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ale4655 [162]
2 years ago
11

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following ord

er: (1) 300 units at $5 on January 1, (2) 500 units at $9 on January 8, and (3) 910 units at $10 on January 29. Assume 1,110 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 600 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Business
1 answer:
Dahasolnce [82]2 years ago
6 0

Answer:

Find the detailed answer below

Explanation:

January 1     300 units at $5      $1,500

January 8     500 units at $9       $4,500

January 29 910 units at $10       $9,100

1,110 units are available at the end of the month. That means 600 units were sold

A. Under FIFO

1. Cost of goods available for sale:

        $1,500 + $4,500 + $9,100 = $15,100

2.   Cost of goods sold

         300 units at $5      $1,500

         300 units at $9      $2,700

          Total             $4,200

3. Ending inventory

           200 units at $9       $1,800

           910 units at $10      $9,100

           Total              $10,900

B. Under LIFO(Last in First Out)

1.  Cost of goods available for sale:

        $1,500 + $4,500 + $9,100 = $15,100

2.  Cost of goods sold

        600 units at $10      $6,000

        Total       $6,000

3. Ending inventory

       310 units at $10      $3,100

      500 units at $9        $4,500

      300 units at $5        $1,500

      Total        $9,100

C. Weighted average cost flow assumption: Cost of goods available for sale / total units

1. Cost of goods available for sale:

     $1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

      $15,100 / 1,710 = $8.83

      $8.83 x 600 = $5,298

3. Ending inventory

       $8.83 x 1,110 = $9,801.3

Under perpetual Inventory System

Between January 9 and January 28. The prevailing price that will be used to sell the inventory will be the price at January 8($9)

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2.  Cost of goods sold

        600 units at $9     $5,400

        Total           $5,400

3. Ending inventory

       1,110 units at $9      $9,990

      Total            $9,990

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A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2900. After instal
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Answer:

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Explanation:

given data

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solution

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put her value we get fixed cash saving per year that is

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8 0
3 years ago
Internal control does not consist of policies and procedures that
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Answer:

d.guarantee the company will earn a profit

Explanation:

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Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc

Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations,  business information is accurate ( no misrepresentation of records due to error) etc.

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The right option is d.

4 0
3 years ago
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irinina [24]

Answer:

a.how a company treats employees

b. how a company treats consumers

c. whether a company obeys the law

e. whether a company respects the community

f. whether a company respects the environment

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Hence, the way in which a company treats its employees and customers, its compliance with the laws of the land, and the way it acknowledges its responsibility to the community and environment are some of the factors that determine business ethics.

6 0
2 years ago
Read 2 more answers
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IRISSAK [1]

Answer:

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Explanation:

Accelerated depreciation is a form of accounting and taxation used in the first years of an asset to allow greater deductions. On the other hand, the deductions are distributed evenly throughout the life of the asset using the Straight-line Depreciation method. Accelerated depreciation facilitates higher expenses to be incurred during the first years of an asset while in use, and lower expenses years later, as long as the asset depreciates.

In that sense, when it comes to the total projected cash flow of a company on a project, neither the accelerated depreciation or the straight-line method would affect it but both of them have impact on the timing of the cash flows since accelerated depreciation demands higher expenses since the beginning of the possession of the assets while the straight-line method keeps the expenses steady. Both, also affect the net present value (NPV) of the company since with the accelerated depreciation the cash flow will be less and with the straight-line method it should be constant.

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3 years ago
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