Answer:
The value of closing inventory is $3,500
Cost of goods sold $40,670
Explanation:
The two tasks here is to compute the value of closing inventory and the costs of goods sold during the year.
The fact that all opening inventory units were sold and that 230 units out of 250 units bought on May 5 leaves 20 units of that batch inventory in closing inventory.
Also, 20 units of 200 units bought on November 3 in inventory since 180 units were already sold.
Hence the value of closing inventory is computed thus:
May 5 20*$85=$1,700
Nov 3 20*$90=$1,800
Total $3,500
The costs of goods sold are is computed thus:
Opening inventory 60*$82 $4,920
May 5 230*$85 $19,550
Nov 3 180*$90 $ 16,200
Total $40,670
Answer:
If prices are cut by $0.2 then the operating income will increase by $91,200.
Explanation:
Current Gross Profit is :
Revenue [240,000 * $6] = $1,440,000
Cost of Sales = $1,416,000
Gross Profit = $24,000
If selling price is reduced to $5.80
Revenue $5.80 * [ 240,000 * 1.10 % ] = $1,531,200
Cost of Sales $1,416,000
Gross Profit = $115,200
Answer and Explanation:
The computation of the income before tax in the year 2022 would be reduced or decreased by the cash discount amount i.e. shown below:
= Sale value × discount rate × number of units sold
= $40,000 × 1% × 14 units
= $5,600
Hence, the amount is $5,600
We simply applied the above formula so that the correct value could come
And, the same is to be considered
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