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Makovka662 [10]
3 years ago
11

Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sol

d. The following data are available for the quarter ending September 30, 2021:
Cost Retail
Beginning inventory $430,000 $565,000
Net purchases 920,000 1,340,000
Freight-in 62,550
Net markups 61,000
Net markdowns 31,000
Net sales 1,265,000
Estimate ending inventory and cost of goods sold (average cost).
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

1. Cost to retail ratio = Cost of goods available for sale/ Retail value of goods available for sale

- Cost of goods available for sale = $430000 + $920000 + $62550 = $1412550

- Retail Value of goods available for sale = Retail value of inventory + Net Markup - Net Markdown = $565000 + $1340000 + $61000 - $31000 = $1935000

Cost to retail ratio = Cost of goods available for sale/Retail value of goods available for sale = ($1412550/$1935000)*100 = 73%

Sales value at retail = $1265000

So, Cost Of goods Sold = Sales Value at retail*Cost to retail ratio = $1265000*73% = $923,450

2. Ending Inventory Retail Value = Retail value of goods available for sale-Sales value at retail = $1935000 - $1265000 = $670,000

So, Cost of ending inventory = Ending inventory value at retail*Cost to retail ratio = $670000*73% = $489,100

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Dimas [21]

The yearly return of the investor is given to be 11.069%

<h3>How to find the YTM</h3>

In order to do this we have to make use of the Rate function in excel

This would be given as

=RATE(nper, PMT, PV, FV)

where Nper is 5 years

PMT is = $1,000*10% = $100

PV = $980

The future value Fv is given as $1,000

Hnece we would have to type in excel

RATE(5,100,-980,1000)

This would give us the value of the YTM as 10.5348%

Next would be to find the rate of return of this investor. This would be the rate that he actually earned.

We would also use the rate function

=RATE(nper, PMT, PV, FV

Npe = 4 years

PMT = $1,000*10% = $100

PV = $980

FV = $1,020 that is the amount for which the bond was sold

=RATE(4,100,-980,1020)

The solution would be = 11.0698%

Thus we can say that the return earned on investment is 11.0698%

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6 0
1 year ago
Annabey Inc., a small candy manufacturing company established in 1937, now has several large units that sell unique flavors of c
AlladinOne [14]

Answer:

A

Explanation:

Network externality describes the effect a good or service has on a consumer when other consumers are also making use of the product

Positive network externality occurs when the marginal benefit of making use of a good increases as more users make use of the good

An example of Positive network externality is a social media platform. As there are more users on the site, you have more people to interact with.

For Annabey Inc., their growth increased when their their consumer based increased. As more people tried their product and liked it, they recommended the product to more people. this would increase their sales

7 0
3 years ago
If you don't own a home or a car, your liability is
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If you don't own a home or a car, your liability is b. lower than one who owns both.

<h3>What is a Liability?</h3>

This refers to the legal state of a person who is responsible for something that is put in his care.

Hence, we can see that for a person that owns a car and house, the liability that he has is far higher than someone that does not own any of them.

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8 0
2 years ago
The adjusted trial balance of Sheri dan Company at December 31, 2022, includes the following accounts: Owner's Capital $16,000,
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Proof of income statement.

Revenue    

Service revenue   38300

Expense    

Salaries and wages expense 15700  

Insurance Expense 2300  

Rent Expense  4600  

Supplies expense 1200  

Depreciation Expense  1400  

Total expense   25200

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Sales are the sum of the revenue generated from the sale of goods or services related to the company's main activities. Income, also known as gross income, is often referred to as the "top line" because it is at the top of the income statement. Income or net income is the total profit or profit of the business.

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7 0
2 years ago
Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has
MissTica

Process departmentalization

Explanation:

Departmentalization

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  • Functional departmentalization - a manufacturing company may have a production department, sales and marketing department, an accounting department, and a human resources department.
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