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Mkey [24]
3 years ago
7

ÂOaktree, Inc. is a merchandiser of inlaid wooden boxes. The company sold 7,500 units during the year. The company has provided

the followingâ information:
Sales Revenue $566,000
Purchasesâ (excluding freightâ in) 305,000
Selling and Administrative Expenses 68,000
Freight In 13,000
Beginning Merchandise Inventory 45,000
Ending Merchandise Inventory 42,000

What is the cost of goods sold for theâ year?

A. $320,000
B. $362,000
C. $305,000
D. $318,000
Business
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Answer:

correct answer is A. $320,000

Explanation:

given data

sold  = 7,500 units

Sales Revenue =  $566,000

Purchases=  305,000

Selling and Administrative Expense =  68,000

Freight In =  13,000

Beginning Merchandise Inventory =  45,000

Ending Merchandise Inventory =  42,000

solution

we know that gross profit is equal to Sales minus Cost of goods sold   .......1

so first we get here gross profit that is

gross profit = ( sales revenue + ending inventory ) - ( beginning inventory + purchase + freight in )   .........1

gross profit = ( $566,000 + $42000 ) - ( $45000 + 305000 + $13000 )

gross profit = $245000

so cost of good sold will be from equation 1

cost of good sold = $566,000 - $245000 = 321000 so approx

so correct answer is A. $320,000

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Wall -to- wall records' April 1 inventory had a cost of $48,000 and a retail value of $70,000. During April, net purchases cost
algol13

Answer:

<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>

Explanation:

Wall-to-Wall Records

                                        Cost          Retail

Beginning Inventory $ 48,000 $ 70,000

Purchases                     $ 210,000       $ 390,000

Cost of Goods Available for Sale $ 258,000 $ 460,000

Cost to Retail Ratio

= $ 258,000 ÷ $ 460,000

= 0.5609 = 56.09%

                                                    Cost            Retail

Cost of Goods Available for Sale $ 258,000   $ 460,000

− Sales                                                                 $ 280,000

Ending Inventory                                          $ 180,000

× Cost to Retail Ratio                                    0.5609

<u>Ending Inventory                           $ 100,962 </u>

5 0
3 years ago
Check My Work Mack is injured by a tractor manufactured by WestCo. In order to defend against a negligence claim based upon the
Tamiku [17]

Answer:

Option D Showing the absence of privity of contract between it and the consumer.

Explanation:

The reason is that privity of contract says that the party of the contract are only allowable to sue each other which in other words can enforce the other to fulfill his requirements that were agreed while forming contract. So the right answer is option D because it is not related to the negligence claim.

The duty of care that the company owes towards its product's users includes using appropriate production process so that the customer will not be injured, placing the caution and warning labels so that the person can save him from the injury and the company has used components that will not harm the user of the product.

So all the options are correct except option D.

8 0
3 years ago
You have been provided with the following summarized accounts of Golden Times Ltd. For the year ended 31 March 2000:
daser333 [38]

The computation of the following financial ratios for Golden Times Ltd is as follows:

<h3>(i) Return on capital employed:</h3>

= Profit after tax/Total assets - current liabilities x 100

= 12.44% (Sh 224,000/ Sh 1,800,000) x 100

<h3>(ii) The profit margin:</h3>

= Profit after tax/Sales revenue x 100

= 5.6% (Sh 224,000/Sh 4,000,000 x 100)

<h3>(iii) The turnover of capital:</h3>

= Sales Revenue/Equity

= 2.86 x (Sh 4,000,000/Sh 1,400,000

<h3>(iv) Current ratio:</h3>

= Current Assets/Current Liabilities

= 1.09 (Sh 1,520,000/Sh 1,400,000)

<h3>(v) Liquid ratio:</h3>

= Current Assets less Stocks /Current Liabilities

= 0.37 (Sh 1,520,000 - Sh 1,000,000/Sh 1,400,000)

<h3>(vi) Number of days accounts receivable are outstanding:</h3>

= Average Accounts Receivable/Sales Revenue x 365

= (Sh. 400,000/Sh. 4,000,000 x 365

= 36.5 days

<h3>(vii) Proprietary ratio:</h3>

= Shareholders equity/Total assets x 100

= 43.75% (Sh. 1,400,000/Sh. 3,200,000)

<h3>(viii) Stock turnover ratio:</h3>

= Cost of goods sold / Average stock

= 2.11 x (Sh. 3,000,000/Sh. 1,420,000)

<h3>(ix) Dividend yield ratio:</h3>

= Dividend per share/Price per share

= 5.36% (Sh. 0.268/Sh.5 x 100)

<h3>(x) Price earnings ratio:</h3>

= Market price per share/Earnings per share

= 8.93x (Sh. 5/Sh. 0.56)

<h3>Data and Calculations:</h3>

Golden Times Ltd

<h3>Balance sheet</h3>

As at 31 March 2000

                                                              Sh.               Sh.                  Sh.

Fixed Assets:

Freehold property (Net Book Value)                                          480,000

Plant and machinery (Net Book Value)                                      800,000

Motor Vehicle (Net Book Value)                                                 200,000

Furniture and fittings (Net Book Value)                                     200,000

                                                                                                  1,680,000

Current Assets:

Stocks                                                                1,000,000

Debtors                                                                400,000

Investments                                                          120,000

                                                                          1,520,000

Current Liabilities:

Trade creditors                            338,400

Bank overdraft                            878,400

Corporation tax                           176,000

Dividends payable                      107,200      1,400,000         120,000

                                                                                               1,800,000

Financed by:

Authorized share capital – 800,000

Sh. 1 ordinary shares

Issued and fully paid: 400,000 Sh.1                                      400,000

Ordinary shares

Capital reserve                                                                      200,000

Revenue reserve                                                                   800,000

Loan capital: 400,000 10% Sh. 1 Debentures                     400,000

                                                                                            1,800,000

Golden Times Ltd

<h3>Profit and loss account</h3>

For the year ended 31 March 2000

                                                                                          Sh.

Sales (credit)                                                                 4,000,000

Profit after charging all expenses except interest on  440,000

debentures

Less: Debenture interest                                                (40,000)

Profit before tax                                                             400,000

Corporation tax                                                               176,000

Profit after tax                                                                224,000

Less: Ordinary dividend proposed                              (107,200)

Retained profit transferred to revenue reserve           116,800

Beginning stock = Sh. 1,840,000 (Sh. 3,000,000 + 1,000,000 - 2,160,000)

Average stock = Sh. 1,420,000 (Sh. 1840,000 + Sh. 1,000,000)/2

Dividend per share = Sh. 0.268 (Sh 107,200/400,000)

Earnings per share = Sh. 0.56 (Sh. 224,000/400,000)

Learn more about financial ratios at brainly.com/question/17014465

#SPJ1

7 0
2 years ago
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and woul
REY [17]

Answer:

The correct answer is E.

Explanation:

Giving the following information:

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change.

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 544,500/ [(100-45)/100]

Break-even point (dollars)= $990,000

6 0
3 years ago
Read 2 more answers
In a long-run equilibrium,
Serga [27]

Answer: Option (d) is correct.

Explanation:

Correct option: Only a perfectly competitive firm operates at its efficient scale.

In the perfectly competitive market and in the long run, the firms who are making losses will exit the market and those firms who are able produce at a point where price is equal to the average total cost will exist in the market.

However, monopolistic firms operates at a below efficient level of production and with an excess capacity.

Competitive firms are generally enjoys the productive efficiency in the long run because these firms have the capability to produce at a lower average total cost.

8 0
3 years ago
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