1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Direction: Arrange the following words.
Elis [28]

Answer:

  1. TOWEL
  2. TISSUE
  3. TABLE NAPKIN
  4. TABLE CLOTH

6 0
3 years ago
VWhat is a commodity? A. Something that producers are unable to sell to consumers B. A resource that is available in unlimited q
sdas [7]
The definition of commodity is D. Some examples are gold, silver and copper.
4 0
2 years ago
Read 2 more answers
Stephen Thublin invests $1,000,000 in a 45-day certificate of deposit with 6.55% interest. What is the total interest income fro
givi [52]

Answer:

$8187

The CD has a rate of 6.55%. This rate is always annual. then, the interest paid for a year is $65.500. (360 days)

As the CD has a term of 45 days only the final interest paid is $8187

6 0
3 years ago
Potential gdp refers to 1) the difference between the highest level of real gdp per quarter and the lowest level of real gdp per
Sholpan [36]
4.

Potential GDP is the maximum output when there is full employment of resources or the factors of production.
5 0
3 years ago
Charleston Corporation operates a branch operation in a foreign country. Although this branch operates in euros, the U.S. dollar
dimulka [17.4K]

Answer: Remeasurement loss of $‭21,970

Explanation:

The figures will have to be converted from Euros to US$ for the calculation.

The relevant exchange rate will be the rate on the date of the transaction.

                                                              Amount      Exchange rate    $Amount

Opening cash                                     528,000           1.14                   ‭601,920‬

Increase in Cash assets:

Sale of inventory                                 160,000             1.20                192,000

                                                            688,000                                   793,920‬

Decrease in cash assets:

Acquisition of warehouse                 300,000             1.14                (342,000)

Purchase of inventory                       100,000              1.18                (118,000)

Transfer to parent                              10,000                1.18                 (11,800)

Ending net cash assets                     278,000 ‭                                  322,120‬

Remeasurement gain(loss) at 31 December = Ending net cash assets at current rate - Ending net cash assets

= (278,000 * 1.08) - 322,120

= ‭300,240‬ - 322,120

= ($21,970)

<em>Options are not for this question. </em>

7 0
3 years ago
Other questions:
  • Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2015 a customer asked Beloit to quote a price for a custo
    12·1 answer
  • Ring Company designs and builds jewelry. During June it had applied overhead of $120,000. Overhead is applied at the rate of 75%
    6·1 answer
  • In Section 7, the word warranty is best defined as A) a contract between USATestPrep and its Customers. B) a guarantee of any pa
    7·2 answers
  • As a businessperson planning to open a new small business, you know that the business plan should not contain
    6·1 answer
  • Merchants Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons because several o
    11·1 answer
  • Which of these sentences is correctly written and punctuated? Keeping his active mind challenging Roosevelt improved his stamp c
    13·1 answer
  • Fleming corp. provided services on account. the transaction would be recorded with a credit to:
    13·1 answer
  • During the taking of its physical inventory on December 31,2008, Genesis company incorrectly counted its inventory as $126,000 i
    9·1 answer
  • Government involvement in a modern economy is generally defended because:.
    7·1 answer
  • A product-process matrix can be used to address the fact that customers often participate in service processes.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!