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FromTheMoon [43]
3 years ago
7

On January 1, 2007, Nichols Company's inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company pu

rchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of goods sold using weighted-average cost is:
Business
2 answers:
timama [110]3 years ago
8 0

Answer:

For the cost of goods sold, the company made around $42,435

Explanation:

Solve cost of goods for Jan. 1st:

2000 units × $8

$16,000

Solve for cost of goods during 2007:

5000 units × $10

$50,000

Use the formula for weighted-average cost:

WAC per unit = cost of goods available for sale / units available for sale

WAC per unit = 16,000 + 50,000 / 2000 + 5000

WAC per unit = 66,000 / 7000

WAC per unit = 9.42857..... I will round to a dollar value

WAC per unit = 9.43

For cost of goods <em>sold</em>:

4,500 × 9.43 (please keep in mind 9.43 is a rounded number)

$42,435

Leona [35]3 years ago
8 0

The cost of goods sold using  weighted-average cost under Periodic inventory is $42,429

Before calculating the cost of goods sold, first we have to determine the weighted average cost per unit.

For this following formula should be used:

= (Opening units × cost per unit + purchased units × cost per unit) ÷ (opening units + purchased units)

= (2,000 units × $8 + 5,000 units × $10) ÷ (2,000 units + 5,000 units)

= ($16,000 + $50,000) ÷ (7,000 units)

= $66,000 ÷ 7,000 units

= $9.428

Now the cost of goods sold using  weighted-average cost is

= Number of units sold × average cost per unit

= 4,500 units × $9.428

= $42,429

Hence, we conclude that the cost of goods sold using weighted-average cost under Periodic inventory is $42,429.

Learn more about the cost of goods sold here: brainly.com/question/14292529

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DLW, Inc just started its business. DLW purchased factory equipment for $800,000 on January 1. It is estimated that the equipmen
igor_vitrenko [27]

Answer:

Annual depreciation= $77,000

Explanation:

Giving the following information:

Purchase price= $800,000

Salvage value= $30,000

Useful life= 10 year

Under the straight-line method of depreciation, the depreciation expense is constant along the useful life.

We need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (800,000 - 30,000)/10

Annual depreciation= $77,000

6 0
3 years ago
The goals of labor unions differ from those of management because employers want more profits and labor wants: Multiple choice q
AnnZ [28]

The goals of labor are such that they want better pay and working conditions.

<h3>The ultimate goal of workers/labor</h3>

A business is in operation to make a profit, likewise, labor or workers work to the end of being paid for the services rendered.

In addition to good pay, labor also requires good perks like health cover, safe and secure work conditions, and the environment.

Learn more about Labour here:

brainly.com/question/98074

#SPJ1

8 0
2 years ago
Crane Corporation's computation of cost of goods sold is:
slava [35]

Answer:

16.64 days

Explanation:

Given the above information, we will calculate the average days to sell inventories with the formula below;

Average days to sell inventories = [Ending inventory / Cost of goods sold] × 100

Ending inventory = $72,000

Cost of goods sold = $432,800

Then, Average days to sell inventories

= [$72,000 / $432,800] × 100

= 16.64 days

Therefore, the average days to sell inventory for Fry are 16.64 days

5 0
3 years ago
On January 1, 2019, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 6-year life and a
ELEN [110]

Answer:

option (A) $29,920

Explanation:

Data provided in the question;

Purchasing cost = $40,000

Estimated life = 6 years

Salvage value = $4,000

Estimated driving life = 100,000

Vehicle driven in total till 2020 = 10,000 + 18,000 = 28,000

Now,

Using the units-of-production depreciation method

Total depreciation till 2020 = \frac{\textup{Purchasing cost - Salvage value}}{\textup{Estimated driving life}}\times\textup{Total distance driven}

or

Total depreciation till 2020 = \frac{\textup{40,000 - 4,000}}{\textup{100,000}}\times\textup{28,000}

or

Total depreciation till 2020 = $10,080

Thus,

Book value on December 31, 2020 = Purchasing cost - Depreciation

= $40,000 - $10,080

= $29,920

Hence,

The correct answer is option (A) $29,920

5 0
3 years ago
For each transaction,
Misha Larkins [42]

Answer:

1) I used an excel spreadsheet

2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.

Dr Cash 7,000

Dr Equipment 3,000

    Cr DeShawn Tyler, capital 10,000

b. On May 21, Elegant Lawns purchases office supplies on credit for $500.

Dr Office supplies 500

    Cr Accounts payable 500

c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.

Dr Cash 4,000

    Cr Landscaping Revenue 4,000

d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.

Dr Cash 1,000

    Cr Unearned Landscaping Revenue 1,000

3)

Cash (101)

debit                    credit

7,000

4,000

<u>1,000                              </u>

12,000

Office Supplies (124)

debit                    credit

500

Equipment (167)

debit                    credit

3,000

Accounts Payable (201)

debit                    credit

                            500

Unearned Landscaping Revenue (236)

debit                    credit

                            1,000

D. Tyler, Capital (301)

debit                    credit

                            10,000

Landscaping Revenue (403)

debit                    credit

                            4,000

Download pdf
3 0
3 years ago
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