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
Lisa [10]
3 years ago
11

California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insuran

ce claim on the inventory loss, the company developed the following data: Inventory January 1, 2021, $320,000; sales and purchases from January 1, 2021, to May 1, 2021, $1,260,000 and $905,000, respectively. California consistently reports a 35% gross profit. The estimated inventory on May 1, 2021, is: Multiple Choice $406,000. $407,200. $371,000. $466,000.
Business
1 answer:
stellarik [79]3 years ago
7 0

Answer:

$406,000

Explanation:

The calculation of estimated inventory is shown below:-

Inventory as at May 1 =  Inventory as at January 1 + purchase + Gross profit - Sales

= $320,000 + $905,000 + ($1,260,000 × 35%) - $1,260,000

= $1,225,000 + $441,000 - $1,260,000

= $1,666,000 - $1,260,000

= $406,000

So, for computing the estimated inventory on May 1, 2021 we simply applied the above formula.

You might be interested in
eall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard mach
Paladinen [302]

Answer:

$6,000 unfavorable

Explanation:

The fixed manufacturing overhead budget for the month is the difference between budgeted fixed manufacturing overhead cost minus actual fixed manufacturing overhead cost represented below;

Fixed manufacturing overhead budget = Budgeted fixed manufacturing overhead cost - Actual fixed manufacturing overhead cost

= $70,000 - $76,000

= $6,000 unfavorable

It is unfavorable since the actual overhead cost expended is more than the budgeted cost.

4 0
3 years ago
The foreign market entry mode in which the manufacturer utilizes a local third party for the export transaction is known as:
m_a_m_a [10]

Answer:

The correct answer is letter "D": indirect exporting.

Explanation:

Indirect exporting is the business strategy by which companies handle their products to an intermediary so the intermediary is in charge of exporting the goods to end-consumers or retailers. While this practice allows firms to concentrate on domestic operations only it could represent a disadvantage since their companies' operations remain narrowed which could represent a lost chance to increase profits.

4 0
3 years ago
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $
attashe74 [19]

Answer:

$1,702 , $1,497, and $1,957

Explanation:

The computation of the total cost is shown below:

Particulars Strawberry Vanilla Chocolate

Direct Labor $766          $841  $1,141

Direct Material  $816          $516  $616

Overhead   $120               $140        $200

                        (60 × 2)           (70 × 2)   (100 ×2)

Total Cost   $1,702           $1,497    $1,957

We simply added the direct labor cost, direct material cost and the overhead cost so that the total cost could come

8 0
3 years ago
The market for carbon allowances
erik [133]
The market for carbon allowances is set by the regulatory authority.
3 0
3 years ago
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.
Elden [556K]

Answer:

A. $2,500

B. $60

Explanation:

A. Calculation to determine How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position

Initial Margin = 100*$50*50%

Initial Margin = $2,500

Therefore The amount of securities that you must put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position is $2,500

b. Calculation to determine How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position

First step is to calculate the Maintenance Margin per share

Maintenance Margin per share = $50*30%

Maintenance Margin per share =$15

Second step is to calculate the Rise in price required

Rise in price required = $50*50% - $15

Rise in price required= $10

Now let calculate How high can the price of the stock go

Price of stock=$50+$10

Price of stock= $60

Therefore How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position is $60

8 0
2 years ago
Other questions:
  • Christy needs $25,000 to purchase a new car. she borrows this amount at an interest rate of 8% for 5 years. what is the amount o
    7·1 answer
  • Which type of account typically has low liquidity?
    13·1 answer
  • A real estate salesperson is often approached by home buyers of a particular race. His usual practice is to show them homes in n
    10·1 answer
  • The maximum the insurance guaranty association will pay to an individual for life insurance death benefits is
    8·1 answer
  • Suppose a stock had an initial price of $92 per share, paid a dividend of $2.30 per share during the year, and had an ending sha
    10·1 answer
  • For each timing difference​ listed, identify whether the difference would be reported on the book side of the reconciliation or
    5·1 answer
  • Sound Company reported the following amounts for May: Raw materials purchased $254,000 Beginning raw materials inventory 12,000
    9·1 answer
  • 9. Search costs are
    9·1 answer
  • A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the fou
    7·1 answer
  • Piedmont Company segments its business into two regions - North and South.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!