Answer:
Production= 200,000
Explanation:
Giving the following information:
Beginning Inventory Ending Inventory
Finished goods (units) 24,000 34,000
The company plans to sell 190,000 units during the year.
<u>To calculate the production required, we need to use the following formula:</u>
Production= sales + desired ending inventory - beginning inventory
Production= 190,000 + 34,000 - 24,000
Production= 200,000
Answer:
Income statement
Sales Revenue $ 612,000
Variable Overhead cost $ (315,000)
Fixed manufacturing overhead <u>$ ( 126,000)</u>
Gross Profit $ 171,000
Variable Operating expenses $ ( 27,000)
Fixed Operating expenses <u>$( 93,000)</u>
Net Income $ 51,000
Explanation:
Income statement
Sales Revenue ( 9,000 units * $ 68) $ 612,000
Variable Overhead cost ( 9,000 * $ 35 ) $ (315,000)
Fixed manufacturing overhead <u>$ ( 126,000)</u>
Gross Profit $ 171,000
Variable Operating expenses ( $ 3 * 9000 units) $ ( 27,000)
Fixed Operating expenses <u>$( 93,000)</u>
Net Income $ 51,000
Answer:
Weighted average selling price= $94
Explanation:
Giving the following information:
Sales in units:
Skis= 12,600
Snorkles= 23,400
Total= 36,000
Product: Unit Selling Price
Skis= $120
Snorkels= $80
We need to calculate the weighted average selling price per unit for the company as a whole.
<u>First, we need to calculate the participation of each product on sales:</u>
Skis= 12,600/36,000= 0.35
Snorkles= 23,400/36,000= 0.65
Weighted average selling price= (0.35*120) + (0.65*80)= $94
Inventory costing methods rely heavily on assumptions about the flow of costs. The most widely used inventory valuation method is the FIFO method.
FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Specific Identification, and Weighted Average Cost are the 4 major Inventory costing methods. If your inventory costs are steady or increasing, LIFO is the better option. Businesses with bigger inventories and rising costs appreciate how LIFO reduces profits and taxes while increasing cash flow. If your inventory costs are decreasing, FIFO is the better option.
Learn more on Inventory costing methods-
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Answer:
D. Profitability Ratios
Explanation:
A profitability ratios are class of ratios that are used by investors, share holders and other stake holders of the company to access the business ability to generate profits and returns relative to its revenue, expenses and other associated costs.
Most common Profitability ratios are
- Gross profit margin
- Operating profit margin
- Net Profit margin.
whereas:
Leverage ratio shows the company's debt level.
Asset management ratio tells how well the company is utilizing its assets to generate sale.
Liquidity ratios shows how much liquid assets or the company position to pay off its current liabilities falling due.
