Answer:
Ending inventory:
(a) specific identification = $5,885
(b) weighted average = $5,960
(c) FIFO = $5,750
(d) LIFO = $5,845
Explanation:
Date Activity Units Cost Total
Oct. 1 Beg. inventory 155 $14 $2,170
Oct. 5 Purchase 180 $13.50 $2,430
Oct. 9 Sales 240
Oct. 18 Purchase 140 $13 $1,820
Oct. 29 Sales 110
Oct. 25 Purchase 330 $12.50 $4,125
total Purchases 805 $13.10 $10,545
Cost of goods sold:
(a) specific identification = [(55 x $14) + (185 x $13,50)] + [(35 x $13) + (75 x $12.50)] = $4,660
(b) weighted average = $13.10 x 350 units = $4,585
(c) FIFO = (155 x $14) + (85 x $13.50) + (95 x $13.50) + (15 x $13) = $4,795
(d) LIFO = (180 x $13.50) + (60 x $14) + (110 x $13) = $4,700
Ending inventory:
(a) specific identification = $10,545 - $4,660 = $5,885
(b) weighted average = $10,545 - $4,585 = $5,960
(c) FIFO = $10,545 - $4,795 = $5,750
(d) LIFO = $10,545 - $4,700 = $5,845
Market
Minneapolis Medical Dental
Sales $ 330,000 100 % $ 220,000 100 % $ 110,000 100 %
Variable expenses 198,000 60 % 143,000 65 % 55,000 50 %
Contribution margin 132,000 40 % 77,000 35 % 55,000 50 %
Traceable fixed expenses 39,600 12 % 11,000 5 % 28,600 26 %
Market segment margin 92,400 28 % $ 66,000 30 % $ 26,400 24 %
Common fixed expenses
not traceable to markets 9,900 3 %
Office segment margin $ 82,500 25 %
The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,400. Marketing studies indicate that such a campaign would increase sales in the Medical market by $38,500 or increase sales in the Dental market by $33,000.
Required:
Calculate the increased segment margin.for Medical:
Calculate the increased segment margin for Dental:
Answer:
Increase Segment margin for Medial = $9,075
Increase Segment margin for Dental = $12,100
Explanation:
The calculation of increased segment margin.for Medical and Dental is shown below:-
Medical Dental
Incremental Sales $38,500 $33,000
Less: Variable Cost ($25,025) ($16,500)
(Medical 65% and ($38,500 × 65%) ($33,000 × 50%)
Dental 50%)
Incremental
Contribution Margin $13,475 $16,500
Less: Traceable
Advertising Cost ($4,400) ($4,400)
Increase Segment
Margin $9,075 $12,100
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:
Given that,
Beginning capital of Coburn = $55,000
Beginning capital of Webb = $95,000
Partnership earned net income = $71,000
Coburn made drawings = $17,000
Webb made drawings = $25,000
Income-sharing ratio = 30:70
Coburn's share in profits = Net income earned × 30%
= $71,000 × 0.3
= $21,300
Webb's share in profits = Net income earned × 30%
= $71,000 × 0.7
= $49,700
Therefore, the journal entry is as follows:
Profit and loss A/c Dr. $71,000
To Coburn's capital A/c $21,300
To Webb's capital A/c $49,700
(To record the allocation of net income)
Answer:
$343,725; $200,850
Explanation:
(a) The total incremental cost of making 51,500 units is calculated as below:
Total Relevant Costs:
= Variable Cost Per Unit + Fixed Manufacturing Costs
= (Relevant Amount Per Unit × No. of units) + Fixed Manufacturing Costs
= ($5.15 × 51,500) + $78,500
= $265,225 + $78,500
= $343,725
Therefore, the total incremental cost of making 51,500 units is $343,725.
(b) The total incremental cost of buying 51,500 units is determined as below:
Total Relevant Costs = Purchase Price Per Unit × No. of units
= $3.90 × 51,500
= $200,850
Therefore, the total incremental cost of buying 51,500 units is $200,850.
(c) The company should buy the component from outside supplier as it results in a lower total incremental cost of $200,850.
Answer:
$158.40
Explanation:
For computation of amount of the cost of goods sold for this sale first we need to find out the Weighted Average Cost per unit which is shown below:-
Weighted Average Cost per unit = ((10 units × $12) + (15 units × $14)] ÷ (10 + 15)
= 330 ÷ $25
= $ 13.20 per unit
Cost of Goods Sold = Purchase per unit × Weighted Average Cost per unit
= 12 units × 13.20 per unit
= $158.40
Answer:
The measures is to get the Government in developing and shaping of contents of the e-learning software.
Explanation:
By getting the Government agent(s) or authority in the development and shaping of contents of the software, you are not only creating harmony with the local government but also ensuring that the agent helps scrutinizing the content of the software and also ensuring that the software does not contain any content that is objectionable to the government and this measure will definitely help Gerlach Publishing acquire a trade license.
To acquire a trade license in Volonia, Gerlach Publishing should adhere to local regulations, ensure their content respects societal norms, engage local legal consultants, and maintain open communication with authorities.
In light of the Volonian government's previous cancellation of trade licenses in the e-learning market due to censorship issues, the approach Gerlach Publishing should take needs to focus on compliance and transparency. This includes strict adherence to local regulation laws and ensuring non-violation of any censorship rules.
Depicting strong commitment towards promoting free and respectful dialogue in their e-learning materials could be beneficial. This can be achieved by implementing robust internal review processes to ensure all content is suitable and respects the norms and values of Volonian society.
Engaging local legal consultants to understand the nuances of Volonian law can also aid in the process. Lastly, establishing and maintaining open communication with the authorities demonstrating their dedication to lawful practices could be advantageous.
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