Answer:
$190.75
Explanation:
In this question, we are asked to use weighted average method to find the cost to which the 14 units sold is closest to.
We proceed as follows;
On April one, there were 9 items in the inventory with a cost of $13 per item. The total cost here would be 13 * 9 = $117
On April 18th, we had 15 items at $14 cost per piece which gives a total of 14 * 15 = $210
On April 29, 14 units were sold. We need to find the cost to which this was closest using the weighted cost approach.
The total costs for April 1 and 18 would be $117+ $210 = $327
The weighted average cost per unit on both dates is $327/24 = $13.625
The cost of 14 units sold would be = 14 * $13.625 = $190.75
Answer:
Sumner's has a loss of $-7750 from the sale of the equipment
Explanation:
Solution
Given that:
We compute the amount of profit and loss, few steps will be taken which is given below:
Step 1: we compute the book value of the equipment which is shown below:
Book value = purchase price - depreciation claimed
= $79,100 -$39,550
= $39550
Therefore then book value is $39,550
Step 2: we calculate the amount of Sumner's gain or loss which is shown below:
The gain (loss) is = the value (sale) - book value
= $31,800 - 39550
= -7750
Therefore the loss from the sale of the equipment is -$7750
Which implies that Sumner's has a loss of $-7750
Answer:
Direct materials and direct labor.
Explanation:
A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.
The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.
Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.
