Crane uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $11.00 each. During the month, the company made two purchases: 3100 units at $12.00 each and 12200 units at $12.50 each. Crane also sold 12700 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month
Answers
Answer:
$151,673
Explanation:
Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period.
Description Units Rate Value
Beginning Inventory 7,400 $11.00 $81,400
Purchases 3,100 $12.00 $37,200
Purchases 12,200 $12.50 $152,500
Total Inventory 22,700 $11.94273128 $271,100
Sale 12,700 $11.94273128 $151,673
Cost of Goods Sold = $271,100 x 12,700 / 22,700 = $151,673
Related Questions
Suppose the Treasury sells $10 billion worth of securities to the Social Security Administration and $15 billion to the general public. This sale added ________ billion to gross public debt and ________ billion to the debt held by the public.
Suppose that Spain and Germany both produce jeans and shoes. Spain's opportunity cost of producing a pair of shoes is 3 pairs of jeans while Germany's opportunity cost of producing a pair of shoes is 11 pairs of jeans.By comparing the opportunity cost of producing shoes in the two countries, you can tell that ------- has a comparative advantage in the production of shoes and ------ has a comparative advantage in the production of jeans.Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as long as it receives more than ------ of jeans for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than--------- of shoes for each pair of jeans it exports to Spain.Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of jeans) would allow both Germany and Spain to gain from trade?4 pairs of jeans per pair of shoes, 1 pair of jeans per pair of shoes, 6 pairs of jeans per pair of shoes, 2 pairs of jeans per pair of shoes
The first step in assembling a project team is to:A) talk to potential team members.B) identify the required skills.C) negotiate with the functional supervisor.D) notify top management.
CBA Inc has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. How many shares will be outstanding after the stock dividend?
b. rise, so firms decrease investment.
c. fall, so firms increase investment.
d. fall, so firms decrease investment.
Answers
B) 2.66 million
C) 60.38 million
D) 8.18 million
Answers
Answer:
D) 8.18 million
Explanation:
EBIT=80-52
=$28 million
EVA=net operating profit after tax-(capital invested×WACC)
=$28 m (1-0.4)-($115 m ×.075)
=$8.18 million
Answers
Answer: $120,000
Explanation:
Depreciation is to be based on the cost of the asset being depreciated. In this scenario, the cost of the heavy duty drill press will be the Present Value of all the lease payments for the entire 10 years because it is said that the title will pass to Hernandez Inc. afterwards so the lease payments can be considered as payment.
Straight Line Amortisation =
Straight Line Amortisation =
Straight Line Amortisation = $120,000 per year
b. $600,000
c. $610,000
d. $625,000
Answers
Answer:
d. $625,000
Explanation:
cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period
- cost of goods manufactured during the current period = $600,000
- finished goods inventory at the beginning of the period = $25,000
cost of goods available for sale = $600,000 + $25,000 = $625,000
cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000
Final answer:
The Cost of Goods Available for Sale is calculated by adding the Beginning Inventory and the Manufacturing Costs together, resulting in a total of $625,000.
Explanation:
To compute the Cost of Goods Available for Sale, you would add your Beginning Inventory (the cost of the goods on hand at the start of the period) to the cost of the purchases made during the period - which, in this case, would be the manufacturing costs. Given that there were no changes in the raw materials or work in process inventory and since the manufacturing costs incurred totaled $600,000, we can outline the following:
Beginning Inventory of finished goods = $25,000
Manufacturing costs incurred = $600,000
Thus, to calculate the Cost of Goods Available for Sale:
Cost of Goods Available for Sale = Beginning Inventory + Manufacturing Costs=> $25,000 + $600,000 = $625,000
So, the Cost of Goods Available for Sale is $625,000.
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a. Journalize any required 2016 entries for the bond investment.
b. How much cash interest will Astro Mile receive each year from CoteCorp?
c. How much interest revenue will Astro Mile report during 2016 on this bond investment?
Answers
Answer:
Dr bond investment $1,400,000
Cr cash $1,400,000
Cash interest is $112,000.00
Interest revenue for the year is also $ 112,000.00
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00
Answers
Answer:
Net income is $135,000
Explanation:
The below is the Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 .
Fees earned $900,000
less:
Office expense $300,000
miscellaneous expense $15,000
wages expense $450,000
Total expense for the year ($765,000)
Net income $135,000
The net income is computed by deducting office,miscellaneous and wages expenses from the total fees earned during the year,hence the resulting net income thereafter is $135,000.
The net income would be added to opening balance of retained earnings in order to compute the closing retained earnings for the year
Final answer:
The net income for Paradise Travel Service for the year ended May 31, 20Y6, is calculated by subtracting the total expenses ($765,000) from the total revenue ($900,000), which results in a net income of $135,000. This information is summarized in the company's Income Statement.
Explanation:
To prepare the Income Statement for Paradise Travel Service for the year ended May 31, 20Y6, you start by listing the total revenue, followed by the expenses, and then finally compute the net income by subtracting total expenses from total revenue.
Here is how it would look:
Paradise Travel Service
Income Statement
For the Year Ended May 31, 20Y6
Revenues:-
Fees earned: $900,000
Expenses:-
Office expense: $300,000
Miscellaneous expense: $15,000
Wages expense: $450,000
Total expenses: $765,000
Net Income:
$900,000 (Fees Earned) - $765,000 (Total Expenses) = $135,000
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