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Artemon [7]
3 years ago
11

If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping

point in purchases, but not ending inventory
Business
1 answer:
stealth61 [152]3 years ago
4 0

Answer:

Net Income will be undervalued.

Explanation:

In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.

The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.

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A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of
Reika [66]

Answer:

$4 and $4

Explanation:

The computation are shown below:

Per hour cost = Total set up cost ÷ Total direct labor hours

                          = $64,800 ÷ $81,000

                          = $0.8

Now the set up cost would be

= Per hour cost × Direct labor hours per unit

For Plus

= 5 × $0.8

= $4

For Max

= 5 × $0.8

= $4

All other given information is not important. Hence, ignored it

4 0
3 years ago
The price of a competitive firm's product is $50 per unit. The firm currently has marginal cost equal to $40. To maximize profit
Karo-lina-s [1.5K]

Answer:

should increase its output

6 0
2 years ago
If a product becomes more easily available what will happen
gavmur [86]
When a product becomes more easily available the price of the product reduces because it is more accessible <span />
5 0
3 years ago
GS Cookie Co. forecasts cash receipts for January and February of $18,000 and $20,000, with cash payments of $6,000 and $8,000,
Tanzania [10]

Answer:

It can pay 12,000 on January and the 3,00 left infebruary therefore; it will pay all his credit line within this two months.

Explanation:

                  January         February

beginning cash $  5,000   $    5,000

receipts            $18,000   $  20,000

disbursement    $(6,000)  $   (8,000)

subtotal            $17,000   $   17,000

minimun            $5,000   $    5,000

<u>Financing  </u>

beginning  $15,000    $ 3,000

payment/loan  $(12,000)  $(3,000)

ending             $  3,000          $-

Ending Cash:  $5,000            $14,000

5 0
3 years ago
Assume you purchased 900 shares of XYZ common stock on margin at $90 per share from your broker. If the initial margin is 65%, t
tiny-mole [99]

Answer:

See below.

Explanation:

Amount Borrowed = Shares * Price * (1-Initial Margin)

900*90*(1-0.65) =81000*28350 = $28,350

Answer = $ 28,350 (D)

8 0
3 years ago
Read 2 more answers
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