Answer:
FALSE
Explanation:
The text defines management as “The art of getting things done through the efforts of other people.” Put yourself in the shoes of a manager and explain what this definition means in the context of a company operation. You can use the example of any company (large or small) and any good or service.
The correct answer to this open question is the following.
Although you did not attach the text, we can comment on the quote.
"The art of getting things done through the efforts of other people.”
This quote means that good managers motivate and positively influence employees to get the job done. Managers coordinate and monitor the work of the employees. Managers first plan, then establish the goals to be accomplished and then direct the work effort to be productive.
If I were a manager of a company, I definitely try to emulate what the quote says. For instance, the manager of a recreational and sports club. I would do everything to establish clear, specific, and attainable goals so my employees could understand them. Then I describe the role and responsibilities of each employee so they can do their job without any doubts. And of course, I would delegate so they can do their jobs happily. No unnescesary intromissions. The objective would be to offer the best service possible to our clients.
Jill has recently begun working at a local florist. In addition to creating floral arrangements, Jill spends a good deal of her time talking to customers and ringing up sales. Over time, she identifies a weakness in the procedures for ringing up voids. No approval is neces- sary to void a sale, and the void slip collects very little information about the sale. After Jill has completed a sale and the customer has left, she voids the sale and pockets the cash that was just received. The floral shop doesn’t miss the lost inventory because it has a high inventory turnover ratio and high losses due to flowers losing their bloom.
1. What type of fraud is Jill committing?
2. What could the florist do to prevent this type of fraud from occurring?
Answer: See explanation
Explanation:
1. What type of fraud is Jill committing?
The fraud that Jill is committing is known as theft of cash through fraudulent disbursements. In this case, Jill is using a register disbursement scheme which involves false voids of customer sales. During the time of sale, a record is made and another record is then created again which is used for the false void.
2. What could the florist do to prevent this type of fraud from occurring?
To prevent this fraud, a receipt should be attached and the florist should make sure that every vital information about all sales are collected such as customers name, time, amount of goods bought, signature and f customers etc
Patty’s Pies has sells 900 pies in August for $20.00 each. At the end of August Patty advertises her pies in the local Valupak which will mail to 25,000 local houses. Statistics show that approximately .5% (one half of one percent) of Valupak recipients result in a sale. Based upon this information, compute the amount of sales Patty would budget for September.
Answer: $20,500
Explanation:
The amount of sales that Patty would budget for September will be calculated thus:
The expected increase in sales unit will be calculated as:
= 0.5% × 25,000
= 125
Therefore, the unit of sale in September will then be:
= 900 pies + 125 pies
= 1025 pies
Then, the total amount of sale will be:
= 1,025 × $20
= $20,500
Rotweiler Obedience School’s December 31, 2009, balance sheet showed net fixed assets of $1,271,006, and the December 31, 2010, balance sheet showed net fixed assets of $2,108,650. The company’s 2010 income statement showed a depreciation expense of $171,813. What was Rotweiler’s net capital spending for 2010?
Answer:
The answer is "[tex]\$1,009,457[/tex]".
Explanation:
The net fixed asset starting value [tex]= \$1,271,006[/tex]
The net fixed asset ending value[tex]= \$2,108,650[/tex]
The expense of the depreciation [tex]= \$171,813[/tex]
[tex]\text{Net Capital Spending = The net fixed asset ending value} - \text{The net fixed asset starting value} + \text{The expense of the depreciation} \\\\[/tex]
[tex]= \$2,108,650 - \$1,271,006 + \$171,813\\\\= \$1,009,457[/tex]
JOHNSON HAS THE FOLLOWING DATA REGARDING AN EXCHANGE OF LAND: (ASSUME THE EXCHANGES LACKS COMMERCIAL SUBSTANCE) OLD LAND FMV 580,000 OLD LAND COST 430,000 NEW LAND FMV 493,000 CASH RECEIVED 87,000 REQUIRED: HOW MUCH GAIN WILL JOHNSON RECOGNIZE ON THE EXCHANGE
Answer: No gain or loss will be recognized since the exchange lacks commercial substance.
Explanation:
Based on the information given, the amount of gain that John will recognize on the exchange will be nothing.
In this case, we are given the information that the exchange lacks commercial substance. Commercial substance refers to the transaction which brings about the change in the cash flow of the entity.
In this case, since there isn't ant commercial substance involved, then there will be no gain or loss recognized.
The firm you manage faces the following costs: Quantity Total Cost 0 $4 1 $6 2 $7 3 $10 4 $15 5 $21 What is the average fixed cost of the 2nd unit produced
Answer:
The average fixed cost of the 2nd unit produced is:
= $2.
Explanation:
a) Data and Calculations:
Quantity Total Cost Fixed Cost Average Fixed Cost
0 $4 $4 $4
1 $6 $4 $4
2 $7 $4 $2
3 $10 $4 $1.3
4 $15 $4 $1
5 $21 $4 $0.8
b) The average fixed cost (AFC) is the total fixed cost divided by the quantity of production within the relevant range. It does not change when there a change in the number of goods and services produced by a company. Average fixed cost can be calculated from the salaries of permanent employees, the mortgage payment on machinery and plant, and rent.
.
Imagine that you are the project manager for this initiative in the
North West Province. Outline measures you would take to ensure
that this project succeeds and is sustainable.
Answer:
Stakeholder participation,
Explanation:
That help a lot in different things like it give support from different ways
Also about the money sharing well help more to get more money
so yah I think that so
Pujols Lumber Yard has a current accounts receivable balance of $365,061. Credit sales for the year just ended were $6,842,109. How long did it take on average for credit customers to pay off their accounts during the past year? (Enter the answer with 2 decimal places (e.g. 23.45)
Answer:
19.48 days
Explanation:
Calculation to determine How long did it take on average for credit customers to pay off their accounts during the past year
First step is to determine the receivables turnover for the company using this formula
Receivables turnover = Credit sales / Receivables
Let plug in the formula
Receivables turnover = $6,842,109 / $365,061
Receivables turnover = 18.74 times
Now let determine l the day’s sales in receivables using this formula
Days’ sales in receivables = 365 days / Receivables turnover
Let plug in the formula
Days’ sales in receivables = 365 days / 18.74
Days’ sales in receivables = 19.48 days
Therefore How long did it take on average for credit customers to pay off their accounts during the past year is 19.48 days
TB Problem Qu. 15-131 (Algo) Clayborn Corporation's net cash provided by operating activities... Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income taxes were $46,900; its capital expenditures were $96,300; and its cash dividends were $30,200. Required: Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)
Answer:
See below
Explanation:
Clayborn Corporation
Determination of free cash flow
Free cash flow = Net cash provided by operating activities - Capital expenditure - Cash dividends paid
Free cash flow = $118,800 - $96,300 - $30,200
Free cash flow = -$7,700
Therefore, Clayborn corporation's free cash flow is -$7,700
Purple Hedgehog Forestry Inc. is expected to generate $200,000,000 in net income over the next year. Purple Hedgehog Forestry has forecasted a capital budget of $85,000,000, and it wishes to maintain its current capital structure of 70% debt and 30% equity.
Required:
What will Purple Hedgehog Forestry's dividend payout ratio be if it follows a residual dividend policy?
Answer:
87.25%
Explanation:l
Capital Budget = $85,000,000
Financed through Equity = $25,500,000 (30%*$85,000,000)
Residual Earnings = Expected net income - Financed through Equity
Residual Earnings = $200,000,000 - $25,500,000
Residual Earnings = $174,500,000
Dividend Payout Ratio = Residual Earnings / Expected net income
Dividend Payout Ratio = $174,500,000 / $200,000,000
Dividend Payout Ratio = 0.8725
Dividend Payout Ratio = 87.25%
Oficina Bonita Company manufactures office furniture. An unfinished desk is produced for $37.10 and sold for $65.45. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.30.Prepare a differential analysis. Round your answers to two decimal places.
Answer:
Find below analysis
Explanation:
Based on the appropriate template, I have prepared the differential analysis as shown in the attached excel file bearing in mind the following points:
The costs per desk under the alternative is the cost of an unfinished desk which is $37.10 plus the cost of further processing for a finished desk which is $6.30
Also, the different effect is simply the amount for alternative 2 minus amount under alternative 1
Các bn ơi giúp mình giải bài này với ạ. Mình cảm ơn.
Doanh nghiệp là doanh nghiệp sản xuất máy điều hòa nhiệt độ có công suất 30000BTU. Tình hình sản xuất kinh doanh trong tháng là:
- tiêu thụ trong nước 500 chiếc với giá bán chưa thuế GTGT là 5500000đ/ chiếc.
- Bán cho doanh nghiệp trong khu chế xuất 50 chiếc với giá bán tại cửa khẩu chu chế xuất là 250USD/ chiếc ( giá FOB)
Biết thuế suất thuế TTĐB là 10%. Tỷ giá đối đoái: 1USD= 20000 VND. Tính thuế TTĐB phải nộp.
Answer:
What
Explanation:
WHat
The Williams Supply Company sells for $50 one product that it purchases for $20. Budgeted sales in total dollars for the year are $3,000,000. The sales information needed for preparing the July budget follows:
Month Sales Revenue
May $175,000
June 240,000
July 295,000
August 320,000
Account balances at July 1 include these:
Cash $125,000
Merchandise inventory 47,200
Accounts receivable (sales) 84,530
Accounts payable (purchases) 47,200
The company pays for one-half of its purchases in the month of purchase and the remainder in the following month. End-of-month inventory must be 40% of the budgeted sales in units for the next month. A 2% cash discount on sales is allowed if payment is made during the month of sale. Experience indicates that 60% of the billings will be collected during the month of sale, 25% in the following month, 12% in the second following month, and 3% will be uncollectible. Total budgeted selling and administrative expenses (excluding bad debts) for the fiscal year are estimated at $1,200,000, of which three-fourths is fixed expense (inclusive of a $36,000 annual depreciation charge). Fixed expenses are incurred evenly during the year. The other selling and administrative expenses vary with sales. Expenses are paid during the month incurred.
Required:
a. Prepare a schedule of estimated cash collections for July.
b. Prepare a schedule of estimated July cash payments for purchases.
c. Prepare schedules of July selling and administrative expenses, separately identifying those requiring cash disbursements.
d. Prepare a schedule of cash receipts over disbursements assuming no equipment purchases or loan payments.
Answer:
The Williams Supply Company
a. Estimated Cash Collections for July
58% sales month (60% -2%) $171,100 ($295,000 * 58%) July
25% ffg month 60,000 ($240,000 * 25%) June
12% second month 21,000 ($175,000 * 12%) May
Estimated cash collections = $252,100
b. Estimated July Cash Payments for Purchases:
July
Cost of purchases $122,000
50% purchase month 61,000
50% ffg month 47,200
Total payment for purchases $108,200
c. July Selling and Administrative Expenses:
Monthly fixed expenses $72,000
Variable expenses ($5 * 5,900) 29,500
Total selling and admin expenses $101,500
d. Cash Receipts Over Disbursements for July:
Beginning cash balance $125,000
Total cash receipts 252,100
Total cash available $377,100
Cash Disbursements:
Purchases $108,200
Selling and Admin. 101,500
Total cash disbursements $209,700
Cash balance $167,400
Explanation:
a) Data and Calculations:
Selling price of product = $50 per unit
Purchase cost of product = $20 per unit
Total budgeted sales for the year = $3,000,000
Total budgeted sales for the year (units) = 60,000 units
Month Sales Revenue Unit Sales
May $175,000 3,500 ($175,000/$50)
June 240,000 4,800 ($240,000/$50)
July 295,000 5,900 ($295,000/$50)
August 320,000 6,400 ($320,000/$50)
July 1 Account Balances:
Cash = $125,000
Merchandise inventory = $47,200
Accounts receivable (sales) = $84,530
Accounts payable (purchases) = $47,200
Payment of Purchases:
50% purchase month
50% ffg month
Cash collections from sales:
58% sales month (60% -2%)
25% ffg month
12% second month
Ending inventory = 40% of the budgeted sales in units in the next month
Total budgeted selling and administrative expenses (excluding bad debts) = $1,200,000
Fixed expense = $864,000 ($1,200,000 * 3/4) - $36,000
Monthly fixed expenses = $72,000 ($864,000/12)
Variable selling expenses = $300,000 ($1,200,000 - $900,000)
Variable selling expenses per unit = $5 ($300,000/60,000)
Purchases Budget
June July
Ending inventory 2,360 2,560
Sales 4,800 5,900
Units available for sale 7,160 8,460
Beginning inventory 1,920 2,360
Purchases 5,240 6,100
Cost of purchases $104,800 $122,000 (6,100 * $20)
g A company's flexible budget for 15,000 units of production showed sales, $60,000; variable costs, $22,500; and fixed costs, $17,000. The sales expected if the company produces and sells 19,000 units is (Do not round intermediate calculations):
Answer:
$76,000
Explanation:
The first step is to find the sales price per unit
= 60,000/15,000
= $4
Therefore the sales expected from the company can be calculated as follow
= 4×19,000
= 76,000
Hence the expected sales is $76,000
A number of major corporations, such as General Motors, Amway, and Evian, sponsor or support worthy causes, many of which are environmental causes. These companies are highly motivated to engage in cause-oriented marketing because _____.
Answer:
C)corporations hope to generate goodwill toward the company and its brands
Explanation:
THESE ARE THE OPTIONS FOR THE QUESTION
a. it is a socially acceptable way of distributing excess profits
b. corporations function better in a healthy environment
c. corporations hope to generate goodwill toward the company and its brands
d. major companies are required by law to support environmentally friendly causes
e. research shows that companies that support the environment do better financially
From the question we are informed about A number of major corporations, such as General Motors, Amway, and Evian, sponsor or support worthy causes, many of which are environmental causes. In this case, These companies are highly motivated to engage in cause-oriented marketing because corporations hope to generate goodwill toward the company and its brands.
Cause marketing can be regarded as one that contains some collaboration which exist between a profit oriented business as well as a nonprofit organization all for common benefit. Cause marketing can as well be regarded as social or charitable campaigns which is been set up by for-profit oriented brands. In most cases, brands that has association with a nonprofit usually have their corporate social responsibility been boasted.
Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units.
Actual run time this week 5,696 minutes
Machine time available per week 6,400 minutes
Actual run rate this week 1.68 units per minute
Ideal run rate 2.00units per minute
Defect-free output this week 12,670 units
Total output this week (including defects) 18,100units
Required:
1. Compute the utilization rate. (Round your answer to 2 decimal places.)
2. Compute the efficiency rate. (Round your answer to 2 decimal places.)
3. Compute the quality rate. (Round your answer to 2 decimal places.)
4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.)
Answer:
1. Utilization rate = Operating time/Scheduled time
Utilization rate = 5,696/6,400
Utilization rate = 0.89
2. Efficiency rate = (Total output / Ideal run rate) / Operating time
Efficiency rate = (18,100/2) / 5,696
Efficiency rate = 9,050 / 5,696
Efficiency rate = 1.5888343
Efficiency rate = 1.59
3. Quality rate = Good units produced / Total units produced
Quality rate = 12,670 / 18,100
Quality rate = 0.70
4. Overall Equipment Effectiveness = Utilization rate * Efficiency rate * Quality rate
Overall Equipment Effectiveness = 0.89 * 1.59 * 0.70
Overall Equipment Effectiveness = 0.99057
Overall Equipment Effectiveness = 0.991
The utilization rate is 0.89 and the efficiency rate is 1.59.
From the information given, the utilization rate will be:
= Operating time/Scheduled time
= 5,696/6,400
= 0.89
The efficiency rate will be:
= (Total output / Ideal run rate) / Operating time
= (18,100/2) / 5,696
= 9,050 / 5,696
= 1.59
The quality rate will be:
= Good units produced / Total unit
= 12,670 / 18,100
= 0.70
The overall equipment effectiveness will be:
= Utilization rate × Efficiency rate × Quality rate
= 0.89 × 1.59 × 0.70
= 0.991
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At the start of the current year, Minuteman Corporation had a credit balance in the Allowance for Doubtful Accounts of $1,800. During the year a monthly provision of 2% of sales was made for uncollectible accounts. Sales for the year were $600,000, and $5,600 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made during the year. What is the ending normal balance of t
Answer:
$8,200
Explanation:
Missing word "What is the ending normal balance of the Allowance account at year-end?"
Particulars Amount
Opening balance $1,800
Add: Monthly provision $12,000 (2%*$600,000)
Less: Bad debt $5,600
Ending balance of allowance $8,200
The most recent financial statements for Summer Tyme, Inc., are shown here:
Income Statement Balance Sheet
Sales $3,700 Current assets $4,500 Current liabilities $960 Costs 2,400 Fixed assets 5,200 Long-term debt 3,620 Taxable income $1,300 Equity 5,120 Taxes (21%) 273 Total $9,700 Total $9,700 Net income $1,027
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 60 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 30 percent.
Required:
What is the external financing needed? (Do not round your intermediate calculations.)
EFN = needed new long-term debt and/or external equity
Answer:
External finance needed = $2,088
Explanation:
Note: See the attached excel file for the Calculation of ratios with respect to sales, Proforma Income Statement, Calculation of Retained Earnings and Equity, and Proforma Balance Sheet.
From the Proforma Balance Sheet in the attached excel file, we have:
Total Assets = $12,610
Total Liabilities = $10,448
Therefore, we have:
External finance needed = Total Assets - Total Liabilities = = $12,610 - $10,448 = $2,088
Which of the following statements about a partnership is correct? Group of answer choices The personal assets of a partner are included in the partnership accounting records. A partnership is not required to file an information tax return. Each partner's share of income is taxable to the partnership. A partnership represents an accounting entity for financial reporting purposes.
Answer:
do you have a picture I can help you
answer the following questions on investment securities.
1.5.1 Name the best type of investment opportunity you may choose in future.
1.5.2 Explain how the following factors may influence your decision to invest in the chosen type of investment opportunity:
(a) Risk
(b) period of investment
b.........................
A company has 1000000 shares outstanding trading at $15 a piece. Managers believe that the discount rate appropriate for the risk borne is 15% and total cash flows, expected to be $1 million next year, will rise by 5% per year indefinitely. Discuss a strategy that is beneficial to the current shareholders.
Answer:
Explanation:
Knowing the value of the equity and establishing the intrinsic worth of the share may help you develop a perfect strategy that will benefit the current shareholders.
Value of the equity = Cashflow÷(discount rate - growth rate)
= $1,000,000 ÷ (15%-5%)
= $1,000,000 ÷ (10%)
= $10,000,000
Intrinsic value per share = Value of the equity ÷ Shares outstanding
= $10,000,000 ÷ 1,000,000
= $10
For the share, The intrinsic value = $10
However, since the current trading share price is $15, then we can posit that the share price is over-valued.
As a result, the perfect strategy that will be beneficial to the shareholders is for the current shareholders to sell the shares (short selling at a high price and purchasing at a low price).
Clearing House Interbank Payment System (CHIPS) is an organization that provides secure communication for contracts, invoices, and other trade documents that normally accompany cash payments. false
Answer:
the spleen
Explanation:
If a company purchases equipment costing $5,100 on credit, the effect on the accounting equation would be:
Answer:
assets increase $5,100 and liabilities increase $5,100
Explanation:
Assets are the items that a company owns which can provide future economic benefit.
Liabilities are future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events, hence Liabilities are what a person or company owe other parties.
If a company purchases equipment costing $5,100 on credit, the assets of the company will increase by $5100 as a result of acquiring an equipment. Also, the liability will increase by $5100 as a result of debt owed.
Complete the statements and then calculate the change in consumption.
a. The consumption function shows the relationship between consumption spending and ____________
b. The slope of the consumption function is the ___________
c. Changes in consumption can be predicted by multiplying the change in by the If the MPC ___________
Answer:
A. Disposable income
B. Marginal Propensity to Consume
C. Change in Disposable Income by the Marginal Propensity to Consume.
Explanation:
The consumption will increase by $800
Explanation:
The consumption function shows the relationship between consumption spending and disposable income.
The slope of the consumption function is the marginal propensity to consume.
Changes in consumption can be predicted by multiplying the change in disposable income by the marginal propensity to consume.
GIVEN that: MPC = 0.60
Disposable income increases by $1,500
consumption increase = 0.60*$1500
= $900
Therefore, The consumption will increase by $900.
Imagine that your mother is 62 years old and planning to retire at 66. If she puts $6,000 into a Roth IRA at the age of 62 and it grows to $8,000 by the time she retires at 66, can she withdraw the full $8,000 without paying any taxes?
A. Yes.
B. No.
Answer: B. No.
Explanation:
A Roth Individual Retirement Account allows for one to be able to withdraw amounts without paying taxes in their retirement. There are several requirements for this to be possible though.
One of them is that the person should have owned the account for at least 5 years. The mother in this scenario had only owned the account for 4 years and so will not qualify for tax free withdrawals.
By offering more generous unemployment insurance programs, European countries can expect Group of answer choices longer periods of unemployment for their workers. shorter periods of unemployment for their workers. workers to gain new skills quickly in response to fluctuations in the labor market. to pay less in taxes than in the United States.
Answer:
Longer periods of unemployment for their workers.
Explanation:
Unemployment is when people who are willing and able work do not have jobs
Types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
If a government gives generous unemployment insurance programs, there would be less incentive to find jobs because one of the main reasons why people would want to work is to have money. If the government provides generous pay to the unemployed, there would be less motivation to work and unemployment increases
Jason Ford, the CEO of the Green-Plus Company, was known among businesspeople for his qualities of self-discipline, friendliness, caring, courage, compassion, trust, and humility. This example shows that a _______ is a character trait valued as being good.
Answer: virtue
Explanation:
Virtue is refered to as the behavior whereby one shows high moral standards. It is the quality posseses by someone when the person is morally good.
Since Jason Ford has qualities such as self-discipline, caring, trust, friendliness, courage, compassion, and humility, then virtue can be said to. Be valued as being good.
XYZ shop has a favorite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory holding cost per unit is $20. Assume the store is open 350 days per year. a. What is the optimal order size
Answer:
EOQ= 19 units
Explanation:
Giving the following information:
Demand= 145 units
Order cost= $25 per order
Holding cost= $20.
To calculate the optimal order quantity, we need to use the economic order quantity method:
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
EOQ= √[(2*145*25) / 20]
EOQ= √362.5
EOQ= 19 units
XYZ Corporation manufactures orange safety suits for road workers. The following information relates to the corporation's purchases and use of material for April: Material purchased 12,000 yards Material used in production 10,000 yards Standard material allowed for suits produced 10,800 yards The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits
Answer:
$6.25 per yard
Explanation:
The computation of the standard price per yard of material for its safety suits is shown below:
Material quantity variance = Standard Price × (Actual quantity - Standard quantity)
-$5,000 = Standard price × (10,000 - 10,800)
Standard price = -$5,000 ÷ (-800)
= $6.25 per yard
Hence, the standard price per yard of material for its safety suits is $6.25 per yard
Maxim Corp. has provided the following information about one of its products:Date Transaction Number of Units Cost per Unit1/1 Beginning Inventory 285 $ 157 6/5 Purchase 485 $ 177 11/10 Purchase 185 $ 217 During the year, Maxim sold 570 units.What is cost of goods sold using the average cost method? (Do not round intermediate computations.)
Answer:
$101,904.6
Explanation:
The computation of the cost of goods sold using the average cost method is shown below:
Beginnig Inventory 285 at $157 = $44,745
Purchases 485 at $177 = $85,845
Purchases 185 at $217 = $40,145
Total cost = $170,735
Now
Total number of units is
= 285 + 485 + 185
= 955
Now
Average Cost per unit is
= $170,735 ÷ 955
=$ 178.78
And, finally
Cost of goods Sold is
= 570 × $178.78
= $101,904.6
