BUSINESS COLLEGE

Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $64,500 and $123,000, net purchases at cost and retail were $315,000 and $483,000, and sales during the first six months totaled $493,000. The estimated inventory at June 30, 2021, would be:

Answers

Answer 1
Answer:

Answer:

Best estimate for inventory =$70,764.85

Explanation:

The closing inventory value at retail

= (Opening inventory + Purchases - sales)  all in retail prices

= $123,000 +  $483,000 - 493,000.

= 113000

Closing inventory value at cost

=113,000 ×  (64,500 + 315,000)/(123,000 +  $483,000)

=70,764.85

Best estimate for inventory =$70,764.85

Related Questions

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The Victor Company sells two products. The following information is provided: Product A Product BUnit selling price$100 $150 Unit variable cost$30 $70 Number of units produced and sold 20,000 60,000 What is the weighted average contribution margin per unit?A. $75.00B. $80.00C. $77.50D. $72.50
9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540 Beginning work in process inventory $330 Ending work in process inventory $420 Cost of goods manufactured $1620 Manufacturing overhead $830 What was the cost of direct materials used for the quarter
Consider a two-step mortgage for $150,000, 30 years, monthly payments, an initial interest rate of 5%, a cap of 5%, and a single rate adjustment at the end of year 7. Assume that the index rate at the end of year 7 is 5% and the margin is 2%. If the borrower pays an extra $100 with each payment starting in month 85, by how many months will he shorten the term of the loan

The plant union is negotiating with the Eagle Company, which is on the verge of bankruptcy. Eagle has offered to pay for the employees' hospitaliztion insurance in exchange for a wage reduction. The employees each currently pay premiums of $4,000 a year for their insurance. Which of the following is correct:a. If an employee's wages are reduced by $5,000 and the employee is in the 28% marginal tax bracket, the employee would benefit from the offer.
b. If an employee's wages are reduced by $4,000 and the employee is in the 15% marginal tax bracket, the employee would benefit from the offer.
c. If an employee's wages are reduced by $6,000 and the employee is in the 35% marginal tax bracket, the employee would benefit from the offer.
d. a., b., and c.
e. None of these.

Answers

Answer:

d. a., b., and c.

Explanation:

Reduction in pay (a) Marginal tax (b) Reduction in tax (c = a x b)

A. $5000                            0.28                              $1,400

B. $4000                             0.15                                  $600

C. $6000                              0.35                                $2100

Reduction in After-tax Income (d = a - c)

A. $3,600

B. $3,400

C. $3,900

this means that all the above a, b, and c options are correct because in all the three cases, the reduction in after-tax pay of the employee will be less than $4000 value of the nontaxable insurance premium to be paid by the employer which would ultimately benefit the employee.

As part of an estate settlement Mary received $1 million. She decided to use the money to purchase a small business in Anywhere, USA. If Mary would have invested the $1 million in a risk-free bond fund she could have made $100,000 each year. She also quit it her job with Lucky.Com Inc. to devote all of her time to her new business; her salary at Lucky.Com Inc. was $75,000 per year.At the end of the first year of operating her new business, Mary's accountant reported an accounting profit of $150,000. What was Mary's economic profit?

a. $25,000 loss
b. $50,000 loss
c. $25,000 profit
d. $150,000 profit 13.

Answers

Answer:

a. $25,000 loss

Explanation:

Economic profit = revenues - explicit costs - opportunity costs

In this case, Mary's economic profit = profit from investment in new business - opportunity cost of not investing $1 million in risk-free bond - opportunity cost of quitting job

= $150,000 - $100,000 - $75,000

= ($25,000)

Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither provides a tax deduction at the date of contribution. Which of the two types would be most advantageous to taxpayers and why

Answers

Answer:

The query definition is mentioned in the clarification section following.

Explanation:

  • Throughout the particular instance of Roth IRA, more stability and fewer constraints along with existing lower federal premiums allow Roth IRA a safer long-term taxpayer option. It is recommended that the taxpayer should do so. Employers can opt for something like a non-qualified retirement package if the company wishes to attract prospective workers with extra perks.
  • It will include insurance as well as tax detention incentives along with extra payments. Non-qualified programs are more versatile which are used to accomplish specialized targets.

During 2018, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2018, was Clemson Corp. stock—$19,100; Buffaloes Co. stock—$20,500. None of the equity investments result in significant influence. (a) Prepare the adjusting journal entry needed on December 31, 2017. (b) Prepare the journal entry to record the sale of the Colorado Co. stock during 2018. (c) Prepare the adjusting journal entry needed on December 31, 2018.

Answers

Explanation:

The journal entries are as follows

a. Unrealized Holding Gain or Loss Dr $1,310

                      To Fair value Adjustment  $1,310

(Being the unrealized gain or loss is recorded)

2. Cash $9,410

   Loss on Sale of Investment  $490     ($9,900 - $9,410)

                  To Equity Investment  $9,900

(Being the sale of the stock is recorded)

3. Fair value Adjustment  $1,020

             To  Unrealized Holding Gain or Loss  $1,020

(Being the fair value adjustment is recorded)

The computation is shown below:

Stock                              Cost                  Fair Value      Unrealized Gain(Loss)

Clemson Corp. Stock    $20,200           $19,410          -$790

Buffaloes Co. stock       $20,200           $20,700         $500

Net unrealized gain (loss)                                            -$290

2017                                                                                -$1,310

Fair value adjustment                                                   -$1,020

Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000. How many years must Brink wait to accumulate $10,000

Answers

Answer:

Megan Brink

Brink must wait 6 years to accumulate $10,000 with a present value investment of $6,651.

Explanation:

a) Data and Calculations:

Present value of investment = $6,651

Future value of the investment = $10,000

Interest rate per year = 6%

b) Using an online calculator:

You will need to invest 6.028 periods to reach the future value of $10,000.00.

FV (Future Value) $9,999.99

PV (Present Value) $6,651.00

N (Number of Periods) 6.028

I/Y (Interest Rate) 7.000%

PMT (Periodic Payment) $0.00

Starting Investment $6,651.00

Total Principal $6,651.00

Total Interest $3,348.99

SER jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make Fixed out 120.000. If 5,000 units are produced and sold, income equals Multiple Choice Multiple Choice $2,050,000. O $1,930,000 O $290,000. O $410,000. O $1,520,000.

Answers

The correct option is C. SER jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make Fixed out 120.000. If 5,000 units are produced and sold, income equals $290,000.

Sales (5,000×$410) = $2,050,000

Less: Variable costs (5,000×$328) = 1,640,000

Contribution margin = 410,000

Less: Fixed costs = 120,000

Net income (loss)

Variable charges are fees that alternate as the amount of the coolest or service that an enterprise produces adjustments. Variable costs are the sum of marginal expenses over all devices produced. They also can be taken into consideration regular fees. constant charges and variable charges make up the two additives of the total price. Direct costs are costs that could without problems be related to a particular value object.

But, no longer all variable fees are direct charges. for instance, variable production overhead fees are variable fees that might be indirect prices, not direct costs. Variable prices are once in a while known as unit-stage costs as they range with the range of devices produced. Direct hard work and overhead are regularly known as conversion fees, whilst direct cloth and direct labor are frequently known as top prices.

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