On January 1, 2024, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2024:
Cost Retail
Beginning inventory $ 78,660 $ 138,000
Net purchases 102,800 261,000
Net markups 8,000
Net markdowns 12,000
Net sales 224,000
Retail price index, 12/31/2024 1.20
Required:
Calculate the estimated ending inventory and cost of goods sold for 2024 using the information provided.
Note: Do not round intermediate calculations.
Ending Inventory at Retail:
Ending Inventory at Cost:
Cost of Goods Sold:

Answers

Answer 1

To calculate the estimated ending inventory and cost of goods sold for 2024, we need to follow these steps:

1. Calculate the cost-to-retail percentage (CR%) using the beginning inventory cost and retail values:

CR% = Beginning inventory cost ÷ Beginning inventory retail = $78,660 ÷ $138,000 = 0.570

2. Calculate the cost of goods available for sale by adding the cost of beginning inventory, net purchases, and net markups, and subtracting net markdowns:

Cost of goods available for sale = Beginning inventory cost + Net purchases + Net markups - Net markdowns

= $78,660 + $102,800 + $8,000 - $12,000

= $177,460

3. Calculate the ending inventory at retail by multiplying the ending inventory retail value by the retail price index:

Ending inventory at retail = Beginning inventory retail + Net purchases + Net markups - Net markdowns

= $138,000 + $261,000 + $8,000 - $12,000

= $395,000

4. Calculate the estimated ending inventory at cost by multiplying the ending inventory at retail by the cost-to-retail percentage:

Estimated ending inventory at cost = Ending inventory at retail × CR%

= $395,000 × 0.570

= $225,150

5. Calculate the cost of goods sold by subtracting the estimated ending inventory at cost from the cost of goods available for sale:

= $177,460 - $225,150

= -$47,690

Note that the negative cost of goods sold result is due to the use of the dollar-value LIFO method, which assumes that the most recent inventory costs are sold first. In this case, the increase in the retail price index from 1.00 to 1.20 resulted in a decrease in the cost of goods sold.

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Related Questions

While working on a construction site, Jareth notices a syringe lying on the ground. Which type of hazard does this pose to Jareth and the other workers on site?

Answers

Answer: Biological

Explanation: Biological hazards or biohazards are living organisms or substances that can harm humans, animals, or the environment.

Final answer:

A syringe lying around on a construction site poses a biological hazard to the workers. It carries potential risks of infection or disease. Therefore, correct handling and disposal procedures should be followed.

Explanation:

A syringe lying around on a construction site poses a biological hazard to Jareth and his fellow workers. Biological hazards can come from bacteria, viruses, or other microorganisms that could be on the syringe, potentially causing infection or disease. If the syringe has been used, and especially if it is contaminated with bloodborne pathogens like HIV or Hepatitis C, it could be very dangerous. Therefore, it's crucial that workers follow correct disposal procedures and wear appropriate personal protective equipment when handling such objects.

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Question 3 of 20
When is the revenue earned by a company for the sale of goods recognized
and recorded?
OA. always 30 days after the sale
OB. when the customer sells the products
C. when the goods are paid for
OD. when the sale is made
SUBMIT

Answers

Answer: The answer is option D

Explanation:

According to accounting principles, revenues are recognized when the sale is made SUBMIT as it does not depend on the payment that is received by the seller or not. And also it is recognized when a critical event has occurred.

QUESTION 4 Tom started the business on 10.06.2019 with the following. Cash Truck Stocks Bank loan K 10 000 7500 700 2500 Required: record these in general journal including cash. (/5​

Answers

Answer:

Here's the general journal entry for Tom's business starting on 10.06.2019:

Date: 10.06.2019

Account Debit Credit

Cash 10,000

Truck 7,500

Stocks 700

Bank loan 2,500

Explanation:

Tom invested K 10,000 in cash to start the business, which is recorded as a debit to the Cash account.

He also purchased a truck for K 7,500 and stocks for K 700, which are recorded as debits to the Truck and Stocks accounts, respectively.

To finance his business, Tom took out a bank loan for K 2,500, which is recorded as a credit to the Bank loan account.

Note: The accounts used in this entry are assumed based on the information provided. It's important to use appropriate accounts based on the specific nature of the business and transactions

1) according to a recent survey, 30% of credit card holders pay off their balances in full each month. if a random sample of 400 credit card holders is taken, what is the probability that

Answers

Based on the given information, the probability of a credit card holder paying off their balance in full each month is 30% (0.30). Since a random sample of 400 credit card holders is taken, the expected number of cardholders who pay off their balance in full is 0.30 * 400 = 120. Therefore, the probability of a randomly selected credit card holder from the sample paying off their balance in full is 120/400 = 0.30 or 30%.

According to a recent survey, 30% of credit card holders pay off their balances in full each month. If a random sample of 400 credit card holders is taken, the probability that less than 100 pay off their balances in full each month can be determined as follows:Step 1: Determine the mean (μ) and the standard deviation (σ) of the distribution using the following formulas:μ = np = 400 x 0.30 = 120σ = √np(1 - p) = √(400 x 0.30 x 0.70) = 8.66Step 2: Determine the z-score using the formula:z = (x - μ) / σwhere x is the number of credit card holders who pay off their balances in full each month.

For less than 100 pay off their balances in full each month, z = (100 - 120) / 8.66 = -2.31Step 3: Determine the probability using the standard normal distribution table. The area to the left of z = -2.31 is 0.0104.Therefore, the probability that less than 100 pay off their balances in full each month is 0.0104 (or approximately 1.04%).
Based on the given information, the probability of a credit card holder paying off their balance in full each month is 30% (0.30). Since a random sample of 400 credit card holders is taken, the expected number of cardholders who pay off their balance in full is 0.30 * 400 = 120. Therefore, the probability of a randomly selected credit card holder from the sample paying off their balance in full is 120/400 = 0.30 or 30%.

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Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety of medical procedures (operations) that are considered its “products.” The overhead has been separated into three major activities. The annual estimated activity costs and activity bases follow:
Activity Budgeted Activity Cost Activity Base
Scheduling and admitting $432,000 Number of patients
Housekeeping 4,212,000 Number of patient days
Nursing 5,376,000 Weighted care unit
Total costs $10,020,000

Total “patient days” are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (wcu) is a measure of nursing effort used to care for patients. There were 192,000 weighted care units estimated for the year. In addition, Pleasant Stay estimated 6,000 patients and 27,000 patient days for the year. (The average patient is expected to have a a little more than a four-day stay in the hospital.)

Answers

To determine the product costs of Pleasant Stay Medical Inc., we need to allocate the overhead costs to the medical procedures based on their respective activity bases. The activity bases for Pleasant Stay's overhead costs are as follows:

Scheduling and admitting: Number of patients

Housekeeping: Number of patient days

Nursing: Weighted care unit

The first step in determining the product costs is to calculate the predetermined overhead rate for each activity:

Scheduling and admitting: $432,000 / 6,000 patients = $72 per patient

Housekeeping: $4,212,000 / 27,000 patient days = $156 per patient day

Nursing: $5,376,000 / 192,000 weighted care units = $28 per weighted care unit

Next, we can calculate the overhead cost assigned to each medical procedure based on its respective activity usage. For example, if a medical procedure required 10 patients, 20 patient days, and 50 weighted care units, its overhead cost would be calculated as follows:

Scheduling and admitting: 10 patients x $72 per patient = $720

Housekeeping: 20 patient days x $156 per patient day = $3,120

Nursing: 50 weighted care units x $28 per weighted care unit = $1,400

Total overhead cost for this medical procedure: $720 + $3,120 + $1,400 = $5,240

By allocating the overhead costs to each medical procedure based on their respective activity usage, Pleasant Stay can determine the total product cost for each procedure. This information can be useful in determining pricing strategies and identifying areas where cost reductions may be necessary.

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Pradeep is a fresher in a marketing firm. This is his first job and he was asked to make a presentation on the recruitment policy. However, he was quite confused with the different types of factors affecting recruitment methods. Therefore, he went to the HR department
for more clarification. Help him answer the following questions :
Pradeep is a fresher in a marketing firm. This is his first job and he was asked to make a presentation on the recruitment policy. However, he was quite confused with the different types of factors affecting recruitment methods. Therefore, he went to the HR department for more clarification. Help him answer the following questions :
a. Explain to him what are the different internal factors affecting recruitment of a company.
Give examples.
b. He was also quite curious about the external factors affecting recruitment plans in the organisation. Elaborate these with examples

Answers

Internal factors affecting recruitment are those that come from within the organisation and have the potential to affect the hiring process.

Explain the factors affecting recruitment.

i. Human Resource Planning: Human Resource Planning is the first step in the recruitment process. This entails determining the organization's needs for human resources and making a plan to address those needs. ii. Organizational size - The recruitment process is heavily influenced by the size of the organisation. Compared to smaller organisations, large organisations may need a more involved and involved recruitment process. iii. Recruitment policy - A company's hiring practises are governed by its recruitment policy, which outlines the procedures it must follow. The policy may specify details like the kind of applicants to be hired, the compensation package, etc. iv. Company culture: An organization's employees' shared values, beliefs, practises, and behaviours are referred to as the company culture.

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