Answer:
$7.38
Explanation:
The average cost method recalculates a new cost per unit with each and every purchase made. This new costs would then be used to calculate the costs of goods sold and inventory value.
Average cost per unit = Total Costs ÷ Units available for sale
= (200 x $7 + 800 x $7 + 600 x $8) ÷ 1,600
= $7.375 or $7.38
The average cost per unit for May is $7.38
Answer:
The average number of times inventory is sold during the period.
Explanation:
Inventory turnover by definition is the relationship between inventories and the cost of goods sold by a firm. It measures on average, how many times the inventory was restocked and sold in the operating period.
A higher number usually suggests a healthier operation cycle for a business.
It is measured by,
Inventory turnover = Cost of goods sold / Average inventory
Option 1 and Option 3 are related to the performance of accounts receivables. Option 3 is the closest to above mentioned definition. Option 4 is only measuring the inventory clearance time.
Hope that helps.
Net Income before Sale of Shares........................................................$1800000
Additional Income due to sale of shares.............................................$400000
Total Net Income........................................................................................$2200000
Income [email protected]%.........................................................................................($660000)
Net Income After Tax..................................................................................1540000
Total No of Shares.........................................................................................260000
Earning Per Share(Net Income After Tax/No of Shares)......................$5.92
Answer: both internal and external inventories
Explanation: In simple words, supply chain inventories refers to the raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.
Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.
It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.
Answer: Debit to bad debt expense for $3580.
Explanation:
Based on the information given, the bad debt expense will be:
= Desired balance - Actual balance before adjustment
= $8400 - $4820
= $3580
Based on the above, the journal entry will be:
Debit Bad debt expense $3580
Credit Allowance for uncollectible $3580
