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Korolek [52]
3 years ago
10

Glasgow Enterprises started the period with 65 units in beginning inventory that cost $3.40 each. During the period, the company

purchased inventory items as follows. Glasgow sold 335 units after purchase 3 for $3.40 each. Purchase No. of Items Cost 1 310 $ 3.90 2 145 $ 4.00 3 60 $ 4.40 Glasgow's ending inventory under weighted average would be approximately: (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
Evgesh-ka [11]3 years ago
4 0

Answer:

Value of ending inventory =  $960.4

Explanation:

To value inventory, The weighted average inventory method uses the  value of weighted average price of all the batches purchased till date. The weighted average price is re-computed whenever a new batch of stock is received.

Step 1

<em>Calculate the weighted average price</em>

For Glasgow, we can work out the weighted average price as follows:

The total value = (65 × $3.40) +( 310× $3.90) +( 145 × $4.00) + ( 60 × $4.40)

                        = $2,274

The total quantity purchased before sales

= 65 + 310 + 145 + 60

= 580 units

Weighted average price

= $2,274/ 580 units = $3.92

Step 2

<em>Calculate the closing inventory units</em>

<em>Closing inventory = opening inventory + purchases - sales</em>

= 65 + 310 + 145 + 60 - 335

= 245 units

Step 3

<em>Value the closing inventory</em>

= 245 ×  $3.92

= $960.4

Value of ending inventory =  $960.4

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If the real rental price of capital is $10,000 per unit and the real cost of capital is $9,000 per unit, to maximize profits a f
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Answer:

Add to its capital stock.

Explanation:

Rental firms earn profit by buying goods and renting them out at a price higher.The advantage of owning capital is the real rental price of capital for the units of capital owned and rented.

In this case, the real rental price of capital is $10,000 per unit where as the real cost of capital is $9,000 per unit. This means the firm is getting a profit from the business of $1000 per units assuming interest on their loans, cost of loss/ gain  on the price of capital and depreciation costs are taken care.To maximize profit at this level, the firm can increase capital stock by buying more goods and renting them out at the current real rental price of capital.

8 0
3 years ago
Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money
melisa1 [442]

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called <u>fiat</u> money.

The term is derived from the Latin word fiat, because of this a dedication through authority—in this case, it is the government that decrees the fee of the currency and is not representative of every other asset or financial device consisting of gold or a check.

Fiat cash, in a wide feel, all varieties of money which are made criminal tender via a government decree or fiat. The term is, but, commonly reserved for criminal-tender paper money or cash that have face values ways exceeding their commodity values and aren't redeemable in gold or silver.

Economists differentiate amongst 3 special forms of money: commodity money, fiat money, and bank money.

Learn more about fiat money here

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4 0
1 year ago
Because Coca-Cola, Nestlé, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant compa
garik1379 [7]

Answer:

standard-cycle market.

Explanation:

Standard-cycle market are those where a business's competitive advantage is protected from imitation by othe companies and the imitation will be moderately costly.

In this instance the three big companies Coca-Cola, Nestlé, and PepsiCo all sell bottled water. The product is basically the same.

They engage in battles for market share using incremental changes in their products and seeking loyalty to brand names.

This is a form of standard cycle market.

6 0
3 years ago
Why is 10 cents earned far more valuable than a dollar found. Critical thinking.
mixer [17]
10 cents is more valuable than finding a dollar i think because of the connection with hardworking , rather earn something than find because are luck isn’t always trusted
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2 years ago
The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J
Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0
3 years ago
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