Answer:
$935.61
Explanation:
Firstly, we need to calculate weighted average inventory cost at every time anchors (purchase - in or sell - out)
At time t = 1, 64 units @ 5 per unit.
At time t = 2, 64 + 110 = 174 units @ (64 x 5 + 110 x 5)/(64 + 110) = 5 per unit.
At time t = 3, 174 - 90 = 84 units @ 5 per unit.
At time t = 4, 84 + 55 = 139 units @ (84 x 5 + 55 x 6)/(84 + 55) = 5.40 per unit.
At time t = 5, 139 - 90 = 49 units @ 5.40 per unit.
Cost of goods sold for the year = 90 x 5 + 90 x 5.40 = $935.61
Answer:
John's estimated cost of owning and driving the car for three years is $17,500
Explanation:
The computation of the estimated cost for the three years is shown below:
= Purchase cost of Toyota + (annual cost of maintenance, registration, insurance, and gas × Number of years) - selling cost or scrap value
= $20,000 + ($1,500 × 3) - $10,000
= $20,000 + $7,500 - $10,000
= $27,500 - $10,000
= $17,500
The selling cost should be deducted so that accurate value can come and the annual cost is given for one year only but we have to compute for the three years so we multiply it by three years.
Answer:
4.26%
Explanation:
The computation of the Laurel's effective (after-tax) cost of debt is shown below:
= Cost of debt × (1 - tax rate)
= 7.1% × (1 - 0.40)
= 4.26%
The cost of debt is also known as the yield to maturity.
For computing it, we deduct the tax rate from the cost of debt so that the accurate rate can come
All other information which is given is not relevant. Hence, ignored it
