Answer:
23
Explanation:
Three months ago, Central Supply stock was selling for $51.40 a share. At that time, you purchased five put options on the stock with a strike price of $52 per share and an option price of $0.60 per share. The option expires today when the value of the stock is $42.70 per share. What is your net profit or loss on this investment
Answer:
$4,350
Explanation:
Calculation to determine your net profit or loss on this investment
Net profit = (-$0.60 - $42.70 + $52) × 100 × 5
Net profit= $4,350
Therefore your net profit or loss on this investment is $4,350
Flagstaff Company has budgeted production units of 8,000 for July and 8,200 for August. The direct materials requirement per unit is 3 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 25% of the units budgeted in the following month. There was 6,000 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.20 per ounce, is:____________
A) $28,800.
B) $28,980.
C) $21,600.
D) $28,620.
E) $36,180.
Answer:B) $28,980.
Explanation:
Beginning inventory is 6,000 ounces
Closing inventory = 8,200 × 3 ounces × 25% = 6,150ounces
Budgeted production = 8,000 × 3 ounces=24,000
Direct material to be purchased = Closing inventory + Budgeted production - Beginning inventory= 29,400 ounces
Direct material to be purchased = 6,150ounces +24,000- 6,000 ounces
= 24,150 ounces
Now,For $1.20 per pounce, it would be
= 24,150 ounces × $1.20
= $28,980.
San Antonio Chair Inc. has direct labor cost standard of $14 per direct labor hour and an efficiency standard of 6 hours per chair. The actual results for the period when 30 chairs were built were 130 direct labor hours at an actual cost of $1,560. What is the direct labor cost variance
Answer:
Total direct labor variance= $960 favorable
Explanation:
Giving the following information:
We will separate the direct labor cost variance in rate and quantity variance. To calculate the direct labor rate and quantity variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (30*6 - 130)*14
Direct labor time (efficiency) variance= $700 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (14 - 12)*130
Direct labor rate variance= $260 favorable
Actual rate= 1,560/130= $12
Total direct labor variance= 700 + 260
Total direct labor variance= $960 favorable
a ceo decides to change an accounting method at the end of the current year. the change results in reported profits increasing by 5% but the company's cash flows are not changing. if capital markets are efficient, then the stock price will:
Answer:
The stock price will not be affected by the accounting change.
Explanation:
Since it is assumed that the capital markets are efficient, the stock's market price is expected to reflect all available and relevant information. This implies that all the necessary information is already incorporated into the stock price. The CEO cannot deceive the market through this change in accounting method. Therefore, the stock price will not be undervalued or overvalued. Moreover, the change in accounting method only shifts the timing for reporting income.
explain Distribution and also explain the channel of Distribution
Answer:
A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $250,000. The truck falls into the MACRS three-year class, and it will be sold after three years for $50,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,000. The truck will have no effect on revenues, but it is expected to save the firm $80,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flow for this project be during year 3
Answer:
Please find the complete solution in the attachment file.
Explanation:
Please find the attachment table for the 3 years of cash flow:
You have just made your first $5,837 contribution to your retirement account. Assume you earn a return of 9.8 percent per year and make no additional contributions. What will your account be worth when you retire in 45 years
Materials: Standard Actual Standard: 200 pounds at $3.00 per pound $600 Actual: 220 pounds at $2.85 per pound $627 Direct labor: Standard: 400 hours at $15.00 per hour $6,000 Actual: 368 hours at $16.50 per hour $6,072 What is the journal entry to record labor variances
Answer: Dr Work in Process 6000
Dr Labor Rate Variance 552
Cr Labor Efficiency Variance 480
Cr Payroll 6072
Explanation:
First, we need to know the labor rate variance and the labor efficiency variance which will be:
Labor Rate Variance:
= 368 × (16.50-15)
= 552 U
Labor Efficiency Variance:
= 15 × (368-400)
= 480 F
Then, the journal entry to record labor variances will be:
Dr Work in Process 6000
Dr Labor Rate Variance 552
Cr Labor Efficiency Variance 480
Cr Payroll 6072
Andrews Corporation has income from operations of $240,000. In addition, it received interest income of $24,000 and received dividend income of $29,500 from another corporation. Finally, it paid $11,800 of interest income to its bondholders and paid $45,000 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax
Answer: $54,820.50
Explanation:
Federal income tax = Taxable income * tax rate
Taxable income = Income from operations + Interest income received + Dividend income received - Interest income paid
= 240,000 + 24,000 + (30% * 29,500) - 11,800
= $261,050
Federal income tax = 261,050 * 21%
= $54,820.50
Note: Only 30% of Dividends received are taxable
What are the advantages and disadvantages of keeping the strategic-planning process secret vs. placing the firm’s strategic plan on the corporate website and discussing strategies and planning publically? (2 main advantages and 2 main disadvantages)
Answer:
Answers are given below.
Explanation:
Advantages of keeping the strategic-planning process of a firm secret
1. The flaws or challenges of the firm will not be known to the general public or the firm's competitors.
2. The great ideas in the strategic plan will be known only to members of this firm. No other firm will be able to 'steal and quickly implement' these great ideas.
NOTE: The opposites of these statements are same as the disadvantages of making the strategic-planning process public.
Disadvantages of keeping the strategic-planning process of a firm secret
1. Placing the firm's strategic plan on the corporate website will improve the confidence of clients or customers in them. Clients and customers will view the firm as transparent and will also feel informed about the firm's activities.
2. Discussing strategies and planning publically will fetch the firm some good ideas from the public, and also some new customers or clients.
NOTE: These statements are same as the advantages of making the strategic-planning process public.
The following costs were incurred in May:
Direct materials $39,400
Direct labor $34,000
Manufacturing overhead $21,600
Selling expenses $19,700
Administrative expenses $38,600
Conversion costs during the month totaled: ______________
a. $61,000
b. $153,300
c. $73,400
d. $55,600
Answer:
d. $55,600
Explanation:
Direct Labor = $34,000
Manufacturing Overhead Cost = $21,600
Conversion Cost = Direct Labor + Manufacturing Overhead Cost
Conversion Cost = $34,000 + $21,600
Conversion Cost = $55,600
So, the conversion costs during the month totaled $55,600.
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period.
$77,000; money earns 4.5% compounded monthly for 1-2/3 years
Select one:
a. $719.42
b. $3714.64
c. $758.89
d. $1374.87
b. If you deposit $2000 into a fund paying 4% interest compounded monthly, how much can you withdraw at the end of each month for one year?
a. $177.48
b. $153.36
c. $189.12
d. $170.30
e. none of these
Answer:
Results are below.
Explanation:
a.
Future Value= $77,000
Number of periods= 1*12 + (2/3)*12= 20 months
Interest rate (i)= 0.045/12= 0.00375
To calculate the monthly deposit required, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (77,000*0.00375) / [(1.00375^20) - 1]
Monthly deposit= $3,714.64
b.
Monthly deposit= $2,000
Interest rate= 0.04/12= 0.0033
Number of periods= 12 months
To calculate the monthly withdrawal, we need to use the following formula:
Monthly withdraw= (PV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (2,000*0.0033) / [1 - (1.0033^-12)]
Monthly withdraw= $170.26
In a decreasing-cost industry: Group of answer choices greater demand leads to higher long-run equilibrium prices. there will be no firm entry because the increased supply will reduce the long-run equilibrium price. lower demand leads to higher long-run equilibrium prices. the law of demand does not apply.
Answer:
lower demand leads to higher long-run equilibrium prices
Explanation:
In a decreasing cost industry, as new firms enter the industry due to increase in demand for goods produced by the industry, long run average cost curve declines and this causes the cost of production declines because
Conversely, a decrease in demand for goods produced by the industry, would make firms leave the industry. As a result, the long run average cost curve increases and this leads to a rise in the cost of production
In a declining cost industry, the supply curve is downward sloping. thus, the law of supply does not hold
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
1-What will be the effect of the following on the accounting equation: a-Amer started business with cash 1,80,000$ b-Purchased goods for cash 50,000$ and on credit 20,000$ c-Sold goods for cash 40,000$ costing 24,000$ d-Rent paid 10,000$, rent outstanding 2000$The answer will be : a-Assets 2,06,000 , liabilities 22,000 , capital 184,000 b-assets 204,000 , Liabilities 20,000 , capital 184,000 c-assets 186,000 , Liabilities 22,000 , capital 164,000
Answer:
Purchased goods for cash, 20,000. 4. Purchased goods on credit, 36,000. 5. Paid for rent, 700. 6. Goods costing ₹ 40,000 sold at a profit of 20% for cash ...
Network externalities: Select one: A. exist when the usefulness of a product increases with the number of consumers who use it B. are created when celebrity endorsements of products lead to a surge in the demand for those products C. can only exist when there are economies of scale D. prevent the dominance of a market by one firm.
Answer:
A. )exist when the usefulness of a product increases with the number of consumers who use it
Explanation:
Network externality can be regarded as a change that occur in benefit as well as in surplus, which is been derived by agent from a good when there is a change in number of other agents that consumes this same type of good. Network externality can as well be regarded as "network effect" this effect is one is that is been had by one user of a good/service on the value of the product with respect to each other people.
It should be noted that Network externalities exist when the usefulness of a product increases with the number of consumers who use it
A ________ is a repository of customer information that records all of the contacts a customer has with a firm, and generates a customer profile that is available to appropriate individuals in the firm.
Answer:
CRM system
Explanation:
Oriental Foods Inc. is a multinational food and beverage company. Its product labels focus on being foods that are easy to make in 5 minutes or less for a complete meal that's great for lunch or a snack. In this case, Oriental Foods is using _______.
Answer:
Persuasive labelling
Explanation:
Persuasive labelling is a type of product packaging or appearance that focuses on a promotional theme.
The aim is to increase consumer loyalty and ultimately increase sales.
I'm the given scenario Oriental Foods Inc. uses product labels that informs consumers that the foods are easy to make in 5 minutes or less for a complete meal that's great for lunch or a snack.
This is persuasive labelling
The difference between domestic and international marketing lies in the different concepts of marketing.
Answer:
The difference between domestic and international marketing lies in the different concepts of marketing. An international marketer must deal with at least two levels of uncontrollable uncertainty. ... The foreign policies of a country have a direct effect on a firm's international marketing success
Entries for Notes Receivable, Including Year-End Entries The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 20Y7 Dec. 7. Received from Unitarian Clothing and Bags Co., on account, a $60,000, 60-day, 7% note dated December 7. Dec. 31. Recorded an adjusting entry for accrued interest on the note of December 7. Dec. 31. Recorded the closing entry for interest revenue. 20Y8 Feb. 5. Received payment of note and interest from Unitarian Clothing
Answer:
Interlocking Devices Co.
Journal Entries:
20Y7
Dec. 7.
Debit Notes Receivable (Unitarian Clothing and Bags Co.) $60,000
Credit Accounts Receivable $60,000
To record the receipt of a 60-day, 7% note dated December 7.
Dec. 31.
Debit Interest Receivable (Unitarian Clothing and Bags Co.) $280
Credit Interest Income $280
To accrue interest on notes receivable ($60,000 * 7% * 24/360).
Dec. 31.
Debit Interest Income $280
Credit Income Summary $280
To close the interest income to income summary.
20Y8
Feb. 5.
Debit Interest Receivable (Unitarian Clothing and Bags Co.) $420
Credit Interest Income $420
To accrue interest on notes receivable.
Debit Cash $60,700
Credit Notes Receivable (Unitarian Clothing and Bags Co.) $60,000
Credit Interest Receivable (Unitarian Clothing and Bags Co.) $700
To record the receipt of principal and interests.
Explanation:
a) Data and Analysis:
20Y7
Dec. 7. Notes Receivable (Unitarian Clothing and Bags Co.) $60,000 Accounts Receivable $60,000 on account, a $60,000, 60-day, 7% note dated December 7.
Dec. 31. Interest Receivable (Unitarian Clothing and Bags Co.) $280 Interest Income $280 ($60,000 * 7% * 24/360)
Dec. 31. Interest Income $280 Income Summary $280
20Y8
Feb. 5. Interest Receivable (Unitarian Clothing and Bags Co.) $420 Interest Income $420
Cash $60,700 Notes Receivable (Unitarian Clothing and Bags Co.) $60,000 Interest Receivable (Unitarian Clothing and Bags Co.) $700
1. Adding supervision at the entrance so that employees comply with the rules during shift changes.
2. Generating reports on employees not complying with the rules and asking these employees to take corrective measures.
3. Implementing a new procedure that is easier for the employees to follow and conducting training so that each employee knows the policy and the procedure before it is enacted.
Which approach to bureaucratic control is described in option 1?
a. feedback
b. feedforward.
c. concurrent.
d. market.
e. clan.
Explanation:
A ball is thrown straight up from a rooftop 320 feet high. The formula below describes the ball's height above the ground, h, in feet, t seconds after it was thrown. The ball misses the rooftop on its way down and eventually strikes the ground. How long will it take for the ball to hit the ground? Use this information to provide tick marks with appropriate numbers along the horizontal axis in the figure shown.
h=-16t^2+16t+320
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $396,000 to $684,000 and would decrease the current variable costs of $80 by $20 per unit. The selling price of $120 is not expected to change. Forrester's current break-even sales are $1,188,000 and current break-even units are 9,900. If Forrester purchases this new equipment, the revised contribution margin ratio would be:
Answer:
50%
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin ratio = (price - variable costs) / price
variable cost = 80 - 20 = 60
price = 120
(120 - 60) / 120 = 50%
Compute the following amounts for the income statement. Do not use negative signs in your answers.
Kelly's Kandles Antiques Galore
Sales 133200 40,000
Cost of goods sold
Gross margin 25600
Selling expenses 13,500 4,000
General and Admin.expenses 16,100 1000
Net income before tax 51600
Income tax expense 1,200
Net income 32300
Answer:
Therefore, we have:
Kelly's Kandles Antiques Galore
Sales 133200 40,000
Cost of goods sold 52,000 14,400
Gross margin 81,200 25600
Selling expenses 13,500 4,000
General and Admin. expenses 16,100 1000
Net income before tax 51600 20,600
Income tax expense 19,300 1,200
Net income 32300 19,400
Explanation:
Given:
Kelly's Kandles Antiques Galore
Sales 133200 40,000
Cost of goods sold
Gross margin 25600
Selling expenses 13,500 4,000
General and Admin. expenses 16,100 1000
Net income before tax 51600
Income tax expense 1,200
Net income 32300
For Kelly's Kandles, we have:
Gross margin = Selling expenses + General and Admin. expenses + Net income before tax = 13,500 + 16,100 + 51,600 = 81,200
Cost of goods sold = Sales - Gross margin = 133200 - 81,200 = 52,000
Income tax expense = Net income before tax - Net income = 51600 - 32300 = 19,300
For Antiques Galore, we have:
Cost of goods sold = Sales - Gross margin = 40000 - 25600 = 14,400
Net income before tax = Gross margin - Selling expenses - General and Admin. Expenses = 25,600 - 4,000 - 1,000 = 20,600
Income tax expense = Net income before tax - Net income = 20,600 - 1,200 = 19,400
Therefore, we have:
Kelly's Kandles Antiques Galore
Sales 133200 40,000
Cost of goods sold 52,000 14,400
Gross margin 81,200 25600
Selling expenses 13,500 4,000
General and Admin. expenses 16,100 1000
Net income before tax 51600 20,600
Income tax expense 19,300 1,200
Net income 32300 19,400
A TV manufacturer offers warranties on its new TV sales. During December 2004, TV sales totaled $205,000. Past experience shows that warranty expense averages about 3% of the annual sales. What adjusting journal entry should be recorded on December 31, 2004 to account for the warranty expense
Answer:
Date Account Title Debit Credit
Dec 31, 2004 Warranty expense $6,150
Warranty Liability $6,150
Explanation:
First calculate the warranty expense:
= TV sales total * Warranty expense averages
= 205,000 * 3%
= $6,150
This will be credited to the Warranty liability account to reflect that the company potentially owes $6,150 in warranty expenses to people who purchased TVs.
The government sector balance is equal to net taxes ________ government expenditure on goods and services. If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit.
Answer:
less
positive
negative
Explanation:
The government sector balance is income from taxes less government spending
Government sector deficit occurs when government spending exceeds income of the government.
When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing
When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors
Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
Salaries Expense $ 69,000 Operating Expenses $ 62,000
Common Stock 100,000 Cash Flow from Investing Activities 78,400
Notes Receivable 24,000 Prepaid Rent 12,500
(short term)
Allowance for Doubtful Accounts 7,800 Land 40,000
Uncollectible Accounts Expense 8,100 Cash 48,100
Supplies 1,200 Inventory 98,300
Interest Revenue 5,400 Accounts Payable 46,000
Sales Revenue 320,000 Salaries Payable 12,000
Dividends 3,500 Cost of Goods Sold 148,000
Interest Receivable (short term) 1,500 Accounts Receivable 56,000
Beginning Retained Earnings 81,000
Answer:
Sherman Equipment Co.
a) Sherman Equipment Co.
Multistep Income Statement
For the year ended December 31, 2016
Sales Revenue $320,000
Cost of Goods Sold 148,000
Gross profit $172,000
Operating expenses:
Salaries Expense $ 69,000
Operating Expenses 62,000
Uncollectible Accounts Expense 8,100
Total operating expenses $139,100
Operating income $32,900
Interest Revenue 5,400
Net income $38,300
Balance Sheet
As of December 31, 2016
Assets
Current Assets:
Cash $48,100
Interest Receivable (short term) 1,500
Accounts Receivable 56,000
Allowance for Doubtful Accounts (7,800) 48,200
Notes Receivable (short term) 24,000
Supplies 1,200
Inventory 98,300
Prepaid Rent 12,500
Total current assets $233,800
Long-term assets:
Land 40,000
Total assets $273,800
Liabilities and Equity:
Current liabilities:
Accounts Payable $46,000
Salaries Payable 12,000
Total current liabilities $58,000
Equity:
Common Stock $100,000
Ending Retained Earnings 115,800
Total equity $215,800
Total liabilities and equity $273,800
Explanation:
a) Data and Calculations:
Cash 48,100
Interest Receivable (short term) 1,500
Accounts Receivable 56,000
Notes Receivable (short term) 24,000
Supplies 1,200
Inventory 98,300
Prepaid Rent 12,500
Land 40,000
Allowance for Doubtful Accounts 7,800
Accounts Payable 46,000
Salaries Payable 12,000
Common Stock 100,000
Beginning Retained Earnings 81,000
Dividends 3,500
Interest Revenue 5,400
Sales Revenue 320,000
Cost of Goods Sold 148,000
Salaries Expense $ 69,000
Operating Expenses $ 62,000
Uncollectible Accounts Expense 8,100
Cash Flow from Investing Activities 78,400
Beginning Retained Earnings 81,000
Net income 38,300
Dividends (3,500)
Ending Retained Earnings 115,800
All of the following are properties of typical indifference curves except Select one: a. indifference curves are bowed outward. b. higher indifference curves are preferred to lower ones. c. indifference curves do not cross. d. indifference curves are downward sloping.
Answer:
A
Explanation:
An indifference curve is a graph that shows the two combinations of goods for which an individual is indifferent in its consumption.
Points on an indifference curve represents various combination of goods to which an individual is indifferent to
higher indifference curve represents higher level of utility
Sleep Cheap is a private camping ground near the Boulder Peak Recreation Area. It has compiled the following financial information as of December 31, 2022.
Services revenues (from camping fees) $132,000
Dividends $8,000
Sales revenues (from general store) 25,000
Notes payable 50,000
Accounts payable 13,000
Administrative expenses 133,000
Cash 13,500
Supplies 2,500
Equipment 108,000
Common stock 40,000
Retained earnings (1/1/2022) 5,000
Required:
a. Determine net income from Sleep Cheap for 2022.
b. Prepare a retained earnings statement and a balance sheet for Sleep Cheap as of December 31, 2022.
Answer and Explanation:
a. The net income should be
Service Revenue $132,000
Sales Revenue $25,000
Total revenues $157,000
Less: Total expense -$133,000
Net income $24,000
b.
The preparation of the retained earning statement is presented below:
Retained Earnings Statement
For the year ended December 31,2022
Retained Earnings, January 1 $5,000
Add: Net income $24,000
Less: Dividends -$8,000
Retained Earnings, December 31 $21,000
The preparation of the balance sheet is presented below:
Balance Sheet
December 31,2022
Assets
Cash $13,500
Supplies $2,500
Equipment $108,000
Total Assets $124,000
Liabilities and Stockholders' Equity
Liabilities
Accounts Payable $13,000
Notes Payable $50,000
Total Liabilities $63,000
Stockholders' Equity
Common Stock $40,000
Retained Earnings $21,000
Total Stockholders' Equity $61,000
Total Liabilities and Stockholders' Equity $124,000
Darius Miller is seeking to accumulate $50,000 in six years to invest in a real estate venture. He can earn 6.35 percent annual interest with monthly compounding in private investment. How much will he have to invest today to reach his goal? (Round to the nearest dollar.)
Answer:
$34193
Explanation:
Given :
Final amount, A = $50000
Interest, rate, r = 6.35% compounded monthly
Period, t = 6 years
n = number of compounding times per period, monthly = 12 times per period
Amount to be invested, P = principal
Using the relation :
A = P(1 + r/n)^n*t
50,000 = P(1 + 0.0635/12)^(12*6)
50000 = P(1 + 0.0052916)^72
50000 = P(1.0052916)^72
50000 = 1.4622779P
P = 50000 / 1.4622779
P = $34193.226
Amount to be invested today in other to have compounded $50000 in 6 years is $34193.226
To the nearest $ = $34193
If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:_________
A. $2,500 billion
B. $3000 billion
C. $4,000 billion
D. $5,000 billion
Answer:
D. $5,000 billion
Explanation:
quizlet
In Investment Multiplier concept If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by $5,000 billion. Option D is Correct.
What is Investment Multiplier?The idea that every increase in public or private investment spending has a greater than proportionately favorable influence on aggregate income and the overall economy is known as the "investment multiplier." It is based on John Maynard Keynes' economic theories.
The investment multiplier is the ratio of change in Y to changes in I where Y = investment and I = investment. It can be derived from the equilibrium equation (Y = C + I + G) and the consumption equation (C = a + bY).
Thus with rise in multiplier by $450 and then income will elevated to $5000 Billion.
To know more about Investment Multiplier refer:
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Exercise 6-1B Calculate cost of goods sold (LO6-2) A company begins the year with inventory of $53,000 and ends the year with inventory of $43,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 208,000 Purchase on May 6 128,000 Purchase on September 8 158,000 Purchase on December 4 408,000 Required: Calculate cost of goods sold for the year.
Answer: $912,000
Explanation:
The cost of goods sold for the year will be:
Beginning inventory = $53,000
Add: Purchases = ($208,000 + $128,000 + $158,000 + $408,000) = $902,000
Cost of goods available for sale = $955,000
Less: Ending inventory = ($43,000)
Cost of goods sold = $912,000
