Reference no: EM132540982
Question - Objective: To record transactions in a perpetual inventory system and keep a perpetual inventory record.
Redwing Company sells Product B and keeps track of it using a perpetual inventory system. Redwing begins the year with 40 units of Product B, costing $40 each. All sales are recorded using the FIFO method. Transactions for January relating to Product B are as follows:
2011
Jan. 3 Purchased 60 units @ $42 each on account
Jan. 10 Sold 25 units @ $65 each for cash
Jan. 19 Sold 30 units @ $66 each on account
Jan. 24 Purchased 25 units @ $43 each for cash
Jan. 30 Sold 30 units @ $67 each on account
Directions:
1) Set up a perpetual inventory record. Enter the opening balance, a stock number of B2, Supplies as the department, and a reorder point of 40 units.
2) Record each of the transactions first on the perpetual inventory record and then in general journal form. Use FIFO to determine the cost of the units sold.
|
What level of sales in units is salmon
: At what level of sales, in units, is Salmon indifferent between the two compensation plans? Salmon Co. is deciding between two compensation plans.
|
|
What will happen if the interest rate differs from the fed
: Why does a company need to ensure that theirs are matching up? What will happen if the interest rate differs from the Fed?
|
|
What amount of total revenue would be needed to meet
: What amount of total revenue would be needed to meet an after-tax profit target of $48,000? Hangers Co. manufactures and sells a single product.
|
|
What holding period return
: You are a long-only bond manager and you wish to determine what your holding period return would be if you have a horizon value
|
|
Record each of the transactions first on perpetual inventory
: Record each of the transactions first on the perpetual inventory record and then in general journal form. Use FIFO to determine the cost of the units sold
|
|
Find the value today of an asset
: Find the value today of an asset that has just paid cash flow of $620, and that cash flow is expected to grow at a constant rate of 3.80% in perpetuity.
|
|
What is the tax expense
: If earnings before taxes (EBT) are 146,000, net sales (all on credit) are 315,000, dividends are 25,000 and net income is 90,000, what is the tax expense.
|
|
Compute the net deferred tax expense
: Since this is the first year of operations, there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit)
|
|
What will the next unit sold contribute to profit
: The variable costs were $600 and the fixed costs were $300. What will the next (i.e., 401st) unit sold contribute to profit before income taxes?
|