Answer: (a) $325,000
(b) $1,150,000
Explanation:
(a) For Music world retail:
Cost of goods sold = Goods available for sale - Ending merchandise inventory
= (Beginning merchandise inventory + Cost of purchases) - Ending merchandise inventory
= ($200,000 + $300,000) - $175,000
= $500,000 - $175,000
= $325,000
(b) For Wave-Board Manufacturing:
Cost of goods sold = Goods available for sale - Ending finished goods inventory
= (Beginning finished goods inventory + Cost of goods manufactured) - Ending finished goods inventory
= ($500,000 + $875,000) - $225,000
= $1,150,000
Answer:
Fixed Inputs : ii , iii , vi , vii
Variable Inputs : i , iv , v
Explanation:
Short run is a period in which few factors (inputs) of business can be changed. Fixed Inputs are inputs of the business which are constant in short run. Variable Inputs are inputs of business which are change-able in short run.
Fixed Inputs : Chairs , Upper Management Salary, Computers , 2 Years lease on office & rental space. As, these can't be changed in short run.
Variable Inputs : Shipping , Beads , Hourly Labour. As, these can be changed in short run.
Answer:
The answer is $30000
Explanation:
$ $
Sales 195000
<u>Less cost of sales</u>
Opening stock 12000
<u>Add</u> purchases <u> 97000</u>
109000
<u>Less </u>closing stock <u>6000</u>
<u>103000</u>
Gross profit 92000
<u>Less</u> operating expenses <u>62000</u>
Operating income <u>30000</u>
The operating income is<u> $30000</u>
