Periodic inventory by three methods; cost of goods sold

The units of an item available for sale during the year were as follows:

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows:

Jan. 1 Inventory 40 units @ $108

Mar. 10 Purchase 70 units @ $116

Aug. 30 Purchase 20 units @ $120

Dec. 12 Purchase 70 units @ $126

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold

Inventory Method: Merchandise Inventory: Merchandise Sold

First-in, first-out (FIFO):

Last-in, first-out (LIFO):

Weighted average cost:

Scenario

The economic concept of cost differs from the everyday notion of a monetary payment. In economics, the cost of doing something is what you have to give up to be able to do it. In this sense, you can face a cost even if you do not have to pay anyone anything. Economists refer to this as an opportunity cost.

Suppose that a farmer has land that can produce 20 bushels of corn per acre or 10 bushels of wheat per acre. She currently is producing 100 bushels of corn and 100 bushels of wheat.

What is the opportunity cost to the farmer, measured in bushels of corn, of producing 1 additional bushel of wheat (answer with numbers only.)

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Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equity of 12.4 percent, and a cost of preferred stock of 8 percent. The firm has 105,000 shares of common stock outstanding at a market price of $22 a share. There are 25,000 shares of preferred stock outstanding at a market price of $45 a share. The bond issue has a total face value of $1.5 million and sells at 98 percent of face value. If the tax rate is 34 percent, what is the weighted average cost of capital?

In a job order cost accounting system, the entry to record the flow of direct materials into production is:

• the total activity for the activity cost pool.
• the direct labor-hours required by the product.
• the machine-hours required by the product.
• the total direct labor-hours for the activity cost pool.

One advantage of proprietary software versus off-the-shelf software is that _____

What type of cost is the oil needed to maintain a large piece of equipment

Opportunity cost

Indirect cost

Fixed Cost

Variable Cost

Life-cycle cost (LCC) analysis is being used to help determine weather the purchase of a high-performance heating ventilation and air conditioning system is cost- effective. What would this analysis not consider?

1. Cash flows made time-equivalent by converting them to present values

2. Comparision with other measures of economic evaluations

3. Appropriate risk and uncertainty assessments

4. Customer satisfaction survey responses

A cost-cutting project will decrease costs by $67,300 a year. The annual depreciation will be $16,650 and the tax rate is 35 percent. What is the operating cash flow for this project?

49,573

29,383

17,728

43,745

37,918