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CHAPTER 5 - Pricing Methods
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Chapter 5 Quiz
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8
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If a 100 seat restaurant is open every day and has total sales of $200,000 for the month of September, what is the average
lunch check if lunch sales are 60% of the total sales and the seat turnover is 2.2 times?
Select one:
a. $18.18
b. $12.12
c. $17.60
d. $30.30
Your answer is incorrect.
Explanation: Average lunch check is calculated as (Meals by period × Total sales for the period) ÷ (Number of seats × Seat
turnover × Days open) = (60% × $200,000) ÷ (100 × 2.2 × 30) = $18.18.
The correct answer is: $18.18
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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Convert 30% to a decimal.
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Recall the following formula to calculate the trade discount, where the trade discount rate is a decimal.
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A boutique buys some merchandise with a list price of $2,400. If the wholesaler extends a 30% trade discount rate, find the trade discount.
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Blondell Legal Services, Limited Liability Company, uses the step-down method to allocate service department costs to operating departments. The firm has two
service departments, Personnel and Information Technology (IT), and two operating departments, Family Law and Corporate Law. Data concerning those
departments follow:
Service Department
Operating Department
Information
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$ 357,020
Corporate Law
$ 360, 340
Personnel
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$ 44,782
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Entry" for the account titles and enter O for the amounts.)
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Owner invested $66,500 in exchange for common stock of the corporation.
Hired an employee to be paid $500 per week, starting tomorrow.
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Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
1.
Purchased a 1-year insurance policy on June 1 for $ 2,196 cash.
2.
Paid $7,930 on August 31 for 5 months' rent in advance.
On September 4, received $ 4,392 cash in advance froma corporation to sponsor a game each month for a total of 9 months
3.
for the most improved students at a local school.
Signed a contract for cleaning services starting December 1 for $ 1,220 per month. Paid for the first 2 months on November
4.
30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
On December 5, received $ 1,830 in advance from a gaming club. Determined that on December 31,$ 590 of these…
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
• You expect your sales to be
3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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The following is the adjusted trial balance of Sierra Company.
3
Account Title
Cash
Prepaid insurance
Notes receivable (due in 5 years)
Buildings
Accumulated depreciation-Buildings
Accounts payable
Notes payable (due in 3 years).
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Retained earnings
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(2) Prepare a statement of retained earnings for the year ended December 31. The Retained earnings account balance was $13,500 on
December 31 of the prior year.
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Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to
accrue interest except at December 31.
r.com: 24/7 On-
Tutoring
Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note.
ary Resources
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note.
16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…
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What is the holding period return for the year on a bond with a par value of $1,000 and a coupon rate of 8.5% if its price at the
beginning of the year was $1,215 and its price at the end of the year was $1,020? Assume interest is paid annually.
Multiple Choice
-11.00%
-10.78%
--9.05%
10.50%
O O O 0
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OMR 110,000
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Actual manufacturing overhead incurred
OMR 166,000
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The Company used a predetermined overhead rate of OMR 30 per direct labor hour for the year. Assume the only inventc
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Use the Excel Template File to answer Problem 1 and Problem 2
Exam II Excel Template File. Problem1 and Problem2.xlsx
nnouncements
The accounts listed below for the year ended 2021, in random order, are for Polanyi Knowledge, Inc.
Construct a classified balance sheet for the business in good form.
yllabus
Modules
Cash
32,900
Discount on bonds payable
103.000
rades
Accumulated depreciation-Buildings 630,600
Wages payable
92,000
eople
Accounts Receivable
90,200
Note payable due 2023
300,000
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Taxes payable
27,000
Retained earnings
980,000
Inventory
180,000
Bonds payable
500,000
Additional paid in capital common
Common stock
264,400
150,000
stock
Long-term investments
77,000
Preferred stock
110,000
Buildings
1,500,000
Accounts payable
167.000
Additional paid in capital preferred
Accumulated depreciation:
13,400
stock
210,000
equipment
Equipment
760,000
Land
310,600
Prepaid…
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Question 7 Homework Problems CIX
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On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first
month.
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April 2 Nozomi invested $36,000 cash and computer equipment worth $35,000 in the company in exchange for its common
stock.
167 Computer Equipment
168 Accumulated Depreciation-Computer Equipment.
209 Salaries Payable
307 Common Stock
318 Retained Earnings
319 Dividends
@
April 3 The company rented furnished office space by paying $2,200 cash for the first month's (April) rent.
April 4 The company purchased $1,800 of office supplies for cash.
2
April 10 The company paid $2,880 cash for a 12-month insurance policy. Coverage begins on April 11.…
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Crane Company has completed all of its operating budgets. The sales budget for the year shows 52,000 units and total sales of
$2,340,000. The total unit cost of producing one unit is $20. Selling and administrative expenses are expected to be $312,000. Interest
is estimated to be $10,400. Income taxes are estimated to be $208,000.
Prepare a budgeted multiple-step income statement for the year ending December 31, 2022.
CRANE COMPANY
Budgeted Income Statement
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IRR
Cost of Capital (Required Return)
Difference (IRR - Cost of Capital)
#1 What is that difference?
A Between -10.0% and -4.0%
B Between -4.0% and 0.0%
C Between 0.0% and 4.0%
D Between 4.0% and 10.0%
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Suppose Easton Company reported net receivables of $2,582 million and $2,260 million at January 31,
2019, and 2018, respectively, after subtraction allowances of $72 million and $67 million respectively.
Easton earned total revenue of $43,333 million (all on account) and recorded uncollectible account
expense of $13 million for the year ended January 31, 2019. Use the following T accounts to sort out
your answer.
1. Use this information to measure the following amounts for the year ended January 31, 2019.
a. Write-off of uncollectible receivables.
b. Collection from customers
Allowance for Uncollectible Accounts
D Focus
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Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,00O.
Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to
pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any
returns or any issues with payment.
Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered
on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers
cost…
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- +V My Questions | bartleby b References Chapter 3 Quiz Camden County College camdenccinstructure.com/courses/3788/assignments/35967?module_item id=88693| Next> K Prev Send to Gradebook Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) --/1 Question 15 View Policies Current Attempt in Progress Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total materials costs are $91000. How much is the conversion cost per unit? O $17.52. O $4.70. $12.82. O $30.33 eTextbook and Media Submit Answer Save for Later Attempts: 0 of 1 used 11:10 A 10/4/20 hp ins prt sc end home f12 11 DI delete f9 f8 f7 f6 fs 10 + & % num backspace 6 7 lock 5 { P T U Y II 96arrow_forwardHey I was wondering if I can get help with this thank youarrow_forwardMy Questions | bartleby b + Camden County College References Chapter 3 Quiz Ha X //camdenccinstructure.com/courses/3788/assignments/35967?module item id=88693 Next> Send to Gradebook < Prev Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) Question 19 -/1 View Policies Current Attempt in Progress A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were: O 95220 equivalent units. O 135300 equivalent units. O 70200 equivalent units. O 85200 equivalent units. eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later 11:21 AM 10/4/2019 hp ins prt sc 12 end 11 home f10 delete fg f8 f5 f4 II & num backspace 6 5 lock } { P T U Y home + 96arrow_forward
- prcc riverguide-Search X [0/3.44 Points] https://www.webassign.net/web/Student/Assignment-Responses/submit?dep=33760244&tags=autosave#Q6 DETAILS Tutorial Exercise 46°F Clear PREVIOUS ANSWERS OneLogin Convert 30% to a decimal. percent 100% decimal = Step 1 Recall the following formula to calculate the trade discount, where the trade discount rate is a decimal. trade discount = list price x trade discount rate Submit A boutique buys some merchandise with a list price of $2,400. If the wholesaler extends a 30% trade discount rate, find the trade discount. 100% Enter a number. This question has several parts that must be completed sequentially. If you skip a part of the question, you will not receive any points for the skipped part, and you will not be able to come back to the skipped part. 21 X X % Grades for Marlena McCra x X Skip (you cannot come back) BRECMBC9 7.11.018.MI.SA. The list price was given to be $2,400 and a discount of 30% will be applied. Before substituting values into…arrow_forwardton Villa O Question 9 - Quiz 4:Pocess Costi x G Muckenfuss Clinic uses the step O (87) WhatsApp fattah.pdf https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=D08&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%. ® ☆ Scinapse | Academi. G Top 10 Soft Skills E. 6 Universiti Teknologi. de All Notes - Evernot. CAS MYUTM Login Page -infor... 6 UTMWIFI > Login O Sci-Hub: removing. IOther bookmarks cess Costing 0 Saved Help Save & Exit Subm Blondell Legal Services, Limited Liability Company, uses the step-down method to allocate service department costs to operating departments. The firm has two service departments, Personnel and Information Technology (IT), and two operating departments, Family Law and Corporate Law. Data concerning those departments follow: Service Department Operating Department Information :06 Family Law $ 357,020 Corporate Law $ 360, 340 Personnel Technology Departmental costs Employees $ 42,210 12 $ 44,782 25 120 170 12 22 100 152…arrow_forwarddoctors EXTRA CREDIT OPPORTUNITY X WP NWP Assessment Player Ul Ap x ← C education.wiley.com/was/ui/v2/assessment-player/index.html?launchid=f9637d14-156f-4cb7-b76a-c0fea4e5b627#/question/7 b bartleby w wiley ←EXTRA CREDIT OPPORTUNITY Question 8 of 20 Current Attempt in Progress 1. 2. 3. CPO 4. bofa workjam (ulta) workjam (ulta) 5. 1. No. Account Titles and Explanation 2. A Player school school b bartleby Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) connect Owner invested $66,500 in exchange for common stock of the corporation. Hired an employee to be paid $500 per week, starting tomorrow. Paid two years' rent in advance, $7,100. Paid the worker's weekly wage. Recorded service revenue…arrow_forward
- Q 5arrow_forwardMid-term Exam #1 A NWP Assessment Player UI Appl x O https://checkout.wileyplus.com/c x https://education.wiley.com/was/ui/v2/assessment-player/index.html?launchld%3Dd441ed84-3feb-4052-ac9a-950d7f7545c3#/question/2 #1 ר Question 3 of 5 -/5 Current Attempt in Progress Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $ 2,196 cash. 2. Paid $7,930 on August 31 for 5 months' rent in advance. On September 4, received $ 4,392 cash in advance froma corporation to sponsor a game each month for a total of 9 months 3. for the most improved students at a local school. Signed a contract for cleaning services starting December 1 for $ 1,220 per month. Paid for the first 2 months on November 4. 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $ 1,830 in advance from a gaming club. Determined that on December 31,$ 590 of these…arrow_forwardP7arrow_forward
- Can you help answer both of these questionsarrow_forwardjust Q 1arrow_forwardF myCampus Portal Login - for Stu X B 09 Operational and Legal Consid x E (24,513 unread) - sharmarohit81 b My Questions | bartleby A fleming.desire2learn.com/d21/le/content/130754/viewContent/1518900/View?ou=130754 Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations 09 Operational and Legal Considerations - > Calculating Capacity • How many machines do you need? • You expect your sales to be 3,000,000 granola bars (20g each) • How large is your plant? per month • How many workers do you need? The machine: • How much is the investment? Capacity: 100 kgs per hour • What are the operating costs? Requires 2 people to operate it Takes 8 ft x 40 ft space • Cost per machine $15,000 Energy and maintenance: $5 per hour • Cost of material and packaging: $0.12 per bar I Group Project.xlsx Show all 12:35 AM O Type here to search A O 4) ENG 2020-12-09arrow_forward
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