Ayayai Corp. uses a periodic inventory system. Its records show the following for the month of May, in which 69 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 32 $8 $256
15 Purchase 25 9 225
24 Purchase 41 10 410
Total 98 $891
Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)
Weighted-average unit cost $____
Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)
FIFO LIFO Average Cost
$____ $____ $_______

Answer:

a. Weighted-average unit cost = $9.092

b. We have:

Ending inventory at May 31 using the FIFO method = $290

Ending inventory at May 31 using the LIFO method = $232

Ending inventory at May 31 using the average-cost method = $264

Explanation:

a. Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average unit cost = Total Cost of units of inventory available for sale / Total units of units of inventory available for sale = $891 / 98 = $9.092

b. Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)

Ending inventory in units = Total units of units of inventory available for sale – Units sold = 98 - 69 = 29

Therefore, we have:

Ending inventory at May 31 using the FIFO method = Ending inventory in units * Unit cost of purchases on May 24 = 29 * $10 = $290

Ending inventory at May 31 using the LIFO method = Ending inventory in units * Unit cost of inventory on May 1 = 29 * $8 = $232

Ending inventory at May 31 using the average-cost method = Ending inventory in units * Weighted-average unit cost = 29 * $9.092 = $264

Establishment Industries borrows $890 million at an interest rate of 8.5%. Establishment will pay tax at an effective rate of 21%. What is the present value of interest tax shields if:

Assume the following information for a merchandising company: Net operating income $ 19,000 Variable selling expenses $ 25,000 Cost of goods sold $ 295,000 Fixed administrative expenses $ 50,000 Fixed selling expenses $ 40,000 Variable administrative expenses $ 5,000 What are the company's sales

Bonita Industries purchased machinery for $1030000 on January 1, 2017. Straight-line depreciation has been recorded based on a $82000 salvage value and a 5-year useful life. The machinery was sold on May 1, 2021 at a gain of $27500. How much cash did Bonita receive from the sale of the machinery?
a. $138,000
b. $162,000
c. $198,000
d. $258,000

Prior to recording adjusting entries, the Office Supplies account had a $490 debit balance. A physical count of the supplies showed $175 of unused supplies available. The required adjusting entry is: debit/credit [ Select ] to [ Select ] account for [ Select ] debit/credit [ Select ] to [ Select ] account for [ Select ]

What are the solution to unknown gunmen problem

A company purchased equipment valued at $66000. It traded in old equipment for a $9000 trade in allowance. The old equipment cost $44000 and accumulated depreciation of $36000. This transaction has commercial substance. What is the recorded value of the new equipment?

Zero-coupon risk-free bonds are available with the following maturities and yield rates (effective, annual):

Maturity(in years) Yield %
1 6
2 6.5
3 7

You need to buy corn for producing ethanol. You want to purchase 10,000 bushels one year from now, 15,000 bushels two years from now, and 20,000 bushels three years from now. The current forward prices, per bushel, are $3.89, $4.11, and $4.16 for one, two, and three years respectively. You want to enter into a commodity swap to lock in these prices. Which of the following sequences of payments at times one, two, and three will NOT be acceptable to you and to the corn supplier?

a. $38,900; $61,650; $83,200
b. $39,083; $61,650; $82,039
c. $40,777; $61,166; $81,554
d. $41,892; $62,340; $78,997
e. $60,184; $60,184; $60,184 73.2

Consider a firm that has fixed costs of $300. The firm also faces a marginal cost of $600 for producing the first unit of output, $200 for producing the second unit, and $100 for producing the third unit. What is the average total cost of producing three units of output?

The material cost per equivalent unit using the weighted average costing method is calculated as a.total material costs to account for divided by equivalent units for materials. b.total material costs to account for divided by number of partially completed units for materials

Given the following information, calculate the funds from operation (FFO).

Net income: $1,200,000
Gain/losses from infrequent and unusual events: $0
Amortization of tenant improvements: $120,000
Amortization of leasing expenses: $75,000
Depreciation (real property): $2,675,000.

a. $195,000
b. $1,395,000
c. $2,870,000
d. $4,070,000

Joseline waited until December 12, 2019, to file her 2018 Form 1040 return. She did not request an extension. Her balance due for 2018 is $461. What is her failure to file penalty

Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has ​$7 comma 500 for his CD investment. If the bank is offering a 5 ​% interest​ rate, compounded​ annually, how much will the CD be worth at maturity if Jonathan picks a

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Depreciation on equipment for the year is $5,640.
Journalize the transaction if the company prepares adjustments once a year.
(a) Record the journal entry if the company prepares adjustments once a year.*
(b) Record the journal entry if the company prepares adjustments on a monthly basis.*
*Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
CHART OF ACCOUNTS
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
16 Equipment
17 Accumulated Depreciation-Equipment
LIABILITIES
21 Accounts Payable
22 Notes Payable
23 Unearned Fees
24 Wages Payable
25 Interest Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Advertising Expense
52 Insurance Expense
53 Interest Expense
54 Wages Expense
55 Supplies Expense
56 Utilities Expense
57 Depreciation Expense
59 Miscellaneous Expense
General Journal
(a) Record the journal entry on December 31, if the company prepares adjustments once a year.*
(b) Record the journal entry on December 31, if the company prepares adjustments on a monthly basis.*
*Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT
1
2
3
4

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below.
Account Title Debits Credits
Cash 45,650
Accounts receivable 58,000
Supplies 1,850
Inventory 77,000
Note receivable 29,400
Interest receivable 0
Prepaid rent 2,700
Prepaid insurance 0
Office equipment 94,000
Accumulated depreciation—office equipment 35,250
Accounts payable 37,000
Salaries and wages payable 0
Note payable 71,400
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 23,000
Sales revenue 233,000
Interest revenue 0
Cost of goods sold 104,850
Salaries and wages expense 20,100
Rent expense 14,850
Depreciation expense 0
Interest expense 0
Supplies expense 1,350
Insurance expense 6,200
Advertising expense 3,700
Totals 459,650 459,650
Information necessary to prepare the year-end adjusting entries appears below.
1) Depreciation on the office equipment for the year is $11,750.
2) Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,650.
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4) On March 1, 2018, the company lent a supplier $29,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
5) On April 1, 2018, the company paid an insurance company $6,200 for a two-year fire insurance policy. The entire $6,200 was debited to insurance expense.
6) $980 of supplies remained on hand at December 31, 2018.
7) A customer paid Pastina $1,920 in December for 1,600 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
8) On December 1, 2018, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,350 per month.

Curtis purchased stock with an initial share price of $140, and sold it when the share price was $119. While he owned the stock, he earned $10 in dividends.

What was his total percentage return on the investment?


-17.65%

-15.00%

-9.24%

-7.86%

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The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities 11,000 units
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
Required:
The number of units of CK74 that Ruby must sell to break- even is:________.
a. 12,900.
b. 4,577.
c. 7,095.
d. 6,050.

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Pretax accounting income ...............................$1,000,000
Taxable income ...................................................(600,000)
Difference $ 400,000 Book-tax differences:
Interest on municipal income ...........................$ 100,000
Lower financial depreciation................................300,000
Total......................................................................$ 400,000
Cavan’s effective Federal and state income tax rate for year 1 is 30%. The depreciation difference will reverse equally over the next three years at enacted tax rates as follows.
Year Tax Rate Year 2 30% Year 3 25% Year 4 25%
In Cavan’s year 1 income statement, the deferred portion of its provision for income taxes should be: __________.
a. $120,000
b. $80,000
c. $100,000
d. $90,000

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