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

While JIT systems have many benefits, they:______.

Fiesta28 [93]

Answer:

Option A

Make the logistics function more complicated

Explanation:

The JIT inventory system refers to the Just In Time inventory system.

The just-in-time (JIT) inventory system is a management strategy where warehousing of parts is minimum. Rather, the raw material supply is aligned accurately with the production schedule of a particular good.

For example, in car production, the various car parts are supplied by various manufacturers at just the right time so they can be assembled to make up the car in the assembly line. The car assembly companies may not necessarily have to store raw materials in their ware house since the raw materials arrive "Just in time".

However, aligning the supply of raw materials accurately with production time, is a complicated task especially when a lot of manufacturers are involved and can need to plant down time if care is not taken. This makes the logistics function more complicated.

5 0

2 years ago

Read 2 more answers

The manager of your company's pension fund is compensated based entirely on fund performance; he earned over $1.2 million last y

Anon25 [30]

Answer:

The compensation to the fund manager is based on the performance of the pension fund. If the fund performs well and earns significant profit, then the compensation to the mangers should increase.

If it incurs losses, then the argument for capping the compensation of funds managers will gain ground. Note that the manager is being paid according to the pay-for-performance scheme. Thus it is unjustified that his compensation is reduced when there is no significant evidence that his performance was responsible for the poor performance of the fund. The manager has earned over $1.2 million last year. Hence fixing the compensation of managers to $100,000 should be considered only when the fund has under performed drastically. Without such evidence, such capping will only demoralize them and the profitability of the company will fall.

Explanation:

8 0

2 years ago

When the Shaffers had a monthly income of $4,000, they usually ate out 8 times a month. Now that the couple makes $4,500 a month

choli [55]

Explanation:

Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income

-Percentage change in Q:

%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25

-Percentage change in Income:

%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125

IED= 0.25/0.125= 2

This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.

2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.

5 0

2 years ago

Read 2 more answers

Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization

Tom [10]

Answer:

The appropriate solution is "$2.91". A further explanation is given below.

Explanation:

Seems that the given question is incomplete. Below is the attachment of the full problem.

According to the question,

Common dividend,

= 509.83

Shares outstanding,

= 175

Now,

The dividend per share will be:

= $\frac{Common \ dividend}{Shares \ outstanding}$

On substituting the values, we get

= $\frac{509.83}{175}$

= $2.9133$

or,

= $2.91$

8 0

1 year ago

Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its

grigory [225]

Answer:

Interest expense = $800,000

Explanation:

Given:

Net income = $13,000,000

EBIT = $20,800,000

Tax rate = 35% = 0.35

Find:

Interest expense

Computation:

Net income= (EBIT - Interest expense) × ( 1-tax rate)

$13,000,000 = [$20,800,000 - Interest expense][1-0.35]

20,000,000 = [$20,800,000 - Interest expense]

Interest expense = $800,000

4 0

1 year ago