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3 years ago

Priscilla has the following inventory information.

Business

1 answer:

Mademuasel [1]3 years ago

3 0

The correct answer is found to be

a) $1,430.

Explanation:

To calculate FIFO (First-In, First Out) determine the cost of your oldest inventory and multiply that cost by the amount of inventory sold,

According to the LIFO method, the last inventory given should be the first one out. Which means, the units purchased at the 22nd should be the one to be first sold, also followed by the ones purchased at the 7th and by the beginning inventory on July 1st.

The number of units sold during July is:

n = 20 ₊ 70 ₊ 10₋30

n = 70 units

Using LIFO, the amount allocated to those goods should come from 10 units at $23 and 60 units at $20:

= 10 × $23 ₊ 60 × $20
= 1,430.

Therefore, the amount found to cost of goods sold for July is $1,430.

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Crockin Corporation is considering a machine that will save $9,000 a year in cash operating costs each year for the next six yea

Roman55 [17]

Answer:

IRR = 16.5%

Explanation:

The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero

If the IRR greater than the required rate of return , we accept the project for implementation

If the IRR is less than that the required rate , we reject the project for implementation

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

NPV = PV of annual savings - initial cost

PV of annual savings = A× (1- (1+r)^(-n) )/r

A- annual savings in operating cost , r- rate of return, n- number of years

NPVa at 10% discount rate

PV of cash inflow = (9,000× 1-1.1^-6)/0.1 = 39,197.35

NPV = 65,328.91 - 33,165 = 6,032.35

NPVb at 20% discount rate

PV of cash inflow = (9,000× 1-1.2^-6)/0.2= (3,235.41)

NPV = 29,929.59 -33,165 = (3,235.41)

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

IRR = 10% + ( (6,032.35/(6,032.35 +3,235.41) )× (20-10)%= 16.51%

IRR = 16.5%

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3 years ago

Magna Carta was the result of the king's disastrous foreign policy and overzealous financial administration. John had suffered a

Korvikt [17]

Answer:

The correct answer is A. King John’s poor financial decisions and loss of territory

Explanation:

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3 years ago

Read 2 more answers

Provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finis

GalinKa [24]

Answer:

a. $1,000 will be recognized as service revenue using the cash basis.

b. $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.

Explanation:

Given that as of the end of the year, Peaceful Home has collected $ 1,000 from cash-paying customers while Peaceful Home 's remaining customers owe the business $ 1,400.

Revenue to be recognized using;

Cash basis

$1,000 will be recognized as service revenue using the cash basis.

Accrual basis

On accrual basis, revenue is recognized when the service has been provided irrespective of whether cash has been collected or not.

A total of $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.

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3 years ago

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3 years ago

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month

Radda [10]

Answer:

$880 favorable

Explanation:

The computation of direct materials price variance for last month is shown below:-

Direct material price variance = Actual quantity × (Standard price - Actual price)

= 2,200 × ($8 - ($16,720 ÷ 2,200)

= 2,200 × ($8 - 7.6)

= 2,200 × $0.4

= $880 Favorable

Therefore for computing the direct materials price variance for last month we simply applied the above formula.

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3 years ago