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barxatty [35]
3 years ago
13

The Boxwood Company sells blankets for $38.00 each. The following was taken from the inventory records during May. The company h

ad no beginning inventory on May 1.
Date Blankets Units Cost
May 03 Purchase 29 $16.00
May 10 Sale 12
May 17 Purchase 38 $18.00
May 20 Sale 15
May 23 Sale 10
May 30 Purchase 40 $19.00
Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
Business
1 answer:
Juliette [100K]3 years ago
7 0

Answer:

Gross Profit for May           798

Explanation:

<u>under FIFO </u>

We need to use units from the beginning of the month first.

May 10th sale 12 x $16 = 192

May 20th sale 15 x $16 = 240

May 23th

2 x $16 = 32

8x 1$8 =144

Total COGS

608

Sales Revenue 37 x 38 = 1,406

Cost of Good Sold            (608)

Gross Profit for May           798

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Answer:

c. News has no effect on stock prices.

Explanation:

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Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

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