View Policies Show Attempt History Current Attempt in Progress Ayayai, a coffee-mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year-end, Ayayai had accumulated Cost of Goods Sold in the amount of $270,000. Ayayai's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $34,000 and $40,000, respectively, on December 31. Ayayai does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December 31 RM Inventory (all direct materials) is $105,000. Ayayai utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $2.25/direct labor hour. Budgeted MOH at the beginning of the year was $175,000; actual MOH costs incurred by the end of the year were $216,000. Actual direct labor hours used were 86,000. (a) Your Answer Correct Answer

View Policies Show Attempt History Current Attempt in Progress Ayayai, a coffee-mug producer, generally conducts over half of its business in the last month of the calendar year due to holiday sales. By the end of December, its fiscal year-end, Ayayai had accumulated Cost of Goods Sold in the amount of $270,000. Ayayai's business model is to maintain minimal WIP Inventory and FG Inventory, so these two accounts had balances of just $34,000 and $40,000, respectively, on December 31. Ayayai does hold a fair amount of RM Inventory, however, so it will be able to quickly fulfill its orders. As a result, its December 31 RM Inventory (all direct materials) is $105,000. Ayayai utilizes a normal costing system, in its effort to have timely applied MOH information for each custom job, and its budgeted MOH rate is $2.25/direct labor hour. Budgeted MOH at the beginning of the year was $175,000; actual MOH costs incurred by the end of the year were $216,000. Actual direct labor hours used were 86,000. (a) Your Answer Correct Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give solution in image format thanku
Please do not give solution in image format thanku
Urmila ben
is this correct? Current Attempt in Progress Your answer is incorrect. The records of Shamrock's Boutique report the following data for the month of April. Sales revenue $183,000 Purchases (at cost) $8,000 Sales returns 4,400 Purchases (at sales price) 187,000 Additional markups 18,200 Purchase returns (at cost) 4,400 Markup cancellations 3,200 Purchase returns (at sales price) 6,500 Markdowns 19,100 Beginning inventory (at cost) 89,500 Markdown cancellations 6,200 Beginning inventory (at sales price) 97,000 Freight on purchases 2,400 Compute the ending inventory by the conventional retail inventory method. Ending inventory using conventional retail inventory method 61860
Subject : Accounting
Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted of 70 suitcases purchased at $50 each. Ayayai uses a perpetual inventory system. Ayayai has experienced a 5% return rate historically. During the month of July, the following merchandising transactions occurred: July 2Purchased 75 suitcases on account for $70 each from Sandhill Ltd., terms 2/10, n/30. 3Received a $280 credit from Sandhill after returning four suitcases because they were damaged. 6Sold 60 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45. 7Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory. 9Sold three suitcases-the right model number this time-on account to Satchel World Inc. for $100 each, with an individual cost of $70, terms n/30 11Paid Sandhill the balance owing 13Sold 30 suitcases on account to The Going Concern Limited for…
Subject -acounting
Subject: acounting
Please do not give solution in image format thanku
What is The inventory, turnover ratio and days to sell inventory ratio? (a) Larkspur Hands Ltd. is a retailer specializing in hand care products. The company donates twenty percent of its profits to local charities. Larkspur Hands uses the periodic inventory system and the following limited information relates to Larkspur Hands Ltd. `s inventory transactions during the month of May: Units sold were priced at $63.00. Calculate Larkspur Hands' cost of goods sold, gross margin, and ending inventory for the month of May using FIFO. Cost of goods sold $ Gross margin $ Ending inventory $
Subject: acounting
Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $119,000. The following information for the month of August was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $ 212,000 4,500 343,000 8,300 3,600 In addition, the controller is aware of $12,000 of inventory that was stolen during August from one of the company's warehouses. 1. Estimated ending inventory 2. Estimated ending inventory Required: 1. Calculate the estimated inventory at the end of August, assuming a gross profit ratio of 25%. 2. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%.