Compute fifo, lifo, average-cost—periodic)

(lo 3) presented below is information related to blowfish radios for the hootie company for the month of july.

date

transaction

units in

unit cost

total

units sold

selling price

total

july 1

balance

 100

$4.10

$ 410

 6

purchase

 800

 4.20

 3,360

 7

sale

 300

$7.00

$ 2,100

10

sale

 300

 7.30

  2,190

12

purchase

 400

 4.50

 1,800

15

sale

 200

 7.40

  1,480

18

purchase

 300

 4.60

 1,380

22

sale

 400

 7.40

  2,960

25

purchase

 500

 4.58

 2,290

30

sale





 200

 7.50

  1,500

totals

2,100

$9,240

1,400

$10,230

instructions

(a) assuming that the periodic inventory method is used, compute the inventory cost at july 31 under each of the following cost flow assumptions.

1.fifo.

2.lifo.

3.weighted-average.

(b) answer the following questions.

1.which of the methods used above will yield the lowest figure for gross profit for the income statement? explain why.

2.which of the methods used above will yield the lowest figure for ending inventory for the balance sheet? explain why.

1tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock. 2 the company prepaid $7,200 cash for 12 months’ rent for office space. (hint: debit prepaid rent for $7,200.) 3 the company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. payment is due within 10 days. 6 the company completed services for a client and immediately received $2,000 cash. 9 the company completed a $10,800 project for a client, who must pay within 30 days. 13 the company paid $19,440 cash to settle the account payable created on april 3. 19 the company paid $6,000 cash for the premium on a 12-month insurance policy. (hint: debit prepaid insurance for $6,000.) 22 the company received $8,640 cash as partial payment for the work completed on april 9. 25 the company completed work for another client for $2,640 on credit. 28 the company paid $6,200 cash in dividends. 29 the company purchased $1,080 of additional office supplies on credit. 30 the company paid $700 cash for this month’s utility bill. prepare general journal entries to record these transactions. 2. post the journal entries from part 1 to the ledger accounts.

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply o an increase in demand o a decrease in demand