Perpetual inventory system adjusts for each change caused by a purchase, a sale, or a return of merchandise.
A computerized point-of-sale system that continuously records inventory changes in real time, known as perpetual inventory, eliminates the need for manual inventory inspections. It properly reflects the quantity of goods on hand and offers a very detailed view of changes in inventory along with immediate reporting of the amount of inventory in stock.
With this approach, a business makes no effort to maintain thorough records of the products it has on hand; instead, purchases are noted as debits to the inventory database. In actuality, aspects like direct labor and material expenses and direct factory overhead costs are included in the cost of goods sold.
A periodic inventory system, by which a business keeps track of its inventory by routine physical counts, is set apart from a perpetual inventory system.
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Government officials have hired your consulting firm to encourage more people to use the theater . In the initial meeting, you discussed several options for increasing demand. Three suggestions are listed below. Based on your knowledge of the law of demand, what is your recommendation for each suggestion?
Suggestion 1: Reduce the price of public transportation
Choose one:
a. Not recommend
b. Recommend
Suggestion 2: Increase the prices of private transportation by increasing the price of parking and gasoline
Choose one:
a. Not recommend
b. Recommend
Suggestion 3: Offer monthly and yearly passes that reduce the price per ride
Choose one:
a. Not recommend
b. Recommend
Answer:
Suggestion 1: Not Recommended
Suggestion 2: Recommended
Suggestion 3: Not Recommended
Explanation:
The law of demand says that the increase in the price of the commodity will result in decrease in the utility derived from that product and as a result the consumption of the product falls.
So by keeping the law of demand in view, we can say that the:
Reduction in price of public transportation is not recommended because every transporter will start investing in public transport and we will have higher number of buses per person.The increase in the price of parking and gasoline is recommended as the increase in parking fees and gasoline cost will discourage people to buy private transportation.Offer of monthly and yearly passes to reduce the price per ride is not recommended as it encourages the cyclists to travel via bus. Hence it is not recommended.1. The most common definition of appraisal is:
Answer:
development of an opinion of market value.
Explanation:
As defined in USPAP, an appraisal is the act or process of developing an opinion of value. The valuation process is a systematic procedure the appraiser follows to answer a client's question about real property value. The most common type of appraisal assignment is the development of an opinion of market value.
Answer:
An appraisal is a valuation of property, such as real estate, a business, collectible, or an antique, by the estimate of an authorized person. ... Appraisals are typically used for insurance and taxation purposes or to determine a possible selling price for an item or property.
Explanation:
Hope this helps,
Have a splendiferous day!
The federal government has enacted laws which allow you to ______.
a.
Apply for credit cards without revealing personal information
b.
Establish a personal identity lockbox to protect your information
c.
Restrict the way your personal information is shared.
d.
None of the above
The federal government has enacted laws which allow to restrict the way your personal information is shared. Therefore option (C) is correct.
What is Federal Government?Federal Government refers to the division of the power among the legislative, executive and judicial. The U.S. Constitution gives the Congress, President, and Federal courts specific powers.
The ability to limit the sharing of personal information is permitted under legislation that the federal government has passed. Therefore, choice (C) is the right one.
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Can you think of other ways ethics and corporate social responsibility information could be communicated in an engaging way?
An objective tone that isn't overly self-congratulatory or promotional is the best strategy for CSR communications. In your communications, be sincere and fair. That entails spreading more than simply good news.
What ethical and socially responsible practices do firms display?A firm can embrace social responsibility in a number of ways, including giving, encouraging volunteerism, using ethical hiring procedures, and making changes to the environment. For instance, businesses trying to minimize their environmental impact would try to cut back on waste and carbon emissions.
How are business ethics and corporate social responsibility related?Therefore, corporate social responsibility (CSR) is more focused on the corporation (or organization) and its obligations and behavior to other stakeholders in the larger social system, as opposed to business ethics, which is more focused on the role and responsibilities of managers and employees as business agents.
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A firm is producing the allocatively efficient level of output if? A.)total revenue is equal to total cost b.) marginal revenue is equal to marginal cost c.) price is equal to average total cost d.) price is equal to marginal cost e.) price is equal to total cost
A firm is producing the allocatively efficient level of output if b.) marginal revenue is equal to marginal cost.
When is a firm producing at allocative efficiency ?When supply and demand are in balance, the cost of a given supply exactly matches the demand for the commodity. This is the state of allocative efficiency. When a product's marginal cost, price, or marginal benefit are identical (P = MC), allocation efficiency is attained.
Price and marginal cost of production are identical in a market with perfect competition. Consider the cost of a good as a measurement of the societal benefit obtained for that commodity; after all, a buyer's willingness to pay indicates the value of a good to them.
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PATTYCAKE PATTYCAKE PASTAMAN, GIMME PASTA POWER AS FAST AS U CAN
Answer:
Roll it, put in the oven for me and you
Explanation:
Please help with below question
A bond has $10,000 face value and 10 years to maturity. The bond promises to pay a coupon of $1,000. The bond interest is paid annually. The interest rate for similar bonds is 12%.
Required: Determine the following:
A. What is the bond’s terminal value
B. Determine the coupon rate
C. What is the maturity period
D. What is the yield to maturity
E. Determine the value of the bond
A. Terminal value: $10,000.
B. Coupon rate: 10%.
C. Maturity period: 10 years.
D. Yield to maturity: Approximately 12%.
E. Bond value: The sum of the present value of coupon payments and the present value of the face value at maturity.
A. The bond's terminal value is equal to its face value, which is $10,000. This represents the amount that the bondholder will receive at maturity.
B. To determine the coupon rate, we divide the annual coupon payment by the face value of the bond and multiply by 100%. In this case, the annual coupon payment is $1,000 and the face value is $10,000.
Coupon Rate = ($1,000 / $10,000) * 100% = 10%
C. The maturity period of the bond is given as 10 years. This means that the bond will reach its full term and the bondholder will receive the face value of $10,000 at the end of the 10-year period.
D. The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. It is the internal rate of return (IRR) of the bond's cash flows. Calculating the YTM requires finding the discount rate that equates the present value of the bond's cash flows to its current market price. In this case, the bond's coupon payments are $1,000 per year for 10 years, and the terminal value is $10,000.
Using a financial calculator or spreadsheet software, we can find that the yield to maturity is approximately 12%.
E. To determine the value of the bond, we need to calculate the present value of the bond's future cash flows. The cash flows consist of the annual coupon payments of $1,000 and the terminal value of $10,000. We discount these cash flows back to the present using the yield to maturity as the discount rate.
Using a financial calculator or spreadsheet software, we can calculate the present value of the cash flows. The value of the bond is the sum of the present values of the coupon payments and the present value of the terminal value.
Assuming a 12% yield to maturity, we find that the value of the bond is approximately $10,000, which is equal to its face value. This indicates that the bond is trading at par value, as the market price matches its face value.
It's important to note that bond valuation can be more complex when considering factors such as market conditions, risk, and different compounding periods for coupon payments. The provided calculation assumes an annual coupon payment and a simple discounting method using the yield to maturity as the discount rate.
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what is asset and liability management
Answer: Asset and liability management (ALM) is a crucial process or strategy that involves effectively managing assets and cash flows to fulfill obligations and minimize risks caused by any mismatch between assets and liabilities. This technique is utilized for financial planning, asset allocation, and regulatory and capital framework adjustments. Additionally, ALM can significantly impact the profitability, efficiency, and indexation of organizations or funds. Essentially, ALM is a risk management approach that helps financial institutions minimize risk and maximize profits by managing their assets and liabilities. It guarantees that the institution has sufficient cash readily available to meet its obligations as they arise.
Explanation:
Develop a managerial report (1,000-1,250 words) summarizing your analysis of the OEI service capabilities. Make recommendations regarding the number of technicians to be used when OEI reaches 20 and then 30 customers, and justify your response. Include a discussion of the following issues in your report:
What is the arrival rate for each customer?
What is the service rate in terms of the number of customers per hour? (Remember that the average travel time of 1 hour is counted as service time because the time that the service technician is busy handling a service call includes the travel time in addition to the time required to complete the repair.)
Waiting line models generally assume that the arriving customers are in the same location as the service facility. Consider how OEI is different in this regard, given that a service technician travels an average of 1 hour to reach each customer. How should the travel time and the waiting time predicted by the waiting line model be combined to determine the total customer waiting time? Explain.
OEI is satisfied that one service technician can handle the 10 existing customers. Use a waiting line model to determine the following information: (a) probability that no customers are in the system, (b) average number of customers in the waiting line, (c) average number of customers in the system, (d) average time a customer waits until the service technician arrives, (e) average time a customer waits until the machine is back in operation, (f) probability that a customer will have to wait more than one hour for the service technician to arrive, and (g) the total cost per hour for the service operation.
Do you agree with OEI management that one technician can meet the average 3-hour service call guarantee? Why or why not?
What is your recommendation for the number of service technicians to hire when OEI expands to 20 customers? Use the information that you developed in Question 4 (above) to justify your answer.
What is your recommendation for the number of service technicians to hire when OEI expands to 30 customers? Use the information that you developed in Question 4 (above) to justify your answer.
What are the annual savings of your recommendation in Question 6 (above) compared to the planning committee's proposal that 30 customers will require three service technicians? (Assume 250 days of operation per year.) How was this determination reached?
The purpose of this research is to examine the service proficiency of OEI and suggest suitable staffing levels for accommodating a growing clientele of 20 and 30.
1. Arrival Rate for Each Customer: 1.25 customers per hour.
2. Service Rate in Terms of Customers per Hour: 1/3 customers per hour.
3. Travel Time and Waiting Time: The waiting time starts from the moment the customer contacts OEI until the machine is back in operation, including both travel and repair time.
What is the managerial report1. Arrival Rate for Each Customer: 1.25 customers per hour.
Based on historical data, the arrival rate for each customer is calculated by dividing the total number of customers by the total time. let us say that OEI receives an average of 10 customers per day, and the service operates for 8 hours a day. So, the arrival rate per customer is:10 customers / 8 hours
= 1.25 customers per hour.
2. Service Rate in Terms of Customers per Hour: 1/3 customers per hour.
The service rate takes into account the time required to complete a repair, including travel time. OEI estimates that each service call takes approximately 1 hour for travel time and 2 hours for the actual repair. So, the service rate is:1 customer / 3 hours
= 1/3 customers per hour.
3. Travel Time and Waiting Time:
OEI is different from traditional waiting line models since service technicians need to travel an average of 1 hour to reach each customer. In this case, the travel time and waiting time predicted by the waiting line model should be combined to determine the total customer waiting time.Learn more about managerial report from
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What are some solutions for schools to fix the problem of too much work/homework given by teachers
they could give out less homework
give out weekly packets instead of a lot of daily work
only do necessary work
do more work in class
give homework every 2 weeks
or stop giving homework all together
Another name for back rushing is?
Answer:
Ruffing
Hope this helps!!!
A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.
Answer:
B
Explanation:
Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.
Does the marginal cost of a production increase?The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.
What occurs when a company's marginal cost increases?They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.
Why eventually does marginal cost increase with output?As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.
When output declines, what happens to the marginal cost?At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.
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1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.
1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.
This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.
In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
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changes affecting product management
Due to numerous changes in the business environment, product management is a dynamic profession that is always changing.
Product management has been profoundly affected by technological advancements including artificial intelligence (AI), machine learning, the Internet of Things (IoT), and data analytics.
Agile and lean processes are replacing conventional product development techniques in the business. Customers' demands are always changing. Customers today want seamless, individualized, and user-centric experiences across several channels.
Businesses now place a high focus on being customer-centric. Product managers are supposed to represent the interests of users inside the organization, speak out for user demands, and match product strategy to user value.
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What discount rate would you use to discount the cash flows from the project? Does this adequately capture the risk of investing in Brazil?
Answer: You need more information to answer this question correctly.
Explanation:
Based on the 1 part of the question I would say 10%. Moreover, You wouldn't want to invest in Brazil because their average amount compared to others is low.
Communication response time must be faster than in the past to succeed in the modern workplace.
True
False
Answer:
TRUE
Explanation:
Answer:
true!
Explanation:
because it is
Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus.
Assuming that we are talking about a demand and supply graph for gasoline, a decrease in price from $3.00 to $2.50 per gallon would shift the demand curve slightly to the right.
To calculate the new consumer surplus, we need to find the area under the demand curve and above the new equilibrium price of $2.50 per gallon up to the quantity demanded of 16 billion gallons. This area can be calculated as a triangle with a base of 16 billion gallons and a height of ($3.00 - $2.50) = $0.50 per gallon.The area of this triangle is 0.5 x 16 billion x $0.50 = $4 billion.Therefore, the new consumer surplus would be $4 billion, which is higher than the previous consumer surplus of $3.2 billion at the higher price of $3.00 per gallon.
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Diego Company manufactures one product that is sold for $71 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 12 Variable manufacturing overhead $ 3 Variable selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 864,000 Fixed selling and administrative expenses $ 586,000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expenses is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.
5. What is the company’s total gross margin under absorption costing?
6 What is the company’s break-even point in unit sales?
7. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 49,000 units? What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 49,000 units? Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.
Answer:
Diego Company
1. The company's total gross margin under absorption costing is:
= $802,000
2. The company's break-even point in unit sales is:
= 50,000 units
3. The company’s variable costing net operating income (loss) if it had produced and sold 49,000 units is:
= ($29,000).
4. The company's absorption costing net operating income (loss) if it had produced and sold 49,000 units is:
= ($29,000).
5. Contribution Format Segmented Income Statement
East West Total
Sales units 36,000 13,000 49,000
Sales revenue $2,556,000 $923,000 $3,479,000
Variable cost of goods sold:
Production costs 1,332,000 481,000 1,813,000 ($37 * 49,000)
Selling and admin. 180,000 65,000 245,000
Total variables $1,512,000 $546,000 $2,058,000
Contribution $1,044,000 $377,000 $1,421,000
Fixed costs:
Manufacturing 280,000 230,000 510,000
Common costs 76,000
Total fixed costs $280,000 $230,000 $586,000
Net income $764,000 $146,000 $835,000
Explanation:
a) Data and Calculations:
Selling price = $71 per unit
East West
Sales units 36,000 13,000
Production units = 54,000
Sales unit = 49,000
Variable costs per unit:
Manufacturing:
Direct materials $ 22
Direct labor $ 12
Variable manufacturing overhead $ 3
Total variable manufacturing costs = $37 per unit
Variable selling and administrative $ 5
Fixed costs per year:
Fixed manufacturing overhead $ 864,000
Fixed selling and administrative expenses $ 586,000 (West $280,000 East $230,000, and $76,000 common)
Total fixed costs = $1,450,000
Total gross margin under absorption costing:
Sales revenue $3,479,000 ($71 * 49,000)
Cost of production:
Variable costs $1,813,000
Fixed costs 864,000 2,677,000
Gross profit $802,000
Break-even point in unit sales:
Sales price = $71
Variable manufacturing cost per unit = $37
Variable selling cost per unit = $5
Total variable cost per unit = $42
Contribution margin per unit = $29
Break-even point in unit sales = FC/contribution margin
= $1,450,000/$29 = 50,000 units
Sales revenue $3,479,000 ($71 * 49,000)
Variable production costs 1,813,000 ($37 * 49,000)
Variable selling costs 245,000 ($5 * 49,000)
Total variable costs $2,058,000
Contribution margin $1,421,000
Fixed costs
Manufacturing 864,000
Selling and admin. 586,000 $1,450,000
Net operating income (loss) ($29,000)
Sales revenue $3,479,000 ($71 * 49,000)
Production costs:
Variable costs 1,813,000 ($37 * 49000)
Manufacturing 864,000
Total production costs 2,677,000
Cost of goods sold $2,677,000
Gross profit $802,000
Period costs:
Selling and administrative 831,000
Net operating income (loss) ($29,000)
nancy grant is the owner of coal bank hollow recycling, a company that specialized in collecting and recycling paper products. nancy's company uses two different recycling processes to convert newspaper, mixed paper, white office paper, and cardboard into paper pulp. the amount of paper pulp extracted from the recyclable materials and the cost of extracting the pulp differs depending on which recycling process used. the paper pulp produced from each recycling process also has different yields for the final products. nancy currently has 70 tons of newspaper, 50 tons of mixed paper, 30 tons of white office paper, and 40 tons of cardboard. she has a contract to produce 60 tons of newsprint pulp, 40 tons of packaging paper pulp, and 50 tons of print stock pulp. what is the most cost-efficient way to meet the obligations
The most cost-efficient way to meet the obligations is that which needs less resources and capital.
The most cost-efficient way to meet the obligations is to use that method which produces more pulp in less time as well as using less energy and capital on the production of pulp in order to gain more profit from the business.
If the first method uses less cost of production for the production of pulp required in the contract then as compared to the second method then the nancy should use the first method for the production of pulp required in the contract so we can conclude that the most cost-efficient way to meet the obligations is that which needs less resources and capital.
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is a place where two parties can gather to facilitate the exchange of products
A marketplace is a physical or virtual place where two parties can gather to facilitate the exchange of goods or services. It is a space where vendors or merchants come together to sell their wares, and consumers come to buy what they need. A marketplace can be found in many forms and has evolved over time to keep up with the changing nature of trade and commerce.
Traditional marketplaces are physical locations where people gather to sell goods. They have been around since ancient times and continue to exist in many parts of the world. These marketplaces are usually located in urban areas, and vendors set up their stalls or shops to sell their wares.
They may sell food, clothing, handmade crafts, or other products. People come to these marketplaces to buy what they need, socialize, and enjoy the atmosphere.Virtual marketplaces, on the other hand, are online platforms where people can buy and sell products.
These marketplaces are accessible from anywhere with an internet connection and have become increasingly popular in recent years. Popular examples of virtual marketplaces include Amazon, eBay, and Etsy.
These platforms allow vendors to reach a broader audience and sell their products worldwide.In conclusion, marketplaces are crucial for facilitating the exchange of goods and services. They have been around for centuries, and their evolution has resulted in various forms, including traditional and virtual marketplaces.
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what is your analysis on walmart financial health as of january 2021 compare to 2022
Explain why the scenario below fails to meet the definition of decentralized organizational structure.
You are asked to serve on a committee to plan the annual summer picnic. Your committee decides the menu, the location, and the entertainment. You announce the plans to everyone on Friday. On Monday, when you come to work, you notice the plans have been changed by the company CEO.
Communications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
Send out personal invitations to each employee is necessary. Brand the picnic and display posters and communications around the workplace. Consider creating a special website for the picnic.
Planning well in advanced is necessary. Arranging an office picnic is not just about using the budget and arranging things in accordance to it, its about utilizing the budget to its maximum, where it would benefit the company and employees at large.
Given below are some of the important pointers to note, when arranging an office picnic to ensure a good turnaround.
Picking the right time is essential. One should consider the organization's work schedule, employees vacation schedules. Since the picnic involves other family members and children, after work or on a weekend may be best suited.Selecting the venue that is easy to reach, avoid venues that are too far from the locality, hence reducing time spend in travel. Look for a new location each year.Using a theme for the picnic that would make it more exciting and fun especially when there are family members involved. Could be a circus or a pirate theme.Be specific about inviting immediate family members. You can provide employees with an online form, proving details of which family members would be attending, and could serve as an RSVP to plan and encourage employees to attend the eventCommunications have to be issued at least a month in advance, so you could create the excitement and prepare employees to look forward to the picnic. Ensure the communication include the broad agendas, timings and a map to reach the venue.
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THE FOLLOWING INFO IS AVAILABLE FOR BERLIN CORPORATION FOR THE YEAR ENDING 12/31/20. OTHER REVENUE/GAINS= 12700, OTHER EXPENSES/LOSSES=13300, COST OF GOODS SOLD= 156000SALES 592000, OPERATING EXPENSES= 186000, SALES RETURNS= 40000. PREPARE A STEP-BY-STEP INCOME STATEMENT. TAX RATE IS 30 PERCENT
Based on the information available for Berlin Corporation, the step - by - step income statement would be:
Berlin Corporation.
Income Statement
Sales Revenue $592,000
Less: Sales Return $40, 000
Net Sales $552, 000
Less : Cost of Goods sold ($156, 000)
Gross Profit $396, 000
Less Operating expenses: (186, 000)
Income from operations $210, 000
Other Revenue /Gains 12, 700
Other Expenses /Losses (13, 300) ( 600 )
Income before income taxes $209 ,400
Less: Income tax expense ($62, 820)
Net Income / (Loss) $146,580
What goes into an income statement?An income statement is the financial document that is used to find the amount of net income or loss that a company made in a certain period of time which is often a year or a quarter.
The main components of a net income statement are the revenue, the cost of goods sold, the gross profit, the operating expenses, and the net income.
To find the net income, subtract cost of goods sold and the operating expenses from the sales revenue.
In this case, you need to find the taxes to Berlin Corporation as well:
= Income before taxes x Income tax rate
= 209, 400 x 30%
= $62, 820
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You are risk managers of your own life (student life). Identify your loss exposures (>10), assess them and make a map
Select the correct answer.
Jackson bought a commercial vehicle for his business, Cleaners Inc., and paid by check. How will he journal this financial transaction?
O A.
Cleaners Inc. Account (debit)
Bank Account (credit)
О в.
Jackson Account (debit)
Bank Account (credit)
O c. Vehicle Account (debit)
Bank Account (credit)
O D. Vehicle Account (debit)
Cleaners Inc. Account (credit)
Answer:
D. Vehicle Account (debit)
Bank Account (credit)
Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at the end of the year, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31. Transactions Units Unit Cost a. Inventory, Beginning 350 $ 14 For the year: b. Purchase, April 11 950 12 c. Purchase, June 1 700 15 d. Sale, May 1 (sold for $42 per unit) 350 e. Sale, July 3 (sold for $42 per unit) 610 f. Operating expenses (excluding income tax expense), $18,000 Required: 1. Calculate the number and cost of goods available for sale. 2. Calculate the number of units in ending inventory. 3. Compute the cost of ending inventory and cost of goods sold under (a) FIFO, (b) LIFO, and (c) weighted average cost. 4. Prepare an income statement that shows under the FIFO method, LIFO method and weighted average method. 6. Which inventory costing method minimizes income taxes
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
This method assumes that the units to arrive first, will be sold first.
Ending Inventory = 340 x $12 + 700 x $15 = $14,580
Cost of Goods Sold = 350 x $14 + 610 x $12 = $12,220
LIFO
This method assumes that the units to arrive last, will be sold first.
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
Imagine that a certain uncle or your whom you don't often see, takes a special interest in your education and sometimes sends you money. write him a letter giving him news of your academic work
Explanation:
Dear uncle,
First of all I would like to thank you for all the attention you have given to my education, it is clear that your financial contribution has helped me a lot to achieve my academic goals, but I am proud to have in my family a person like you, who considers the education an opportunity for life and future change for me and the country.
So I come to bring you news about my college that I am sure will make you happy! In this semester I wrote a scientific article on environmental management that was highly praised by my professors and colleagues, and made me receive an invitation to present at a management and technology congress at a renowned college in the region. This topic is very relevant today and I am happy to be a disseminator of such a relevant subject.
Just as you have given me an opportunity to have a better future through studies, I will endeavor to disseminate relevant information that relates management and environmental sustainability as tools for promoting environmental responsibility in organizations, so that in the future companies will not only be profitable, be instruments that protect the environment and guarantee the quality of life of future generations.
With love,
your dear niece
based on predicted production of 48,000 units, a company budgets $600,000 of fixed costs and $492,000 of variable costs. if the company actually produces 40,000 units, the flexible budget amount of fixed costs is $600,000.
Fixed cost that will remain same as $600000 because it does not change even after the increase or decrease of the goods.
Fixed cost is the cost of a business expense that doesn't change even when there's an increase or decrease in the number of goods and services produced or sold. Fixed costs are commonly related to recurring expenses that aren't directly related to production such as rent, interest payments, and insurance. Fixed costs remain the same irrespective of the level of output. Thus the fixed cost in the flexible budget would remain the same as in the static budget. Thus the fixed costs would be $600,000. it will not change.
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Individual consumers are considered as:
communication
possible customers
competition
demographics
B. Possible customers
The number of people who have been exposed to a new advertising campaign in a sample of 500 individuals is as follows: 200 were exposed for 10 seconds, 150 were exposed for 20 seconds, and 150 were exposed for 30 seconds. Calculate the exposure distribution for this campaign.
The exposure distribution for this campaign is;Group A: 40% Group B: 30% Group C: 30%.
Exposure distribution refers to the number of times that a person views an advertisement or a piece of marketing content. This metric is significant since it helps companies to analyze the number of views for different content.
Exposure Distribution = (Number of Exposures / Total Sample Size) * 100 In this case, the total sample size is 500 people. Therefore, the number of exposures for each group is;
Group A: 200 exposures for 10 seconds
Group B: 150 exposures for 20 seconds
Group C: 150 exposures for 30 seconds.
To calculate the exposure distribution, we need to calculate the percentage of people in each group. This calculation is done using the formula given above.
For example,Group A: (200/500) * 100 = 40%Group B: (150/500) * 100 = 30%Group C: (150/500) * 100 = 30%
Therefore, the exposure distribution for this campaign is;Group A: 40%Group B: 30%Group C: 30%
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