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Maslowich
3 years ago
9

At May 1, 2022, Nash's Trading Post, LLC had beginning inventory consisting of 220 units with a unit cost of $5. During May, the

company purchased inventory as follows:
▪ 440 units at $5

▪ 670 units at $6

The company sold 1110 units during the month for $11 per unit. Nash's Trading Post uses the average cost method.

Nash's Trading Post's gross profit for the month of May is _____.
Business
1 answer:
Brums [2.3K]3 years ago
5 0

Answer:

Nash's Trading Post's gross profit for the month of May is $6,105.

Explanation:

To determine the gross profit of Nash's Trading Post, the total cost of inventory sold must be subtracted from the value of sales made, with which said result will indicate the gross profit obtained.

At the beginning of May, the company had an inventory of 220 units with a cost of $ 5, that is, a total cost of $ 1,100 (220 x 5). Then, 440 units are added to $ 5, adding a cost of $ 2,200, and 670 units to $ 6, with which a cost of $ 4,020 is added.

Thus, the total inventory for the month is 1,330 units, at a cost of $ 7,320, which gives an average cost of $ 5.5 per unit (7,320 / 1,330).

Now, having sold 1,110 units at $ 11, the cost of the units sold must be subtracted from the value of sales, calculating them at the average cost of $ 5.5.

So, the value of sales is $ 12,210 (1,110 x 11), while the cost of units sold is $ 6,105 (1,110 x 5.5). Therefore, the gross profit of the company during the month of May is $ 12,210 - 6,105, that is, the gross profit of the company was $ 6,105.

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Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of 1 lb. The estimated demand for
velikii [3]

Answer:

46,734 units per run

Explanation:

total estimated demand = 700,000 containers

setup costs per production run = $546

manufacturing cost = $0.47 per container

holding cost = $0.35 per container

r = 700,000 / x

total setup costs = 546r = 546 (700,000/x) = 382,200,000/x

production costs = 0.47 x 700,000 = 329,000

storage cost per unit= 1/2r x 0.35 = 0.35/2(700,000/x) = 0.35x/1,400,000

total storage costs = 700,000 x 0.35x/1,400,000 = 0.175x

C(x) = 382,200,000/x + 0.175 x + 329,000

now we find the derivative:

C'(x) = -382,200,000/x² + 0.175

382,200,000/x² = 0.175

382,200,000 = 0.175x²

x² = 382,200,000 / 0.175 = 2,184,000,000

x = √2,184,000,000 = 46,733.28 ≈ 46,734 units per run

this answer is based on a continuous production process, there are 14.98 runs per year

6 0
3 years ago
In the market for cell phones, if the supply of cell phones increases what will happen to the price and quantity of cell phones?
charle [14.2K]

If the supply of cell phones increases, the price of cell phones will reduce and the quantity of cell phones would increase.

<h3>What is the impact of an increase in the price of cell phones?</h3>

When the market of a good is in equilibrium and the supply for a good increases, the supply curve would shift to the right while the demand curve remains unchanged.

At the new equilibrium of the supply curve and the demand curve, price would be lower and quantity would be higher.

To learn more about an increase in supply, please check: brainly.com/question/14727864

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3 0
1 year ago
You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A co
harina [27]

The equivalent annual costs of each model are as follows:

                                                Model A       Model B

Equivalent annual costs     $2,389.26   $3,008.47

Data and Calculations:

                                              Model A       Model B

Costs of motorcycle              $8,200        $13,600

Expected years of usage      7 years        9 years

Annual maintenance costs    $760          $740

Cost of capital = 9%

Annuity factor                       5.03295        5.99524

PV of annual maintenance  $3,825.04   $4,436.48

Total NPV of costs             $12,025.04  $18,036.48

Equivalent annual costs   $2,389.26  $3,008.47

                          ($12,025.04/5.03295)  ($18,036.48/5.99524)

Thus, the equivalent annual costs of each model are the dividend of the Total NPV costs divided by the Annuity Factor.

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8 0
2 years ago
Sheridan Company includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. T
Gnesinka [82]

Answer:

Note: <em>The options attached belongs to another question, so the answer is not included</em>

Premium liability at December 31, 2020 = ((510,000*60%) - $130,000) /  8*3

Premium liability at December 31, 2020 = 176,000 / 24

Premium liability at December 31, 2020 = 7,333.33

Premium liability at December 31, 2021 = 7333.33 + ((600000*60%) - 150000) / 8*3

Premium liability at December 31, 2021 = 7333.33 + 360,000 - 150,000

Premium liability at December 31, 2021 = 217,333.33

4 0
2 years ago
The following transactions apply to Ozark Sales for 2018: The business was started when the company received $49,500 from the is
Oksana_A [137]

Answer: a. Dr Interest expense  $341.67

                   Cr    Accrued Interest Liability   $341.67.

b. Total Amount of Current Liabilities = $72741.67

Explanation:

Accrued Interest on notes Payable

The Note was issued on 1 September 2018, note Payable is $20500 interest interest will be incurred from the Month of September to February because the Note will be settled on 1 March 2019, How ever The year ended on the 31st of December (current financial period) which means Ozark Sales Company incurred interest for 4 months in the current year (1 September to 31 December 2018).

Interest Calculation

Note Payable Amount = $20500

Interest rate (R) = 5% per annum

Period (Number of months) = 4 months (September to December 2018)

Accrued Interest expense = $20500 x 5/100 x 4/12

Accrued Interest expense = $341.6666667 = $341.67

Journal Entry

Dr Interest expense  $341.67

Cr         Accrued Interest Liability   $341.67.

Current Liabilities

Ozark Sales current liabilities include Purchased equipment inventory, Accrued Interest expense incurred on the Notes Payable and the Notes Payable amount. Ozark Sales Made a Payment of $125100, this payment was made to settle some of the total current liabilities.

The total Current Liabilities (The Balance) on 31 December 2018 will include all transactions mentioned about and the payment of $125100 will be subtracted. The Balance will the amount that will be reflected in the Balance sheet for Current Assets

Purchased Equipment inventory = $177 000

Notes Payable = $20500

Accrued Interest Liability = $ 341.67

Accounts Payable Payment  = $125100

Total Amount of Current Liabilities = $177 000 + $20500 + $341.67 - $125100

Total Amount of Current Liabilities = $72741.67

7 0
3 years ago
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