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Marizza181 [45]
2 years ago
6

Gibson company began august with 200 units of product br having a unit cost of $8 in inventory. relevant information is listed a

s follows: if gibson company uses the average cost method inventory cost flow assumption, what amount will it report as gross profit for august?
Business
1 answer:
In-s [12.5K]2 years ago
7 0

ANSWER: To calculate the gross profit for the month of August, Gibson will have to find out the sales in his company. Gibson had a opening stock of 200 units of products valuing $8 per unit. The total value of the stock available at the opening of the month is $8 x 200 units = $1,600. If he uses the average cost method to calculate the inventory cost, he will need the opening stock and the production done in the month of August. This will give him the figure which will show his entire stock which were available for sale in the month.

Let's assume the entire stock produced in the month of August to be 'x', so the total stock available for sale was '$1,600+x'. This amount needs to be subtracted by the closing stock of the month to get the actual value of sales that has happened during the month of August. So, dividing the actual value of sales by the production cost of the sold number of units will give Gibson the gross profit for the month of August.

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Answer:

$154,050

Explanation:

The computation of the net income for the firm is shown below:

Sales               $634,000

Less: costs      -$328,000

Less: depreciation -$73,000

EBIT                   -$233,000

Less: interest      -$38,000

EBT                      195,000

Less: tax(195,000 × 21%) -$40,950

Net income    $154,050

We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered

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3 years ago
A product enters the maturity phase of the life cycle, during which cells are strong but growth is slowing. What product managem
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Answer:

D.

Explanation:

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2 years ago
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The totals from the first payroll of the year are shown below. Total Earnings FICA OASDI FICA HI FIT W/H State Tax Union Dues Ne
alexgriva [62]

Answer and Explanation:

The journal entry to deposit the FICA and FIT taxes is as follows:

FICA OASDI $2,244.10  

FICA HI $524.83  

FIT W/H $6,515.00  

         To Cash  $9,283.93

(Being to record deposit the FICA and FIT taxes)

Here the FICA OASDI FICA HI FIT W/H is debited and the cash is credited

So the same is to be considered

5 0
2 years ago
Gunst Company produces three video games: Android, Bio-Mutant, and Cyclops. Cost and revenue data pertaining to each product are
Dima020 [189]

Answer:

Gunst should produce 500 Bio-mutant games:

  • total contribution margin = $71 x 500 = $35,500

Explanation:

                                   Android          Bio-mutant          Cyclops

selling price                  $100                 $107                   $125

labor                               $48                  $24                     $60

direct materials               $9                    $8                       $16

variable overhead          $7                     $4                        $9

contribution margin      $36                   $71                      $40

labor hours                        4                       2                          5

Bio-mutant generates by far the largest contribution margin and requires the least direct labor hours.

Gunst should produce 500 Bio-mutant games:

  • total revenue = $107 x 500 = $53,500
  • total contribution margin = $71 x 500 = $35,500

If it produces 250 Android games its total contribution margin will = $9,000

If it produces 200 Cyclops games its total contribution margin will = $8,000

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Natasha_Volkova [10]

Answer:

In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?

When marginal costs of production are the same for each of the members of the cartel.

Explanation:

D

8 0
3 years ago
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