By using the FIFO Method the Closing inventory is $3,519. The cost of goods sold is $18,786. The sales revenue is $27,279, and the gross profit is $8,493.
Closing Inventory:
Ending inventory = 69 units * $51 (unit cost from the last purchase) = $3,519
Cost of Goods Sold:
The cost of goods sold will be the cost of the inventory that was sold during the year. Since the inventory is allocated based on the FIFO method, we start by using the units from the beginning inventory, then from the April 7 purchase, and finally from the July 16 purchase.
a. From the beginning inventory (53 units):
Cost of goods sold = 53 units * $45 (unit cost from the beginning inventory) = $2,385
b. From the April 7 purchase (133 units):
Cost of goods sold = 133 units * $47 (unit cost from the April 7 purchase) = $6,251
c. From the July 16 purchase (247 units):
Since the total number of units from the July 16 purchase (203 units) is greater than the remaining units needed (433 - 53 - 133 = 247 units), we will use all the units from this purchase.
Cost of goods sold = 203 units * $50 (unit cost from the July 16 purchase) = $10,150
Total cost of goods sold = $2,385 + $6,251 + $10,150 = $18,786
Sales Revenue:
Sales revenue = 433 units * $63 (selling price) = $27,279
Gross Profit:
Gross profit = Sales revenue - Cost of goods sold
Gross profit = $27,279 - $18,786 = $8,493
Therefore, using the FIFO method, the ending inventory is $3,519, the cost of goods sold is $18,786, the sales revenue is $27,279, and the gross profit is $8,493.
Learn more about the FIFO method here:
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Answer:
Option c. 0.73
Explanation:
Data provided in the question:
Market value of securities = $5,000
Current beta of the portfolio = 1.28
Beta of the riskiest security = 1.75
Required beta = 1.15
Now,
let the beta of the other security be 'x'
Portfolio beta = weighted average of individual betas in the portfolio
or
1.28 × 8 × $5000 = [ x × (8 - 1) × $5000 ] + [ 1.75 × $5000 ]
or
$51,200 = $35,000x + $8750
or
$35,000x = $42,450
or
x = 1.21
Thus,
If she wishes to reduce the beta to 1.15, by replacing the riskiest security,
let the beta of the replacement security be 'y'
Therefore,
1.15 × 8 × $5000 = [ 1.21 × (8 - 1 ) × $5000 ] + [ y × $5000 ]
or
$46,000 = $42,350 + $5,000y
or
$5,000y = $3,650
or
y = 0.73
Hence,
Option c. 0.73
Answer:
Debit Credit
June 10 Accounts Receivables $8400
Merchandise $8400
June 12 Merchandise $500
Accounts Receivables $500
June 19 Cash 7663
Discount 237
Accounts Receivables $7900
Explanation:
The transactions in Cullumber's books include sales revenue, accounts receivable, sales returns and allowances, and finally a cash entry alongside sales discounts when Marin pays the balance due.
The transactions on the books of Cullumber Company would be recorded as follows:
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Answer:
8.7
Explanation:
Sales = $93,000,000
Gross profit margin = 45%
Gross profit= 45%*93,000,000 = $41,850,000
Gross profit = sales - cost of goods sold
Cost of goods sold = Gross profit + sales = 41,850,000 + 95,000,000 = $53,150,000
Inventory turnover = cost of goods sold/inventory
Inventory = $52,250,000/6.3= $8,436,508
Given:
Total Inventory = $8,436,508
Unsalable items = $2,300,000
We have the formula:
Good inventory = Total Inventory - Unsalable items = $8,436,508 - $2,300,000 = $6,136,508
The inventory turnover ratio the good inventory must maintain in order to achieve an overall turnover ratio of at least 6.3 (including the unsalable items) is
53,150,000/6,136,508 = 8.7
Answer:
The correct answer is the option B: magazines.
Explanation:
To begin with, in the case where the manager is looking for an advertising that has the characteristics of being medium and that worked for segmented audiences, with prestige and long shelf life then the correct option will be to choose a magazine that properly accomplish with the particularities of the case. The magazine will be targeted to one audience to the fact that it can not include all the topics that are in trend nowadays. Moreover, the magazine will also be of prestige in the case where it has several years in the industry and its name means something in the market. Therefore that a magazine will accomplish with all the characteristics that the advertiser is looking for.
Answer: The mixed cost is the employees compensation since it consist of both the flat salary which is fixed and the commission that is variable.
Explanation:
A mixed cost is a cost that is made up of a fixed cost and a variable cost. It is vital to understand the mix of these costs in order to forecast how the costs will be altered with various levels of activity.
As there is an increase in the mixed cost item, the fixed cost component will not change but the variable cost component will rise. Likewise, if there's a reduction in the mixed cost item, the fixed cost remains the same since it doesn't varies but the variable cost reduces. The formula for this relationship is:
Y = a + bx where
Y = Total cost
a = Total fixed cost
b = Variable cost per unit of activity
x = Number of units of activity
The mixed cost in the question is the employees compensation since it contains a flat salary which is a fixed cost and a commission which is the variable cost. The flat salary does not vary while the commission varies with the employees output.
Options I, III, and IV are examples of mixed costs because they include both fixed and variable components.
The correct answer is I, III, and IV. These options represent examples of mixed costs, which are costs that include both fixed and variable components.
I. A building that is used for both manufacturing and sales activities is an example of a mixed cost because it incurs both fixed costs (such as rent) and variable costs (such as utilities).
III. Depreciation that relates to five different machines is also a mixed cost because it includes fixed costs (such as the initial purchase cost) and variable costs (such as ongoing maintenance and repairs).
IV. Maintenance cost that must be split between sales and administrative offices is another example of a mixed cost because it includes both fixed costs (such as regular maintenance) and variable costs (such as the specific repairs needed).
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Demand of ice-cream must increase in the summer.
There is no free lunch.
One must give up something in order to obtain something else.
Answer:
D
Explanation:
A trade-off occurs when we make a choice that benefits us, but to acquire that benefit, we also have to give up something of value. Further explore the definition of trade-offs in economics, understand the concepts of opportunity costs and sacrifices, and recognize the importance of making trade-offs in a strategic manner that uses resources wisely.