Answer:
The answer is $221
Explanation:
LIFO means Last in First out i.e the inventory that was bought last will be sold out first.
Opening balance:
November 1: 5 units at $19 each
Purchased:
November 2: 10 units at $21 each
Purchased:
November 6: 6 units at $24 each
Sold:
November 8: 10 units at $54 each
Total number of units bought plus Beginning inventory = 5 + 10 + 6 = 21 units
Therefore, number of units remaining at November 8 after sales is 21 - 10
=11 units.
So according to LIFO, we have:
6 units at $21 = $126
5units at $19 = $95
$95 + $126
=$221
Answer:
Operating profit is projected to be $35,100
Explanation:
Morrow City International
Analysis of the Current and Projected demand to determine the Operating Profit
Particulars Current Projected Changes in
Demand Demand Demand
Selling price $8.50 $9.25 0.75
Less: Cost Price $5.80 $5.80 0
Contribution $2.7 $3.45 0.75
Margin
Unit Sold <u>79,000 72,000 -7000</u>
Total $213,300 $248,400 $35,100
Contribution
Note: Total contribution = Unit sold * Contribution margin
Answer:
She lost $754.05.
Explanation:
Giving the following information:
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.
<u>The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.</u>
<u></u>
Increase in salary= 52,000*1.025= $53,300
Inflation effect= 52,000/(1-0.038)= $54,054.05
To maintain her purchasing power, now, she needs to earn $54,054.05.
She lost $754.05.
Answer:
Total cash collection= $53,000
Explanation:
Giving the following information:
Sales:
February $60,000
March $50,000.
Cash:
40% of the sales are in cash.
Credit sales:
50% in the month of sale
50% in the next month
<u>Cash receipts March:</u>
Sales in cash March= (50,000*0.4)= 20,000
Sales on account March= (50,000*0.6)*0.5= 15,000
Sales on Account February= (60,000*0.6)*0.5= 18,000
Total cash collection= $53,000
