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LekaFEV [45]
3 years ago
5

James Company began the month of October with inventory of $32,000. The following inventory transactions occurred during the mon

th:a. The company purchased merchandise on account for $47,500 on October 12, 2016. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $670 were paid in cash.b. On October 31, James paid for the merchandise purchased on October 12.c. During October merchandise costing $20,550 was sold on account for $31,400.d. It was determined that inventory on hand at the end of October cost $59,145.
Business
1 answer:
NARA [144]3 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and 37 percent debt. Its co
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Answer:

WACC = 12.45%

Explanation:

WACC= cost of equity * weight + cost of pref. equity * weight + cost of debt * weight * (1 - T)

WACC = 0.6 * 16.8 + 0,03 * 11.4 + 0,37 * 8.3 * (1 - 0,34)

WACC is the weighted average of the costs of the company, so it is necessary to multiply the weight of each source of capital (equity, preferred equity and debt) for its corresponding cost. Debt has a partiuclarity and is that it is before taxes so it becomes a tax shield for the company and taxes in fact reduce the cost of debt, for that reason we also multiply the cost of debt by  (1 - T)

5 0
3 years ago
Novak corp. sells a snowboard, ezslide, that is popular with snowboard enthusiasts. below is information relating to novak corp.
Rom4ik [11]

Answer:

a. The value of ending Inventory using FIFO is $2749.

b. The value of ending Inventory using LIFO is $2667.

c. The value of ending Inventory using Average Cost method is $2713.


We have:

Date     Explanation       Units      unit cost   Total Cost


Sep-01         inv                 11              97                1067


Sep-12 purchases        44               100              4400


Sep-19 purchases         47               101              4747


Sep-26 purchases         22               102              2244


Total                                 124                                  12458


Novak sold 97 snowboards, so the number of snowboards with it at the end of September is 124 -97 = 27 units.

If Novak adopts First In First Out (FIFO) method, and 27 units are remaining, all 22 units purchased on Sept-26th and 27 -22 = 5 units from the purchases made on Sept-19th will remain in inventory.

So the value of inventory using FIFO will be (22* 102) + (5*101) = 2749

If Novak adopts Last In First Out (LIFO) method, all 11 units in inventory on  Sept-01st and 27 -11 = 16 units from the purchases made on Sept-12th will remain in inventory.

Hence inventory value using LIFO will be (11* 97) + (16*100) = 2667

We calculate the Average cost by dividing the Total Cost by total number of units purchased.

Average Cost = \frac{12458}{124} = 100.468

The value of inventory using the average cost method is 100.648 * 27 =2713.

3 0
3 years ago
Read 2 more answers
Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the locat
zavuch27 [327]

Answer: Option D

                           

Explanation: In the given case, southwestern has been displayed as an american organisation . Therefore, it cannot employ any non citizen who do not have proper kind of paper work done that is needed by the authorities of the country.

Hence, the geographic advantages regarding employment does not mean anything in front of the legal formalities and rules that resides in the economic area.

7 0
3 years ago
Plush Corporation purchased 100 percent of Common Corporation’s common stock on January 1, 20X3, and paid $450,000. The fair val
Oxana [17]

Answer:

Please refer the detail answer in the memo below

Explanation:

Date: 24 January 20XX

Subject: Review of Impairment of Goodwill

From: External Auditors

To: Chief Accountant, Plush Corporation

Upon review of the investment made by your company in Common Corporation, we believe that there are possible indications of the impairment of the goodwill initially recognized in the books upon acquisition.

At the time of Acquisition:

Consideration = $450,000

Fair Value of Net Assets = $430,000

Goodwill = $450,000 - $430,000 = $20,000

The new guidance issued by FASB, requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value.

However, if we follow the previous guidance of FASB, we have to test the impairment with the following three steps:

Step 1: We will compare the carrying amount of the net assets with the Fair value of Reporting Unit, and if the carrying amount exceeds the fair value, we will record the impairment.

Step 1: We will compute, implied value of goodwill by comparing the fair value of the reporting unit with the fair value of the identifiable net assets, if FV of net assets are higher, then there is no impairment, otherwise we will jump to Step 3.

Step 3: If the calculated implied value of the goodwill is lower than the actual goodwill at acquisition, than the difference is the impairment loss, however in case the implied value of the goodwill is higher than the actual goodwill at acquisition, no impairment shall be recorded.

Apparently, since the fair value of Common had increased to $485,000, there is no need to recognize the impairment loss on goodwill; however we believe that the estimated fair value of Common is less than the $430,000 and therefore impairment should be recorded.

7 0
2 years ago
What would bill fall under, he applied and acquired for a new credit card and uses it regularly?
lidiya [134]

If  he applied and acquired for a new credit card and uses it regularly he will fall under: Voluntary.

<h3>What is credit card?</h3>

Credit card can be defined as the card that enables the card holder to carryout transactions such as purchases online in which the holder is expected to payback the amount used for the purchases.

If a obtain a new credit card which he use often or frequently, bill will tend to fall under voluntary because he voluntary applied for the credit card without being comply to do so.

Therefore bill will fall under voluntary.

Learn more about credit card here:brainly.com/question/8432538

#SPJ12

4 0
1 year ago
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