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2 years ago

Below is budgeted production and sales information for Octofic Cans Inc. for the month of March:

Business

2 answers:

Dahasolnce [82]2 years ago

7 0

Answer:

The Budgeted sales for the month are 108,000 units. The right answer is b.

The true answer is c. Unit variable cost remains constant with changes in production

Explanation:

In order to calculate the Budgeted sales for the month we would have to calculate the following formula:

Budgeted sales= Estimated sales + Desired ending inventory - Beginning inventory

= (85,000+25,000)+4,000 - 6,000

= 108,000 units

The Budgeted sales for the month are 108,000 units

Variable cost per unit remains same even though there's a change in output. Hence, Unit variable cost remains constant with changes in production.

Murljashka [212]2 years ago

5 0

Answer: 108,000 ; Unit variable cost remains constant with changes in production

Explanation:

The sales budget is part of the main budget and it is used to predict the amount of revenue that will be gotten from sales of a particular good or services. For this question, the budgeted sales for the month will be the estimated sales added to the desired ending inventory, then the beginning inventory is subtracted. This will be:

= (85,000+25,000) + 4,000 - 6,000

= 110,000 + 4,000 - 6,000

= 108,000

The thing true about the variable cost is that the variable cost per unit will remain the same even though there is a change in output. Therefore, option C is the right answer.

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A discontinuous innovation is a product that:___________

Tamiku [17]

Answer: e. requires consumers to learn entirely new patterns of behavior and product usage

Explanation: Innovation could be described as the introduction of something new to the market, this coid be marked by changes in the working principle or implementation or modification of new product features or even a complete overhaul of previoulsy existiing functions. A Discontinous innovation can be explained as a total change or complete overhaul in the type of product produce. It is marked by having a complete difference from the previously existing versions. As such, there is a shift or change in the usage of the product which is totally different from that which exists with the previously adopted versions.

8 0

2 years ago

Read 2 more answers

Exercise 6-4A Calculate inventory amounts when costs are rising (LO6-3) [The following information applies to the questions disp

VladimirAG [237]

Answer:

1. Ending inventory = $2,408; Cost of goods sold = $16,837; Sales revenue = $22,770; and Gross profit = $5,933.

2. Ending inventory = $2,094; Cost of goods sold = $17,151; Sales revenue = $22,770; and Gross profit = $5,619.

3. Ending inventory = $2,293; Cost of goods sold = $16,952; Sales revenue = $22,770; and Gross profit = $5,818.

Explanation:

Note: This question is not complete. The complete question is therefore presented before answering the question. See the attached pdf file for the complete question.

Explanation to the answer is now presented as follows:

1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Note: See part 1 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using FIFO.

First In, First Out (FIFO) refers to an inventory accounting method in which inventory items purchased first are sold first, while the one that are purchased last are sold last.

In the attached excel file, since the inventory purchased on Oct. 6 is purchased last, the number of unit of inventory purchased on Oct. 6 sold is calculated by deducting the sum of the beginning inventory and inventory purchased before Oct. 6 from the total inventory sold as follows:

Number of unit of inventory purchased on Oct. 6 that are sold = Number of units sold - (Beginning inventory + Apr. 7 Purchases + Jul. 16 Purchases) = 414 - (45 + 125 + 195) = 49

Therefore, the number of ending inventory is obtained as follows:

Number of unit of ending inventory = Number of inventory purchased on Oct. 6 - Number of inventory purchased on Oct. 6 sold = 105 – 49 = 56

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $16,837

Ending inventory = $2,408

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,837 = $5,933

2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Note: See part 2 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using LIFO.

Last In, First Out (LIFO) refers to an inventory accounting method in which inventory items purchased last are sold first, while the one that are purchased first are sold last.

In the attached excel file, the number of unit of inventory purchased on April 7 that are sold and the ones remaining that are NOT sold that forms part of ending inventory are calculated as follows:

Number of unit of inventory purchased on April 7 that are sold = 414 – (195 + 105) = 114

Number of unit of inventory purchased on April 7 that are NOT sold = Number of unit of inventory purchased on April 7 - Number of unit of inventory purchased on April 7 that are sold = 125 – 114 = 11

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $17,151

Ending inventory = $2,094

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $17,151 = $5,619

3. Using weighted average cost, calculate ending inventory, cost of goods sold, sales revenue, and gross profit. (Round "Average Cost per unit" to 4 decimal places and all other answers to the nearest whole number.)

Note: See part 3 of the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using weighted average cost.

Weighted average cost method refers to a method of costing inventory in which the total cost of the goods available for sale is divided by the total number of units available for sales in order to obtain weighted average cost per unit.

In the attached excel file, weighted average cost per unit is therefore calculated and rounded to 4 decimal places as follows:

Weighted average cost per unit = $19,245 / 470 = $40.9468

Number of unit of ending inventory = Total number of units available for sales – Number of unit sold = 470 – 414 = 56

Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 414 * $55 = $22,770

From the attached excel file, we have:

Cost of goods sold = $16,952

Ending inventory = $2,293

Therefore, we have:

Gross profit = Sales revenue - Cost of goods sold = $22,770 - $16,952 = $5,818

Download pdf

8 0

2 years ago

Which one of the following statements is correct? A) The lessor is primarily concerned with returning the asset at the end of th

Vanyuwa [196]

Answer: E) Lessors provide a source of financing for lessees.

Explanation:

A Lease is a form of financing because in financing, an entity provides funding in the form of assets whether cash or otherwise to another entity to allow them use to operate their business. The entity that was provided with funding will then pay a periodic payment as a way to pay off the funding.

This is what happens in leases. The Lessor is the owner of the asset and they lease it to the Lessee who then uses it and pays a periodic amount to the Lessor for using the asset.

6 0

2 years ago

Merck & Company reported the following from its 2016 financial statements. $ millions 2013 2014 2015 2016 Accounts receivabl

kherson [118]

Answer:

a. Compute accounts receivable gross for each year.

2013 $7,330
2014 $6,779
2015 $6,649
2016 $7,213

b. Determine the percentage of allowance to gross account receivables for each year.

2013 1.99%
2014 2.26%
2015 2.48%
2016 2.70%

c. 2013 2014 2015 2016

adjusted allowance for $173 $160 $157 $170

doubtful accounts

Balance sheet adjustments:

allowance for doubtful accounts $27 $7 -$8 -$25

accounts receivable net $7,157 $6,633 $6,476 $6,993

deferred tax liability -$9.45 -$2.45 $2.8 $8.75

retained earnings $9.45 $2.45 -$2.8 -$8.75

Income statement adjustments:

bad debt expense $27 $7 -$8 -$25

income tax expense -$9.45 -$2.45 $2.8 $8.75

net income $9.45 $2.45 -$2.8 -$8.75

Explanation:

2013 2014 2015 2016

Accounts receivable, net $7,184 $6,626 $6,484 $7,018

Allowance for doubtful accounts $146 $153 $165 $195

four year average of allowance for doubtful accounts = (1.99 + 2.26 + 2.48 + 2.7) / 4 = 2.36%

8 0

2 years ago

You have just arranged for a $1,800,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 7.

scZoUnD [109]

Answer:

$556063.77 is the balloon payment in order to finish the loan in 8 years.

Explanation:

Firstly we will use the Present value formula annuity to find how much will we pay on a monthly basis for the 30 year mortgage loan so we are given :

Pv the present value of the mortgage is $1800000

i which is the interest rate 7.8%/12 as there will be monthly payments

is the number of payments which are 30 x 12 = 360 payments

then we substitute on the formula Pv= C[(1-(1+i)^-n) /i]

we are looking for C the monthly payments

$1800000= C[(1-(1+(7.8%/12))^-360)/(7.8%/12)] now divide by the coefficient of C both sides to solve for C

$1800000/[(1-(1+(7.8%/12))^-360)/(7.8%/12)] = C

$12957.66= C

now if the monthly payment is $12957.66 we will find how much we will pay in 8 years which will be $12957.66 x 12 x 8 = $1 243 936.23 now if this amount is covered for 8 years then the balloon payment is $1800000 - $1243936.23 = $ 556063.77 which is the remaining amount in present value terms, this is the balloon payment to finish the mortgage in 8 years.

6 0

2 years ago

Read 2 more answers