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MrRissso [65]
3 years ago
7

On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati

on is available: Sales, January 1 through July 8 $ 700,000 Inventory, January 1 130,000 Purchases, January 1 through July 8 640,000 Gross profit ratio 30 % What is the estimated inventory on July 8 immediately prior to the fire? Multiple Choice $192,000. $490,000. $510,000. $280,000.
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer:

$280,000

Explanation:

The calculation of estimated inventory is shown below:-

Cost of Goods Available = Beginning Inventory + Net Purchases

= $130,000 + $640,000

= $770,000

Inventory sols (Sales - Sales × 30%)

=  $700,000 - $700,000 × 30%

= $490,000

Ending Inventory = Cost of goods available - cost of good sold

= $770,000 - $490,000

= $280,000

So, for computing the ending inventory we simply applied the above formula.

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6 0
4 years ago
Karla's candle factory is considering two different machines. machine a is highly automated with fc of $25,000 and vc of $.1/can
ycow [4]

Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

<h3>What is manufacturing?</h3>
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To find which option will Karla pick:

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Therefore, Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

Know more about manufacturing here:

brainly.com/question/26320301

#SPJ4

The correct question is given below:

Karla's candle factory is considering two different manufacturing options.

Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.

Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.

If the demand for Karla's candles is 25,000, which option should she pick?

3 0
1 year ago
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