Answer:
a) UNDER FIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370remaining inventory = 60 x $40 = $2,400November 24 Sale 45 units
COGS = 45 x $40 = $1,800remaining inventory = 15 x $40 = $600November 30 Purchase 160 units at $43
remaining inventory = $600 + (160 x $43) = $7,480b. UNDER LIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = 110 x $40 = $4,400 remaining inventory = (30 x $40) + (30 x $39) = $2,370November 24 Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785remaining inventory = 15 x $39 = $585November 30 Purchase 160 units at $43
remaining inventory = $585 + (160 x $43) = $7,465Under LIFO, the ending inventory is lower than under FIFO.
"First in first out" or FIFO is a method of inventory evaluation by which the process of goods buying and selling are assumed as having same chronological order.
FIFOAs per the question, if units are in inventory at two different costs, than the Cost of Goods Sold (COGS), and Inventory will be different, as per the given information:
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
Cost of Goods Sold = 90 X $39 = $3,510
Remaining inventory = (120-90) x $39 = $1,170
⇒ November 15, Purchase 140 units at $40
November 20, Sale 110 units
Cost of Goods Sold = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370
Remaining inventory = 60 x $40 = $2,400
⇒ November 24, Sale 45 units
COGS = 45 x $40 = $1,800
Remaining inventory = 15 x $40 = $600
⇒November 30, Purchase 160 units at $43
Remaining inventory = $600 + (160 x $43) = $7,480
B. Under Last in, First Out (LIFO)
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
COGS = 90 × $39 = $3,510
Remaining inventory = 30 x $39 = $1,170
⇒November 15, Purchase 140 units at $40
November 20, Sale 110 units
COGS = 110 x $40 = $4,400
Remaining inventory = (30 x $40) + (30 x $39) = $2,370
⇒November 24, Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785
Remaining inventory = 15 x $39 = $585
⇒November 30, Purchase 160 units at $43
Remaining inventory = $585 + (160 x $43) = $7,465
Hence, the results shows that the Inventory is LOWER when used Last-in, First out Method.
Learn More about LIFO here:
https://brainly.com/question/13510592
Suppose the U.S. imports cars from the UK manufacturer, McLaren. Consider an appreciation of the pound. Which of the following statements correctly describe the effects of thischange?
A. Hold all other prices constant.
B. U.S. consumers pay more dollars for each McLaren car they import from the UK.
C. McLaren supplies a greater quantity of dollars to the foreign exchange market.
D. U.S. consumers increase their purchases of McLaren cars.
E. McLaren's dollar revenues fall.
To peg the pounds per dollar exchange rate at a level higher than the market clearing exchange rate, the UK government needs to:_________.
a. buy pounds and sell dollars
b. buy dollars and sell pounds
c. simple announce a target exchange rate
Answer:
b. and a
Explanation:
Answer:
b. and
Explanation:
Remember, when foreign exchange rates between two currencies of particular country rises (appreciates), it effects is experienced most by the country whose currency hasn't risen. In this case therefore, this would make U.S. consumers pay more dollars for each McLaren car they import from the UK.
Also, to peg the pounds per dollar exchange rate at a level higher than the market clearing exchange rate, the UK government needs to buy pounds and sell dollars, because reducing the supply of pounds in the exchange market creates an opportunity for higher exchange prices.
Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $112 for the skirt:
Store Travel Time Each Way (Minutes) Price of a Skirt (Dollars per skirt)
Local Department Store 15 103
Across Town 30 89
Neighboring City 60 63
Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.
Store Opportunity Cost of Time (Dollars) Price of a Skirt (Dollars per skirt) Total Cost (Dollars)
Local Department Store 103
Across Town 89
Neighboring City 63
Assume that Juanita takes opportunity costs and the price of the skirt into consideration when she shops. Juanita will minimize the cost of the skirt if she buys it from the:_______
Answer:
Juanita should purchase the skirt at the neighboring city because the total economic cost will be lowest.
Explanation:
three options:
local store 15 minutes away and a price of $103across town 30 minutes away and a price of $89neighboring city 1 hour away and a price of $63Juanita makes $16 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:
total economic cost:
local store = $103 + [1/4 hours x 2 (round trip) x $16] + (1/2 hour x $16) = $119across town = $89 + [1/2 hours x 2 (round trip) x $16] + (1/2 hour x $16) = $113neighboring city = $63 + [1 hour x 2 (round trip) x $16] + (1/2 hour x $16) = $103Juanita should purchase the skirt at the neighboring city because the total economic cost will be lowest ($103)
Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.
Sam is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Sam must take time away from work, where he earns $10 per hour. This is in addition to paying a $5 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? The cost of something is what you give up to get it. Markets are usually a good way to organize economic activity. People usually exploit opportunities to make themselves better off. Trade can make everyone better off.
Answer:
The cost of something is what you give up to get it.
Explanation:
To partake in triathlon, Sam is forgoing the amount he would have earned if he went to work instead. This is known as the opportunity cost or implicit cost
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Sam has to pay $5 to partake in the triathlon. This amount is known as explicit cost. Explicit cost is the cost incurred in carrying out an activity.
Sam's accounting cost is $5
Sam's economic cost is $5 + $10 = $15
I hope my answer helps you
Kenrick Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts equipment expense and indirect labor to three activity cost pools Processing, Supervising and Other based on resource consumption. Data to perform these allocations appear below.
Overhead costs
Equipment expense $18,000
Indirect labor $2,000
Distribution of Resource Consumption Across activity cost pools
Activity Cost Pools
Processing Supervising Other
Equipment expense 0.10 0.30 0.60
Indirect labor 0.30 0.40 0.30
In the second stage. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products as follows.
Activity
MHs (Processing) Batches (Supervising)
Product U4 5,500 600
Product C7 4,500 1,400
Total 10,000 2,000
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
Sales and Direct Cost Data:
Product U4 Product C7
Sales (total) $58,400 $31,800
Direct materials (total) $26,900 $13,900
Direct labor (total) $25,000 $11,200
What is the product margin for Product U4 under activity-based costing?
a. $3,500
b. $6,500
c. $5,180
d. $3,320
Answer:
D.) $3320
Explanation:
Product margin = (Sales - direct labor - direct materials - overhead)
$(58400 - 26900 - 25000 - 3180) = $3,320
Check attached picture for detailed explanation
On July 8, Jones Inc. issued an $62,900, 9%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year
Answer:
The amount of interest expense recognized by Jones in the current fiscal year is $361.675
Explanation:
According to the given data Jones Inc. issued an $62,900, 9%, 120-day note payable to Miller Company On July 8, therefore if the the fiscal year of Jones ends on July 31 there 23 days between July 8 and July 31.
So, to calculate the amount of interest expense recognized by Jones in the current fiscal year we would have to make the following calculation:
Interest expense=$62,900*9%*(23/360)
Interest expense=$361.675
The amount of interest expense recognized by Jones in the current fiscal year is $361.675
Every organization needs some degree of flexibility and standardization. True False Being overly committed to following rules can harm an organization and keep it from growing. True False Every organization needs either a degree of ________ to adapt to new situations or some degree of ________ to make routine tasks and decisions as efficient and effective as possible. standardization; flexibility culture; vision flexibility; standardization structure; design
Answer:
1. True: Every organization needs some degree of flexibility and standardization.
2. True: Being overly committed to following rules can harm an organization and keep it from growing.
3. flexibility; standardization.
Explanation:
It is really important and necessary that all organization have some degree of flexibility and standardization. Every organization is expected to be flexible, in order to be able to effectively manage potential changes or challenges that arises in business. They should also be standardized, by having proper policies, strategies and structure for the purpose of running the business smoothly and efficiently.
However, if an organization is overly committed to following rules, this can cause harm to it's business operations and thereby hindering its growth and development.
Hence, some degree of flexibility is needed in every organization in order to adapt to new situations or some degree of standardization to make routine tasks and decisions as efficient and effective as possible.
Bonds payable-record issuance and premium amortization. Kaye Co. issued $1 million face amount of 11% 20-year bonds on April 1,2004. The bonds pay interest on an annual basis on March 31 each year.
Required:
a. Assume that market interest rates were slightly lower than 11% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain.
b. Independent of your answer to part a, assume that the proceeds were $1,080,000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds.
c. Calculate the interest expense that Kaye Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2004, assuming that the premium of $80,000 is amortized on a straight-line basis.
Answer:
Cash proceeds would be higher than face amount.
Bond issuance:
Dr cash $1,080,000
Cr bonds payable $1,000,000
Cr premium on bonds payable($1,080,000-$1,000,000) $80,000
$57,400
Explanation:
If the market interest rate were slightly lower than 11% coupon rate,the cash proceeds from the bonds would be higher than face amount as a lower market rate is used as a discount rate in calculating the present value,in other words,the lower the discount rate,the higher the present value as further shown below.
Assume market rate is 10.5%
cash proceeds=-pv(rate,nper,pmt,fv)
rate is 10.5%
nper is 20 years
pmt =$1,000,000*11%=$110,000
fv is $1000,000
=-pv(10.5%,20,110000,1000000)=$1,041,154.54
amortization(annually)=$80,000/20=$4000
Amortization for six months=$4,000*6/12=$2,000
coupon=$1,080,000*11%*6/12=$ 59,400.00
Interest expense=coupon -premium amortization=$ 59,400.00-$2,000.00=$57,400
A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. What is the process capability index? A) 1.20 B) 1.33 C) 1.46 D) 1.66 12. Following Q11, what is the process capability ratio? A) 1.33 B) 1.50 C) 1.66 D) 2.00
Answer:
process capability index = Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33
Explanation:
Target value = 20
mean = 19.8
standard deviation = 0.5
upper specification limit = 22
lower specification limit = 18
The process capability index =
Cpu = [tex]\frac{22- 18}{6(0.5)}[/tex] = 4 / 3 = 1.33
Cpk ( upper ) = (22 - mean ) / 3 * std
= ( 22 - 19.8 ) / ( 3 * 0.5 ) = 2.2 / 1.5 = 1.47
Cpl ( lower ) = ( mean - 18 ) / ( 3 * 0.5 ) = ( 19.8 - 18 ) / 1.5
= 1.8 / 1.5 = 1.2
hence the process capability index is Capability index with the minimum value which is Cpl ( lower ) = 1.20 ( A )
The process capability ratio = 1.33 refer to Cpu equation
Job costing, unit cost, ending work in process. Rowan Company produces pipes for concert-quality organs. Each job is unique. In April 2016, it completed all outstanding orders, and then, in May 2016, it worked on only two jobs, M1 and M2: A B C 1 Rowan Company, May 2016 Job M1 Job M2 2 Direct materials $ 75,000 $ 56,000 3 Direct manufacturing labour 275,000 209,000 Direct manufacturing labour is paid at the rate of $25 per hour. Manufacturing overhead costs are allo- cated at a budgeted rate of $22 per direct manufacturing labour-hour. Only Job M1 was completed in May. Required: 1. Calculate the total cost for Job M1. 2. 1,600 pipes were produced for Job M1. Calculate the cost per pipe. 3. Prepare the journal entry transferring Job M1 to finished goods. 4. What is the ending balance in the Work-in-Process Control account?
Answer:
1. The total cost for Job M1 is $592,000
2. Cost per unit is $370
3. Journal
Finished goods inventory 592,000
Work in process inventory 592,000
4. Ending balance in Work-in-Process Control account is $448,920
Explanation:
A B C
1) Rowan Company, May 2016 Job M1 Job M2
2) Direct materials $ 75,000 $ 56,000
3) Direct manufacturing labour 275,000 209,000
Direct manufacturing labour is paid at the rate of $25 per hour
Manufacturing overhead costs are allocated at a budgeted rate of $22 per direct manufacturing labour-hour
1. Direct labor rate = $25 per hour
Direct labor hours used on Job M1 = Direct manufacturing labor ÷ Direct labor rate
= 275,000 ÷ 25
= $ 11,000
Manufacturing overhead applied to Job M1 = Direct labor hours used on Job M1 x 22
= $11,000 x 22
= $242,000
Job cost sheet (Job M1)
Direct material = $75,000
Direct labor = $275,000
Overhead applied = $242,000
Total cost = $592,000
2. Cost per unit = Total cost ÷ Number of units
= 592,000 ÷ 1,600
= $370
3. Journal
Finished goods inventory 592,000
Work in process inventory 592,000
4. Direct labor hours used on Job M2 = Direct manufacturing labor/Direct labor rate
= 209,000 ÷ 25
= $8,360
Manufacturing overhead applied to Job M2 = Direct labor hours used on Job M2 x 22
= $8,360 x 22
= $183,920
Job cost sheet (Job M2)
Direct material = $56,000
Direct labor = $209,000
Overhead applied = $183,920
Total cost = $448,920
Ending balance in work in process control account = $448,920
American Corporation has the following financial information. Year 1 Year 2 Cash $ 202.95 $ 245.90 A/R 398.02 485.34 Inventory 785.12 648.54 If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount
Answer: The answer is given below
Explanation:
Since Year 1 has been given as the base year, the percentage change will be:
(Year 2 - Year 1)/Year 1 × 100
Cash:
= (245.90 - 202.95)/202.95 × 100
= 42.95/202.95 × 100
= 0.21 × 100
= 21% Increase
A/R:
= (485.34 - 398.02)/398.02 × 100
= 87.32/398.02 × 100
= 0.22 × 100
= 22% Increase
Inventory:
= (648.54 - 785.12)/785.12 × 100
= -136.58/785.12 × 100
= -0.17 × 100
= 17% decrease