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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:

Option (C) is correct.

Explanation:

Negative Indirect.

This is due to the indirect affect of tax on the purchase of new vehicle because a new tax on gasoline reduces the consumers incentive to the buy the new vehicles. Therefore, it is a negative indirect incentive.

Also, there is a fall in the number of cars or vehicles purchased because of the tax imposed on the gasoline.

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3 years ago
The Texas state _________ commissioner is an elected official responsible for administration and oversight of state-owned lands
kramer

Answer:

Land.

Explanation:

In the U.S. State of Texas, the Texas General Land Office is an agency of the Texas state. This agency is responsible for overseeing lands and mineral rights resources that are under the ownership of the state. This agency is headed by the Land Commissioner of the Texas State. The constitutional purpose of the agency was to "supervise, execute and employ all acts that touch the public lands of Texas.

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3 years ago
"Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an initial cost of $522,000, a 3
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Answer:

$31,320.00

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If the initial investment was $522,000 and the accounting rate of return is computed to be 6% per year, hence the annual increase in cash flow accruing from the investment can be calculated by changing the subject of the formula.

ARR=annual increase in cash flow/initial investment

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4 0
3 years ago
Suppose your friend is a music major who sings at weddings. She has no fixed or marginal costs for singing and has two types of
ehidna [41]

Answer: a. $4,000

b. $5,000

Explanation:

a. If she can sing at each wedding but decides to maximise profits, she will only sing at the weddings of those paying her $200 as it is the higher of the two payment options.

Should she sing at the $200 customer weddings, she would make;

= 20 people * $200

= $4,000

b. Price Discrimination is the charging of different types of customers different prices for the same or similar goods.

If your friend knows how to perfectly charge the two different groups the different prices that they value her at then she will be able to attend and sing at both weddings making her revenue;

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3 0
3 years ago
Exercise 4-10 Preparing adjusting and closing entries for a merchandiser LO P3 The following list includes selected permanent ac
Nataly [62]

Answer:

Kumi Emiko Co.

a) Adjusting Journal Entries:

Debit Sales Salaries expense $1,800

Credit Sales Salaries Payable $1,800

To record accrued sales salaries.

Debit Selling expense $2,900

Credit Prepaid selling expense $2,900

To record expired selling expense.

Debit Cost of goods sold $5,300

Credit Merchandise Inventory $5,300

To record determined shrinkage in merchandise inventory.

b) Closing Journal Entries:

Debit Sales revenue $ 609,000

Credit Sales returns and allowances $21,500

Credit Sales discounts $7,000

Credit Income summary $580,500

To close the net sales revenue to the income summary.

Debit Income Summary $526,000

Debit:

Cost of goods sold             $257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

To close cost of goods sold and expenses to the income summary.

Debit Income Summary $54,500

Credit Retained Earnings $54,500

To close the income summary to retained earnings.

Debit Retained Earnings $53,000

Credit Dividends $53,000

To close the dividend to retained earnings.

Explanation:

a) Data and Calculations:

                                                    Debit       Credit

Merchandise inventory         $ 40,000

Prepaid selling expenses           7,600

Dividends                                 53,000

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               252,000

Sales salaries expense          68,000

Utilities expense                    25,000

Selling expenses                   46,000

Administrative expenses    125,000

Analysis of additional Information:

Sales Salaries expense $1,800 Sales Salaries Payable $1,800

Selling expense $2,900 Prepaid selling expense $2,900

Cost of goods sold $5,300 Merchandise Inventory $5,300

Adjusted accounts:

                                                    Debit       Credit

Merchandise inventory         $ 34,700

Prepaid selling expenses           4,700

Dividends                                 53,000

Sales Salaries Payable                                   1,800

Sales                                                      $ 609,000

Sales returns and allowances 21,500

Sales discounts                          7,000

Cost of goods sold               257,300

Sales salaries expense          69,800

Utilities expense                    25,000

Selling expenses                   48,900

Administrative expenses    125,000

4 0
3 years ago
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