1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nuetrik [128]
3 years ago
5

Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan.1 Inventory 26 units at

$400 per unit Feb. 19 Purchase 57 units at $460 per unit June 8 Purchase 62 units at $540 per unit Oct. 7 Purchase 60 units at $550 per unit There are 48 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost under each of the following methods. a. Determine the inventory cost by the first-in, first-out method. $ 28,187 b. Determine the inventory cost by the last-in, first-out method. $ c. Determine the inventory cost by the average cost method. Do not round intermediate calculation and round final answer to the nearest whole value.
Business
1 answer:
Mila [183]3 years ago
4 0

Answer:

a. $26,400

b. $20,520

c. $24,140.64

Explanation:

a. The computation of inventory cost by the first-in, first-out method is shown below:-

Inventory cost under first-in, first-out method = Number of units × Unit cost of 3rd purchase

= 48 × $550

= $26,400

b. The computation of inventory cost by the last-in, first-out method is shown below:-

Inventory cost by Last in first out method = (Jan 1 units × Jan 1 Inventory per unit) + (Number of units - Jan 1 units) × Feb. 19 Inventory per unit

= (26 × $400) + (48 - 26) × $460

= $10,400 + $10,120

= $20,520

c. The computation of inventory cost by the average cost method is shown below:-

Average cost per unit = (26 × $400) + (57 × $460) + (62 × $540) + (60 × $550)

= $10,400 + $26,220 + $33,480 + $33,000

= $103,100

Per unit cost = Inventory cost ÷ Total number of units

= $103,100 ÷ (26 + 57 + 62 + 60)

= $103,100 ÷ 205

= $502.93

Inventory cost under average cost method = Per unit cost × Number of units

= 48 × $502.93

= $24,140.64

Therefore we have applied the formulas.

You might be interested in
A company's chart of accounts is: a detailed list of the accounts that make up the five financial statement elements. the set of
polet [3.4K]

Answer:

A detailed list of the accounts that make up the five financial statement elements.

Explanation:

The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.

The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).

Examples of accounts that can be part of a firm's chart of accounts are: land (asset), cash (asset), notes payable (liabilities), outstanding stock (equity), operating expenses (expenses), and sales revenue (revenues).

The chart of accounts can differ greatly from company to company simply because companies engage in vastly different economic activities.

8 0
3 years ago
_________ management emphasized internal operations because managers were concerned primarily with meeting the explosive growth
xenn [34]

Answer:

Systematic management

Explanation:

Systematic management is an approach of management which focus on the process of the management instead of the final outcome. The objectives of this approach to the management are:

To establish the particular procedures and processes to be used in the completion of the job task.

So, the systematic management is the one which focus on the internal operations as managers are concerned with the growth brought about through the Industrial Revolution.

5 0
3 years ago
A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly
Harman [31]

C. Product line extension.

7 0
2 years ago
How does the trade benefit the society?
alexdok [17]

Answer:

<em>Trade is critical to America's prosperity - fueling economic growth, supporting good jobs at home, raising living standards and helping Americans provide for their families with affordable goods and services.</em>

4 0
3 years ago
Through coordinating partnerships with dedicated suppliers, Warby Parker have ensured quality, built a lean manufacturing operat
Sedbober [7]

Answer:

B. Profit / Economic

Explanation:

The triple bottom line addresses three factors that a socially responsible company must adhere to. The People / Social factor discusses the importance of the social needs of the customers which the customer must fulfill. The Planet / Environment factors are the factors that discusses about the responsiblity of the company to manufacture environmental friendly products that do not harm the environment and is sustainable. The Profit / Economic factor is one of the three factor which company must try to earn profit to keep the business running and thus benefits by earning profit to a lot of stakeholders.

The quality product is a reason why the customer prefer the company's product which helps the company in making profit. So the profit / economic factor is the right option.

6 0
3 years ago
Other questions:
  • On January 1, Wei company begins the accounting period with a $40,000 credit balance in Allowance for Doubtful Accounts. On Febr
    8·1 answer
  • A local restaurant has prepared a new recipe for it's lunch menu which form of nonprice competition is this?
    12·2 answers
  • Vandy Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance
    5·1 answer
  • 4.what is the multinational pact that calls for a worldwide reduction in greenhouse gases?
    6·2 answers
  • $1,000 of supplies were purchased at the beginning of the month. $300 were used during the month. (The Supplies account was incr
    5·1 answer
  • Bad Debts account has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts
    7·1 answer
  • Assume that you own a small boutique hotel. In an attempt to raise revenue you reduce your rates by 20 percent. However, your re
    15·1 answer
  • According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is
    13·1 answer
  • On September 1, 2018, Able Company purchased a building from Regal Corporation by paying $580,000 cash and issuing a one-year no
    6·1 answer
  • Robert owns a $214,000 town house and still has an unpaid mortgage of $150,000. In addition to his mortgage, he has the followin
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!