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velikii [3]
3 years ago
14

The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of

inventory at the end of the year according to the FIFO method?
a. $655
b. $620
c. $690
d. $659
Business
1 answer:
iren [92.7K]3 years ago
4 0

Answer:

c. $690

Explanation:

In FIFO method, A company can sell those products which it has purchased earlier.

Beginning Inventory  = 10 units x $30   = $ 300

First Purchase            = 25 units x $32  = $ 800

Second purchase      = 30 units x $34   =$1,020

Third purchase          = 10 units  x $35   =$  350

Total costs (75 units) = $2,470

As the firm uses FIFO inventory method, it has 20 inventory in hands,

Therefore, 10 units from the last purchase (third) and 10 units from second purchase will be remained unsold.

Hence, Ending inventory cost =

Second purchase 10 units x $34 = $340

Third purchase     10 units x $35 = $350

Total ending inventory cost       = $690

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The equivalent units for the month for the first department for material is 48,000 and for labor and overhead 46000.

What is the weighted average ?

  • One of three methods for valuing the stock in your company's inventory is the weighted average cost method, which establishes the average cost of all the products in your inventory based on their individual costs and the quantity of each item that is kept on hand.
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Total units transferred = 42000

and, units of ending WIP = 6000(material),  4000(Labor),  4000(overhead)

So,

Equivalent units of production = 48000(material), 46000(Labor),  46000(overhead)

The equivalent units for the month for the first department for material is 48,000 and for labor and overhead 46000.

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1 year ago
Heidi, a vsc-certified volunteer, is working at the intake station. as part of her duties, she is required to explain to the tax
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3 years ago
Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three
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Answer:

Sam change:   -5.13%

Dave change -18.01%

Explanation:

If interest rate increase by 2%

then the YTM of the bond will be 9.3%

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Coupon payment: 1,000 x 7.3% / 2 payment per year: 36.50

time 6 (3 years x 2 payment per year)

YTM seiannual: 0.0465 (9.3% annual /2 = 4.65% semiannual)

36.5 \times \frac{1-(1+0.0465)^{-6} }{0.0465} = PV\\

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<u><em>For the maturity we calculate usign the lump sum formula:</em></u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

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C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

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Answer:

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