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serious [3.7K]
3 years ago
13

A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:

Merchandise inventory, January 1, 2021 $ 1,970,000 Purchases to date 5,870,000 Freight-in 470,000 Sales to date 8,900,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
Business
1 answer:
katrin [286]3 years ago
3 0

Answer:

$1,190,000

Explanation:

The computation of cost of the inventory is given below:-

For computing the cost of inventory first we need to find out the cost of goods sold which is shown below:-

Cost of goods sold = Sales - Estimated gross profit

= $8,900,000 - ($8,900,000 × 20%)

= $7,120,000

Now, the Cost of the inventory = Beginning inventory + Purchase + Freight - Cost of goods sold

= $1,970,000 + $5,870,000 + $470,000 - $7,120,000

= $8,310,000 - $7,120,000

= $1,190,000

So, for computing the cost of the inventory we have applied the above formula.

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Which of the following arguments about job analysis is most effective in order to gain the support of top managers? Group of ans
Dovator [93]

Answer:

The correct answer is letter "C": The process will help identify employee characteristics that will augment the firm's business strategy and increase the company's return on its staffing investment.

Explanation:

Job analysis is the study of the components needed to complete a job. Companies tend to use this approach to measure the investment necessary for units of production. Thus, in case an employee would like to convince top managers on reasons why to conduct a job analysis, the worker should focus informing the potential return the company could obtain in regards to the individual productivity of employees that could be increased if investing more in staffing.

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3 years ago
Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:
kotykmax [81]

Answer:

1. Total hours allowed = 40,000

  Actual direct labour hours worked = 52,000.

2. Standard hourly rate = $10

   Actual rate = $10.2

3. Actual output= 20,000 units

Explanation:

The variable overhead efficiency variance in hours= variable overhead efficiency variance in Dollar/Variable overhead standard rate

= $24,000/$2= 12,000 hours unfavorable

Let the actual hours be V

Let the standard hours for the actual output achieved be = V

The actual hours worked = 130% of the standard hours allowed

Actual hours =130% × V = 1.3V

1.3V - V= 12,000

V=12000/0.3=40,000

Total hours allowed = 40,000

Actual labour hours= 130%× 40,000=52,000

Total hours allowed = 40,000

Actual direct labour hours worked = 52,000.

Standard labour rate =

Labour effciency variance in Dollar /Labour efficiency variance in hours

= 120,000/12,000=$10

Standard hourly rate = $10

Rate variance = (Actual rate - standard rate)× Actual hours

Let the actual rate be = Y

      10,400   = ( Y - 10) × 52,000

10,400= 52000Y- 520,000

Y= (520,000 + 10,400)/52,000=10.2

Actual rate = $10.2

Standard labour hours for actual output = Actual output × standard hours

Let the actual output be = m

40,000 = m × 2

m= 40,000/2= 20,000 units

Actual output= 20,000 units

3 0
3 years ago
Checkable deposits are classified as money because:
worty [1.4K]

Checkable deposits are classified as money because , They can be readily used in purchasing goods and paying debts.Choice( A)

Explanation:

Any demand deposit account against which, one can write a check or a draft is called checkable deposit. It is mainly used when a person has to withdraw money, at a short notice and he can do so, without giving any prior notice to the bank.

These deposits help in immediate access to cash. As these deposits are available easily , they are considered to be assets. .

Its an asset for the person who withdraws, as he can withdraw anytime without notice. It is a liability to the bank as the bank has to pay it, whenever the customer asks for it.

As these checkable deposits are easily available, they can be readily used in purchasing goods and paying debts.

8 0
3 years ago
Is it possible to make homogeneous shopping product into a heterogeneous shopping product? think about flat-panel televisions an
schepotkina [342]
No. I think it is not possible
3 0
3 years ago
Zirconia Fantasy sells only necklaces. 8 comma 000 units were sold resulting in $ 240 comma 000 of sales​ revenue, $ 60 comma 00
Naya [18.7K]

Answer:

$66,667

Explanation:

Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000

Percentage of contribution margin = Contribution margin / sales revenue = 180000 / 240000 = 75%

Breakevent point in total sales = Fixed costs / Percentage of contribution margin

= 50000/0.75 = $66,667

3 0
3 years ago
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