Answer:
Effect on income= $11,280 increase
Explanation:
Giving the following information:
A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit.
Because it is a special order, we will take into account only the differential fixed costs.
First, we need to calculate the total unitary cost and differential fixed costs:
Total unitary variable cost= 5.80 + 4 + 2.9 + 1.9
Total unitary variable cost= $14.6
Total fixed cost= $16,000
Now, we can determine the effect on income:
Effect on income= 2,200*(27 - 14.6) - 16,000
Effect on income= $11,280 increase
The following information was available from the inventory records of Sheffield Corp. for January: Units Unit Cost Total Cost Balance at January 1 9200 $9.73 $89516 Purchases: January 6 6400 10.31 65984 January 26 7900 10.71 84609 Sales January 7 (7700 ) January 31 (11300 ) Balance at January 31 4500 Assuming that Sheffield does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar
Answer:
$45,990
Explanation:
The Weighted Average Cost Method, calculates a new Unit Cost with every purchase that is made. This is applicable to perpetual Inventory method. In this case we are required to use the periodic Inventory method (Sheffield does not maintain perpetual inventory records). Thus our Unit Cost is calculated from Inventory available for Sale.
Step 1
Units Available For Sales Calculation :
Opening Balance 9,200
Add Purchases (6,400 + 7,900) 14,300
Units Available for Sale 23,500
Less Units Sold (7700 + 11300) (19,000)
Ending Inventory Units 4,500
Step 2
Unit Cost = Total Cost ÷ Units Available for Sale
= ($89,516 + $65,984 + $84,609) ÷ 23,500
= $10.22
Step 3
Ending Inventory = Units in Stock × Unit Cost
= 4,500 × $10.22
= $45,990
Jill runs a factory that makes lie detectors in Little Rock,Arkansas.This month,Jill's 34 workers produced 690 machines.Suppose Jill adds one more worker and,as a result,her factory's output increases to 700.Jill's marginal product of labor from the last worker hired equals ________.A) 10B) 20C) 690D) 700E) None of the above answers is correct.
Answer:
1077927
Explanation:
*$-$)7794459०२2८जेइकेप्ग्व्व्ज्सोबीओस्क्ब्सु
स्ज्व्ह्जेहेगेओज्स्ज्स ज्श्स्सीज्झ्र्क
When screening prospective new ventures, venture capital firms must consider the nature of the proposed industry Which of the following is not part of the screening of the proposed industry?
a. market attractiveness
b. managerial references
c. potential size
d. technology
e. threat resistance
Answer:
B
Explanation:
Venture capital firms are firms that invest in start up firms.
Venture capital firms use large amount of capital to fund their operations and so must be assured of the market attractiveness of the firm before undertaking the project to ensure profitability.
Potential size of the new venture has to be determined so as to ascertain the financial resources that would be needed.
Threat of resistance can reduce profitability and should also be considered.
Mary invested $20,000 to open a bakery business. The cost of making one muffin is $1. Assuming that the sales reach 1000 pieces, she wishes to earn 10% as a return on investment. What is the target return price of product?
The target return price will be $
Answer:
The target return price will be $2
Explanation:
From the information given,
For the muffin product:
The sales made = 1000
Cost for 1 muffin = $1
Therefore, total money made
No of sales X cost price =
1000 X $1 = $1000
The amount invested on the business = $20,000
She want to earn 10% on the investment =
10% of $20,000 = $2000
The target return price would be,
Return on investment / no of sales made
= $2000/ 1000 = $2
Answer:
Did you ever figure it out because I saw it was 2 bucks.
Explanation:
On July 1, 2018, Larkin Co. purchased a $440,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2018 as follows: Demolition of existing building on site Legal and other fees to close escrow Proceeds from sale of demolition scrap $65,000 13,500 9,400
What would be the balance in the land account as of December 31, 2018?
a) $440,000.
b) $505,000.
Answer:
The balance in the land account as of December 31, 2018 woulf be $509,100.
Explanation:
Note: The data in the question are merged together. They are therefore sorted before answering the question by representing the question as follows:
On July 1, 2018, Larkin Co. purchased a $440,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2018 as follows:
Demolition of existing building on site = $65,000
Legal and other fees to close escrow = $13,500
Proceeds from sale of demolition scrap = $9,400
What would be the balance in the land account as of December 31, 2018?
The explanation to the answer is now given as follows:
The balance in the land account as of December 31, 2018 can be calculated using the following formula:
Balance in the land account as of December 31, 2018 = Purchase price + Demolition of existing building on site + Legal and other fees to close escrow - Proceeds from sale of demolition scrap ..................... (1)
Substituting the relevant values from the question into equation (1), we have:
Balance in the land account as of December 31, 2018 = $440,000 + $65,000 + $13,500 - $9,400 = $509,100
Therefore, the balance in the land account as of December 31, 2018 woulf be $509,100.
Estes Park, Inc., has declared a dividend of $6.20 per share. Suppose capital gains are not taxed, but dividends are taxed at 30 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. The company's stock sells for $113 per share, and the stock is about to go ex-dividend. What do you think the ex-dividend price will be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
the ex-dividend price is $108.66
Explanation:
The computation of the ex-dividend price is shown below:
The Aftertax dividend is
= Dividend × (1 - tax rate)
= $6.20 (1 - 0.30)
= $4.34
Now the exdividend price is
= Selling price of a share - after tax dividend
= $113 - $4.34
= $108.66
hence, the ex-dividend price is $108.66
We simply applied the above formula so that the correct value could come
And, the same is to be considered
ABC Company issues $425,000 of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below:
Cash Interest Change in Carrying
Date Paid Expense Carrying Value Value
01/01/2021 $599,391
06/30/2021 $14,875 $11,988 $-2,887 596,504
12/31/20211 4,875 11,930 -2,945 593,559
What is the original issue price of the bonds?
a. $592,557
b. $440,000
c. $590,534
d. $459,800
Answer:
$599,391
Explanation:
Based on the information given we were told that the bonds amount of $425,000 which is the Face Value of Bonds were issued by the company on January 1, 2021 which means that ORIGINAL ISSUE PRICE of the bonds will be the Carrying Value or the Issues Value of Bonds of the amount of $599,391 that was issued on the same date the Company issues the face value bonds of the amount of $425,000 which is January 1, 2021 ( 01/01/2021).
Therefore the original issue price of the bonds will be $599,391
Identify the like terms.
7y + 5x - 9 + 2y - 12x
Combine like terms.
9k - 2 + 3k
Vocabulary:
Expression, equation, like terms, combine, variable, coefficient, constant.
Mini Lesson:
Model Examples:
Simplify the expression.
5xy - 2xy + 5k - 3 + 8k + 9
Simplify the expression.
2 ( x - 5 ) - 3y + 6x
Each person in a group buys a ticket, a medium drink, and a large popcorn. Write an expression in simplest form that represents the amount of money the group spends at the movie.
Independent Practice:
Mild:
Identify the like terms.
6xy + 6y - 5xy + 3
Simplify the expression:
7z - 5 + 6z
Simplify the expression:
6x2 + 3x + 2x2 + 7x + 2
Medium: Simplify the expression.
6 ( 2y - 5 ) + 2y
5x2y + 12x + 6x2y + 15 + 2k
Spicy:
Write an expression in simplest form that represents the earnings for washing and waxing x cars and y trucks.
You apply gold foil to a piece of red poster to make the design shown.
Write an expression in simplest form that represents the area of the gold foil.
Find the area of the gold foil when x = 3.
Answer:
Explanation:
7
+
5
−
9
+
2
−
1
2
7y+5x-9+2y-12x
7y+5x−9+2y−12x
Simplify
1
Combine like terms
7
+
5
−
9
+
2
−
1
2
{\color{#c92786}{7y}}+5x-9+{\color{#c92786}{2y}}-12x
7y+5x−9+2y−12x
9
+
5
−
9
−
1
2
{\color{#c92786}{9y}}+5x-9-12x
9y+5x−9−12x
2
Combine like terms
3
Rearrange terms
Solution
−
7
+
9
−
9
Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note, the 1st quarter is Jan, Feb, and Mar; 2nd quarter Apr, May, Jun; 3rd quarter Jul, Aug, Sep; and 4th quarter Oct, Nov, Dec.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Last year 130 150 155 215 225 230 175 165 155 230 255 280
This year 155 155 205 220 245 250
Answer:
665
Explanation:
The computation fo the demand expected for the third quarter is as follows:
Oct 230
Nov 255
Dec 280 sum 765
Jan 155
Feb 155
March 205 sum 515
April 220
May 245
June 250 sum 715
Mow the third quarter moving average is
= (765 + 515 + 715) ÷ 3
= 665
Present owners of a network good receivegreater benefits as new buyers purchase the good. How do network externalities help a monopoly retain its market power? By exploiting network externalities, a firm can become a natural monopoly. If there are strong network externalities associated with a good, other goods are poor substitutes for it. Goods with network externalities are more likely to receive a government patent.
Answer:
How network externalities help a monopoly retain its market power:
By exploiting network externalities, a firm can become a natural monopoly.
Explanation:
In economics, Network externality describes a situation whereby the demand for a product depends on the demand of other consumers buying that product. This implies that the value of the product to the consumer is increased because others are joining as buyers. The present owners of a network product will actually gain more benefits as new buyers purchase the good because the fixed costs of rendering the service or providing the good are not increased with increasing buyers, but remain the same over a relevant range.
The Work in Process inventory account of a manufacturing Corporation shows a balance of $5,446 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $880 and $380 for materials, and charges of $660 and $1,160 for direct labor. From this information, it appears that the Corporation is using a predetermined overhead rate, as a percentage of direct labor costs, of:
Answer:
130%
Explanation:
The computation of the predetermined overhead rate is as follows
Manufacturing overhead is
= $5,446 - ($880 + $360 + $660 + $1,160)
= $2,366
Total direct labor is
= $660 + $1,160
= $1,820
Now as we know that
Manufacturing overhead = Predetermined overhead rate × Direct labor
It can be rewrite as
Predetermined overhead rate = Manufacturing overhead ÷ Direct labor
= $2,366 ÷ $1,820
= 130%
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the company decides to purchase 100 shares at a cost of $38 per share. Record the purchase of treasury stock.
Answer:
Dr Treasury Stock 3,800
Cr Cash 3,800
Explanation:
Preparation of the journal entry to Record the purchase of treasury stock.
Based on the information given we were told that the Clothing Company issues 1,000 shares which means that if the company made decision to purchase 100 shares at the amount of $38 per share later in the year the journal entry to Record the purchase of treasury stock will be :
Dr Treasury Stock 3,800
Cr Cash 3,800
(100 Shares x $38.00 per share)
(Being to record the purchase of treasury stock)
You decide to invest in a portfolio consisting of 40 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio?
Probability of State Return if State Stock
State of Economy of Economy Stock A Stock B Stock C
Recession -20 -18.2% 3.6% -22.5%
Normal -51 10.8% 8.2% 16.8%
Boom -29 28.0% 15.5% 31.4%
a. 11.14%.
b. 13.73%.
c. 12.59%.
d. 71.62%.
e. 10.65%.
Answer: e. 10.65%.
Explanation:
First find the expected return of the individual stocks;
Stock A = (0.2 * - 0.182) + (0.51 * 0.108) + (0.29 * 0.28) = 9.99%
Stock B = (0.2 * - 0.036) + (0.51 * 0.082) + (0.29 * 0.155) = 7.96%
Stock C = (0.2 * - 0.225) + (0.51 * 0.168) + (0.29 * 0.314) = 13.17%
Expected return of portfolio = ∑(Stock expected return * weight)
= (0.4 * 0.0999) + (0.3 * 0.0796) + (0.3 * 0.1317)
= 10.65%
Question is missing detail. Stock B return in recession is negative figure.
During 2020, LAL Corp. had the following cash flows: (1) received cash of $5,000 billed to a customer in 2020; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issue; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $50,000 from a local bank; and (6) purchased its own shares of common stock for $15,000. What is LAL's net cash flows from financing activities for 2020
Answer: $21,000
Explanation:
Financing activities refer to those that a company engages in, in relation to capital needed to run the affairs of the business which means it included Equity and Debt.
Financing Activities: Interest paid, dividends paid, money borrowed from bank, stock repurchase
Net cash flows from financing = Money borrowed from bank - Interest paid - dividends paid - Stock repurchase
= 50,000 - 6,000 - 8,000 - 15,000
= $21,000
Westsyde Tool Company is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 6%, and the expected return on the market portfolio is 12%. Analysts expect the price of Westsyde Tool Company shares to be $29 a year from now. The beta of Westsyde Tool Company's stock is 1.2. Using a one-period valuation model, the intrinsic value of Westsyde Tool Company stock today is ________.
Answer:
$27.39
Explanation:
The required return = Risk-free rate + Beta*(market rate- risk-free rate)
The required return = 6% + 1.2*(12%-6%)
The required return = 6% + 7.2%
The required return = 13.2%
Intrinsic value = Future dividend *Present value of discounting factor + Value*Present value of discounting factor
Intrinsic value = $2/1.132 + $29/1.132
Intrinsic value = $1.76678 + $25.6184
Intrinsic value = $27.38518
Intrinsic value = $27.39
Thus, the intrinsic value of Westsyde Tool Company stock today is $27.39
What is the fundamental economic problem?
..........................
Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: Multiple Choice the same as the units started during the period. the same as the units completed. less than the units started during the period. less than the units completed.
Answer:
less than the units started during the period
Explanation:
The computation of the number of equivalent units of conversion cost would be
units completed during the year 100%
ending work in process 70%
As it can be seen that it is lower than the units that started during the period
Therefore the correct option is c
Hence, all the other options are incorrect
g Machinery was purchased for $400000 on January 1, 2022. Freight charges amounted to $14000 and there was a cost of $36000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $50000 salvage value at the end of its 4-year useful life. What is the amount of accumulated depreciation at December 31, 2023 if the straight-line method of depreciation is used
Answer:
Accumulated depreciation at December 2023 = $200000
Explanation:
The cost of a fixed asset should be reported as the cost of buying the asset plus any cost incurred in bringing the asset in the location and condition necessary for its use as deemed by the management. Thus, the cost of machinery as reported will be,
Machinery Cost = 400000 + 14000 + 36000 = $450000
The straight line method charges a constant depreciation expense through out the useful life of the asset. The formula for depreciation under this method is,
Depreciation expense per year = (Cost - Salvage value) / Estimated useful life
Depreciation expense - 2022 = (450000 - 50000) / 4
Depreciation expense - 2022 = $100000
Depreciation expense - 2023 = (450000 - 50000) / 4
Depreciation expense - 2023 = $100000
Accumulated depreciation at December 2023 = 100000 + 100000 = $200000
Perpetual Inventory Using Weighted AverageBeginning inventory, purchases, and sales for J101 are as follows:Oct. 1 Inventory480 units at $1413 Sale280 units22 Purchase600 units at $1629 Sale450 unitsa. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places.$fill in the blank 1160.44 per unit
Answer:
The weighted average unit cost after the October 22 purchase is $15.50
Explanation:
Under the weighted average method of inventory valuation, the closing inventory is valued at weighted average cost.
It can be calculated as follow
Weighted average unit cost = Inventory Balance / Numbers on units in Inventory
_________________________________ Balance
Date __ Details ___Units_ Rate__Value _ ( Units_Value __ WA cost )
Oct. 1 _ Inventory__480__ $14 __$6,720_( 480__$6,720__ $14 )
Oct.13 _Sale______280__ $14 __$3,920_( 200__$2,800__ $14 )
Oct.22 _Sale_____ 600__ $16 __$9,600_( 800__$12,400__$15.5 )
Placing outstanding values in the above formula
Weighted average unit cost = $12,400 / 800 units = $15.50 per unit
Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. a. Determine Rivera's civil fraud penalty. $fill in the blank 1 b. Rivera pays the penalty five years after committing the fraudulent act. Compute the present value of Rivera's penalty. Assume her after-tax rate of return on available cash is 9%. The present value factor for 5 years and 9% is 0.6499. $fill in the blank 2
Answer:
Rivera
a. Rivera's civil fraud penalty is:
$5,000 ($45,000 - $40,000)
b. Present value of Rivera's penalty is:
$3,249.50 ($5,000 * 0.6499)
Explanation:
a) Data and Calculations:
Income tax underpayment = $45,000
Underpayment due to fraud = $40,000
Civil fraud penalty = $5,000 ($45,000 - 40,000)
Rate of return = 9%
Number of years = 5 years
Present value factor = 0.6499
b) The present value of the penalty represents the $5,000 discounted to its present value using the discount factor of 0.6499. This results into $3,249.50 after 5 years at an interest rate of 9% per annum.
MacKenzie Corporation currently has 10 million shares of stock outstanding at a price of $40 per share. The company would like to raise money and has announced a rights issue. Every existing shareholder will be sent one right per share of stock that he or she owns. The company plans to require ten rights to purchase one share at a price of $40 per share. How much money will it raise if all rights are exercised
Answer: $40,000,000
Explanation:
There are 10 million shares and the company plans to require ten rights to purchase one share.
Number of shares to be purchased will be;
= 10,000,000/10
= 1,000,000 shares
Shares are to be sold at $40 so;
= 1,000,000 * 40
= $40,000,000
What are chemical contaminants?
Answer:
chemical contaminants are chemical toxic plants and anmials in water ways.
Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year The cost of goods available for sale is:________
Beginning inventories:
Finished goods $ 30,000
Estimated total manufacturing overhead at the beginning of the year $ 568,000
Estimated direct labor-hours at the beginning of the year 32,000 direct labor-hours
Results of operations:
Raw materials (all direct) requisitioned for use in production $ 501,000
Direct labor cost $ 683,000
Actual direct labor-hours 33,000 direct labor-hours
Manufacturing overhead:
Indirect labor cost $ 176,000
Other manufacturing overhead costs incurred $ 420,000
Selling and administrative:
Selling and administrative salaries $ 219,000
Other selling and administrative expenses $ 346,000
Cost of goods manufactured $ 1,567,000
Sales revenue $ 2,498,000
Cost of goods sold (unadjusted) $ 1,376,000
The net operating income is:
$892,750
$765,750
$546,750
$1,111,750
Answer:
c
Explanation:
You have an absolutely brilliant child who is six years old and will be attending a private college in twelve years. You know that a four-year college now costs at least $30,000 per year, including tuition, books, and room and board. The cost of sending a child to college has increased by 7 percent per year, and you believe this will be true for the next twelve years. How much will the annual tuition be when your child is eighteen
Answer:
$270,263
Explanation:
Costs = $30,000 per year
Cost for 4 years = $30000*4 = $120,000
A = P(1+r/100)^n
A = 120000*(1+0.07/100)^12
A = 120000*2.252191
A = 270262.92
A = $270,263
Therefore, the annual tuition when the child is eighteen will be $270,263.
person who provides services directly to individuals
Answer:
I just need to respond answers LUL
Explanation:
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REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Crystal Products allows customers to use bank credit cards to charge purchases. The bank used by Crystal Products processes all bank credit cards in exchange for a 3% processing fee. All credit card receipts deposited are credited to the company account on the day of deposit. Assume that on January 18, Crystal Products sold and deposited $19,000 worth of bank credit card receipts. Prepare the general journal entry to record this transaction.
Answer:
January 18, 202x, merchandise sold using credit cards
Dr Cash 18,430
Dr Credit card fees 570
Cr Sales revenue 19,000
When credit card sales are deposited immediately (e.g. VISA, MasterCard) they are considered cash sales. When the credit card companies delays the deposit, they are considered accounts receivable, e.g. American Express.
what is a living will?
A. legal documents that gives directives on how things should be given to beneficiaries when you die.
B. legal document that begins with “this is my last will and testament”
C. legal document that states end of life medical care
D. legal document that names executors and provides codicils.
Answer:
I think it's B)
Explanation:
sorry if I get it wrong
Answer:
c is the correct answer
Explanation:
Serotta Corporation is planning to issue bonds with a face value of $390,000 and a coupon rate of 16 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
1. Provide the journal entry to record the issuance of the bonds January 12. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year.3. What bonds payable amount will Serotta report on this year's December 31 balance sheet?
Answer and Explanation:
Before recording the journal entries following calculations need to be made
Maturity amount $390,000
Interest periods 8
The Market rate of interest 3%
Now Quarterly interest paid $15,600 ($390,000 × 16% ×3 ÷ 12) Annuity factor for 8 periods 7.0197
And, Present value factor for 8th period 0.7894
So,
The Present value of Interest $109,507
Add: And, the Present value of Maturity $307,866
Issue price $417,373
Amortization table
Date Interest paid Interest Premium Unamortized Carrying
Expense Amortized Premium Value
01.01 Yr1 $27,373 $417,373
31.03 Yr 1 $15,600 $12,521 $3,079 $24,294 $414,294
30.06 Yr 1 $15,600 $12,429 $3,171 $21,123 $411,123
30.09 Yr1 $15,600 $12,334 $3,266 $17,857 $407,857
31.12 Yr 1 $15,600 $12,236 $3,364 $14,493 $404,493
Now the Journal entries
For Jan 1
Cash account Dr. $417,373
To Bonds payable $390,000
To Premium on bonds payable $27,373\
(Being the bond payable is recorded)
On Mar 31
Interest expense Dr. $12,521
Premium on bonds payable Dr. $3,079
To Cash $15,600
(Being cash paid is recorded)
On Jun 30
Interest expense Dr. $12,429
Premium on bonds payable Dr. $3,171
To Cash $15,600
(Being cash paid is recorded)
On Sep 30
Interest expense Dr. $12,334
Premium on bonds payable Dr. $3,266
To Cash $15,600
(being cash paid is recorded)
On Dec 31
Interest expense Dr. $12,236
Premium on bonds payable Dr. $3,364
To Cash $15,600
(being cash paid is recorded)
PLEASE HELP ASAP!!!!!
Type the correct answer in the box. Spell all words correctly.
At which stage of advertising is the customer motivated to take action?
The customer is motivated to take action at the
_______ stage of advertising.
Explanation:
I think 5 th stage is the correct answer
pls mark me as BRAINLIAST
Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 (Actual) (Budgeted) (Budgeted) (Budgeted)Cost of goods sold $ 30,000 $ 60,000 $ 80,000 $ 50,000 Desired ending inventory levels are 34% of the following month's projected cost of goods sold. Budgeted purchases of inventory in February Year 2 would be:
Answer:
Budgeted purchases of inventory in February Year 2 would be $69,800
Explanation:
___________CGS _Ending Inventory_Beginning Inventory _ Purchases
Dec. Year 1 _$30,000 _ $20,400 _____ $0 _____________$0
Jan. Year 2 _$60,000 _$27,200 _____ $20,400_________$66,800
Feb. Year 2 _$80,000_ $17,000 ______$27,200_________$69,800
Use following formula to calculate the Purchases
Cost of Goods sold = Beginning Inventory + Purchases - Ending Inventory
Purchases = Cost of Goods sold - Beginning Inventory + Ending Inventory
Placing value of Jan Year 2
Purchases = $60,000 - $20,400 + $27,200 = $66,800
Placing value of Feb Year 2
Purchases = $80,000 - $27,200 + $17,000 = $69,800