Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up...
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Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined? Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined? Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined? Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined? Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined? Jackson's Vacuum company makes two types of vacuums: Basic and Advanced. The factory is set up into 3 working departments. Both vacuums utilize process #1 to assemble the basic components. Those units destined as basic will transition to department #2 to be finalized. The advanced vacuums will skip department #2 and go directly to the advanced processing department #3. There are 4 types of raw material. #1-3 are all direct materials and # 4 is an indirect material #4 Beg. Raw Material Purchased on account End. Raw materials #1 13,000 193750 14150 #2 6,000 73865 10975 #3 45,000 382500 12550 7,000 53890 Requested materials - Dept. #1 Dept. #2 98600 in raw material #1 was requested, $40,000 for #2, $195,000 for #3 $20,000 in raw material #1 was requested, 15890 for #2, $46,000 for #3 $74,000 in raw material #1 was requested, $13,000 for #2, 173950 for #3 Indirect materials (#4) used this year amounted to 57650 Dept. #3 3240 1. There are 3 type of factory workers. Assembly line, area supervisor, and repairman/maintenance. Assembly line workers: 12 workers each work 1,900 hours per year. 6 workers work in process 1 and earn $12/hour. The other 6 workers work equally in departments 2&3 and make 14.75/hour. a. b. C. 2. In total, there are 2 supervisors each paid 63850 each and 2 repairman/maintenance each paid $40,000. Other factory overhead consists of the following: 1. Property taxes paid for the year - $35,000 2. Utilities paid for the year 160950 3. Six large machines. Each with a value of $100,000 depreciated over 10 years. Two machines are used in each department. Factory overhead is allocated using the ABC method and based on machine setups and machine hours WIP #3 Total units transferred 19,000 Total machine hours 21,000 Total machine setups 8594 Total Labor hours 6,840 WIP #1 56,000 53800 4,200 11,400 WIP #2 37,000 31,400 4612 4,560 Factory Overhead using machine hours = Fact. Dep. & Indirect materials total Factory overhead using machine set ups = Property taxes, utilities and indirect labor total Department #1 had 3,500 units in beginning WIP that were 50% complete as to conversion costs (totaling $12,000) and 100% complete for materials (totaling 42,000). 57250 units were started into production. Transferred out 56,000 units which included 37,000 basic to WIP #2 and 19,000 advanced to WIP #3. The remaining ending inventory was 100% complete for materials and 40% for conversion costs. Department #2 had 2,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $3,000) and 100% complete for materials (totaling 10,000). 37,000 units were started into production. Transferred out 35,000 units. The remaining ending inventory was 100% complete for materials and 0.72for conversion costs. Department #3 had 1,000 units in beginning WIP that were 50% complete as to conversion costs (totaling $4,000) and 100% complete for materials (totaling 13,000). 19,000 units were started into production. Transferred out 19,200 units. The remaining ending inventory was 100% complete for materials and 70% for conversion costs. Basic and advanced will split the WIP #1 based on the number of units of each type. Thus if there were $100 in WIP #1 and 20 total units (14 basic and 6 advanced), Each unit would absorb $5. Therefore the basic would account for $70 of WIP #1 Beginning finished goods for basic vacuums totaled 6,500 units at a total cost of 148350 Beginning finished goods for advanced vacuums totaled 2,300 units at a total costs of 95950 Total sales for the basic vacuum were 39500 units @ $55 each Total sales for the advanced vacuum were 19,800 units @ 92each Instructions A. B. Prepare the following journal entries Raw material purchases 1. 2. 3. 4. 5. 6. 7. 8. 9. Distribution of raw materials to each WIP or Factory Overhead Accumulation of wages owed Distribution of wages to each WIP or Factory Overhead Accumulation of factory overhead Allocation of Factory overhead using ABC per WIP Transition of WIP 1 goods to either WIP 2 or 3 Transition of WIP 2 goods to Finished Goods Transition of WIP 3 goods to Finished Goods 10. Sale of Basic vacuums 11. Sale of Advanced vacuums What is the Gross Profit of each separately and combined?
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Journal entries 1 For accumulation of overhead General Journal Debit Credit Factory overhead 521300 ... View the full answer
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Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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