1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Over [174]
3 years ago
11

Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit.

During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second was a 200-unit purchase at $72 per unit. During the period, it sold 270 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. Cost of Goods Sold Ending Inventory b. LIFO. Cost of Goods Sold Ending Inventory c. Weighted average.
Business
1 answer:
patriot [66]3 years ago
7 0

Answer:

a. FIFO COGS $ 17640

a. FIFO Ending Inventory $ 12960  

b. LIFO  COGS $ 19160

b. LIFO ending Inventory $ 11440

c. Weighted COGS   $ 18360

c.Weighted Ending Inventory $12240

Explanation:

Cortez Company

Particulars                    Units       unit Cost           Total Cost

Opening Inventory       100              $ 60              $ 6000

Purchases                     150               $ 68             10200

<u>Batch 2                          200              $ 72              $ 14400</u>

<u>Total                           450                                        $30600    </u>

FIFO means first units received will be sold out first and the ending inventory consists of last units.

Sales = 270 units

a. FIFO COGS $ 17640

100   units at   $ 60 =  $ 6000

150  units at   $ 68 = 10200

20  units at $ 72 = $1440

a. FIFO Ending Inventory $ 12960  

180  units at $ 72  =$ 12960  

LIFO means last units received will be sold out first and the ending inventory consists of first units.

b. LIFO  COGS $ 19160

200 units at $ 72 = $ 14400

70 units at $ 68  = 4760

b. LIFO ending Inventory $ 11440

100  units at  $ 60= $ 6000

80   units at   $ 68 = 5440

c. Weighted Average Cost = Total Cost/ No of units = $30600  /450= $ 68

c. Weighted COGS = 270 units at $ 68=  $ 18360

c. Weighted Ending Inventory= (Total Units - Sales) CP per unit

= (450- 270)* 68

= 180 *68= $12240

You might be interested in
1. A stock has an expected return of 10.2 percent, the risk-free rate is 4.1 percent, and the market risk premium is 7.2 percent
NNADVOKAT [17]

Answer:

Beta is  0.85  

Explanation:

The value of Beta can de derived from the CAPM formula of expected return

expected return=risk-free rate+Beta*market risk premium

expected return  is 10.2%

risk-free rate is 4.10%

market risk premium is 7.2%

Beta is unknown

10.20%=4.10%+Beta*7.20%

10.20%-4.10%=Beta*7.20%

6.10% ==Beta*7.20%

Beta=6.10% /7.20%

Beta= 0.85  

5 0
3 years ago
A financial advisor has heard from a relative of nr industries inc.'s ceo that the company is planning to shut down its operatio
kolezko [41]

This would be a case of insider trading, meaning that the trader (the financial advisor) has information that is not public that will affect the future performance of the company. If the advisor acts on this early information and profits, then this could be considered illegal.

3 0
3 years ago
Jerry understands that expected click-through rate is one of three main factors that determine the quality score of an ad. What
Leni [432]

Answer: Ad relevance and Ad landing page experience

Explanation:

7 0
3 years ago
Which of the following typically has the lowest fees or cost to use?
timama [110]

Answer: A. Debit card

<span>Among  Debit card, Credit card, Cash advance and Payday Loan, a debit card typically has the lowest fees or cost to use. </span>A debit card is a plastic payment card used<span> instead of cash when making purchases. Unlike in a credit </span>card<span>, the money comes directly from the user's bank account when performing a transaction. </span>

Credit cards, cash advance and a payday loan are the same in the sense that they extend a line of credit to their users. Users are then charged with an interest higher than the fee charged in using debit cards. <span>
</span><span>

</span>

4 0
4 years ago
Slapshot Company makes ice hockey sticks and sold 1,890 sticks during the month of June at a total cost of $378,000. Each stick
Grace [21]

Answer:

<u>Slapshot Company</u>

<u>Income statement for the month of June</u>

Sales ( 1,890 x $360)                                   $680,400

Less Costs of Sales                                    ($378,000)

Gross Profit                                                  $302,400

Selling Costs :

Commissions                           $68,040

Other Selling Expense            $64,700

Administrative Expense          $53,800    ($186,540)

Net Income                                                   $115,860

Explanation:

The Income statement shows the <em>Profit</em> earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.

6 0
3 years ago
Other questions:
  • Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller than the print specific
    14·1 answer
  • Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: Jan
    6·1 answer
  • Lynn walks into a local convenience store to buy chewing gum. she more than likely will employ _____ in deciding to make that pu
    13·2 answers
  • The rule of 72 is useful in calculating the
    8·1 answer
  • Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn 20XX for $85 during December 2014. These new subscribers will receive mon
    6·1 answer
  • Theo bạn, 1 sản phẩm đáng bán rất tốt có cần thiết đưa hàng hóa đó lên mạng không?
    9·2 answers
  • If a seller fails to deliver the goods, the buyer can purchase other goods to substitute for those due under the contract, but c
    7·1 answer
  • A Giffen good is a good for which : _________
    10·1 answer
  • According to _____, those who dominate the world economy penetrate the economies of low-income countries because workers depend
    6·1 answer
  • The probability that an audit team will express an inappropriate audit opinion when the financial statements are materially miss
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!