Which of the following statements is NOT CORRECT? a. Accruals are "free" in the sense that no explicit interest is paid on these funds. b. A conservative approach to working capital management will result in most, if not all, permanent current operating assets being financed with long-term capital. c. Bank loans generally carry a higher interest rate than commercial paper. d. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. e. The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt. This added risk stems from the greater variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt.

Answer:

  216%

Explanation:

Ordinary interest is computed on the basis of a 360-day year, so Marina's borrowing period is 1/12 of a year. The annual rate is then 12 times the rate Marina pays for 30 days:

  12 × 18/100 = 216/100 = 216%

Marina would discover the annual interest rate is 216%.

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

Answer:

b. The cable commercial

Explanation:

CPM or cost per mille is a measure used in advertising to determine how effectively a promotional message is getting to its audience. It is the cost of getting an advert in front of 1,000 people.

In this scenario when we calculate CPM for the radio station

$600 = 10,250 listeners

x= 1,000 listeners

Cross multiply

x= (600 * 1,000) ÷ 10,250 = $58.54

For the local cable commercial

$1000 = 18,500 viewers

y = 1,000 viewers

Cross multiply

y= (1,000 * 1,000) ÷ 18,500= $54.05

Answer:

I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market

I only

Explanation:

When a purchaser of insurance wants to make a purchase he analyses the market to get a favourable condition that reduces risk and loss.

The market condition can be a soft market or hard market.

Soft market is one in which potential sellers are more than potential buyers. So supply exceeds demand. Buyers are able to buy affordable insurance.

Hard market on the other hand is when there is an upswing in market cycle. Premiums increase and capacity for insurance decreases.

It is more difficult to get affordable insurance in this market

Answer: Affecting only future periods.

Explanation:

From the question, we are informed that a chain of supermarkets specializing in gourmet food, that has been using the average cost method to value its inventory changed to the FIFO method in the current year.

This change should be reported on the financial statements as a retroactive effect type of an accounting change. This is necessary because it affects future period and in order to maintain comparability and consistency.

Answer:

0.4110

Explanation:

The formula and computation of the correlation coefficient is shown below:

Correlation co-efficient = Covariance ÷ (Standard deviation of market × Standard deviation of Stock A)

where,

Covariance between the two = 0.0026

Variance of the stock A = 0.005

And, the variance of the market is 0.008

Now placing these values to the above formula

So, the correlation coefficient is

= 0.0026 ÷ (0.008 × 0.005)^0.50

= 0.0026 ÷ 0.006324555

= 0.411096096

= 0.4110

Hence, the correlation coefficient is 0.4110

Answer:

1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.

Since there is not enough room here, I prepared an excel spreadsheet. Since we are not told the credit terms of the sales, I assumed all the sales were more not past due.

2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

Of course, the balance of the accounts receivable control account should equal the total balance of the accounts receivable schedule. Even if some accounts are written off (bad debt), both the accounts receivable schedule and the general ledger accounts receivable should show that write off.

Explanation:

Answer:

A journal was entered to determine the following transactions using the direct write-off method of accounting for uncollectible receivable shown below

Explanation:

Solution

    PART A:

                 Particulars                     Debit        Credit

Feb 20     Bad Debt Expense        $4,000

                Cash                               $1,000

                Accounts receivable                       $5000

May 10     Accounts receivable     $4,000

                Bad Debt Expense                          $4,000

                Cash                               $4,000

                Accounts receivable                       $4,000

Answer:

                    Esquire Comic Book Company

                               Income Statement

               For the Year Ended December 31, 2016

Operating income                                                $1,000,000

Restructuring costs                                                 ($80,000)

Income from continuing operations b/ Taxes      $920,000

Income tax expense                                              ($368,000)

Income from continuing operations                                        $552,000

Discontinued operations:

Income from discontinued operations                                     $90,000

Net income                                                                               $642,000

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

Explanation:

Looking from a fair point of view, the White owners of businesses have legitimate reasons to feel that the Act constitutes illegal reverse discrimination.

Remember, reverse discrimination implies an unfair treatment of the majority group (White owners) in an effort to please the minority group. This is evident from the fact that the 10 percent of all federal grants to be released by the Economic Development Administration was only to be used to purchase services or supplies from businesses owned and controlled by U.S. citizens belonging to one of six minority groups excluding the White business owners; making the White owners feel discriminated against.

Thus, unintentionally the Act became a reverse discrimination on White business owners.

Answer:

2352, Yes

Explanation:

a) Incremental Cost = Direct Material cost + Direct labour cost + Filgree + Manufacturing overhead cost  

= 147 + 85 + 9 +  15 = 256

Total additional Cost = 256 x 21 = 5376

Incremental Revenue = 368

Total additional Revenue = 368 x 21 = 7728

Incremental net operating income = Total additional revenue - total additional cost

= 7728 - 5376 = 2352

b) As Incremental net operating income is positive, company is earning from the special order. Yes, it should accept it

The relevant costs for a decision to accept the special order are  :

1. Incremental Revenue from the special order  

2. incremental variable cost

3. The cost of the special tool

The balance of manufacturing overhead would be incurred either way. Therefore, they are not relevant for the decision

Sales revenue from special order                                                $

(21× $368)                                                                                  7728

The Variable cost of special order                                                $

(21× $256)                                                                                    (5376 )

Financial advantage                                                                     2358

Know more:

https://brainly.com/question/16251128?referrer=searchResults

Answer:

Cost of equity is 11.2%

WACC is 8.74%

Explanation:

The formula for cost of equity is given below:

Cost of equity=risk free rate+(Beta *risk premium)

risk free rate is the treasury bill rate of 4%

Beta is 0.9

market risk premium is 8%

cost of equity=4%+(0.9*8%)=11.2%

WACC=Ke*E/V+Kd*D/V*(1-t)

Ke is the cost of equity of 11.2%

Kd is the cost of debt of 5%

t is the tax rate of 40% or 0.4

E is the equity weighting of 70% or 0.7

D is the debt weighting of 30% or 0.3

V is the E+D=0.7+0.3=1

WACC=11.20% *0.7/1+(5%*0.3/1*(1-0.4)

WACC=7.84% +0.90% =8.74%

Answer:

the total work W =  29.05 kJ

the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]

the  total heat transferred in [kJ] is  Q = 1.860 kJ

Explanation:

Given that

mass of carbon dioxide in the closed system = 1 kg

Temperature [tex]T_1= 30 ^0 C[/tex] = (273+30 ) K = 303 K

Pressure [tex]P_1 = \ 200 \ kPa[/tex]

Pressure [tex]P_2 = 100 \ kPa[/tex]

polytropic expansion n = 1.27

Note that we are also given the following data set:

R = 188.9 J/kg.K

c_v = 655 J/kg.K

So; for a polytropic process ; [tex]PV^{1.27} = c[/tex]

[tex]\dfrac{T_2}{T_1}= ( \dfrac{V_1}{V_2})^{n-1} = (\dfrac{P_2}{P_1})^{\frac{n-1}{n}[/tex]

[tex]T_2 = T_1 [\dfrac{P_2}{P_1}]^{\frac{n-1}{n}[/tex]

[tex]T_2 = 303 [\dfrac{100}{200}]^{\frac{1.27-1}{1.27}[/tex]

[tex]T_2 = 261.48 \ K[/tex]

Since the system does not follow the first order of thermodynamics; To calculate the total work by using the expression:

[tex]W = \dfrac{P_1V_1-P_2V_2}{n-1} = \dfrac{mR(T_1-T_2)}{n-1}[/tex]

[tex]W = \dfrac{1*188.9(303-261.48)}{1.27-1}[/tex]

W =  29048.62222 J

W =  29.05 kJ

Thus, the total work W = 29.05 kJ

The change in internal energy can be expressed  by the formula:

[tex]\Delta U = mc_v (T_2-T_1)[/tex]

[tex]\Delta U = 1*655(261.48-303)[/tex]

[tex]\Delta U = -27195.6 \ J[/tex]

[tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]

Hence; the change in total internal energy is [tex]\mathbf{\Delta U = - 27.19 \ kJ}[/tex]

Finally; to determine the  total heat transferred in [kJ]; we go by the expression for the first order of thermodynamics which say:

Total Heat Q = ΔU + W

Q = (-27.19 + 29.05)kJ

Q = 1.860 kJ

Hence; the  total heat transferred in [kJ] is  Q = 1.860 kJ

Answer:

$2,907

Explanation:

the formulas to calculate costs using the high-low method are:

variable cost = ($6,460 - $5,559) / (2,090 - 1,560) = $901 / 530 units = $1.70 per unit

fixed costs = $6,460 - ($1.70 x 2,090) = $6,460 - $3,553 = $2,907

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

Answer:

Research ethics are important for the following reasons:

1.They promote the aims of research, such as expanding knowledge.

2.They support the values required for collaborative work

3. They support important social and moral values,

Answer:

Social Security tax = $7,960.80

Medicare tax = $1,861.80

Explanation:

Let's begin by listing out the information given:

Social Security tax rate = 6.2%,

Medicare tax rate = 1.45%,

Income = $128,400

To calculate for the deductions(tax), we use the formula:

Tax = Tax rate * Income

For Social Security

Tax = Tax rate * Income

Tax = 6.2% * $128,400

T = 0.062 * $128,400

T = $7,960.80

∴ $7,960.80 of the employee's income is deducted for Social Security tax

For Medicare

Tax = Tax rate * Income

Tax = 1.45% * $128,400

T = 0.0145 * $128,400

T = $1,861.80

∴ $1,861.80 of the employee's income is deducted for Medicare tax

Answer:

A)

                    Speedway Motorsports, Inc.

                 Comparative Income statement

                   For the Years 202x and 202x₋₁

                                                              202x                202x₋₁

Total revenue                                   $490,160         $506,205

Direct expenses:                                    49.63%           48.74%

General and administrative                    37.38%          47.65%

Income from continuing operations       12.99%            3.61%

B) The most significant changes are that total revenues actually decreased, but net income from operating activities actually creased both in $ amounts and as % of total revenue. Direct expenses remained at similar levels during both years, even 202x₋₁ direct expenses were lower. But the most significant cost reduction was made on general and administrative expenses which were lowered by almost 10% (compared to total revenues). Only NASCAR broadcasting related revenues increased, while all the other revenues decreased in % and absolute amounts.

Answer:

Option of the new extruder is better by $14,411.16

Explanation:

The present value of each option needs to be determined in order that the cheaper option in present value terms can be recommended.

Present value of new extruder=$50,000/(1+12%)^0+$5000/(1+12%)^1+$5000/(1+12%)^2+$5000/(1+12%)^3+$5000/(1+12%)^4+$5000/(1+12%)^5+$5000/(1+12%)^6-$3000/(1+12%)^6=$ 69,037.14  

The discount factor each year=1/(1+r)^n where is 12% discount rate and n is the year

resent value of old extruder=$30,000/(1+12%)^0+$13,000/(1+12%)^1+$13000/(1+12%)^2+$13000/(1+12%)^3+$13000/(1+12%)^4+$13000/(1+12%)^5+$13000/(1+12%)^6=$ 83,448.30  

The first option is better since it has a lower preset value of costs of $ 69,037.14  

Difference in PVs= 83,448.30-69,037.14=$14,411.16  

Answer:

$48.50

Explanation:

Harlow Corporation

First step is to calculate for Variable cost per unit:

Variable cost per unit =

$270,000 ÷ 20,000 units

= $13.50 per unit

Second step is to calculate for the cost function

Cost function :

Y = $630,000 + $13.50X

Y= $630,000 + $13.50(18,000)

Y=$630,000+$243,000

Y = $873,000

Therefore:

Total cost / number of units = total cost per unit$

Total cost =$873,000

Number of units= 18,000

$873,000 ÷ 18,000

= $48.50

Therefore the total cost per unit is $48.50

Answer:

Be rated for safety by the USDA

Explanation:

Presence of insect pest around areas of food production poses a lot of risk such as contamination of food which might impact negatively on public health. However, in an attempt to control these insect pests, the problem of food contamination as a result of insect infestation that we're trying to solve might still be increased if safety measures are not strictly adhered to when manufacturing and using insect control devices.

Hence, it is necessary and of utmost importance that insect control devices must be rated for safety by USDA to ensure compliance with laid down measures and protocols for safe control of insect without contamination of food.

Answer:

A push-pull strategy

Explanation:

The Push strategy is an aspect of marketing where the marketer aims at taking his products directly to a target audience. This is done so as to stimulate the interest of the consumer in that particular product. Developing brands tend to employ this strategy to showcase themselves to the consumer in hopes of getting them attracted to their products. This is the strategy which the up-and-coming design firm is trying to employ when they seek to identify important events where celebrities might wear the fashions. They engage in this activity because they want to showcase their designs to the target audience- the celebrities.

Pull strategy is the opposite of this strategy as customers are now aware of the reputation of the brand and then seek them out on their own.

Requirment: Prepare a Balance Sheet as at December 31, 2020.

Answer:

Current Assets:

Cash                                                                $61,140

Accounts Receivable                   60,000

less allowance for doubtful          6,000       54,000

Inventory                                                          23,300         138,440

Non-current Assets:

Land                                                                 67,200

Buildings                                       81,700

Accumulated Depreciation       28,050        53,650

Equipment                                    41,000  

Accumulated Depreciation         17,890        23,110          143,960

Total Assets                                                                     $282,400

Liabilities + Equity:

Current Liabilities:

Accounts Payable                       19,500

Interest Payable                           4,400

Dividends Payable                       5,802

Unearned Rent Revenue             1,800       31,502

Non-current Liabilities:

Bonds Payable (10%)                                     44,000           $75,502

Equity:

Common Stock ($10 par)                                38,000

Paid-in Capital in Excess of Par—Common    10,240

Preferred Stock ($20 par)                              20,000

Paid-in Capital in Excess of Par—Preferred    3,000

Retained Earnings                                         138,258

Treasury Stock                                                 (2,600)       206,898

Total Liabilities + Equity                                                  $282,400

Explanation:

a) Cullumber Corporation's Unadjusted Trial Balance as of December 31, 2020:

                                                       Debit             Credit

Cash                                            $26,100

Accounts Receivable                   60,000

Inventory                                      23,300

Land                                             67,200

Buildings                                       81,700

Equipment                                    41,000

Allowance for Doubtful Accounts                                  $470

Accumulated Depreciation—Buildings                      25,500

Accumulated Depreciation—Equipment                    14,200

Accounts Payable                                                        19,500

Interest Payable                                                         –0–

Dividends Payable                                                     –0–

Unearned Rent Revenue                                             7,200

Bonds Payable (10%)                                                  44,000

Common Stock ($10 par)                                           28,000

Paid-in Capital in Excess of Par—Common Stock      5,600

Preferred Stock ($20 par)                                           –0–

Paid-in Capital in Excess of Par—Preferred Stock     –0–

Retained Earnings                                                     65,330

Treasury Stock                          –0–

Cash Dividends                         –0–

Sales Revenue                                                       570,000

Rent Revenue                                                             –0–

Bad Debt Expense                     –0–

Interest Expense                       –0–

Cost of Goods Sold                   380,000

Depreciation Expense              –0–

Other Operating Expenses       36,900

Salaries and Wages Expense   63,600

Total                                       $779,800               $779,800

b) Cullumber Corporation's Adjusted Trial Balance as of December 31, 2020:

                                                       Debit             Credit

Cash                                             $61,140

Accounts Receivable                   60,000

Inventory                                      23,300

Land                                             67,200

Buildings                                       81,700

Equipment                                    41,000

Allowance for Doubtful Accounts                              $6,000

Accumulated Depreciation—Buildings                      28,050

Accumulated Depreciation—Equipment                    17,890

Accounts Payable                                                        19,500

Interest Payable                                                            4,400

Dividends Payable                                                        5,802

Unearned Rent Revenue                                             1,800

Bonds Payable (10%)                                                  44,000

Common Stock ($10 par)                                           38,000

Paid-in Capital in Excess of Par—Common Stock    10,240

Preferred Stock ($20 par)                                         20,000

Paid-in Capital in Excess of Par—Preferred Stock     3,000

Retained Earnings                                                     65,330

Treasury Stock                               2,600

Cash Dividends                              5,802

Sales Revenue                                                       570,000

Rent Revenue                                                            5,400

Bad Debt Expense                        5,530

Interest Expense                           4,400

Cost of Goods Sold                  380,000

Depreciation Expense                 6,240

Other Operating Expenses       36,900

Salaries and Wages Expense   63,600

Total                                       $839,412              $839,412

c) Cash Account Adjustment:

Balance as per Trial Balance $26,100

Preferred Stock                       23,000

Common Stock                       24,000

Treasury Stock                        (11,960)

Adjusted Cash balance         $61,140

d) Income Statement

Sales Revenue                                            $570,000

Cost of goods sold                                       380,000

Gross profit                                                 $190,000

Rent Revenue                                                   5,400

Total                                                            $195,400

less expenses:

Bad Debt Expense                        5,530

Interest Expense                           4,400

Depreciation Expense                  6,240

Other Operating Expenses       36,900

Salaries and Wages Expense   63,600        116,670

Net Income                                                  $78,730

Retained Earnings                                        65,330

Dividends                                                       (5802)

Retained Earnings carried forward         $138,258

Answer:

By answering more phone calls but providing worse service, you ARE being EFFICIENT but NOT SATISFY CUSTOMERS' NEEDS.

Explanation:

A worker's efficiency is measured by the total output per hour of labor. In this case, since you are answering more calls per hour, your efficiency is increasing (higher output per hour).

The quality of the service provided by a worker's is measured by the quality of their output (or performance), and if you satisfy your customers' needs. Since the service that you are providing is not that good, then your quality levels are decreasing.

You may be producing more services, but the services produced lack good quality.

Answer:

a. Product A $257,830 , Product B $57,086

b. Product A $71,990 , Product B $41,514

c. Hie, for this part of the question there is missing information regarding the  Activities for the two Products for each Activity Center.

However the Procedure to deal with the required is explained below :

Step 1 : Determine the Overhead Absorption Rate for Each Activity Center

(We have three Activity Centers: Machine setup, Materials handling: Quality control inspections )

Overhead Absorption Rate = Total Overhead (for each) / Total Number of Activity

Step 2: Absorb the Costs in the products using the Rate for each cost center and the number of activity incurred in each cost center for the two Products

Overhead (Activity Center) = Overhead Absorption Rate× Activity Specific to the Product.

Step 3 : Determine the Total Costs

Total Cost for one Product would include the Total Costs for each Activity Center (which are your overheads) plus the Direct Labor and Direct Material Costs as Calculated in Part b.

Explanation:

Part a

Total Production Cost = Direct Costs + Indirect costs (overheads)

First determine the predetermined rate based on direct labor hours.

Total direct labor hours.

Product A (11,500×0.16) =   1,840

Product B (1.700×0.24)   =    408

Total                                 = 2,248

Predetermined rate = total overhead cost / total direct labor hours

                                 = $220,304 / 2,248

                                 = $98 per labor hour

Assigning Overhead Cost

Total Overhead Costs

Product A (1,840×$98) = 180,320

Product B (408×$98)   =   39,984

Total                             = 220,304

Total Costs

                                                 Product A      Product B

Direct labor cost

Product A ( 1,840×$29)              53,360

Product B (408×$29)                                         11,832

Direct materials cost

Product A ( 11,500×$2.10)          24,150

Product B (1.700×$3.10)                                    5,270

Overheads

Product A                                 180,320

Product B                                                         39,984

Total Costs                              257,830            57,086

Part b.

Profit = Selling Price - Expenses

                                                   Product A      Product B

Sales

Product A ( 11,500×$28.68)        329,820

Product B (1.700×$58)                                        98,600

Manufacturing Costs                 (257,830)        (57,086)

Profit                                              71,990              41,514

Answer: Instrumental

Explanation:

Rational choice theory, is a school of thought which is based on the assumption that individuals will choose a course of action which goes in line with what they personally prefer.

For the instrumental rationality, it has to do with looking for the most cost effective method in order to achieve a particular objective. Therefore, the behavior of corporate executives who outsource jobs to other countries where labor cost is cheaper than in the United States is defined as being instrumental.

Answer:

b. ​As you expand output, your marginal productivity eventually declines

a. decreasing average costs as production increases

a. ​lower average costs when multiple different products are produced

Explanation:

The law of diminishing marginal returns states that as more unit of variable factors of production are added to production, output would increase at first but after a period, it would increase at a negative rate.

Economies of scale is the reduction in cost thay accrue to firms as they increase production. For example, a supplier might give a firm a discount for buying in bulk.

Economies of scope states that average cost would fall as the production of similar products increases. For example, a fashion designer who makes women's clothings decides to make scarfs with the scraps of clothes left.

I hope my answer helps you

Answer:

Moral obligation bond

Explanation:

Moral obligation bond is defined as a revenue bond that is issued by a municipality or by some other government body.

The benefits of moral obligation bonds are tax exemption and a moral pledge that there will be no default on the bond.

Usually a reserve fund is established in case the issuing body is unable to meet its debt obligations.

In this scenario the bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements."

Answer: Provided in the explanation section

Explanation:

Conversion Cycle is the cycle which track records for the arrangement of crude material to completed products.  

Here on the best possible perspective all in all of the procedure:  

1. Triger by distribution center dept ( Raw material Keeper)  

2. Produnction chief updates the request to be finished and include further up and coming requests assuming any.  

3.It will produce online request slip and straightforwardly post to chiefs tab + bookkeeper tab  

4. Manager take material and issue to gathering dept ( abundance material necessity is given by his position too)  

5. Time + work both finished card sare sent to Accountanct  

6. When request finished Accountant update the WIP just as Inventory in books.  

Hazard in the Conversion Cycle:  

After receipt of material and charging it to FG as Inventory in books  

- Risk is hindering of assets in overabundance keeping of stock, As material level down after a specific level automatc trigger alternative is set up, which cautions the productin withdraw. to decide the future prerequisite according to the productin request in hands ( Good control set up)  

Second, Online workorder to Supervisior, All chief gets their no. of creation request ( to be finished on the web) - Good control set up  

Third, Supervisor on hand, place the material prerequisite ( and if any overabundance necessity - " NO FURTHER APPROVAL" is made to store representative. here hazard is medium over the demand well beyond the Order indicates by the creation dept.  

Fourthly, creation representatives itself are getting ready thier work tickets ( " NO AUTHENTICATION")- As tickets are finished by creation representatives itself control of information info or its endorsement is inadequate.  

Fifth, Accountant decides himeslef the WIP , FG of the request over the crude information got as employment card, time card, material order Risk is bookkeeper simply need to verifiy the information from the information got from the creation L2 official as opposed to himself keep up the quantities of the activity.  

From above it is anything but difficult to catch the degree of hazard at different level in the above procedure of Central creation Limited.

Answer:

Warnerwoods Company

Perpetual Inventory System:

1. Cost of Goods Available for Sale and Units Available for Sale:

Mar. 1 Beginning inventory     60 units $50.20 per unit      $3,012

Mar. 5 Purchase                   205 units $55.20 per unit        11,316

Mar. 18 Purchase                    65 units $60.20 per unit        3,913

Mar. 25 Purchase                  110 units $62.20 per unit        6,842

Available for Sale                440 units            Cost =      $25,083

2. The number of units in ending inventory:

Units Available for Sale 440

Subtract units sold         310

Ending Inventory          130 units

3. The Cost assigned to ending inventory using:

a) FIFO: Ending Inventory

20 units at $60.20 per unit   = $1,204

110 units at $62.20 per unit  =  6,842

Ending Inventory                    $8,046

b) LIFO: Ending Inventory

Mar. 1 Beginning Inventory 45 units $50.20 per unit = $2,259

Mar. 18 Purchase 65 units $60.20 per unit  =                    3,913  

Mar. 25 Purchase 20 units $62.20 per unit   =                  1,244

Ending Inventory 130 units    Cost  = $7,416

c) Weighted Average: Ending Inventory

Cost of Goods Available for Sale divided by units available for sale

= $25,083/440 = $57 per unit

Ending Inventory = $57 x 130 = $7,410

d) Specific Identification: Ending Inventory

This cannot be answered from the  information provided in the question:

4. Gross Profit for each costing method:

                        FIFO             LIFO         WEIGHTED       SPECIFIC

                                                     AVERAGE        IDENTIFICATION

Sales               $27,312         $27,312         $27,312            $27,312

Cost of Sales    17,037           17,667            17,670

Gross Profit   $10,275          $9,645          $9,642

Explanation:

a) Sales:

Mar. 9 Sales 220 units $85.20 per unit = $18,744

Mar. 29 Sales 90 units $95.20 units   =       8,568

Total = $27,312

b) Cost of Sales:

i) FIFO

Mar 1. Beginning inventory 60 units $50.20 per unit  = $3,012

Mar. 5 Purchase 205 units $55.20 per unit      =            11,316

Mar. 18 Purchase 45 units $60.20                     =            2,709

Cost of Sales = $17,037

ii) LIFO:

Mar. 1 Beginning inventory 15 units $50.20 per unit  = $753

Mar. 5 Purchase 205 units $55.20 per unit   = $11,316

Mar. 25 Purchase 90 units $62.20 per unit   = $5,598

Cost of Sales = $17,667

iii) Weighted Average:

Cost of Sales = $57 x 310 = $17,670

c) Calculations under the specific identification cannot be made because of the figures given under this method.

Cost of goods available for sale =  440 units and $25,071

Number of units in ending inventory is 130 units.

1. The calculation of compute cost of goods available for sale and the number of units available for sale is;

Cost of goods available for sale =  440 units and $25,071

2. Number of units in ending inventory:

Number of units in ending inventory is 130 units.

3. Compute the cost assigned to ending inventory

4. Compute gross profit earned by the company for each of the four costing methods.

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