Based on past experience, Leickner Company expects to purchase raw materials from a foreign supplier at a cost of 1,300,000 marks on March 15, 2018. To hedge this forecasted transaction, the company acquires a three-month call option to purchase 1,300,000 marks on December 15, 2017. Leickner selects a strike price of $0.83 per mark, paying a premium of $0.002 per unit, when the spot rate is $0.83. The spot rate increases to $0.833 at December 31, 2017, causing the fair value of the option to increase to $6,000. By March 15, 2018, when the raw materials are purchased, the spot rate has climbed to $0.85, resulting in a fair value for the option of $26,000. Required:
a. Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials, assuming that December 31 is Leickner's year-end and that the raw materials are included in the cost of goods sold in 2018 (see below for required JE's)
b. Record purchase of foreign currency option as an asset.
c. Record entry for order placed with foreign supplier.
d. Record the entry to recognize the increase in the value of the foreign currency option.
e. Record entry to recognize the decrease in the time value of the option as an expense.

Problem 2-18 job-order costing for a service company [lo2-1, lo2-2, lo2-3]speedy auto repairs uses a job-order costing system. the company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 10,000fixed overhead cost $ 90,000variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate.2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 600direct labor cost $ 180direct labor-hours used 2 compute mr. wilkes' total job cost. 3. if speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged mr. wilkes?

Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the company’s accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable

Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.