Answer:
$5500.
Explanation:
The computation of the cost of goods sold is shown below:
Let us assume beginning WIP be $2000
So,
ending WIP is
= ($2000 - $1000)
= $1000
And,
Let us assume the beginning finished goods be $1000
So, the ending finished goods is
= ($1000 + $500)
= $1500
Now as we know that
Cost of goods manufactured = Total manufacturing cost + Beginning WIP - Ending WIP
= $5000 + $2000 - $1000
= $6000
Now
cost of goods sold=Cost of goods manufactured+Beginning finished goods-Ending finished goods
= $6000 + $1000 - $1500
=$5500.
Answer: See explanation
Explanation:
The missing amounts are gotten below:
Sales revenue:
May company = 90,000
Reed company = 107,000
Sales returns
May company = 300
Reed company = 5,000
Net sales
May company = 87,000
Reed company = 102,000
Cost of goods sold
May company = 56,000
Reed company = 60,500
Gross profit
May company = 31,000
Reed company = 41,500
Operating expenses
May company = 15,000
Reed company = 26,500
Net income
May company = 16,000
Reed company = 15,000
Then, the gross profit rate would be calculated as:
= Gross Profit/Net sales
For May company, this will be:
= 31,000/87,000
= 0.36
= 35.6%
For Reed company, this will be:
= 41,500/102,000
= 0.47
= 40.7%
Note that some of the formula used to solve the above question include the net sales which is the difference between the sales and sales return.
Gross profit is the difference between the net sales and the cost of the goods sold
Net income is the difference between the gross profit and the operating expenses
Answer:
At one time, the centrally planned economy of China encouraged farmers to produce iron in their backyards, rather than have factories make iron. This proved unsuccessful, since most of the farmers' iron was of poor quality. Why do you think this approach was unsuccessful? How could this experiment become a success in a free market economy?
The reason why the approach whereby farmers make iron in their backyard could not work out is as a result of not being inclined in that market as they are only skilled in agriculture, also they do not understand the rhetorics of the business.
The experiment would be a success in a free market as anyone is allowed to sell such product, this gives room for competition and helps to price reduction which is good for the consumers, also it would help in improvement of such product's quality because of competition involved
Explanation: