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3 years ago

ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales.

Business

1 answer:

Oksana_A [137]3 years ago

3 0

Answer:

Cost of goods sold for the first sale made on Jan. 10: $141

Explanation:

The FIFO is a method used to account value for inventory. Under the method, the first item of inventory purchased is the first one sold.

Jan 1 Beginning Inventory 8 units, $12 per unit, total $96

Jan 5 Purchase 12 units, $15 per units, total $180

Jan 10 Sale 11 units, $50 per unit

Cost of good sold = 8 x $12 + 3 x $15 = $141

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Juliette [100K]

Friend or Foe game
See "Game Theory" for more info

3 0

3 years ago

On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires

Murljashka [212]

Installment note from Campbell Bank.

1-Jan Note intt expense Decrease 31-Dec

Amortization of Installment Notes Carrying payment 7% in Carrying

Year ending December 31 amount cash paid notes payable amount

year 1 147,750 43,620 10343 33,278 114,473

year 2 114,473 43,620 8013 35,607 78,866

year 3 78866 43,620 5521 38,099 40,766

year 4 40766 43,620 2854 40,766 0

b) Journal Entries

Date Account titles & Explanations Debit Credit

year 1 1-Jan Cash 147,750

Notes payable 147,750

(to record issuance of note)

year 1 31-Dec Interest expense 10343

Notes payable 33,278

cash 43,620

(to record interest expense)

year 2 31-Dec Interest expense 8013

Notes payable 35,607

cash 43,620

(to record interest expense)

year 3 31-Dec Interest expense 5521

Notes payable 38,099

cash 43,620

(to record interest expense)

year 4 31-Dec Interest expense 2854

Notes payable 40,766

cash 43,620

(to record interest expense)

c) interest expense of 10,343 would be reported on the income statement of Bryson Company.

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6 0

2 years ago

Omega Company's accountants have just completed the income statement and balance sheet for the year and have provided the follow

sdas [7]

Answer:

$2,217

Explanation:

The preparation of the cash flows from operating activities using the direct method is shown below:

Cash flow from Operating Activities - Direct Method

Cash Receipt from Customers $20,850

(Sales revenue + reduction in Account receivable)

Less: Cash Payment to supplier -$9,129

(Cost of Goods sold - increment in Account payable + Increment in inventory)

Less: Cash Payment for Salaries -$4,142

(Salaries Expense - Increment in Salaries Payable)

Less: Cash Payment for Rent -$2,827

(Rent Expense - Increment in Rent Payable - reduction in Prepaid Rent)

Less: Cash Payment for Insurance -$935

(Insurance Expense + Increment in Prepaid Insurance)

Less: Cash Payment for Utilities -$870

(Utilities Expense - Increment in Utilities Payable)

Less: Cash Payments for Bond interest -$730

Net Cash Provided by Operating Activities $2,217

7 0

3 years ago

The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machin

snow_lady [41]

Answer:

7.20

Explanation:

The computation of willing to pay amount is shown below:

= (Selling price per unit - variable cost per unit) ÷ (Minutes on the constraint)

For Product WX

= ($335.18 - $259.26) ÷ (7.50)

= 10.12

For Product KD

= ($228.46 - $173.08) ÷ (4.30)

= 12.88

For Product FS

= ($199.21 - $159.61) ÷ (5.50)

= 7.20

So based on rank, the product FS should be used as it has third rank i.e 7.20

3 0

3 years ago

Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be

barxatty [35]

Answer: Esquire should purchase Machine B because it has a lower present value.

Explanation:

Present value cost of Machine A:

= Initial investment + Present value of costs - Present value of sales amount

Present value of cost = 900 * Present value annuity factor, 10 years, 8%

= 900 * 6.7101

= $6,039

Present value of sales amount = 2,835 / (1 + 8%)¹⁰

= $1,313.15

Present value cost = 27,000 + 6,039 - 1,313.15

= $31,725.85

Present value of Machine B:

= 22,500 + 3,600 / 1.08³ + 4,500 / 1.08⁶ + 5,400 / 1.08⁸

= 30,198.18

<em>Esquire should purchase Machine B</em>

8 0

3 years ago