Problem 3-3Inventories (LO 3.2)Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the followingpurchases of candy during the year:March 110,000 boxes at $1.55$15,500August 1520,000 boxes at $1.6533,000November 2010,000 boxes at $1.7017,000At the end of the year, Lawrence's inventory consisted of 16,000 boxes of candy.a. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method.Ending inventoryCost of goods soldb. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method.Ending inventoryCost of goods sold

Let's calculate Lawrence's ending inventory and cost of goods sold using both the FIFO (First-In,…

Answered: Problem 3-3 Inventories (LO 3.2)…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 16PROB

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Essence of Skunk Fragrances, Limited, sells 4,000 units of its perfume collection each i year at a price per unit of $500. All sales are on credit with terms of 2/10, net 30. The discount is taken by 70 percent of the customers. What is the amount of the company's accounts receivable? Multiple Choice $54,794.52 $83,287.67 $49,315.07 $87671.23 $92.054.79
Problem 3-3 Inventories (LO 3.2) Lawrence owns a small candy store that sells one type of candy. His beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and he made the following purchases of candy during the year: March 1 10,000 boxes at $1.60 $16,000 August 15 20,000 boxes at $1.70 34,000 November 20 10,000 boxes at $1.80 18,000 At the end of the year, Lawrence's inventory consisted of 15,000 boxes of candy. a. Calculate Lawrence's ending inventory and cost of goods sold using the FIFO inventory valuation method. Ending inventory Cost of goods sold b. Calculate Lawrence's ending inventory and cost of goods sold using the LIFO inventory valuation method. Ending inventory Cost of goods sold
Candance owns a small candy store that sells one type of candy. Her beginning inventory of candy was made up of 10,000 boxes costing $1.50 per box ($15,000), and she made the following purchases of candy during the year: March 1 10,000 boxes at $1.60 $16,000 August 15 20,000 boxes at $1.70 34,000 November 20 10,000 boxes at $1.80 18,000 At the end of the year, Candance’s inventory consisted of 15,000 boxes of candy. Her Sales for the year is $53,500. What is her cost of goods sold using the FIFO inventory valuation method? Here is an example of how your answer should look: $13,690
5. Genesis Company is a wholesaler. It purchases 60.000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: Previously, the company had been purchasing 5,000 units of product X per order: a. What is the ordering cost per year under the previous policy? b. The annual carrying cost? c. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy?
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11. ALGEBRA Fatima Sheroud sells children's clothing for The Grasshopper Shoppe. She is paid weekly on a straight commission of 4% on sales of $5,000.00 or less and 5% on sales in excess of $5,000.00. One week Fatima had a gross pay of $594.50. What were her total sales for that week? nts reserved.
Problem 1. Statement of Comprehensive Income The Sunshine Moments Bookstore sells the books used in classes such as workbooks and coloring books. All the enrolled students (150 students) purchased the three prescribed books at P500 each. The books cost P200 each. Also, sales of various school supplies amounted to P500,000. Costs of these school supplies amounted to P250,000. The monthly salary of the bookstore manager is P20,000. The store is manned by one clerk with monthly salary of P6,000. Utilities expense for the year totals P80,000. Of this, 25* is for the small office at the back of the bookstore. Depreciation for store fixtures amounted to P50,000. Prepare the multi-step income statement for the year ended December 31 for Sunshine Moments Bookstore,
Figure 1 Mrs. Brown's Bagel Company manufactures specialty bagels. The company buys flour in 50-pound bags that cost GHS25 each. The company uses 10,000 bags per year, and usage occurs evenly throughout the year. The average cost to carry a 50-pound bag in inventory per year is GHS4, and the cost to place an order is GHS10. The company works 250 days per year. 20. Refer to Figure 1. If Brown's lead time is four working days, the average rate of usage is 40 bags per day, and the company carries a safety stock of 20 bags, the reorder point would be a. 180 bags. b. 140 bags. c. 160 bags. d. 100 bags.
ADDITIONAL EXERCISES: INVENTORY CONTROL MODEL QUESTION 1 Lyla has determined that the annual demand for number 7 screws is 100,000 screws. Lyla who works with her brother's hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, an so on. Furthermore, she estimates that the cost of carrying of one screw in inventory for a year is one half of 1 cent. Assume that the demand is constant throughout the year. It takes approximately 8 working days for an order of number 7 screws to arrive once the order has been placed. The demand for number 7 screws is cor the average, Lyla has observed that her brother's hardware store sells 500 of these screws each day. Because the demand is constant, Lyla believes that she can avoid stockouts completely if she only orders the number 7 screws at the correct time. Determine: ant, and on a. How many number of 7 screws should Lyla…
Question 1 LUMU has demand for 1400 water pumps each year. The cost of a water pump to LUMU is $400. Inventory carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If the owner orders in quantities of 300 or more, he can get a 5% discount on the pumps, Should LUMU accepts the quantity discount?
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