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2 years ago

What document provided by the seller describes the condition of the property?

1 answer:

8 0

The document that is being used by a seller in which the contents and description of the property is placed for the buyer to see is in the transfer disclosure statement. The transfer disclosure statement will provide the description of the property and if there are any damages in the property of additional fixtures or cost made. It could provide contents such as things having to be furnished or not.

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"what amount of warehouse department cost will be allocated to department music if the service department with the highest perce

bogdanovich [222]

Complete Question:

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $310,000 are allocated on the basis of budgeted warehouse -hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $102,500 and $123,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Departments Support Departments Warehouse Data Center Department Department Music Books Budgeted costs Budgeted warehouse-hours Number of computer hours $310,000 NA 270 $100,000 520 NA $102,50 0 1080 900 $123,00 0 1590 1020 Using the step-down method, what amount of Warehouse Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediate calculations.) A) $34,702 B) $125,393 C) $33,856 D) $104,953

Answer:

Goldfarb's Book and Music Store

Amount of warehouse department cost allocated to department music is:

D) $104,953

Explanation:

a) Data and Calculations:

Support Departments Production Departments

Warehouse Data Center Music Books

Budgeted costs $310,000 $100,000 $102,500 $123,000

Budgeted warehouse-hours NA 520 1,080 1,590

Number of computer hours 270 NA 900 1,020

b) Allocation of Warehouse costs:

Basis for allocation is budgeted warehouse hours:

Data Center = 520

Music = 1,080

Books = 1,590

Total hours 3,190

Allocation of Warehouse cost to Music:

1,080/3,190 * $310,000 = $104,953

b) The step-down method for allocating the manufacturing overheads of service departments to the production departments involves first allocating one service department's cost to the production departments and other service departments in a step-down manner. After all service departments' costs have been so allocated, there is some re-allocation which then eliminates the costs of some departments. This continues until all service departments' costs are allocated. It is unlike the direct method which allocates one service department costs without allocating them to another service department.

4 0

2 years ago

Alex wants to measure the nominal 1998 GDP of $993 billion in 2008 dollars. From the data he gathered, he knows the deflator for

schepotkina [342]

Answer:

$2449

Explanation:

Alex wants to measure the nominal 1998 GDP of $993 billion in 2008 dollars.

Also the deflator for 1998 is 30 and for 2008, it is 74

Now he avoids making a misleading calculation

Therefore, the the nominal 1998 GDP of $993 billion in 2008 dollars

= 993/30×74= $2449.4≅$2449

5 0

2 years ago

Rank the following three single taxpayers in order of the magnitude of taxable income (from lowest to highest). (First mean high

Firlakuza [10]

Answer:

Ahmed's ranking is Third (Lowest Taxable Income)

Baker's ranking is Second

Chin's ranking is First (Highest Taxable Income)

Explanation:

In order to determine the rankings, lets compute each taxpayer's taxable income by making the necessary deductions as applicable. Taxable income calculated for each taxpayer below in serial order. Before we calculate, lets have an idea of how deductions are made.

AGI is defined as the adjusted gross income which is calculated as an individual's gross income minus the expenses that qualify as deductible. These expenses include the likes of contributions to the IRA, payment of interest on student loans, alimony payments, contributions to self-employment insurance, moving expenses, some business related expenses pertaining to educators, artists etc, and some rental expenses associated with a business activity. Therefore, intuitively, we can see that a taxpayer with the highest amount of deductions for AGI would benefit the most when calculating taxable income.

Itemized deductions are expenses that a taxpayer can incorporate to lower their taxable income by reducing their adjusted gross income (AGI). These include certain medical expenses, markup on house loans and charities. Taxpayer's can chose between either opting to deduct itemized expenses or standard deductions which is a fixed deduction allowed under tax law. Obviously, a taxpayer would go for the deduction amount which is the highest. Standard deduction is $ 5,950. Therefore, among the taxpayer's, the one with the highest amount of itemized deductions would benefit the most.

Lets calculate taxable income now.

(1) Ahmed

Gross Income: 80,000

Less Deduction for AGI: (8,000)

Adjusted Gross Income: 72,000

Less higher of itemized deduction or standard deduction: (5,950)

Taxable Income: 66,050

(2) Baker:

Gross Income: 80,000

Less Deduction for AGI: (4,000)

Adjusted Gross Income: 76,000

Less higher of itemized deduction or standard deduction: (5,950)

Taxable Income: 70,050

(3) Chin:

Gross Income: 80,000

Less Deduction for AGI: (0)

Adjust Gross Income: 80,000

Less higher of itemized deduction of standard deduction: (8,000)

Taxable Income: 72,000

As we can see from the above, since Ahmed has the highest deductions for AGI he has the lowed adjusted gross income. He can then take use of the fact that he can deduct a standard deduction of 5,950 (while not having any itemized deductions) to further lower his taxable income.

Chin did not have an deductions for AGI which made his taxable income the highest.

Note: Taxpayers can also deduct personal and dependency deductions but these have been excluded in the context of the question based on the assumption that these deductions have either not been made or would be equal for all three taxpayers. The answer would not be affected in either case.

5 0

2 years ago

Dell is a product of the Digby company. Digby's sales forecast for Dell is 2079 units. Digby wants to have an extra 10% of units

Thepotemich [5.8K]

Answer:

Option (B) is correct.

Explanation:

Sales forecast = 2079 units

Ending Inventory to be maintained:

= 10% of forecast sales

= 10% (2079 units)

= 208 units

Production:

= Sales + Ending Inventory - Beginning Inventory

= 2079 units + 208 units - Nil

= 2,287 units

Taking current inventory into account, Dell's Production of 2,287 units After Adjustment have to be in order to have a 10% reserve of units available for sale.

8 0

2 years ago

The following are nine technical accounting terms introduced or emphasized in this chapter. Responsibility margin Transfer price

Ostrovityanka [42]

Answer: Please refer to Explanation

Explanation:

The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.

a. The costs deducted from the contribution margin to determine the responsibility margin. TRACEABLE FIXED COSTS.

b. Cost to produce plus a predetermined markup. COST-PLUS TRANSFER PRICE

c. Fixed costs that are readily controllable by the manager. NONE

d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. PERFORMANCE MARGIN.

e. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of various marketing strategies on the income of the business. CONTRIBUTION MARGIN.

f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. RESPONSIBILITY MARGIN.

g. The amount used in recording products or services supplied by one business unit to another. TRANSFER PRICE.

5 0

2 years ago