Answer:
The correct answer is "$44,013.89".
Explanation:
Given:
Investment per year,
= $5,700
Required return,
= 5%
As we know,
⇒ 
Or,
⇒ ![Annuity \ factor=\frac{1-[\frac{1}{(1+k)}]^n }{k}](https://tex.z-dn.net/?f=Annuity%20%5C%20factor%3D%5Cfrac%7B1-%5B%5Cfrac%7B1%7D%7B%281%2Bk%29%7D%5D%5En%20%7D%7Bk%7D)
then,
The present value of 10 annual payment will be:
= ![5700\times \frac{1-[\frac{1}{(1+.05)}]^{10} }{.05}](https://tex.z-dn.net/?f=5700%5Ctimes%20%5Cfrac%7B1-%5B%5Cfrac%7B1%7D%7B%281%2B.05%29%7D%5D%5E%7B10%7D%20%7D%7B.05%7D)
= 
($)
Answer:
D. $934,500.
Explanation:
FIFO Method:
170 x $870 = 147,900
270 x $970 = 261,900
370 x $1,070 = 395,900
115 x $1,120 = 128,800
Hence, Total Cost of Goods Sold for 925 Laptop Computers will be $934,500.
Answer: $370,000
Explanation:
Your question isn't complete as there were some further questions asked before getting to this question.
The profit from 2,000 units at $349 will be:
Profit = Total revenue – Total cost
Total revenue = (P x Q)
= $349 x 2000
= $698000
Total cost = [FC + (UVC x Q)]=
= [$38,000 + ($145 x 2,000)]
=$38000 + $290000
= $328000
Profit = Total revenue - Total cost
Profit = $698000 - $328000
Profit = $370000
Answer:
Entry to record adjustment:
COGS Dr $9.4m
Inventory Cr $9.4m
Explanation:
The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.
The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:
Entry:
COGS Dr $9.4m
Inventory Cr $9.4m
