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Tema [17]
3 years ago
8

Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inve

ntory 10,000 units at $3 1/5 Purchase 5,000 units at $4 1/15 Purchase 5,000 units at $5 1/20 Sales at $10 per unit 10,000 units Flex uses the average pricing method to determine the value of its inventory. What amount should Flex report as cost of goods sold on its income statement for the month of January?
Business
1 answer:
Radda [10]3 years ago
3 0

Answer:

The total cost of goods sold =  $37,500

Explanation:

Given:

Beginning inventory = 10,000 units at $3

Purchase inventory = 5,000 units at $4

Purchase inventory = 5,000 units at $5

Sale inventory = 10,000 units at $10

Total inventory units = [10,000 + 5,000 +5,000]

Total inventory units = [20,000]

Total Cost of inventory units = [(10,000×$3) + (5,000×$4) + (5,000×$5)]

Total Cost of inventory units = [$30,000 + $20,000 + $25,000]

Total Cost of inventory units = [$75,000]

Average price per unit = Total Cost of inventory units / Total inventory units

Average price per unit = $75,000 / 20,000

Average price per unit = $3.75

The total cost of goods sold = 10,000 units sold × $3.75

The total cost of goods sold =  $37,500

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Answer: See explanation

Explanation:

The necessary closing entries from the available information at December 31 will be calculated thus:

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4. Dec 31

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8 0
3 years ago
A current liability is a debt that is reasonably expected to be paid a. out of cash currently on hand b. within one year c. out
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Answer: within one year

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Typically, the current liabilities are settled by using the current assets. Examples of current liabilities are the accounts payable, noted payable, dividends and the short-term debt.

4 0
3 years ago
Equipment was acquired on January 1, 2021, for $33,000 with an estimated four-year life and $2,000 residual value. The company u
Lostsunrise [7]

Answer:

Gain= $850

Explanation:

Giving the following information:

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<u>Now, we can calculate the accumulated depreciation:</u>

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<u>To calculate the gain or loss, we need to use the following formula:</u>

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Book value= 33,000 - 23,250= $9,750

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3 years ago
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Gross income. they are incomes before taxes or adjustments
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