Answer:
Mr. and Mrs. Hennesy
They should deposit $337,928.65 now.
Explanation:
a) Data and Calculations:
Amount required per year after retirement = $40,000
Period of years during retirement = 20 years
Total amount required for 20 years = $800,000 ($40,000 * 20)
Interest rate = 9%
N (# of periods) 10
I/Y (Interest per year) 9
PMT (Periodic Payment) 0
FV (Future Value) 800000
Results
PV = $337,928.65
Total Interest $462,071.35
Rajiv loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Rajiv a . True or False: The government can solve the problem caused by people like Rajiv by sponsoring the show and paying for it with tax revenue collected from everyone. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False
Answer:
free rider
true
true
Explanation:
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Downtown abbey can be classified as a public good, if it is made a private good, the problem would be solved
A public good is a good that is non excludable and non rivalrous.
A private good is a good that is excludable and rivalrous. They are usually exchanged in the market by private sector businesses. It
On January 1, the company purchased equipment that cost $10,000. The equipment is expected to be worth about (or has a salvage value of) $1,000 at the end of its useful life in five years. The company uses straight-line depreciation. It has not recorded any adjustments relating to this equipment during the current year. Complete the necessary December 31 journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
View transaction list
Note: Enter debits before credits.
Date General Journal Debit Credit
Dec. 31 es Depreciation expense
Accumulated depreciation
Record entry Clear entry View general journal
Answer:
See below
Explanation:
10000-1000=9000 to be depreciated
9000/5=1800 annual depreciation
journal entry:
depreciation expense. 1800 (debit)
Accumulated depreciation. 1800 (credit)
to record annual depreciation
"On January 1, the company purchased equipment that cost $10,000. ".the necessary December 31 journal entry is
1800 is the cost of depreciation (debit)
Depreciation that has accumulated. 1800 (credit)
What is a journal entry?Generally, a journal entry is simply defined as a journal used to write a commercial business in the accounting records of a company.
In conclusion, journal entries show business transactions.
Read more about journal entry
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The current economy is strong and many people are feeling confident about their future and ability to pay off debt. Because of this they are taking on more bank loans for things like new cars, renovating their homes, or buying new homes. Using the four step process with this type of market, what will banks most likely do with their loans
Answer:
They would increase the quantity supplied of loans and increase the interest rate
Explanation:
Monetary policy
This is simply refered to as alterations or changes in the interest rate to alter or influence the level of aggregate demand in an economy that is the demand side policy.
The central banks are known to be regulators of commercial banks and bankers to governments. The interest rate is the price of money. They manages interest rates to influence the money supply. They set the base rate of interest and the base rate influences all other interest rates that commercial banks use (i.e. savings rate, mortgage rate, car loan rate
What happens in the foreign exchange market when a surplus of dollars exists? When there is a surplus of dollars in the foreign exchange market, _______.
Answer:
prices will decrease
Explanation:
The forex market is balanced when there exists when the quantity supply of any currency is equal to the quantity demanded. If the market has a surplus or shortages the rates will adjust accordingly.Bailey Corporation purchased a building on December 31, 2003 for $2,500,000. The building was placed in service on January 1, 2004 and was assumed to have an estimated useful life of 50 years and a zero salvage value. Bailey uses the straight line method for computing depreciation, and all applicable depreciation has been recorded through December 31, 2017. During 2018, an examination of the building by an engineering firm revealed that the remaining estimated useful life is now 15 years. What amount should Bailey record for building depreciation expense in 2018
Answer: $120,000
Explanation:
The annual depreciation will be calculated as:
= Cost/Estimated Life
= 2500000/50
= 50000
The depreciation up to 2017 will be:
= 50000 × 14
= 700000
The book value at the end of 2017 will be:
= Cost - Depreciation up to 2017
= 2500000 - 700000
= 1800000
Then, the annual depreciation with the revised life will be:
= Book Value at the End of 2017/Remaining Life
= 1800000/15
= 120000
Therefore, the amount of depreciation for 2018 will be $120000
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Standard Quantity or Hours 6.80 pounds 0.50 hours Standard Price or Rate $ 3.00 per pound $11.00 per hour Direct materials Direct labor $20.40 $ 5.50 During the most recent month, the following activity was recorded:
a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.)
1. Materials price variance
Materials quantity variance
2. Labor rate variance
Labor efficiency variance
Answer:
Huron Company
1. Materials price variance = $6,870 F
Materials quantity variance = $7,500 U
2. Labor rate variance = $($2,800) U
Labor efficiency variance = $1,100 F
Explanation:
a) Data and Calculations:
Standard Quantity 6.80 pounds
Standard Price $ 3.00 per pound
Direct materials $20.40
Standard Rate $11.00 per hour
Standard hours 0.50 hours
Direct labor $ 5.50
a. Purchase of 22,900 pounds of materials at $2.70
b. Production units = 3,000
Actual quantity used 7.63 pounds (22,900/3,000)
Actual Price = $2.70
Actual material cost per unit = $20.61
c. Direct labor time = 1,400 hours at a total labor cost of $18,200
Actual rate per hour = $13 per hour ($18,200/1,400)
Actual hours = 0.47 hours
Actual direct labor cost per unit = $6.07
1. Materials price variance for the month = (Standard Price - Actual Price) * Actual Quantity of materials
= ($3 - $2.70) * 22,900
= $6,870 F
Quantity variance for the month = (Standard Qty - Actual Qty) * Standard Price
= (20,400 - 22,900) * $3
= -$7,500 U
2. Labor rate variance for the month = (Standard rate - Actual rate) * Actual labor hours
= ($11.00 - $13.00) * 1,400
= -$2,800 U
Direct labor Efficiency variance for the month = (Standard hours - Actual hours) * Standard Rate
= (1,500 - 1,400) * $11
= $1,100
Elbert uses FedEx in a scheme to defraud Global Sales Company by obtaining merchandise to which he is not entitled. Found guilty of mail fraud, Elbert can be punished by
Answer: None of the choices.
Explanation:
The options to the question are:
a. imprisonment for up to fifty years.
b. imprisonment for up to twenty years and/or fines.
c. fines up to $5 million.
d. none of the choices
Based on the questions asked, the options provided aren't correct. It should be noted that Elbert can be punished by imprisonment in this case for a period of your to about five years as well as a fine of up to $1000.
MC Qu. 163 Flagstaff Company has budgeted production... Flagstaff Company has budgeted production units for July of 7,500 units. Variable factory overhead is $1.3 per unit. Budgeted fixed factory overhead is $17,000, which includes $2,600 of factory equipment depreciation. Compute the total budgeted overhead to be reported on the factory overhead budget for the month.
Answer:
$26,750
Explanation:
Computation for the total budgeted overhead to be reported on the factory overhead budget for the month.
Using this formula
Total budgeted overhead=Variable factory overhead +Fixed factory overhead X
Let plug in the formula
Total budgeted overhead=($1.3*7,500 units)+$17,000X
Total budgeted overhead=$9,750+$17,000X
Total budgeted overhead=$26,750
Therefore the total budgeted overhead to be reported on the factory overhead budget for the month is $26,750
Under absorption costing, which of the following costs would not be included in finished goods inventory? a.overtime wages paid to factory workers b.the salaries for salespeople c.hourly wages of assembly worker d.straight-line depreciation on factory equipment
Answer:
b.the salaries for salespeople
Explanation:
Absorption costing is the method of costing that tries to itemise all factors that are used in manufacturing a product. These include direct materials, direct labour, and overhead.
However there is no provision for items under contributing margin (that is costs that are derived from sales revenue). Such costs can include salaries of sales people that are taken out of sales revenue.
Other items such as overtime wages paid to factory workers, hourly wages of assembly worker, and straight-line depreciation on factory equipment are all included in absorption costing
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 195,000 in October, 203,500 in November, and 200,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $152,000 per month. Compute the total budgeted overhead for October.
Answer:
the budgeted overhead for October is $288,500
Explanation:
The computation of the budgeted overhead for October is given below:
The budgeted overhead is
= fixed overhead + variable overhead
= $152,000 + 195,000 units × $0.70
= $152,000 + $136,500
= $288,500
Hence, the budgeted overhead for October is $288,500
Therefore the same is to be considered
In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is (a) $349, (b) $389, and (c) $309? Also, (d) if Washburn achieves the sales target of 2,000 units at the $349 retail price, what will its profit be?
Answer:
a. 186 units
b. 156 units
c. 232 units
d. $370,000
Explanation:
a. Calculation to determine the break-even point for the new line of guitars if the retail price is $349
Using this formula
Break-even point quantity = Fixed cost / Unit price – Unit variable cost
Let plug in the formula
Break-even point quantity = ($14,000 + $4,000 + $20,000) / $349 – ($25 + $120)
Break-even point quantity= $38,000 / $349 - $145
Break-even point quantity= $38,000 / $204
Break-even point quantity= 186.27
Break-even point quantity= 186 units
Therefore the break-even point for the new line of guitars if the retail price is $349 will be 186 units
b. Calculation to determine the break-even point for the new line of guitars if the retail price is $389
Break-even point quantity = ($14,000 + $4,000 + $20,000) / $389 – ($25 + $120)
Break-even point quantity= $38,000 / $389 - $145
Break-even point quantity= $38,000 / $244= 155.74
Break-even point quantity = 156 units (Approximately)
Therefore Therefore the break-even point for the new line of guitars if the retail price is $389 will be 156 units
c. Calculation to determine the break-even point for the new line of guitars if the retail price is $309
Break-even point quantity=($14,000+$4,000+$20,000)/$309 – ($25 + $120)
Break-even point quantity= $38,000 / $309 - $145
Break-even point quantity= $38,000 / $164
Break-even point quantity= 231.71
Break-even point quantity = 232 units (Approximately)
Therefore the break-even point for the new line of guitars if the retail price is $309 will be 232 units
d. Calculation to determine what will its profit be
if Washburn achieves the sales target of 2,000 units at the $349 retail price
Using this formula
Profit = Total revenue – Total cost
Profit= (P x Q) – [FC + (UVC x Q)]
Let plug in the formula
Profit= ($349 x 2000) – [$38,000 + ($145 x 2,000)]
Profit= $698,000 – $328,000
Profit= $370,000
Therefore the profit will be $370,000
At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Answer:
Results are below.
Explanation:
Giving the following information:
The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Number of units= 6,400
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption method:
Unit product cost= direct material + direct labor + total unitary overhead
Unit product cost= 75 + 35 + 15 + 12
Unit product cost= $137
Total ending inventory cost= 137*6,400
Total ending inventory cost= $876,800
Variable costing method:
Unit product cost= direct material + direct labor + variable overhead
Unit product cost= 75 + 35 + 12
Unit product cost= $122
Total ending inventory cost= 122*6,400
Total ending inventory cost= $780,800
Is increasing the entrepreneurial orientation of a firm always a good thing?
Answer:
Not always. It's a good thing to develop new business opportunities, but not if it leads to too many inefficiencies connected to resources and learning curves.
Mary is currently buying apples and oranges such that the last unit of apples has 30 units of utility and the last unit of oranges has 40 units of utility. She has allocated her entire budget. If the price of an apple is 10 cents and the price of an orange is 20 cents, to maximize her utility, what should Mary do
Answer:
Buy more apples and fewer oranges
Explanation:
Utility is defined as the level of enjoyment or satisfaction that a person gets from consumption of a good or service.
Consumers logically try to maximise utility.
In the given instance we need to get the level of utility for apples and oranges to see which has more utility per unit cash spent.
For apples utility per cash spent = 30 units of utility ÷ 10 cents= 3 utility per cent
For oranges utility per cash spent = 40 units of utility ÷ 20 cents = 2 utility per cent
As apples have a higher utility per cent spent, it will be best Mary buys more apples and fewer oranges
Lila Harrison is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:
Answer:
Debit to salary expense for $400.00
Explanation:
In the case when a company is preparing the profit and loss statement so they first have the gross salary
The net salary should be
= Gross salary - deductions - taxes
Now in order to record the gross pay we have to debit to the salary expense for $400 as it increased the expense and expense contains the normal debit balance
Jarrod receives a scholarship of $28,000 from East State University to be used to pursue a bachelor's degree. He spends $16,800 on tuition, $1,400 on books and supplies, $5,600 for room and board, and $4,200 for personal expenses. Jarrod may exclude _______ from his gross income.
Answer:
$18,200
Explanation:
Calculation to determine what Jarrod may exclude from his gross income.
Using this formula
Gross income=Tuition+Books and supplies
Let plug in the formula
Gross income= $16,800 + $1,400
Gross income=$18,200
Therefore Jarrod may exclude $18,200 from his gross income.
Staind, Inc., has 11 percent coupon bonds on the market that have 12 years left to maturity. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price
Answer: $1,000
Explanation:
When the coupon rate of a bond is the same as its yield, the price of the bond will be the face value of the bond regardless of the period of compounding or the number of years left to maturity.
As the face value of most bonds is usually $1,000, we can surmise that the price of Staind bonds is $1,000 because its coupon rate of 11% is the same as its yield.
All companies try to have happy workers as they know the relationship between satisfaction and performance. This is why they are focusing on motivating their employees in a variety of ways. From what you have learned please suggest what companies should do to have a working place that could effectively motivate their employees.
Answer:
1. Reward and incentivize workers
2. Set smaller weekly or biweekly goals for them.
3. Foster trust between the managers and workers.
Explanation:
In order to have workers who are motivated to put in their best in the company, employers should take certain positive actions. These actions include;
1. Reward and incentivize workers: Rewards which could be monetary, as word of praise, or formal recognition can move workers to give their best. Humans are motivated when their efforts are recognized and praised. Therefore, incentivizing workers is a good way to get them motivated.
2. Set smaller weekly or biweekly goals for them: Setting humongous goals and targets can scare off and pressurize the workers. But when these large goals are broken into smaller goals, they can then be motivated to reach those goals.
3. Foster trust between the managers and workers: When workers have a sense of belonging and know that they are trusted, they will be in a more relaxed frame to achieve their goals. Unwarranted allegations and suspicions can put the workers on edge.
Production Budget
Pasadena Candle Inc. projected sales of 800,000 candles for the year. The estimated January 1 inventory is 35,000 units, and the desired December 31 inventory is 20,000 units.
Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Total units available
Total units to be produced
Answer:
Pasadena Candle Inc.
Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Total units available:
Project sales 800,000
Desired ending inventory 20,000 820,000
Beginning inventory 35,000
Total units to be produced 785,000
Explanation:
a) Data and Calculations:
Projected sales of candles for the year = 800,000 candles
January 1 inventory = 35,000 units
Desired December 31 inventory = 20,000 units
Units available for sale = 820,000 (800,000 + 20,000)
Production for the year = 785,000 (820,000 - 35,000)
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price
Answer:
$84.18
Explanation:
The current share price can be determined using the two-stage dividend growth model.
In the two-stage dividend growth model, the first stage is characterised by high growth rate. In the second stage, the high growth rate falls to a steady or normal growth rate
dividend in Y1 = 2.05 x 1.24 = 2.54
dividend in Y2 = 2.05 x 1.24^2 = 3.15
dividend in Y3 = 2.05 x 1.24^3 = 3.91
Y3 = (3.91 X 1.07) / (0.11 - 0.07) = 104.59
Find the present value of these cash flows
(2.54 / 1.11) + (3.15 / 1.11²) + (3.91 / 1.11³) + (104.59/1.11³) = 84.18
McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2019, 100,000 shares were sold to the company's founders. However, on October 15, 2019, McKean repurchased 20,000 shares to settle a dispute among the founders. At this date, how many shares were issued and outstanding, respectively?
Answer:
100,000 shares and 80,000 shares
Explanation:
Calculation to determine how many shares were issued and outstanding, respectively
The shares that were issued will be 100,000 shares that were sold to the company's founders while the shares outstanding will be 80,000 shares Calculated as :
Shares outstanding=Shares issued -Shares repurchased
Shares outstanding=100,000 shares-80,000 shares
Shares outstanding =80,000 shares
Therefore the Number of shares that were issued and outstanding, respectively are:100,000 shares and 80,000 shares
If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________.
A) the nominal interest
B) the real interest rate
C) aggregate output
D) all of the above
Answer:
B) the real interest rate
You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifference curves are plotted with tea on the vertical axis. If you presently have two cups of tea and one scone, what this the marginal rate of substitution (MRS) at this point
Answer:
Infinity
Explanation:
In the case when the tea and scones are considered to be the perfect complements also you give preference one cup of tea over the one scone
Plus the indifferent curve with tea should be plotted on the vertical axis
So in the case when there is 2 cups of tea with one scone so at this point, the MRS should be at infinity as the indifference curve should be in downward sloping because we presume that there is preferences done at monotonicity
Denny works for Engineers, P.A. While working on an Engineers project, Denny is injured. Under state workers' compensation laws, he will be compensated only if the injury was:________.
a. incidental
b. material
c. accidental
d. intentional
Answer:
c. Accidental
Explanation:
Since in the given situation it is mentioned that denny worked for enginners and at the time of working on an engineer project denny is injured so as per the state worker compensation loan he would be compensated only when the injury is to be considered as an accidental as the compensation is only to be provided when there is an accidental injuries
Therefore the option c is correct
Define each of the following investment rules and discuss any potential shortcomings of each. In your definition, state the criterion for accepting or rejecting independent projects under each rule. a. Payback period. b. Average accounting return. c. Internal rate of return. d. Profitability index. e. Net present value
internal rate of return
Geraldo is a customer care executive at a telecommunications service provider. He receives a complaint from a customer about an unnecessary $20 charge on his phone bill. If the company follows the customer service management process, Geraldo is most likely to _____.
Answer:
Provide a quick response to the customer using customer care software.
Explanation:
Software Programs
This is simply regarded as a service tool or software distribution model where software applications are hosted by a vendor or service provider and made available to customers over a network that is often the internet.
There are some of the software that is available. They includes the following:
Inventory managementReceivingStore Replenishment POS etc.Marketing Channel
This is used by individuals and firms involved in making a product or service available for use or consumption by consumers or industrial users.
Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow: Division Osaka Yokohama Sales $ 9,400,000 $ 24,000,000 Net operating income $ 752,000 $ 2,400,000 Average operating assets $ 2,350,000 $ 8,000,000 Required: 1. For each division, compute the return on investment (ROI) in terms of margin and turnover. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 18%. Compute the residual income for each division.
Answer:
1. Osaka ROI 32 %
Yokohoma ROI 30%
2.Osaka Residual income $329,000
Yokohoma Residual income $960,000
Explanation:
1. Computation for return on investment (ROI) in terms of margin and turnover.
Using this formula
ROI = Net operating income/Average operating assets
Let plug in the morning
Osaka ROI = 752,000/2,350,000
Osaka ROI =32 %
Yokohoma ROI = 2,400,000/$ 8,000,000
Yokohoma ROI =30%
Therefore for return on investment (ROI) in terms of margin and turnover is :
Osaka ROI 32 %
Yokohoma ROI 30%
2. Computation for the residual income for each division.
Using this formula
Residual income = Net operating income - Required return
Let plug in the formula
Osaka Residual income= 752,000 - (2,350,000*18%)
Osaka Residual income= 752,000-423,000
Osaka Residual income = $329,000
Yokohoma Residual income = 2,400,000 - ($8,000,000*18%)
Yokohoma Residual income = 2,400,000-1,440,000
Yokohoma Residual income= $960,000
Therefore the residual income for each division is:
Osaka Residual income $329,000
Yokohoma Residual income $960,000
) Calculate the CPI for each year. Show your work in the chart and circle the CPI for each year. b) Calculate the inflation rate for each year compared to the year prior. Show your work in the chart and circle the inflation rate for each year. c) Based on your completed chart, what is the percentage decrease or increase in 2022 prices compared to 2020
Answer:
CPI in 2019 = 80
CPI in 2020 = 100
CPI in 2021 =120
CPI in 2022 =180
Inflation rate in 2019 = -
Inflation rate in 2020 = 25%
Inflation rate in 2021 = 20%
Inflation rate in 2022 = 50%
There was a 25% increase in price from year 2020 to 2022
Explanation:
Please find attached an image of the table used in answering this question
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
CPI in 2019 = 16/20 x 100 = 80
CPI in 2020 = 20 / 20 x 100 = 100
CPI in 2021 = 24 / 20 x 100 = 120
CPI in 2022 = 36 / 20 x 100 = 180
Inflation is a persistent rise in the general price levels
Inflation rate = (change in prices / previous years price) x 100
Inflation rate in 2020 = [(20 - 16) / 16] x 100 = 25%
Inflation rate in 2021 = [(24 - 20) / 20] x 100 = 20%
Inflation rate in 2022 = [(36 - 24) / 24] x 100 = 50%
Bramble Corp.’s cost of goods sold is $280000 variable and $170000 fixed. The company’s selling and administrative expenses are $160000 variable and $220000 fixed. If the company’s sales is $1080000, what is its net income?
Answer:
the net income is $250,000
Explanation:
The computation of the net income is given below:
= Sales - variable cost of goods sold - fixed cost of goods sold - variable selling & admin expense - fixed selling & admin expense
= $1,080,000 - $280,000 - $170,000 - $160,000 - $220,000
= $250,000
Hence, the net income is $250,000
The above formula should be applied for the same
A sporting equipment store expects to purchase $8,200 of ski boots in October. The store had $2,800 of ski boots in merchandise inventory at the beginning of October, and expects to have $1,800 of ski boots in merchandise inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October?
a) $7,000.
b) $9,000.
c) $8,000.
d) $12,000.
e) $11,000.
Answer:
$9,200
Explanation:
Calculation to determine the budgeted cost of goods sold for October
Using this formula
Budgeted cost of goods sold for October =Cost of ski boots + Inventory at the beginning - Inventory at the end
Let plug in the formula
Budgeted cost of goods sold for October = $2800 + $8200 - $1800
Budgeted cost of goods sold for October= $9200
Therefore the budgeted cost of goods sold for October is $9,200
