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Lubov Fominskaja [6]
3 years ago
6

FIFO and LIFO Costs Under Perpetual Inventory SystemThe following units of a particular item were available for sale during the

year:Inventory | 36 units @ $400Sale | 24 units @ $1,000First Purchase | 80 units @ $420Sale | 60 units @ 1,000Second Purchase | 75 units @ $440Sale | 55 units @ $1,000The firm uses the perpetual inventory system, and there are 52 units of the item on hand at the end of the year.
a. What is the total cost of the ending inventory according to FIFO?b. What is the total cost of the ending inventory according to LIFO?
Business
1 answer:
Sidana [21]3 years ago
5 0

Answer:

FIFO - $22,880

LIFO - $21,120

Explanation:

The FIFO inventory system means first in, first out. It means the initial inventory is the first to be sold. The ending inventory would consist of the last purchased inventory.

Ending inventory = 52 ×$440 = $22,880.

The LIFO inventory system means last in, first out. It means the last purchased inventory are the first to be sold . The ending inventory would consist of the initial inventories.

Ending inventory = (36 units × $400) + [(52-36) × 420] =$14,400 + $6,720 = $21,120

I hope my answer helps you

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Answer:

$29.70

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= ( 1  -0.5 )

= 0.5

Growth rate, g = ROE × Retention ratio

= 0.15 × 0.5

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Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]

= 2.5% + 1.44 × (11% - 2.5%)

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}}

=\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075)
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3 years ago
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following
iren [92.7K]

Answer:

1.  73 %

2. 27 %

3. $60,000

4. Ways to increase projected operating income without increasing total sales revenue :

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

                     = $88,000 - $23,760

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Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

                                           = 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

                                = $23,760 / $88,000 × 100

                                = 27 %

Break-even sales revenue = Fixed Costs ÷  Contribution Margin Ratio

                                            = $43,800 ÷ 0.73

                                            = $60,000

<u>Ways to increase projected operating income without increasing total sales revenue :</u>

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads
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Esteban's job responsibilities were recently changed as part of a decentralization effort taking place at his place of employmen
REY [17]

Answer:

The correct answer is d. enriched.

Explanation:

The enrichment of tasks is a system that seeks to redesign jobs, increasing motivation and job satisfaction among workers. Therefore, the main objectives of the enrichment of the tasks are:

  • Increase the effectiveness of work organization.
  • Provide jobs that are stimulating for the person.

The advantages achieved by implementing this system in the organization of the company are:

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  2. Workers are given a greater capacity for autonomy and responsibility in the tasks they carry out: as responsibility increases, workers may be encouraged to participate more frequently in decision-making, as well as in the solution of technical or organizational problems (proposals and suggestions).
  3. Better use of workers' capacities: with the new distribution of tasks, synergies may arise during collaboration between departments or even within the same.
  4. Improvement of personal relationships at work: greater collaboration during the performance of different tasks leads to increased communication and dialogue among all, thus achieving a better working environment.
  5. Greater involvement of workers: it is necessary that individuals know their role within the organization, the importance of the task they perform, as well as the results of it.
  6. Simplification of company structures: by redesigning jobs and their functions, a simplification of the organizational pyramid is achieved, resulting in a horizontal structure or flat organization. This allows workers to make their own decisions that report to a single manager, there is no intermediate link that limits the innovative capacity of the worker.
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