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Lilit [14]
3 years ago
14

The units of an item available for sale during the year were as follows: Jan. 1 Inventory 30 units at $110 Mar. 10 Purchase 60 u

nits at $120 Aug. 30 Purchase 10 units at $124 Dec. 12 Purchase 100 units at $128 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Inventory and Cost of Goods Sold :
Inventory Method Ending Inventory Cost of Goods Sold
First-in, first-out (FIFO) $ $
Last-in, first-out (LIFO)
Weighted average cost
Business
1 answer:
vova2212 [387]3 years ago
7 0

Answer:

Concept/Method       W-A          FIFO        LIFO

Ending Inventory   $  14,280     10,240       9,300

COGS                     $  21,420     25,460    26,400

Explanation:

First, we calcualte the goods available for sale through the year:

Jan. 1    Inventory 30 units at $110   =   3,300

Mar. 10  Purchase 60 units at $120 =    7,200

Aug. 30  Purchase 10 units at $124 =  12,400

Dec. 12 Purchase<u> 100 units</u> at $128 =  <u>12,800</u>

Goods Available:  200 units  Cost:       35,700

<u>Weighted average:</u>

we divide the cost of goods available over the units :

35,700 / 200 = 178.5

Then we multiply for COGS and EI

120 units x  $ 178.5 = $  21,420 COGS

 80 units x $ 178.5 = $   14,280 Ending Inventory

<u>FIFO</u>

The first untis(oldest) are COGS and the last are inventory.

we determinate the ending inventory from the last row:

Dec. 12 Purchase<u> 100 units</u> at $128 =  <u>12,800</u>

On ending inventory there is 80 units so:

80 units x 128 = 10,240

Then COGS will be the diffrence between cost of good available and ending inventory:

35,700 - 10,240 = 25,460

<u>LIFO</u>

the last units (newest) are COGS and the first are inventory

we determinate the ending inventory from the first row:

Jan. 1    Inventory <u>30 units </u>at $110   =   3,300

Ending invenotory 80 units - 30 units = 50 more units

we "grab" one more row:

Mar. 10  Purchase 60 units at $120 =    7,200

from we he need 50 units at 120

so ending inventory is:

30 units at $  110   =  3,300

50 units at $ 120    = 6,000

        Total                   9,300

Then, COGS is calculated by dfference like FIFO:

35,700 availalbe goods - 9,300 ending inventory = 26,400

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antiseptic1488 [7]
Everything but the twizlers I don’t like them lol sorry -
5 0
2 years ago
A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transporte
defon

Answer:

N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban\\

Rounded to next  whole number:

N=3 kanban card sets

Explanation:

Given:

Number of gauges per hour=D=5 gauges per hour

Gauge cluster housing Transported=C=6

Hours for housing replenishment = T=2 hours

Safety Stock Percentage=P=40%

Find:

Number of kanban card sets needed=N=?

Solution:

Formula According to above mentioned Alphabets

N=\frac{D*T(1+P)}{C}

N=\frac{5*2(1+0.4)}{6}\\N=2.333\ kanban\\

Rounded to next  whole number:

N=3 kanban card sets

7 0
3 years ago
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be
il63 [147K]

Solution:

Annual coupon payment of the bond is $80

At the beginning of the year, remaining maturity period is 2 years.

Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.

New price of the bond = present value of the final coupon payment + present value of the maturity amount.

New price of the bond = $\frac{80}{1+r} +\frac{1000}{1+r}$

where, r is the yield to maturity at the end of the year.

Substitute 0.06 for r in the above equation,

Therefore new price of the bond is  = $\frac{80}{1+0.06} +\frac{1000}{1+0.06}$

                                                           = $\frac{1080}{1.06}$

                                                           = $ 1010.87

Calculating the rate of return of the bond as

$\text{rate of return}=\frac{\text{coupon+new price-old price}}{\text{initial price}}$

                     $=\frac{80+1018.87-1000}{1000}$

                     = 0.09887

Therefore, the rate of return on the bond is 9.887%

                                                                    ≈ 10 %

4 0
3 years ago
Moral hazard is a situation when a. contract terms attract parties that have a higher preference for risk b. contract terms ince
monitta

Answer:

contract terms incentivize one party to take on more risk because they don't carry the full cost of the risk

Explanation:

A moral hazard can be understood as the concept that a participant that is sheltered from danger in some manner will behave significantly than if they were not.

Every day, we see moral hazard in the form of established academics who remain apathetic presenters, individuals who have burglary insurance who are less attentive about where they parked, compensated workers who take long vacations, and etc.

Thus, from the above we can conclude that the correct option is C.

5 0
3 years ago
The financial statements of the imagine company report net sales of $1,000,000 and accounts receivable of $700,000 and $300,000
Viefleur [7K]
The answer is 2 times.
 
Accounts recievable turnover ratio = net sales / average accounts recievable

=1,000,000 ÷ (700,000+300,000 ÷ 2)
8 0
2 years ago
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