"A" represents the new quantity demanded, while "B"

The following budget information is available for the HD Sales Company (HDC) for January: Sales $ 320,000 Freight out $ .25 per

Mamont248 [21]

Answer:

The total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

Explanation:

Computation of total budgeted selling and administrative expenses in the January pro forma income statement is shown below:

= Freight out + Sales & Admin Salaries + Advertising + Lease on Sales building + Miscellaneous selling expenses

where,

Freight out = $0.25 × 20,000 units = $5,000

Sales & Admin Salaries = 40,000 + 2% of $320,000 = $46,400

So,

The total budgeted selling and administrative expenses is

= $5,000 + $46,400 + $12,000 + $45,000 + $5,000

= $113,400

Since depreciation part is not be considered because it is a non cash expense so we don't include the depreciation cost in computation part.

Hence, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

5 0

2 years ago

Periodic inventory by three methods The beginning inventory for Midnight Supplies and data on purchases and sales for a three-mo

dybincka [34]

Answer:

1. We have:

Inventory on March 31 = $1,010,625

Cost of merchandise sold for the three-month period = $10,891,875

2. We have:

Inventory on March 31 = $881,250

Cost of merchandise sold for the three-month period = $11,021,250

3. We have:

Inventory on March 31 = $980,975.27

Cost of merchandise sold for the three-month period = $10,921,524.73

4. We have:

Details FIFO LIFO Weighted Average

$ $ $

Sales 19,875,000 19,875,000 19,875,000

Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)

Gross Profit 8,983,125 8,853,750 8,953,475

Inventory, March 31 1,010,625 881,250 980,975

Explanation:

1. Determine the inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

Note: See part 1 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system.

From the part 1 of the attached excel file, we have:

Inventory on March 31 = $1,010,625

Cost of merchandise sold for the three-month period = $10,891,875

2. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

Note: See part 2 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

From the part 2 of the attached excel file, we have:

Inventory on March 31 = $881,250

Cost of merchandise sold for the three-month period = $11,021,250

3. Determine the inventory on March 31 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.

Note: See part 3 of the attached excel file for the determined inventory on March 31 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system.

From the part 3 of the attached excel file, we have:

Inventory on March 31 = $980,975.27

Cost of merchandise sold for the three-month period = $10,921,524.73

4. Compare the gross profit and the March 31 inventories, using the following column headings.

Details FIFO LIFO Weighted Average

$ $ $

Sales 19,875,000 19,875,000 19,875,000

Cost of Goods sold (10,891,875) (11,021,250) (10,921,525)

Gross Profit 8,983,125 8,853,750 8,953,475

Inventory, March 31 1,010,625 881,250 980,975

Download xlsx

6 0

2 years ago

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May

JulijaS [17]

Answer

(a) cost per equivalent unit

Item Material Labour Overheads

Cost per EU($) 84.15 34.25 172.25

b) Total cost per equivalent = $290.65

Explanation:

The weighted average method of valuation of work in progress does not separate opening work-in progress from the newly introduced.

The cost per equivalent units using this method is computed by dividing the total equivalent units by the cost element. This repeated for each of cost element categories.

Item Material Labour Overheads

Opening WIP 36,900 61,650 299,715

Cost added 223,965 41,100 199,810

Total cost($) a 260,865 102,750 499,525

Equivalent unit b 3,100 3,000 2,900

Cost per EU($) (a/b) 84.15 34.25 172.25

Total cost per equivalent unit = 84.15 + 34.25 + 172.25

Total cost per equivalent= $290.65

8 0

1 year ago

Baldwin, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory as of January 1, 2019 1

harkovskaia [24]

Answer:

$18,500

Explanation:

The first in first out (FIFO) inventory system assumes that It is the first purchased inventory that is the first to be sold.

Total inventory sold = 175 + 50 = 225 units

The first 50 units would be taken from the beginning inventory which costs $80. Total cost of 50 units of inventory would be $80 × 50 = $4,000

This leaves 75 units of the beginning inventory.

The 175 units sold would be taken from the remaining 75 units of the beginning inventory and the 270 units purchased

75 × $80 = $6,000

100 x $85 = $8500

Total cost of goods sold = $6,000 + $8500 + $4,000 = $18,500

I hope my answer helps you

4 0

2 years ago

An osha inspector completed her inspection of a mining operation, including a walkaround and employee interviews. then the osha

Leviafan [203]

Answer:

The inspector found a violation that could cause serious injury or death.

8 0

2 years ago