Answer:
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Conversion
Equivalent Units Equivalent Units
Inventory in process,
beginning 1,200 0 900
Started and completed 14,800 14,800 14,800
Transferred to Packing
Department 16,000 14,800 15,700
Inventory in process,
ending 2,000 2,000 800
Total 18,000 16,800 16,500
Explanation:
Conversion Equivalent Units
Inventory in process, beginning = 1,200 × 0.75 = 900
Inventory in process, ending = 2,000 × 0.40 = 800
Answer:
Cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold.
Explanation:
Cost of goods available for sale can be described as the <u>maximum amount</u> of inventory, stock, or goods that is possible for a firm to sell during an accounting period. It is the maximum amount because it is not possible for a firm to sell more than the cost of goods available for sale.
The cost of goods available for sale is obtained by adding beginning inventory and net purchases during an accounting period. This can be stated as follows:
COGAFS = BI + NP ............................... (1)
Where;
COGAFS = Cost of goods available for sale
BI = Beginning inventory
NP = Net purchases
At the end of an accounting period, ending inventory is deducted from the cost of goods available for sale to obtain cost of goods sold as follows:
COGS = COGAFS - EI ............................ (2)
Where;
COGS = Cost of goods sold
COGAFS = Cost of goods available for sale
EI = Ending inventory
Rearranging equation (2) and solve for COGAFS, we have:
COGFAS = COGS + EI ........................... (3)
Equation (3) therefore implies that the correct option is "cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold".
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Answer:
Current ratio = 4.04
Explanation:
Current ratio measures the ability of a business to settle its short term obligations using its liquid financial resources (current assets)
<em>A current ratio in excess of 2 is considered as adequate (except for some special occasions) and vice versa</em>.
Current ratio is computed as follows:
Current ratio = current assets/current liabilities
Applying this we have
$
Cash 102
Receivable 94
Inventory 182
Other current assets <u> 18</u>
<em>Total current assets 396
</em>
<em><u>To</u></em><em>tal current liability 98</em>
Current ratio= Total current assets / T<u>o</u>tal current liability
Current ratio = 396/98= 4.04:1
Current ratio = 4.04
Answer:
The correct word for the blank space is: negative.
Explanation:
An Externality is a cost or benefit incurred or obtained by a third party that does not influence the factors which generated the cost or benefit. In the same context, negative externalities are those that affect individuals who are not involved in the production process that causes the negative externality. <em>Pollution, noise, traffic, construction works</em> are considered some examples.
