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
DerKrebs [107]
3 years ago
13

Berta Company recently lost its entire inventory in a fire. The following information is available from its accounting records:

Beginning inventory: $1,000; purchases: $13,000; net sales: $20,000. The company's average gross profit percentage is 40%. Using the gross profit method, a reasonable estimate of cost of goods sold for this past period would be?
Business
1 answer:
Simora [160]3 years ago
8 0

Answer:

Lost Inventory would be $2.000

Explanation:

Consider the following calculations and variables

  • Inventory cost at beginning : $1000
  • Purchase : $13,000
  • Sales : $20000
  • cost of Goods Available = $1000 + $13,000 = $14,000
  • Gross Profit percentage is 40%. So Cost of Goods Sold = 100-40 = 60%
  • Cost of Goods Sold = $20000 * 60% = $12000
  • Ending Inventory = Cost of Goods Available - Cost of Goods Sold = $14000 - $12000 = $2000

Lost Inventory would be $2000

You might be interested in
One of the weaknesses of the direct write-off method is that it A. understates accounts receivable on the balance sheetB. violat
Sauron [17]

Answer:

B. violates the matching principle

Explanation:

The direct write-off method makes an accounting period take the bad debt expense for a sale which occur in a previous period. Therefore this expense was deferred over the accounting periods. This violates the matching principles.

The matching principles states the revenues and expenses should be acknowledge on the period they occur. In this case the bad debt expense, occur on the period of sale but, with the direct write-off method it is recognize on a subsequent period, generating a distorsion on the net income of the present and future accounting cycles.

4 0
4 years ago
Which of the choices describes how the effects of import tariffs and import quotas are different? The domestic cost of an import
tatuchka [14]

Answer:

Quotas do not affect the equilibrium price, whereas tariffs do not affect the equilibrium quantity.

Explanation:

The import tariff decreases the import quality from AD to CB and increases the price of the good from P to P*. The import restricting effect and consumption effect is same for quotas and tariff. So, the deadweight loss from  them is the same from quotas and tariff (HIJ and GEF).

Please observe the image attached.

However, tariff enables the government to increase their revenue from the imports while import quotas precludes such revenue (GEHI). Thus, the cost tariff is lower than the import quotas imposed.

3 0
3 years ago
Rossiter Restaurants is analyzing a project that requires $180,000 of fixed assets. When the project ends, those assets are expe
Leviafan [203]

Answer:

Cash in-flow in the last year.

Explanation:

Salvage value, also known as residual value, is the amount that you receive from sale of Property, Plant, and Equipment at the end of useful life. When computing the NPV of any project, we consider all the relevant cash flows of that project. Since, $45,000 will be received when project ends from sale of Fixed asset, so this figure will be treated as Cash in-flow and discounted.

8 0
3 years ago
Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted fixed costs of $600,000. The st
natka813 [3]

Answer:

The answer is "\$ \ 100,000 \ hours"

Explanation:

Budgeted fixed cost  = \$ 600,000  

labour hours = \frac{ \$ 6 }{hour}  

\text{overhead rate} = \frac{ \text{Budgeted fixed cost}}{labour\ hours}

                     = \frac{\$ \ 600, 000}{\$ \ 6}\\\\= \$ \ 100,000 \ hours

4 0
3 years ago
In January 2020, Sunland Company, a newly formed company, issued 10300 shares of its $8 par common stock for $13 per share. On J
balu736 [363]

Answer:

The correct option is the acquisition of these treasury shares decreased total stockholders' equity.

Explanation:

Initially the total stockholders' equity is $133,900 ($13*10,300) which comprised of $82,400  common stock ($8*10,300) $51,500 paid in capital in capital in excess of par value.

By repurchasing 1,030 treasury stock at $10,the total stockholders' equity decrease by $10,300,which leaves a balance of $123,600 ($133,900-$10,300).

In other words,the first option is the correct choice of answer

4 0
3 years ago
Other questions:
  • On December 28, 20X3, Stern Corporation and Ram Company established S&R Partnership, with cash contributions of $14,000 and
    8·1 answer
  • Suppose the united states dramatically increases benefits for unemployed workers. explain what will happen to the natural rate o
    12·1 answer
  • What is the key difference between command and market economies?
    8·1 answer
  • In which phase or part of the hiring process should applicants have the best understanding of the ethical foundation of the orga
    7·1 answer
  • Drag the steps for making a decision to order them from first to last.
    14·1 answer
  • What is the change from a gaseous state to a liquid
    8·1 answer
  • In the united states ,dollar bills, , and dimes are representative money
    12·1 answer
  • The first step to merging is entering the ramp and _____.
    10·1 answer
  • Liz just completed a Client Needs Assessment and her client
    7·1 answer
  • What can you do to<br> protect your personal<br> information?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!