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SSSSS [86.1K]
3 years ago
9

The following lots of Commodity D were available for sale during the year. Use this information to answer the questions that fol

low.
Beginning inventory 10 units at $60
First purchase 25 units at $65
Second purchase 30 units at $68
Third purchase 15 units at $75

There are 25 units of the commodity on hand at the end of the year.
What is the amount of the inventory at the end of the year using the FIFO method?

a) $3,585 b) $1,805 c) $1,575 d) $1,685
Business
1 answer:
marta [7]3 years ago
7 0

Answer:

b) $1,805

Explanation:

Using the FIFO method, the first units bought will be the first sold. Therefore, since there are 25 units on hand at the end of the year, 15 of those units will be from the last purchase at $75 each, and the remaining 10 units will be from the second purchase at $68 each. The amount of the inventory at the end of the year is:

I = 15*\$75+10*\$68\\I=\$1,805

The answer is alternative b) $1,805.

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True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. True False Because it takes many
jeyben [28]

Answer:

1. False

2. Shortage; Larger

Explanation:

1. A binding price ceiling is one that prevents the market from reaching its equilibrium. In this market, the equilibrium price is $25 therefore anything below $25 will be binding. A price ceiling below $25 per box is a binding ceiling.

2<em>. Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a </em><em><u>shortage</u></em><em> that is </em><em><u>larger</u></em><em> in the long run than in the short run.</em>

In the long run, supply is more sensitive because farmers can decide to plant oranges on their land, to plant something else, or to sell their land altogether.

This means that a price ceiling in the long run will be less attractive to farmers so they might leave the market. If they do this then the shortage will be more as there are now less supplies in the market.

7 0
3 years ago
Jon needed to purchase new tires for his SUV. He consulted Consumer Reports to see how the various brands were rated. Jon consul
ololo11 [35]

Answer:

Independent sources of information

Explanation:

Magazines, consumer groups, and government agencies all represent independent sources of information.

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3 years ago
Correct way to put on body harness?
AfilCa [17]
There are video tutorials online. It might be a lot easier to understand it if you see it, rather than read it. Hope this helps! :)

7 0
3 years ago
Read 2 more answers
An asset was purchased for $ 26 comma 000 on January​ 1, 2019. The​ asset's estimated useful life was five​ years, and its resid
Zielflug [23.3K]

Answer:

Loss on disposal $1,800

Explanation:

Cost of Asset            26,000

Useful life               5years

Sale proceeds       19,000

Depreciation for the year=$26,000/5=$5,200

Written Down value(WDV)=$26,000-$5,200=$20,800

Loss on Disposal= Sale proceeds-   WDV=$19,000-$20,800=$1,800  

It is assumed that depreciation is fully charged for the year on asset.                            

5 0
3 years ago
On July 1, an investor holds 50,000 shares of a certain stock. The market price is $30 per share. The investor is interested in
Yakvenalex [24]

Answer:

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

Explanation:

Provided information;

Amount of shares of a certain stock =50,000

The market value per share = $30

Portfolio value= P = 50,000 × 30 = $1,500,000

Beta of stock  β  = 1.3

current Index futures price = 1,500

Multiplier = $50

Futures Value A = 1,500 × 50 = $75,000

The formula used in calculating the number of contracts =

Number of contracts N =  (β  ×  P) ÷ Future values

N = (1.3 × $1500000) ÷ $75000

N = $1950000 ÷ $75000

Number of contracts N = 26

The strategy the investor should follow is to short 26 contracts of September Mini S&P 500 futures.

5 0
3 years ago
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