1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
True [87]
3 years ago
13

Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory:Sales (net) $1,450,000Esti

mated gross profit rate 42%Beginning merchandise inventory $100,000Purchases (net) 860,000Merchandise available for sale $960,000Cost of Ending Merchandise InventoryMerchandise available for sale $Less cost of merchandise sold Estimated ending merchandise inventory $
Business
1 answer:
Mariulka [41]3 years ago
5 0

Answer:

Ending inventory= $119,000

Explanation:

Giving the following information:

Sales (net) $1,450,000

Estimated gross profit rate of 42%

Beginning merchandise inventory $100,000

Purchases (net) 860,000

Merchandise available for sale $960,000

Cost of goods sold= 1,450,000*0.58= 841,000

Ending inventory= 960,000 - 841,000= 119,000

You might be interested in
The international zoological club publishes a monthly magazine for zoology enthusiasts. members are required to pay an initial f
Ainat [17]
The answer is locking in customers
4 0
3 years ago
What is one benefit of declaring bankruptcy?
Naddik [55]
O A. It removes debts that a person or business cannot repay.
7 0
3 years ago
Read 2 more answers
In year 1, Kris purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with
blondinia [14]

Answer: D. $7,500

Explanation:

Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.

Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.

4 0
3 years ago
Which of the following statements is CORRECT? Assume a company's target capital structure is 50% debt and 50% common equity.a. T
Bond [772]

The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt' .

Option-c

<u>Explanation: </u>

Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.

This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.

6 0
3 years ago
What is not typical of traditional costing systems?
charle [14.2K]

Answer: The options are given below:

A. Use of a single predetermined overhead rate.

B. Use of direct labor hours or direct labor cost to assign overhead.

C. Assumption of correlation between direct labor and incurrence of overhead cost.

D. Use of multiple cost drivers to allocate overhead.

The correct option is D.

Explanation: The traditional costing system refers to the allocation of factory overhead to products, and this is based on the total amount of production resources that have been consumed.

When using the traditional costing system, the overhead is usually applied based on either the total number of direct labor hours consumed or the total number of machine hours used.

The traditional costing systems treat overhead costs as a single pool of indirect costs. Traditional costing is optimal when indirect costs are low when in comparison with direct costs.

7 0
3 years ago
Other questions:
  • Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In​ May, Nexus anticipat
    11·1 answer
  • Public companies under the jurisdiction of the Securities and Exchange Commission are required by law to hire a certified public
    14·1 answer
  • ____ focuses on specifying what the new system will look like and how it will work.
    12·1 answer
  • There are many different sources of income. Usually, most of an adult's income comes from _____.
    9·2 answers
  • Which is an advantage to having an account at a consumer bank instead of a credit union
    14·2 answers
  • A cost-benefit analysis is a valuable tool in economic decision making
    5·1 answer
  • Patton Company purchased $400,000 of 10% bonds of Scott Co. on January 1, 2011, paying $376,100. The bonds mature January 1, 202
    7·1 answer
  • What may a vertically integrated company need to do when there are improvements in technology at the supply stage of the value c
    11·1 answer
  • During production, the crew most closely associated with the camera consists of ________. a. the director and the production man
    14·1 answer
  • Depreciation by Two Methods
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!