Net credit sales $120,000 Average accounts receivable 20,000 Cash collections on credit sales 100,000 What is the receivables tu
1 answer:
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Answer:
$6745
Explanation:
Given: Beginning inventory is 77 units at the cost of $19 per unit.
Purchased inventory is 476 units at $19 per unit.
Sales during the month is 355 units at $45 per unit.
Now, let´s find the cost of goods sold using LIFO method.
We know, LIFO method is Last in first out, which sell out inventory, which are most recently purchased. In a period of rising prices, LIFO inventory method tends to give the highest reported cost of goods sold.
As sales unit is 355 units.
Let´s take units from recent purchased inventory.
Cost of good sold=
Hence, the cost of goods sold using the LIFO method is $6745.
Answer:
Cost per unit of widget produced = $6.52
Explanation:
As for the provided information:
Total units produced = 4,600 units
Total cost of production = costs for Department 1 + Department 2 + Department 3
= $18,000 + $8,000 + $4,000 = $30,000
It does not matter how many units are sold as the cost of sales will include, selling and administrative cost also.
Therefore, all the cost will be considered.
Thus total cost of production = $30,000 for 4,600 units.
Cost per unit of widget =