Answer:
real-world changes in which no one is harmed are rare or nonexistent.
Explanation:
Pareto optimality, also known as Pareto efficiency was named after Vilfredo Pareto and it refers to an economic system in which no additional changes can make a person better off without making at least one person worse off.
This ultimately implies that, when there's a maximum level of efficiency in the allocation of goods and resources in an economy and no further changes can be made without making at least one person worse off. Thus, it can only exist in theory but not in reality.
The main reason the usefulness of Pareto optimal policies is limited as a policy guide is that real-world changes in which no one is harmed are rare or nonexistent because the goods and resources cannot be reallocated.
Abby and Jason are building a new house. They obtained a construction loan of $100,000, which will be rolled over into a conventional 20-year mortgage when the house is complete in 14 months. Simple interest rate of 0.5% per month will be charged on the construction loan. The 20-year mortgage will carry a 6% interest rate with monthly payments (so, it is compounded monthly). What is the monthly payment that Abby and Jason will make
Answer:
Abby and Jason
The monthly mortgage payment that Abby and Jason will make is:
= $766.58.
Explanation:
a) Data and Calculations:
Construction loan = $100,000
Period of construction = 14 months
Simple interest rate = 0.5% per month
Principal amount after 14 months = $ 107,000 ($100,000 * 0.5% * 14)
Mortgage loan = $107,000
Mortgage period = 20 years
Interest rate = 6% compounded monthly
Terms of payment = monthly
From an online financial calculator, the monthly payment for the mortgage will be:
Monthly Pay = $766.58
Monthly Total
Mortgage Payment $766.58 $183,979.50
Total of 240 Mortgage Payments = $183,979.50
Total Interest = $76,979.50
Mortgage Payoff Date Mar. 2041 if the mortgage commenced on March 1, 2021.
Taylor Company began manufacturing operations on January 2, 20X1. During 20X1 Taylor reported pre-tax book income of $150,000 and had taxable income of $200,000. Taylor had a temporary difference relating to accrued product warranty costs which are expected to be paid as follows: 20X2$30,00020X3$15,00020X4$5,000 The enacted tax rates are 21% for 20X1 and 20X2; and 25% for 20X3 and 20X4. The deferred tax asset at the end of 20X1 is:
Answer:
$11,300
Explanation:
The computation of the deferred tax asset is shown below:
= 21%(20X2 Expense) + 25%(20X3 and 20X4 Expense)
= 21%($30,000) + 25%($15,000) + 25%($5,000)
= $6,300 + $3,750 + $1,250
= $11,300
Kenwood Homes, Inc., allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Cheryl Long, an assistant cost accountant, charges the employee an amount based on Kenwood's net purchase cost. Cheryl Long is in the process of replacing a deck on her home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Long reviewed all the purchase invoices for the past year. She then used the lowest price to compute the amount due the company for the lumber. Discuss whether Long behaved in an appropriate manner.
Answer:
Cheryl did not act ethically because she used the lowest possible cost in order to calculate her own purchase cost. She should probably use an average cost or any other inventory management system (e.g. FIFO or LIFO). instead, she used the lowest possible price for her own personal benefit.
Explanation:
Crowl Corporation is investigating automating a process by purchasing a machine for $972,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,000. The annual depreciation on the new machine would be $108,000. The simple rate of return on the investment is closest to (Ignore income taxes.): (Hint: Give answer in decimal format. For example, if an answer is 10%, use the format 0.10 not 10%.)
Answer:
2.5%
Explanation:
Calculation to determine what The simple rate of return on the investment is closest to
First step is to calculate the Annual incremental net operating income
Annual incremental net operating income=$132,000-$108,000
Annual incremental net operating income=$24,000
Second step is to calculate the Initial investment
Initial investment =$972,000-$21,000
Initial investment=$951,000
Now let calculate the Simple rate of return using this formula
Simple rate of return = Annual incremental net operating income ÷ Initial investment
Let plug in the formula
Simple rate of return= $24,000 ÷ $951,000
Simple rate of return=0.025*100
Simple rate of return= 2.5%
Therefore The simple rate of return on the investment is closest to 2.5%
Please help!
Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are some common skills needed by Personal Financial Advisors? Select four options.
critical thinking
judgment and decision making
active listening
reading comprehension
operation and control
quality-control analysis
Answer:
critical thinking
judgment and decision making
reading comprehension
operation and control
critical thinking, judgment and decision making, reading comprehension and operation and control are some common skills needed by Personal Financial Advisors. Hence, options A, B, D and E are correct.
What is Personal Financial Advisors?Personal financial advisors assess the needs of their clients' finances and offer advice on choices for investments, tax laws, and insurance. Advisors help their clients create both short- and long-term goals, including investing for retirement and saving for children's education.
An expert who provides expertise for customers' financial, investment, and personal decision-making is a financial advisor. Financial advisors may be employed or hired as independent contractors by a larger financial institution.
Both "advisor" and "adviser" are valid spellings for someone who gives counsel, such a financial advisor. The vast majority—if not all—of the things we provide here are provided by partners who give us money. This might have an impact on the subjects, venues, and methods of our writing.
Thus, options A, B, D and E are correct.
For more information about Personal Financial Advisors, click here:
https://brainly.com/question/19186521
#SPJ6
Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: Original Budget Actual Costs Fixed overhead costs: Supervision $ 9,880 $ 9,970 Utilities 4,160 4,440 Factory depreciation 21,320 21,190 Total fixed manufacturing overhead cost $ 35,360 $ 35,600 The company based its original budget on 2,600 machine-hours. The company actually worked 2,280 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,080 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month
Answer: $7,072 Unfavorable
Explanation:
Find fixed manufacturing overhead rate:
= Total budgeted fixed manufacturing overhead cost / Budgeted machine hours
= 35,360 / 2,600
= $13.60
Variance Favorable (Unfavorable) = (Standard hours allowed - Budgeted machine hours) * fixed manufacturing overhead rate
= (2,080 - 2,600) * 13.60
= -$7,072
Levi is replying to an email a customer sent seeking information about his company’s products. Which greeting should he avoid using in a business email?
A.
Hi
B.
Hey
C.
Hello
D.
Dear
Select the correct answer.
Which statement is true in the context of business etiquette for sending digital messages?
A.
Digital messages should use abbreviations.
B.
Digital messages should be informal.
C.
Digital messages should be courteous.
D.
Digital messages should use a colorful font.
Select the correct answer.
Which of these messages would be considered inappropriate for business communication?
A.
Good night
B.
Goodbye
C.
OK, bye
D.
See you tomorrow
Suppose that the supply function for honey is p=S(q)=0.4q+2.8, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. Suppose also that the equilibrium price is $4.80 and the demand is 4 barrels when the price is $6.90. Find an equation for the demand function, assuming it is linear.
Answer:
The demand function is p= (-2.1)*q + 15.3
Explanation:
The supply function for honey is p=S(q)=0.4*q+2.8, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. The equilibrium price is $4.80. So, the equilibrium quantity is:
4.80=0.4*q+2.8
Solving:
4.80 - 2.8=0.4*q
2=0.4*q
2÷0.4= q
5=q
The demand function, assuming it is linear, is p=m*q+b
The equilibrium quantity is 5 barrels and the equilibrium price is $4.80; and the demand is 4 barrels when the price is $6.90. So:
[tex]\left \{ {{4.80=m*5+b} \atop {6.90=m*4+b}} \right.[/tex]
Isolating the variable "b" from the first equation, you get:
4.80 - m*5= b
Replacing the previous expression in the second equation you get:
6.90=m*4 + 4.80 - m*5
6.90 - 4.80=m*4 - m*5
2.1= (-1)*m
2.1÷(-1)= m
-2.1=m
Replacing the value of "m" in the expression 4.80 - m*5= b you get:
4.80 - (-2.1)*5= b
Solving you get:
15.3= b
So, the demand function is p= (-2.1)*q + 15.3
The total of the accounts receivable subsidiary ledger must equal?
The Sisyphean Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to
Answer:
0.98%
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
the growth rate can be determined from the above equation
$25.50 = $2.8 / ( 0.1 -g)
Multiply both sides of the equation by 0.1 - g
$25.50( 0.1 -g) = $2.8
Divide both sides by $25.50
0.1 - g = 0.1098
g = 0.1 - 0.1098
g = - 0.0098
g = -0.98%
ohnson Inc. is a job-order manufacturing company that uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 95,000 and estimated factory overhead is $617,500. The following information is for September of the current year. Job A was completed during September, and Job B was started but not finished. September 1, inventories Materials inventory $ 8,600 Work-in-process inventory (All Job A) 33,400 Finished goods inventory 72,500 Material purchases 120,500 Direct materials requisitioned Job A 76,000 Job B 39,000 Direct labor hours Job A 5,300 Job B 3,100 Labor costs incurred Direct labor ($8.50/hour) 71,400 Indirect labor 14,600 Supervisory salaries 7,100 Rental costs Factory 8,100 Administrative offices 2,900 Total equipment depreciation costs Factory 9,150 Administrative offices 3,250 Indirect materials used 13,100 Required: 1. What is the total cost of Job A
Answer:
$188,900
Explanation:
The computation of the total cost of JOb A is shown below:
= Work in process + material requistioned + direct labor + applied overhead
= $33,400 + $76,000 + 5,300 × $8.50 + 5,300 × $617,500 ÷ 95,000
= $33,400 + $76,000 + $45,050 + $34,450
= $188,900
Hazel sells books online for $10.95 each. All of her 630 customers came from her FB friends. How much did she make through FB sales?
Answer:
she has to sell it $6300 that is it price
$6300 is the amount she makes through FB sale, as Hazel sells books online for $10.95 each. All of her 630 customers came from her FB friends.
What is customers?An individual or business that purchases goods or services from another company is known as a customer. Consumers are crucial to businesses because they generate income; without them, they would cease to exist.
A client is a company that buys textiles to produce garments that will be sold again. To assemble an automobile, a manufacturing company buys components. The manufacturing business is a client.
The Undaunted Striver, Impulsive Spender, Balanced Optimist, Ambitious Struggler, Conservative Homebody, Independent Skeptic, and Safe Traditionalist are seven worldwide consumer types that Euromonitor's survey team created using the survey data.
An individual or business that purchases goods or services from another company is known as a customer. Consumers are crucial to businesses because they generate income; without them, they would cease to exist.
Thus, $6300 is the amount.
For more information about customers, click here:
https://brainly.com/question/13472502
#SPJ6
Bruce is a nonexempt employee at Grissom Industries, where he works in both the manufacturing and design departments. He is married with three withholding allowances and is paid biweekly. He earns $25 per hour in the manufacturing department and $31.50 per hour in the design department. During the most recent biweekly pay period, he worked a total of 92 hours, 20 of which were in the design department. All overtime was in the manufacturing department. What is his gross pay?
A) $2,580.00.
B) $2,638.50.
C) $2,697.00.
D) $3,147.00.
Answer:
A) $2,580.00.
Explanation:
The computation of the gross pay is shown below:
Here Bruce is paid every two weeks = 80 hours
Here 92 hours worked represents that 12 were overtime.
For Manufacturing Department:
Regular Pay:
= $25 × 60
= $1500
Overtime Pay:
= ($25 × 1.5) × 12
= $450
For Design Department:
Regular Pay:
= $31.50 × 20
= $630
Now
= Total Design + Manufacturing Departments:
= $1500 + $450 + $630
= $2,580
You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost you £30 for the evening. The pleasure you anticipate from this experience is worth £50 to you. Or you can go to the theatre The ticket will cost you £50, but you value the experience at £60. Based on this information, which of the following statements is correct?
a. Based on economic rent alone, you would definitely choose to go to the theatre.
b. The economic cost of going to the pub is £40.
c. The economic rent of going to the pub is £0.
d. The opportunity cost of an evening at the pub is £60.
Answer:
b. The economic cost of going to the pub is £40.
Explanation:
The correct option is - b. The economic cost of going to the pub is £40.
Reason -
Economic cost = Cost actually incurred to choose an option + opportunity cost
Now,
We know that
Opportunity cost is the value of next best alternative forgone.
Now,
Net benefits while the person going to Pub = 50 - 30 = £20
Net benefits while the person going to Theatre = 60 - 50 = £10
So,
The opportunity cost = £20 - £10 = £10
∴ we get
Economic cost of going to the Pub= £30 + £10 = £40
The answer to this question is option B. The economic cost of going to the pub is £40.
In order to get the economic cost, we use this formula to calculate it:
Economic cost = cost of account + opportunity cost - benefit of the pub
The cost of account = 30 this is the price for the pub
The opportunity cost = 60 is the benefit that would have been enjoyed for visiting the theatre
The benefit = 50 is the worth of the pub
This would give us 30+60-50
= £40
Therefore the economic cost of going to the pub is £40.
Read more on https://brainly.com/question/13161277?referrer=searchResults
define subprime mortgages.
Subprime mortgage, a type of home loan extended to individuals with poor, incomplete, or nonexistent credit histories. Because the borrowers in that case present a higher risk for lenders, subprime mortgages typically charge higher interest rates than standard (prime) mortgages
There are only two consumers in a market, Harry and Hermione. Harry is willing to buy 12 magic wands when the price is $20 per wand and 8 magic wands when the price is $30 per wand. Hermione is willing to buy 15 magic wands when the price is $20 per wand and 10 magic wands when the price is $30 per wand. Given that these are the only two individuals in the market, what is the market demand for wands when the price of wands is $30
Answer:
The answer is 14
Explanation:
Market demand is the certain product need that is required by the consumers at a specific price. The market demand, when the price of the wand is $30, is 18.
What is market demand?Market demand is a specific number of services or products that customers or the consumer purchase at a fixed specific value in the market.
As in the above case in the market, only two consumers are present and the formula for the market demand is given by adding the demands all together sold at the specific price.
At the price, $30, Harry is willing to buy 8 magic wands and Hermione is willing to buy 10 magic wands. Form this the two demands can be added as there are only two consumers, resulting in the market demand being 18.
Therefore, the market demand at $30 is 18.
Learn more about market demand here:
https://brainly.com/question/3331860
Why are the incentives of a supplier the opposite of the incentives of a demander
Answer:
The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.
Riverton Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit
Production costs: Variable: $4 per unit
Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000 The contribution margin that the company would disclose on a variable-costing income statement is:________.
a. None of the answers is correct.
b. $166,500.
c. $97,500.
d. $370,000.
e. $147,000.
Answer:
B. $166,500
Explanation:
Given the above information, we'll calculate fixed cost per unit.
Fixed cost per unit
= $260,000 ÷ 40,000 units
= $6.5 per unit
Then,
Sales per units
= Variable cost per unit - Fixed costs per units
= $15 - $4 - $6.5
= $4.5
Contribution margin
= $4.5 × 37,000
= $166,500
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.
Answer:
see below
Explanation:
Given that cost incurred = $457,200
Overhead
= $457,200 - $433,200
During Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. Multiple Choice, the production department of a process operations system completed and transferred to finished goods 20,000 units that were in process at the beginning of March and 100,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 54% complete with respect to conversion. At the end of March, 29,000 additional units were in process in the production department and were 100% complete with respect to materials and 29% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
Answer:
Computing the equivalent units using the weighted-average method:
Materials Conversion
Total equivalent units 129,000 108,410
Explanation:
a) Data and Calculations:
Beginning inventory = 20,000 units
Degree of completion (Materials 100%, Conversion 54%)
Units started and completed in March = 100,000
Units transferred out = 120,000
Ending inventory = 29,000 units
Degree of completion (Materials 100%, Conversion 29%)
Total equivalent units Materials Conversion
Units started & completed 100,000 (100%) 100,000 (100%)
Units in Ending Inventory 29,000 (100%) 8,410 (29%)
Total equivalent units 129,000 108,410
b) In computing the equivalent units of production, the weighted-average method takes into account the units started and completed within the period and the ending work in process. This is unlike the FIFO method, which considers the units completed in the beginning work-in-process during the current period, the units started and completed, and the ending work-in-process inventory based on their various degrees of completion.
Fusion has already been demonstrated as an energy source, albeit on a limited scale. Engineers hope to transform the scale to provide energy at commercial levels. A loan for development of a niche application has been taken out by an engineering research firm, borrowing $900,000. The loan will be paid back over 5 years with uniform quarterly payments and an interest rate of 10 percent compounded quarterly.
What is the equal quarterly amount to be paid?
Answer:
$37,332.77
Explanation:
The computation of the equal quarterly amount that need to be paid is shown below:
= $900,000 × 2.5% ÷ (1 - 2.5%)^20
= $900,000 × 0.041480855
= $37,332.77
The rate of interest is
= 10% ÷ 4
= 2.5%
And, the time period is
= 5 × 4
= 20 years
For each of the following situations, decide whether the unemployment that occurs is a result of cyclical, frictional, or structural changes.
Items (7 items) (Drag and drop into the appropriate area below)
A new college graduate takes three months to find his first job.
Two hundred automobile workers lose their jobs as a result of a permanent reduction in the demand for automobiles.
Large numbers of workers lose their jobs as the economy goes into a downturn.
A financial analyst quits her current job to look for a better one
Answer:
frictional
structural changes.
Cyclical
frictional
Explanation:
Structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
Frictional unemployment is the period of time a person is unemployed from the time he leaves his current job and the time he gets another job.
Cyclical unemployment occurs as a result of fluctuations in the economy. In a downturn unemployment is high and in a boom, unemployment is low.
akashi plans to save $30,000 per year until he retires. His first savings contribution to his retirement account is expected in 1 year from today. Takashi plans to retire in 6 years from today, immediately after making his last $30,000 contribution to his retirement account. He then plans to be retired for 6 years. Takashi expects to earn 8.0 percent per year in his retirement account, both before and during his retirement. If Takashi receives equal annual payments from his retirement account during his retirement with the first of these annual retirement payments received in 1 year after he retires and the last of these annual retirement payments received in 6 years after he retires, then how much can Takashi expect each of his annual retirement payments to be
Answer:
$47,605.83
Explanation:
future value of Takashi's savings = $30,000 x 7.3359 (FVIFA, 8%, 6 periods) = $220,077
the value of each distribution payment = $220,077 / 4.6229 (PVIFA, 8%, 6 periods) = $47,605.83
These are ordinary annuities, therefore, so we can find their annuity factors using a table.
. AT&T's decision to move its corporate headquarters meant that about 700
of the company's best-paid executives were moving to the Dallas area.
What did that probably do to the demand curve for expensive homes in the
Dallas area?
A. Shift to the left B. Shift to the right
Answer:
nn
Explanation:
d
In the business world, people are often measured by their:
Answer:
Technical Skills
Explanation:
At date t, a trader buys a bear spread using two European put options on the same stock. The date t stock price is $35 per share. Both put options have the same expiration date, T. The first put option is priced at $2.43 per share and has a strike price equal to $35 per share. The second put option is priced at $0.68 per share and has a strike price equal to $30 per share. At date T, what is the break-even stock price per share
Answer:
$33.25
Explanation:
The break-even point is calculated as: Higher strike price - Initial cost.
Initial cost = Cost of buying the higher strike price put option - Amount earned by selling the lower strike put option
Initial cost = $2.43 - $0.68
Initial cost = $1.75 per share
Break-even point = Higher strike price - Initial cost
Break-even point = $35 - $1.75
Break-even point = $33.25
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $48,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year Cash Flow 1 $ 18,000 2 22,000 3 25,000 4 12,000 5 7,000 a. If the cost of capital is 9 percent, what is the net present value of selecting a new machine
Answer:
$19,385.93
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-48,000.
Cash flow in year 1 = $18,000.
Cash flow in year 2 = $22,000.
Cash flow in year 3 = $25,000.
Cash flow in year 4 = $12,000.
Cash flow in year 5 = $7,000.
I = 9%
NPV = $19,385.93
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Corporation owns 65% of Saturn's voting shares. On Jan 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star for $118,020. On the date Pluto purchased the bonds, the bonds' carrying value on Saturn's book was $126,019. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidating entry:
Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement?
a. $8,000 gain
b. $5,200 gain
c. $8,000 loss
d. $5,200 loss
Answer:
a. $8,000 gain
Explanation:
The face value of the bonds purchased by Pluto Corporation are $120,000. The bonds are purchased at discount of $1,980. The bonds have carrying value of $126,019 at the time of purchase. The net gain or loss is calculated by the difference between two values.
$120,000 - $126,019 - $6,019
The discount amount of the bond was $1,980.
Total gain on the bonds approximately ($6,019 + $1,980) = $8,000
Economically, the government divides its earning marks into ______, each of which lasts three months.
Answer:
quarters
Explanation:
Umatilla Bank and Trust is considering giving Splish Brothers Inc. a loan. Before doing so, it decides that further discussions with Splish Brothers Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $247,680. Discussions with the accountant reveal the following.
1. Splish Brothers Inc. sold goods costing $50,590 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
2. The physical count of the inventory did not include goods costing $100,920 that were shipped to Splish Brothers Inc. FOB destination on December 27 and were still in transit at year-end.
3. Splish Brothers Inc. received goods costing $25,880 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.
4. Splish Brothers Inc. sold goods costing $54,220 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Splish Brothers Inc. physical inventory.
5. Splish Brothers Inc. received goods costing $43,380 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $247,680.
Determine the correct inventory amount on December 31.
Answer:
the correct inventory amount is $284,400
Explanation:
The computation of the correct inventory amount is shown below:
= End year balance + FOB shipping point + fob destination - fob destination
= $247,680 + $25,880 + $54,220 - $43,380
= $284,400
Hence, the correct inventory amount is $284,400