The following lots of a particular commodity were available for sale during the year: Beginning inventory 5 units at $61 First purchase 15 units at $63 Second purchase 10 units at $74 Third purchase 10 units at $77 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year according to the
average cost method?
A) $1,380
B) $1,375
C) $1,510
D) $1,220
A
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Costs incurred for purchases of merchandise result in an asset, Merchandise Inventory, and are eventually matched with revenue at the time the product is sold
a. True b. False Indicate whether the statement is true or false
Demarkus finally received financial backing from his wealthy aunt in order to open a pawn shop. He contacted the landlord of a nearby shopping center since he had his eye on a vacant storefront. To his surprise, his request for a lease was denied. What most likely prevented the landlord from leasing to Demarkus?
A. A fixed-rate clause B. An escape clause C. A prohibited-use clause D. An exit clause E. A licensing clause
In your regular goods and services consumption activities, you purchase products for resale and for use in your daily operations. You also purchase products that you will use to produce other products. Based on this information, which of the following best describes the type of market you are part of?
A. B2C market B. Business market C. Consumer market D. Distributor market E. Reseller market
Florek Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: ?Total direct labor-hours10,000?Total fixed manufacturing overhead cost$31,000?Variable manufacturing overhead per direct labor-hour$2.50Required:a. Calculate the estimated total manufacturing overhead for the year.b. Calculate the predetermined overhead rate for the year.
What will be an ideal response?