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Karolina [17]
3 years ago
13

Bronze Company's sales forecast for April is 12,000 units, for May is 22,000 units, and for June is 25,000 units. Sales totaled

10,000 units in March. The finished goods inventory for March was 2,000 units. End-of-month finished goods inventory levels are planned to be equal to 15 percent of the next month's planned sales. The planned ending inventory of finished goods for May is:
A. 3,750 units.
B. 2,470 units.
C. 5,640 units.
D. 6,320 units.
Business
1 answer:
Arisa [49]3 years ago
8 0

Answer:

A. 3,750 units.

Explanation:

Since the inventory level is planned in such a way that the ending inventory of finished goods for a specific month is always equal to 15% of the units which will be sold during the next month, therefore, the ending inventory for month of May will be equal to the 15% of units which will be sold in the month of the June and shall be determined as follow:

May Ending inventory=0.15*units to be sold in June

                                    =0.15*25,000

                                    =3,750 units

So based on the above discussion and calculations, the answer is A. 3,750 units.

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Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, other operating expenses is $294,000,
anygoal [31]

Answer:

Times Interest earned ratio is 4.41 times

Explanation:

Times interest earned ratio measure the business capability to pay the interest over its liabilities from its current earning.

As interest expense value is not given it is calculated by the net of Earning before interest and tax and Income before tax

Net Income = Addition to Retained Earning + Dividend Paid = $133,100 + ( 84,000 x $1 ) = $133,100 + $84,000 = $217,100

Income before tax = $217,100 x 100% / ( 100% - 35%) = $334,000

Earning before interest and tax = Sales - Cost of goods sold - depreciation expense - other operating expenses = 1,440,000 - 570,000 - 144,000 - 294,000 = $432,000

Interest Expense = Earning before interest and tax - Income before tax = $432,000 - 334,000 = $98,000

Times Interest earned ratio = Earning before Interest and tax /  Interest expense = $432,000 / $98000 = 4.41 time

4 0
2 years ago
Rancher Hiram Walker purchased Rose, a cow, for $850 in the hope that she would breed calves. After several years of effort, Wal
Furkat [3]

Answer: Mutual mistake

Explanation:

A mutual mistake in a contract is a situation that arises when the parties in a contract make the same mistake in reference to a significant fact in the contract. i.e., they are mutually ignorant of a fact of the contract.

Had they both known about that mistake, they might not have gone into the contract so the contract is voidable in this scenario.

Both Walker and Sheerwood were mutually mistaken about the fact that Rose was pregnant when they went into the contract so this contract is voidable by this theory.

8 0
2 years ago
In January of 2015, the appropriate construction cost index had a value of $3,260. In January of 2005, the value was $1,746. In
Dennis_Churaev [7]

Answer:

11.63 million dollar

Explanation:

In 2005 the construction cost index was 1746 , in 2015 , it was 3260.

change in index in 10 years  = 3260-1746 = 1514

change in 5 years ( estimated ) = 757

Estimated index in 2010 = 1746 + 757

= 2503

Estimated index in 2020  = 3260 + 757

= 4017

Value of building in 2010 = 1746 million dollar

Value of similar building - X

X / 1746 = index in 2020 (probable ) / index in 2010

X / 7.25 = 4017 / 2503

X = 11.63 million dollar

8 0
2 years ago
The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October
Oksana_A [137]

Answer:

A) Prepare the revenues section of the income statement.

                                     Lopez Company

         Income Statement for the year ended MM DD, YY

Sales Revenue                              $852,850

-Sales Returns and Allowances   $24,030

-Sales Discounts                          <u> $12,760 </u>

= Net Sales                                   <u>$816,060</u>

B) Prepare separate closing entries for

(1) sales

                                                          Dr.                 Cr.

Sales                                            $852,850

Income Summary                                               $852,850

(2) the contra accounts to sales.

                                                          Dr.                 Cr.

Income Summary                        $36,736

Sales Returns and Allowances                         $24,030

Sales Discount                                                   $12,706

6 0
3 years ago
Deferral adjustments are needed when the business:_______
Mnenie [13.5K]

Answer: b. pays cash before the expense has been incurred.checked

d. receives cash before the revenue has been generated

Explanation:

Here is the complete question:

Deferral adjustments are needed when the business:

a. pays cash after the expense has been incurred.unchecked

b. pays cash before the expense has been incurred.checked

c. receives cash after the revenue has been generated.unchecked

d. receives cash before the revenue has been generated.

Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.

Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.

Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.

When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.

5 0
3 years ago
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