Answer:
B
Explanation:
I believe it is the interest rate the federal reserve uses for loaning to banks. Its the minimal rate, also.
Cost of inventory destroyed in fire is $1,140,000
<u>Explanation:</u>
The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.
Cost of sales = Sales – profit on sales
= 9000000-1800000
=$7200000
The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales
=1980000+5880000+480000-7200000
=$1,140,000
Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.
Answer:
- cost of goods sold
- raw materials inventory
- work in process inventory
- finished goods inventory
Explanation:
solution
As manufacturing industry always keep the track of costs of each inventory as product is moving from the raw material inventory in to the work in process and by the work in process it goes into the the finished goods inventory
so order of the flow of goods from beginning to end is
- cost of good sold
- raw material inventory : it is the total cost of material that is use in production process
- work in process inventory : work in process inventory is continually update work cost is record
- finished good inventory : after each job work complete then product is transfer to finished goods inventory
