Business, 19.10.2019 00:30 olsen6932

Monarch company uses a weighted-average perpetual inventory system, and has the following purchases and sales: january 1 20 units were purchased at $10 per unit. january 12 12 units were sold. january 20 18 units were purchased at $11 per unit. what is the value of ending inventory? (round average cost per unit to 2 decimal places and final answer to the nearest dollar.)

Answers: 3

Show answers

Answers

Answer from: kimarley816

Ending inventory = $278

Weighted average price = $ 10.69.

Explanation:

Weighted Average Method is used to make an inventory valuation, taking average values for both the merchandise in stock and for the costs of merchandise sold.

Like FIFO and LIFO, it is also a method that is used in the permanent inventory system.

Below is the calculation method for the value of ending inventory (see spreadsheet attached).

1)For the first purchase, we indicate the amount purchased (Quantity), the unit purchase price (Rate) and the total paid (Amount), that is, 20 units at $10 each = $200. Since there are no previous stocks, we repeat these values in the Stock column.

2)For the first sale we deduct from the stock 12 units at the average price and therefore 8 units remain at the average Price.

Then, in the Output column we indicate the quantity we sell (12 units), the unit price (which is the average price of the Stock column) and the total (the multiplication of the quantity sold by the unit cost).

3)In stock we indicate that we have 8 units left at $10 each, totaling $80. The cost of the merchandise sold is $ 120 (the total that appears in the column of Outputs).

4)For the next purchase we complete the values in the Inputs column, that is 18 units at $ 11 each, totaling $198.

5)Then we complete the Stock column as follows: we add the current total stock value ($ 80) plus the new value ($ 198). That gives a total of $ 278.

6)Then we indicate the new amount we have in stock (26 units that are obtained by adding the 8 we had with the 18 that enter).

7)Finally we divide the total value of the stock ($ 278) over the amount of the same (26 units), obtaining a weighted average price of $ 10.69.

Answer from: Quest

what are the options

explanation:

Answer from: Quest

the answer is true. i do believe this is the answer because of the amount of wrecks people get into each year. if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.

Another question on Business

Business, 22.06.2019 01:30

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

Answers: 1

Answer

Business, 22.06.2019 14:30

If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided

Answers: 1

Answer

Business, 22.06.2019 22:20

Who owns a renter-occupied apartment? a. the government b. a landlord c. the resident d. a cooperative

Answers: 1

Answer

Business, 22.06.2019 22:40

Utilization will always be lower than efficiency because: a. effective capacity is greater than design capacityb. expected output is less than actual output.c. effective capacity equals design capacity.d. effective capacity is less than design capacity.e. expected output is less than rated capacity.

Answers: 3

Answer

You know the right answer?

Monarch company uses a weighted-average perpetual inventory system, and has the following purchases...

Questions