Reference no: EM13882685
In 2012 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gross profit recognized from the sale of Zelenex in 2013.
Moncrief uses a periodic inventory system and the LIFO inventory method. Late in 2013, the following information is available concerning the inventory of Zelenex:
Beginning inventory, 1/1/13 (10,000 units @ $30) ....... $ 300,000
Purchases (40,000 units @ $30) ............. 1,200,000
Sales (35,000 units @ $60) ............... $2,100,000
By the end of the year, the purchase price of Zelenex had risen to $40 per unit. On December 28, 2013, three days before year end, Moncrief is in a position to purchase 20,000 additional units of Zelenex at the $40 per unit price. Due to the increase in purchase price, Moncrief will increase the selling price in 2014 to $80 per unit. Inventory on hand before the purchase, 15,000 units, is sufficient to meet the next six months sales and the company does not anticipate any significant changes in purchase price during 2014.
Required:
1. Determine the effect of the purchase of the additional 20,000 units on the 2013 gross profit from the sale of Zelenex and the payment due to Jim Lester.
2. Discuss the ethical dilemma Moncrief faces in determining whether or not the additional units should be purchased.
|
Biggie company performed its annual physical inventory
: 1.At the end of 2013, the Biggie Company performed its annual physical inventory count.
|
|
What the independent and dependent variable in this model
: Interpret the coefficient of the price of Starbucks Coffee. What is it saying literally? Does this interpretation make sense? Why or why not? What are the independent variable(s) and dependent variable(s) in this model? (You can label them on the e..
|
|
What do you conclude
: Compute the sample autocorrelation function for personal disposable income (Yt) for m = 13 lags. Plot the sample correlogram. Repeat for the ?rst-differenced series (ΔYt).
|
|
Equilibrium constant kc for the reaction
: The solid NH4HS is in equilibrium with the gases NH3 and H2S. An equilibrium mixture contains solid NH4HS, 0.12 M NH3 and 0.021 M H2S. NH4HS(s) NH3(g)+H2S(g). a) What is the value of the equilibrium constant Kc for the reaction?
|
|
Discuss the ethical dilemma moncrief faces
: In 2012 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex.
|
|
Calculate the equilibrium constant for the spontaneous
: Calculate the equilibrium constant for the spontaneous redox reactions at 298K that would occur using the following two half-reaction. I need a refresher. I haven't done this in a while and someone just threw this problem at me.
|
|
Describe the basic features of open credit lines
: Describe the basic features of the following:a. Open credit lines b. Asset based loans c. Term commercial loans d. Short term real estate loans
|
|
Calculate total revenue for the company
: Calculate total revenue for the company (Show work). Calculate the margin for this company. (Write down the equation and solve the problem). How many units (Chocolate boxes) must this company sell to breakeven? How many years will it take? Show your ..
|
|
What percentage of women have electricity in the home
: Find the smallest and largest values of children in the sample. What is the average of children?
|