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Sergeeva-Olga [200]
3 years ago
13

TransactionsUnitsUnit Cost a. Inventory, Beginning 4,000 $24 For the year: b. Purchase, March 5 10,000 25 c. Purchase, September

19 6,000 27 d. Sale, April 15 (sold for $69 per unit) 4,200 e. Sale, October 31 (sold for $72 per unit) 9,000 f. Operating expenses (excluding income tax expense), $602,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes

Business
1 answer:
Komok [63]3 years ago
3 0

Answer:

Explanation:

1. Number of goods available for sale = Beginning Inventory + Purchase, March 5 + Purchase, September 19 = 4,000+10,000+6,000 = 20,000 units

Cost of goods available for sale = Beginning Cost of inventory + Cost of Purchase, March 5 + Cost of Purchase, September 19 = 4,000×24 + 10,000×25 + 6,000×27 = 96,000+250,000+162,000 = $508,000

2. Number of units in ending inventory = Number of units available for sale - Number of units sold = 20,000-4,200-9,000 = 6,800 units

3.  Calculations are attached

4.

Income statement FIFO:

Sales $937,800 (4,200×69 + 9,000×72)

Less: Cost of Goods Sold ($326,000)

Gross profit  $611,800

Less Operating expense $602,000

Net income $9,800

Income statement LIFO:

Sales $937,800 (4,200×69 + 9,000×72)

Less: Cost of Goods Sold ($342,000)

Gross profit  $595,800

Less Operating expense $602,000

Net loss $($6,200)

Income statement LIFO:

Sales $937,800 (4,200×69 + 9,000×72)

Less: Cost of Goods Sold ($334,092)

Gross profit  $603,708

Less Operating expense $602,000

Net income $1,708

**Cost of goods sold:-

Under FIFO = 96,000+5,000+225,000 = $326,000

Under LIFO = 105,000+162,000+75,000 = $342,000

Under weighted average method = 103,782+230,310 = $334,092

6. LIFO method minimize taxes

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Answer:

The answer is given in detailed below along with headings separated for each part of the question

Explanation:

<u>External Competitiveness and Internal Alignment</u>

The comparisons with competitors with regard to the income received, some of which offer even high salaries in order to get the best individuals to work for them refer to as external competitiveness. While in the case of Internal alignment the comparison is done on the individuals job or skill level with each others and with the organisations objectives.

<u>Importance of External Competitiveness</u>

This is important depending on the goal of the organisations such that they provide attractive pay packages to retain their employees while ensuring that the labour cost is controlled so that it's products/services prices remain competitive in the market.

<u>Factors shaping the organisations external competitiveness</u>

The factors affecting the external competitiveness are as given below:

(1) Customs specific to both the organisations and its employees.

(2) Labour Market Competition

(3) The Competition in the market of product/service

These factors combined affect the level of pay an employee receives within an organisation.

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2 years ago
Marginal cost is calculated for a particular increase in output by A. multiplying the total cost by the change in output. B. div
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Answer:

B) dividing the change in total cost by the change in output

Explanation:

Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.

That is,

Marginal cost(MC)= change in total cost(TC)/ change in output

Total cost(TC): This is the addition of fixed and variable cost in production.

Total cost(TC)= fixed cost (FC)+variable cost (VC)

Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.

Variable cost (VC) are cost that changes or are used up during production process such as raw materials.

4 0
3 years ago
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Variable costs are
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the costs that change depending on a company's performance

Explanation:

Variable costs refer to the costs that fluctuate with the level of production. An increase or decrease in the output level results in variable costs moving in the same direction. If the business stops production, the variable costs will be nil.

Raw materials and packaging costs are good examples of variable costs. The more a company produces, the more materials it consumes, and the higher the costs of purchasing the materials.

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3 years ago
A small manufacturing firm is currently negotiating with a union, but negotiations are not going well. The firm is concerned abo
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3 years ago
A certain delivery service offers both express and standard delivery. Seventy-five percent of parcels are sent by standard deliv
Elena L [17]

Answer:

Probability, P(n) = 3/8

Explanation:  Let standard delivery be S and express delivery be E.

I) When the parcels were sent:

S(n) = 75/100 and E(n) = 25/100

II) When the parcels arrived:

S(n)← = 80/100 and E(n)← = 95/100

The probability a record of a parcel delivery is chosen, P(n) = S(n)*E(n) + E(n)*S(n) = 75/100*25/100 + 25/100*75/100

P(n) = 3/16 + 3/16 = 6/16

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