Answer and Explanation:
The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;
The perpetual inventory is the system which updated the inventory as on a regular basis
While on the other hand, the weighted average cost method is the method in which the average cost is calculated after each every purchase is made
In the calculation below:
1. The weighted average cost of $30.90 come from
= (Total inventory cost) ÷ (Total quantity)
= ($180,000 + $1,674,000) ÷ (60,000 units)
= $30.90
1. The weighted average cost of $31.60 come from
= (Total inventory cost) ÷ (Total quantity)
= ($463,500 + $674,100) ÷ (36,000 units)
= $31.60
Answer:
Real exchange rate will be 0.9040 yuan
Explanation:
We have given nominal exchange rate = 6.75 yuan per dollar
Domestic price = $3.75
And foreign price = $28
We have to fond the real exchange rate
Real exchange rate is given by
Real exchange rate
yuan
Answer:
d. One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.
Explanation:
While calculating a project's IRR, that is internal rate of return we calculate the return at which the outflow = inflow. Further it is assumed that the funds will be reinvested at the same rate.
As with change in weights because of amount invested, change in capital structure, the effective rate also changes, and the expected rate of return being IRR is generally not the same.
Accordingly, this is a correct statement that most of the times it is not true that reinvestment will earn the same rate of return as of IRR.
Answer:0.94
Explanation: It's stating to assume that the operating revenues which is 4,000,000 is more than the expenses which is 5,000,000. so we are going to PRETEND that the 4,000,000 is 5,300,000 and the expenses stay the same which is 5,000,000. So you divide 5,000,000 by 5,300,000 which gives you the ratio of 0.94