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vlabodo [156]
3 years ago
13

Echo Sound Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 2

00 units 1,170 June 15 200 units 1,260 June 28 150 units 990 $4,200 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. The inventory method which results in the highest gross profit for June is:
a. the FIFO method
b. the LIFO method
c. the average cost method
d. not determinable
Business
1 answer:
blsea [12.9K]3 years ago
4 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

June 1: $780/150 units= $5.2 per unit

June 10: $1,170/200 units= $5.85 per unit

June 15: $1,260/200= $6.3 per unit

June 28: $990/150= $6.6 per units

A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand.

Units sold= total units - ending inventory

Units sold= (150 + 200 + 200 + 150) - 210= 490 units

<u>The method with the lowest cost of goods sold will have the highest income:</u>

FIFO (first-in, first-out):

COGS= 150*5.2 + 200*5.85 + 140*6.3= $2,832

LIFO /last-in, first-out)

COGS= 150*6.6 + 200*6.3 + 140*5.85= $3,069

Weighted-average:

Weighted-average price= (5.2 + 5.85 + 6.3 + 6.6)/4= 5.99

COGS= 490*5.99= $2,935.1

The inventory method that will provide the highest gross profit is FIFO.

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dimulka [17.4K]

Answer: a) premium

Explanation:

5 0
3 years ago
Which of the following statements is FALSE?A)A rise in the price level lowers real wealth and results in a lower level of consum
Lerok [7]

Answer:

Explanation:

Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?

As the price level rises, government spending falls, which lowers aggregate expenditures. ... Price level increases raise real wealth which causes consumption spending and aggregate expenditures to decline. Price level increases cause firms and consumers to hold more money, which raises the interest rate.

4 0
2 years ago
What will happen to the market value of a bond if interest rates decrease?
enot [183]

Answer:

b. The market value will increase

Explanation:

In the case when the rate of the interest decrease so the market value of the bond would be increased. As the market value of the bond and the rate of interest has an inverse relationship between them. In the case when the rate of interest increased than the market value of the bond decreased and vice versa

Therefore option b is correct

8 0
2 years ago
The selling and administrative expense budget of Gullette Corporation is based on the number of units sold, which are budgeted t
Andrej [43]

Answer:

Gullette Corporation

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense =     $30,180

Total selling and administrative expense =     $47,940

Less Depreciation expense =                           ($3,450)

Cash disbursements for selling and

  administrative expenses                               $44,490

Explanation:

Data:

Budgeted units sales = 3,700

Variable selling and administrative expense = $4.80 per unit

Budgeted fixed selling and administrative expense = $30,180 per month

Depreciation in fixed expense = $3,450

Gullette Corporation

Selling and administrative expense budget for April:

April Budgeted unit sales = 3,700

Variable selling and administrative expense per unit = $4.80

Variable selling and administrative expense = $17,760

Fixed selling and administrative expense =     $30,180

Total selling and administrative expense =     $47,940

Less Depreciation expense =                           ($3,450)

Cash disbursements for selling and

  administrative expenses                               $44,490

b) Under the budgetary process, Gullette Corporation prepares its selling and administrative expense budget to include the variable and fixed elements.  The variable element of Gullette's selling and administrative expenses varies per unit with the volume of sales, while the fixed element remains relatively constant in total.  The total cash disbursements for selling and administrative expenses do not include depreciation.

6 0
3 years ago
Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter
Sav [38]

Answer:

<em>The GDP Rounded to the answer to the nearest ten = $21 trillion</em>

Explanation:

What Is GDP?

<em>Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health. </em>

<em>Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well.</em>

<em></em>

<em>Using the The Expenditure Method - Aggregate Demand (AD) the formula for GDP is: </em>

GDP = C + I + G + (Ex - Im),

where “C” equals spending by consumers,

“I” equals investment by businesses,

“G” equals government spending and

“(Ex - Im)” equals net exports, that is, the value of exports minus imports.

GDP =

C = 3.8 + 2.7 + 12.2 = $18.7 trillion

I = 2.1 + 0

GDP = 18.7 + 2.1 = <em>$20.8 trillion </em>

<em>GDP = $20.8 trillion </em>

<em />

<em>Rounding the answer to the nearest ten = $21 trillion</em>

8 0
3 years ago
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