All categories

3 years ago

Based on the following data, estimate the cost of the ending merchandise inventory:

Business

1 answer:

Fittoniya [83]3 years ago

5 0

Answer:

$205,000

Explanation:

Given that,

Sales = $9,250,000

Estimated gross profit rate = 36%

Beginning merchandise inventory = $180,000

Purchases (net) = $5,945,000

Merchandise available for sale = $6,125,000

Estimated cost of merchandise sold:

= Sales(net) - Gross profit

= $9,250,000 - (36% × $9,250,000)

= $9,250,000 - $3,330,000

= $5,920,000

Cost of Ending Merchandise Inventory:

= Merchandise available for sale - Estimated cost of merchandise sold

= $6,125,000 - $5,920,000

= $205,000

You might be interested in

Dissolution of common salt in water is physical change. give reason

Misha Larkins [42]

haiahaiajajonajsb aohsusjsosvdisw

8 0

3 years ago

Werkley Inc. is a product manufacturing company. It relies on its suppliers for raw materials, on the labor market for its perso

mariarad [96]

Answer:

(d) task environment

Explanation:

Task environment relates to the external environment of a business which directly affects production of goods and services a business has to offer. This affects a business ability to reach it's goals. It comprises of:

Suppliers : They supply raw materials which are essential for production.
Customers: They are the ultimate users of goods. Customer wants and preferences determines the kind of product a business shall produce.
Competitors: They affect the pricing of goods. Their strategies directly affect the business.
Labor Supply: For any production to take place, man and material are essential. Labor supply in the market again affects pricing of the goods.

Thus, the suppliers, the labor market, and the customers make up the task environment of Werkley Inc.

8 0

4 years ago

Instead of investing a lump of sum of $25000,Brittany Royer decides to svae the money in a vault for 2years. Assuming the inflat

Ipatiy [6.2K]

Answer:

$1265.63

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect

Loss in purchasing value = future value of the amount saved - amount saved

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

$25000 (1.025)² = $26.265.625

Amount lost = $26.265.625 - $25,000 = $1265.63

7 0

3 years ago

You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 8.6 perc

geniusboy [140]

Answer:

the balloon payment after 300 months is $1,205,266.38

Explanation:

In order to pay the loan completely after 300 months, your monthly payment should be $1,948.75. Since you can only pay $800 per month, the loan's balance after 300 payments will be $1,205,266.38. This is irrational since you will end up owing 4 times the initial amount. You will never even be close to paying even the interest expense, so the principal increases every month.

I prepared an amortization schedule using an excel spreadsheet

Download pdf

6 0

3 years ago

A product has a contribution margin of $7 per unit and a selling price of $45 per unit. Fixed costs are $35,000. Assuming new te

balu736 [363]

Answer:

5,300

Explanation:

Given that,

contribution margin per unit = $7

selling price = $45 per unit

Fixed costs = $35,000

Total fixed cost after increase:

= $35,000 + $20,650

= $55,650

contribution margin per unit after increase:

= $7 + (50% × $7)

= $7 + $3.5

= $10.5

Therefore,

New Break even point:

= Fixed cost ÷ Contribution per unit

= $55,650 ÷ $10.5

= 5,300

6 0

3 years ago