A company uses the periodic average cost method to account for inventory. For the year, the company had the following beginning inventory and purchases:
Beginning inventory on January 1
100 units
at
$
2,800
per unit
Purchase on March 1
400 units
at
$
3,000
per unit
Purchase on September 1
800 units
at
$
3,200
per unit
Sales for the year totaled 1,000 units, leaving 300 units on hand at the end of the year. The company reported ending inventory for $900,000. Which of the following is correct?
The amount reported for ending inventory is incorrect because management used a simple average instead of weighted-average to calculate the unit cost of inventory for the year.
The amount reported for ending inventory cannot be determined with the information given because the amount depends on which of the 1,000 units were assumed to be sold.
The amount reported for ending inventory is incorrect because the unit cost of ending inventory should be the average cost of the last 300 units purchased.
The amount reported for ending inventory is correct.
Answers: 2
Business, 21.06.2019 19:20
You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?
Answers: 3
Business, 21.06.2019 20:50
Last year, western corporation had sales of $5 million, cost of goods sold of $3 million, operating expenses of $175,000 and depreciation of $125,000. the firm received $40,000 in dividend income and paid $200,000 in interest on loans. also, western sold stock during the year, receiving a $40,000 gain on stock owned 6 years, but losing $60,000 on stock owned 4 years. what is the firm's tax liability?
Answers: 2
Business, 22.06.2019 05:30
The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.
Answers: 1
A company uses the periodic average cost method to account for inventory. For the year, the company...
Mathematics, 07.01.2020 02:31
Mathematics, 07.01.2020 02:31
Mathematics, 07.01.2020 02:31
Advanced Placement (AP), 07.01.2020 02:31
Mathematics, 07.01.2020 02:31
Mathematics, 07.01.2020 02:31
Mathematics, 07.01.2020 02:31
Mathematics, 07.01.2020 02:31