Answer:
Average accumulated expenditures for 2021 was: $349,000.
Explanation:
Note: See the attached excel file for the calculation of the Average accumulated expenditures for 2021.
Average accumulated expenditures is calculated by adding the weighted average amount of each expenditure which is the product of the weight of each expenditure in a year and the amount of each expenditure. That is;
Weight of each expenditure = Number of relevant months the expenditure is used 2021 / 12 months
Weighted average amount of each expenditure = Weight of each expenditure * The amount of the expenditure
1. Record the issuance of note.
2. Record the adjustment for interest.
3. Record the repayment of the note at maturity.
Answer:
1.
Aug 1st,2021; Entry to record note issuance is as followed:
Dr Note Receivable $20,600,000
Cr Cash $20,600,000
(to record the issuance of note to Trico Technologies)
2.
Dec 31st,2021; Entry to record interest income from note receivable:
Dr Interest revenue receivable $515,000
Cr Accrued Interest Income $515,000
(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)
3. January 31st, 2022; Entry to record repayment of the note at maturity:
Dr Cash $21,218,000
Cr Interest Income $103,000
Cr Note Receivable $20,600,000
Cr Interest Income receivable $515,000
( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.
Explanation:
Answer:
Revenue= $503,538.46
Explanation:
Giving the following information:
In 2019, X Company's profit function was 0.31R - $89,000, where R is revenue. In 2020, the relationship between revenue and variable costs will not change, but fixed costs will increase by $16,020.
Tax rate= 35%
Desired profit= 33,200
X= 0.31R - (89,000+16,020)= 0.31R - 105,020
We need to incorporate the effect of the tax rate:
X= [(0.31R - 105,020)*(1-t)]
33,200= [(0.31*R) - 105,020]*(1-0.35)
33,200/0.65= 0.31R - 105,020
51,076.92 + 105,020= 0.31R
503,538.46= R
Answer: The mixed cost is the employees compensation since it consist of both the flat salary which is fixed and the commission that is variable.
Explanation:
A mixed cost is a cost that is made up of a fixed cost and a variable cost. It is vital to understand the mix of these costs in order to forecast how the costs will be altered with various levels of activity.
As there is an increase in the mixed cost item, the fixed cost component will not change but the variable cost component will rise. Likewise, if there's a reduction in the mixed cost item, the fixed cost remains the same since it doesn't varies but the variable cost reduces. The formula for this relationship is:
Y = a + bx where
Y = Total cost
a = Total fixed cost
b = Variable cost per unit of activity
x = Number of units of activity
The mixed cost in the question is the employees compensation since it contains a flat salary which is a fixed cost and a commission which is the variable cost. The flat salary does not vary while the commission varies with the employees output.
Options I, III, and IV are examples of mixed costs because they include both fixed and variable components.
The correct answer is I, III, and IV. These options represent examples of mixed costs, which are costs that include both fixed and variable components.
I. A building that is used for both manufacturing and sales activities is an example of a mixed cost because it incurs both fixed costs (such as rent) and variable costs (such as utilities).
III. Depreciation that relates to five different machines is also a mixed cost because it includes fixed costs (such as the initial purchase cost) and variable costs (such as ongoing maintenance and repairs).
IV. Maintenance cost that must be split between sales and administrative offices is another example of a mixed cost because it includes both fixed costs (such as regular maintenance) and variable costs (such as the specific repairs needed).
#SPJ3
Explanation:
Basic research, is otherwise called pure research. This is the first step in production innovation. This is followed by "applied research", then "innovation development", then to go for "production-sales-market".
The information gathered here will be very light or a starter. It is not possible to foresee all the outcomes or the benefits which is achieved in the basic research.
We cannot even predict the types of research knowledge which might add a value to the future changes
Answer:Bad debts expense = $3,450
Explanation:Bad debt expense is the expense of account receivable that a business understands will not be paid due to the inability of a customer to pay its outstanding debt. Bad debt can be calculated using the direct write off method and the allowance method.
Here Abbot company uses the allowance method by taking into consideration a reserve which is an estimated percentage of the sales known as an adjusted risk for its customers who may not pay.
Credit sales revenue 115, 000
Estimated Bad debt 3%
Bad debts expense 3% x 115,000 = $3,450
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?
Answer:
Kindly check explanation
Explanation:
Given the following :
Price per pound = $1.55
Raw material required = 0.75 pound
Transport cost by sea = $0.70
Monthly demand for each of the three colors = 3487
EOQ = √2DS / H
D = 3 * 12 * 3487 * 0. 75 = 94149
Total cost of purchase = 1.55 + 0.70 = 2.25
Setup cost (S) = $186
Holding cost = 32% * 2.25 = 0.72
EOQ = √(2*94149*186) / 0.72
= 6974.50
b. How frequently should the company order cotton?
Annual demand / EOQ
94149 / 6974.50
= 13.50 ;
12 months / 13.50 = 0.89 month
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
Since lead time is 2 weeks, order should be made 2 weeks before : 17th June
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Annual demand / EOQ
94149 / 6974.50
= 13.50 times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Holding cost * EOQ /2
0.75 * (6974.50/2) = 2615.44
f. What is the resulting annual ordering cost?
Annual ordering cost $
Ordering cost * number of orders
$186 * 13.50 = $2,511