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Bond [772]
3 years ago
11

Ayayai Corp. had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 102 $42 Mar. 14,

2022 Purchase 175 $44 May 1, 2022 Purchase 124 $46 The company sold 288 units at $59 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1692, what is the company’s after-tax income using LIFO?
Business
1 answer:
Dominik [7]3 years ago
7 0

Answer:

Income after tax = $1666

Explanation:

LIFO (Last-In-First-Out) is a method of inventory valuation where the goods that are received last are used first. In other words, the latest stock is used first. This is common for bulky inventory, stacked one on top of another.

In order to obtain the after-tax income, both the gross profit and income before tax are required. To obtain gross profit, we require the cost of goods sold information. The inventory information is as follows:

Feb 1 : Purchases : 102 units x $42 = $4284

Mar 14 : Purchases : 175 units x $44 = $7700

May 1 : Purchases : 124 units x $46 = $5704

288 units were sold

The COGS would be:

124 x $46 = $5704

164 x $44 = $7216

Thus COGS : $5704 + $7216 = $12920

Gross profit : Sales - COGS

Sales : $59 x 288 = $16992

Gross Profit = $16992 - $12920 = $4072

Income before tax : Gross Profit - Expenses

Operating expenses : $1692

Income before tax = $4072 - $1692 = $2380

Income after tax : Income before tax - (tax rate x income before tax)

Tax rate : 30%

Income after tax = $2380 - ($2380 x 30%) = $1666

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Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called _____.
Ber [7]

Answer: This answer is A. total quality management.

Explanation:

A. total quality management - This is a term used to describe a situation where all business functions are involved in a process of continuous quality improvement. It is also the continuous process of detecting and reducing errors to the barest minimum. All parties involved are held accountable for the overall quality of the final product or service. Four costs are associated with TQM, which are prevention costs, appraisal costs, internal failure costs and external failure costs.

B. Activity-based costing aims to provide management with a simplified method of introducing and managing "process and organization change". It can also be seen to include activity analysis, cost driver analysis, continuous improvement, operational control and performance evaluation.

C. Balanced scorecard is a strategic performance tool that is used by managers to track the performance of their subordinates.

D. Value chain connotes all business processes that are involved in providing a product or service.

8 0
3 years ago
Read 2 more answers
Most economists believe the principle of monetary neutrality is a. relevant to both the short and long run. b. mostly relevant t
Trava [24]

Answer:

d. mostly relevant to the long run.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.

The three (3) main functions of money all over the world are;

I. Medium of exchange.

II. Unit of account.

III. Store of value.

The principle of monetary neutrality typically based on the idea that changes in any stock of money would affect only nominal variables such as exchange rate, wages and price in the economy of a particular country.

Most economists believe the principle of monetary neutrality is mostly relevant to the long run.

4 0
2 years ago
In most cases, the reason products cost relatively little in one country and cost more in another is the Group of answer choices
sveta [45]

The main reason why cost of product is little in one country and more in another is because of

  • profiteering measures taken by exporting companies.
  • higher costs of exporting.

Cost of exportation of goods, taxes, original product cost, Profit measures are all part of reasons why exported goods are more higher in cost when compared to the cost in producing country.

The company who imported the product will ensure its makes profiton the sales and also, the cost of moving the product into the country are usually high, therefore, they all contributed to the high cost

Therefore, the Option A and E is correct because profiteering measures taken by exporting companies and higher costs of exporting contributes to the higher cost of exported products

Read more here

<em>brainly.com/question/12906042</em>

5 0
2 years ago
The Coase theorem states that A) the private sector will fail to produce the efficient amount of a public good because of the fr
Sonja [21]

Answer:

B

Explanation:

One of the problems in economics is the allocation of goods in the presence of externalities. When externalities are present allocation of goods in private market won't be efficient because private parties won't internalize them and would arrive to an inefficient outcome. For many years this was an argument in favor of government intervention.

However, Ronald Coase showed that assigning property rights of the externality to one of the private parties (no matter which one) would result in an efficient outcome. This is because  the parties with the property right would then internalize the cost. Then in the bargaining process private parties would reach an efficient outcome without the intervention of the government.

7 0
2 years ago
Consider jimmy choo designer shoes. jimmy choo faces many competitors, while in another way jimmy choo faces no competitors. thi
Leno4ka [110]
The contradiction can be explained by the substitutability between Jimmy Choo shoes and other shoes. 
Substitutability is the ability of goods or services to be replaced by another good or services to be replaced by another good or service in use or consumption. Substitute goods are goods which, as a result of changed conditions, may replace each other in use. For example in this case, jimmy choo faces other competitors who have substitute shoes.
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2 years ago
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