Business, 14.06.2021 15:50 AutumnJoy12

The following information was available from the inventory records of Rich Company for January: Units Unit Cost Total Cost
Balance at January 1 9,000 $9.77 $87,930
Purchases:
January 6 6,000 10.30 61,800
January 26 8,100 10.71 86,751
Sales:
January 7 (7,500)
January 31 (11,100)
Balance at January 31 4,500
A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
Please EXPLAIN answer for a thumps-up. I'm tried of wrong answers, please don't answer it unless you are 100% sure.

Answers: 1

Show answers

Answers

Answer from: sophiateaches053

A. The correct option is b. $46,067.

B. The correct option is d. $46,620.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answers is now given as follows:

A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?

Note: See part A of the attached excel file for the calculation of the of units and cost of goods available for sale.

Since Rich does not maintain perpetual inventory records, this implies that this is a periodic inventory system. And update to inventory in a periodic inventory system are made on a regular basis, such as monthly, quarterly, etc.

From the part A attached excel file, we have:

Units of goods available for sale = 23,100

Cost of goods available for sales = $236,481

Weighted-average cost per unit = Cost of goods available for sales / Units of goods available for sale = $236,481 / 23,100 = $10.2372727272727

Inventory at January 31 = Units of inventory balance at January 31 * Weighted-average cost per unit = 4,500 * $10.2372727272727 = $46,068

From the options the closest one is b. $46,067. Therefore, the inventory at January 31 is $46,067 and the correct option is b. $46,067.

B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?

Note: See part B of the attached excel file for the calculation of the inventory at January 31 (in bold red color).

Under Perpetual Inventory system, the inventory is updated whenever a purchase or sale is made. It's a procedure that happens in real time.

In the Part B of the attached excel file, the following rates in light red color are made as follows:

Rate on January 6 = ($87,930 + $61,800) / 15,000 = $9.98 per unit

Rate on January 26 = ($74,865 + 86,751) / 15,600 = $10.36 per unit

From the part B attached excel file, we have:

Inventory at January 31 = $46,620.

Therefore, the correct option is d. $46,620.

Answer from: Quest

What are the choices that are list

Answer from: Quest

i might look it up later.

Another question on Business

Business, 22.06.2019 19:00

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

Answers: 1

Answer

Business, 22.06.2019 20:20

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.

Answers: 2

Answer

Business, 23.06.2019 11:20

The manager of the quick stop corner convenience store (which never closes) sells four cases of stein beer each day. order costs are $8.00 per order, and stein beer costs $.80 per six-pack (each case of stein beer contains four six-packs). orders arrive three days from the time they are placed. daily holding costs are equal to 5 percent of the cost of the beer. if he were to order 16 cases of stein beer at a time, what would be the average inventory level? a. 0.25 days b. 3 days c. 1 day d. 4 days e. 20 days

Answers: 1

Answer

Business, 23.06.2019 16:30

Consider the following potential events that might have occurred to global on decemberâ€‹ 30, 2016. for eachâ€‹ one, indicate which line items inâ€‹ global's balance sheet would be affected and by how much. also indicate the change toâ€‹ global's book value of equity. a. global used $ 19.8$19.8 million of its available cash to repay $ 19.8$19.8 million of itsâ€‹ long-term debt. b. a warehouse fire destroyed $ 4.9$4.9 million worth of uninsured inventory. c. global used $ 4.6$4.6 million in cash and $ 5.1$5.1 million in newâ€‹ long-term debt to purchase a $ 9.7$9.7 million building. d. a large customer owing $ 3.2$3.2 million for products it already received declaredâ€‹ bankruptcy, leaving no possibility that global would ever receive payment. e. â€‹global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 48 %48%. f. a key competitor announces a radical new pricing policy that will drastically undercutâ€‹ global's prices.

Answers: 2

Answer

You know the right answer?

The following information was available from the inventory records of Rich Company for January: Uni...

Questions