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Over [174]
2 years ago
11

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 a. FIFO. Cost of Goods Sold Ending Inventory b. LIFO. Cost of Goods Sold Ending Inventory c. Weighted average.
Business
1 answer:
patriot [66]2 years ago
7 0

Answer:

a. FIFO COGS $ 17640

a. FIFO Ending Inventory $ 12960  

b. LIFO  COGS $ 19160

b. LIFO ending Inventory $ 11440

c. Weighted COGS   $ 18360

c.Weighted Ending Inventory $12240

Explanation:

Cortez Company

Particulars                    Units       unit Cost           Total Cost

Opening Inventory       100              $ 60              $ 6000

Purchases                     150               $ 68             10200

<u>Batch 2                          200              $ 72              $ 14400</u>

<u>Total                           450                                        $30600    </u>

FIFO means first units received will be sold out first and the ending inventory consists of last units.

Sales = 270 units

a. FIFO COGS $ 17640

100   units at   $ 60 =  $ 6000

150  units at   $ 68 = 10200

20  units at $ 72 = $1440

a. FIFO Ending Inventory $ 12960  

180  units at $ 72  =$ 12960  

LIFO means last units received will be sold out first and the ending inventory consists of first units.

b. LIFO  COGS $ 19160

200 units at $ 72 = $ 14400

70 units at $ 68  = 4760

b. LIFO ending Inventory $ 11440

100  units at  $ 60= $ 6000

80   units at   $ 68 = 5440

c. Weighted Average Cost = Total Cost/ No of units = $30600  /450= $ 68

c. Weighted COGS = 270 units at $ 68=  $ 18360

c. Weighted Ending Inventory= (Total Units - Sales) CP per unit

= (450- 270)* 68

= 180 *68= $12240

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Answer:

Increased pressure for conformity to the various communities causes. Speical interest groups such as PETA or various Climate change special interest groups might call out a company for not doing enough to combat their adverse impact and might result in BAD publicity. So companies give into their corporate social responsibilites.

Explanation:

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2 years ago
1. Identify and describe two incremental cash flows from a proposed project such as expanding a product line or launching a new
Mazyrski [523]

Answer:

Explanation:

1. Incremental cash flow is the potential increase or decrease in cash flow from an investment this could be positive or negative.

In this case in expanding a product line or launching a new project incremental cash flow could be.

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3 years ago
Database Systems is considering expansion into a new product line. Assets to support expansion will cost $750,000. It is estimat
Delvig [45]

Answer:

The net income is $150,500 and the return on assets is 20.06 %

Explanation:

The formula for computing net income and return on assets is shown below and the computation is also made.

Net income =  Sales revenue × Profit margin

                   = $2,150,000 × 7%

                   = $150,500

Return on assets = Net income ÷ total assets

                            = $150,500 ÷ $750,000

                            = 0.2006

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Thus, the net income is $150,500 and the return on assets is 20.06 %

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3 years ago
Which sequence describes the long-run adjustment process in a competitive market when firms are experiencing short-run economic
dedylja [7]

Answer:

b. some firms exit, industry supply decreases, market price rises.

Explanation:

A perfect competitive industry is characterised by many buyers and sellers of homogenous goods and services. There are no barriers to entry or exit of firms.

If firms are making economic loss is the short run, in the long run, firms leave the industry. This leads to a fall in supply and prices rise as a result. In the long run, firms in a competitive industry earn zero economic profit.

I hope my answer helps you

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3 years ago
Cox, North, and Lee form a partnership. Cox contributes $201,000, North contributes $167,500, and Lee contributes $301,500. Thei
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Answer:

Lee's portion of income =$81, 900

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<em>The income or loss would be shared according to the ratio of capital contributed. The ratio is the proportion of capital contribute per partner to the total pool of capital.</em>

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= lees capital/total capital × reported income

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= $81, 900

Lee's portion of income =$81, 900

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2 years ago
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