Answer:
Cost of goods purchased= $82,000
Explanation:
Giving the following information:
Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000.
We know that:
Cost of goods purchased= cost of goods sold + ending inventory - beginning inventory
Cost of goods purchased= 84,000 + 18,000 - 20,000= 82,000
The ending balance for March would be $85,700.
You would create a T-account for accounts payable and since accounts payable is a liability, you would credit the beginning balance. The purchases made during the month are also credited because you are increasing the amount in the liability. The $10,700 would not be included because this is unearned revenue and while it is a liability, it does not classify as accounts payable. The $37,800 would be debited since you are decreasing the liability by paying part of it off.
Once doing so, you add up the amounts on the right side and deduct the amounts on the left: (78,200+45,300)-37,800=85,700
These are considered to be "functional units" of operation in a company.
Answer and Explanation:
The computation is shown below:
a. For shipping and handling activity for each product is
For Glasses
= $8 × 2
= $12
For China
= $8 × 4
= $32
And, for Everyday dinner ware
= $8 × 6
= $48
b. the total shipping and receiving costs for the china is
= 3,500 × $32
= $112,000
Hence, in this way the parts could be determined
