Ask question

Ask question

All categories

Law Incorporation [45]

2 years ago

14

Ayayai Corp. just began business and made the following four inventory purchases in June: June 1 195 units $1170 June 10 260 uni

ts 1820 June 15 260 units 2080 June 28 195 units 1755 $6825 A physical count of merchandise inventory on June 30 reveals that there are 260 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is $2275. $1561. $1625. $2340.

1 answer:

natulia [17]2 years ago

7 0

Answer:

$2275

Explanation:

Given: Detail of inventory purchase-

June 1 195 units at $1170

June 10 260 units at $1820

June 15 260 units at $2080

June 28 195 units at $1755

Total purchase= $6825.

Ending Inventory on June 30 are 260 units

Now, computing amount allocated to ending inventory for June by using FIFO inventory method.

First allocating inventory June 28 purchase as it is a latest entry in the books and we are using FIFO method.

∴ Inventory allocated on June 28= 195 units at the total cost of $\$1755$

Next, allocating remaining inventory from June 15 purchase.

⇒ Remaining units= $260-195= 65\ units$

∴ Remaining units to be allocated is 65 units

Cost of each unit from the purchase of June 15.

Cost of each unit= $\frac{2080}{260}$

∴ Cost of each unit for allocating remaining units= $\$ 8$

Hence, Cost of allocating remianing 65 units= $65\times \$8 = \$520$

Total amount allocated to ending inventory= $\$ 1755+\$ 520$

∴ Total amount allocated to ending inventory= $2275

Hence, the amount allocated to ending inventory for June is $2275.

You might be interested in

WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100

liq [111]

Answer:

income = $215970.5

Explanation:

given data

Wallace own = 100 share

time = 273 days ( 1 january to 30 september )

Wallace remaining share = 100 - 40 - 25 = 35 share

time remaining = 92 days ( 365 - 273 )

brother share = 25

time = 92 days ( 1 october to 31 december )

daughter share = 40

time = 92 days ( 1 october to 31 december )

ordinary income = $216000

to find out

income

solution

we find first ordinary income per share that will be

ordinary income per share = income / total share

ordinary income per share = 216000 / 100

ordinary income per share = $2160

and

ordinary income per share will be = 2160 / 365 = 5.917 per share per day

so

income of Wallace is

share ×time period × per share per day

= 100×273 × 5.917 = $161534.1 .....................1

= 35×92 × 5.917 = $19052.74 .....................2

income of brother

share ×time period × per share per day

= 25×92 × 5.917 = $13609.1 .....................3

income of daughter

share ×time period × per share per day

= 40×92 × 5.917 = $21774.56 .....................4

so now income will be by adding equation 1, 2 , 3 and 4

income = 161534.1 + 19052.74 + 13609.1 + 21774.56

income = $215970.5

4 0

1 year ago

With respect to delaying revenue recognition until completion of a long-term contract, it is the case that: Multiple Choice A) E

hichkok12 [17]

<h2>Estimated losses on the overall contract are recognized before the contract is completed. </h2>

Explanation:

Revenue recognition cannot be done prior to the completion of contract.

But the asset can be created. Only after the contract gets completed the revenue recognition can be realized.

For a long-term project, the revenue can be recognized based on the percentage of completion.

Revenue recognition keeps financial transactions aligned.

Option A: valid

Option B Invalid, because expenses are also recognized

Option C: This process is acceptable.

Option D: Gains and profits are calculated in this type of method

8 0

2 years ago

The following transactions occur for Badger Biking Company during the month of June: a. Provide services to customers on account

pentagon [3]

Answer:

The Accounting Equation is: Assets = Liabilities + Stockholders' Equity. Thus, we will see how each transaction affects liabilities, assets, or, stockholders' equity.

a. Provide services to customers on account for $32,000.

Service revenue: $32,000 to stockholders equity.

Accounts receivable: $32,000 to assets.

b. Receive cash of $24,000 from customers in (a) above.

Cash: $24,000 to assets.

Accounts Receivable: ($24,000) to assets.

c. Purchase bike equipment by signing a note with the bank for $17,000.

Equipment: $17,000 to assets.

Accounts payable: $17,000 to liabilities.

d. Pay utilities of $3,200 for the current month.

Uitlities expense: ($3,200) to stockholders equity.

Cash: ($3,200) to assets.

5 0

2 years ago

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Spa

sweet-ann [11.9K]

Answer:

E) Bright: No dominant strategy, Sparkle: Strategy 1

Explanation:

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?

Bright: No dominant strategy, Sparkle: Strategy 1

5 0

1 year ago

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The

lubasha [3.4K]

Answer:

Discounted payback period = 1.89 years

Explanation:

If Initial cost is $5,200

Year Cash flow Present value Present value Discounted

at 11% Cumulative cash flow

0 -5,200 1 -5,200 -5,200

1 2,800 0.9009 2,523 -2,677

2 3,700 0.811 3,003 326

3 5,100 0.73126 3,729 4,055

4 4,300 0.6587 2,833 6,887

Discounted payback period = 1 + (2,667/3003)

=1.89 years

Working

PV= (1+i)^-n

i= 11%, n= respective years 0,1,2,3,4

6 0

1 year ago