Answer:
a.$5,667
Explanation:
According to the weighted average cost method, all units on inventory must be priced equally. If the company had 1,000 units at $1.00 and purchased an additional 5,000 units for $5,800, the total cost per unit is:
If 5,000 units were sold, the cost of goods sold is:
Palmer Company's cost of goods sold was $5,667.
<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
Cash inflow during Year 3 = $6980
Cash inflow during Year 4 = $2750
Discount rate = 12.5%
NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
Answer:
The straight-line depreciation method and the double-declining-balance depreciation method:
Produce the same total depreciation over an asset's useful life.
Explanation:
The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP). The other two methods are sum of the years' digit and units of production. The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount. For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate. Depreciation expense is then calculated on the declining balance until the salvage value is left. This is why they produce the same depreciation over the asset's useful life.
