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4 years ago

Sment / ACCT100 Assessment 3

Business

1 answer:

dusya [7]4 years ago

3 0

Answer:

The value of closing inventory using FIFO under perpetual inventory system is $9379

Explanation:

The FIFO or first in first out method is a method of inventory valuation which basis the value of ending inventory on the assumption that the inventories that were purchased first were the ones that were sold first and the closing or ending inventory is comprised of the most recent purchases.

The perpetual method of inventory recording makes real time record and changes in the inventory level as soon as a transaction relating to inventory occurs.

The ending inventory of the business can be calculated as follows:

Transaction Purchases Sale Balance

1. Opening Inventory (100 * 103) 10300

2. July 10 purchase (150 * 91) 13650 23950

3. July 15 sale (100*103 + 73*91) 16943 7007

4. July 22 purchase (200 * 113) 22600 29607

5. July 30 sale (77*91 + 117*113) 20228 9379

Totals 36250 37171 9379

The value of closing inventory is $9379.

The sale made on July 15 was made through using 100 units of opening inventory at a cost of $103 per unit and 73 units from July 10 purchases at $91 per unit.
The sale made on July 30 was made through using the remaining units of July 10 purchases (150 - 73 = 77) at $91 per unit and using the units from July 22 purchase (194 - 77 = 117) at $113 per unit.
The closing inventory in units is = 200 - 117 = 83
The cost of closing inventory is 83 * 113 = $9379

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olga nikolaevna [1]

Answer:

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3 years ago

Jean Clark is the manager of the Midtown Safeway Grocery Store. She now needs to replenish her supply of strawberries. Her regul

alina1380 [7]

Answer:

Part 1: As a store manager, Jean Clark has to take decision regarding how many cases of strawberries should be purchased. Let Ai represents course of actions regarding how many cases to be purchased, where i = 10, 11, 12, or 13 cases.Jean has identified state of nature or circumstances for the demand of the strawberries per cases in future. Let Sj represents various demand in future, where i = 10, 11, 12, and 13 cases.

Part 2: The payoff table is attached.

Part 3: As the alternative of purchasing maximizes the minimum payoff among all events, Jane should select alternative of purchasing 10 cases of strawberries for tomorrow.

Part 4: According to the equal likelihood Principle, the alternative of purchasing 12 cases gives maximum expected value, thus Jane should purchase 12 cases of strawberries.

Part 5: The maximum EP is $53.6 for the alternative of purchasing 12 cases, thus Jane should purchase 12 cases of strawberries.

Part 6: Jean should spend $3 to get more information about how many cases of strawberries she might be able to sell tomorrow.

Explanation:

Part 1

As a store manager, Jean Clark has to take decision regarding how many cases of strawberries should be purchased. Let Ai represents course of actions regarding how many cases to be purchased, where i = 10, 11, 12, or 13 cases.

Jean has identified state of nature or circumstances for the demand of the strawberries per cases in future. Let Sj represents various demand in future, where i = 10, 11, 12, and 13 cases.

Part 2:

$Price_{purchase\, per \,case} = \$3\\Price_{selling\, per \,case} = \$8\\ Value_{salvage} = \$0\\$

Payoff in terms of profit or loss function is determined as follows:

$Payoff = Profit_{ per case} \times cases_{ sold }-Price_{purchase} \times cases_{ unsold}\\Payoff = \$5 \times cases_{ sold} -\ $3 \times cases_{unsold}$

The payoff table is obtained using the above formulas and is attached.

Part 3:

Maximin Decision Rule:

This approach selects the alternative which maximizes the minimum payoff among all events.

Minimum payoffs of purchasing 10, 11, 12, 13 cases are $50, $47, $44, and $41 respectively.

Maximum payoff among the alternative minimum payoffs is $50 for the alternative of purchasing 10 cases.

As the alternative of purchasing maximizes the minimum payoff among all events, Jane should select alternative of purchasing 10 cases of strawberries for tomorrow.

Part 4:

Equal Likelihood Principle

This principle is based on a simple philosophy that if there is uncertainty about various events, then treat them as equally probable to occur, that is, each state of nature or chance event is assigned an equal probability. It is also known as equal probabilities criterion. In this assumption, the expected value (EV) or average payoff for each course of action or strategy is determined and the strategy with the highest mean value is adopted.

$EV_{10 cases} = [(0.5 \times \$50) + (0.5 \times \$50) + (0.5 \times \$50) + (0.5\times \$50) = \$50\\EV_{11 cases} = [(0.5 \times \$47) + (0.5 \times \$55) + (0.5\times \$55) + (0.5 \times \$55) = \$53$

Similarly,

EV of purchasing 12 cases = $54

EV of purchasing 13 cases = $53

Maximum EV = maximize [$50, $53, $54, $53] = $54

According to the equal likelihood Principle, the alternative of purchasing 12 cases gives maximum expected value, thus Jane should purchase 12 cases of strawberries.

Part 5:

Bayes’ Decision rule

This rule considers the prior probabilities for the state of natures and selects the alternative with the maximum expected payoff. Expected payoff is calculated as sum of product of probabilities and payoff of each alternative.

Expected payoff pd purchasing 10 cases are as follows:

$EP _{10 cases} = 0.2 \times \$ 50 + 0.4 \times \$ 50 +0.3 \times \$ 50 + 0.1 \times \$ 50 = \$50\\EP_{11 cases} = (0.2 \times \$47) + (0.4 \times \$55) + (0.3 \times \$55) + (0.1 \times \$55) = \$53.4$

EP (12 cases) = $53.6

EP (13 cases) = $51.4

The maximum EP is $53.6 for the alternative of purchasing 12 cases, thus Jane should purchase 12 cases of strawberries.

Part 6:

To determine the cost Jane should determine Expected value of perfect information (EVPI), as follows:

First determine Expected value with perfect information (EVwPI) as follows:

Maximum payoff when demand is exactly 10 cases is $50, Expected payoff = 0.2 x 50 = $10

Maximum payoff when demand is exactly 11 cases is $55, Expected payoff = 0.4 x 55 = $22

Maximum payoff when demand is exactly 12 cases is $60, Expected payoff = 0.3 x 60 = $18

Maximum payoff when demand is exactly 13 cases is $65, Expected payoff = 0.1 x 65 = $6.5

EVwPI = $10 + $22 + $18 + $6.5 = $56.5

Expected value without perfect information (EVwoPI) = Maximum expected value by Baye’s rule = $53.6

EVPI = EVwPI – EVwoPI = $56.5 – $53.5 = $3

Jean should spend $3 to get more information about how many cases of strawberries she might be able to sell tomorrow.

3 0

3 years ago

The expected average rate of return for a proposed investment of $5,330,000 in a fixed asset, using straight-line depreciation,

Nitella [24]

Answer:

The Expected Average Rate of Return for the proposed investment is 30%.

Explanation:

This can be calculated as follows:

Average Investment = (Initial Cost + Residual Value) / 2 = ($5,330,000 + $0) / 2 = $2,665,000

Expected average annual income = Expected total net income / Useful life = $15,990,000 / 20 = $799,500

Expected Average Rate of Return = Estimated Average Annual Income / Average Investment = $799,500 / $2,665,000 = 0.30, or 30%

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3 years ago

________ charts or network diagrams show precedence relationships among the project activities/tasks.

RUDIKE [14]

Answer:

The precedence diagramming method depicts relationships between activities.

Explanation:

Some of its popular applications include: - This approach is used to create network diagrams for project schedules such as critical path, critical chain, and so on. Relationships between activities are depicted using the precedence diagramming method.

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3 years ago

Art teacher Monica earns time and a half for the number of hours she works over 40 hours. One week she worked 48 hours. How many

attashe74 [19]

Answer:

8 hours

Explanation:

Here, we want to know the number of overtime hours worked.

From the question, we are told that the pay is slightly different and higher if she worked for some hours over 40 hours

What this means is that the regular number of hours is 40; then the number of hours in this case 8 over 40 is her over time

3 0

3 years ago