Answer: $65
Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.
So, in the given question the two units sold would be costing $80 and $95
Hence,
Gross profit = $240 - ($80 + $95)
= $65
Answer:
Explanation:
As the coffee prices are relative higher than what it actually ends up paying, person will pay above their face value to obtain. Same will apply the same idea for that concept.
As tea is also icnreases we will pushed there.
In the long term we should review how this is done as usually end up here and allone
Therefore the compete sentences will be:
An increase in the price of coffee coupled with an increase in the number of tea growers the lower adverzare will occur within a year Also, we could check for it at 12.600
Answer:
interest payable 66,000
note payable 384,000
Land 325,000
Gain on disposal 125,000
Explanation:
600,000 x 11% = 66,000 interest payable
the land is being used to settle the note along with the accrued interest at the time:
the accounting of Transit developments record the land at cost: 325,000
as the market valuye is 450,000 so a gain for 125,000 will be recognize.
450,000 market value - 66,000 interest payable: 384,000 payment on the note principal
the entry will write-off the interest payable, decrease the note by that amount and recognize the land gain on disposal
Answer:
the average cost per unit that should be used to determine the cost of the units sold on January 28 is $ 59.00
Explanation:
The Weighted Average Cost Method calculates the new cost of Inventory with each purchase of Inventory.
The Perpetual Inventory System records the cost of inventory sold with each sale made.
<u>Calculation of the new cost of Inventory with each purchase of Inventory :</u>
January 10:
Cost per Unit = Total Cost / Total Number of Units
Cost per Unit = (( 600 units × $55 per unit ) + ( 1000 units × $59 per unit )) / 1600 units
= $ 57.50
January 20:
Cost per Unit = Total Cost / Total Number of Units
Cost per Unit = (( 1600 units × $57.50 per unit ) + ( 800 units × $62 per unit )) / 2400 units
= $ 59.00
There were no further purchases from this point
Thus cost per units remains at $ 59.00
Therefore the average cost per unit that should be used to determine the cost of the units sold on January 28 is $ 59.00
Answer:
The correct answer is C. Shows the maximum attainable combinations of two goods that may be produced with available resources.
Explanation:
The Production Possibilitiy Frontier (PPF) shows the most optimal usage of a a limited amount of resources to produce two separate goods and obtain the maximum production output possible. This theory is applicable only to the production of 2 products and demonstrates the concept of cost of opportunity. Producing more of one of the products means producing less of the other, as the resources are scarce.
