Answer:
Cost of goods sold is $196
Explanation:
Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.
The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each
costs of goods sold=($11*16)+($10*2)
=$176+$20=$196
The costs of goods sold would be $196 if FIFO method of inventory valuation is used
Answer:
Please find the complete solution in the attached file.
Explanation:
Answer:
Common stock and $100
Explanation:
The journal entry is shown below:
Cash Dr $500 (100 shares × $5)
To Common stock $100 (100 shares × $1)
To Additional paid in capital in excess of par value - common stock (100 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity
Answer: a
Explanation:
Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.
Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
Opportunity cost analysis also plays a crucial role in determining a business's capital structure. While both debt and equity require expense to compensate lenders and shareholders for the risk of investment, each also carries an opportunity cost. Funds used to make payments on loans, for example, are not being invested in stocks or bonds, which offer the potential for investment income. The company must decide if the expansion made by the leveraging power of debt will generate greater profits than it could make through investments.
Answer:
Opportunity cost of holding the money = $1.650
Explanation:
Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.
The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.
Interest on savings deposit = interest rate × deposit
= 2.5%× 66,000= $1,650
Opportunity cost of holding the money = $1.650
