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iris [78.8K]
3 years ago
10

​Kentucky, Inc. purchases and sells widgets. The following information summarizes the​company's operating activities for the​yea

r:
Selling and Administrative Expenses

$5,400

Purchases

156,000

Sales Revenue

783,000

Merchandise​ Inventory, January 1

2,500

Merchandise​ Inventory, December 31

38,200

If the company sold 7,100 units of widgets during the​ year, how much is the cost for one​ widget? (Round your answer to the nearest​ cent.)
Business
1 answer:
igomit [66]3 years ago
5 0

Answer:

$16.9 per widget

Explanation:

Given that,

Beginning inventory = $2,500

Purchases  = $156,000

Ending inventory = $38,200

Sales Revenue = $783,000

Selling and Administrative Expenses = $5,400

Total cost of the 7,100 widgets:

= Beginning inventory + Purchases - Ending inventory

= $2,500 + $156,000 - $38,200

= $120,300

Therefore,

Cost of one widget = Total cost of the 7,100 widgets ÷ Number of widgets

                                = $120,300 ÷ 7,100

                                = $16.9 per widget

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sasho [114]
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Velocity is basically the rate of points you can receive in each course of working.

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3 0
3 years ago
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On january? 1, 2017, dodge company purchases? $90,000, 7% bonds at a price of 86.4 and a maturity date of january? 1, 2027. dodg
andreev551 [17]

We should note that the bond investment account is recorded at cost by the Bondholder or Investor.

The cost or price is calculated as:

Cost = $90,000 * 86.4%

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Therefore, the entry to record should be:

<span>debit Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760</span>

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3 years ago
An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stre
Ilia_Sergeevich [38]

Answer:

B. Reduce the Money Market Fund allocation by 30% (to 10%) and put the released funds in AAA-rated corporate bonds

Explanation:

First of all, since the investor is risk averse and cannot afford to lose money on any risky investment, she should change the mix of her investment portfolio but without increasing risks. Corporate bonds that are AAA-rated carry a very low risk and pay a little higher than money market funds. So a small decrease in money market fund assets and an increase in AAA-rated bonds should yield a slightly higher return.

Investing in equities would be too risky and US Treasuries pay even less interests than money market funds.

6 0
3 years ago
Raul, a salesperson for the lovely landscapes landscaping company, is working with a longtime customer who is interested in eith
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The answer is contingency design. It is the sum incorporated into a development spending plan to take care of extra expenses for conceivable outline changes. The measure of possibility fluctuates with the phases of outline. As the plan is finished, the possibility ought to be diminished to almost zero for most school ventures.
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2 years ago
An auto insurance company is implementing a new bonus system. In each month, if a policyholder does not have an accident, they w
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Answer:

50,400

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Using application of total expectation, E;

N= Number of policy holders who have zero accidents in one month

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P|High=0.8

Therefore E = (N|Low*P|Low)+(N|High*P|High)

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7 0
3 years ago
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