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pshichka [43]
3 years ago
11

A company just starting business made the following four inventory purchases in June:

Business
1 answer:
chubhunter [2.5K]3 years ago
4 0

Answer:

c. $1,290

Explanation:

FIFO assumes that the units to arrive first are the first to be sold. This means that the cost of sales is based earlier prices.

Step 1 : Units Sold

Units Sold =Units available for sale - Units in Inventory

                 = 700 - 250

                 = 450

Step 2 : Cost of Sales

Cost of Sales = $390 + $585 + 100/200 x $630

                      = $390 + $585 + $315

                      = $1,290

Using the FIFO inventory method, the amount allocated to cost of goods sold for June is $1,290

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Answer:

Explanation:

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The Post Office, Postnet and the South African Express Parcel Association (SAEPA) are now set to head to court in a move that could have ramifications for the entire courier industry in South Africa.

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3 years ago
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou
Ganezh [65]

Answer:

The current machine should be replaced as doing that brings $6000 in benefits as shown below.

Explanation:

In order to determine which of the two options between replacing the old machine and acquiring new machine is more viable it would be appropriate to carry out an incremental cost/benefits analysis of both options:

                                                Old machine New machine  Difference

                                                     A                     B                    A-B

Operating annual costs          $125,000*      $100,000**     $25,000

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salvage value                                                   ($,6000)            $6000

Total costs                                $125,000        $119,000            $6,000                                    

*The old machine has $125,000 ($25,000*5) estimated operating costs for five years.

**The new machine has $$100,000($20,000*5) estimated operating costs for five years

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