Question
1.Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $2900 and received 7300
1.Confectioners, a chain of candy stores, purchases its candy in bulk from its suppliers. For a recent shipment, the company paid $2900 and received 7300 pieces of candy that are allocated among three groups.
Group 1 consists of 2170 pieces that are expected to sell for $0.15 each.
Group 2 consists of 4840 pieces that are expected to sell for $0.33 each.
Group 3 consists of 290 pieces that are expected to sell for $0.69 each.
Using the relative sales value method, what is the cost per item in Group 1?
a.$0.21.
b.$0.45.
c.$0.94.
d.$0.40.
2. Oriole Corporation, a manufacturer of Mexican foods, contracted in 2020 to purchase 1100 pounds of a spice mixture at $4.10 per pound, delivery to be made in spring of 2021. By 12/31/20, the price per pound of the spice mixture had dropped to $3.80 per pound. In 2020, Oriole should recognize
a | a loss of $330.00. |
b | a gain of $330.00. |
c | a loss of $4510.00. |
d | no gain or loss |
3. Pharoah Corp. has annual sales totaling $1218000 and an average gross profit of 20% of cost. What is the dollar amount of the gross profit?
a | $203000. |
b | $304500. |
c | $182700. |
d | $243600. |
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