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4 years ago

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Business

1 answer:

Flura [38]4 years ago

5 0

Answer:

Warnerwoods Company

Perpetual Inventory System:

1. Cost of Goods Available for Sale and Units Available for Sale:

Mar. 1 Beginning inventory 60 units $50.20 per unit $3,012

Mar. 5 Purchase 205 units $55.20 per unit 11,316

Mar. 18 Purchase 65 units $60.20 per unit 3,913

Mar. 25 Purchase 110 units $62.20 per unit 6,842

Available for Sale 440 units Cost = $25,083

2. The number of units in ending inventory:

Units Available for Sale 440

Subtract units sold 310

Ending Inventory 130 units

3. The Cost assigned to ending inventory using:

a) FIFO: Ending Inventory

20 units at $60.20 per unit = $1,204

110 units at $62.20 per unit = 6,842

Ending Inventory $8,046

b) LIFO: Ending Inventory

Mar. 1 Beginning Inventory 45 units $50.20 per unit = $2,259

Mar. 18 Purchase 65 units $60.20 per unit = 3,913

Mar. 25 Purchase 20 units $62.20 per unit = 1,244

Ending Inventory 130 units Cost = $7,416

c) Weighted Average: Ending Inventory

Cost of Goods Available for Sale divided by units available for sale

= $25,083/440 = $57 per unit

Ending Inventory = $57 x 130 = $7,410

d) Specific Identification: Ending Inventory

This cannot be answered from the information provided in the question:

4. Gross Profit for each costing method:

FIFO LIFO WEIGHTED SPECIFIC

AVERAGE IDENTIFICATION

Sales $27,312 $27,312 $27,312 $27,312

Cost of Sales 17,037 17,667 17,670

Gross Profit $10,275 $9,645 $9,642

Explanation:

a) Sales:

Mar. 9 Sales 220 units $85.20 per unit = $18,744

Mar. 29 Sales 90 units $95.20 units = 8,568

Total = $27,312

b) Cost of Sales:

i) FIFO

Mar 1. Beginning inventory 60 units $50.20 per unit = $3,012

Mar. 5 Purchase 205 units $55.20 per unit = 11,316

Mar. 18 Purchase 45 units $60.20 = 2,709

Cost of Sales = $17,037

ii) LIFO:

Mar. 1 Beginning inventory 15 units $50.20 per unit = $753

Mar. 5 Purchase 205 units $55.20 per unit = $11,316

Mar. 25 Purchase 90 units $62.20 per unit = $5,598

Cost of Sales = $17,667

iii) Weighted Average:

Cost of Sales = $57 x 310 = $17,670

c) Calculations under the specific identification cannot be made because of the figures given under this method.

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Answer:

$12,936,120

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3 years ago

Tickets for a concert cost $35 for balcony seats and $75 for floor seats. Tickets at the same venue for a theatrical production

Stella [2.4K]

The capacity of seats at a venue has to be determined by putting the data in an equation.

Given:

Price of balcony seat for a concert is $35

Price of floor seat for a concert is $75

Price of balcony seat for a theatrical production is $25

Price of floor seat for a theatrical production is $60

Revenue of concert at full capacity is $27,750

Revenue of theatrical production at full capacity is $21,750

<h3>Equation</h3>

By putting the data of a concert and the data of a theatrical production in the equation to found that the equation as follows:

35 x 75 y = 27,750. 25 x 60 y = 21,750.

Elaborating further, the data given for the concert at full occupancy is balcony seat $35 and floor seat $75 which generates the revenue of $27,750, is matching completely with the first part of equation.

Similarly, the data given for a theatrical production at full occupancy is balcony seat $25 and floor seat $60 which generates the revenue of $21,750, is matching completely with the second part of equation.

Hence the system of equations which can be used to find the number of floor seats and balcony seats of the venue is OPTION B is correct i.e. 35 x 75 y = 27,750. 25 x 60 y = 21,750.

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2 years ago

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What is the first step you should take in managing data for a firm?

lesya692 [45]

Organising the data in a logical way.

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4 years ago

What will happen to the equilibrium quantity and equilibrium price of potatoes if the income of potato consumers increases (assu

Elodia [21]

Answer:

Equilibrium quantity and price will decrease

Explanation:

Inferior goods are the products or services whose demand increases with an increase in price. An Inferior good contracts a normal product whose demand falls with a rise in price. Should consumer's incomes increase, the demand for inferior products and services will decrease.

If potatoes are inferior goods, an increase in incomes will result in a decrease in their demand. The equilibrium quantity will decrease. If and a new higher-yielding variety of potato plant is developed, it will create competition for the inferior potatoes. With an increase in income, consumers tend to prefer 'perceived' high-quality and more costly products. The new higher-yielding variety will be demanded more, which will result in a decline in prices for the inferior potatoes.

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3 years ago

Concord Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $57,000 with terms 2/15, n/4

algol [13]

Answer:

See below.

Explanation:

We record the entries as follows,

First record the total gross sales,

Debit accounts receivables by $57,000

Credit Sales by $57,000

Payment terms provide us that 2% discount if paid within 15 days and no discount thereafter.

We record the payments as,

Cash debit by ($57,000 * 0.98) = $55,860

Discounts allowed debit by ($57,000*0.02) = $1,140

Credit Discount receivable by $57,000

Hope that helps.

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4 years ago