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Olin [163]
3 years ago
12

Cinnamon Buns Co. (CBC) started 2021 with $61,500 of merchandise on hand. During 2021, $299,000 in merchandise was purchased on

account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $18,500. Merchandise with an invoice amount of $7,800 was returned for credit. Cost of goods sold for the year was $335,000. CBC uses a perpetual inventory system.
Assuming CBC uses the gross method to record purchases, ending inventory would be:
Business
1 answer:
Elenna [48]3 years ago
6 0

Answer:

$30,220

Explanation:

Inventory purchased               $299,000

Discount (299,000*2%)                  ($5,980)

Freight Charges                           $18,500

Inventory returned                        ($7,800)

Net purchases                            $303,720

Cost of goods sold=opening inventory+purchases-ending inventory

$335,000=$61,500+$303,720-ending inventory

Ending inventory=61,500+303,720-335,000

Ending inventory=$30,220

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Answer:

c. The contribution margin per gallon of throughput for each product

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3 years ago
Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. Th
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Answer:

$527,737

Explanation:

The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.

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<em>FV = $5,700,000</em>

<em>PMT = ($5,700,000 x 8%) ÷ 2 = $228,000</em>

<em>N = 5 x 2 = 10</em>

<em>YTM = 10 %</em>

<em>P/YR = 2</em>

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June 30           $34,994              $262,994        $5,294,864

Dec 30             $36,743               $264,743         $5,331,607

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The amount of interest expense to be reported for 2020 is $527,737

7 0
3 years ago
The required return on the stock of Moe's Pizza is 10.8 percent and aftertax required return on the company's debt is 3.40 perce
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Answer:

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