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Shtirlitz [24]
3 years ago
8

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 23 units at $205 1

7 units February: 33 units at $210 17 units May: 28 units at $215 21 units September: 25 units at $220 20 units November: 23 units at $225 25 units On December 31, there were 32 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory
Business
1 answer:
hodyreva [135]3 years ago
6 0

Answer:

$6,755

Explanation:

The computation of the cost of the ending inventory using the perpetual LIFO method is as follows:

For January:

Total value = Units remaining in inventory × cost per unit

= (23 - 17) × $205

= $1,230

For February:

Total value = Units remaining in inventory × cost per unit

= (33 - 17) × $210

= $3,360

For May:

Total value = Units remaining in inventory × cost per unit

= (28 - $21) × $215

= $1,505

For September:

Total value = Units remaining in inventory × cost per unit

= (25 - 20) × $220

= $1,100

For November:

Total value = Units remaining in inventory × cost per unit

= (25 - 23) × $220

= $660

Cost of the ending inventory:

= $1,230 + $3,360 + $1,505 + $660

= $6,755

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Here are a couple of things hope they help

<span>1.)  Interest rates
</span><span>2.) Taxes Inflation
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5 0
3 years ago
According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual
Paha777 [63]

Answer:

A) True

Explanation:

The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".

The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.

Return earned by a portfolio is the weighted average return of the individual stock returns.

CAPM helps calculate expected return of an investor by the following formula:

Return = R_{f} \ + B(R_{m}\ -\ R_{f}  )

wherein, R_{f} = Risk free rate of return yielded by treasury bonds

              B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.

             R_{m}= Return which can be earned on market portfolio

Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.

6 0
3 years ago
Suppose that the price of a good decreased. The substitution effect shows the change in consumption for all goods in reaction to
Lapatulllka [165]

Answer:

The correct answer is "relative prices; utility". A further explanation is provided below.

Explanation:

  • The conditions of a connection or bond between variables customer demand or perhaps the proportion of such a given cost of production to the normal distribution of so many other products available throughout the marketplace.
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Thus the above is the correct answer.

4 0
3 years ago
5. A business in its first period of trading charges $4,000 of sales tax on its sales and suffers $3,500 of sales tax on its pur
Katyanochek1 [597]

The unrecoverable sales tax on business entertaining ($250) has been deducted from $3,500

solution

                                   SALES TAX CONTROL ACCOUNT

Payable s                                             $ 3250        Receivables       $4000

Balance c/d (owned to tax authority)   $ 750

                                                           -------------                                ---------------

                                                             $ 4000                                    $4000

                                                           --------------                               ----------------

                                                                              By balance b/d       $ 750

8 0
3 years ago
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lisabon 2012 [21]

Answer:

Answer is $15,000

$6,000 share of ordinary income plus $9,000 gain for a $50,000 distribution in excess of her $41,000 stock basis.

3 0
4 years ago
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