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
Lelechka [254]
3 years ago
7

A company: purchased 100 units for $20 each on January 31, purchased 100 units for $30 on February 28, and sold 150 units for $4

5 each from March 1 through December 31. If the company uses the First-in, First-out inventory costing method, what is the amount of inventory on the December 31 balance sheet
Business
1 answer:
igomit [66]3 years ago
3 0

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

You might be interested in
Suppose that the state of Massachusetts enacts a law that forbids Mexico and businesses located in that country from doing busin
ValentinkaMS [17]

Answer:

D. ​illegal; Commerce

Explanation:

Such a prohibition would be​ illegal due to the​ commerce Clause of the United States Constitution

7 0
2 years ago
Which job is categorized as professional and would most likely earn a salary?
Serggg [28]
If there are any choices please do tell.
But for me, I would go with being a teacher.

3 0
3 years ago
Read 2 more answers
State and explain the law of diminishing marginal return
Vlad [161]

In economics, diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

3 0
3 years ago
A Statement of Financial Position is a formal statement presenting the three accounting elements which are?
RSB [31]

The financial statement called the Statement of Financial Position is also known as the Balance Sheet.

The three accounting elements that are included on this statement are the Assets, Liabilities and Owner’s Equity.

4 0
3 years ago
The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corpo
Fudgin [204]

Question:

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin.... 200,000

Fixed Expense.... 500,000

net operating loss..... (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

A) 50,000 increase

B) 250,000 increase

C)250,000 decrease

D) 550,000 increase

Answer:

Option A is correct

Increase in profit = $50,000

Explanation:

To determine whether or not it will be profitable to drop a loss making division, we compare the savings in fixed cost to the lost contribution from the division.

It is noteworthy that only the fixed cost attributed to division can only be saved should the division be shut down.

The analysis is done as follows:

                                                                              $

Lost contribution                                           (200,000 )

Savings in fixed cost (1/2× 500,000)          <u> 250,000 </u>

Net savings                                                 <u>   50,000</u>

Increase in profit = $50,000

3 0
3 years ago
Other questions:
  • Dividing a fixed number of units among product categories to reflect relative preference is using a method called
    5·1 answer
  • Sheri, a socialite, received bad publicity for her recent choice of evening wear. As a result, she decided to change designers.
    11·1 answer
  • If the research is subject to Subpart D, which of the following research activities with children would qualify for an exemption
    8·2 answers
  • Which type of bank account is most likely to pay you interest on the money in the account?
    12·1 answer
  • __________is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and
    6·1 answer
  • Wallendo Corporation issued 5,000 shares of its $1 par value common stock as a stock dividend when the shares were selling for $
    8·1 answer
  • There are​ 15,958,866 adults in a region. if a polling organization randomly selects 1235 adults without​ replacement, are the s
    11·2 answers
  • What is the role of consumers and producers in a free market system
    13·1 answer
  • A company sells a plant asset that originally cost $300,000 for $100,000 on December 31, 2012. The accumulated depreciation acco
    15·1 answer
  • Oracle, a firm that sells commercial ERP and database products, provides Linux for free, selling high-margin Linux support contr
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!