Answer:
Question 1
b. $100,000
Question 2
(a) Goods held on consignment from another company.
Explanation:
Question 1
Calculation to determine what the cost of the ending inventory under LIFO is
Using this formula
Cost of the ending inventory =(Inventory, Jan. 1 Units*Cost )+[(Dec 31 Units on hand- Inventory, Jan. 1 Units)*Purchase, June 19 Cost ]
Let plug in the formula
Cost of the ending inventory =(8,000 * $11) + (1,000 *$12)
Cost of the ending inventory =$88,000+$12,000
Cost of the ending inventory =$100,000
Therefore the cost of the ending inventory under LIFO is $100,000
Question 2
GOODS HELD ON CONSIGNMENT FROM ANOTHER COMPANY should NOT be included in the PHYSICAL INVENTORY of a company but rather be included in the inventory of the sender of the goods which is the CONSIGNOR.
Answer:Could you add the options?
Explanation:
Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
mixed is the right ans of this