Pollution control equipment for a pulverized coal cyclone furnace is estimated to cost $190,000 two years from now and an additi
1 answer:
Answer: $250,096
Explanation:
To find out the amount that should be invested today, one should find the present values of both figures and add them up:
Interest rate should be periodically adjusted so: 8% / 2 = 4% per semi annum
No of periods should be adjusted as well.
Amount to be invested today:
= $250,096
You might be interested in
Answer:
1-3 Attached inventory record schedule based on FIFO, LIFO and WEIGHTED AVERAGE method
4. COST OF GOODS SOLD
FIFO $6,070
LIFO $6,165
WA $6,080
5. GROSS PROFIT
FIFO $5,235
LIFO $5,140
WA $5,225
6. FIFO method maximizes gross profit
Explanation:
Schedule for Inventory record is attached based on FIFO, LIFO and Weighted Average method.
FIFO - (First in, First out) this inventory method sells older inventory before the company sells the newly acquired.
LIFO - (Last in, First out) this inventory method sells the latest acquired inventory rather than the older one.
Weighted Average- This inventory method uses inventory cost by dividing total amount of inventory over total units sold.
4. COST OF GOODS SOLD
FIFO
August 3 45 x $35 = $1,575
August 21 5 x $35 = $175
80 x $54 = 4,320
TOTAL $6,070
LIFO
August 3 45 x $35 = $1,575
August 21 85 x $54 = $4,590
TOTAL $6,165
Weighted Average
August 3 45 x $35 = $1,575
August 21 85 x $53 = 4,505
TOTAL $6,080
5. Gross Profit
Total sales is $11,305 (45 x $85 = $3,825 + 85 x $88 = 7,480)
FIFO
Total sales - Cost Of Goods Sold = Gross profit
$11,305 - $6,070 = $5,235
LIFO
Total sales - Cost Of Goods Sold = Gross profit
$11,305 - $6,165 = $5,140
Weighted Average
Total sales - Cost Of Goods Sold = Gross profit
$11,305 - $6,080 = $5,225
6. FIFO maximizes gross profit profit among the 3 methods. It yields the highest profit for the month of August in the amount of $5,235
