All categories

3 years ago

Freehan Company’s accounting records has the following information about its inventory:

Business

1 answer:

stealth61 [152]3 years ago

8 0

Answer:

The answer is: $93,150

Explanation:

We can use the following formula to calculate the ending inventory under the average cost method:

ending inventory = average cost per unit x number of units in inventory

First we must determine the average cost per unit:

= [(8,000 x $8) + (17,000 x $10) + (15,000 x $12)] / (8,000 + 17,000 + 15,000)

= ($64,000 + $170,000 + $180,000) / 40,000 units = $414,000 / 40,000

= $10.35 per unit

Then we calculate the value of the ending inventory:

ending inventory = $10.35 per unit x 9,000 units = $93,150

You might be interested in

Firm X purchased a piece of equipment exactly 6 years ago. The piece of equipment had a purchase price of $ 5,726,489 , a salvag

In-s [12.5K]

Answer:

Book value= 4357882

Explanation:

Giving the following information:

Purchase price= $5,726,489

Useful life= 24 years

Salvage value= $252,069

To calculate the book value, we need to determine the accumulated depreciation. We will use the straight-line method to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (5,726,489 - 252,069)/24

Annual depreciation= $228,101.25

Now, the accumulated depreciation:

Accumulated depreciation= 228,101.25*6= $1,368,607.5

Finally, the book value:

Book value= purchase price - accumulated depreciation

Book value= 5,726,489 - 1,368,607.5

Book value= $4,357,881.5

7 0

3 years ago

Product focused processes: a) are desirable because resource needs increase slowly with the complexity of a process. b) are proc

LenKa [72]

Answer:

b) are processes that are specialized for relatively few products or customer groups.

Explanation:

As the name suggests these are focused specifically for some products and not for all of the products manufactured by a company. These processes promote the product specification details, by advancing the processes of manufacturing more specific.

These are majorly used for customer specified products, generally identical products. In which no two products are similar in nature. And accordingly, these help in maximum customer satisfaction.

3 0

3 years ago

The traditional income statement for Pace Company shows sales $900,000, cost of goods sold $600,000, and operating expenses $200

Olin [163]

Answer:

net income = $100000

Explanation:

given data

sales = $900,000

cost of goods = $600,000

operating expenses = $200,000

variable = 70%

fixed = 30%

solution

CVP income statement

sales = $900,000

total variable cost = sales - ( cost of good sold ) - (operating expenses )

total variable cost = $900,000 - ( $600,000 × 70% ) - ($200,000 × 70% )

total variable cost = $560000

and

contribution is $340000

fixed cost = ( cost of good sold ) - (operating expenses )

fixed cost = ( $600,000 × 30% ) - ($200,000 × 30% )

fixed cost = $240000

so net income is = contribution - fixed cost

net income is = $340000 - $240000

net income = $100000

3 0

3 years ago

The cost reconciliation report has two sections: ""Costs to be accounted for"" followed by ""Costs accounted for"". The ""Costs

lord [1]

Answer:

The correct answer is False.

Explanation:

At the end of the accounting period, monthly, annual or of any kind, a series of tasks of control and audit of costs are carried out in order to generate correct and compensated reports of the value of the inventories and send it to the finance department. Apart from the accounting tasks that transfer the value movements of individual products to exclusive accounting accounts, multiple reporting and monitoring functions and a special reconciliation tool are available for the auditors and cost control engineers responsible for this work. critical importance for the company.

7 0

4 years ago

The Waking Dead Co provides services for both cash and on account The accounts are adjusted monthly, For September, the folowing

ivanzaharov [21]

Answer:

$25,000

Explanation:

Given that,

Accounts receivable:

Beginning balance 1 September = $22,400

Services on account = $45,000

Cash collected = $34,400

Written off accounts = $2,000

Allowance For Doubtful accounts:

Beginning balance 1 September = $4,400

Adjusted balance for Accounts receivables on 30 Sept ember:

= Beginning balance 1 September + Services on account - Cash collected - Written off accounts

= $22,400 + $45,000 - $34,400 - $2,000

= $31,000

Adjusted balance for Allowance For Doubtful accounts on 30 Sept ember:

= Beginning balance 1 September - Written off accounts + Bad Debt Expense

= $4,400 - $2,000 + ($45,000 × 8%)

= $4,400 - $2,000 + $3,600

= $6,000

Therefore, the September 30th net realizable value of Accounts Receivable is calculated as follows:

= Accounts receivables – Allowance for Doubtful accounts

= $31,000 - $6,000

= $25,000

3 0

3 years ago