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vesna_86 [32]
3 years ago
15

Sunland Company just began business and made the following four inventory purchases in June: June 1 144 units $1000 June 10 192

units 1500 June 15 192 units 1610 June 28 144 units 1270 $5380 A physical count of merchandise inventory (rounded to whole dollar) on June 30 reveals that there are 200 units on hand. The inventory method which results in the highest gross profit for June is the average cost method. not determinable. the FIFO method. the LIFO method.
Business
1 answer:
Sergio039 [100]3 years ago
8 0

Answer:

The First-in, First-out has the lower cost of goods sold, therefore, it will provide with a higher gross profit.

Explanation:

Giving the following information:

June 1: 144 units for $1000 ($6.94 per unit)

June 10: 192 units for $1500 ($7.81 per unit)

June 15: 192 units for  $1610 ($8.38 per unit)

June 28: 144 units for  $1270 ($8.82 per unit)

Ending inventory in units= 200 units on hand.

The method that will provide a higher gross profit is the one with the lower cost of goods sold.

Inventory methods:

<u>FIFO (first-in, first-out):</u>

COGS= 144*6.94 + 192*7.81 + 136*8.38= $3,639

<u>LIFO (last-in, lsdt-out)</u>

COGS= 144*8.82 + 192*8.38 + 136*7.81= $3,941

<u>Weighted-average:</u>

Average price= (6.94 + 7.81 + 8.38 + 8.82)/4= $7.99

Now, we can calculate the cost of goods sold:

COGS= 7.99*472= $3,771.28

<u>The First-in, First-out has the lower cost of goods sold, therefore, it will provide with a higher gross profit.</u>

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Answer:

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Explanation:

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In the given case, from the purpose of bank, acceptance of deposits constitutes a liability since the bank has to pay such deposits whenever required by the customer.

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When performing the managerial task of planning, managers organize people into departments according to the kinds of job-specifi
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3 years ago
You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair
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Answer:

b. $5m

Explanation:

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3 years ago
A manufacturing plant is trying to determine standard production per day for an incentive program. Suppose that the incentive pr
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Answer:

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Explanation:

The given values are:

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Performance rating

= 105%

i.e.,

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Allowance factor

= 13%

i.e.,

= 0.13

So,

⇒  Standard \ time = \frac{(Average \ observed \ time\times Performance \ rating)}{1-Allowance \ factor}

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The available time will be:

= (8 \ hours\times 60 \ min/hr\times 60 \ sec/min)

= 28800  \ seconds

Now,

The Standard production per day will be:

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3 years ago
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