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Bezzdna [24]
3 years ago
5

On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati

on is available: Sales, January 1 through July 8 $ 695,000 Inventory, January 1 140,000 Purchases, January 1 through July 8 655,000 Gross profit ratio 30 % What is the estimated inventory on July 8 immediately prior to the fire
Business
1 answer:
babymother [125]3 years ago
7 0

Answer:

$308,500

Explanation:

The computation of estimated inventory is given below:-

Cost of Goods Available = Beginning Inventory + Net Purchases

= $140,000 + $655,000

= $795,000

Cost of goods Sold = (100 - 30) ÷ 100 × $695,000

= $486,500

Ending Inventory = Cost of goods available - Cost of good sold

= $795,000 - $486,500

= $308,500

Therefore for computing the ending inventory we simply deduct the cost of goods sold from cost of goods available.

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In a process-costing system, the cost of abnormal spoilage should be A. Included in the cost of units transferred out. B. Prorat
Olin [163]

Answer:

D. Treated as a loss in the period incurred.

Explanation:

The process-costing system is used by firms that produce goods that goes through a set of manufacturing departments i.e it's used when firms mass produce nearly identical or similar units through various processes.

Under process-costing system, direct costs of production are accumulated,  summarized, and then assigned to all the units produced during the period.

Thus, a single product cost is calculated by dividing process cost in each manufacturing department by the respective units produced during the production period.

Some organizations that use the process-costing system are oil refineries, chemical processing companies, eraser manufacturing companies, and food production companies.

In a process-costing system, the cost of abnormal spoilage should be treated as a loss in the period incurred.

The abnormal spoilage refers to the cost exceeding normal level, associated with spoiled units of a manufacturing process. It should be treated as a loss in the period incurred because it cannot be recovered

4 0
3 years ago
InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's cu
Hitman42 [59]

Answer: Resistance to change

Explanation: In the given case the managers of Inseason inc. made the focus on short term goals rather than the long term. The manager in the given case did not took proper actions to continue the firm with large scale operations.

The managers was resisting the change due to the risk factor that it might not lead to benefit and the continuous success that the entity is making might stop.

Thus, the correct option is A.

4 0
3 years ago
Why is the zero-based budget the most effective type of budget?.
sasho [114]

The zero-based budget is the the most effective type of budget because its keeps the firm aware of how much money is flowing in and out.

<h3>What is a zero-based budget?</h3>

A zero-based budget means a method of budgeting where all the expenses must be explained for each new period.

The zero-based budget is very important because its process ensure that that is a justification for all operating expenses and areas that company are generating revenue.

In conclusion, the zero-based budget is the the most effective type of budget because its keeps the firm aware of how much money is flowing in and out.

Read more about zero-based budget

<em>brainly.com/question/24950624</em>

6 0
2 years ago
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same,
Yakvenalex [24]

Answer:

Elasticity of supply for dog food = 0.95

Explanation:

From the question, we have:

New quantity supplied of dog food = 107.0

Old quantity supplied of dog food = Initial equilibrium quantity = 21.0

New price = $8.75

Old price = Initial equilibrium price = $1.50

Generally, the formula for calculating the elasticity of supply is as

follows:

Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%

Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%

Substituting the values into equation (1), we have:

Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931

Approximated to 2 decimal places, we have:

Elasticity of supply for dog food = 0.95

6 0
2 years ago
Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common s
Maru [420]

Answer:

The common stockholders will receive a dividend of $100000 in 2015

Explanation:

The preferred stock is non cumulative which means that in case it does not pay dividends in a certain year, the dividends will no be accumulated and the company will not be obliged to pay these dividends in later year.

The per share preferred stock dividend for the company is = 100 * 0.06 = $6

The total dividends on preferred stock per year = 6 * 25000 = $150000

The common stockholders are paid dividends after the preferred stockholders are paid.

Thus, for 2015 the common stockholders will receive a dividend of,

Common stock dividend = 250000 - 150000 = $100000

8 0
3 years ago
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