Current Attempt in ProgressNatalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Hergoals for the next 11 months are to sell one mixer per month and to give two to three classes per week.The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shippingcosts in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodicinventory system and now must choose a cost flow assumption for her mixer inventory.The following transactions occur in February to May 2022.Feb. 21625Mar. 23031Apr. 113.30May 427Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30.She sells one deluxe mixer for $1.100 cash.She pays the amount owed to Kzinski.She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB destination, terms n/30.Natalie sells two deluxe mixers for a total of $2,200 cash.She pays the amount owed to Kzinski.She buys two deluxe mixers on account from Kzinski Supply Co. for $1,194 ($597 each), FOB destination, terms n/30.She sells three deluxe mixers for a total of $3,300 cash.Natalie pays the amounts owed to Kzinski.She buys three deluxe mixers on account from Kzinski Supply Co. for $1,830 ($610 each), FOB destination, terms n/30.She sells one deluxe mixer for $1,100 cash. Determine the cost of goods available for sale. At the end of January, Cookie Creations had three mixers on hand at a cost of $580eachCost of goods available for sale $(b)eTextbook and MediaEndinginventoryCalculate() ending inventory, (i) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods:LIFO, FIFO, and average cost. (Round average cost per unit to 3 decimal places, eg 2.225. Round gross profit rate to 2 decimal places, eg25.22%. Round all other answers to O decimal places, eg. 2,525)Cost of goodssoldGross profitGross profitrate$$6537LIFO$FIFOAttempts: 1 of 3 used$Average CostSU

It is one of the key assets of the company. It comprises raw materials, inventory in processing and…

Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The following transactions occur in February to May 2022. Feb. 2 16 25 Mar. 2 Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30. She sells one deluxe mixer for $1.100 cash. She pays the amount owed to Kzinski. She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB destination, terms n/30.

Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The following transactions occur in February to May 2022. Feb. 2 16 25 Mar. 2 Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30. She sells one deluxe mixer for $1.100 cash. She pays the amount owed to Kzinski. She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB destination, terms n/30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Jeff & Bezos is a fresh groceries delivery company. They have access to borrowing funds at a pre-tax…

A: The break even lease payment should be find by using following equation:

Q: What is the lowest bid price (per unit) you should submit (i.e. price where NPV=0)?

A: Sunk costs are those cost which are incurred in past for some purpose like research. These costs are…

Q: You are hired as a consultant to decide if your client should purchase a new, highly specialized…

A: It is the process of making decisions that involve the management of costs in order to achieve…

Q: eff & Bezos is a fresh groceries delivery company. They have access to borrowing unds at a pre-tax…

A: Lease is type of finance of equipments and in this the equipments can be used by payment of the…

Q: Given a project with the following characteristics, answer the following questions: You are the…

A: As per our protocol we provide solution to one question only or in case of sub-parts then first…

Q: You run a construction company. You need to lease a crane for a two-year project. There are two…

A: Present value is the current worth of a cash flow at a certain rate and time period. Present value =…

Q: Please try to solve it in 30 minute

A: Given Gross Revenue = 65,000 Pannel Cost per installation = 50,000 Operating Cost per installation…

Q: Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best…

A: Evaluating alternatives: When a company is faced with the choice of two alternatives, both…

Q: Quantum Logistics, Inc., a wholesale distributor, is considering the construction of a new warehouse…

A: The discounted payback period (DPBP)is a capital budgeting technique used to evaluate the…

Q: lable to those who could not otherwise afford services. The intent is to provide easy a 60 days per…

A: Contribution means the difference between the selling price and variable cost.Fixed cost when…

Q: United Residential is a real-estate developer considering a 40-unit apartment complex in a growing…

A: The monthly rental should be based on the total cost involved in that includes the land ,building…

Q: You are the CFO of Sunland, Inc., a retailer of the exercise machine Sunland6 and related…

A: The NPV is the capital budgeting technique used to evaluate the profitability of the project.NPV =…

Q: Your manager has asked you to advise your client Kofi Gyato, owner and director of Kofi Gyato…

A: Depreciation means the amount of expenses due to usage of fixed assets due to normal wear and tear…

Q: fee shop wher specialty urtis cannot afford to pay for the mixer for at least 30 days. He asks…

A: The perpetual inventory system is the system of recording the inventory. Under this system, the…

Q: Every summer Marianna offers a special convertible roof on the Sport Coupe model. The demand for the…

A: Suppose She Ordered the 2200 roof Every Year and as Per Question no Inventory left out as she sold…

Q: ONE At Stardust Gems, a faux gem and jewelry company, the setting department is a bottleneck. The…

A: Lets understand the basics. As the bottleneck the name suggest is a block of workflow in the…

Q: ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel…

A: Gross Rent Multiplier:It represents a metric used for the evaluation of the property price and the…

Q: You are the CFO of Carla Vista, Inc.a retailer of the exercise machine Carla Vista6 and related…

A: The cash outflows are related to acquiring capital assets like machinery, building, equipment, etc.…

Q: Flatte Restaurant is considering the purchase of a $10,800 soufflé maker. The soufflé maker has an…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Emily Smith and two colleagues are considering opening a law office in a large metropolitan area…

A: Contribution means the difference between the selling price and variable cost.Fixed cost when…

Q: Rosemary is planning to make fancy multi-tiered wedding cakes for the next wedding season. To make…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: After a trip to Bordeaux, France, you are considering opening a restaurant based on Restaurant…

A: NPV is a techniques under capital budgeting which help in decision making on the basis of future…

Q: Karen has been working with a small travel agency for the past few years to learn the business and…

A: Net Present Value - It is the difference between the present value of cash outflow and present value…

Question

Current Attempt in Progress
Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her
goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.
The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping
costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic
inventory system and now must choose a cost flow assumption for her mixer inventory.
The following transactions occur in February to May 2022.
Feb. 2
16
25
Mar. 2
30
31
Apr. 1
13.
30
May 4
27
Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30.
She sells one deluxe mixer for $1.100 cash.
She pays the amount owed to Kzinski.
She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB destination, terms n/30.
Natalie sells two deluxe mixers for a total of $2,200 cash.
She pays the amount owed to Kzinski.
She buys two deluxe mixers on account from Kzinski Supply Co. for $1,194 ($597 each), FOB destination, terms n/30.
She sells three deluxe mixers for a total of $3,300 cash.
Natalie pays the amounts owed to Kzinski.
She buys three deluxe mixers on account from Kzinski Supply Co. for $1,830 ($610 each), FOB destination, terms n/30.
She sells one deluxe mixer for $1,100 cash.

Determine the cost of goods available for sale. At the end of January, Cookie Creations had three mixers on hand at a cost of $580
each
Cost of goods available for sale $
(b)
eTextbook and Media
Ending
inventory
Calculate() ending inventory, (i) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods:
LIFO, FIFO, and average cost. (Round average cost per unit to 3 decimal places, eg 2.225. Round gross profit rate to 2 decimal places, eg
25.22%. Round all other answers to O decimal places, eg. 2,525)
Cost of goods
sold
Gross profit
Gross profit
rate
$
$
6537
LIFO
$
FIFO
Attempts: 1 of 3 used
$
Average Cost
SU

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Inventory:

VIEW

Step 2: (a) Determine the cost of goods available for sale:

VIEW

Step 3: Working Notes:

VIEW

Step 4: (b) Calculate ending inventory, cost of goods sold, gross profit, and gross profit %:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Johanna and her sister are developing a business to make branded reusable stainless steel coffee mugs aimed at the Tourist Market, with logos such as "Love Queenstown" and "Love Taupo". They have developed a web page and are successfully attracting customers from the tourist- located cafes and restaurants. Sales for each quarter of 2019 were as follows. Quarter ending Mar-2019 Jun-2019 Sep-2019 Dec-2019 Number of Mugs 3,600 3,800 4,200 4,800 The sisters have changed their sale strategy for 2020 to a person to person approach and believe this new approach will lead to a 10% sales increase in each quarter in 2020 from the December 2019 base of sales of 4,800 mugs - that is they predict that each quarter in 2020 will have 10% more sales than the previous quarter. The unit sales price will be unchanged from the 2019 price of $8 per mug. They have applied for a bank loan to help finance the expansion of their business. The bank has requested detailed financial data to support their loan…
Fred is considering three job offers in advertising. A full-time position as a coordinator that pays a salary of $40,000 per year. A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week. A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising. The following are the specifics about the benefits of the job opportunities: The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%). Fred will deduct 15% of Gross Income to cover Federal Income Tax. Fred does not live in a state with State Income Tax. Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year. The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan. The Designer job includes five paid vacation days and three paid sick days…
Raghubhai
Munabhai
The owner of Warwick Printing is planning direct labor needs for the upcoming year. The owner has provided you with the following information for next year's plans: Each color on the banner must be printed one at a time. Thus, for example, a four-color banner will need to be run through the printing operation four separate times. The total production volume last year was 800, as follows: The four-color banner is a new product offering for the upcoming year. The owner believes that the expected 1,000-unit increase in volume fromlast year means that direct labor expenses should increase bu 125% (1,000/800). What do you think?
Toro Company is expanding its US-based plastic molding plant as it continues to transfer work from Juarez, Mexico contractors. The plant bought a $1.1 million precision injection molding machine to make plastic parts for Toro lawn mowers, trimmers, and snow blowers. The plant expects to hire 12 people, including some engineers for the expansion. If the average loaded cost (i.e., including benefits) of each employee is $100,000 per year, determine the annual worth of the new systems over a five-year planning period at an interest rate of 10% per year. Assume a 20% salvage value for the new equipment. $-2,436,420 $-2,539,420 $-1,454,142 $-1,973,420
Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its Chicago locations. The company expects that sales from the new 15-minute service will be $145,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $267,500. While many of the 15-minute sales will be to new customers who, in the past, could not wait a full hour to have their car detailed, Delta Sonic estimates that 10% of their 1-hour sales will be lost as a result of existing customers switching to the new, faster service. The level of incremental sales associated with introducing the new 15-minute wash/wax service that should be used when analyzing this project is closest to O A. $171,750 B. $14,500 C. $145,000 O D. $26,750 O E. $118,250
A Texas Steak House in Puebla consumes 5,500 pounds of sirloin steak each month. Ari Mendoza, the new restaurant manager, recently completed an engineering degree. He learned that the steak is replenished using an EOQ value of 3,500 pounds. The EOQ value was computed assuming an interest rate of 23 percent per year. Assume that the current cost of the sirloin steak to the steak house is $10 per pound. What is the setup cost used in determining the EOQ value? Mendoza received an offer from a meat wholesaler in which a discount of 20 percent would be given if the steak house purchased the steak in quantities of 6,000 pounds or more. Should Mr. Mendoza accept the offer from the wholesaler? If so, how much can be saved?
Cassandra Boat Builders builds and sells powerboats with a hull constructed primarily of teak wood. The boat building season is during Spring and Summer. The company begins building each boat only after a firm commitment was made by a specific buyer. Since the price of teak wood tends to fluctuate, Cassandra purchases several future contracts with different due dates during the building season to hedge the risk of fluctuating wood prices. During the 20X1 boat building season, the price of teak wood increased and reduced the Company's gross margin by $250,000. However, due to the increases in the teak wood prices, Cassandra realized a $240,00 gain on the related future contracts. Cassandra designates the futures as a cash flow hedge of an anticipated transaction. Which of the following entries (presented in summary format) should Cassandra Boat Builders make to recognize the gain from the future contracts? Multiple Choice Future contract 240,000 Gain on future…
Curley Maple has produced handcrafted tables for wholesale in his woodworking shop for the past year. He worked 6 days a week, 10 hour per day for 49 weeks of the year, leaving 3 weeks for holidays, vacation, and sick days. Curley has used up his savings over the past year, and now he needs to begin to draw an income from the business. Worried he is not pricing his tables correctly, curley decided to analyze the detailed records of his time and expenses that he has kept for the past year. Complete the chart:
Karen has been working with a small travel agency for the past few years to learn the business and to better understand what costs are necessary to run it. Now, having been in the business world for a few years, she's ready to start her own travel agency, specializing in "off the grid" locations. She knows there will be both overhead costs and labor costs, since she intends to hire one assistant. The following chart outlines her estimates thus far. Annual net operating cash flows³ Initial asset investment Asset life in years $3,800 $9,800 8 Salvage value of asset at end of useful life $1,000 Tax rate 25% a After assistant and overhead costs, but does not include a salary for Karen. As a new business owner, Karen only expects to earn a 5% rate of return. She conducted an initial NPV anlaysis for an 8-year interval, recognizing that she'll make some significant adjustments after that point. Her initial analysis revealed a positive NPV. Click here to view the factor table (a) Rerun the…
Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 6,000 log-splitting machines per year at a retail price of $700 each. An independent catalog company would handle sales for an annual fee of $2,000 plus $50 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $80 per unit. If company management desires a return equal to 10 percent of the final selling price, what is the target conversion and administrative cost per unit? Round answer to the nearest cent.