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
balandron [24]
3 years ago
13

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale c

onsisted of 135 units from beginning inventory and 265 units from the March 5 purchase; the March 29 sale consisted of 115 units from the March 18 purchase and 155 units from the March 25 purchase.
Business
1 answer:
ivolga24 [154]3 years ago
3 0

Answer:

gross profit:

  • under FIFO = $21,040
  • under LIFO = $17,930
  • under weighted average = $19,539.79
  • under specific identification = $19,655

Explanation:

Some information was missing, so I looked it up:

Date Activities      Units Acquired        Units Sold at Retail

Mar. 1 Beginning inv. 230 units at $53.60  

Mar. 5 Purchase  290 units at $58.60  

Mar. 9 Sales                                        400 units at $88.60

Mar. 18 Purchase  150 units at $63.60

Mar/ 25 Purchase  280 units at $65.60

Mar. 29 Sales                                       270 units at 90.60

Totals                             950 units                    670 units

ending inventory = 280 units

so COGS:

under FIFO = (230 x $53.60) + (290 x $58.60) + (150 x $63.60) = $38,862

under LIFO = (280 x $65.60) + (150 x $63.60) + (240 x $58.60) = $41,972

under weighted average = ($57,230 / 950) x 670 = $40,362.21

under specific identification = (135 x $53.60) + (265 x $58.60) + (115 x $63.60) + (155 x $65.60) = $40,247

total revenue = (400 x $88.60) + (270 x $90.60) = $35,440 + $24,462 = $59,902

gross profit:

under FIFO = $59,902 - $38,862 = $21,040

under LIFO = $59,902 - $41,972 = $17,930

under weighted average = $59,902 - $40,362.21 = $19,539.79

under specific identification = $59,902 - $40,247 = $19,655

You might be interested in
Equipment was purchased for $161500. Freight charges amounted to $5500 and there was a cost of $10000 for building a foundation
NISA [10]

Answer:

$27,800

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Cost of asset = $161500 + $5500 +  10000 =$177,000

$177,000 - $38000 = $139,000 / 5 =$27,800

depreciation expense each year would be $27,800

4 0
3 years ago
Consider the old maxim, "build a better mousetrap and the world will beat a path to your door." discuss the meaning of this phra
MAVERICK [17]

In the context of time-based competition,  "build a better mousetrap and the world will beat a path to your door." could be interpreted as "those who make better innovations would obtain the most opportunities to obtain profit in the market"

Innovations only offers advantages in the competition because it offer different options for consumers that exclusively belong to US. But innovation is NOT THE ONLY factors for the product's success. There are other factors that can influence the success such as marketing strategies, condition of the economy

6 0
3 years ago
Henry Jones contributed equipment, inventory, and $57,300 cash to a partnership. The equipment had a book value of $27,800 and m
Oliga [24]

Answer:

A. $86,900

Explanation:

Henry’s capital account will be credited by the amount of $86,900. See computation below.

Cash $57,300

Equipment 34,100

Inventory 10,400

Note payable (14,900)

————

Total $86,900

*Both the equipment and the inventory will be recorded on partnership’s book at fair market value at the time of contribution.

*The partnership may absorb the obligation if it is associated with an asset contributed by partner. Thus, it will be deducted to his capital account as contribution to the partnership.

3 0
3 years ago
Which of the four external processes in the consumer’s culture do you think have been the most important to the success of Dove’
Tcecarenko [31]

Answer and explanation:

Dove's campaign for "Real Beauty" used the values, personality and lifestyle features to drive its advertisements to success. Dove achieved that purpose promoting the idea that there is no set definition of beauty and spreading the point of view that women are beautiful on their own.

Dove tore down the stereotype of conventional beauty by targeting its products to women of different ages, races, sizes, and social classes which helped to broaden the company's market segment since most women identified themselves with Dove's advertisements.

3 0
3 years ago
Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data
jek_recluse [69]

Answer:

Lexigraphic Printing Company

1. Differential Analysis as of April 30:

                                                 Old Machine   New Machine    Difference

Annual revenue                              $74,200          $74,200

Annual depreciation (straight-line)    8,900             19,950  

Annual manufacturing

costs, excluding depreciation        23,600              6,900

Annual nonmanufacturing

operating expenses                         6,100                6,100

Total expenses                            $38,600           $32,950

Annual net income                      $35,600           $41,250         $5,650

Net income for 6 six years        $213,600        $247,500       $33,900

2. Other factors that should be considered are:

B. What effect does the federal income tax have on the decision?

C. What opportunities are available for the use of the $90,000 of funds ($119,700 less $29,700 proceeds from the old machine) that are required to purchase the new machine?

E. Are there any improvements in the quality of work turned out by the new machine?

Explanation:

a) Dat and Calculations:

Old Machine

Cost of machine, 10-year life $89,000

Annual depreciation (straight-line) 8,900

Annual manufacturing costs, excluding depreciation 23,600

Annual nonmanufacturing operating expenses 6,100

Annual revenue 74,200

Current estimated selling price of machine 29,700

New Machine

Purchase price of machine, six-year life $119,700

Annual depreciation (straight-line) 19,950

Estimated annual manufacturing costs, excluding depreciation 6,900

Annual nonmanufacturing operating expenses 6,100

Annual revenue 74,200

Differential Analysis as of April 30:

                                                 Old Machine   New Machine    Difference

Annual revenue                              $74,200          $74,200

Annual depreciation (straight-line)    8,900             19,950  

Annual manufacturing

costs, excluding depreciation        23,600              6,900

Annual nonmanufacturing

operating expenses                         6,100                6,100

Total expenses                            $38,600           $32,950

Annual net income                      $35,600           $41,250         $5,650

Net income for 6 six years        $213,600        $247,500       $33,900

4 0
3 years ago
Other questions:
  • In order to improve the cash flow of the company, neal emerald decided to postpone depositing all employment taxes a few months
    11·1 answer
  • Finder Technologies Inc. has manufacturing units in Canada. The country's stable economic and political environment helps the fi
    11·1 answer
  • Identify which type of sampling is​ used: random,​ systematic, convenience,​ stratified, or cluster.To determine customer opinio
    15·1 answer
  • An increase in the price of a product will reduce the amount of it purchased because:
    5·1 answer
  • Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year​ be? (For this​
    7·1 answer
  • Elisa truly believes that she is a space alien from the planet Zellnor. She walks into a car dealership and buys a new Volkswage
    13·1 answer
  • In general, the production and use of capital ________ the productivity of labor and normally ________ wages.
    12·1 answer
  • The equilibrium quantity in markets characterized by oligopoly is higher than in monopoly markets and higher than in perfectly c
    8·1 answer
  • A certain product has supply elasticity 0.4 and demand elasticity 2.7. If a tax were placed on the product, what is most likely
    11·1 answer
  • !-I NEED HELP ASAP PLEASE-!/I SWEAR I WILL MARK YOU AS BRAINLIEST
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!