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marshall27 [118]
3 years ago
11

Ecology Co. sells a biodegradable product called Dissol and has predicted the following sales for the first four months of the c

urrent year: Jan. Feb. March April Sales in units 1,700 1,900 2,100 1,600 Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February
Business
1 answer:
icang [17]3 years ago
3 0

Answer:

Purchases - February = 1940 units

Explanation:

To calculate the units to be purchased in February, we first need to calculate the opening and closing inventory for the month of February. We know that the closing inventory each month is equal to 20% of next month's sale, so we can calculate the closing inventory for January (which will be opening inventory for February) as,

Opening Inventory - February = 20% * 1900    => 380 units

We can also calculate the ending inventory for February by using the expected sales of March.

Closing Inventory - February = 20% * 2100    => 420 units

The purchases for February can be calculated as follows,

Units Sold = Opening inventory + Purchases - Closing Inventory

1900 = 380 + Purchases - 420

1900 + 420 - 380 = Purchases

Purchases = 1940 units

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Trescott company had the following results of operations for the past year:

Sales (20,000 units at $22) $440,000

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Operating income $ 48,000

A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Trescott accepts the offer, its profits will increase (decrease) by:

Answer : If Cornish accepts this order, its profits will increase by $13,500.

<u>Calculation of Variable Costs per unit :</u>

Direct Material and labor per unit = Total Direct Material and labor / No. of units sold

Direct Material and labor per unit =200000/20000 = $10

Variable Overhead per unit = Total Variable Overhead / No. of units sold

Variable Overhead per unit = (100000*0.4)/20000 = $2

Variable Cost per unit = $12 (Direct Material and labor per unit + Variable Overhead per unit)

Selling price of new order = $17 per unit

No. of units = 3,000

Increase in Fixed Costs = Inc in fixed overhead + inc in S&A Expenses

Increase in Fixed Costs = $1500 (500 + 1000)

Total Cost of new order = (Variable Cost per unit * No. of units) + Increased Fixed Cost

Total Cost of new order = (12*3000) + 1500 = $37,500

Total Revenues from new order = Selling price per unit * No. of units sold

Total Revenues = $51,000 (17 *3,000)

Profit from new order = Total Revenues from new order - Total Cost of new order

Profit from new order = 51000 - 37500 = $13,500

6 0
3 years ago
What is one of the negative effects of globalization?
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I believe the answer is B! Let me know if I am right:)
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Defendant Mcpherson owned property adjacent to the first presbyterian church and wanted to build a gas station on the property.
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The court did not uphold the injunction because the property on which Mcpherson wants to build the Gas station that belongs to Mcpherson has the right to build a gas station on that so Mcpherson challenged this decision any upper court.

<h3>What is an Injunction?</h3>

An injunction is a legal order requiring a person or entity to either cease doing or else start doing some specific action or task.

Thus, in this case, Mcpherson can challenge the lower court's decision in the upper court that prevents him from making a gas station on land that belongs to him.

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2 years ago
Cine Creation sold plant assets at a $ 16 comma 000 loss. Where on the statement of cash flows should Cine Creation report the s
Vanyuwa [196]

Answer:

1. On the statement of cash flow record the sale of the asset under the investment section.

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In Cash flow Statements every asset purchases and sales are viewed as investments, so you record asset sales in the investment section of the cash flow.

Therefore the exact value of the sales is recorded.

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A company sells a plant asset which originally cost $373000 for $111000 on December 31, 2021. The Accumulated Depreciation accou
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The Accumulated depreciation account had a balance of $144000

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Accumulated depreciation is the total amount of a company's asset depreciation, whereas depreciation expense is the amount depreciated for a single period. Depreciation is an accounting entry that represents the decrease in the cost of an asset over its useful life.

Accumulated depreciation is the total amount of depreciation that has been expensed against the asset's value. On the balance sheet, fixed assets are recorded as a debit, while accumulated depreciation is recorded as a credit, offsetting the asset.

Accumulated depreciation accounts are credit-balanced asset accounts (known as a contra asset account). It is classified as a contra asset account because it has a negative balance that is intended to offset the asset account with which it is paired, resulting in a negative balance.

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