Answer:
$750
Explanation:
The formula for determination of beginning inventory is given below:
Cost of goods sold=opening inventory+purchases-closing inventory
Cost of goods sold=$2,000
Purchases=$2,250
closing inventory=$1,000
Opening inventory=Cost of goods sold+closing inventory-purchases
=2,000+1,000-2,250
=$750
Answer:
13
Explanation:
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Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
Answer:
Present Value= $18,181.82
Explanation:
Giving the following information:
Savings= $2,000
The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.
Interest rate= 7%
To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.
PV= Cf/ (i + g)
Cf= cash flow
PV= 2,000/ (0.07 + 0.04)
PV= $18,181.82
Answer:
$4,536
Explanation:
LIFO assumes that the units to arrive last will be sold first. Hence inventory valuation is based on the prices of earlier units.
Ending Inventory = 36 x $126 = $4,536
The value of the ending inventory using the LIFO method of inventory pricing is $4,536.
