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julsineya [31]
3 years ago
13

Compton Inc. has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750. Materials

used during the month were $128,900. As a result, what is the cost of materials purchased during the month
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer:

Purchases= $130,150

Explanation:

Giving the following information:

Beginning inventory= $27,500

Ending inventory= $28,750.

Materials used during the month were $128,900.

<u>To calculate the direct material purchase, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 128,900 + 28,750 - 27,500

Purchases= $130,150

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Murljashka [212]

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<h3>What is the spread?</h3>

The spread is the gap or difference between the bid and the ask prices of a security or asset, like a stock, bond, or commodity

The spread is commonly known as a bid-ask spread.  This implies that while the investor is bidding to sell the security at $41.87, it could be sold for $42.25, giving a difference (spread) of $0.38 per share.

<h3>Data and Calculations:</h3>

Buy Orders (Bids)        Sell Orders (Asks)

Amount       Price         Amount          Price

63              $42.15            3               $42.16

36              $42.12          68              $42.22

112             $41.99          113              $42.25

 3             $41.88             9              $42.44

Spread at a ask price of $42.25 = $0.38 ($42.25 - $41.87)

<h3>Answer Options:</h3>

a.) 0.01

b.) 0.29

c.) 0.38

d.) 0.17

Thus, the spread for this security after an investor submits a sell order for 185 shares at $41.87 is c.) <u>$0.38</u><u>.</u>

Learn more about security spreads and bid and askprices at brainly.com/question/14467928

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