Question

In: Operations Management

The following data represent the inventory figures for 55-gallon fish tanks at an aquarium. 55-Gallon Fish...

The following data represent the inventory figures for 55-gallon fish tanks at an aquarium. 55-Gallon Fish Tanks Inventory Amount January 1 Beginning Inventory 48 units @ $38.00 March 12 Purchase 70 units @ $36.50 July 19 Purchase 135 units @ $39.70 September 2 Purchase 85 units @ $41.75 Fish Tanks Available for Sale: Cost of Tanks Available for Sale: (a) How many fish tanks did the aquarium have available for sale? fish tanks (b) Calculate the total cost (in $) of the tanks available for sale. $ (c) If physical inventory on December 31 showed 88 tanks on hand, calculate their dollar value by using FIFO. $ (d) Calculate the value of the 88 tanks by using LIFO (in $). $ (e) Calculate the dollar value of the 88 tanks by using the average cost method (Round your answer to the nearest cent). $

A particular gym maintains a gross margin of 55% on all its weight training products. In April, the gym had a beginning inventory of $142,000, net purchases of $206,000, and net sales of $436,000. Use the gross profit method to estimate the cost (in $) of ending inventory.

$

Solutions

Expert Solution

A) Jan1 :- opening inventory 48 units @ $38 =$1,824

Mar12 :- Purchase 70 units @ $36.50 =$2,555

Jul19 :- Purchase 135 units @$39.70 =$5,359.5

Sep2 :- Purchase 85 units @$41.75 =$3,548.75

Total 338 units =$13,287.25

a) Fish tanks available for sale = 338 units

b) Cost of tanks avaialbale for sale = $13,287.25

c) Using FIFO, value (in $) of 88 units on Dec 31

This means that out of 338 units 250 units are sold in the following sequence

i.e. 48 units @ $38 - 70 units @ $36.50 - 132 units @ $39.70

Thus Value of closing inventory is,

3 units@$39.70 + 85 units@$41.75 = $3,667.85

d) Using LIFO, value (in $) of 88 units on Dec 31

This means that out of 338 units 250 units are sold in the following sequence

i.e. 85 units@$41.75 - 135 units@$39.70 - 30 units @$36.50

Thus Value of closing inventory is,

40 units@$36.50 + 48 units@$38 = $3,284

e) Using Average cost method,

Average cost of inventory = $13287.25/338 units = $39 (approx)

Value of closing inventory of 88 units = $39.31 x 88units = $3,459

B) Closing inventory = Opening inventory + Net purchases + Gross profit - Net Sales

= $142,000 + $206,000 + ($436,000 * 55/155) - $436,000

= $66710

keosha answered 6 months ago
Next > < Previous

Related Solutions

Assume the following data represent the cost of a gallon of gasoline ($) at all the...
Assume the following data represent the cost of a gallon of gasoline ($) at all the various gas stations around town on a given day. Take a random sample of size 5 from this population. 2.59 3.01 3.15 2.83 2.79 2.59 2.96 3.05 3.19 3.03 2.65 2.74 2.83 2.69 3.05 3.10 2.89 2.84 2.63 3.11 2.76 2.89 2.90 3.09 3.05 2.71 2.84 2.90 2.75 2.90 2.56 2.89 2.76 2.87 2.92 3.05 3.09 2.57 3.20 2.76 a) Describe the individual, variable,...
The following information pertains to Wayde’s Fish Tanks and Theresa’s Critter Control at the end of...
The following information pertains to Wayde’s Fish Tanks and Theresa’s Critter Control at the end of 2016: ACCOUNT TITLE WAYDE’S FISH THERESA’S CRITTER TANKS CONTROL Current Assets $ 45,000 $ 45,000 Total Assets 800,000 800,000 Current Liabilities    78,000    57,000 Total Liabilities 675,000 500,000 Stockholders’ Equity 125,000 300,000 Interest Expense    62,000 45,000 Income Tax Expense    69,000 75,500 Net Income 105,000 115,000 Compute each company’s debt to asset ratio, current ratio and times interest earned (EBIT must be computed…Earnings Before Interest...
The accompanying data represent the miles per gallon of a random sample of cars with a​...
The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) Compute the​ z-score corresponding to the individual who obtained 41.4 miles per gallon. Interpret this result. ​(b) Determine the quartiles. ​(c) Compute and interpret the interquartile​ range, IQR. ​(d) Determine the lower and upper fences. Are there any​ outliers? 32.7 34.0 34.7 35.4 36.0 36.2 37.3 37.6 37.7 37.9 38.1 38.5 38.6 39.0 39.2 39.4 39.9 40.7 41.4 41.8...
The accompanying data represent the miles per gallon of a random sample of cars with a​...
The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) Compute the​ z-score corresponding to the individual who obtained 36.3 miles per gallon. Interpret this result. ​(b) Determine the quartiles. ​(c) Compute and interpret the interquartile​ range, IQR. ​(d) Determine the lower and upper fences. Are there any​ outliers? LOADING... Click the icon to view the data 32.5 35.9 38.0 38.6 39.9 42.4 34.4 36.3 38.1 38.7 40.6 42.7...
The accompanying data represent the miles per gallon of a random sample of cars with a​...
The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) Compute the​ z-score corresponding to the individual who obtained 38.4 miles per gallon. Interpret this result. ​(b) Determine the quartiles. ​(c) Compute and interpret the interquartile​ range, IQR. ​(d) Determine the lower and upper fences. Are there any​ outliers? 32.5; 35.9; 37.6; 38.6; 40.4; 42.5; 34.0; 36.2; 37.8; 38.9; 40.6; 42.6; 34.7; 37.3; 38.1; 39.4 ;41.3; 43.4; 35.6; 37.4;...
the accompanying data represent the miles per gallon of a random sample of cars with a​...
the accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) compute the​ z-score corresponding to the individual who obtained 38.7 miles per gallon. interpret this result. ​(b) determine the quartiles. ​(c) compute and interpret the interquartile​ range, iqr. ​(d) determine the lower and upper fences. are there any​ outliers?39.939.9 42.442.4 34.634.6 36.336.3 38.138.1 38.938.9 40.540.5 42.842.8 34.734.7 37.537.5 38.338.3 39.439.4 41.441.4 43.643.6 35.235.2 37.637.6 38.538.5 39.739.7 41.641.6 49.049.0
The accompanying data represent the miles per gallon of a random sample of cars with a​...
The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) Compute the​ z-score corresponding to the individual who obtained 39.839.8 miles per gallon. Interpret this result. ​(b) Determine the quartiles. ​(c) Compute and interpret the interquartile​ range, IQR. ​(d) Determine the lower and upper fences. Are there any​ outliers? 32.4 34.1 34.5 35.7 36.1 36.3 37.5 37.7 37.9 38.1 38.3 38.5 38.7 39.1 39.5 39.8 39.9 40.6 41.3 41.6...
The accompanying data represent the miles per gallon of a random sample of cars with a​...
The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine. ​(a) Compute the​ z-score corresponding to the individual who obtained 32.7 miles per gallon. Interpret this result. ​(b) Determine the quartiles. ​(c) Compute and interpret the interquartile​ range, IQR. ​(d) Determine the lower and upper fences. Are there any​ outliers? 32.7 35.9 38.0 38.7 40.2 42.2 34.4 36.2 38.1 38.9 40.7 42.7 34.6 37.5 38.2 39.5 41.5 43.6 35.2 37.8...
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales...
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Las Lemus, Inc. for an operating period. Units Unit Cost Total Cost Units Sold Beginning Inventory 32 $36 $1,152 Sale No. 1 10 Purchase No. 1 28 40 1,120 Sale No. 2 32 Purchase No. 2 20 38 760 Totals 80 $3,032 42 Assuming Las Lemus, Inc. uses weighted-average (periodic) inventory procedures, the ending inventory cost is: A. $1,444.00 B. $1,594.80 C. $1,442.00...
Summarizing Bivariate Data (1) The data in table below represent airline fuel cost per gallon (in...
Summarizing Bivariate Data (1) The data in table below represent airline fuel cost per gallon (in dollars) for the US domestic and international carriers with scheduled service by month from July 2014 to December 2014. Month Domestic (x) International (y) July 3 2.84 August 2.98    2.84 September 2.89 2.81 October 2.69 2.67 November 2.58 2.55 December 2.3 2.3 (a) Find the correlation coefficient value r. (b) If we wish to predict international cost using the domestic cost, identify response...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT