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Marizza181 [45]
2 years ago
6

Gibson company began august with 200 units of product br having a unit cost of $8 in inventory. relevant information is listed a

s follows: if gibson company uses the average cost method inventory cost flow assumption, what amount will it report as gross profit for august?
Business
1 answer:
In-s [12.5K]2 years ago
7 0

ANSWER: To calculate the gross profit for the month of August, Gibson will have to find out the sales in his company. Gibson had a opening stock of 200 units of products valuing $8 per unit. The total value of the stock available at the opening of the month is $8 x 200 units = $1,600. If he uses the average cost method to calculate the inventory cost, he will need the opening stock and the production done in the month of August. This will give him the figure which will show his entire stock which were available for sale in the month.

Let's assume the entire stock produced in the month of August to be 'x', so the total stock available for sale was '$1,600+x'. This amount needs to be subtracted by the closing stock of the month to get the actual value of sales that has happened during the month of August. So, dividing the actual value of sales by the production cost of the sold number of units will give Gibson the gross profit for the month of August.

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3 years ago
I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is
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a) must accept market price for its physical capital inputs.

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If the nominal interest rate is 4.7% and the inflation rate is 3.4%, what is the real interest rate?
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1.3%

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