Answer:
$15 million
Explanation:
Data provided in the question:
Inventory turn ratio = 60
Annual sales = $50 million
Average inventory = $250,000
Now,
we know,
Inventory turn ratio = ( Cost of goods sold ) ÷ ( Average inventory )
thus,
60 = ( Cost of goods sold ) ÷ $250,000
or
Cost of goods sold = 60 × $250,000
or
Cost of goods sold = $15,000,000 or $15 million
I think the answer is D. i’m not really sure but i’m sorry if it is wrong
Answer:
Variable manufacturing overhead rate variance= $688.8 favorable
Explanation:
Giving the following information:
Variable overhead 0.3 hours $5.70 per hour
The company used 2,460 direct labor-hours to produce this output. The actual variable overhead cost was $13,331.
<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 13,331/2,460= $5.42
Variable manufacturing overhead rate variance= (5.7 - 5.42)*2,460
Variable manufacturing overhead rate variance= $688.8 favorable
Answer:
Change is net working capital is -$18,500(use of cash)
Explanation:
Due to the expansion inventory would increase by $4,500 ($9,500-$5,000)
Accounts receivable would also increase by $4,000 over its previous amount.
Accounts payable would reduce by $10,000 as compared to previous balance of accounts payable
The change in net working capital=$4,500+$4,000+$10,000=$18,500
This is a use of cash not a source of cash inflow