Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019\.\* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2018 and $200,000 for 2019. Year-end funding is $160,000 for 2018 and $170,000 for 2019. No assumptions or estimates were revised during 2018.Calculate (a) project benefit obligation, (b) plan asset and (c) pension expenses as both December 31, 2018 and December 31, 2019.
Answers
Answer:
Part A:
Project benefit obligation:
Balance December 31, 2018=$150,000
Balance December 31, 2019=$359,000
Part B:
Plan Assets:
Balance December 31, 2018=$160,000
Balance December 31, 2019=$346,000
Part C:
Pension expenses:
Balance December 31, 2018=$150,000
Balance December 31, 2019=$225,000
Explanation:
Part A:
Project benefit obligation:
Balance December 31, 2018:
Balance December 31, 2018= Balance January 1,2018+Service Cost 2018+Interest Cost-Benefits Paid
Balance December 31, 2018=0+$150,000+(6%*0)-0
Balance December 31, 2018=$150,000
Balance December 31, 2019:
Balance December 31, 2019=Balance December 31, 2018+Service Cost 2019+Interest Cost-Benefits Paid
Balance December 31, 2019=$150,000+$200,000+(6%*$150,000)-0
Balance December 31, 2019=$359,000
Part B:
Plan Assets:
Balance December 31, 2018:
Balance December 31, 2018=Balance January 1,2018+Annual return on plan assets+Contributions 2019 - Benefits paid
Balance December 31, 2018=0+(10%*0)+$160,000-0
Balance December 31, 2018=$160,000
Balance December 31, 2019:
Balance December 31, 2019=Balance December 31, 2018:+Annual return on plan assets+Contributions 2019- Benefits paid
Balance December 31, 2019=$160,000+(10%*$160,000)+$170,000-0
Balance December 31, 2019=$346,000
Part C:
Pension expenses:
Balance December 31, 2018:
Balance December 31, 2018=Service Cost 2018+interest Cost+Expected return on plan assets
Balance December 31, 2018=$150,000+(6%*0)+(10%*0)
Balance December 31, 2018=$150,000
Balance December 31, 2019:
Balance December 31, 2019=Service Cost 2019+interest Cost+Expected return on plan assets
Balance December 31, 2019=$200,000+(6%*$150,000)+(10%*160,000)
Balance December 31, 2019=$225,000
Related Questions
The following data from the just completed year are taken from the accounting records of Mason Company: Sales$658,000 Direct labor cost$83,000 Raw material purchases$135,000 Selling expenses$106,000 Administrative expenses$46,000 Manufacturing overhead applied to work in process$202,000 Actual manufacturing overhead costs$224,000 InventoriesBeginningEnding Raw materials$8,800$10,200 Work in process$5,900$20,500 Finished goods$74,000$25,100 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows:Debbie Tara Annual Salary $ 150,000 $ 81,000 Billable Hours 2,000 1,800 The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara’s services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup.Required:(1) Compute the predetermined overhead rate.(2) Compute the hourly billing rate for Debbie and Tara. (Do not round your intermediate calculations.)
In an efficient market, professional portfolio management can offer all of the following benefits except which of the following? A. A superior risk-return trade-off B. Low-cost diversification C. A targeted risk level D. Low-cost record keeping
Answers
Answer:
Option (C)
Explanation:
As per the data given in the question,
Price of salt increases by = 25%
Quantity of pepper demanded increases by = 4%
Cross price elasticity = Quantity of demand increases ÷ Price of salt increases
= 4% ÷ 25%
=0.16
Hence Cross-price elasticity of demand between salt and pepper would be positive.
So option (C) is answer
Final answer:
The cross-price elasticity of demand between salt and pepper determines whether they are substitutes or complements. If the cross-price elasticity is zero, they are substitutes. If it is negative, they are complements.
Explanation:
In this scenario, the cross-price elasticity of demand between salt and pepper is zero, indicating that they are not related complements. If salt and pepper were complements, the cross-price elasticity of demand between them would be negative. This means that as the price of one product increases, the quantity demanded of the other product would decrease.
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Answers
Answer:
Explanation:
From the given information:
Assuming we represent x to be the tablets sent from Brooklyn to Manhattan
Thus, (500 - x) to be the tablets sent from Baldwin to Manhattan
Also, suppose we represent y to be the tablets sent from Brooklyn to Amityville
It implies that (400 - x) to be the tablets sent from Baldwin to Amityville
∴
x ≥ 0 ; y ≥ 0
⇒ 500 - x ≥ 0 & 400 - y ≥ 0
The Shipping cost Z = 1(x) + 2(500-x) + 2(y) + 4(400-y)
Z = x + 1000 - 2x + 2y + 1600 - 4y
Z = x -2y + 2600
To minimize the shipping cost:
Thus, by replacing the coordinate values (x,y) into Z, we have:
Point Coordinates(x,y) Value of Z (shipping cost)
0 (0,0) 0
A (0,400) 1800
B (500,400) 1300
C (500,0) 2100
Hence, the minimum cost is 1300.
x = 500 units and y = 400 units
Period Demand F1 F2
1 68 63 66
2 75 70 67
3 70 75 70
4 74 69 72
5 69 70 73
6 72 68 75
7 80 70 77
8 78 74 84
Required:
Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate
Answers
Answer:
Kindly check explanation
Explanation:
Given the data:
Period Demand F1 F2
1 68 63 66
2 75 70 67
3 70 75 70
4 74 69 72
5 69 70 73
6 72 68 75
7 80 70 77
8 78 74 84
Mean absolute deviation (MAD) for F1:
P___Demand(D) __F1__F2___|D - F1|___|D-F2|
1____ 68 _______63 __66____5______ 2
2____75_______ 70__ 67____ 5______ 8
3____70_______ 75__ 70____ 5______ 0
4____74_______ 69__ 72____ 5______ 2
5____69_______ 70__ 73____ 1______ 4
6____72_______ 68__ 75____ 4______3
7____80_______ 70__ 77____ 10 _____3
8____78_______ 74__ 84____ 4______6
Mean absolute deviation (MAD) For F1 :
Σ(|D - F1|)/n :
(5 + 5 + 5 + 5 + 1 + 4 + 10 + 4) / 8
= 39 / 8
= 4.875
Mean absolute deviation (MAD) For F2 :
Σ(|D - F2|)/n :
(2 + 8 + 0 + 2 + 4 + 3 + 3 + 6) / 8
= 28 / 8
= 3.50
F2 seems to be more accurate has it has a Lower MAD value
Final answer:
To determine which forecast is more accurate between F1 and F2, the Mean Absolute Deviation (MAD) for each was calculated. It was found that Forecast F2, with a lower MAD of 3.75 compared to F1's 5.25, is the more accurate forecast.
Explanation:
The subject of this examination pertains to a field in mathematics known as forecasting. The Mean Absolute Deviation (MAD) is a commonly used method to measure the accuracy of forecast predictions. It is computed by taking the absolute value of the actual demand minus the forecasted demand, and then finding the average of these absolute differences over a specific period.
For F1: |68-63| + |75-70| + |70-75| + |74-69| + |69-70| + |72-68| + |80-70| + |78-74|. When you calculate these absolute differences and then divide the sum by 8 (number of periods), you get a MAD of 5.25.
For F2: |68-66| + |75-67| + |70-70| + |74-72| + |69-73| + |72-75| + |80-77| + |78-84|. Similarly, calculate these absolute differences and divide the sum by 8, you get a MAD of 3.75.
Given the results, the F2 forecast appears to be more accurate as it has a smaller MAD.
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Answers
Answer:
The answer is option C) Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.
Explanation:
Operation costing is a mix of job costing and process costing,
In Process Costing, each process or stage of production is costed separately. while Job costing is used to calculate and assign the total cost of materials, labor, and overhead of a specific job.
The manufacture of a product may consist of several operations. In Operation Costing, costs are collected for each operation instead of each process or stage of manufacture.
Therefore, Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.
Answers
Answer:
Explanation:
Antonio used the value of money as a unit of account to compare the value of the two cars namely Super and Duper and come to the conclusion that Duper was cheaper to Super
Antonio saved $ 4000 in his checking account which he gave to the seller. This represent money's role as a store of value
Antonio write a check of the money he saved to the seller and the seller accepted it and gave him the car which fulfill the role of money as a medium of exchange.
Answers
Answer:
Selection of Concept with its Best Description:
Concept Best Description
4. Total quality management Focuses on quality throughout the
production process
3. Customer orientation Flexible product designs can be modified
to accommodate customer choices.
2. Continuous improvements Every manager and employee constantly
looks for ways to improve company
operations.
5. Triple bottom line Reports on financial, social, and
environmental performance.
1. Just-in-time manufacturing Inventory is acquired or produced only
as needed.
Explanation:
1. Just-in-time manufacturing reduces manufacturing flow times and suppliers' and customers' response times. The purpose is to reduce waste and continuously improve operations.
2. Continuous improvement is a business approach that focuses on incremental or breakthrough improvement of processes, services, or products.
3. Customer orientation: An organization that has customer orientation focuses on the customer first and tries to satisfy the customer before meeting its own needs.
4. Total quality management: This is a management strategy whereby all members of the organization improve customer services, processes, products, and organizational culture in order to achieve long-term success.
5. Triple bottom line (TBL): To create greater business value, some organizations adopt the TBL performance evaluation framework, with a focus on social, environmental (or ecological) and financial performance.