All categories

3 years ago

Consider the following information for Maynor Company, which uses a periodic inventory system:

Business

1 answer:

ohaa [14]3 years ago

8 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

January 1 Beginning Inventory 29 $79 $2,291

March 28 Purchase 39 $85 3,315

August 22 Purchase 58 $89 5,162

October 14 Purchase 63 $95 5,985

The company sold 63 units on May 1 and 58 units on October 28.

First, we need to calculate the units in ending inventory:

Ending inventory in units= 189 - 121= 68

To calculate the ending inventory under the FIFO (first-in, first-out) method, we need to use the cost of the last units incorporated into inventory.

Ending inventory= 63*95 + 5*89= $6,430

COGS= 29*79 + 39*85 + 53*89= $10,323

To calculate the ending inventory under the LIFO (last-in, first-out) method, we need to use the cost of the first units incorporated into the inventory

Ending inventory= 29*79 + 39*85= $5,606

COGS= 63*95 + 58*89= $11,147

Finally, to calculate the ending inventory using the weighted-average, we need to calculate the weighted average price:

weighted average price= 16,753/189= $88.64

Ending inventory= 68*88.64= $6,027.52

COGS= 121*88.64= $10,725.44

You might be interested in

Embree Corp. purchased a four-year insurance policy on May 1, Year 2, for $12,000, effective immediately. The company expensed t

BlackZzzverrR [31]

Answer:

a. Debit to Prepaid Insurance of $10,000

* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.

Explanation:

Insurance purchased for four years was actually prepaid insurance on May 1, Year 2.

The company expensed all amount by positing following entry ( which is a wrong entry)

DR. Insurance Expense $12,000

Cr. Cash $12,000

It should be entered as follow:

DR. Prepaid Insurance $12,000

Cr. Cash $12,000

At the end of the year 2 8 months has been passed for which $2,000 is accrued and it will be recorded, as all the amount is charged to the expense account we will adjusted the remaining amount of $10,000 to correct this mistake.

Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.

DR. Prepaid Insurance $10,000

Cr. Insurance Expense $10,000

6 0

3 years ago

You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three yea

Sunny_sXe [5.5K]

Answer:

present value = $9320.06

Explanation:

given data

cash flow 1 year C1 = $500

cash flow 2 year C2 = $1000

pay 3 year C3 = $800

interest rates r = 10 percent per year = 0.10

solution

we get here present value that is

present value = $\frac{C1}{(1+r)} +\frac{C2}{(1+r)^2} +\frac{C3}{(1+r)^3}$ ....................1

put here value and we will get

present value = $\frac{500}{(1+0.10)} +\frac{10000}{(1+0.10)^2} +\frac{800}{(1+0.10)^3}$

present value = $9320.06

7 0

3 years ago

d (i). Suppose that ZX Inc. is currently selling at $50 per share. You buy 200 shares, using $5,000 of your own money and borrow

strojnjashka [21]

Answer:

-21%

Explanation:

Initial share price = $50

Share price after 1 year = $46

net return = (200 x $46) - $10,000 - ($5,000 x 5%) = $9,200 - $10,000 - $250 = -$1,050

rate of return of margined position = -$1,050 / $5,000 = -0.21 = -21%

when you operate on the margin, your earnings can increase or decrease dramatically. In this case, an 8% price decrease resulted in a 215 lose.

8 0

3 years ago

In one of the case studies in the textbook, Ernie Phillips was a CPA who had fallen on hard times both financially and personall

olga_2 [115]

Answer:

The fraud was discovered Option D: The operations manager found a check made payable to Phillips while searching Phillips' desk for some accounting records.

Explanation:

In the given case study, Ernie Phillips had got a job as a 'controller'. He had started writing checks to himself other than the payroll checks.

This fraud can be discovered when the operations manager found a check on Phillips desk which was payable to himself and it was other than the payroll check. Thus, Option D is the statement as an answer.

Cancelled checks do not have to do anything with the fraud, as per Option A, because cancelled checks are never cleared in the bank. The receiver doesn't usually receive a call before check clearance. So, Option B is also incorrect. No error was there in the check as stated in Option C.

8 0

4 years ago

2. Why has the U.S. become a spending society?

aleksklad [387]

Geared to entice people to spend I think

7 0

2 years ago