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3 years ago

14

Modern companies tend to deal with many different suppliers in order to avoid problems that can arise when one supplier is unabl

e to provide needed parts or materials.
a. True
b. False

1 answer:

Romashka-Z-Leto [24]3 years ago

6 0

The answer to the question is false.

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A company has beginning inventory of 40 units at a cost of $12.50 each on October 1. On October 5, it purchases 26 units at $13.

olga nikolaevna [1]

Answer:

Ending inventory as at Oct 15 : $348

Explanation:

The FIFO (First-In-First-Out) method of inventory valuation is whereby the stock that enters first into inventory is the one that is sold or used first. In other words, the oldest stock is used first. This is common for inventory consisting of perishables such as vegetables, which will be wasted if not used soon.

Oct 1 : Beginning inventory : 40 units x $12.50 = $500

Oct 5 : Purchases : 26 units x $13.50 = $351

Oct 12 : 36 units x $14.50 = $522

Oct 15 : Sales : 78 units. This consists of:

40 units x $12.50 = $500

26 units x $13.50 = $351

12 units x $14.50 = $174

Hence, Cost of Goods sold is : $500 + $351 + $174 = $1025

Ending inventory is (36-12) x $14.50 = $348

3 0

4 years ago

A company reports merchandise inventory on December 31 at $250,000 but LCM applied to items is $200,000.Record the journal entry

ahrayia [7]

<u>Solution:</u>

In order to record the merchandise inventory on LCM with the correct amount, the following Journal entry will be passed in the books of account:

Date account and explanation debit credit

Dec 31 The cost of goods sold (250000-200000) 50000

Merchandise inventory 50000

(To record inventory on LCM)

Therefore, the cost of goods sold will be debited with an amount of $50000 and the Merchandise inventory will be credited with the same amount of $50000.

4 0

3 years ago

Which of the following terms refers to using wooden structures or mechanical or hydraulic systems to support the sides of an exc

MakcuM [25]

The answer is shoring

5 0

3 years ago

Read 2 more answers

If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will:

Scilla [17]

Increase quantity demanded by 5 percent

5 0

4 years ago

Kate Company purchased a tractor at a cost of $120,000. The tractor has an estimated salvage value of $20,000 and an estimated l

Irina18 [472]

Options :

A) Straight-line

B) Units-of-production

C) Double-declining-balance

D) All methods produce the same expense in 2017

Answer:

C.) Double declining balance

Explanation:

Given the following:

Cost of tractor = $120,000

Salvage value = $20,000

Estimated life = 8 years or 12000 hours of operation

Purchase date = January 1, 2016

2016 usage = 2400 hours

2017 usage = 2100 hours

Depreciation Expense :

Using the straight line Depreciation :

(120,000 - 20,000) / 8 = 100,000 / 8 = $12,500

Double declining balance :

(100%)/8 = (0.125) * 2 = 0.25

0.25 * 120,000 = 30,000

Unit of production:

(120,000 - 20,000) * (2100 / 12,000)

= 100,000 * 0.175 = $17500

5 0

4 years ago