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2 years ago

Assuming that a periodic inventory system is used, what is the amount allocated to ending inventory on a LIFO basis

Business

1 answer:

Pani-rosa [81]2 years ago

5 0

The amount allocated to ending inventory is $3664.

LIFO is an inventory method that means last in, first out. It means that it is assumed that the latest inventory that is sold, is the first to be sold. Ending inventory is made up of inventory that is purchased eelier.

Total inventory sold = 40 + 26 = 68 units
Sum of total inventory bought and beginning inventory = 10 + 60 + 30 = 100
Ending inventory = 100 - 68 = 32
Value of ending inventory = (22 x $112) + (10 x $120)

$2464 + $1200 = $3664

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3 years ago

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a

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Answer:

Instructions are below.

Explanation:

Giving the following information:

Schell has a total of $39,060 in overhead.

Direct labor hours:

Standard= 400

Deluxe= 200

Machine hours:

Standard= 4,150

Deluxe= 3,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

1) Direct labor hours as allocation rate

Estimated manufacturing overhead rate= 39,060/600= $65.1 per direct labor hour

Now, we can allocate to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Standard= 65.1*400= $26,040

Deluxe= 65.1*200= $13,020

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Estimated manufacturing overhead rate= 39,060/7,150= $5.46 per machine hour

Now, we can allocate to each product line:

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3 years ago

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Answer:

Explanation:

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2 years ago

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Answer:

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Explanation:

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3 years ago

Fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract. This year, he began receiving a $1,300 month

marusya05 [52]

Answer: $1091.61

Explanation:

From the question, we are told that fifteen years ago, Mr. Fairhold paid $50,000 for a single-premium annuity contract and that this year, he began receiving a $1,300 monthly payment that will continue for his life and based on his age, he can expect to receive $312,000. The amount of each monthly payment is taxable income to Mr. Fairhold goes thus:

Based on the question, Mr Fairhold will have a tax free return of the $50,000 paid. The exclusion ratio will be the investment divided by the expected return. This will be:

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= 0.1603

Since he received monthly payment of $1,300 and exclusion ratio is 0.1603, the tax free return on investment will be:

= $1,300 × 0.1603

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Taxable annuity payment will now be:

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= $1091.61

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2 years ago