Please solve this general accounting question Firm AMZN holds one type of finished product A. The totalwarehousing cost (including warehouse leasing cost, warehouseemployee salary and benefit, warehouse manager salary andbenefit, and warehouse utility cost) is $2,400,000 in 2013. Due toobsolescence, this inventory lost its market value by $1,000,000in 2013. AMZN estimated that the average inventory level forproduct A is 500,000 units during 2013. The unit purchasing costof A is $20. In addition, the risk free interest rate is 2% per year.What is your estimate of the inventory holding cost per year inpercentage (rounded to the nearest integer)?

Step 1: Define Inventory CostsInventory costs are comprised of all expenses associated with both…

Answered: Firm AMZN holds one type of finished…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BIT Electronics is a manufacturer of computer components. Last year, BIT had average inventories as described in the following table: # of units unit cost ($) 29,500 raw material 1 18.50 raw material 2 37,500 13.20 raw material 3 work-in-process 1 work-in-process 2 work-in-process 3 work-in-process 4 finished goods 1,250,300 11.65 4,850 56.75 2,950 62.25 6,120 100.85 5,690 92,850 84.30 315.00 The company operates 50 weeks/year, with annual sales of $322.85 million.
The ending inventory for the year would be value?
Kennedy Inc has $23,800 of ending finished goods inventory as of Dec. 31, 2013. If beginning finished goods inventory was $16,300 and COGS was $72,000, how much would Kennedy report for cost of goods manufactured.Answer this question.
Scott Manufacturing makes only one product with total unit manufacturing costs of $59, of which $41 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $93 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 2015 120,000 90,000 2016 120,000 130,000 a. Prepare gross profit computations for 2015 and 2016 using absorption costing.Do not use negative signs with your answers. Absorption Costing 2015 2016 Sales Answer Answer Cost of goods sold: Beginning inventory Answer Answer Production Answer Answer Goods available Answer Answer Less: Ending inventory Answer Answer Cost of goods sold Answer Answer Gross profit Answer Answer b. Prepare gross profit computations for 2015 and 2016 using…
Scott Manufacturing makes only one product with total unit manufacturing costs of $57, of which $39 is variable. No units were on hand at the beginning of 2015. During 2015 and 2016, the only product manufactured was sold for $89 per unit, and the cost structure did not change. Scott uses the first-in, first-out inventory method and has the following production and sales for 2015 and 2016 Units Manufactured Units Sold 2015 120,000 90,000 2016 120,000 130,000 Prepare gross profit computations for 2015 and 2016 using absorption costing. Absorption Costing 2015. 2016 Sales Cost of goods sold: Beginning inventory Production Goods available Less: Ending inventory Cost of goods sold Gross profit
Octagonal company has the following information for 2018: solve this general Accounting question
A company had been selling its product for $32 per unit, but recently lowered the selling price to $21 per unit. The company's current inventory consists of 230 units purchased at $28 per unit. The market value of this inventory is currently $ $19 per unit. At what amount should the company's inventory be reported on the balance sheet?[Subject = Cost Account]
Alpha places 900 units in production during the year. All 900 units are completed during the year. It had no beginning WIP inventory. Direct material costs added during the year were $81,000 and conversion costs were $9,000. 8) What is the Direct Material cost per equivalent unit for the year? 9) What is the Conversion Cost per equivalent unit for the year? 10) How much is Cost of Goods manufactured for the year? 11) Assume beginning FG inventory was 0 (zero) and that Alpha sold 10% of what it manufactured this year. How much is COGS?
The following data are obtained from Gianne Manufacturing Company: Cost of goods manufactured is P187,500 Inventory variations are as follows: raw materials ending inventory is one-third based on raw materials beginning; no initial inventory of work-in-process, but at end of period P12,500 was on hand; finished goods inventory was four times as large at end of period as at the start. Net income after taxes amounted to P26,000, income tax rate is 35%. Purchase of raw materials amounted to net income before taxes. Breakdown of costs incurred in manufacturing cost was as follows: Raw materials consumed 50% 30% 20% Direct labor Overhead Compute the amount raw materials beginning inventory: P38,571 P60,000 P90,000 P40,000
Kennedy Inc has $23,800 of ending finished goods inventory as of Dec. 31, 2013. If beginning finished goods inventory was $16,300 and COGS was $72,000, how much would Kennedy report for cost of goods manufactured.
The inventory ledger account of Yim Inc. shows that the level of inventory of the manufactured product has increased by 10,000 units over the period. Yim provided the following unit cost information for its manufacturing and non-manufacturing costs: Cost Information Costs Variable Fixed Manufacturing costs per unit 12.50 5.60 Selling and administrative costs per unit 5.00 2.00 Which of the following statements is true? Group of answer choices Net income will be the same under both variable and absorption costing. Net income under absorption costing will be $76,000 more than under variable costing. The difference in net income cannot be determined. Net income under variable costing will be $56,000 less than net income under absorption costing.
Winner Company has two products with cost and selling price as follows: Product X Product Y Selling price 2,000,000 3,000,000 Estimated selling cost 600,000 700,000 Materials and conversion cost 1,500,000 1,800,000 General administration cost 300,000 800,000 At year-end, the manufacture of inventory has been completed but no selling cost has yet been incurred. Under LCNRV by individual item, the inventory shall be measured at what amount?

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