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3 years ago

The following information is taken from Reagan Company's December 31 balance sheet:

Business

1 answer:

zimovet [89]3 years ago

8 0

Answer:

Firm’s sales uncollected for year is 42 days.

Explanation:

Account receivable turnover ratio = $621,000 / $70,422

Account receivable turnover ratio = 8.69

Thus, accounts receivable turnover ratio is 8.69

Average collection period = 365 / Account receivable turnover ratio

Average collection period = 365 days / 8.69

Average collection period = 42.00

Thus, firm’s sales uncollected for year is 42 days.

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Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. F

masha68 [24]

Answer:

Closing Units = (710 units - 490 units)= 220 units

a) FIFO : closing inventory = $14,040

Mar 18 purchase 20 *$62 =$1,240

Mar 25 purchase 200 *$64 = $12,800

b) LIFO : closing inventory = $12,780

Mar 1 opening = 90 * $52 =$4,680

Mar 18 purchase = 110 * $62 = $6,820

Mar 25 purchase = 20*$64 =1,280

c) Weighted Average Method (WAM) :

WAM= (Opening cost + purchases cost)/(opening units +units purchased)

= ($7,800+$14,250)/(150+250) = $55.125 cost before Mar 9 sale

WAM(after the first sale) = ($4,961.25 +$6,820 + $12,800)/(90+110+200)

= $61.45

Closing Inventory = $61.45*220 =$13,519

d) Specific Identification :Closing Inventory = $13,070

Mar 01 opening = 60 *$52 =$3,120

Mar 5 Purchase = 30*$57 =$1,710

Mar 18 Purchase = 40*$62 =$2,480

Mar 25 Purchase = 90*$64 =$5,760

Explanation:

The Question is incomplete. I have provided the missing part of the question below.

Date Activities Units Acquired at Cost Units Sold at Retail

Mar. 1 Beginning inventory 150 units $52.00/unit

Mar. 5 Purchase 250 units $57.00/unit

Mar. 9 Sales 310 units $87.00/unit

Mar. 18 Purchase 110 units $62.00/unit

Mar. 25 Purchase 200 units $64.00/unit

Mar. 29 Sales 180 units $97.00/unit

Totals 710 units 490 units

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3 years ago

Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wan

Paladinen [302]

Reposition how the consumers perceived chocolate milk.

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2 years ago

Goldie is a manager in a company that manufactures wrought iron furniture. She assesses the performance of the company by determ

Rainbow [258]

Answer: Partial Productivity.

Explanation:

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Partial Productivity =

output / single input

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3 years ago

The journal entry to record the purchase of materials on account is a(n)

Pani-rosa [81]

Raw Materials Inventory $XX Accounts payable

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2 years ago

Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the

arsen [322]

Answer:

2nd January

Dr Machinery $178,000

Cr Cash $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery $4,000

Cr Cash $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.

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3 years ago