All categories

2 years ago

West Co. recorded the following inventory information during the month of February:

1 answer:

6 0

The correct option is C. The valuation of the cost of goods sold which is recorded in its book as $5,900 and stock available for sale is $3,900 under the FIFO method.

<h3>Why is the FIFO method used for Inventory Valuation?</h3>

FIFO will enable you to claim a higher average cost-per-piece on newer inventory, which can help you save money on taxes if your inventory costs are declining over time. Because it assumes that older products are no longer in use, FIFO does not necessitate as much documentation as LIFO.

Calculation Cost of Goods Sold (COGS) under FIFO Method:

COGS = 800 x 2 + 700 x 3 + 300 x 3 + 1300 x 1 =

COGS = $5,900

The calculation for Stock available for Sale:

Stock available for Sale = 700 x 1 + 800 x 4

Stock available for Sale = $3,900

Thus, the Cost of Goods Sold is $5,900, and the stock available for sale is $3,900 under the FIFO method.

Learn more about FIFO here:

brainly.com/question/17924678

#SPJ1

You might be interested in

What happens when you move a section header

german

Nothing really just the header moves where ever you move it to lol

5 0

3 years ago

Read 2 more answers

How many years are required for an investment to double in value if it is appreciating at the rate of 9% compounded continuous

Vesna [10]

Answer:

time required is 7.70 years

Explanation:

given data

interest rate = 9%

solution

we know with the compounded continuously rate r and time t amount is

A(t) = A(o) $e^{rt}$ .................1

and we have given amount is double so

A(t) = 2 A(o)

so from equation 1 put the value and we get here

2 A(o) = A(o) $e^{rt}$

ln(2) = 0.09 t

solve it we get time

time t = 7.70 years

so time required is 7.70 years

7 0

3 years ago

Two drivers—Brian and Crystal—each drive up to a gas station. Before looking at the price, each places an order. Brian says, "I'

krek1111 [17]

Answer:

Brian's demand is perfectly inelastic.

Crystal's demand is unit elastic.

Explanation:

Given that

Brian said = 10 gallons of gas

where, Crystal says = $10 worth of gas

By seeing the above information, we concluded that the Brain's demand is perfectly inelastic as the demand of the gallons are fixed

And, the crystal demand is unitary elastic as the expenditure would remain unchanged or fixed

In addition, the perfectly inelastic is when elasticity is zero , and unitary elastic is when elasticity is equal to one

7 0

3 years ago

May 31, Novac Corp. Has net sales of $415,000 in cost of goods available for sale of $286,000 compute the estimated cost of the

BabaBlast [244]

Answer:

$24,550

Explanation:

Computation for the estimated cost of the ending inventory

Net Sales = $415,000

Gross Profit rate= 37%

Cost of goods Sold = 100%- 37% = 63%

Cost of Goods Sold =$415,000*63% = $261,450

Cost of Goods Available for sale = $286,000

Using this formula

Estimated Cost of Ending Inventory= Cost of goods available for sale - Cost of Goods Sold

Let plug in the formula

Estimated Cost of Ending Inventory = $286,000-$261,450

Estimated Cost of Ending Inventory = $24,550

Therefore the estimated cost of the ending inventory is $24,550

5 0

3 years ago

The tax breaks, bailouts, direct payments, and grants that the government gives to corporations are referred to as

Wittaler [7]

Answer:

Corporate welfare

Explanation:

Corporate welfare is defined as the giving of financial grants, tax breaks, bailouts, etc by the government to large firms or organizations. This corporate welfare also shows how much less these organizations need such benevolent acts from the government compared to the poor and average members of the society. More often than not, the value of corporate welfare is not disclosed to the public thereby making it difficult to wrap one's head around how much corporate welfare the government is giving these corporations or organizations.

Cheers.

8 0

3 years ago