1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SOVA2 [1]
3 years ago
15

A firm which prepares its financial statements according to U.S. GAAP and uses a periodic inventory system had the following tra

nsactions during the year: Date Activity Tons(000s) $ per Ton Beginning inventory 1 500 February Purchase 8 540 May Sales 5 600 July Purchase 2 575 November Sales 3 620 The cost of sales (in '000s) is closest to: Select one: A. $4,280 using LIFO. B. $4,342 using weighted average. C. $4,435 using LIFO. D. $4,390 using FIFO. E. $4,550 using FIFO.
Business
1 answer:
saveliy_v [14]3 years ago
4 0

Answer:

B. $4,342 using weighted average.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation to the answer is now given as follows:

Also note: See the attached excel file for the calculations of cost of sales using FIFO, LIFO and Weighted Average methods (in red color).

First In First Out (FIFO) refers to the inventory method whereby the inventory items purchased first are sold first.

Last In First Out (LIFO) refers to the inventory method whereby the inventory items purchased last are sold first.

Weighted average cost method refers an inventory costing technique whereby the average cost per unit is calculated by dividing the total cost of the goods available for sale by the total number of units available for sales.

From the question, we can obtained:

Total Tons (000s) Sold = May Sales + November Sales = 5 + 3 = 8

From the attached excel file, we have:

Weighted average unit cost = Total Cost ($'000s) / Total Tons (000s)  Available for Sales =  5,970 / 11 =  $542.73

Cost of sales under weighted average = Total Tons (000s) Sold *  Weighted average unit cost =  8 * $542.73 = $4,342

Therefore, from the attached excel file and the calculations above, the correct option is B. $4,342 using weighted average.

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
You might be interested in
Which type of store has high sales volume, little service, and prices 20-40 percent lower than supermarkets?
enot [183]
Gas stations. That would be that.
6 0
3 years ago
In a loan database, there are 66 loans to clients with 17 years of business experience. Also, there are 83 loans made to clients
lisabon 2012 [21]

Answer:

7 loans were made to clients with Graduate education who also had 17 years of experience

Explanation:

We have to solve for which is the intersection between the two groups.

66 is the count for +17 years

83 is the count for Graduate

the two groups is 149 loans

Then, we have 142 loans which are not part of both groups. Therefore, the difference are the loan count which do belong to both groups:

149 total loans - 142 loans out = 7

4 0
3 years ago
Explain the holistic marketing dimensions in details using the examples of ‘Nestle Bangladesh
Marysya12 [62]
Drinking from a fresh water bottle in dimensions
7 0
3 years ago
What does the process of designing marketing channels start​ with?
umka21 [38]

The journey of a manufactured goods from its raw materials to a consumer’s hands is its marketing channel. The initial step in scheming a marketing channel is recognizing what the target consumer necessitates. Getting this step right is critical, or you’ll wind up with a mound of unsold goods. Market research is a complicated industry, but with the correct implements and direction, you can make a high-demand good that essentially sells itself.

3 0
3 years ago
In the context of direct competition,__________is defined as the degree to which two companies have overlapping products, servic
babymother [125]

Answer:

Market Commonality

Explanation:

Market Commonality refers to the number of markets, with which firm & its competitors are jointly involved. It denotes the way in which firms & competitors are involved in market, also depicting importance of inter dependent individual markets to each.

So, the concept of 'market commonality' is representative of the degree to which two companies have overlapping products, services, or consumers in multiple markets.  

6 0
3 years ago
Other questions:
  • The rate that a state assigns reflecting a company's stability or instability in employing workers is the:
    12·1 answer
  • A= The amount of tangible assets contributed by the new partner into the partnership
    14·1 answer
  • A(n) ________ refers to the first public offering of a corporation's stock.
    11·1 answer
  • Use the midpoint method to calculate the price elasticity of demand for potato chips that increased in price from $2.00 to $3.00
    15·1 answer
  • He difference between the largest and the smallest data values is the
    7·1 answer
  • Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually.
    10·1 answer
  • Star, inc., is attempting to decide whether or not if it should change its manufacturing process to a new type of technology. th
    5·1 answer
  • At the beginning of 2013, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Ba
    14·1 answer
  • Are there any special fees or interest rates, or both for Chash Advances and Balance Transfers?Explain.​
    14·1 answer
  • Period costs are the​ ________. A. product costs that must be paid in the accounting period in which they are incurred. B. sam
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!