Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 26 |
| Purchases: #1 | 650 | 22 |
| #2 | 550 | 18 |
| #3 | 200 | 16 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 46 |
| Purchases: #1 | 650 | 42 |
| #2 | 550 | 38 |
| #3 | 200 | 36 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
Computing Cost of Sales and Ending Inventory
Stocken Company has the following financial records for the current
period.
| Units | Unit Cost | |
|---|---|---|
| Beginning Inventory | 100 | $ 46 |
| Purchases: #1 | 650 | 42 |
| #2 | 550 | 38 |
| #3 | 200 | 36 |
Ending inventory is 350 units. Compute the ending inventory and the
cost of goods sold for the current period using (a) first-in, first
out, (b) average cost, and (c) last-in, first out.
| (a) First-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (b) Average cost | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
| (c) Last-in, first-out | |
| Ending inventory | $Answer |
| Cost of goods sold | $Answer |
In: Accounting
At a price of $7.75 per ticket, a musical theater group can fill every seat in their 1800 seat performance hall. For every additional dollar charged for admission, the number of tickets sold drops by 100.
a) What ticket price maximizes revenue? Round your answer to the
nearest cent.
price = $
equation editor
b) How many seats are sold at that price? Round your answer to the
nearest whole number.
number of seats sold =
equation editor
In: Math
Looner Industries is currently analyzing the purchase of a new machine that costs $165,000
and requires $19,800in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,400to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period (see the table
LOADING...for the applicable depreciation percentages) and expects to sell the machine to net
$10,400 before taxes at the end of its usable life. The firm is subject to a 40 % tax rate.
|
Rounded Depreciation Percentages by Recovery Year Using MACRS
for First Four Property Classes |
||||
| Percentage by recovery year* | ||||
| Recovery year | 3 years | 5 years | 7 years | 10 years |
| 1 | 33% | 20% | 14% | 10% |
| 2 | 45% | 32% | 25% | 18% |
| 3 | 15% | 19% | 18% | 14% |
| 4 | 7% | 12% | 12% | 12% |
| 5 | 12% | 9% | 9% | |
| 6 | 5% | 9% | 8% | |
| 7 | 9% | 7% | ||
| 8 | 4% | 6% | ||
| 9 | 6% | |||
| 10 | 6% | |||
| 11 | 4% | |||
| Totals | 100% | 100% | 100% | 100% |
a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years.
b. Discuss the effect of usable life on terminal cash flows using your findings in part a.
assuming a 5-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $9,240
or (2) $170,500(before taxes) at the end of 5 years.
d. Discuss the effect of sale price on terminal cash flow using your findings in part c.
In: Finance
Terminal cash- Various lives and sale prices. Looner Industries is currently analyzing the purchase of a new machine that cost. $164,000 and requires $19,800
in installation costs. Purchase of this machine is expected to result in an increase in net working capital of $30,100 to support the expanded level of operations. The firm plans to depreciate the machine under MACRS using a 5-year recovery period .for the applicable depreciation percentages) and expects to sell the machine to net $10,300 before taxes at the end of its usable life. The firm is subject to a 40 % tax rate.
a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years.
b. Discuss the effect of usable life on terminal cash flows using your findings in part a.
c. Assuming a 5-year usable life, calculate the terminal cash flow if the machine were sold to net (1) $9,190 or (2) $169,600 (before taxes) at the end of 5 years.
d. Discuss the effect of sale price on terminal cash flow using your findings in part c.
|
Rounded Depreciation Percentages by Recovery Year Using MACRS
for First Four Property Classes |
||||
| Percentage by recovery year* | ||||
| Recovery year | 3 years | 5 years | 7 years | 10 years |
| 1 | 33% | 20% | 14% | 10% |
| 2 | 45% | 32% | 25% | 18% |
| 3 | 15% | 19% | 18% | 14% |
| 4 | 7% | 12% | 12% | 12% |
| 5 | 12% | 9% | 9% | |
| 6 | 5% | 9% | 8% | |
| 7 | 9% | 7% | ||
| 8 | 4% | 6% | ||
| 9 | 6% | |||
| 10 | 6% | |||
| 11 | 4% | |||
| Totals | 100% | 100% | 100% | 100% |
In: Finance
PART I
(a) Discuss in detail, with reference to the principles of IFRS 15
Revenue from Contracts with Customers, whether Lockdown Health Ltd
should recognise the following elements of the revenue contract
with Sanitize Ltd as separate performance obligations:
• the testing equipment; • the installation of testing equipment;
and • the 12-month warranty.
(b) Assume for this section of the question that there are three
separate performance obligations, namely the testing software,
testing equipment and training services in the revenue contract
with Sanitize Ltd.
Criticise the journal entry that was processed with regards to the
allocation of the transaction price for revenue recognition to the
separate performance obligations listed above, for the year ended
31 August 2020. Support your answer with calculations and
amounts.
Communication skills: logical flow and conclusion
(c) Prepare the journal entries to be processed by Lockdown Health
Ltd to account for the transaction with StayHome Ltd for the year
ended 31 August 2020.
PART II
Prepare the journal entries in the financial statements of Telecon
Ltd to account for all the journal entries arising from the
contract with the South African National Defence Force for the year
ended 31 August 2020.
Please note:
• Round off all amounts to the nearest Rand. • Journal narrations
are not required. • Deferred tax journal entries are not required.
• Ignore any Value Added Tax (VAT) implications. • Your answer must
comply with International Financial Reporting Standards (IFRS).
In: Accounting
Use the information provided below, for Siyeza Traders for the
financial year ended
28 February 20.8, to answer questions 1 to 3.
Siyeza Traders is an enterprise that sell motor vehicles in the
ordinary course of business at a
mark-up of 45% on cost. During the current financial period, Siyeza
Traders sold eight motor
vehicles for a cash price of R80 000 each (15% VAT inclusive).
Round your answer off to the
nearest Rand.
1. Income earned from the sale of motor vehicles will be classified
under ... in the statement
of profit or loss and other comprehensive income.
(1) Other income
(2) Profit on sale of motor vehicle
(3) Revenue
(4) Gains
(5) Finance income
2. Income earned from the sale of motor vehicles will be disclosed
in the statement of profit
or loss and other comprehensive income as an amount of … .
(1) R640 000
(2) R441 379
(3) R544 000
(4) R556 520
(5) R352 000
3. Which of the following statement is correct?
(1) VAT on cash sales will be debited to the VAT output
account.
(2) VAT on cash sales will be debited to the VAT input
account.
(3) VAT on cash sales will be credited to the VAT output
account.
(4) VAT on cash sales will be credited to the VAT input
account.
(5) VAT output account will be transferred to the debit side of the
VAT control account.
In: Finance
Complete the following code segment that is intended to extract the Dirham and fils values from a price given as a floating-point value; for example, a price 2.95 yields values 2 and 95 for the dirham and fils. as per the following description:
Assign the price to an integer variable named dirham to get the dirhmas part of the price
Subtract dirham from price then multiply the difference by 100 and add 0.5
Assign the result to an integer variable named fils
Display both of dirham and fils values each in a separate line
In: Computer Science
Question 8
A non – dividend – paying stock with a current price of £104, the strike price is £100, the volatility is 30% pa, the risk-free interest rate is 12% pa, and the time to maturity is 3 months?
a) Calculate the price of a call option on this stock?
b) Calculate the price of a put option price on this stock?
c) Is the put-call parity of these options hold?
If possible, please provide a detailed step by step and include an explanation as I would like to fully understand and not just copy answers. Thank you :)
In: Finance