cost per unit

Variable costs per unit= 60,000/40,000

Variable costs per unit= 1.50 per unit.

Second step is to find the Total variable costs

Total variable costs =50,000 units × 1.50 per units

Total variable costs=$75,000

Last step is add the total fixed costs of the amount of $40,000 to the Total variable costs of $75,000

Total expected cost =$75,000+$40,000

Total expected cost =$115,000

Therefore the total expected cost will be $115,000

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1 year ago

The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.70 per unit. H

Natalija [7]

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40.00 per unit, fixed expenses total $200,000 per year. Its operating results for last year were as follows:

Sales $2,160,000

Variable expenses $1,080,000

Contribution margin $1,080,000

Fixed expenses $200,000

Net operating income $ 880,000

Answer:

$732,625

Explanation:

The contribution per unit is:

Contribution per unit = Selling price per unit - variable cost per unit - Sales commission per unit

Contribution per unit = $80 - $40 - $1.7 = $38.3 per unit

The increase in advertisement expense can be calculated under the new condition by the following formula:

New Sales ($) = (Fixed cost + Profit) * Sales Prices per unit / Contribution Per unit

By putting values we have:

$2,160,000 * 125% = (Fixed cost + $360,000)* $80 per unit / $38.3 per unit

$2,700,000 * $38.3 per unit / $80 per unit = Fixed Cost + $360,000

$1,292,625 - $360,000 = Fixed Cost

Fixed Cost = $932,625

This means that the maximum amount of increase in the advertisement expense would be $732,625 to earn a profit of $360,000

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1 year ago

Read 2 more answers

Which of the following captures the specific actions that leaders take to influence others at work? A.Leadership styles and beha

Tom [10]

Answer:

A.Leadership styles and behaviours

Explanation:

-Leadership styles and behaviours refer to the approach and actions a leader take to direct, motivate and guide people.

-Team processes refer to how the team works to accomplish goals.

-Team characteristics refer to the qualities that a group of people that work together possess.

-Leader power and influence refer to the ability a leader has to convince people to do certain things and achieve a goal.

According to this, the option that captures the specific actions that leaders take to influence others at work is leadership styles and behaviours.

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1 year ago

Financial information for American Eagle is presented in Appendix A at the end of the book. Required: 1-a. Calculate the current

jasenka [17]

Answer:

Find the appendix attached:

Current ratio improved in 2018 from 1.83 in 2017 to 2.00 in 2018

Acid test ratio improved in 2018 from 1.10 in 2017 to 1.18 in 2018

The payment of $100 million accounts payable would make current ratio in 2017 improve from 1.83 to 2.03 and in 2018 from 2.00 to 2.25

The payment of $100 million accounts payable would make acid test ratio in 2017 from 1.10 to 1.12 and in 2018 from 1.18 to 1.22

Find computations below.

Explanation:

2018 2017

Current ratio

Current assets/current liabilities

$968,530/$485,221 2.00

$901,229/$493,783 1.83

Current ratio improved in 2018 from 1.83 in 2017 to 2.00 in 2018

2018 2017

Acid test ratio

(Current assets-inventory)/current liabilities

($968,530-$398,213)/$485,221 1.18

($901,229-$358,446)/$493,783 1.10

Acid test ratio improved in 2018 from 1.10 in 2017 to 1.18 in 2018

Impact of $100,000,000 cash used in settling accounts payable:

2018 2017

Current ratio

Current assets/current liabilities

($968,530-$100,000)/($485,221-$100,000) 2.25

($901,229-$100,000)/$493,783-($100,000) 2.03

The payment of $100 million accounts payable would make current ratio in 2017 from 1.83 to 2.03 and in 2018 from 2.00 to 2.25

2018 2017

Acid test ratio

(Current assets-inventory)/current liabilities

($968,530-$398,213-$100,000)/($485,221-$100,000) 1.22

($901,229-$358,446-$100,000)/($493,783-$100,000) 1.12

The payment of $100 million accounts payable would make acid test ratio in 2017 from 1.10 to 1.12 and in 2018 from 1.18 to 1.22

Download xlsx

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2 years ago

On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual p

Olegator [25]

Answer and Explanation:

The journal entries are shown below:

1. Cash Dr $175,000

To note payable $175,000

(being note payable is issued)

2. Interest expense Dr (8% of $175,000) $14,000

To interest payable $14,000

(being interest expense is recorded)

3. Interest payable $14,000

Note payable $29,830

To cash $43,830

(being cash paid is recorded)

4. Interest expense $6,253

To interest payable $6,253

(being interest expense is recorded)

5. Interest payable $6,253

Note payable $37,577

To cash $43,830

(being cash paid is recorded)

4 0

1 year ago