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AleksandrR [38]
3 years ago
5

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit.

During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses FIFO. LIFO. Weighted average.
Business
2 answers:
zzz [600]3 years ago
8 0

Answer:

Kindly refer to the attached table for breakdown of answers

Explanation:

FIFO is a costing method that assigns costs to production based on a First in First out basis. Meaning the oldest stocks are transferred to production before the earlier purchased stock

LIFO is a costing method which assigns costs to production on the newness of the stock item, that is Last in First out. The latests stock is always the first to be transferred to production

Weighted Average attempts to find a mix between FIFO & LIFO by employing a uniform valuation based on total value of stock divided by the Quantity of stock available at every point in time.

Cost of Goods sold is the relative cost associated with the sales volume based on the cost method adopted of the 3 listed above

And Closing inventory is the valuation of the stock left over at year end based on the Costing method earlier employed.

Download xlsx
LenKa [72]3 years ago
4 0

Answer:

FIFO

Cost of Goods Sold = $17640

Inventory = $12960

LIFO

Cost of Goods Sold = $19160

Inventory = $11440

Weighted Average

Cost of Goods Sold = $18360

Inventory = $12240

Explanation:

FIFO

FIFO stands for First In First Out, meaning that Inventory bought in first should be the first to be sold

Cost of Goods Sold = (100×60)+(150×68)+(20×72)

Inventory = 180 ×72

LIFO

LIFO stands for Last In First Out, meaning that the recent inventory is sold first

Cost of Goods Sold = (200×72)+(70×68)

Inventory = (80×68)+(100×60)

Weighted Average

A new unit cost of inventory is calculated on each purchase using the average

Cost of Goods Sold = (270×68)

Inventory = (180×68)

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Contribution margin is:
ddd [48]

Answer:

Sales less variable production, variable selling, and variable administrative expenses.

Explanation:

On a contribution margin income statement the variable administrative and variable selling are considered as variable cost and used to determinate the contribution margin.

Contribution margin =

sales revenue - total variable cost

the fixed cost are listed below the contriution,

once subtracted from the contribution, the rest is the net income.

8 0
3 years ago
Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product
Lorico [155]

A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel  

40,000 *1hr = 40,000      

   

Direct labor hrs for Truck      

10,000 * 3hr= 30,000      

   

total direct labor hrs 40,000+30,000 = 70,000  hrs

Overhead rate is total est oh cost/ total direct labor hrs    

770,000/70,000= 11.00    

B) Car truck wheels 40,000*11 =440,000

Truck wheels 10,000*11=110,000

6 0
3 years ago
Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200
Tomtit [17]

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

3 0
3 years ago
In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same
Debora [2.8K]

Answer:

The M2 for October 2010 is $4.4145 trillion

Explanation:

In this question, we are asked to calculate the value of M2 for the month of October 2010. We use a mathematical approach for this;

Mathematically:

M2 = M1 + Savings deposits + Money market funds + Certificates of deposit + other time deposit

We identify the parameters in the question as follows:

Savings deposit = $989.4 billion

Money Market funds = $1.9423 trillion

Certificates of deposit = $345.6 billion

Other time deposit = $243.8 billion

M1 = $893.4 billion

We thus calculate M2 as = $989.4 billion + $1.9423 trillion + $345.6 billion + $243.8 billion + $893.4 billion = $4.4145 trillion

6 0
4 years ago
Read 2 more answers
Company Earnings per Share Market Value per Share 1 $ 11.00 $ 176.00 2 8.00 78.40 3 6.00 77.40 4 35.00 203.00 Compute the price-
babymother [125]

Answer:

16

9.8

12.90

5.8

Explanation:

The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm

price to earning ratio = market value per share / earnings

1 = 176/11 = 16

2. 78.40 / 8 = 9.8

3. 77.40 / 6 = 12.90

4. 203/35 = 5.8

3 0
3 years ago
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