Answer:
Shopping product
Explanation:
Shopping products refer to those products which require considerable time, efforts in research, discussions and opinions and which are not purchased frequently.
Such products are purchased after careful evaluation of all the alternatives available to an individual and after comparison of prices and offers.
Consumers in such cases take considerable time in arriving at the buying decision, whether to buy or not, or to delay such purchases. Such purchases require research and significant efforts on part of the consumer.
Answer:
$124,440
Explanation:
Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back
$679 * 30 year * 12 months in a year
= $244,440
With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount
= $244,440 - $120000
= $124,440.
Answer:
c.4.2 years
Explanation:
The computation of the estimated cash payback period is given below:
As we know that
the estimated cash payback period is
= initial investment ÷ net cash flow per period
= $406,000 ÷ $96,000
= 4.2 years
Hence, the estimated cash payback period is 4.2 year
Therefore the option c is correct
Answer:
b) $500 is recognized in year 1 and $8,500 in year 2.
Explanation:
The calculation is shown below:
Since the payment is received for 18 months of $9,000
So for one month, the payment is
= $9,000 ÷ 18 months
= $500
This $500 should be recognized in year 1 and the remaining amount i.e
= $9,000 - $500
= $8,500
This $8,500 should be recognized in year 2
Hence, b option is correct
Answer:
Shellhammer Company
Ending inventory = $712
Cost of goods sold = $2,492
Explanation:
a) Data and Calculations:
Date Item Units Unit Cost Total Cost
September 1 Inventory 100 $3.34 $334.00
September 8 Purchases 450 3.50 1,575.00
September 18 Purchases 350 3.70 1,295.00
September 30 Total 900 $3,204.00
Ending inventory 200
Cost of goods sold 700
Weighted Average cost = Total cost of goods available for sale/Total units available for sale
= $3,204/900 = $3.56
Value of Ending Inventory = $3.56 * 200 = $712
Value of Cost of goods sold = $3.56 * 700 = $2,492
b) The weighted average inventory costing, under the period inventory system, used by Shellhammer is an assumption that the costs attributable to ending inventory and cost of goods sold are determined from the average cost per unit and that these the average cost is ascertained at the end of the period. Therefore, the cost of beginning inventory and purchases are accumulated and divided by the units of goods available for sale.
