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Anni [7]
3 years ago
7

Tamarisk, Inc. had the following inventory transactions occur during 2017: Units Cost/unit Feb. 1, 2017 Purchase 94 $94 Mar. 14,

2017 Purchase 161 $98 May 1, 2017 Purchase 114 $102 The company sold 265 units at $131 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $2600, what is the company’s after-tax income using LIFO?
a. $4012
b. $3982
c. $5689
d. $5732
Business
1 answer:
Vedmedyk [2.9K]3 years ago
5 0

Answer:

Company’s after-tax income using LIFO would be $3,982

Explanation:

Revenues: 265 * $131 = $34,715

To calculate the cost of the units sold using LIFO you have to use the cost of the last purchases.

For this case it would be:

114 units * $102 + 151 units * $ 98 = $26,426

Once we have the gross profit (deducting the cost from the net sales), we have to deduct the expenses to obtain the net profit before taxes.

$34,715 net sales

-

$26,426 LIFO cost of goods

-----------

$8,289 gross profit

-

$2,600 expenses

----------

$5,689 net profit before taxes

$1,707 (30% TAX)

----------

$3,982 net income

To have the total income we have to deduct the tax that is calculated mutiplying the net income before tax by the taxe rate.

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Erica's Country Furniture sells wooden chairs for $179.49. It buys the chairs from a craft shop for $87.49 each. Its overhead ra
mamaluj [8]

Answer:

60.28%

Explanation:

The selling price per chair = $179.49

buying price per chair = $87.49

the overhead rate is 28%

Actual overheard = 28% x $87.49

=28/100 x 87.49

=0.28  x 87.49

=$24.4972

total cost price per chair =  $87.49 + $24.4972

=$111.98

profit per chair

= $179.49 - $111.98

=67.51

Profitability rate = 67.51/111.98 x 100

=60.28%

4 0
3 years ago
One explanation for greater economic development in moderate versus tropical climates is that institutions established by coloni
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Answer:

C. protected property rights; were extractive and authoritarian

Explanation:

Based on the work of Acemoglu, Johnson and Robinson there were different types of colonization policies which created different sets of institutions. These authors argued that the colonization path was strongly influenced by feasibility of settlements. On the one hand, tropical places where diseases were more likely and affected Europeans the most, settlers formed extractive institutions.  These institutions were not designed to protect private property or provide checks and balances against government expropriation. Their main objective was to transfer as much of the resources of the colony to the colonizer.  On the other hand, where climates were more moderate, settlers seek to replicate European institutions, emphasizing  private property and checks and balances against government power.  

5 0
3 years ago
Middlesex manufacturing uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. L
valkas [14]

Answer:

Under applied = - 40000

Explanation:

Given the estimated manufacturing overhead = $1200000

The direct labor hour = 50000

Direct labor wage rate = $12 per hour

Actual overhead value = $1340000

Now first find the pre-determined overhead rate.

Pre-determined Overhead Rate = 1200000/50000 = 24  

Now find the applied overhead.

Now the Applied Overhead = 650000/12 × 24 = 1300000

Given Actual Overhead = 1340000

Under applied = 1300000 - 1340000 =- 40000

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Who can become a principal and who can become an agent?a. Any person can become a principal, but an agent has to have the capaci
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Answer: Option A

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In a principal agent relationship, the principal bounds the agent to act on his behalf. So, there is no legal contracts to become a principal but the acts of agent are legally bound to a certain extent.

Hence, option A is correct.

6 0
2 years ago
Maddie's shoe store donated hundreds of pairs of shoes to needy children at an inner city school. A news crew reported on the do
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Answer:

publicity

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Publicity involves creating an excellent reputation for a company's brand name. Publicly arises from positives messages from the media, and other sources such as the internet and word of mouth.  An organization engages in activities that create a good relationship with the media and the public to build the desired publicity.

Publicity messages are not paid for, unlike advertising.  In the case of Maddie, the business was engaged in a charitable event. The event was captured in the press, and Maddie brand name was mentioned, thus promoting its brand name.  

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