Answer:
$363,500
Explanation:
Gross profit = Revenue - Cost of Goods Sold.
In the case
Revenue = $578,000.
The Cost of Goods Sold: COGS
Inventory turn over = COGS/ Average turnover
Average turnover = Opening stock + closing stock/2
In this case Opening stock + Closing stock = $110,000
Average turnover = $110,000 /2 =$55,000
Therefore:
3.9 = COGS/$55,000
COGS = $55,000 x 3.9
COGS =$214,500
Gross profit = $578,000 - $214,500
Gross profit = $363,500
Answer:
$19,356
Explanation:
July
1 Beg. Inventory 54 $122
5 Purchases 306 $114
14 Sale 204
21 Purchases 153 $117
31 Sale 143
Number of units left = (54+306-204+153-143)= 166
On LIFO(Last-in, first-out) basis, these 166 units of ending inventory cost;
= (54*122) + (166-54)*114 <em> (Note:166-54 is to find the balance after the first 54)</em>
= $6,588 + $12,768
= $19,356
Answer:
8,450 Favorable
; 3,206 Unfavorable
Explanation:
Variable overhead spending variance:
= (Standard rate - Actual rate) × Actual hours
= ($3 × 18,731) - $47,743
= 8,450 Favorable
Variable overhead efficiency variance:
= (Standard hour - Actual hour) × Standard rate
= [(11,620 × 1.52) - 18,731] × $3
= (-1,068.6) × $3
= 3,206 Unfavorable
Answer:
Lower the reserve requirement ratio
Explanation:
Stimulating the economy requires expansionary monetary policies. These are the actions that increase the money supply in the economy. When there is an increase in the money supply, people and businesses have more money to spend. An increase in spending means a higher demand for goods and services, which motivates increased production.
Reserves requirement is the proposition of customer deposits that commercial banks retain in their custody at all times. A reduction in the reserve requirement ratio implies that banks can loan out a larger proportion of customer deposits. The amount of money available for banks to issue out as loan increases. An increase in lending adds to the money supply in the economy, which, in turn, stimulates economic activities.
