In which of the following situations is Aidan a mentee?
2 answers:
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Answer: 12
Explanation: The ratio of number of times an inventory is used or sold in a specific period , generally a year, is called inventory turnover ratio. It can be computed by using the following formula :-
=
where,
cost of goods sold = beginning inventory + net purchase - ending inventory
= $50,000 + $460,000 - $30,000
= $ 480,000
average inventory =
=
= $40,000
so,
inventory turnover ratio =
= 12
Answer: See attachment
Explanation:
a. Based on the information in the attachment, the indirect costs that's allocated to the units will be:
Government = 450,000
Corporate = 750,000
The expected revenue that can be generated from the government unit will be:
= 495,000 × (100% + 15%)
= 495,000 × 1.15
= $569250
b. Based on the information given, the indirect costs that's allocated to the units will be:
Government unit = 360,000
Corporate unit = 840,000
The revenue from the government will be:
= 405000 × (100% + 15%)
= 405000 × 115%
= 405000 × 1.15
= $465750
c. If the firm chooses total hours worked as the cost driver, the indirect costs be allocated to the two units as:
Government = 400,000
Corporate unit = 800,000
Revenue from government will be:
= 445000 × 115%
= 445000 × 1.15
= $511750
Check attachment for further explanation.
