1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Phantasy [73]
3 years ago
8

Given the following information and assuming beginning inventory was zero and a periodic inventory system was used, what is the

gross profit at the end of the period using the FIFO, LIFO, and average cost methods?
Purchases

Sales
20 units at $50 15 units at $60
35 units at $40 35 units at $45
85 units at $30 85 units at $35
FIFO LIFO Cost Average

A.
$650 $750 $677

B.
$650 $750 $990

C.
$677 $650 $677
Business
1 answer:
aivan3 [116]3 years ago
4 0

Answer:

A.  $650 $750 $677

Explanation:

period                 purchases                            sales

1                        20 units at $50                15 units at $60

2                       35 units at $40                35 units at $45

3                       85 units at $30                85 units at $35

total revenue = $900 + $1,575 + $2,975 = $5,450

COGS:

  • using FIFO = (15 x $50) + (5 x $50) + (30 x $40) + (5 x $40) + (80 x $30) = $4,800
  • using LIFO = (15 x $50) + (35 x $40) + (85 x $30) = $4,700
  • cost average = ($4,950 / 140 units) x 135 units = $4,773.21

Gross profit:

  • using LIFO = $5,450 - $4,800 = $650
  • using FIFO = $5,450 - $4,700 = $750
  • using cost average = $5,450 - $4,773.21 = $676.79 ≈ $677
You might be interested in
In 2019, Laureen is currently single. She paid $2,800 of qualified tuition and related expenses for each of her twin daughters S
Anastaziya [24]

Answer:

Answers below

Explanation:

a) Laureen's AGI - $45,000

For 2 daughter - AOTC is - (2000*2child)+(800*25%+2child)

=4000+400

=4400

For Ryan - 1900

AOTC - 6300

Laureen lifetime learning credit - Eligible is 2000 (The amount of the credit is 20 percent of the first $10,000 of qualified education expenses or a maximum of $2,000 per return)

so in above case it is - 1200*20% =240 (Since AGI is below clip of 56000 he can claim same)

=6300+240 = 6540 is eligible deduction

b)

Since AGI is 95000

AOTC can't be calimed if AGI is above 90000 and hence AOTC is zero and Lifetime learning credit can't be claimed if AGI is above 56000.. Hence it is zero education credit

c)

For Daughter it is same as a above i.e. 4,400

For Ryan it is = 2000+(10000*25%) or maximum 4000

=2000+2500 or 4000

so 4000 is allowed

so AOTC total of 8400 and LLC of 240 so claimed is 8640

3 0
4 years ago
Marianne's Chocolates sell well in the U.S. at a price of $24 per pound, and she has overproduced one kind of chocolate bar. Mar
sammy [17]

Answer: Variable cost pricing

Explanation:

Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.

8 0
3 years ago
On January 1, 2021, Jeans-R-Us Company awarded 15 million of its $1 par common shares to key executives, subject to forfeiture i
Sedaia [141]

Answer and Explanation:

The computation and journal entries are shown below:

1.. The total compensation cost is

= 15 million × $3 per share

= $45 million

2.  

On Jan 1

Deferred compensation expense $45 million

            To Common Stock $15 million

            To Additional paid in capital $30 million

(Being expense is recorded)

3.

On Dec 31

Compensation expense ($45 ÷ 3) $15 million  

      To Deferred compensation expense $15 million

(Being expense is recorded)

6 0
3 years ago
how taxation impact positively (contribute to the company's success) and negatively(can lead to failure) on the company you visi
coldgirl [10]
Maybe I'll have to check real quick
3 0
3 years ago
When dealing with group conflict, a manager should try to increase the ratio of relationship to substantive conflict?
Dominik [7]

False. When dealing with group conflict, a manager should try to increase the ratio of relationship to substantive conflict. When dealing with a group conflict, the manager should work in different ways to make sure that each person is treated the same and try to resolve the conflict with them instead of potentially creating more conflict if they add more conflict to the problem.

3 0
3 years ago
Other questions:
  • Elc inc. is an electronic appliances manufacturer that has many strategic business units (sbus), among which, television and com
    14·1 answer
  • Job specifications can be defined as: a. planned sequences of jobs through which employees may advance within an organization. b
    10·1 answer
  • Which one of the following types of disclosure costs is the cost of disclosing the company’s pricing strategies? A. Political co
    12·1 answer
  • How can your sense of social structure affect your work with patients
    10·1 answer
  • An investment in an available-for-sale security is transferred to trading because the company anticipates selling the stock in t
    11·1 answer
  • Amy, a baker, has found her dream home, but cannot afford the down payment. Amy’s brother agrees to loan her $3000 for the down
    12·1 answer
  • The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial ma
    15·1 answer
  • Halsted Corp. has identified three cost pools in its manufacturing process: equipment maintenance, setups, and quality control.
    15·1 answer
  • . In 2000, KFC® and A&W® restaurants successfully merged because each had a strong
    15·1 answer
  • Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!