BUSINESS COLLEGE

Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each month, as if it uses a periodic inventory system. Assume Oahu Kiki’s records show the following for the month of January. Sales totaled 310 units.Date Units Unit Cost Total Cost
Beginning Inventory January 1 220 80 $17,600
Purchase January 15 310 90 27,900
purchase January 24 270 110 29,700

Calculate the number and cost of goods available for sale.

Answers

Answer 1
Answer:

Answer:

Number = 1,490

Cost of goods available for sale = $75,200

Explanation:

Computing the number as:

Number = (Beginning inventory + Purchases + Purchases) - Sales

Number = (1,220 + 310 + 270) - 310

Number = 1,800 - 310

Number = 1,490

Computing the cost of goods available for sale as:

Cost of goods available for sale = Total cost of beginning inventory + Total Cost of purchase + Total Cost of purchase

Cost of goods available for sale = $17,600 + $27,900 + $29,700

Cost of goods available for sale = $75,200

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Which one of the following statements is TRUE?(A) One tool of corporate governance is choosing a good investment banker.
(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
(C) One tool of corporate governance is a company's tax avoidance strategy.
(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
(E) One tool of corporate governance is stock repurchases.

Answers

Answer:

Correct Answer is "A"

(A) One tool of corporate governance is choosing a good investment banker.

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b) religion.
c) race.
d) color.
e) political preference.

Answers

Answer: Political Preference

Explanation: You cannot judge anyone based on their political views.

Aggregate Planning is a. the activity of developing a plan that combines the efforts of the firm and its suppliers. b. the activity of developing a plan that combines the efforts of the firm and its distributors. c. the activity of matching supply of output with demand over the medium time range. d. the activity of matching supply of output with demand over the short time range. e. All of the above.

Answers

Answer:

C. the activity of matching supply of output with demand over the medium time range.

Explanation:

Aggregate Planning is the activity of matching supply of output with demand over the medium time range through the use of information gotten from the inventory levels.

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Hence, aggregate planning is an attempt to forecast consumer demands within the criteria set by product, production process and distribution methods i.e within the intermediate range of its capacity.

True or false:If the owners of Six Flags over Texas want to know where the amusement park's patrons are coming from, they could send an employee out to collect the state names from the license plates of cars parked in the Six Flags' parking lot. This is an example of the observational method of gathering marketing research.

Answers

Answer: True i think

Explanation:

Transfer Pricing, Idle Capacity Mouton & Perrier, Inc., has a number of divisions that produce liquors, bottled water, and glassware. The Glassware Division manufactures a variety of bottles that can be sold externally (to soft-drink and juice bottlers) or internally to Mouton & Perrier's Bottled Wat Division. Sales and cost data on a case of 24 basic 12-ounce bottles are as follows Unit selling price Unit variable cost Unit product fixed cost* Practical capacity in cases $350,000/500,000 During the coming year, the Glassware Division expects to sell 390,000 cases of this bottle. The Bottled Water Division currently plans to buy 100,000 cases on the outside market for $2.95 each. Ellyn Burridge, manager of the Glassware Division, approached Justin Thomas, manager of the Bottled Water Division, and offered to sell the 100,000 cases for $2.89 each. Ellyn explained to Justin that she can avoid selling costs of $0.12 per case by selling internally and that she would split the savings by offering a $0.06 discount on the usual price $2.95 $1.25 $0.70 500,000 Required 1. What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the nearest cent. per unit What is the maximum transfer price that the Bottled Water Division would be willing to pay? Round to the nearest cent. per unit Should an internal transfer take place? Yes What would be the benefit (or loss) to the firm as a whole if the internal transfer takes place? Benefit V $ 2. Suppose Justin knows that the Glassware Division has idle capacity. Do you think that he would agree to the transfer price of $2.89? No Suppose he counters with an offer to pay $2.40. If you were Ellyn, would you be interested in this price? Yes 3. Suppose that Mouton & Perrier's policy is that all internal transfers take place at full manufacturing cost. What would the transfer price be? Round to the nearest cent. per unit

Answers

Answer:

1.a- The minimum transfer price will be the marginal cost of the unit thus, the variable cost of 1.25

1.b- the maximum transfer price should be the market price as the company cannot price the units above this cost.

2.a- No as it is including a fixed cost component which is already incurred(sunk cost)

2.b- Yes I will as it is above the 1.25 variable cost which is the cost the division will face to produce the units

3.- full manufacturing cost will include the fixed cost therefore:

  1.25 variable cost

+ 0.70 fixed cost

  1.95 manufacturing cost

Explanation:

Final answer:

The Glassware Division would accept a minimum transfer price of $1.37 (variable cost plus saved selling costs). The Bottled Water Division would pay up to the external market price of $2.95. An internal transfer is feasible and profitable if the transfer price is within this range. Understanding idle capacity, the Glassware Division might still accept Justin's counteroffer of $2.40, which covers their variable costs.

Explanation:

The minimum transfer price that the Glassware Division would be willing to accept is the unit variable cost of $1.25 plus the saved selling costs of $0.12, equating to $1.37 per unit. The Bottled Water Division would be willing to pay at most the external market price of $2.95 per unit. An internal transfer should take place if the transfer price falls within this range.

Knowing the Glassware Division has idle capacity, Justin might agree to a transfer price of $2.89. However, even if Justin counters with an offer of $2.40, Ellyn might still be interested because this price covers their variable cost, contributes towards fixed costs, and utilizes idle capacity.

If all internal transfers take place at full manufacturing costs, the transfer price would be the sum of the unit variable cost ($1.25) and unit product fixed costs ($0.70), totaling $1.95 per unit. Transfer pricing decisions affect a firm's profitability and operations, and should carefully consider the interests of both divisions.

Learn more about Transfer Pricing here:

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Under the periodic inventory system: a. inventory records are updated immediately after each purchase.
b. inventory must be counted at the end of each accounting period.
c. inventory does not have to be counted. (It can be taken from the accounting records.)
d. inventory levels must be counted every day.

Answers

Answer:

The correct answer is letter "B": inventory must be counted at the end of each accounting period.

Explanation:

The Periodic Inventory System is an approach of keeping track of the inflows and outflows of the inventory of a company after determined periods. Starting the year, companies using this inventory method count the number of items in their inventory which will vary during the course of a period and by the end of it another count is made to find out the difference between the starting and ending inventory. The calculation helps to find out the Cost of Goods Sold by the firm (COGS).
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