Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called _____.
2 answers:
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Answer:
Explanation:
1. Number of goods available for sale = Beginning Inventory + Purchase, March 5 + Purchase, September 19 = 4,000+10,000+6,000 = 20,000 units
Cost of goods available for sale = Beginning Cost of inventory + Cost of Purchase, March 5 + Cost of Purchase, September 19 = 4,000×24 + 10,000×25 + 6,000×27 = 96,000+250,000+162,000 = $508,000
2. Number of units in ending inventory = Number of units available for sale - Number of units sold = 20,000-4,200-9,000 = 6,800 units
3. Calculations are attached
4.
Income statement FIFO:
Sales $937,800 (4,200×69 + 9,000×72)
Less: Cost of Goods Sold ($326,000)
Gross profit $611,800
Less Operating expense $602,000
Net income $9,800
Income statement LIFO:
Sales $937,800 (4,200×69 + 9,000×72)
Less: Cost of Goods Sold ($342,000)
Gross profit $595,800
Less Operating expense $602,000
Net loss $($6,200)
Income statement LIFO:
Sales $937,800 (4,200×69 + 9,000×72)
Less: Cost of Goods Sold ($334,092)
Gross profit $603,708
Less Operating expense $602,000
Net income $1,708
**Cost of goods sold:-
Under FIFO = 96,000+5,000+225,000 = $326,000
Under LIFO = 105,000+162,000+75,000 = $342,000
Under weighted average method = 103,782+230,310 = $334,092
6. LIFO method minimize taxes
Answer:
Balance after 30 years = $151,018.50
Explanation:
In order to calculate this, we will calculate the future value on an amount invested, gaining interest over the years of investment, and this is given by:
where:
FV = future value
PV = present value
r = interest rate
t = time in years.
Hence the future value is calculated as follows:
1. For the first 10 years at 7% interest:
7% interest = 7/100 = 0.07
2. For the last 20 years at 9.5%(0.095) interest:
Note that for the remaining 20 years, the present value (PV) used = 24,589.392, as ending balance after the first 10 years
Total Future value earned = $151,018.50