Answer:
FIFO
FIFO means First in First Out. This method values cost of sales at the earliest prices
Cost of Goods Sold = (3,880 units × $8) + (5,430 units × $10)
= $85,340
LIFO
LIFO means Last in Fist Out. This method values cost of sales at the latest prices.
Cost of Goods Sold = (8,660 units × $10) + (650 units × $8)
= $91,800
Weighted Average Cost
The unit cost is re-calculated with every new purchase of units made. The cost of sale will be valued on the newly calculated average unit cost.
Unit Cost = Total Cost ÷ Total Units
= (3,880 units × $8) + (8,660 units × $10) / 12,540 units
= $9.381
Cost of Goods Sold = Units Sold × Unit Cost
= 9,310 units × $9.381
= $ 87,337.11
Answer:
Warranty Expense (Debit) $3,960
Warranty Liability (Credit) $3,960
Explanation:
The principle we apply while making entries for standard warranty is this:
The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>
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In our question, 4.5% is the estimated warranty expense.
The company then sets off the estimated warranty expense (Debit)
(<em>4.5% * $88,000 = $3,960</em>)
with the warranty liability (Credit) to entertain any claims in future.
Answer: $4680
Explanation:
The joint cost allocated to Preon will be calculated below as:
Preon's value will be:
= 14000 × $6.00
= $84000
Paron's value will be:
= 28000 × $2.00
= $56000
Total value = Preon's value + Paron's value
= $84000 + $56000
= $140000
The joint cost allocated to Preon will be
= 7800 × 84000/140000
= $4680
Answer:
$4
Explanation:
Every year, the bond will make a year of 1% of 100.
1% of $100 is equal to
=1/100 x $100
=0.01 x 100
=$1
In four years, the bond will have made $1 X 4
=$4 dollars
This best illustrates the value of the spacing effect.
This type of an effect refers to the fact that learning is better if it is extended over a long period of time. So, if you are studying for an exam, it is better to study for a month, where each day you will read a portion of a lesson, rather than pull an all-nighter and cram it all.
