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Tju [1.3M]
3 years ago
9

Q Co. prepares monthly income statements. A physical inventory is taken only at year end; hence, month-end inventories must be e

stimated. All sales are made on account. The rate of markup on cost is 50%. The following information relates to the month of June: Accounts receivable, June 1 $10,000 Accounts receivable, June 30 15,000 Collection of accounts receivable during June 25,000 Inventory, June 1 18,000 Purchases of inventory during June 16,000 The estimated cost of the June 30 inventory is _________.
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

Answer:

$14,000

Explanation:

Sale made = Accounts Receivable on 30 June + Collections of accounts - Accounts Receivable on 1 June

= $15,000 + $25,000 - $10,000

= $30,000

Cost of goods sold = Sales made ÷ rate of mark-up on cost

= $30,000 ÷ 150% × 100%

= $20,000

Estimated cost of the June 30 inventory = Inventory Balance on June 1 +  Purchases made during June -  Cost of goods sold

= $18,000 + $16,000 - $20,000

= $34,000 - $20,000

= $14,000

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Suppose Jones Company manufactures chairs. One model is the executive chair that sells for $120. Jones Company projects sales of
Anestetic [448]

Answer:

$32,000

Explanation:

Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.

Cost of goods sold = Sales value - Gross Profit

Gross profit = Sales value - Direct costs - overhead costs

Gross profit per unit = $120 - ($50 + $ 20 + $10)

Gross profit per unit = $40 per unit

Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000

Budgeted sales value = Selling price per unit × Budgeted sales units

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Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value

= $48000 - $16000 = $32000

<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.

5 0
3 years ago
The operators of adult bookstores got together and each agreed to contribute $1,000 to a fund for use in lobbying the city counc
san4es73 [151]

Answer:

The operators have not violated the antitrust laws because they are only collaborating to lobby the government

Explanation:

The antitrust law in the U.S. can be described as a group of federal and state government laws enacted to regulate the activities of business firms in order to enhance competition to the advantage of consumers.

The antitrust law aims to collusive activities that suppress trade, any merger and acquisition that would reduce competition, and prevent the the abuse of monopoly power.

Since the activity of the operators of adult bookstores does not fall under what the antitrust law aims to prevent but it is just a collaboration to lobby the government, they have a good defense that they have not violated the antitrust laws.

3 0
3 years ago
What are the implications of using criteria, such as baldrige, in assessing organizational culture needs? explain
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The implications of using criteria, such as baldrige, in assessing organizational culture needs to:

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-Jump and start a new change initiative

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-Assess the performance against the competition

-Align resources with  some strategic objectives

Baldrige self-assessment helps organizations to assess whether they are developing and deploying a good, balanced and systematic approach for running the organization.

No matter the organization is large or small, and no matter your industry or sector, you can use the Baldrige  Criteria to conduct a self-assessment of the organization.

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To know more about Baldrige criteria here:

brainly.com/question/27960097

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7 0
2 years ago
We all have our own reasons for investing. For some it may be to provide for a child’s education, while for others it may acquir
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YOU CAN INVEST THINGS SUCH AS MONEY AND IT EXPANDS THE AMOUNT OF MONEY YOU HAVE. THIS MEANS THAT YOU CAN GET MORE MONEY AND HAVE MORE MONEY TO WASTE ON FUTURE PLANS.

6 0
2 years ago
Read 2 more answers
You are considering opening a new plant.
kotykmax [81]

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

6 0
3 years ago
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