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
Xelga [282]
3 years ago
5

Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weig

hted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).
Business
1 answer:
masha68 [24]3 years ago
6 0

Answer:

(a) Cost of inventory sold using FIFO method = $179,280

(b) Cost of inventory sold using LIFO method = $188,700

(c) Cost of inventory sold using weighted average cost method = $186,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answers is now provided as follows:

Units of inventory sold = Units available for sale - Ending physical inventory units = 45 – 14 = 31

(a) first-in, first-out (FIFO) method

Under FIFO, inventory purchased first is sold first. Therefore, we have:

Cost of inventory sold using FIFO = 12 units at $5,400 each from Jan. 1 + 18 units at $6,000 each from Aug. 7 Purchase + 1 unit at $6,480 from Dec. 11 Purchase = (12 * $5,400) + (18 * $6,000) + (1 * $6,480) = $64,800 + $108,000 + $6,480 = $179,280

(b) last-in, first-out (LIFO) method

Under LIFO, inventory purchased last is sold first. Therefore, we have:

Cost of inventory sold using LIFO = 15 unit at $6,480 each from Dec. 11 Purchase + 16 units at $6,000 each from Aug. 7 Purchase = (15 * $6,480) + (16 * $6,000) = $97,200 + $96,000 = $188,700

(c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar).

Under the weighted average cost method, the cost of goods available for sale is divided by the number of units available for sale to obtain average cost per unit. This is then used to multiply the total units sold to obtain the cost of inventory sold as follows:

Weighted average cost per unit = Cost of goods available for sale / Units available for sale = $270,000 / 45 = $6,000

Cost of inventory sold using weighted average cost method = Units of inventory sold * Weighted average cost per unit = 31 * $6,000 = $186,000

Download pdf
You might be interested in
To balance columns, a _____ is inserted at the end of the text on a page.
Radda [10]
Salutations!

To balance columns, a _____ is inserted at the end of the text on a page.

To balance columns, a continuous section break is inserted at the end of the text on a page.

Hope I helped!
3 0
3 years ago
Benoit company produces three products—a, b, and
Lana71 [14]
My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

<span> <span> </span><span><span> PER UNIT
</span> <span> PRODUCT                              A               B                C
</span> <span> SELLING PRICE                   80              62                81
</span> <span> VARIABLE EXPENSES
</span> <span> DIRECT MATERIALS            24             18                  9
</span> <span> OTHER VAR EXP.                 24             25.4             43.65
</span> <span> TOTAL VAR EXP                   48             43.4             52.65
</span> <span> CONTRIBUTION MARGIN    32             18.6             28.35
</span> <span> <span>CM RATIO </span>                            0.4             0.3                0.35
</span> <span> </span> <span>
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
</span> <span> SAME RAW MATERIAL IS USED IN EACH PRODUCT.
</span> <span> MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
</span> <span> </span> <span>
PRODUCT      DM     <span>UNIT COST </span>        NO. OF LBS
</span> <span> A                      24            3                             8
</span> <span> B                      18            3                             6
</span> <span> C                        9            3                             3
</span> <span> </span> <span> PRODUCT NO. OF LBS/UNIT     MAX UNITS      TOTAL NO. OF LBS
</span> <span> A                       8                                800                    6400
</span> <span> B                       6                                800                    4800
</span> <span> C                       3                                800                    2400
</span> <span> TOTAL                                                                         13600
</span> <span> LIMITATION: 5,000 POUNDS PER MONTH ONLY.

</span></span></span><span> <span> </span><span><span> <span>required: </span>
</span> <span> <span>1. calculate the contribution margin per pound of the constraining resource for each product. </span>
</span> <span> 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
</span> <span> </span> <span>
</span></span></span><span>PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS. </span>

5 0
3 years ago
In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was
Cerrena [4.2K]

Answer:

Real income has increased by $720 in terms of dollar and 2% in percentage

Explanation:

<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>

R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>

Real Income =         32000 × 120/125

                                =$30,720

Change Real income

Change in real income ($) = 30,720 - 30,000

                                        = $ 720  

Change in real income (%)  =  (720/30,000) × 100

                                      = 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

                     

3 0
3 years ago
Cash investments made by the owner to the business are reported on the statement of cash flows in the
Julli [10]

Answer:

d. financing activities section

Explanation:

cash investment made by the owner and their withdrawals will be in the financing activities section

On the financing activities, the accounting does a detail ofthe origin of funds which paid for the assets. These funds could be from owners or lenders.

Therefore, the equity transactions are included in the financing activities sections

From the owner point of view, it is an investment. But, we must remember that the owner and te company are different entities. For the company it is financiation

6 0
3 years ago
How to be successful in business without really trying?
galina1969 [7]
Being the son/daughter of someone with big bucks and lots of cash. Kim jung whats his face
5 0
3 years ago
Other questions:
  • During the past recession, Taylor Tool Company created a __________ organization, when it restructured and eliminated several mi
    9·1 answer
  • You have purchased 1 million shares in a restaurant chain venture. At this zero-stage investment, your company’s assets are $110
    6·1 answer
  • Suppose the president of the united states announces a new set of reforms that includes a new​ anti-inflation program. assuming
    15·1 answer
  • What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3
    7·1 answer
  • A company should accrue a loss contingency only if the likelihood that a liability has been incurred is:At least reasonably poss
    6·1 answer
  • Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel​ = $4 an
    11·1 answer
  • Philip Morris expects the sales for his clothing company to be $620,000 next year. Philip notes that net assets (Assets − Liabil
    8·1 answer
  • "_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, bus
    9·1 answer
  • Expain what is debt in a 70 word paragraph
    13·2 answers
  • Schedule 1 (Form 1040), lines 8z and 24z will be used to report other ____________ that do not have their own designated line.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!