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

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
Gibson Boot Co. sells men’s, women’s, and children’s boots. For each type of boot sold, it operates a separate department that has its own manager. All departments are housed in a single store. In recent years, the children’s department has operated at a net loss and is expected to continue to do so. Last year’s income statements follow. Men’s Department Women’s Department Children’s Department Sales $ 660,000 $ 480,000 $ 200,000 Cost of goods sold (269,500 ) (179,600 ) (100,875 ) Gross margin 390,500 300,400 99,125 Department manager’s salary (60,000 ) (49,000 ) (29,000 ) Sales commissions (114,200 ) (83,600 ) (31,900 ) Rent on store lease (29,000 ) (29,000 ) (29,000 ) Store utilities (12,000 ) (12,000 ) (12,000 ) Net income (loss) $ 175,300 $ 126,800 $ (2,775 ) Required a. Calculate the contribution to profit. Determine whether to eliminate the children’s…
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…
In its first month of operation, Waterway Industries purchased 340 units of inventory for $9, then 440 units for $10, and finally 380 units for $11. At the end of the month, 420 units remained.Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Phantom Profit =?
answer step by step
XYZ Company prepares monthly interim financial statements. The company needs to estimate the month-end inventories because inventory Coints is counted only every month-end. AlIl sales are made on account ano the mark up on cost is 25%. The following information is made available: (Refer to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 Collections made in June 625,000.00 775,000.00 2,150,000.00 1,280,000.00 Inventory, June 1 Purchases during June 1,800,000.00 Your answer
Subject -acounting
SuperStar company operates 50 weeks per year, and its cost of goods sold last year was $2,000,000. The firm carries four items in inventory: two raw materials, two work-in-process items. The following table shows last year's average inventory levels for these items, along with their unit values. Part Number RM₁ RM₂ WIP₁ WIP₂ 7.175 4.175 6.175 Average 5.175 Inventory (units) Value ($/unit) 15,000 10,000 5,000 6,000 How many weeks of supply does the firm have? 3.00 5.00 8.00 12.00
need help with this question
Subject: acounting
Solve questions 7,9,10 with steps please.