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3 years ago

Jones Retail. had the following balances and transactions during 2017:

Business

1 answer:

Elina [12.6K]3 years ago

7 0

Answer:

B $1,625

Explanation:

The computation of the ending inventory based on the lower-of-cost-or-market value is shown below:

The ending inventory units = Beginning inventory + purchase of inventory - selling units

= 15 units + 35 units - 25 units

= 25 units

So, the cost of ending inventory = ending inventory units × purchase price

= 25 units × $84

= $2,100

And, the market value equal to

= ending inventory units × replacement cost

= 25 units × $65

= $1,625

Based on the lower-of-cost-or-market value, the ending inventory would be $1,625

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A method of allocating merchandise cost that assigns the most recent purchased costs to the ending inventory shown on the balanc

____ [38]

The answer is B. First in, first out method

Or commonly known in accounting as the FIFO method, is inventory valuation method where the first goods purchased by company is also the first goods sold.

By doing that, this will make the last goods purchased ( the most recent purchased) by the company became company ending inventory.

7 0

3 years ago

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos

bezimeni [28]

Answer:

The amount of overhead debited to Work in Process Inventory should be: a. $182,00

Explanation:

The Overheads are Applied in the Manufacturing Costs as:

Budgeted Rate × Actual Activity for the Month

At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)

In our Case, the predetermined overhead rate is 70% of direct labor cost

Thus we need to find the Direct Labor Cost first:

Total Labor Costs $360,000

Less Indirect Labor Costs $100,000

Direct Labor Cost $260,000

Therefore Overheads applied would be determined as:

= $260,000 × 70%

= $182,000

6 0

3 years ago

Read 2 more answers

The Dlabay Company had a quick ratio of 1.4, a current ratio of 2.75, an inventory turnover of 6 times, total current assets of

Gnesinka [82]

Answer:

Annual sale is $2,282,728.80 and ACP is 44.87 days

Explanation:

Since the annual sales are not given, so first we have to compute the current liabilities amount, then inventory amount, after that, only the sales amount could be found

So, the current liabilities = Current assets ÷ current ratio

= $775,000 ÷ 2.75

= $281,818

Now the quick ratio = (Current assets - inventory) ÷ current liabilities

1.4 times = ($775,000 - inventory) ÷ $281,818

$394545.20 = $775,000 - inventory

So, inventory = $380,454.80

Now, the inventory turnover equals to

Inventory turnover ratio = (Turnover ÷ average inventory)

6 times = Annual sales ÷ 380454.80

So, annual sales = $2,282,728.80

The computation of the ACP is shown below:

= (Account receivable ÷ credit sales) × 360 days

Since account receivables is not given so first, we have to calculate it which equals to

= Current assets - cash - inventory

= $775000 - $110,000 - $380,454.80

= $284545.20

Now put these values to the above formula

So, the value would equal to

= ( $284545.20 ÷ $2,282,728.80) × 360 days

= 44.87 days

5 0

3 years ago

Journalize the entries to correct the following errors:

Rzqust [24]

Answer:

A. Dr Accounts Receivable for $569

Cr Supplies $569

Dr Supplies $108

Cr Accounts payable $108

B. Dr Cash $8820

Cr Fees earned $8820

Explanation:

Preparation of the entry to correct the following errors:

A. Dr Accounts Receivable for $569

Cr Supplies $569

Dr Supplies $108

Cr Accounts payable $108

B. Dr Cash $8820

Cr Fees earned $8820

($4410+$4410)

6 0

3 years ago

Davidson Software Technologies believes in hiring only the best programmers in the industry. As a result, it uses a comprehensiv

Vladimir [108]

Answer:

The correct answer is C

Explanation:

HRM system is the system which is designed in order to automate the business process of human resource, compliance, transactions and payroll. This system allows the business to focus on the people through streamlining all the software workforce into the business intelligence solution.

Recruitment and selection is the procedure of identifying the requirement of job and defining the need of the position, advertising the position and selecting the appropriate person for the position.

Therefore, the recruitment and selection is the component of HRM system which uses the hiring procedure that comprise of testing and interviewing the professionals.

7 0

3 years ago