The Digby's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating

Tamarisk should report an inventory amount of $252,000 as of December 31. To arrive at this figure, consider the following calculation: Inventory = Stock on hand + goods acquired from Sheffield Corp + goods sold to Wildhorse Co. This gives us the calculation: $190,000 + $29,000 + $33,000 = $252,000. All relevant amounts were taken into account, including considerations for FOB destination and FOB shipping point, which contribute to the physical inventory count.

The solution is available in an excel document.

Helpful details:

Year 4 = $360,000 - $84,000 = $276,000

Preferred share dividend = Total Preferred dividend for that year / total number of preferred shares.

Answer:

The calculations are presented below:

Explanation:

1.                       FIFO    LIFO Average cost  

Cost of goods sold      

Beginning inventory       $11,200      $11,200  $11,200

(400 units ×  $28)                          

Purchases                       $16,625    $16,625   $16,625

(475 units × 35)                  

Total goods available $27,825    $27,825   $27,825  

Ending inventory             $18,025    $15,575    $16,695

(525 units)  

Cost of goods sold          $9,800    $12,250    $11,130  

Calculated using ending inventory = 475 × $35 + 50 × $28    

FIFO = $18,025  

For LIFO ending inventory: 400 × $28 + 125 × $35

Results in $15,575  

Average cost is found by: $27,825 ÷ $875    

Which equals 31.8      

Ending inventory is calculated as 525 × 31.8

This leads to $16,695

2.                           FIFO            LIFO         Average

Sales

(307 × $50)                $15,350         $15,350    $15,350

Cost of goods sold     $9,800    $12,250    $11,130

Gross Profit                 $5,550           $3,100      $4,220

Expenses                     $1,680           $1,680      $1,680

Net income                  $3,870           $1,420       $2,540

3. FIFO ranks as 3

LIFO ranks as 2

Average ranks as 1

Response:

The cash collection totals $122,000

and the amount receivable as of August 31 stands at $97,000

Clarification:

For August, the anticipated cash collection is $122,000, while the receivables amount on August 31 is $97,000.

A cash collection schedule is included in the attached MS Excel file with this response.

Response:

$20,000

Clarification:

At the issuance of the bond, the bond discount is calculated as follows:

= Value of Bonds issued -  [(Value of Bonds issued ÷ 100) × Issue price]

= 705,000 - [($705,000 ÷ 100) × 98]

= $705,000 - $690,900

= $14,100

Bond Payable equals $705,000

The unamortized bond discount is calculated as:

= Bond discount at issuance - Amortized amount

= $14,100 - $8,200

= $5,900

Redemption Value of Bond is determined by:

= Retired price of bonds × 7,050

= 102 × 7,050

= $719,100

Loss on retirement of the Bond is calculated as:

= Redemption Value of Bond - (Value of Bonds issued -  Unamortized bond discount)

= 719,100 - (705,000 - 5,900)

= 719,100 - 699,100

= $20,000