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soldier1979 [14.2K]
3 years ago
13

Amsterdam Company uses a periodic inventory system. For April, when the company sold 600 units, the following information is ava

ilable. Units Unit Cost Total Cost April 1 inventory 250 $10 $ 2,500 April 15 purchase 400 12 4,800 April 23 purchase 350 13 4,550 1,000 $11,850 Compute the April 30 inventory and the April cost of goods sold using the average-cost method.
Business
1 answer:
zavuch27 [327]3 years ago
7 0

Answer:

The April 30 inventory and the April cost of goods sold using the average-cost method is $7,110 and $ $4,740 respectively

Explanation:

The computation of the average cost per unit is shown below:

= (Beginning inventory units × price per unit + purchase inventory units × price per unit + purchase inventory units × price per unit ) ÷ (Beginning inventory units + purchase inventory units + purchase inventory units)

= (250 units × $10 + 400 units × $12 + 350 units × $13) ÷ (250 units + 400 units + 350 units)

= ($2,500+ $4,800 + $4,550) ÷ (1,000 units)

= ($11,850) ÷ (1,000 units)

= $11.85

Now the cost of goods sold equals to

= (Beginning inventory units × average cost per unit + purchase inventory units × average cost per unit - ending inventory units × average cost per unit)

= (250 units × $10 + 400 units × $12 + 350 units × $13) - (400 units × $11.85)

= $11,850 - $4.,740

= $7,110

And, the ending inventory units equal to

= (Ending inventory units × average cost per unit)

= (400 units × $11.85)

= $4,740

The ending inventory units = 1,000 - 600 = 400 units

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Northern purchased the entire business of Southern including all its assets and liabilities for $2,400,000 on December 31, 2021.
stich3 [128]

Answer:

$400,000

Explanation:

The computation of goodwill is shown below:-

Fair value of assets = $3,200,000

Fair value of liabilities = $1,200,000

Cash paid for southern = $2,400,000

Acquired Net assets = $2,000,000

Net assets acquired = Fair value of assets - Fair value of liabilities

= $3,200,000 - $1,200,000

= $2,000,000

Goodwill acquired = Cash paid for southern - Acquired Net assets

= $2,400,000 - $2,000,000

= $400,000

5 0
3 years ago
Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following ana
Nookie1986 [14]

Answer:

a. The 2 contracts should be combined.

b. $123,000 for Contract A

$82,000 for Contract B

c. Revenue should be recognized when control of goods has transferred to the customer.

Explanation:

Part a:

Answer: Yes. The 2 contracts should be combined.

Reasoning:

5-step revenue recognition model indicates identification of contracts with customer in the first step, identification of performance obligations of the contract in the second step, transaction price determination in the third step, allocation of transaction price to the performance obligations to the fourth step and recognition of revenue as the performance obligations in the fifth step. Therefore, two contracts should be combined.

Part b:

Calculate the amount of revenue should P associate with each of the contracts.

There are two performance obligations:

Goods from contract A ($120,000 + ($5000 x 60%)) = $123000

Goods from contract B ($80,000 + ($5000 x 40%)) = $82000

Reasoning: It is given that the stand-alone prices for Contract A is $120,000 and Contract B is $80,000. Contract price of Contract A is $125,000. Thus, the additional $5,000 should be split between the 2 contracts. Hence, the performance obligations for goods from contract A is $123,000 and goods from contract B is $82,000.

Part C:

Revenue should be recognized when control of goods has transferred to the customer.

Reasoning:

Performance obligation is satisfied when transfer the good or service to the customer. Recognize revenue when the performance obligation is satisfied is the fifth step of the 5-step revenue recognition model. Hence, revenue should be recognized when control of goods has transferred to the customer.

7 0
3 years ago
In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount. Cl
kobusy [5.1K]

Answer:

d.

$8,097

Explanation:

8 0
3 years ago
If you put $50 in a savings account that paid 10% compounded yearly, how much interest would you earn in 3 years?
stepladder [879]

Answer:

$66.55

Explanation:

10% of 50 = 5

55 in one year

10% of 55 = 5.5

60.5 in two years

10% of 60.5 = 6.05

66.55 in three years

Hope this helped

4 0
3 years ago
When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain
marysya [2.9K]

When investors give computer instructions to sell automatically to avoid potential losses if their stock price dips to a certain point, it is called program trading.

<h3>What is program trading?</h3>

Program trading is what create space or time for multiple trades to occur simultaneously.

It is an automated process that gives instructions to computers to sell when price of a stock goes down to prevent loss.

Learn more about program trading here: brainly.com/question/13955369

#SPJ1

6 0
2 years ago
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