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laila [671]
3 years ago
12

King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $

8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Business
1 answer:
madreJ [45]3 years ago
8 0

Answer:

$464

Explanation:

Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.

LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.

<u>Calculation of Cost of Goods Sold :</u>

41 unit × $10   = $440

3 units × $8    =   $24

Total               = $464

The cost of goods sold for the month is: $464

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Bison Autos and Sparrow Co. are automobile manufacturers that both incur $9,000 to manufacture a vehicle. Recent numbers indicat
barxatty [35]

Answer:

Sparrow Co's automobiles are premium brands that command premium prices

Explanation:

The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.

Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.

It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby  eliminating excessive costs of holding inventory.

All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.

8 0
3 years ago
The following information relates to Conejo Corporation for last year: Book value per share $ 40 Par value per share $ 12 Divide
Ede4ka [16]

Answer:

price earning ratio = 2

Explanation:

given data

Book value = $40 per share

Par value = $12 per share

Dividends =  $5 per share

Dividend payout ratio = 20 %  

Dividend yield ratio =  10 %

solution

first we get here market price per share by dividend yield ratio that is express as

dividend yield ratio = Dividends per share ÷ market price per share    ........................1

put here value we get

market price per share = \frac{5}{0.10}

market price per share = $50

and

now we get earning per share  by dividend payout ratio that is express as

dividend payout ratio  = dividend per share ÷  earning per share    .................................2

put here value we get

earning per share  = \frac{5}{0.20}

earning per share  = $25

so now we get here price earning ratio that is

price earning ratio = market price per share ÷ earning per share ..........................3

put here value we get

price earning ratio = \frac{50}{25}

price earning ratio = 2

4 0
3 years ago
The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion re
storchak [24]

Answer:

$109,688.89

Explanation:

According to the scenario, computation of given data are as follows,

Formula for Net present value are as follows,

NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - (1+r)^{-n}) ÷ r + Net working capital ×(1+r)^{-n}

Where, r = rate of return

n = number of years

By putting the value, we get

NPV = -28,000 - 2,800 + 32,500 × ( 1 - (1+0.14)^{-7}) ÷ 0.14 + 2,800 × (1+0.14)^{-7}

By solving the above equation, we get

NPV = $109,688.89

8 0
3 years ago
Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Dete
storchak [24]

Answer:

The cost of goods sold using the LIFO menthod is;

d. $3,580

Explanation:

Last in First Out (LIFO) method is an inventory method where the recently purchased good is sold first. This means that when accounting for the cost of goods sold, we use the unit cost of the goods that were purchased recently. In our case;

1 Beginning Inventory 150 units @ $10.00

5 Purchase 220 units @ $12.00

10 Sales 140 units @ $20.00

15 Purchase 100 units @ $13.00

24 Sales 150 units @ $21.00

<em>Step 1: Determine total number of units sold;</em>

Total number of units sold=number of sales on May 24+number of sales on May 10

where;

number of sales on May 24=150 units

number of sales on May 10=140 units

replacing;

Total number of units sold=(150+140)=290 units

Total number of units sold=290 units

<em>Step 2: Determine total cost of goods sold</em>

The first 100 units sold were each sold at $13

The remaining 190 units were each sold at $12

Total cost of goods sold=(100×13)+(190×12)=(1,300+2,280)

Total cost of goods sold=$3,580

5 0
3 years ago
A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil
Ierofanga [76]

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

3 0
3 years ago
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