Sylvia Corporation Sold 12,500 Units of Its Single Product During

question 23

Essay

Sylvia Corporation sold 12,500 units of its single product during the year, reporting a cost of goods sold that totaled $250,000. A review of the company's accounting records disclosed the following information:

Sylvia is subject to a 30% income tax rate.
Required:
A. Determine the selling price per unit.
B. Management established a goal at the beginning of the year to reduce the company's investment in finished-goods inventory and work-in-process inventory.
1. Analyze cost of goods sold and determine if management's goal was achieved with respect to finished-goods inventory. Show computations.
2. Analyze the firm's manufacturing costs and determine if management's goal was achieved with respect to work-in-process inventory. Show computations.
C. Is the company profitable? Show calculations.

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Definitions:

Galton

A pioneer in the field of eugenics and psychometrics, known for his studies on the heritability of intelligence.

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A collection of tests administered to evaluate cognitive functioning by assessing brain and nervous system integrity.

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Conditions or situations that provide the best possible environment for achieving a desired outcome or for the occurrence of a specified event.

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Relating to the science or practice of medicine, concerned with the diagnosis, treatment, and prevention of disease.