A company had the following purchases during the current year: On December 31, there were 26 units remaining in ending inventory
. These 26 units consisted of 2 from January, 4 from February, 6 from May, 4 from September and 10 from November. Using the specific identification method, what is the cost of the ending inventory
1 answer:
Answer:
$3,800
Explanation:
The computation of cost of the ending inventory is shown below:-
Unit Rate Total
January 2 $120 $240
February 4 $130 $520
May 6 $140 $840
September 4 $150 $600
November 10 $160 $1600
Total Units 26 $3,800
So, by the above computation we simply multiply every unit with rate.Therefore the cost of ending inventory is $3,800
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Answer: $700,000
Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.
Retained earnings break even can be computed as follows :-
where,
retained earnings = net income (1- payout ratio)
= $525,000 (1 - 60%)
= $210,000
therefore,
=$700,000