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
VladimirAG [237]
2 years ago
12

Knowledge Check 01 Assume that we use a perpetual inventory system and that five identical units are purchased at the following

dates and costs: April 5 $10 April 10 $12 April 15 $14 April 20 $16 April 22 $17 One unit is sold on April 25. The company uses the first-in, first-out (FIFO) inventory costing method. Identify the cost of the ending inventory on the balance sheet.
Business
1 answer:
Natasha2012 [34]2 years ago
6 0

Answer:

$59

Explanation:

Under the First in first out inventory valuation system, items sold are sold based on date of purchase i.e items that were first purchased will be sold before items purchased subsequently.

This is usually adopted for perishable inventory or inventories with expiration periods.

As such, the items sold on April 25 will be the one purchased on April 5, hence ending inventory balance

= $12 + $14 + $16 + $17

= $59

You might be interested in
At the beginning of Year 1, a company reported a balance in common stock of $164,000 and a balance in retained earnings of $64,0
blagie [28]

Answer:

Explanation:

The preparation of the statement of stockholder equity and balance sheet is presented below:

a. Statement of stockholder equity

<u>Particulars            Common stock         Retained earnings      Total stock equity</u>

Beg balance        $150000                   $50,000                      $200,000

Add: Addi shares  $40,000                                                       $40,000

Add: Net income                                    $30,000                     $30,000

Less: dividend                                         -$10000                     -$10000

Total                     $190,000                 $70,000                    $260,000

b. Balance sheet

Assets                          Amount                    

Cash                               $52,600                  

Supplies                         $13,400                

Prepaid rent                   $24,000                    

Land                               $200,000    

Total assets                   $290,000          

Liabilities       Amount

Account payable $9,100

Un-earned revenue $2,400

Salaries payable $3,500

Notes payable      $15,000

 Stockholder equity $260,000

Total liabilities & stockholder equity $290,000

6 0
2 years ago
A customer holds 1,000 shares of ABC stock valued at 80 in a margin account. The debit balance in the account is $35,000. ABC de
Tom [10]

Answer:

C

Explanation:

Reduction of cost basis per share.

When you take a look at some of the rules that IRS has, you see that stock dividends do not get taxsd at the time of receipt. They don't get taxed because, the shareholder does not receive anything from the company, only but a hope on any increased future share price increment or appreciation.

7 0
3 years ago
List the four steps in the response model for answering behavioral interview questions.
ad-work [718]
One technique in answering behavior interview questions is STAR where S makes for specific situation, T for task, A for action and R for result. SImple but efficient procedure
Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
7 0
3 years ago
Read 2 more answers
A taxpayer understated the tax liability by $10,000. The total tax liability was $50,000. No disclosure of the return position w
posledela

Answer:

2,000

Explanation:

To calculate how much of an accuracy related penalty the tax payer will be assessed, we use the following method.

3 0
3 years ago
"Parker Company stock is currently selling for $130.00 per share and the firm's dividends are expected to grow at 6 percent inde
8_murik_8 [283]

Answer:

Cost of equity = 10.7%

Explanation:

<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity. </em>

The model is given below:

P = D× (1+g)/(r-g)

P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity

So we substitute  

130 = 5.50× (1+r)/(r-0.06)

cross multiplying

(r-0.06)× 130 = 5.50 × (1+r)

130 r- 7.8  = 5.50 + 5.50r

collecting like terms

130 r - 5.50r=5.50 + 7.8

124.5  r= 13.3

Divide both sides by 124.5

r =13.3 /124.5=  0.1068

r=0.1068 × 100=  10.7%

Cost of equity = 10.7%

6 0
2 years ago
Other questions:
  • In their relationship, neither bette nor sam wants to take control or make decisions. this type of relationship is known as a co
    6·1 answer
  • The fungal division needs 10,000 plates of potato dextrose agar annually. Currently, the fungal division purchases them from Ari
    7·1 answer
  • Times-Roman Publishing Company reports the following amounts in its first three years of operation:
    7·1 answer
  • Suppose that a firm has purchased some land for $1,250,000 a year ago to develop a new outlet, and the land now would sell $2,00
    12·1 answer
  • Carl, the information technology head at Cloud Denim, a clothing company, has to update the enterprise software system used by t
    8·1 answer
  • E6-15 Allocating Transaction Price to Performance Obligations [LO 6-5] A company separately sells home security equipment and 12
    8·1 answer
  • Wang Co. manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed co
    6·1 answer
  • What two skills are important to a phlebotomist<br>​
    7·2 answers
  • Apple's products are well known and valued because the demand, customer loyalty, and company's price premium rank high in the co
    10·1 answer
  • Prior to the closing, one final inspection should take place. This is also known as the final what?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!