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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

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Both Viacom and Paramount owned a diverse group of entertainment businesses. QVC was a televised shopping channel. The Paramount

nata0808 [166]

Answer:

The business judgement rule states that if the board takes decision in good faith and in best interest of the corporation considering the information available then its decision is not to be questioned by the courts. The courts can intervene only if there is any breach of good faith, due care or loyalty.

The above case is similar in facts with another case paramount vs time. In that case Time decided to merge with another company named Warner. Paramount also started bidding for Time but the directors of Time rejected their bid offer citing that warner merger would be more suitable for the company strategy.

Paramount then brought the case against Time in court.The court stated that the instant case was different from another case (REVLON VS MacAndrews) where Revlon was up for sale and hence it was necessary for the board to sell its assets to the highest bidder.

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3 years ago

On January 1, 2018,Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cost

Ivan

Answer:

Find the answer below in explanation

Explanation:

Gillock Climbing Academy Pension Expense for the year 2019 will be recorded as

Service cost ............................................. 600,000.00

Interest (600000 × 10%)................................60,000.00

plan assets (40000 from 2018 + 32000 interest + 400000 made in current year)............... 832000

Expected return Interest on plan asset (832000*8%) ........................................ 66,560.00

Pension Expense for the year ended December 31, 2019 = 600000 - (66,560.00 - 60000)

= 600,000−6,560

= $593,440.00

3 0

3 years ago

Shen manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday,

IRINA_888 [86]

Answer:

The correct answer is option b.

Explanation:

Shen is working in a country where the inflation rate is high.

He gets a salary every two weeks.

After receiving his salary he immediately goes out and buys all the goods he is going to need over the next two weeks.

He converts the remaining salary in a more stable currency.

He does this in order to prevent his salary from losing purchasing power.

This effort that he is making to prevent his real income from losing value is called the shoe-leather cost of inflation.

The shoe-leather cost can be defined as the cost of time and effort made to prevent the cash holdings from losing their value.

3 0

3 years ago

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno

Lunna [17]

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will $100,000 as opposed to $160,000 previously.

$60,000 will be released to working capital.

3 0

3 years ago

Bryce co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. what is the contribution margin rat

elixir [45]

Sales: $914,000

Variable Costs: $498,130

Operating Income: $196,000

Contribution Margin Ratio = ?

Formula:

Contribution Margin Ratio = (Sales – Variable Costs) / Sales

Solution:

Contribution Margin Ratio = ( $914,000 - $498,130) / $914,000

Contribution Margin Ratio = 45.5% (Answer)

4 0

3 years ago