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STatiana [176]
4 years ago
6

Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 480 units that cost $6

5 each. During the month, the company made two purchases: 720 units at $68 each and 360 units at $70 each. Chess Top also sold 1,200 units during the month. Using the average cost method, what is the amount of ending inventory?
Business
1 answer:
Whitepunk [10]4 years ago
5 0

Answer:

The cost of ending inventory is $24314.

Explanation:

Under the average cost method, the inventory is valued at the average cost of all the inventory that is available from the start of the month and the purchases made.

The average cost of inventory can be calculated by summing up the total cost of beginning inventory and purchases and dividing it by the total number of units available for sale.

Average cost per unit = [ 480*65 + 720*68 + 360*70 ] / [480 + 720 + 360]

Average cost per unit = 67.538 rounded off to $67.54 per unit

The total inventory available for sale = 480+720+360 = 1560 units

The ending inventory in units = 1560 - 1200 = 360 units

The cost of ending inventory = 360 * 67.54 = $24314.4 rounded off to $24314

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What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where
Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0
3 years ago
If a bank decides that it wants to hold​ $1 million of excess​ reserves, what effect will this have on checkable deposits in the
Alja [10]

Answer:

C. Checkable deposits decline by $10 million.

Explanation:

The banks must keep a reserve of money at Central Banks, the amount is defined by the reserve ratio, 10% in this case, but the banks could keep an extra reserve of money at Central Banks, in this case it's $ 1 million, so, if the bank decides to keep that reserve it means will be less money available to checkable deposit in the same amount.

When the banks keeps reserve by his own will, the required reserve ratio is not applicable to the amount, is the same situation as if we want to keep our money in the bank, for banks, they keep money in Central Banks.

hoping having been clear.  

7 0
3 years ago
American Idle sells hammocks in a perfectly competitive market. This year, the price of hammocks has fallen to $24, and Simon Co
AfilCa [17]

Answer:

Shut down as P < AVC.

Explanation:

Given that,

Selling price = $24

Average variable cost = $25

Average total cost (ATC) = $30

Marginal cost = $24

He should shut down because the price received by him for the product is less than average variable cost. He should shut down its operations because he won't be able cover the average variable cost associated with the production of the product.

Price = $24 which is less than average variable cost of $25.

If he will be able to cover its variable cost then he will continue operating in this market condition.

3 0
3 years ago
A _____ savings account pays interest and allows for a regular deposits and withdrawals
lisov135 [29]

Answer:

<em>Regular savings account </em>

Explanation:

<em>One requires to commit small amounts of income each month on a regular savings account.</em>

In exchange for providing your savings provider a fixed level of income every month, they normally pay you a higher rate of return than, for instance, if you invest a lump sum in a cash ISA or easy access account.

However, the best regular savings rates also exceed the prices on the longer fixed-rate offers offered.

This type of account has rigorous terms of service that may cause you to lose your competitive rate if you fail to adhere to them.

7 0
3 years ago
An office has 5 copy machines that need to be serviced approximately once an hour either for paper, staples, or toner or repair.
Anton [14]

Answer:

a. Average number of copiers in line is 0.275

b. Average number of copiers still in operation is 4.23

c. Average number being serviced is 0.496

d. No, the office should not do it

Explanation:

N = number of copy machines = 5

U = average time between unit service requirements = 1 hour = 60 minutes

T = average service time = 7 minutes

M = number of servers = 1

Cost of copier downtime = $20

Cost of attendant = $15

(a)  Service factor, X = T / (T+U) = 7 / (60+7) = 0.105

From the Finite Queuing Tables for a Population of N = 5,

For X = 0.105 and M=1, the efficiency factor, F = 0.945

So,  The average number waiting in line, L = N × (1 - F) = 5 × (1 - 0.945) = 0.275

(b) Average number in operation, J = N×F×(1 - X) = 5×0.945×(1 - 0.105) = 4.23

(c) Average number being serviced, H = F×N×X = 0.945×5×0.105 = 0.496

(d)  For M=1

The average number of copier down = N - J = 5 - 4.23 = 0.77

So, cost of downtime per hour = $20×0.77 = $15.4

Also, the cost of the server per hour = $15×M = $15×1 = $15

So, total cost = 15.4 + 15 = $30.4 per hour (i)

For M=2

From the Finite Queuing Tables for a Population of N = 5, with X = 0.105 and M=2, the efficiency factor, F = 0.997

J = N×F×(1 - X) = 5×0.997×(1 - 0.105) = 4.46

The average number of copier down = N - J = 5 - 4.46 = 0.54

So, cost of downtime per hour = $20×0.54 = $10.8

Also, the cost of the server per hour = $15×M = $15×2 = $30

So, total cost = 10.8 + 30 = $40.8 per hour (ii)

Comparing (i) and (ii), we can say that having another attendant is not cost-effective.

8 0
3 years ago
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