Reference no: EM13340912
Problem 1
On July 1, Browning Corporation purchases 550,000 shares of its $6 par value common stock for the treasury at a cash price of $10 per share. On September 1, it sells 275,000 shares of the treasury stock for cash at $13 per share. The balance in the retained earnings account is $6,345,000.
|
Date
|
Account Description
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Problem 2:
Johnson Company has a unit-selling price of $450, variable costs per unit of $269, and fixed costs of $265,580.
Instructions: Compute the break-even point in units usingeither (a) the mathematical equationor (b) contribution margin per unit. Round answer up to the next whole unit.
Problem 3:
Holmes Company has a factory machine with a book value of $89,851 and a remaining useful life of 4 years. A new machine is available at a cost of $315,275. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $630,925 to $425,840.
Instructions: Prepare an analysis showing whether the old machine should be retained or replaced.
|
|
Retain Equipment
|
Replace Equipment
|
|
|
|
|
|
|
|
|
|
Total costs
|
|
|
The equipment should be _______________ because total costs are lower than to retain the machine.
Problem 4
For Perez Company, variable costs are 68% of sales, and fixed costs are $215,000. Management's net income goal is $68,610.
Instructions: Compute the required sales needed to achieve management's target net income of $68,610.
Problem 5
Keller Company requires its marketing managers to submit estimated cost-volume-profit data on all requests for new products, or expansions of a product line.
Gina Lamb is a new manager. Her calculations show a fixed cost for a new project at $100,000 and a variable cost of $5. Since the selling price is only $15 for the proposed product, 10,000 would need to be sold to break even. That is approximately twice the volume estimate for the first year. She shares her dismay with Anne Smythe, another manager.
Anne strongly advises her to revise her estimates. She points out that several of the costs that had been classified as fixed costs could be considered variable, since they are step costs and mixed costs. When the data has been revised classifying those costs as variable costs, the project appears viable.
Required:
1. Who are the stakeholders in this decision?
2. Is it ethical for Gina to revise the costs as indicated? Briefly explain.
3. What should Gina do?
|
Explain what happens when excess sulfuric acid is added
: According to the following chemical reaction, what happens when excess sulfuric acid is added. 2CrO42- (aq, yekllow) + 2H3O (aq) Cr2O72- (aq, orange0 + 3H2O (l)
|
|
Calculate the kinetic and potential energy
: One end of a stretched string is moved transversely at constant velocity Vy for a time T, Calculate the kinetic and potential energy energies associated with the pulse
|
|
What is coefficient of friction between rock and icy ground
: A 70-kg climber is hanging by a rope off the edge of a cliff, with the top end of the rope tied to a 200-kg rock. However, the rock is sitting on an icy horizontal surface,
|
|
Advantages and disadvantages of a standard costing system
: Construct an Excel or other spreadsheet to demonstrate how the solution to part 1 would change if the following information changes:the actual labour rates were $27.00, $22.90 and $17.00 for labour classes 3,2 and 1 respectively.
|
|
Is it ethical for gina to revise the costs
: Who are the stakeholders in this decision and is it ethical for Gina to revise the costs as indicated - Prepare an analysis showing whether the old machine should be retained or replaced.
|
|
Explain the naoh solution what is the molarity
: A solution is prepared by dissolving 21.9 NaOH in 116.0 water. The NaOH solution has a density of 1.15g/mL. What is the % mm concentration of the NaOh solution What is the molarity (M) of the solution. What is the total volume (mL) of the solution
|
|
Space age furniture company
: Space Age Furniture Company
|
|
What is the total work done by the compressor motor
: In the meantime, this means the refrigerator produces 1.2177E+4 J of thermal energy that it expels into the kitchen as a result. What is the total work done by the compressor motor in the refrigerator
|
|
Determine the average electric field strength
: A laser emits 7.50 × 1017 photons per second in a beam of light that has a diameter of 1.89 mm and a wavelength of 514.5 nm. determine the average electric field strength
|