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3 years ago

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.

Business

2 answers:

Elden [556K]3 years ago

6 0

Answer:

1. closing inventory = (10+20+15)= 45 -15 =30units *$11.33 =$340.80

2. Closing inventory = $378

Explanation:

1) WAM = (cost of purchases - returns)/ (units purchased -returns)

=[ (10*6)+(20*12)+(15*14)]/(10+20+15

=$510/45

=$11.33

2. Specific Identification Method = $378

7 Dec (10 - 8) = 2 units *6 =$12

14 Dec (20-7) =13 units *12 =$156

25 Dec 15*14 =$210

jeka943 years ago

5 0

Answer:

1. Ending inventory = $339.90

2. Ending inventory = $300

Explanation:

Periodic Inventory System:

The period inventory system is one that only updates the ending inventory balance in the general ledger when a physical count is conducted. This means that these counts are conducted only periodically because they are time consuming.

All purchases made between physical counts are recorded in the purchases account, and when the next physical count is conducted, the balance in the purchases account is moved into the inventory account.

1. Weighted Average method:

This method is used to assign an average cost to inventory. To determine the closing value of inventory, we add opening inventory units and purchases units and subtract sales units. This value is multiplied by the average cost.

Periodic weighted average Inventory on Hand

# of units Cos per unit

($) Inventory value

Purchase- December 7 10 6 $60

Purchase- December 14 20 12 $240

Purchase- December 21 15 14 $210

Available for Sale 45 11.33 $510

December sales 15 11.33 $170

Ending inventory 30 11.33 $339.90

1. Specific identification method:

This method is used to find the ending inventory value. Unlike the weighted average method, this method assigns the exact cost that was paid upon purchase. The entity usually conducts the count to know exactly how many of a specific type of good is on hand. This method is used to track individual items.

Specific identification Inventory on Hand

# of units Cost per unit

($) Inventory value

Purchase- December 7 10 6 $60

Purchase- December 14 20 12 $240

Purchase- December 21 15 14 $210

Available for Sale 45 $510

December sales 10 6 $60

5 12 $60

Total $120

Ending inventory 15 12 $180

15 14 $210

Total 16 $300

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Privett Company Accounts payable $ 30,000 Accounts receivable 35,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,

erica [24]

Answer:

$113,000

Explanation:

As we know ,

Working capital = Total current assets - total current liabilities

where,

Total current assets = Accounts receivable + cash + inventory + marketable securities + prepaid expenses

= $35,000 + $25,000 + $72,000 + $36,000 + $2,000

= $170,000

And, the total current liabilities = Accounts payable + accrued liabilities + short term notes payable

= $30,000 + $7,000 + $20,000

= $57,000

Now put the values to the above formula

So, the value would be equal to

= $170,000 - $57,000

= $113,000

3 0

3 years ago

Marigold Company sells one product. Presented below is information for January for Marigold Company.

oksian1 [2.3K]

Answer:

Jan 4

Dr Accounts Receivable 632

Cr Sales Revenue 632

Jan 11

Dr Purchases 870

Cr Accounts payable 870

Jan 13

Dr Accounts Receivable 1,035

Cr Sales Revenue 1,035

Jan 20

Dr Purchases 972

Cr Accounts payable 972

Jan 27

Dr Accounts receivable 1,070

Cr Sales Revenue 1,070

Jan. 31

Dr Inventory $660

Dr Cost of Goods Sold $1,702

Cr Purchases $1,842

Cr Inventory $520

Explanation:

Preparation of all the necessary journal entries, including the end-of-month closing entry to record cost of goods sold.

Jan 4

Dr Accounts Receivable 632

Cr Sales Revenue(79*8) 632

(to record Cost of Goods Sold)

Jan 11

Dr Purchases (145*6) 870

Cr Accounts payable 870

( to record the purchase)

Jan 13

Dr Accounts Receivable 1,035

Cr Sales Revenue(115*9) 1,035

(to record the cost of Goods Sold)

Jan 20

Dr Purchases(162*6) 972

Cr Accounts payable 972

( to record the purchase)

Jan 27

Dr Accounts receivable 1,070

Cr Sales Revenue(107*10) 1,070

( to record the cost of Goods Sold)

Preparation of the journal entry assuming the physical count indicates that the ending inventory for January is 110 units

Jan. 31

Dr Inventory $660

($6* 110)

Dr Cost of Goods Sold $1,702

($520+$1,842-$660)

Cr Purchases $1,842

($870 + $972)

Cr Inventory $520

(104* $5)

6 0

3 years ago

Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5,000. However, Richland’s real GDP per person

dangina [55]

Answer:

It will take approximately 36 Years to Poorland to catch up to Richland.

Explanation:

Given data:

The GDP increase in Poorland per year = 1 %

The GDP increase in Richland per year = 3 %

Calculations:

Step 1: For Richland:

The formula for calculating the per year GDP increase for Richland is:

GDP = 10,000 + (10,000 x (1/100)) ---- (1)

GDP for first Year = 10,100$

GDP for second Year = 10,201 $

Similarly using the formula (1) we calculated the values for 10 and 20 years

GDP for 10th Year = 11046.2$

GDP for 20th Year = 12201.9$

Step 2: For Poorland:

The formula for calculating the per year GDP increase for Poorland is:

GDP = 5,000 + (5,000 x (3/100)) ---- (1)

GDP for first Year = 5,150$

GDP for second Year = 5,304.5 $

Similarly using the formula (1) we calculated the values for 10 and 20 years

GDP for 10th Year = 6719.6$

GDP for 20th Year = 9030.6$

Step 3: When will Poorland catch up to Richland:

By calculating values using the above formulas, we have found that for 38th year, Poorland will catch upto Richland and will have more GDP.

Poorland GDP for 36th Year = 14491.4$

Richland GDP for 36th Year = 14307.7$

6 0

4 years ago

Mercury Corporation issued 7,000 shares of no-par common stock for $15 per share. Mercury also issued 2,800 shares of $70 par, 6

inessss [21]

Answer:

Issue of 7,000 shares of no-par common stock for $15 per share

Financing Activity (FA).

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

Financing Activity (FA)

Explanation:

Issue of 7,000 shares of no-par common stock for $15 per share

This represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

Issue of 2,800 shares of $70 par, 6 percent noncumulative preferred stock at $80 per share

This transaction also represents capital funding and is included in the Cash Flow Statement as Cash Flow from Financing Activity.

7 0

3 years ago

Read 2 more answers

TL Company has expected earnings of $75 in one year if it does well and $25 if it does poorly. The firm has outstanding debt of

Juliette [100K]

Answer:$27.78

Explanation:

Expected value of debt after one year = (40* .60)+(15*.40)

= 24 + 6

=$ 30

Current value of debt = Value at 1year / (1+r)^n

= 30/ (1+.08)^1

= 30 / 1.08

=$ 27.78

3 0

3 years ago