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Shtirlitz [24]
3 years ago
8

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 23 units at $205 1

7 units February: 33 units at $210 17 units May: 28 units at $215 21 units September: 25 units at $220 20 units November: 23 units at $225 25 units On December 31, there were 32 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory
Business
1 answer:
hodyreva [135]3 years ago
6 0

Answer:

$6,755

Explanation:

The computation of the cost of the ending inventory using the perpetual LIFO method is as follows:

For January:

Total value = Units remaining in inventory × cost per unit

= (23 - 17) × $205

= $1,230

For February:

Total value = Units remaining in inventory × cost per unit

= (33 - 17) × $210

= $3,360

For May:

Total value = Units remaining in inventory × cost per unit

= (28 - $21) × $215

= $1,505

For September:

Total value = Units remaining in inventory × cost per unit

= (25 - 20) × $220

= $1,100

For November:

Total value = Units remaining in inventory × cost per unit

= (25 - 23) × $220

= $660

Cost of the ending inventory:

= $1,230 + $3,360 + $1,505 + $660

= $6,755

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The following information relates to Sheridan Company for the year 2022.
aliina [53]

Answer:

a. Computation of net income

Particulars                                      Amount

Service revenue                            $52,500

Less: Expenses

Salaries and wages expenses      ($23,520)

Utilities expense                             ($2,600)

Rent expense                                  ($8,740)

Advertising expense                      <u> ($1,510)</u>

Net Income                                      <u>$16,130</u>

<u />

b. Computation of comprehensive income statement

Particulars                                            Amount

Net Income                                           $16,130

Add: Other Comprehensive Income  <u> $380    </u>

Comprehensive Income                      <u>$16,470</u>

Note: Dividend will not be included as it forms part of Income statement

5 0
3 years ago
DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be
alexira [117]

Answer and Explanation:

a. The computation of the total estimated direct labor cost is shown below:

Particulars     1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Multiply  Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Total Direct labor hour required 2675 2425 2925 3175 11200

Multiply  Direct labor rate per hour $14 $14 $14 $14 $14

Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800

b.  The total estimated manufacturing cost and the cash disbursement is shown below:

Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Units to be produced 10,700 9,700 11,700 12,700 44,800

Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25

Multiply Total Direct labor hour required 2675 2425 2925 3175 11200

Variable manufacturing overhead rate $2 $2 $2 $2 $2

Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400

Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000

Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400

Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000

Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400

We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost

7 0
3 years ago
g: Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement
madam [21]

Answer:

Total contribution margin= $59,800

Explanation:

Giving the following information:

Unitary selling price= 155,400 / 4,200= $37

Unitary variable cost= 100,800 / 4,200= $24

<u>To calculate the total contribution margin, we need to use the following formula:</u>

Total contribution margin= units sold*(selling price - unitary variable cost)

Total contribution margin= 4,600*(37 - 24)

Total contribution margin= $59,800

6 0
2 years ago
__________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy.
Eva8 [605]

Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

Explanation:

Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tire
Firdavs [7]

Answer and Explanation:

A. The preparation of the differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors is presented below:

                                            Differential analysis

                        Reject (Alternative 1) or accept (Alternative 2)

                                                             Jan 21

Particulars     Reject order        Accept order    Differential effect on income

                    (Alternative 1)     (Alternative 2)     (Alternative 2)

Revenues

(26,000 tires × $93.6)             $2,433,600          $2,433,600

Less: cost

direct material

(26,000 tires × $54)               -$1,404,000            -$1,404,000

Direct labor

(26,000 tires × $24)               -$624,000               -$624,000

Variable factory overhead

(26,000 tires × $24 × 0.62)   -$386,880               -$386,880

Variable selling and admin expenses

(26,000 tires × $25 × 0.44) - ($114 × 4%)

                                              -$167,440                -$167,440

Shipping cost

(26,000 tires × $7.65)           -$198,900                 -$198,900

Certification cost                  -$165,424                  -$165,424

Income or loss                       -$513,044                   -$513,044

B. As we can see that there is a loss of   -$513,044 so the special order should be rejected

C. The minimum price is

= Selling price - differential income per unit

= $93.6 - (-$513,044 ÷ 26,000 tires)

= $93.6 - (-$19.73)

= $113.33

5 0
3 years ago
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