Hair-raising Hats has three lines of hats: baseball, winter, and fashion. On May 18, 2020, Hair-raising Hats had a fire that destroyed the baseball hat inventory. Sales for the period January 1 to May 18 for the baseball hats were $780,000. Inventory at January 1, 2020, for the baseball hats was $97,000 (cost), $330,000 (retail). Purchases made from January 1 to May 18 for the baseball hats at cost were $275,000 and at retail were $735,000. Use the retail method to calculate the cost of the inventory lost in the fire. Complete the table below. (Enter the cost-to-retail ratio as a percentage rounded to the nearest whole number, X%. Round the estimated ending inventory at cost to the nearest whole dollar.) Baseball Hats Beginning inventory Cost of goods purchased Goods available for sale Less: Sales at retail Ending inventory remaining at retail Cost to retail ratio: % Estimated ending inventory at cost At Cost At Retail

Hair-raising Hats has three lines of hats: baseball, winter, and fashion. On May 18, 2020, Hair-raising Hats had a fire that destroyed the baseball hat inventory. Sales for the period January 1 to May 18 for the baseball hats were $780,000. Inventory at January 1, 2020, for the baseball hats was $97,000 (cost), $330,000 (retail). Purchases made from January 1 to May 18 for the baseball hats at cost were $275,000 and at retail were $735,000. Use the retail method to calculate the cost of the inventory lost in the fire. Complete the table below. (Enter the cost-to-retail ratio as a percentage rounded to the nearest whole number, X%. Round the estimated ending inventory at cost to the nearest whole dollar.) Baseball Hats Beginning inventory Cost of goods purchased Goods available for sale Less: Sales at retail Ending inventory remaining at retail Cost to retail ratio: % Estimated ending inventory at cost At Cost At Retail

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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In June 2019, Juggle Ade produced 6,000 jars of powdered drink mix and sold 5,000 jars.The sale price was $54 per jar. Variable costs were $20 per case ($16 manufacturing and $4 selling & administrative) and total fixed costs were $90,000 ($70,000 manufacturing and$20,000 selling & administrative).The company had no beginning inventory. Required:a) Calculate the following for Juggle Adei) The total cost per unitii) The value of ending inventories using marginal costingiii) The value of ending inventories using total costing b) Prepare the June income statement for Juggle Ade using variable costing, clearlyshowing contribution and the components of total fixed costs.