Ralph's company has 15 employees and produces 90 books, This is true about output and productivity.
What are output and productivity?Productivity in economics is the amount of output that can be generated from a given set of inputs. When the same quantity of output is produced with fewer inputs or with the same number of inputs, productivity rises. There are two prevalent conceptions of productivity.
Let's calculate the given data :
Total number of employees in Henry's Company = 20
Production of the book in Henry's Company = 100
Therefore, the production of the book by 1 employee
= Total number of books/ Total number of employee
=100/20
=5
Total number of employees in Ralph's company = 15
Production of the book in Ralph's company = 90
Therefore, the production of the book by 1 employee
=90/15
=6
So, It is clear that the output and productivity of Ralph's company are true.
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g define the process of accommodation in the mechanism of focusing by the eye. what factors lead to age-related changes in accommodation and what is the visual result of these changes?
The accommodative ability changes greatly because of age-related changes in the eye, including a decrease in the elasticity of the lens and the degeneration of the Zonular fibers and the ciliary muscles surrounding the lens.
The process of accommodation, or focusing on near objects, happened by a concerted action of the ciliary muscle on the zonule fibers which hold the lens in place. The ciliary muscle can be described as a ring of smooth muscle that, upon contraction, relaxes the tension on the zonular fibers and allows the lens to become more spherical.
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brown inc. sells one product at a selling price of $30 per unit. variable expenses are $12 per unit and fixed expenses are $41,400. brown's break-even point is:
Smith Company sells a single product at a unit price of $30. Fixed expenses are $41,400 and variable expenses are $12 per unit. The break-even point for Smith is 2,300 units.
What is selling price ?The selling price is the amount paid by a buyer for a product or service. It varies according to how much the buyer is willing to pay, how much the seller is ready to accept, and how competitive the price is in comparison to other companies in the need. SELLING PRICE is defined in the Britannica Dictionary. [singular]: the actual selling price of something. They asked $200,000 for the house, but it ultimately sold for $175,000. Thus, the selling price per unit formula divides sales by the number of units or quantity sold to determine the price per unit from the income statement.
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true or false: in most cases, it is less expensive to borrow money using your certificate of deposit as collateral for a loan than if you use your used car.
Most of the time, borrowing money using your certificate of deposit as security for a loan is less expensive than doing so with your used car. Hence, the statement is true.
What is a collateral ?A valuable asset that a borrower promises as collateral for a loan is known as collateral in the financial industry.
An unsecured loan has a higher interest rate than one that is secured by collateral. If there is a default, the lender has the right to sell the collateral to make up the difference.
A loan that is backed by a collateral will probably have a interest rate that is much lower in comparison to a loan that is not backed by a collateral. A lien is a legal right or claim made by a lender against assets held by a borrower in order to pay off a debt. The borrower of a loan will have a high incentive to pay back the loan on time due to the risking of their home or other assets that are used as collateral.
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a brand manager for yeti reusable water bottle would like to assess the overall quality of a data collection effort. the brand manager for yeti should consider the: group of answer choices response rate. all answers are correct. completion rate. eligibility rate. collection rate.
A brand manager for yeti reusable water bottle would like to assess the overall quality of a data collection effort. the brand manager for yeti should consider the: response rate and completion rate.
The number of respondents divided by the total sample size is referred to as the response rate in survey research, also known as the completion rate or return rate. It is typically stated as a percentage. The number of people that replied to an offer is referred to using the phrase in direct marketing as well.
In comparison to the total number of persons you contacted, the response rate shows how many people responded to the survey. The survey completion rate, which displays the percentage of respondents that completed the survey, is comparable to the response rate and equally significant.
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if the process is in control but not capable, what would you do? a redesign the process so that it can achieve the desired output. b use an alternative process that can achieve the desired output c retain the current process but attempt to eliminate unacceptable output using 100% inspection d see whether specs could be relaxed without adversely affecting customer satisfaction. e all of the above
If the process is in control but not capable, I would redesign the process so that it can achieve the desired output.
The answer is option A.
After strategies are set and plans are made, management’s primary project is to take steps to make certain that those plans are finished, or, if conditions warrant, that the plans are changed. this is the essential management feature of control.
And in view that management includes directing the sports of others, a chief part of the control function is ensuring other humans do what has to be completed.
The management literature is full of recommendations on the way to acquire better manipulation.
This advice normally includes an outline of a few sorts of dimensions and feedback processes.
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paltrowski company issued 1 million shares of no-par common stock with a stated value of $2. the issue price was $54 per share. which journal entry is prepared?
The journal entry that is prepared is debit Cash $50 million, credit Common Stock $2 million, and credit Paid in Capital in Excess of Stated Value Common $48 million.
What is the balance sheet?The balance sheet contains the stockholder's equity. It is said to be the sum of the company's remaining assets after all obligations have been paid. Common share and retained earnings balances are included in shareholder equity.
Debit Cash = $54 million,
Credit Common Stock = $2 million,
Credit Paid-in Capital in Excess of Stated Value (Common) = $52 million.
So, the journal entry will be
Debit Cash $50 million, credit Common Stock $2 million, and credit Paid in Capital Exceeding Par Common $48 million.
The issue price divided by the number of shares equals market value. Market value is equal to $50 divided by one million, which equals $50 million.
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The complete question is:
"Paltrowski Company issued 1 million shares of no par common stock with a stated value of $2 per share. The issue price was $50 per share.
Which journal entry is prepared?
A. debit Cash $50 million, credit Common Stock $2 million and credit Paid in Capital in Excess of Par Common $48 million
B. debit Cash $50 million, credit Common Stock $2 million and credit Paid in Capital in Excess of Stated Value Common $48 million
C. debit Cash $50 million and credit Common Stock $50 million
D. debit Cash $50 million and credit Retained Earnings $50 million"
elsa company had january 1 inventory of $300,000 when it adopted dollar-value lifo. december 31 inventory at year-end prices was $379,500, and the price index was 110. what is elsa's ending inventory presented on the balance sheet for the current year using dollar-value lifo?
$349,500 is else's ending inventory presented on the balance sheet for the current year using dollar-value LIFO.
Inventory (American English) or stock (British English) refers to the products and materials that a business holds for the final word goal of resale, production, or utilization. Inventory management is a discipline primarily concerning specifying the form and placement of stocked goods. it's needed at totally different locations inside a facility or within several locations of an offer network to precede the regular and planned course of production and stock of materials.
The conception of inventory, stock, or work in process (or add progress) has been extended from producing systems to service businesses [1][2][3] and comes by generalizing the definition to be "all work within the method of production - all work that's or has occurred before the completion of production".
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the price of a bottle of pepsi is $4.00, the price of a hotdog $8.00, and the price of an order of nachos is $12.00. what is the relative price of a nachos in terms of bottles of pepsi?
The relative price of nachos in terms of bottles of Pepsi is calculated to be 3 if the price of a bottle of Pepsi is $4.00 and the price of an order of nachos is $12.00.
The relative price of a product can be described as the quantity of some other product that can be exchanged for a specified quantity of the given product.
Relative price is expressed as the ratio between the prices of two goods or services.
As the price of an order of nachos is $12 and the price of a bottle of Pepsi is $4; therefore the relative price of nachos in terms of bottles of Pepsi can be calculated as follows;
relative price = 12 / 4
relative price = 3
Therefore, the relative price of nachos will be 3 in terms of bottles of Pepsi.
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the decision-making technique that involves graphically displaying alternatives considered in a decision and the outcomes expected as a result is termed a .
The decision-making technique that involves graphically displaying alternatives considered in a decision and the outcomes expected as a result is termed as decision tree.
What is decision tree and the decision involving graphically displaying alternatives is termed as what?Decision tree is a significant tool used for classification and categorization for various kind of tasks and include regression tasks also.A decision tree for if or else conditions would be better for the understanding values and further processing.Decision tree is significant and plays a pivotal role for the data analysis and algorithms are also used in decision tree and ID3 is one of the algorithm used in decision tree.Here the decision tree is depicted as the technique involving graphically displaying alternatives considering in a decision and the outcomes expected as a result .The decision tree is named so because the data, decisions in decision tree is represented like a tree model or like the structure of tree.Hence decision tree is the decision making technique that involves graphically displaying alternatives considered in a decision and the outcomes expected as a result .To know more about decision visit:
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During what stage of the new-product development process does a marketer develop a prototype for alpha or beta testing?.
During marketing testing stage of the new-product development process does a marketer develop a prototype for alpha or beta testing.
Definition of market testingMarket testing describes research that can help maketers understand how well a particular product is performing, given a specific market location or audience.
While similar to product testing, market testing focuses on how a product can perform in a market environment rather than on the structure or effectiveness of the product itself. Companies can hire market testing professionals to help launch new products or to analyze and adjust marketing strategies for existing products.
Strategy type of market testingThere are various market testing strategies that researchers can use to learn about a product. Some specific types of market testing include:
1. Focus groups
To create a focus group, marketers gather a small group of people to discuss certain aspects of a product, service, or marketing to gain insight and make improvements based on their feedback.
Researchers can create focus groups at random or by selecting certain types of individuals to represent customers.
2. A/B testing
Also known as split testing, A/B testing involves comparing two versions of the same product or advertising strategy to learn which is more effective for the target audience.
3. Small-scale product launch
Also known as a regional rollout, this type of market testing involves launching a product into a selected test market in a specific city or region to see how they react.
Researchers can then use the feedback they receive to improve a product or marketing plan before attempting a wider launch.
4. Eye track testing
Eye track testing can help researchers understand where a person is looking when viewing a website page or advertisement. This can help them learn which visual ad elements are getting the most attention so they can use them more often.
5. Incrementality testing
To perform incrementality testing, the advertiser creates a group of test subjects and a group of control subjects. They then showed the test subjects' ads and compared the conversion rates for the test group with the control group to learn about the effectiveness of the advertising campaigns.
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Which text style makes the text look slanted?
A.
Bold
B.
Capitalization
C.
Footer
D.
Italic
Answer:
italic
Explanation:
because you can just tell it does lol
Answer:
Explanation:
Comment
Italic is the name given to fonts that are on about a 15 degree slant with the vertical. It looks like this when it is printed out.
1. the u.s. treasury offers some of its debt as treasury inflation indexed securities, or tiis (more commonly known as tips, an acronym for treasury inflation protected securities), in which the price of bonds is adjusted for inflation over the life of the debt instrument. tips bonds are traded on a much smaller scale than nominal u.s. treasury bonds of equivalent maturity. what can you conclude about the liquidity premiums of tips versus nominal u.s. bonds?
We can you conclude that the liquidity premium for a TIPS bonds is usually smaller than inflation compensations in nominal U.S. bond yields of equal maturity.
Treasury Inflation-protected Securities (TIPS) are bonds that offset the consequences of inflation by using adjusting the cost of the primary.
Tips are installation to protect you towards inflation. unlike other Treasury securities, in which the major is fixed, the important of a recommendations can move up or down over its time period. whilst the guidelines matures, if the foremost is better than the original quantity, you get the multiplied amount.
If inflation were to provide way to deflation, important and interest fee payments on pointers could alter downward. hints are also challenge to hobby price threat, much like different bonds. meaning while interest fees rise, the marketplace price of bonds is possibly to fall.
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you would like to contribute to a savings account over the next three years in order to accumulate enough money to take a trip to europe. assume an interest rate of 4%, compounded quarterly. how much will accumulate in three years by depositing $500 at the end of each of the next 12 quarters?
The amount after three years will be equal to $7513.
Compound Interest is the interest which is charged on an entity by any institution in which the amount received after one year becomes the principal amount for next year. We know that
Future amount = quarterly contribution x annuity factor
Now, the quarterly contribution is equal to $500, the total quarterly contributions is 3 x 4 = 12 periods, the interest rate is 4% compounded quarterly and the annuity factor is 4%, 12 periods = 15.026
Now, Future value = quarterly contribution x annuity factor
Future value = $500×15.026
Future value = $7513 which is the required amount.
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allegheny company ended year 1 with balances in accounts receivable and allowance for doubtful accounts of $48,000 and $1,950, respectively. during year 2, allegheny wrote off $3,300 of uncollectible accounts. using the percent of receivables method, allegheny estimates that the ending allowance for doubtful accounts balance should be $3,400. what amount will allegheny report as uncollectible accounts expense on its year 2 income statement?
The uncollectible accounts expense on its year 2 income statement is $4,750.
= Ending balance + write off balance - opening balance
= $3,400 + $3,300 - $1,950
= $4,750
When a customer misses a payment, a charge for uncollectible accounts is recorded in the books. When it is known for certain that a customer won't pay, this expense may be recognized. In order to match an expense to a corresponding sale within the same reporting period, even while the specifics of the default are unknown, a more conservative way is to charge an anticipated amount to expense when a sale is made. Bad debt expense is another name for uncollectible accounts expense.
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a minority prospect walked into best properties real estate and requested to see a specific house in a minority neighborhood. the broker can lawfully assume the prospect is
A Sale and Purchase Agreement (SPA) is a contractual agreement describing the terms on which the buyer and seller of a property have come to an understanding (e.g., a corporation). In any sale transaction, it serves as the primary legal document.
A sales and buy agreement contains what?A buy and sell agreement is used to formalize the intentions of the parties and the conditions that will control the transaction. You can specify details such as the item or property, the cost of the item or property, the terms for the item's delivery, and the date of the item's delivery.The Purchase and Sale Agreement will be drafted by the seller's representative or lawyer (P&S). This is the official contract to buy the house, which is the more legally binding document. It is a typical document of the "cookie cutter" variety.A Sale and Purchase Agreement (SPA) is a contractual agreement describing the terms on which the buyer and seller of a property have come to an understanding (e.g., a corporation). In any sale transaction, it serves as the primary legal document.To Learn more about Sale and Purchase Agreement refer to :
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what document describes the portion of work to be purchased in enough detail so potential suppliers can decide if they feel they are capable of and interested in providing it?
A contract describes the portion of work to be purchased in enough detail so potential suppliers can decide if they feel they are capable of and interested in providing it.
A contract is a legally enforceable agreement that establishes, defines, and controls the mutual rights and obligations between parties. Contracts typically include the transfer of goods, services, money, or promises to transfer at a future date.In its simplest definition, it is a legally enforceable promise. A promise can be to do something or not to do somethingConcluding a contract usually requires the mutual consent of two or more people, one making the offer and the other accepting.A binding agreement between two or more persons or partiesA document describing the terms of a contractA contract is an agreement between two parties that creates an obligation to perform (or not perform) certain obligations.Thus, it is a document that describes the portion of work related to business in detail.
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natalya reports profits when cash is received and records expenses when they are paid. she is using a. cash-basis accounting. b. accrual-basis accounting. c. liquid assets. d. a statement of cash flows.
Natalya reports profits when cash is received and records expenses when they are paid. She is using a cash basis accounting
A common accounting method known as cash basis identifies expenses and revenues at the time cash is received or paid out. In contrast, accrual accounting records expenses as they are incurred, regardless of when cash is collected or paid, and recognizes income at the time the liability is incurred.
Cash basis accounting is less accurate than accrual accounting in the short term because transactions that are recorded on a cash basis have an impact on a company's books as soon as consideration is exchanged.
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nancy works for northrop grumman corporation. she is assigned to a group of employees who work on solving quality issues the company is facing. nancy participates in a(n)
Based on the fact that Nancy is assigned to a group of employees who have to solve the quality issues being faced by the company, Nancy is participating in a Quality circle.
What is a Quality circle?A Quality circle in a company refers to a department that is formed to solve any issues that the company has with the quality of the goods or service that it is providing to its customers. The people in this department are often drawn from different department so as to create a diverse pool that can come up with different solutions to whatever quality issues the company is facing.
Some of the solutions that a Quality circle might come up with include sourcing better materials or giving employees better training. Nancy is in a team that is in charge of solving any quality problems the Northrop Grumman Corporation has so she must be in a Quality circle.
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in the presence of a 10% noncontrolling interest, how much inter-entity gross profit remaining in ending inventory should be eliminated in consolidation?
Inter-entity gross profit remaining in ending inventory should be eliminated in consolidation is 100%.
What is consolidation?The term consolidation comes from the Latin consolidatus, which means "joined he into one body". Whatever the context, consolidation means combining a larger set of items into one smaller number.For example, a traveler can pack all his luggage into one big bag.gross consolidation means combining various debts, such as credit card bills and other loan payments, into one loan or monthly payment. If you have multiple credit card accounts or loans, consolidation is a way to simplify or reduce your paymentsNature or State of Fusion Specific : Fusion of two or more bodies by dissolving existing bodies and forming a single new body.Debt consolidation means combining various debts, such as credit card bills and other loan payments, into one loan or monthly payment.If you have multiple credit card accounts or loans, gross is a way to simplify or reduce your payments.To learn more about consolidation from the given link :
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jason needed help with his construction job and called on his cousin jeff to assist. jason told jeff that window trim needed to be cut and installed and detailed how to turn on the saw, how to make adjustments to it, how to use it to make the cuts, and how to turn it off. which method of informing is jason using?
Method of informing is jason using the verbal method of informing.
What is Method ?
The scientific method is an empirical way of collecting knowledge that has characterised scientific advancement since at since the seventeenth century It entails thorough observation and applying severe scepticism to what is seen, given that cognitive preconceptions can alter how the observation is interpreted. It entails developing hypotheses based on such observations through induction; testing hypotheses by experimental and measuring system statistical testing of inferences made from the hypotheses; and refining (or eliminating) hypotheses based on experimental findings. These are scientific method principles, as opposed to a set of processes that must be followed by all scientific endeavours.
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g identify which offering process is typically used for municipal debt securities? group of answer choices a. brokered b. competitive c. direct listing d. negotiated
The negotiated municipal bonds typically used for municipal debt securities. In place of competitive bidding, a negotiated sale occurs when the issuer and a small number of bidders negotiate the conditions of a transaction.
What is negotiated bonds ?A negotiated sale is a method of offering municipal bonds or other similar financial instruments in the fixed-income market where the issuing entity and a chosen underwriter negotiate the terms of the issue rather than having multiple underwriting groups competitively bid on the issue to determine its terms.
The interest rate, call features, and issue purchase price are some of the key issues that an issuer needs to discuss in a negotiated sale. This method of selling a new issuance of securities is often referred to as a negotiated underwriting.
In a negotiated sale, the financing for the issuance will be handled by the underwriter, who will be chosen by the issuing organisation prior to the sale date. As the underwriter collaborates with the business to market the offering, lower quality concerns typically gain the most from this type of underwriting strategy.
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the integration of the marketing mix with efforts to influence consumer demand is known as . multiple choice question. internal marketing capacity management interaction management customer experience management
The integration of the marketing mix with efforts to influence consumer demand is known as: B. capacity management.
What is a marketing mix?A marketing mix simply refers to the choices about product attributes, communication strategy or promotion, place or distribution strategy, and pricing strategy that a business organization (company or firm) offer to its targeted markets.
The four (4) Ps of marketing mix.This ultimately implies that, a marketing mix is primarily made up of four (4) Ps and these include the following;
Products (P).Price (P).Place (P).Promotions (P).In Economics, capacity management simply refers to a terminology which is typically used to describe an integration of the marketing mix with efforts by a business organization (company or firm) in order to influence consumer demand of its products.
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The push model is also called ________ which means the production process begins with a ________ that is simply an educated guess as to anticipated customer demand.
The push model is also called make to stock which means the production process begins with a forecast that is simply an educated guess as to anticipated customer demand.
What exactly is customer demand?
Consumer demand is defined as the willingness and ability of consumers to purchase a variety of goods and services in a fixed length of time or at a specific point in time. Effective demand is not simply a desire to buy something; it must be preceded by ability to pay. To put it simply, purchasing power is required to turn desire into effective demand. Purchasing power is determined by specific customer revenue (or disposable savings) in relation to the current price level. Consumer sovereign power is the fundamental principle of free market theory, with private consumption acting as the dominant market force. If there were no demand, there would be no sales, revenue, or profit.
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Charles names several programs and philosophies that are integral to the past success of rosalie’s restaurants. All of these factors go into forming the market orientation of rosalie’s. What doesn’t fall in the concept of market orientation?.
Marketing mix doesn't fall in the concept of market orientation.
What is market orientation?Market orientation is the process of identifying consumer needs and desires in order to define new products that will be created. Well-known businesses like Amazon and Coca-Cola use market orientation concepts to improve or expand their products and services.
For instance, a vehicle manufacturer that adheres to market orientation will research consumer demands and desires before creating models that are meant to mimic the trends of other manufacturers.
Thus, it is marketing mix.
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you are the manager of a firm that sells its product in a competitive marekt at a price of $48. your fims cost function is your firms maximum profits are:
A competitive firm achieves equilibrium in a market that is competitive when the fixed market price equals the firm. The firm's maximum profits are $228.
60 + 2Q² is the total price. The derivative of the cost function with respect to the output is the marginal cost. Below is a calculation of the marginal cost.
MC = ΔTC / ΔQ = 4Q
When the marginal cost of production is equal to the price of $48 by the rival firm. The firm's production is computed in the table below.
MC = P
4Q = 48
Q = 12
The profit represents the discrepancy between the competitive firm costs and revenues. As calculated below, the profit.
π = TR - TC
π = PQ - 60 - 2Q²
π = 48 × 12 - 60 - 2 ×12²
π = 228
Hence, the profit is $228. Thus, the correct option is (B).
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Question:
You are the manager of a firm that sells its product in a competitive market at a price of $48. Your firm's cost function is C = 60 + 2Q2. Your firm's maximum profits are: a)192 b)228 c)348 d)576
which of the following accurately describes the relationship between social service programs and the business cycle? social service programs act completely independently of the business cycle. social service programs can help with recessions but do not slow inflation. social service programs can help with inflation but do not alleviate recessions. social service programs tend to intensify recessions and inflationary periods. social service programs help alleviate cyclical unemployment and inflation.
Answer:
E) Social service programs help alleviate cyclical unemployment and inflation.
Answer: social service programs help alleviate cyclical unemployment and inflation.
Explanation: During a business cycle, the economy goes through periods of expansion and contraction. These fluctuations can lead to changes in unemployment rates and inflation levels. Social service programs, or public assistance, such as unemployment benefits, universal healthcare, and welfare programs, are designed to provide support and assistance to those in need who may qualify for these services, especially in times of economic hardships.
During recessions, social service programs can help alleviate cyclical unemployment by providing financial assistance to those who have lost their jobs. This helps individuals meet their basic needs and reduces the negative impact of unemployment on the economy. Additionally, social service programs can help with inflation by providing support to low-income individuals, which can stimulate consumer spending and mitigate the effects of rising prices, especially on basic essentials like food and clothing.
In the ________ activity of scm, organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport their products to their customers, and create an invoicing system to receive payments.
In the logistics activity of scm, organizations coordinate the receipt of customer orders, develop a network of warehouses, select carriers to transport their products to their customers, and create an invoicing system to receive payments.
In a broader sense, the term "logistics" refers to the act of organizing and transporting resources, such as people, goods, inventories, and equipment, from one location to storage at the intended location like a warehouse. A warehouse is a type of commercial building used extensively in the manufacturing and distribution sectors to store both finished items and raw materials as part of the supply chain. The transportation of supplies and equipment to troops in the field is referred to as logistics in the military.
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A focus group was formed to provide opinions for a target market.what type of data is being collected from the focus group ?
The type of data that is being collected from the focus group is a: primary data.
The types of data.Generally speaking, there are two (2) main types of data and these include:
Primary dataSecondary dataWhat is a primary data?A primary data simply refers to a type of data or information which typically comprises only raw information that are first-hand and original in nature. This ultimately implies that, a primary data describes a personal experience, opinion, or witness of an event (occurrence).
In conclusion, some example of primary data sources include the following;
SurveysObservationsExperimentsQuestionnairesInterviewsFocus groupsRead more on primary data here: brainly.com/question/26711803
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the use of accounting information as a tool to communicate without providing any influence that would sway a decision in a particular direction that would favor a particular interest group is known as
Neutrality refers to the use of accounting information as a medium for communication without giving any influence that would push a decision in a specific manner that would favour a particular interest group.
Accounting:
Accounting is the measurement, processing, and exchange of financial and non-financial information regarding economic entities such as enterprises and corporations. Accounting, also known as the "language of business," measures and communicates the outcomes of an organization's economic operations to a wide range of stakeholders, including investors, creditors, managers, and regulators. Accountants are those who practise accounting. The terms "accounting" and "financial reporting" are sometimes used interchangeably.
Neutrality is another aspect of faithful portrayal. This is when accounting information can be used to communicate without offering any influence that could bias a decision in a specific manner that would benefit a specific interest group.
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during the year, wright company sells 520 remote-control airplanes for $120 each. the company has the following inventory purchase transactions for the year. date transactionnumber of unitsunit costtotal cost jan. 1 beginning inventory40 $62 $2,480 may 5 purchase300 65 19,500 nov. 3 purchase250 70 17,500 590 $39,480 calculate ending inventory and cost of goods sold for the year, assuming the company uses fifo.
A business has choices when it comes to how to value its inventory. With a periodic inventory system, where the cost of goods sold and ending inventory are determined at the end of the period, the weighted-average approach is applied. Using this method, an average cost per unit is calculated and allocated to both sold and unsold inventories.
Average Weighted Cost per Unit
This is how the weighted-average cost per unit is determined:
Total cost of inventory / Total units in inventory equals weighted-average cost per unit.
Weighted-average cost per unit equals $38,610 divided by 530 units for a unit price of $72.8491.
Cost per unit on a weighted average is $72.8491.
Average Weighted Cost of Goods Sold
The following formula is used to determine weighted-average cost of goods sold:
Cost of products sold = Weighted-average cost per unit * Number of units sold
Cost of goods sold equals $72.8491 per unit times 500 sales, which comes to $36,424.55.
The weighted-average technique results in a cost of goods sold of $36,424.55.
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