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Licemer1 [7]
3 years ago
6

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Business
1 answer:
gayaneshka [121]3 years ago
3 0

Answer:

(a) FIFO cost $ 17,510.00  includes 20 units @ $63.00 per unit and 250 units @ $ 65.00 per unit.

(b) LIFO cost $ 15,900.00  includes 115 units @ $53.00 per unit, 135 units @ $63.00 per unit and 20 units @ $65.00 per unit.

(c) Weighted average cost $ 16,838.76 includes 270 units @ $62.37 per unit.

(d) Specific identification cost $ 16,240.00 includes 85 units @ 53.00 per unit, 30 units @ 58.00 per unit, 40 units @  63.00 per unit and 115 units @65.00 per unit.

You might be interested in
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at
sammy [17]

Answer:

Part 1.

Number = 2,000 units and Cost  = $26,800

Part 2.

1,040 units

Part 3.

a. FIFO

Ending Inventory  = $14,580

Cost of Goods Sold  = $12,220

b. LIFO

Ending Inventory = $13,180

Cost of Goods Sold  = $13,620

c. Weighted Average Cost

Ending Inventory = $13,936

Cost of Goods Sold = $12,864

Part 4.

Orion Iron Corp.

Income Statement

                                            FIFO               LIFO         Weighted Average

Sales (960 x $42)          $40,320          $40,320               $40,320

Less Cost of Sales        ($12,220)         ($13,620)               ($12,864)

Gross Profit                    $28,100          $26,700                $27,456

Less Expenses

Operating Expenses    ($18,000)         ($18,000)              ($18,000)

Net Income                     $10,100            $8,700                 $9,456

Part 6.

Weighted Average method minimizes Income taxes as it provides lowest profits than the rest of the methods.

Explanation:

Periodic Inventory method ensures that Cost of Sales and Inventory Value are determined at the end of the period.

Cost of Goods Available for Sale = Beginning Inventory + Purchases

therefore,

Number = 350 + 950 + 700 = 2,000 units

Cost = 350 x $14 + 950 x $12 + 700 x $15 = $26,800

Units in Ending Inventory = Units available for sale - Units sold

therefore,

Units in Ending Inventory = 2,000 - ( 350 + 610 ) = 1,040

FIFO

<em>This method assumes that the units to arrive first, will be sold first.</em>

Ending Inventory =  340 x $12 + 700 x $15 = $14,580

Cost of Goods Sold = 350 x $14 + 610 x $12 = $12,220

LIFO

<em>This method assumes that the units to arrive last, will be sold first.</em>

Ending Inventory = 690 x $12 + 350 x $14 = $13,180

Cost of Goods Sold = 700 x $15 + 260 x $12 = $13,620

Weighted Average Cost

This method calculates a new unit cost based on units available for sale after each and every purchase. This unit cost is then used to determine the cost of sales and inventory value.

Unit Cost = Total Cost ÷ Units available for sale

                = $26,800 ÷ 2,000 units

                = $13.40

Ending Inventory = Units in Inventory x Unit Cost

                             = 1,040 x $13.40

                             = $13,936

Cost of Goods Sold = Units Sold x Unit Cost

                                 = 960 x $13.40

                                 = $12,864

3 0
3 years ago
Which of the following is one way that technology can improve productivity?
mote1985 [20]

Answer:

machines

Explanation:

6 0
2 years ago
What is the term called that is intended to clear the cylinder valve of dust or dirt that might otherwise enter the regulator
Len [333]

The answer is: cracking

Cracking only allowed for cylinder that contain non-dangerous substance. Toxic gas for example, would not be allowed because even a single crack could make the gas to leak and harm everything near it. Annual maintenance is required to ensure that no malfunction exist in the object.

7 0
3 years ago
Fred Flintlock wants to earn a total of 10% on his investments. He recently purchased shares of ABC stock at a price of $20 a sh
svlad2 [7]

Answer:

Option (C) is correct.

Explanation:

Return on the stock = (Dividend ÷ Investment) + (capital gain ÷ investment )

= (Dividend ÷ Investment) + (Final price of the stock - initial price of the stock) ÷ Investment

10 = (1 ÷ 20) × 100 + ((final price - 20) ÷ 20) × 100

10 = 5 + 5 × ( final price - 20)

Final price = 21

Therefore, the stock price should increase by [(21 - 20) ÷ 20] × 100

                                                                            = 5%

6 0
3 years ago
Last year, you earned a rate of return of 11.29 percent on your bond investments. During that time, the inflation rate was 4.6 p
nordsb [41]

Answer:

the real rate of interest of  6.39 %

Explanation:

given,

rate of return on your bond  = 11.29 %

the inflation rate  = 4.6 %

real rate of return = ?

rate of return = (\dfrac{1+ return\ rate}{1 + inflation }-1)\times 100

rate of return = (\dfrac{1+ 0.1129 }{1 + 0.046 }-1)\times 100

rate of return = (\dfrac{1+ 0.1129 }{1 + 0.046 }-1)\times 100

rate of return = (\dfrac{1.1129}{1.046 }-1)\times 100

                    = 6.39 %

the real rate of interest of  6.39 %

5 0
3 years ago
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