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vodomira [7]
3 years ago
8

g Dave's Duds reported cost of goods sold of $2,000,000 this year. The inventory account increased by $200,000 during the year t

o an ending balance of $400,000. What was the cost of merchandise that Dave's purchased during the year?
Business
1 answer:
FrozenT [24]3 years ago
6 0

Answer:

$2,200,000

Explanation:

The movements in the inventory account is as a result of purchases, sales and writeoffs if any. These are the events that bring about a change between the opening and closing balances.

Given;

cost of goods sold = $2,000,000

Increase in inventory = $200,000 (This is same as closing balance minus opening balance)

Ending balance = $400,000

Thus, opening balance = $400,000 - $200,000

= $200,000

Let the cost of merchandise that Dave's purchased during the year be N

$200,000 + N - $2,000,000 = $400,000

N = $400,000 + $2,000,000 - $200,000

N = $2,200,000

The cost of merchandise that Dave's purchased during the year is $2,200,000

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If a specific subsidy​ (negative tax) of s is given to only one competitive​ firm, how should that firm change its output level
elena-s [515]

Answer:

The correct answer is option D.

Explanation:

The market price is P.

The marginal cost is given at MC.

The subsidy is equal to s.  

When the subsidy is provided to only a single firm, that firms marginal cost will decline. The firm can take advantage of decreased marginal cost by increasing the output level. The firm will produce the output where the price and marginal revenue is equal to marginal cost plus subsidy. At this point, the firm will be having maximum profit.

So, the firm will increase production until

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6 0
3 years ago
Following the Enron debacle, which resulted in employees losing 100% of their 401(k), Congress enacted new laws to protect inves
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8 0
3 years ago
Improperly capitalizing a repair and maintenance expense item as fixed asset will result in:____.
Fudgin [204]

Improperly capitalizing a repair and maintenance expense item as a fixed asset will result in an <u>overstatement of profit in the current year and an understatement in future years</u>.

Fixed assets seek advice from long-term tangible assets which can be used inside the operations of an enterprise. They offer long-term monetary advantages, have a useful existence of a couple of yr, and are labeled as assets, plants, and equipment on the balance sheet.

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5 0
2 years ago
Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The
VLD [36.1K]

Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>

Therefore fixed costs are Irrelevant for this decision.

<u>Incremental Costs and Revenues - accept the special order</u>

Sales ( 10,000 units × $22 each)                               $220,000

<em>Less</em> Variable Costs ( 10,000 units × $17each)         ($170,000)

Net Income                                                                  $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

8 0
3 years ago
Read 2 more answers
Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, In
mafiozo [28]

Answer:

a.The marginal (added) benefits of the proposed new robotics.

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b. The marginal (added) cost of the proposed new robotics.

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c. The net benefit of the proposed new robotics.

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d. What should Ken recommend that the company do? Why?

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e. What factors besides the costs and benefits should be considered before the final decision is made?

  • increases in efficiency and reductions in manufacturing time.

Explanation:

Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.

In this case, both alternative should be evaluated as follows:

                                alternative 1           alternative 2        marginal

                                keep robotics        change robotics  benefits

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today's $)  

required invest.                   $0             -$227,200           -$227,200

old robotics                         $0                $73,000               $73,000

<u>sales value                                                                                           </u>

marginal benefits / losses                                                  -$32,200

6 0
3 years ago
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