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
Marina86 [1]
3 years ago
5

Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00. During 2021, an additional

30,000 units were purchased at a single unit cost, and 20,000 units remained on hand at the end of 2021 (20,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $115,000. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.
Required:
1. Determine the cost of goods sold for 2021 using the FIFO method. [Hint: Determine the cost per unit of 2021 purchases.]
2. Determine the cost of goods sold for 2021 using the LIFO method.
Business
1 answer:
lidiya [134]3 years ago
5 0

Answer: 1. $110000.

2. $120000

Explanation:

First, we calculate the sold units which will be:

= Opening inventory + Purchase - Ending inventory

= 10000 + 30000 - 20000.

= 20000

Then, the cost of stock per unit will be:

= $115000/20000

= $5.75

The total cost of the total stock available will be:

= 40000 × $5.75

= $230,000

Cost of purchase stock will be:

= Total cost of stock - Cost of beginning inventory

= $230000 - $50000

= $180000

Then, cos per unit of purchased stock will be:

= $180000 / 30000

= $6

1 Determine the cost of goods sold for 2021 using the FIFO method.

Cost from begining inventory = 10000 × 5 = 50000

Add: Cost from purchase inventory = 10000 × 6 = 60000

Cost of goods sold under FIFO = 110000

2. Determine the cost of goods sold for 2021 using the LIFO method.

This will be:

= 20000 × 6

= 120000

You might be interested in
According to the U.S. Department of Labor Statistics, _____ is the industry earning the highest average annual wage in 2009.
Alchen [17]

Answer:

B. federal government

4 0
3 years ago
Read 2 more answers
What's the difference between everyday activities and projects
Wittaler [7]
Projects are a frequent part of business. They differ from routine activities in that they usually have a narrow focus, specific deadline and may occur only once or infrequently. Some project types recur but differ in their goals. I hope it helps !
4 0
3 years ago
The Sisyphean Company has a bond outstanding with a face value of $ 5 comma 000 $5,000 that reaches maturity in 5 5 years. The b
lilavasa [31]

Answer: $5,219.59905

the price that the bond traded for would be closest to

$5,220 (rounded to whole number)

Explanation:

Using the price of bond formula below:

Price = C × 1 - [(1+r)^-n] /r + F/ (1+r)^n

C = coupon rate = 9.1% of face values ($5,000)

F= Face value(par value) = $5,000

n = number of years to maturity; 5

r = YTM (yield to maturity) = 8% = 0.08

Price = 455 × 1 - [(1+0.08)^-5]/0.08 + 5,000/(1+0.08)^5

Price = 455 × 1 - [(1.08)^-5]/0.08 + 5,000/(1.08)^5

Price= 455 × ( 1 - 0.680583197)/0.08 + 5,000 / 1.46932808

Price= 455 × (0.319416803)/0.08 + 3,402.91598

Price = 1,816.68307 + 3,402.91598

Price= $5,219.59905

≈$5,220 to the nearest whole number.

8 0
3 years ago
A community organizer wants to convince state officials to create a universal preschool program so that all families with young
ch4aika [34]

Answer:

David Snow focused on this set of conguent interests on social movements issues strategies on his most important scholarly achievement which he called "framing perspective"

Explanation:

Snow´s "framing perspective" approach on large, informal groupings of individuals or organizations to negotiate on emergent meanings of social-movement issues, is psychological and centered in agencies services focused on specific action for change.

More than competing perspectives framing perspective is a diagnostic framing to identify the problem to assign of blame; prognostic framing to suggest solutions, strategies, and tactics to a problem and motivational framing to get rationale action to the types of social change, which could be alternative, redemptive, reformative and revolutionary according to David F. Aberle a cultural anthropologist.

8 0
3 years ago
Wolverine Corporation plans to pay $3 dividend per share on each of its 300,000 shares next year. Wolverine anticipates earnings
lesantik [10]

Answer:

new equity  $  1,425,000

new debt     $    950,000

Explanation:

retained earnings

300,000 x (6.25 - 3) = 975.000

If debt is 0.4 of assets then by deifinition:

assets = liab+ equity

1 = 4 + equity

equity = 0.6 (60%)

<u>Retained Earnings breakpoint</u>

975,000 / 0.6 = 1,625,000‬

The company can riase capital expenditured for 1,625,000 and mantaining his capital structure.

As the company need 4,000,000 it will need to raise more capital as it surpass the retained earnings breakpoint.

4,000,000 - 1,625,000 = 2,375,000

2,375,000 x 0.6 = 1,425,000 new equity

2,375,000 x 0.4 =   950,000 new debt

4 0
3 years ago
Other questions:
  • Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours,
    10·1 answer
  • You are a foreign exchange student studying in Switzerland. You are from Australia and currently have Australian dollars and som
    12·1 answer
  • What determines the price and the quantity produced of most goods? the availability of substitutes for the goods the quality of
    11·2 answers
  • One way that nike can examine retention of its female consumers is to review their purchases over several timeframes. this is al
    8·1 answer
  • An asian buyer meets with a broker and asks to be shown homes. if she doesn't ask to see homes in areas with no asian residents,
    9·1 answer
  • Return on investment is superior to residual income as a means of measuring performance because it encourages managers to make i
    15·1 answer
  • On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,500,000 for $5,000,000. Rigsby appropriately uses the i
    5·1 answer
  • Discuss why it is important for human resource management systems to be in sync with an organization’s strategy and goals and wi
    11·1 answer
  • Should a Female with the same Qualifications as a Man, if selected for an Executive Position formerly held by a man, be paid the
    10·2 answers
  • Investor A has an initial wealth of $100 and a utility function of the form: U(w) = log(w) where w is her wealth at any time. In
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!