Describe how to properly accept goods

Inventory Case Study

Nicole Matthews is the sole owner of Nature's Cosmetics, Inc. In December, 2015, a supplier, Spa Manufacturing, Inc., asked her to include a prepackaged spa kit with her cosmetics line. Feeling that she could manage an additional product line, Nicole agreed. Nicole's company, Nature's Cosmetics would make monthly purchases from the supplier at a cost that included production costs and transportation charges. Nicole would keep track of the new inventory line by using a perpetual inventory system.

On January 15, Nicole purchased 10 units at a total cost of $6 per unit. At the end of the month, January 31, she paid the totaLamount due to Spa Manufactur ing,Inc. On February 5,she purchased 30 more units at $8, but she returned 5 defective units on February 8. February, 15 she paid the full amount due to Spa Manufacturing ,Inc. On February 25,she sold 15 units to Sheila Davis for $40 per unit.

March 1,she purchased 15 units at $10 per unit, and on March 15 she sold 30 units to Lola Guthrie for $40 per unit. On May 1,she purchased an additional 50 units for $10 per unit.

Directions:

1. Prepare a Table that includes the below headings and subheadings:

Use the Table to compute Cost of Goods Sold and Ending Inventory (include both units and total dollars):

a) First In, First Out (FIFO)

b) Last In,First Out (LIFO)

c) Weighted Average Cost

3) Use the three Tables to answer the following questions :

a) Explain why merchandising companies have to use an inventory cost flow method.

b.When prices are increasing , which inventory cost flow method will yield the:

i) Highest ending inventory cost

ii) Lowest ending inventory cost

iii) Highest cost of goods sold

iv) Lowest cost of goods sold

v) Highest gross profit

vi) Lowest gross profit

c) Compared to FIFO and LIFO, when prices are increasing, the ending inventory for weighted average cost will be?

d) Compared to FIFO and LIFO, when when prices are increasing, the cost of goods sold for weighted average cost will be?

4) Using the FIFO Method from the Table created in question #2, prepare journal entries for all of the applicable transactions .

5) Open T Accounts, and post the journal entries to the T Accounts.

6) Using the LIFO Method from the Table created in question #2, prepare journal entries for all of the applicable transactions.

7) Open T Accounts, and post the journal entries to the T Accounts .

Watch Me Flex (WMF)

Watch Me Flex (WMF) is a watch retailer based in Shanghai, China. It operates as a partnership between three owners, Eric, Nicolas, and Alvin. It specializes in the distribution of luxury branded watches, such as Rolex, Patek Phillipe, and Audemars Piguet. Due to the falling economic growth in China, WMF has been facing declining sales revenue during the past year. Further, with the crackdown of corruption, The State Administration of Taxation is reviewing many businesses. To prepare for WMF the owners hired a

Table 1: Select financial information for WMF for 2019. Figures in Chinese yuan (¥).

Items (¥)

Sales revenue 12,000,000

Total current assets 2,570,500

Total current liabilities 2,880,780

Utilities 95,320

Cost of goods sold (COGS) 10,500,000

Equity X

Rent 155,000

Salaries Y

Long-term bank loan 970,500

Depreciation (in 2019) 77,200

Net fixed assets 1,350,500

Total expenses 1,218,400

Interest 123,500

Promotion expenses 30,780

The State Administration of Taxation in China stipulates a standard corporate tax rate of 25%. The fiscal year ends on 31 December for WMF.

(a) State two features of a partnership. [2 marks]

(b) Using the financial information provided in Table 1, calculate the value of X (equity) for WMF

(show all your working). [2 marks]

(c) Using the financial information provided in Table 1, calculate the value of Y (salaries) for

WMF (show all your working). [2 marks]

(d) On a separate piece of paper, construct a profit and loss account for WMF for the year ending

2019. [4 marks]

Suppose there are two ways to reduce water pollution in a river. Society needs to remove 150 units of pollution (q). The marginal cost of the first method is 2q1. The marginal cost of the second method is 3q2. Society wants to use the most cost-effective way to reduce water pollution. How many units of pollution should be removed using the second method? (Round your answer to two decimal places.

1. Most amphibians and all frogs reproduce ___ . Fertilization in frogs occurs ___, using a type of mating called ___.
2. The organs of the female frog reproductive system are: ___ and ____. The organs of the male reproductive system are the ___ and ___. The ___ of the kidney functions as a urogenital duct. The organs of the excretory system are: ___, ___, and ___.
3. In the frog, offspring develop in several stages: the egg first develops into a larval stage, called a ___ which then undergoes a process called ___ to become a small version of the adult form.

which atom is likely to have highest first ionization energy. a. Ar b. Ca c. Cs d.i

2. Two elements reactants to form an ionic solid. If the electron configuration of element A is (N.G.)ns1 and the electron confirguration of B is (N.G.)ns^2np^3 what is the most likely ionic formula for the product? A. A^2B B. A^3B C. AB^2 D. AB^3

A Mexican laboratory developed a new vaccine against COVID-19, which should be stored at an average daily temperature of 8 degrees, with a standard deviation of 3 degrees. If the distribution of daily temperatures is approximately normal. What is the probability that:

A) On a given day the temperature would have been between 6 and 9 degrees

B) The first day a temperature of at most 7.1 degrees is reached is before 6 days

Incorporate the concepts of game theory to international trade and tariffs. Set up two payoff matrices. Set up the first payoff matrix such that the outcome will be harmful to both countries. Set up the second payoff matrix such that the outcome will be beneficial to the United States. From your perspective as a consumer, evaluate the two matrices using current actions by each country to see which most likely benefits domestic consumers.