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Alex73 [517]
2 years ago
8

gThe following data are available for Martin Solutions, Inc. Year 2 Year 1 Sales $1,139,600 $1,192,320 Beginning inventory 80,00

0 64,000 Cost of goods sold 500,800 606,000 Ending inventory 72,000 80,000 Required: Assume a 365-day year. Determine for each year:
Business
1 answer:
Vaselesa [24]2 years ago
3 0

Answer and Explanation:

The computation is shown below;

For Year 1

Average inventory = (Beginning inventory + Ending inventory)÷ 2

= ($64,000 + $80,000) ÷ 2

= $72,000

Inventory turnover = Cost of goods sold  ÷ Average inventory

= $606,000 ÷ 72,000

= 8.4 times

Days in inventory = 365 ÷ Inventory turnover ratio

= 365 ÷ 8.4

= 43.5 days

For Year 2

Average inventory = (Beginning inventory + Ending inventory) ÷ 2

= ($80,000 + $72,000) ÷ 2

= $76,000

Inventory turnover = Cost of goods sold ÷ Average inventory

= $500,800 ÷ 76,000

= 6.6 times

Days in inventory = 365 ÷ Inventory turnover ratio

= 365 ÷ 6.6

= 55.3 days

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Why is saving, spending and investing important? long summary
grandymaker [24]
Saving money is important because of you run in to a problem like your car breaking down you need to have money to fix it. Also saving money is important because you will able to do things like going on vacation. Investing is important because I one thing goes bad you still have other incomes coming in.

Hope this helps
3 0
2 years ago
A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $60; Sec
lys-0071 [83]

Answer:

$82

Explanation:

As company Uses FIFO system, it will sell first two products

The cost price =($60 + $67 = 127).

So Gross profit = Selling Price-Cost Price

Gross Profit = 209-127

= $82

The gross profit for the period is $82

8 0
3 years ago
Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses are Group
yawa3891 [41]

Answer

Associate: where a company has holdings of between 20% and 50%.

Minority Interest: where a company has holdings of less than 20%

Parent Company: where a company has holdings of more than 50%.

Explanation:

<u>An associate company </u>(or associate) is a company that owns a business beyond 20% and not more than 50%. In business valuation such a company that has invested significantly in the shares of another company will have voting rights in the board of the acquired company.

<u>Minority Interest</u> is the term used to describe the investments of one company in another company, when such investments are less than 20% of the total value of the acquired company.

<u>Parent Company</u> is a company that owns more than half (50%) of the shares or value of another company.

4 0
3 years ago
Lisa Smith has her age listed on her driver's license as being three years younger than it actually is. This is also how old she
Lubov Fominskaja [6]

Answer:

Misstatement of age

Explanation:

If the insurance company knows that a person has intentionally lied about his/her age, they will adjust the insurance amount and premium to match the correct age of the insured. E.g. in this case, Lisa will probably be required to pay a higher premium on her policy, and depending on her age, the insurance amount might be lower.

4 0
3 years ago
Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of g
solmaris [256]

Answer:

(A) 352,410

(B) 328,910

(C) 474,120

(D) 461,770

(E) 165,000

(F) 175,000

Explanation:

1.- WIP, August 1st:        $    19,660  $   41,650           (e)

2.- Cost added               $ 332,750        (c)         $ 1,075,000

3.- Subtotal                            (a)        $ 515,770  $ 1,240,000

4.- WIP, August 31th       $  23,500   $  54,000         (f)

5.- COGM                              (b)              (d)         $1,068,000

The identity to solve for this is as follow:

$$beginning WIP + cost added = COGM +  ending WIP

<u>The third row is the sum of the left side of the of the equation.</u>

beginning WIP + cost added.

(a) 332,750 + 19,660 = 352,410

(c) 515,770 - 41,650 = 474,120

(e) 1,240,000 - 1,075,000 = 165,000

COMG will be third row less fourth row

the ending WIP subtracted from the left side

(b) 352,410 - 23,500 = 328,910

(d) 515,770 - 54,000 =  461,770

(f) 1,240,000 - 1,068,000 = 175,000

8 0
3 years ago
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