Answer:
Income +/- inventory adjustment
2015: 138,000 - 23,000 = 115,000
2016: 254,000 + 61,000 = 315,000
2017: 168,000 + 17,000 = 185,000
Explanation:
<u>Inventory Identity:</u>
Beginning + Purchases = Ending + COGS
As the mistake is on the right side it compensates by the other component which is COGS
<u><em>When the inventory is overstated</em></u> this means COGS is understated.
We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.
<u><em>When the inventory is understated</em></u> this means COGS is overstated.
We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.
<span>The graph above shows how the price of video games varies with the demand quantity. The equilibrium price is $50, and the equilibrium quantity is 200 video games.
Answer choice:
</span>A. price, quantity
Concept:
<span>Equilibrium is the point where supply and demand meet and the prices are set. Because the price is set as equilibrium.
</span>The quantity demanded is the amount of a product people are willing to buy at a certain<span> price.</span>
Answer:
b. Budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
Explanation:
Since, the total purchases in units means the number of units that the company needs to buy after maintaining the necessary closing inventory to meet the budgeted sales. The total units required should therefore be equal to the total of the budgeted sales units and the units for the closing of inventory.
Also, if the opening inventory exists out of the total units required, then that number of merchandise does not need to be purchased as it already exists.
Therefore to reach the required purchase unit we need to add budgeted unit sales and desired merchandise ending inventory and deduct the beginning merchandise inventory.
So, the correct option is b.
Answer:
There is something wrong with this question because October to February is not four months, it's five months.
We can calculate this assuming 3 months of 2016 (October, November, December) and 2 months of 2016 (November and December).
- 3 months of 2016 = ($22,400 / 4 months) x 3 months = $16,800
- 2 months of 2016 = ($22,400 / 4 months) x 2 months = $11,200
No option is correct.
To find the value of the inventory to the nearest cent:
Estimated costs are: $18,750
Storage costs: 12%
Interest costs: 12%
Transportation costs: 5%
Let's add the costs up: 12% + 12% + 5% = 29%
We are solving for the value of inventory so in this case we will make that X.
X = estimated costs/interest amounts
X = $18,750/29%
X = $18,750/0.29
X = $64,655.17
The value of the inventory is $64,655.17
To check your work you can take $64,655.17 and multiply it by 29%
= $18,750
