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RoseWind [281]
3 years ago
7

During its first and second years of operations, Rogers Company, a corporation using a periodic inventory system, made undiscove

red errors in taking its year-end inventories that overstated year 1 ending inventory by $80,000 and overstated year 2 ending inventory by $60,000. The combined effect of these errors on reported income is:
Business
1 answer:
elena-s [515]3 years ago
4 0

Answer:

Net Income understated by $20,000

Explanation:

In the first year, closing inventory was overstated by $80,000. The implications of the above would be,

Net Income for the first year would be overstated by $80,000

In the Second year,

Opening Stock would be overstated by $80,000

Due to this, cost of production stands overstated by $80,000.

Now, given in the question that closing stock for second year is overstated by $60,000 i.e profits are overstated by $60,000.

This means, the net effect on profits would be, $80,000 less $60,000 i.e $20,000 understated profits for the second year.  

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Coca-Cola uses a process cost accounting system and a weighted-average cost flow assumption. The department adds materials at th
Naddik [55]

Answer:

Explanation:

Opening units  25000

Started              75000

                          100000

Transffered          70000

Closing                  30000

we will draw the table using the weighted average method through that we will be able to identify equivellent production units and cost per unit with respect to material and conversion cost.

cost         opening      current     Total      complete   Wip   equivalent   Cost  

head                                              cost                                        Units       p.unit

Material 80,000   190,000    270,000   70,000   30,000  100,000    2.70  

C.cost   13,000   137,100     150,100   70,000    12,000    82,000      1.83  

                                                                                                                    4.53

Complete  70,000   4.53   317,134  

   

Closing Wip    

   

Material  30,000   2.70   81,000  

Labour  12,000   1.83   21,966  

                           102,966  

   

Total Cost            420,100  

in the table Closing wip units related to Conversion cost represent 40% completion.

opening wip CC units 70% have been completed in the current which are included in complete units i.e  70000 units

8 0
3 years ago
What is the cost of materials available for use assuming the following data? Materials inventory, January 1 - $33,660; materials
Len [333]

Answer:

Direct materials for use= $183,060

Explanation:

Giving the following information:

Materials inventory, January 1 - $33,660

Materials purchases - $148,800

Material transportation-in - $600.

The material transportation is part of the cost of materials. We need to use the following formula:

Direct materials for use= beginning inventory + purchases

Direct materials for use= 33,660 + (148,800 + 600)

Direct materials for use= $183,060

4 0
3 years ago
A manager is holding a $1.3 million stock portfolio with a beta of 1.1. She would like to hedge the risk of the portfolio using
dusya [7]

Answer:

The correct answer to the following question is $14,30,000.

Explanation:

Given information -

Portfolio contains $1.3 million of stocks

With beta of the portfolio being - 1.1

Here manager wants to hedge the risk of his portfolio by selling the index in the futures market by entering in to an futures contract which can be defined as a contract , where both buyer and seller agrees to buy or sell a particular product in the future at a predetermined price and quantity and quality, this is a standardized contract.

Amount that manager should sell in futures = $130,00,00 x 1.1

= $ 14,30, 000

5 0
3 years ago
Globus Autos sells a single product. 8 comma 3008,300 units were sold resulting in $ 84 comma 000$84,000 of sales​ revenue, $ 24
ryzh [129]

Answer:

$59,000

Explanation:

We will first determine the variable cost per unit

= $24,000/300

= $80

Contribution margin percentage =

$280 - ($80 - $1.10)/$280

= 0.72

= 72%

New break even point = $18,000/72%

= 25,000

Old break even point =

($280 - $80)/280

= 0.71

= 71%

= $18,000/71%

= $25,352

Margin of safety = $84,000 - $25,000

= $59,000

6 0
3 years ago
One way to avoid the free rider problem is A. through mandates. B. for the government to provide the good or service. C. to use
fgiga [73]

Answer: Option (D) is correct.

Explanation:

Free rider problem is the problem in which some individuals get benefits from the good and services that are owned by someone else but those individuals who are enjoying, doesn't pay anything for the benefit that they received from the goods and services.

Public goods are generally considered as a non-rival and non-excludable. There are some free rider problem arises in the provision of public goods, if the goods are distributed by a group.

If goods are distributed by the government then this problem of free rider could be resolved because government distributed goods at a large scale, so government can charge a price in terms of direct and indirect taxes for the provision of public goods.

Mandate also resolved the problem of free rider because through mandate every person need to pay for using the public good.

Social pressure also resolved the problem of free rider. If there are social pressure that people won't be able to use the provided goods and services until they pay the minimum amount for that good.

Therefore, option (D) is correct.

7 0
3 years ago
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