Prince Rupert fish company buys and sells fishes. The following is the report for Prince Rupert fish company. Diseased fish must be thrown away before it is sold June July Beginning inventory 2,200 Fishes caught 5000 3000 Diseased fishes 1200 700 Sold 1600 3,900 Variable cost Processing cost per fish 6. 6.5 Marketing cost per fish 2 1.9 Fixed Costs Administrative cost 20,000 16,000 The selling price per fish is $ 35. Prepare the followings. i. Statement of comprehensive income for June and July under variable costing and absorption costing. ii. Show the reconciliation between variable costing and absorption costing. iii. Why is there a difference in the cost between the variable costing and absorption costing?
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- Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and resells it to end consumers. The annual demand for the company’s product is 49,000 units. Ordering costs are $500 per order and carrying costs are $100 per bike per year, including $40 in the opportunity cost of holding inventory. QWhat is the cost impact on the company of excluding the opportunity cost of carrying inventory when making EOQ decisions? Why do you think the company currently excludes the opportunity costs of carrying inventory when evaluating the manager’s performance? What could the company do to encourage the manager to make decisions more congruent with the goal of reducing total inventory costs?Painter Inc. sells several types of paint. Due to the low demand, it would be testing its inventory for impairment. It gathered the following information: No. Brand Unit Selling Price Ave. Unit Type Size Units Unit Cost (Updated) Cost to Sell 001 A Water-based 4-liter 10 P 350 P 400 P 70 002 A Water-based 16-liter 20 1,150 1,300 250 003 A Acrylic 16-liter 20 1,200 1,700 300 004 B Water-based 16-liter 5 1,075 1,250 200 005 B Acrylic 4-liter 15 400 600 70 006 B Acrylic 16-liter 10 1,250 2,000 250 How much should be reported as loss from inventory write-down?JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash…
- Allegiance, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $45,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $23,000. There the goods could be sold for $80,000. What alternative is more desirable and what is the relevant cost for that alternative?JIN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the premium transactions for the year given below? (if net cash outflow,…The I-75 Carpet Discount Store in North Georgia stocks carpet in its warehouse and sells it through an adjoining showroom. The store keeps several brands and styles of carpet in stock; however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle) given that the store is open every day except Sunday, Thanksgiving Day, and Christmas Day (which is not on a Sunday) (311 days/yr). Determine the following: A. Determine the optimal order quantity. B. Determine the number of orders per year.C. Determine the time between orders.D. Determine the annual set-up cost.E. Determine the annual holding cost.F. What is the total inventory cost of the Q*…
- SASA Trading involves in making bottled sauce called kicap. Currently, the company operating below its full capacity. The photos is the financial report for the year of 2021. Additional information: There’s one direct seller offered to purchase 7,000 bottles of kicap at $0.9 per bottle. Due to below selling price and its production cost per unit, the company is unwilling to accept the order. Requirements: a) Determine whether SASA Trading should accept or reject the order. Show the computations. b) Before making decision, discuss the relevant qualitative factors that need to be considered on whether to accept or reject it.This question is based on t he following information: B Hon Company purchases thermostats and use them in heating units it manufactures. Annual requirement for the thermostat is 2,000 units. The cost per thermostat is P 20. The cost of placing a single order is P 50 while the cost of storage is 25% of the average inventory value. The suppler of the thermostat offers a discount of 2% if the company will order in lots of 500 units. 1. How much would be the total costs associated with the inventory if the company adopts the discounted ordering policy? . A. P 40,000 B. P 40,625 C. P 41,000 D. P 42,0002. How much is the net cash flow net of income taxes for the 3rd year?A. 17,268B. 22,000C. 22,994D. 30,618HIJK Company has on its inventory for almost three years electronics items with historical cost of 1,200. The cost to sell this products now is 50 per unit and can be sold at a price of 800 per unit. The said electronics items will become obsolete and proper provision for obsolescence is already accounted. What course of action is beneficial to the company as a whole? Sell the electronics items since the incremental benefit is more than the incremental cost. Net incremental benefit of selling is 750 per unit Do not sell the electronics items since the selling price is below the total cost. A net loss will be 450 per unit if sold.
- ArtyFarty Ltd. manufactures handmade, individually painted clay plates. These plates are sold to stores that sell kitchenware. ArtyFarty Ltd. manufactures large and small plates.The cost price of the clay amounts to R5.00 for a large plate and R2.50 for a smallplate. The price of the paint they use amounts to R4.30 for a large plate and R2.70 fora small plate, irrespective of which color is used. Normally 2% of paint is wasted whenit dries on the paintbrushes and pallets.The factory employs 10 ladies who, according to the budget, can produce 20 plateseach (large or small) per day. The factory operates 230 days a year. These ladies arepaid according to the number of plates they complete each month. 42 000 plates werecompleted during the year and a wage of R336 000 was paid out to the ladies.Variable manufacturing overheads amount to R1.20 per large plate and R1.00 persmall plate. Fixed manufacturing overheads amounted to R138 000 for the year. Thesize of the plate does not influence the…Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days The container gets unloaded at Total’s warehouse in Paris. During the unloading process, the cargo is damaged. Who bears the loss related to this damage?Assume that Nantucket Nectars reports the following costs: Nantucket Nectars Company of Making 12-Ounce Glass Bottles (1000,000 units) Total Cost for 1,000,000 Bottles Cost per Bottle DM $ 60,000 $0.06 DL 20,000 0.02 Variable MOH 40,000 0.04 Fixed MOH 80,000 0.08 Total Costs $ 200,000 $ 0.20 Another manufacturer offers to sell Nantucket Nectars the bottles for $0.18. Should Nantucket Nectars make or buy the bottles? How to make this decision Compare: prices from outside supplier versus the relevant cost Price from outside = 0.18 TC = 0.20 Benefit of buying it with another supplier = 0.02 Benefit = 20,000 and hence should buy bottles