Answer:
COGS for 2018 : 119,300
Explanation:
We use the inventory identity to solve for Cost of Goods Sold:
The right side are the input of inventory: it can be from previous prior and purchase from the period. And the left side are the destination, it can be on stock or sold.
We plug our values into the formula and solve for COGS
100,000 + 27,000 = 7,700 + COGS
COGS = 100,000 + 27,000 - 7,700 = 119,300
Answer:
Instrctions are listed below.
Explanation:
Giving the following information:
Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70
60 units of the item were sold.
A) FIFO
Inventory= 15*70 + 5*65= $1,375
B) LIFO
Inventory= 10*55 + 10*60= $1,150
C) Weighted average:
Average cost= (55 + 60 + 65 + 70)/4= 62.5
Inventory= 62.5*20= $1,250
Answer:
C. subject to review by higher levels of management in order to prevent the budgets from becoming too loose.
Explanation:
Self-imposed budgets typically are subject to review by higher levels of management in order to prevent the budgets from becoming too loose.
Self-imposed budget also known as the participative budget is a type of budget where individuals having responsibility for controlling costs, prepares their own budget estimates and present them to the top level of management for review.
Answer: Debit to supplies $300; Debit to Accounts Receivable $200; Credit to cash or accounts payable $500
Explanation: Supplies are inventories of an organisation. Tgey are components of current assets and have a debit balance.
When supplies are purchased, current assets are to be debited to increase the asset.
Depending on the means of purchase either cash or on credit. The credit entry will be passed according. If cash was paid for the supplies, cash is a current asset hence it is credited with the actual amount paid for the supplies inorder to reduce it.
However, if the supplies were bought on credit, accounts payables will be credited. Accounts payables is a liability account that has a credit balance. As such, to increase your liability, you credit it.
Answer:
a. Sansa: 5 daggers per week
Arya: 10 daggers per week
b. Sansa's opportunity cost of making a dagger: 2 shields
Arya's opportunity cost of making a dagger: 3 shields
c. Sansa
d. Arya
Explanation:
a. The maximum number of products made in a week is determined by dividing their weekly time capacity with the time demanded for each piece. So, to determine Sansa's maximum number, just divide 30 hrs / 6 hrs = 5. The same applies for Arya and shields too.
b. The opportunity cost is determined as the missed benefit when Sansa/Arya opts for one product. So, when Sansa chooses to dedicate 6 hours of her working time to make a dagger, she misses the benefits of having 2 shields, as she was able to make 2 shields for the same time frame (6 hours). The same applies for Arya.
c. Comparative advantage is determined by comparing the opportunity costs associated with each product and competitor. Since Sansa's opportunity cost in making daggers is lower than Arya's (2 shields compared to 3 shields), Sansa has a comparative advantage over Arya in making daggers.
d. Absolute advantage is determined as the ability of an individual to produce the same (or greater) number of output than the competitor, given the same time frame. It is evident that Arya has an absolute advantage over Sansa, as she can create more shields and daggers than her in the same time frame (30 hrs).
