In its first month of operations, Lily Company made three purchases of merchandise in the following sequence: (1) 310 units at $8, (2) 450 units at $9, and (3) 240 units at $10. (a) Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.) Average unit cost $

In its first month of operations, Lily Company made three purchases of merchandise in the following sequence: (1) 310 units at $8, (2) 450 units at $9, and (3) 240 units at $10. (a) Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.) Average unit cost $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following Income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (7,000 units × $165) Cost of goods sold (7,000 units x $87) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,000 units × $2) Net income Required Req A a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net Income Campbell will earn if sales Increase by 20 percent. Complete this question by entering your answers in the tabs below. Req B and C Less: Variable costs Less: Fixed costs Reconstruct the income statement using the contribution margin format. CAMPBELL COMPANY Income Statement For the Year Ended December 31, Year 1 $ $1,155,000 (609,000) 546,000 (115,500)…
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n its first month of operations, Waterway Company made three purchases of merchandise in the following sequence: (1) 320 units at $8, (2) 440 units at $9, and (3) 240 units at $10. Calculate the average unit cost. (Round answer to 2 decimal places, e.g. 15.25.) Average unit cost $ Compute the cost of the ending inventory under the average-cost method, assuming there are 360 units on hand. (Round answer to 0 decimal places, e.g. 1,250.) The cost of the ending inventory $ Click if you would like to Show Work for this question: Open Show Work
[The following information applies to the questions displayed below.]Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Unit Cost* Total Cost Jan. 10 3,000 $ 9 $ 27,000 Jan. 18 4,000 10 40,000 Totals 7,000 67,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 2,000 Jan. 12 1,000 Jan. 20 3,000 Total 6,000 5,000 units were on hand at the end of the month. 5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)
FInd the Weighted average cost per unit
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