Cost of inventory destroyed in fire is $1,140,000
<u>Explanation:</u>
The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.
Cost of sales = Sales – profit on sales
= 9000000-1800000
=$7200000
The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales
=1980000+5880000+480000-7200000
=$1,140,000
Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.
Answer:
door in the face sales technique
Explanation:
The door in the face (DITF) sales technique is used when the salesperson purposely makes a large request knowing that it will be rejected, and then following the sales approach by offering a much smaller request that is more reasonable and easily accepted.
For example, you want your parents to buy you a new motorcycle. Instead of asking your parents for a new motorcycle, you ask them to buy you a car. You know that they will probably reject the idea of giving you a car, but after they reject your initial proposal, you ask them to at least buy you a motorcycle. That will seem to be a much more reasonable request.
Answer:
b. $2,580,000
Explanation:
The formula and the computation of the cost of goods manufactured is shown below:
= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory
= $780,000 + $900,000 + $720,000 + $1,080,000 - $900,000
= $2,580,000
The direct material used is
= Beginning raw material inventory + purchase made - ending raw material inventory
= $300,000 + $960,000 - $480,000
= $780,000
Answer:
Debit Cost of Goods Sold and credit Merchandise Inventory for $500.
Explanation:
When there is comparism between merchandise inventory and physical count, the difference noticed is accounted to shrinkage. It could be due to damage, clerical error, or goods being lost or stolen.
This affects the profitability of the business especially when shrinkage is large. Retailers tend to increase price of goods to make up for shrinkage losses.
The entry to record shrinkage is the debit cost of goods sold and credit merchandise inventory.
Answer:
y=-107 x+1,600, where y is the value of the refrigerator in x years, and x is the number of years.
Explanation:
Straight line depreciation is a method of asset valuation where the fixed asset is assumed to undergo constant depreciation per unit time. This means that the change in value during a given period is constant, where if you plot a value of asset value on the vertical axis against time, x in years you get a linear relationship thus the name straight-line depreciation.
The depreciation of the refrigerator in our case can be expressed as;
{(I-F)/x}=k
where;
I=initial value of refrigerator
F=final value of refrigerator
x=time interval
k=constant of proportionality
{(Initial value-final value)/time interval}=K
In our case;
I=1,600
F=0
x=15 years
replacing;
{(1,600-0)/15}=k
k=1,600/15=107
Express the equation where;
Initial value=1,600
value after x years=y
k=107
time=x
replacing;
(1,600-y)/x=107
1,600-y=107 x
y=-107 x+1,600
The formula is;
y=-107 x+1,600, where y is the value of the refrigerator in x years, and x is the number of years.
