All categories

2 years ago

Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales:

Business

1 answer:

Rom4ik [11]2 years ago

7 0

Answer:

The value of cost of goods sold is $2,730 as shown below

Explanation:

The sale of 120 units made on January 17 is valued at $1,080 (120*$9) taking from stock purchased last on January 1

The sale of 160 units on January 29 is valued at $1,650 (150 units*$11) taking the items purchased last on January 20

The cost of goods sold =$1,080+$1,650

Cost of goods sold=$2,730

The value of closing inventory=30*$9+10*$11

=$270+$110

=$380

Hence value of costs of good sold is $2,730 while closing inventory is valued at $380

You might be interested in

Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adju

VikaD [51]

Answer:

the casualty loss is $8,000

Explanation:

The computation of the casualty loss is given below:

Lower of

= Adjusted basis or decline in FMV

= $10,000 or ($18,000 - $10,000)

= $10,000 or $8,000

= $8,000

hence, the casualty loss is $8,000

The same would be considered and relevant

The other values would be ignored

4 0

2 years ago

6. When food is plated with prime rib in front, puréed turnips at the rear, and a salad topped with Italian cheeses beside them,

jeyben [28]

six is B

seven is D

Eight is D

Nine is A

10 is C

11 is A

12. B

5 0

2 years ago

Alexandra owns stock in a corporation, and she just received 100 additional shares of stock as part of the corporation’s distrib

Marina CMI [18]

Answer:

The correct answer is A

Explanation:

Dividend is the amount of money or a payment which is made through the corporation or business to its shareholders, mostly as a distribution of profits. When the business or corporation have profits or the surplus, then the business is able to re- invest the profit further and then pay the proportion of the profit as the dividend to the company shareholders.

So, in this case, Alexandra who received 100 additional on the stock is the distribution of profit, which is called as dividends.

7 0

3 years ago

For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po

inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a) here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0

3 years ago

Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $

Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

Production= 43,000 units

Variable costs are $2.95 per unit

Avoidable Fixed costs= $73,000 per year

Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

We need to calculate the cost of producing and buying and choose the best option.

Production:

Total cost= 43,000*2.95 + 73,000= $199,850

Buy:

Total cost= 43,000*3.7= $159,100

It is cheaper to buy the component. At this level of production by $40,750.

8 0

3 years ago