TB MC Qu. 05-109 Marquis Company uses... Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales: August 2 10 units were purchased at $12 per unit. August 18 15 units were purchased at $14 per unit. August 29 12 units were sold. What is the amount of the cost of goods sold for this sale
Answers
Answer:
$158.40
Explanation:
For computation of amount of the cost of goods sold for this sale first we need to find out the Weighted Average Cost per unit which is shown below:-
Weighted Average Cost per unit = ((10 units × $12) + (15 units × $14)] ÷ (10 + 15)
= 330 ÷ $25
= $ 13.20 per unit
Cost of Goods Sold = Purchase per unit × Weighted Average Cost per unit
= 12 units × 13.20 per unit
= $158.40
Related Questions
Assignment I1. On March 1, 2020, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2020.a) Chart of accounts Universal GarageChart of Accounts100 ASSETS 110 CURRENT ASSETS 111 Cash 112 Accounts Receivable 114 Supplies 116 Prepaid Rent 117 Prepaid Insurance 120 PLANT ASSETS 121 Land 123 Machinery 123.1 Accumulated Depreciation-Machinery 125 Office Equipment 0.1 Accumulated Depreciation-Office Equipment200 LIABILITIES 210 CURRENT LIABILITIES 211 Account Payable 213 Salaries Payable 216 Interest Payable 220 NON-CURRENT LIABILITIES 221 Long-term Bank Loan 300 OWNER'S EQUITY 301 Tahir, Capital 302 Tahir, Drawings 303 Incomes Summary 400 REVENUES 401 Fees Earned 410 Other Income 500 EXPENSES 501 Salary Expenses 502 Supplies Expenses 503 Rent Expenses 504 Insurance Expenses 505 Depreciation Expenses 506 Interest Expenses 510 Miscellaneous Expenses b) TransactionsMar 1 Received the following assets from its owner, Tahir: Cash....................................... Br, 8,300 Supplies ................................. 2,000 Office Equipment................... 10,000 2 Borrowed Br 5,000 from Dashen Bank 3 Paid Br 1,800 for rent on a building leased for business purposes 3 Purchased welding and other repair machinery for Br 3,600 cash 4 Paid Br 200 for a radio advertisement 8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200 13 Paid weekly salary Br 1,200 16 Received Br 4,400 from services rendered on cash 20 Paid weekly salary Br 1,200 20 Received Br500 royalties for idle repair machinery it leased to other businesses 20 Delivered service on credit, Br 6,00021 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers 23 Received Br 5,000 additional cash investment from its owner 24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan 26 Purchased supplies for Br 800 cash 27 Paid Br 100 for customer entertainment and other items27 Paid weekly salary Br 1,200 31 Paid Br 500 for electricity and other utilities consumed during the month 31 Received Br 4,200 cash from credit customers 31 Paid Tahir Br 1,800 for personal uses Required: a) Journalize the above transactions in a two-column journal b) Post the journal entries to “T” accounts c) Prepare and complete a worksheet based on the following additional information i. Cost of supplies remained unconsumed on Mar 31 is Br 900 ii. The amount paid on Mar 3 is for a three-month rent iii. The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively iv. Universal Garage usually pays Br 1,200 for employee's salary every saturday for a six-day work week ended on that day v. Interest on bank loan accrued but not paid on March 31 total Br 100 d) Prepare financial statements for the month e) Journalize and post adjusting entries f) Journalize and post closing entries g) Prepare post-closing trial balance
More needs to be done to capitalise on the power of the peer-to-peer networks that many music downloaders still use. A recent study found that regular downloaders of unlicensed music spent an average of £5.52 a month on legal digital music. This compares to just £1.27 spent by other music fans. The research clearly shows that music fans who breakpiracy laws are highly valuable customers. It also suggests that they are eager to adopt legitimate music services in the future. One researcher pointed out that "There's a myth that all illegal downloaders are mercenaries hell-bent on breakingthe law in pursuit of free music. In reality hardcore fans "are extremely enthusiastic about paid-for services, as long as they are suitably compelling, he said.People who download unlicensed music tend not buy legal digital music.A TrueB FalseC Cannot Say
Novak Imports is a merchandising Firm. Last year they reported sales of $677000 and cost of goods sold of $405100. The company's total variable selling and administrative expense was $60750, and fixed selling and administrative expense was $54350. The total contribution margin for the firm is:
Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as . True or False: Short-term fluctuations in real GDP are irregular and unpredictable. True False Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1950
1. Calculate the standard cost for a pound of Sheffield's double chocolate almond supreme cookies. (Round answer to 2 decimal places, e.g. 3.51.)
Answers
The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies in the above case is $15.10.
What is the standard cost?
A standard cost is defined as an anticipated cost that a company commonly launches at the starting of a fiscal year for amounts used and prices paid.
It is an anticipated amount of money to pay off for materials costs or labor rates. The standardquantity is the anticipated exercise amount of materials or labor.
Computation of standard cost:
According to the given information,
Standard direct materials costs = $0.80 per pound of cookie mix.
Per pound of milk chocolate = $4, and
Per pound of almonds = $19.
Total ounces:
Then, Standard Material Cost:
Now, 1 minute of direct labor is required in the mixing department and 5 minutes of direct labor in the baking department. Then the standard direct labor cost is:
Variable overhead is applied at a rate = $37.00 per direct labor hour
Now, find the value of Standard Variable overhead cost:
Now, Standard Fixed overhead cost:
Therefore, Standard cost for a pound:
Therefore, Standard cost for a pound is $15.10.
To learn more about the standard cost, refer to:
Answer:
The Standard cost for a pound of Sheffield's double chocolate almond supreme cookies is $15.10
Explanation:
The standard direct materials costs are $0.80 per pound of cookie mix, $4 per pound of milk chocolate, and $19 per pound of almonds.
Total ounces = 10 + 5 + 1 = 16
Standard Material Cost = ( × 0.80) + (
× 4) + (
× 19)
Standard Material Cost = $ 2.9375
Each pound of cookies requires 1 minute of direct labor in the mixing department and 5 minutes of direct labor in the baking department.
Standard Direct Labor Cost = × 12.70 +
× 27
Standard Direct Labor Cost = $2.4617
Variable overhead is applied at a rate of $37.00 per direct labor hour
Standard Variable overhead cost = 6/60 × 37
Standard Variable overhead cost = $ 3.70
Standard Fixed overhead cost = 6/60 × 60
Standard Fixed overhead cost = $ 6
Standard cost for a pound = $2.9375 + $2.4617 + $3.70 + $6
Standard cost for a pound = $15.10
Answers
Answer: C.$96,000
Explanation:
The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.
Depreciation Tax Shield = Tax Rate * Depreciation Amount for year
= 30% * ( 1,000,000 * 32%)
= 30% * 320,000
= $96,000
By claiming a Depreciation of $320,000 in Year 2, the depreciable asset saved the company $96,000 in taxes.
Answers
Answer:
Accounts receivable turn over is 16.64
Explanation:
To compute accounts receivable turn over ratio, we simply divide net credit sales over the average accounts receivable.
Accounts receivable turn over ratio = $1,240,000/$74,500
= 16.64
The higher the ratio, the better it is in the company. It simply means, the company exercises the effective way to collect its receivable from the customer.
*Net credit sales is derived by deducting sales returns and allowances from gross credit sales. If the problem is silent regarding cash sales, we will assume that the sales made by the period is all at credit.
a. Determine the balance in the Retained Earnings account as of January 31, Year 1.
b. Determine the balance in the Revenue and Expense accounts as of January 31, Year 1.
c. Determine the balance in the Retained Earnings account as of December 31, Year 1, before closing.
d. Determine the balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.
e. Determine the balance in the Retained Earnings account as of January 1, Year 2.
f. Determine the balance in the Revenue and Expense accounts as of January 1, Year 2.
Answers
Answer:
a. $2,700
b. Revenue = $7,500 and Expenses = $4,800
c. $37,700
d. Revenue = $93,500 and Expenses = $55,800
e. $37,700
f. Revenue = $0 and Expenses = $0
Explanation:
a. Balance in the Retained Earnings account as of January 31, Year 1.
Revenue $7,500
Less Expenses ($4,800)
Net Profit $2,700
Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends
= $ 0 + $2,700 - $ 0
= $2,700
b. Balance in the Revenue and Expense accounts as of January 31, Year 1.
Revenue = $7,500
Expenses = $4,800
c. Balance in the Retained Earnings account as of December 31, Year 1, before closing.
Retained Earnings Balance = Opening Retained Earnings + Profit - Dividends
= $2,700 + ($86,000 - $51,000) - $0
= $37,700
d. Balances in the Revenue and Expense accounts as of December 31, Year 1, before closing.
Revenue ($7,500 + $86,000) = $93,500
Expenses ($4,800 + $51,000) = $55,800
e. Balance in the Retained Earnings account as of January 1, Year 2.
Retained Earnings of December 31, Year 1 = Retained Earnings of January 1, Year 2
= $37,700
f. Balance in the Revenue and Expense accounts as of January 1, Year 2.
Revenue = $0
Expenses = $0
January 325 5,900
February 375 6,200
March 300 5,650
April 350 5,450
May 275 5,550
June 450 6,250
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)
Answers
Answer:
C = 6.5Q + 3,762.5
Explanation:
High-low method:
We subtract the high from the low:
The difference tell us that 100 untis generate 650 additional cost
So we can calcualte the variable cost:
cost 650 / Unis 100 = variable cost 6.5
Now on low or high we solve for fixed cost:
cost = 6.5 x 375 + fixed cost
Total Cost 6200
Variable 2437.5
Fixed Cost 3762.5
cost = 6.5 x 275 + fixed cost
Total Cost 5550
Variable 1787.5
Fixed Cost 3762.5
the formula will be:
C = 6.5Q + 3,762.5
c. Why is the demand for labor called a "derived demand."
Answers
Answer:
(A)Wages decrease in the long term
Explanation:
(A) The principles of supply and demand applies here.
Higher worker productivity in a particular industry implies increased demand for workers in the industry (short term effect).
Increased supply of workers implies:
1. output per worker increases, resulting in increase in supply of products in the industry. But, the laws of supply and demand comes in, because when supply increases, prices decrease.
That is, the increase in worker productivity may cause a decrease in prices resulting in a decrease in wages since the firm's revenue declined (long term effect).
2. Increase in the supply of workers in the industry with increased in productivity over workers from other industry because of initial increase in wages. This would lead to a decrease in wages because the supply of workers would exceed demand.
(B) The compensation differential is the additional amount of money that a given worker must be offered in order to motivate him to accept a given undesirable job, relative to other jobs that the worker could perform.
(C) This is called a derived demand because it is often based on the demand for products.
For example, when consumers want more of a particular good or service eg clothing, more firms in the industry will want workers that make this product.