Weighted Average Cost Flow Method Under Perpetual Inventory System
1 answer:
Answer and Explanation:
The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;
The perpetual inventory is the system which updated the inventory as on a regular basis
While on the other hand, the weighted average cost method is the method in which the average cost is calculated after each every purchase is made
In the calculation below:
1. The weighted average cost of $30.90 come from
= (Total inventory cost) ÷ (Total quantity)
= ($180,000 + $1,674,000) ÷ (60,000 units)
= $30.90
1. The weighted average cost of $31.60 come from
= (Total inventory cost) ÷ (Total quantity)
= ($463,500 + $674,100) ÷ (36,000 units)
= $31.60
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Answer:
Direct
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Explanation:
The options to this question wasn't provided. The full question can be found here: https://www.chegg.com/homework-help/relationship-quantity-supplied-price-relationship-quantity-d-chapter-3-problem-7mcq-solution-9780077416355-exc
The relationship between quantity supplied and price is direct because the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied. This results in an upward sloping supply curve.
the relationship between quantity demanded and price is inverse because the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This explains why the demand curve is downward sloping.
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