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aev [14]
3 years ago
10

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of Septembe

r:
Sep. 1 : Inventory20 units at $20
Sep. 4 : Sold10 units
Sep. 10 : Purchased30 units at $25
Sep. 17 : Sold20 units
Sep. 30 : Purchased10 units at $30
a) If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is:___________.
a.$800
b.$750
c.$650
d.$700
b) If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is:__________.
a.$800
b.$700
c.$650
d.$750
Business
1 answer:
Degger [83]3 years ago
6 0

Answer:

lLIFO-option B is correct ,$750

FIFO-option A is correct,$800

Explanation:

In using LIFO, each item sold is from the last inventory received while the FIFO is of the opinion that item sold is the oldest stock of inventory.

Under LIFO, cost of ending merchandise is as follows:

10 units (20-10) at      $20=$200

10 units (30-20) at     $25=$250

10 units at  $30                =$300

Total value of inventory  =$750

The correct option is B,$750

Under FIFO, cost of ending inventory is as follows:

20 units at  $25                 =$500

10 units at $30                   = $300

total value of inventory      =$800

The correct option is A,$800

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Mark and Kate are establishing a fund for their son's college education. They would like $60,000 in the fund at the end of 10 ye
katen-ka-za [31]

Answer:

The lump sum amount to be deposited should be $27,020.67

Explanation:

Data provided in the question:

Future value = $60,000

Time, t = 10 years

Interest rate, r = 8% = 0.08

Compounded monthly i.e number of periods n = 12

Now,

Future value = Amount deposited ×  \left( 1 + \frac{r}{n} \right)^{\Large{n \times t}}

Therefore,

on substituting the respective values, we get

$60,000 = Amount deposited ×  \left( 1 + \frac{0.08}{12} \right)^{\Large{12 \times 10}}

or

$60,000 = Amount deposited × ( 1.00667 )¹²⁰

or

$60,000 = Amount deposited × 2.220522

or

Amount deposited = $60,000 ÷ 2.220522

or

Amount deposited = $27,020.67

Hence,

The lump sum amount to be deposited should be $27,020.67

7 0
3 years ago
Since companies do not know precisely how much demand will be placed on their computing resources in the​ future, an attractive
ratelena [41]
The answer to this question is Elastic
An elastic product is the type of product which demand will be influenced by movement in prices. For product like cloud computing, the product could be considered more durable because it willl always stay needed and will not go rotten, so the movement in prices shouldn't necessarily affect them that much.
3 0
3 years ago
Read 2 more answers
Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost informa
alekssr [168]

Answer:

a) Standard WIP      75,000 debit

            factory overhead       75,000 credit

b) applied to deluxe model 28 setups x $   400 = $ 11,200

c) total overhead to deluxe: 35,200

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

expected overhead:       120,000

total labor hours: 375 + 22 = 600

overhead rate: 120,000 / 600 = 200

applied to Standard model: 375 hours x $ 200 = 75,000

overhead cost for setups: $ 20,000

total setups (cost driver) 22  + 28

activity rate: $ 20,000 / 50 setups = $    400

applied to deluxe model 28 setups x $   400 = $ 11,200

overhead cost for component: $40,000

total components: 8 + 12 = 20

activity rate: 40,000 / 20= 2,000

applied to deluxe model: 12 x 2,000 = 24,000

<u>Overhead cost into deluxe model under ABC:</u>

setup overhead applied to deluxe model 28 setups x $   400 = $ 11,200

component overhead applied to deluxe model: 12 x 2,000 = 24,000

Total: 35,200

6 0
3 years ago
You are asked to assess the current service model for a manufacturing line featuring 8 machines. Based on empirical data you hav
xeze [42]

Answer:

A) 14.72 hours

B)  An additional worker should be hired since the lost work time is 14.72 hours

Explanation:

Number of machines on manufacturing line = 8

percentage of machine been down = 23%

number of workers capable of running and repairing machines = 2

machine productivity ( per machine ) = 18 units/hour

overhead cost / machine = $713

hourly rate paid per worker  = $15

Total number of work hours = 8 hour

A) calculate Total amount of lost worktime

 = number of machines * Total number of work hours * 23%

= 8 * 8 * 23% = 14.72  hours

B) An additional worker should be hired since the lost work time is 14.72 hours

7 0
3 years ago
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equi
Alex Ar [27]

Answer:

Ratio of fixed assets to long-term liabilities  = fixed assets / long term liabilities = $971,600 / $694,000 = 1.4

Ratio of liabilities to stockholders' equity = total liabilities / stockholders' equity = $834,000 / $2,780,000  = 0.3

Asset turnover = net sales / average total assets = $21,141,000 / [($3,614,000 + $3,433,000)/2] = 6  

Return on total assets = (net income + interest expense) / average total assets =  ($386,000 + $41,640) / [($3,614,000 + $3,433,000)/2] = 12.14%

Return on stockholders’ equity = net income / average stockholders' equity = $386,000 / [($2,780,000 + $2,558,000) = 14.46%

Return on common stockholders' equity = net income / average common stockholders' equity = $386,000 / [($1,946,000 + $1,724,000) = 21.04%

8 0
3 years ago
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