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mezya [45]
3 years ago
5

A company's beginning inventory is $2,000 and its ending inventory is $1,000. The inventory turnover is 6 times. Cost of goods s

old for the year must equal____________.
Business
1 answer:
Alekssandra [29.7K]3 years ago
5 0

Answer:

$9,000

Explanation:

The formula to compute the inventory turnover ratio is shown below:

Inventory turnover ratio = Cost of goods sold ÷ average inventory

where,  

Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2

= ($2,000 + $1,000) ÷ 2

= $1,500

So, the cost of goods sold is

6 times = Cost of goods sold ÷ $1,500

So, the cost of goods sold is $9,000

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Mid City Products Inc. (MCP), developed standard costs for direct material and direct labor. In 2017, MCP estimated the followin
Tasya [4]

Answer:

See below

Explanation:

The below shows the calculation of variance

Budgeted direct labor (per unit) 0.60

Units 2,000

Budgeted direct total labor (hrs) 1,200

Actual hours 1,160

Standard rate $17

Direct labor efficiency variance

The direct labor efficiency variance

= (Budgeted hours - Actual hours) × Standard rate

= (1,200 - 1,160) × $18

= $720 favourable

7 0
3 years ago
2. "A company's net income appears directly on the income statement and the owner's equity statement, and it is included indirec
tamaranim1 [39]

Answer:

Yes, I do agree with the statement

Explanation:

The statement which is stating that the company net income  as well as the statement of the owner's equity both are included or shown indirectly in the company balance sheet . As balance sheet is that statement which tells the financial position or performance of the company at a specific time period.

Because the net income is the outcome of income statement and directly shown or stated in the income statement whereas owner's equity is the capital of the business which is shown in the balance sheet. Net income is already included in retained earnings which means shown indirectly in the balance sheet.

8 0
2 years ago
Suppose that the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in th
valkas [14]

Answer:

The interest rate is higher in the US.

Explanation:

The forward price is calculated using the following formula,

F= S ( 1+Rd / 1+Rf)^t

where,

  • F = Forward rate
  • S = Spot rate
  • Rd = Nominal interest rate in domestic market
  • Rf = Nominal interest rate in foreign market
  • t = time in years

We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD

The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.

We can see this by the following example,

Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)

F= 1.3 * (1.1 / 1.05)^1   => $1.362 PER 1EUR

3 0
3 years ago
Indigo Corporation began operations in 2017 and reported pretax financial income of $228,000 for the year. Indigo’s tax deprecia
emmainna [20.7K]

Answer:

Deferred Tax Liability = $11,400   Credit  

Explanation:

given data

pretax financial income = $228,000

Indigo’s tax depreciation = $38,000

tax rate = 30 %

solution

we know here that Income Tax Expense is

Income Tax Expense = $228,000 × 30%  

Income Tax Expense =  $68400    Dr

so as that

Deferred Tax Liability will be here

Deferred Tax Liability =  $38000 × 30%

Deferred Tax Liability =  $38000 × 0.30

Deferred Tax Liability = $11,400   Credit  

7 0
3 years ago
On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that
Brrunno [24]

Answer:

$0

Explanation:

The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity

So overall there is no net effect

hence, the amount should be $0

7 0
3 years ago
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