Answer:
C. Cost of Goods Sold: Understated, and Net Income: Overstated
Explanation:
The cost of goods can be defined as the amount that a business has to pay in other for them to get an inventory. the net income can be defined as the amount of money that is left from COGS and other expenditures that does not include taxes and payments of interest. Overstating the inventory causes the total amount of earnings to be overstated for that accounting period. while the cost of good sold would be understated
1. Ordering 204 boxes will minimize the sum of annual ordering and carrying costs
2. Total cost will be $6118.82
3. Yes,annual ordering and carrying costs always equal at the EOQ.
<u>Explanation</u>:
D = 40 boxes per for 260 days
= boxes
S = $60
H = $30
1.
= 203.96
Q = 204 boxes
2.
TC= $6118.82
Answer:
<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>
Explanation:
Wall-to-Wall Records
Cost Retail
Beginning Inventory $ 48,000 $ 70,000
Purchases $ 210,000 $ 390,000
Cost of Goods Available for Sale $ 258,000 $ 460,000
Cost to Retail Ratio
= $ 258,000 ÷ $ 460,000
= 0.5609 = 56.09%
Cost Retail
Cost of Goods Available for Sale $ 258,000 $ 460,000
− Sales $ 280,000
Ending Inventory $ 180,000
× Cost to Retail Ratio 0.5609
<u>Ending Inventory $ 100,962 </u>
Answer:
In this context, the most suitable answer is Gross profit.
This is because gross profit calculates the revenue from the basic and main business operation and shows if the company's main business is able to make money.
When you look at the net profit, it takes into account various costs like tax, finance costs, administration, losses, etc. that might reflect costs that are difficult to be controlled by the company.
this however, does not mean u should not pay attention to the net profit too.
Explanation:
Answer:
Total collectible in November = $826,560
Explanation.
Sirignano Corporation
October
Sales $84 x 8,400 = 705,600
Collections in Oct 40% = $282,240
November
Sales $84 x 12,000 = 1,008,000
Collections in Nov 40% = $403,200
60% Oct collections in Nov = $423,360
Total collectible in Nov = $826,560
Collections in Dec 60% = $604,800