Answer:
Ending inventory as at 31 December = $1500
Explanation:
First-In-First-Out is a method of inventory valuation whereby the stock that comes in first, is used first. This is common for inventory consisting of perishables, such as vegetables where if not used/sold soon, it would be wasted.
Jan 31: Purchases = $20 x 100 units = $2000
<em><u>Remaining inventory:</u></em>
$20 x 100 units = $2000
Feb 28: Purchases = $30 x 100 units = $3000
<em><u>Remaining inventory:</u></em>
$20 x 100 units = $2000
$30 x 100 units = $3000
<em><u>Sales = 150 units x $45:</u></em>
$20 x 100 units = $2000
$30 x 50 units = $1500
<em><u>Remaining inventory</u></em>
200 - 150 = 50 units x $30 = $1500
<em>Thus,</em>
Cost of Goods Sold = $3500 ($2000 + $1500)
Ending inventory as at 31 December = $1500
Answer:
decreased by 20%
Explanation:
Supposed we have input price of $30,000 and it produced an output of 300 units on the first year of operation. The cost per unit on the first year is $100 each ($30,000/300).
On the second year we still have the same input expense of $30,000 but the productivity output increased by 25%. So we have 375 units produced on the second year’s operation. The new cost per unit would be $30,000/375=$80 per unit.
Therefore we conclude that based on the example given, the new unit cost per product decreases by 20%.
$100-80 = $20
$20/$100 = 20%
Answer: When Wood Co. sells the land to a third party.
Explanation: As stated in the question, Wood Co. who purchased the land is a subsidiary of the seller, Power Corp., the parent company. In a consolidated financial statement whereby financial reports of all entities, subsidiaries and all financial attachment of a corporate establishment is accounted for.
Power Corp. owns the entirety of Woods Co. and therefore during a consolidated financial statement reporting, the profit made by Power Corp. from the sale of the land must be recorded when the land is purchased from Woods Co. by a third party.
Answer:
Record all transactions in a check register.
Explanation:
It's easier to track how money is spent if there is a paper trail.
<em>The answer is </em><em>FALSE.</em><em>
</em>
<em>Relationship marketing is much important compared to maintaining databases of customer's information for mass marketing. A good relationship to clients can be a good promotion tool and technique compared to sending them promotional ads via email, SMS and social media sites. A word of a mouth is more powerful and personal compared to digital media. If the reputation of the company is good to some clients, then it will create good impression to other potential clients and to the people they know. If the company has a good impression, good attitude employees with good products, it will surely help to the company's revenue.</em>