The following information is available for an entity for the quarter ended March 31 of the current year:

The gross profit margin is normally 200 of sales. What is the estimated cost of the merchandise inventory at March 31 of the current year?

• A.US $20,000
• B.US $40,000
• C.US $60.000
• D.US $180,000

Correct Answer: C

The gross profit margin percentage is given as 20% of sales. Hence, cost of goods sold must have been US $160,000 [$:4110,000 sales x1_0 - 2)]. The estimated cost of the inventory at March 31 is computed as follows:

An entity had the following opening and closing inventory balances during the current

The following transactions and events occurred during the current year:
US $300,000 of raw materials were purchased, of which US $20,000 were returned
because of defects. US $600,000 of direct labor costs were incurred.
US $750,000 of production overhead costs were incurred.

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A retail organization mistakenly did not include S10.000 of inventory in the physical count at the end of the year. What was the impact to the organization's financial statements?

• A.Cost of sales is overstated and net income is understated.
• B.Cost of sales and net income are understated
• C.Cost of sales and net income are overstated
• D.Cost of sales is understated and net income is overstated.

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Why not A?

Oop  

Mar 23, 2023

Company B's bank requires a compensating balance of 20% on a US $100.000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?

• A.5.83%
• B.7.00%
• C.8.40%
• D.8.75%

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Which of the following types of analytics would be used by an organization to examine metrics by business units and identity the most profitable business units?

• A.Predictive analytics
• B.Diagnostic analytics
• C.Prescriptive analytics
• D.Detailed analytics

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If the manufacturing company uses the FIFO first-in, first-out) method, the equivalent units for conversion costs in Department 2 for the current month would be:

• A.72,500
• B.74,000
• C.85,200
• D.86,600

Correct Answer: B

The FIFO method distinguishes between work done in the prior period and work done currently. The total FIFO equivalent units equals the work done currently on beginning work-in-process, plus the work done on ending work-in-process, plus all units started and completed currently. Hence, total FIFO equivalent units equals 740001 10% x 14,000 units in BWIP) + 60% x 8,500 units in EWIP) + [100% 81,500 spoiled and transferred - 14,000 units in BWIP)] A company harvests, packs, and ships all of its own produce. The company operates three packing lines. A summary of completed inventory costs is as follows:

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