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2 years ago

The selected inventory costing method impacts:________

Business

1 answer:

Alisiya [41]2 years ago

4 0

Answer:

The correct option is a) Gross profit and ending inventory.

Explanation:

The inventory technique is a method of accounting for calculating the value of an inventory. The approach calculates the ending inventory balance by comparing the inventory cost to the merchandise price.

There are three methods for valuing inventory whic are FIFO (First In, First Out), LIFO (Last In, First Out), and WAC (Weighted Average Cost) (Weighted Average Cost). The gross profit and ending inventory are affected differently by each of these costing methods.

This implies that the selected inventory costing method impacts gross profit and ending inventory.

Therefore, the correct option is a) Gross profit and ending inventory.

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S4-14 Calculating the current ratio End of the Line Montana Refrigeration has these account balances at December 31, 2018: Accou

garri49 [273]

Answer:

2.24 times

Explanation:

The formula and the computation of the current ratio is shown below:

As we know that

Current ratio = Current assets ÷ current liabilities

where,

Current assets = Prepaid rent + office supplies + account receivable + cash

= $2,500 + $1,300 + $6,600 + $3,500

= $13,900

And, the current liabilities is

= Account payable + salaries payable

= $3,600 + $2,600

= $6,200

So, the current ratio is

= $13,900 ÷ $6,200

= 2.24 times

3 0

3 years ago

Rivian is considering an trucking assembly. The R1T assembly has an expected life of 5 years, will cost $95 million, and will pr

svetoff [14.1K]

Answer:

Rivian

The equivalent annual annuity is:

$28,053,400.

Explanation:

a) Data and Calculations:

R1T assembly investment cost = $95,000,000

Net cash flows = $37,000,000 per year

Cost of capital = 10%

Period of investment and annuity = 5 years

Annuity factor = 3.791

Present value of annuity = (3.791 * $37,000,000)/5

= 140,267,000/5

= $28,053,400

b) The net cash flows of $37 million per year will produce an annuity value of $28,053,400. In comparison with the investment cost in the R1T assembly, the present value of the annuity is reasonable.

6 0

3 years ago

A product is currently made in a process-focused shop where fixed costs are $10,000 per year, and variable cost is $50 per unit.

Goryan [66]

Answer:

Break even point will be 50 units

So option (D) will be correct answer

Explanation:

We have given fixed cost = $10000 per year

Variable cost is $50 per unit

Selling price = $250 per unit

We have to find the break even point for the operation

We know that break even point is equal to

Break even point $=\frac{fixed\ cost}{selling\ price-variable \ cost}=\frac{10000}{250-50}=\frac{10000}{200}=50unit$

So break even point will be equal to 50 units

So option (D) will be correct answer

7 0

3 years ago

Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk

muminat

Answer:35%

Explanation:

7 0

3 years ago

Ann got a 30 year FRM with annual payments equal to $12,000 per year. After 2 years of payments Ann will refinance the balance i

IrinaK [193]

Answer:

Ann s annualized IRR from refinancing is -0.0960

Explanation:

A / 1 B C D E F G H

2 Ann

3 FRM duration in years 30

4 Annual payment $ 12,000

5 Total Payments for 30 years $360,000

6 Payments made for 2 years

7 Payment amount for 2 year $24,000

8 after two years FRM outstanding $336,000

10 Refinancing is done for 28 years

11 Annual payment $10,000

12 Total Payments for 28 years $ 280,000

13 Refinancing Cost $2,500

14 Total amount of cost $282,500

15 Balance outstanding before refinancing 336,000

16 Amount saved at the end of 2nd year $53,500 period cashflow cash payment cost of refinance prepayment NetFlow

0 360,000 360,000

1 (12,000.0) (12,000)

2 (12,000.0) (2,500) (14,500)

3 280,000.0 (10,000) (336,000) (66,000)

4 (10,000) (10,000)

5 (10,000) (246,000) (256,000)

640,000 (54,000) (2,500) (582,000) 1,500

IRR = -0.0960%

Therefore, Ann s annualized IRR from refinancing is -0.0960

3 0

3 years ago