Answer:
Shellhammer Company
Ending inventory = $712
Cost of goods sold = $2,492
Explanation:
a) Data and Calculations:
Date Item Units Unit Cost Total Cost
September 1 Inventory 100 $3.34 $334.00
September 8 Purchases 450 3.50 1,575.00
September 18 Purchases 350 3.70 1,295.00
September 30 Total 900 $3,204.00
Ending inventory 200
Cost of goods sold 700
Weighted Average cost = Total cost of goods available for sale/Total units available for sale
= $3,204/900 = $3.56
Value of Ending Inventory = $3.56 * 200 = $712
Value of Cost of goods sold = $3.56 * 700 = $2,492
b) The weighted average inventory costing, under the period inventory system, used by Shellhammer is an assumption that the costs attributable to ending inventory and cost of goods sold are determined from the average cost per unit and that these the average cost is ascertained at the end of the period. Therefore, the cost of beginning inventory and purchases are accumulated and divided by the units of goods available for sale.
Answer:
$656,000 and $465,300
Explanation:
The computation of the product cost is shown below:
= Direct materials used + Direct labor + variable manufacturing overhead + fixed manufacturing overhead
= $56,000 + $179.000 + $154,000 + $267,000
= $656,000
The computation of the period cost is shown below:
= Variable selling cost + fixed selling cost +
Administrative costs
= $108,400 + $121,000 + $235,900
= $465,300
Answer:
The correct option is advisor.
Explanation:
In business, advisors can be described as persons who evaluate circumstances and suggest options as what could be done during different circumstances. These options are suggested for the benefit of the company and to lead it towards success. An advisor usually evaluates the business plan for a company.
In the above-mentioned scenario, Andy is entitled to evaluate particular situations and provide better options, hence she is playing the role of an advisor.
Answer:
The lease should be classified as an operating lease, and a lease liability should be recorded at the inception of the lease.
Explanation:
Operating lease is a contract that allows for the use of an asset but does not convey ownership rights of the said asset.
Lease liability is defined as a financial obligation to make the payments arising from a lease and it is calculated on a discounted basis.
