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The following units of a particular item were available for sale during the year:
Beginning inventory 150 units at $75
Sale 120 units at $125
First purchase 400 units at $78
Sale 200 units at $125
Second purchase 300 units at $80
Sale 290 units at $125
The firm uses the perpetual inventory system, and there are 240 units of the item on
hand at the end of the year. What is the total cost of the ending inventory according
to (a) FIFO, (b) LIFO?
Answered!
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 27 units at $120
Feb. 17 Purchase 54 units at $138
July 21 Purchase 63 units at $156
Nov. 23 Purchase 36 units at $165
There are 50 units of the item in the physical inventory at December 31. The periodic
inventory system is used. Determine the inventory cost by (a) the first-in, first-out
method, (b) the last-in, first-out method, and (c) the average cost method.
Answered!
On the basis of the following data, determine the value of the inventory at the lower
of cost or market. Assemble the data in the form illustrated in Exhibit 8.
Inventory Unit Unit
Commodity Quantity Cost Price Market Price
Aquarius 20 $ 80 $ 92
Capricorn 50 70 65
Leo 8 300 280
Scorpio 30 40 30
Taurus 100 90 94
Answered!
Boss Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2010, Boss Motorcycle
Shop incorrectly counted its inventory as $195,750 instead of the correct amount of
$188,200.
a. State the effect of the error on the December 31, 2010, balance sheet of Boss Motorcycle
Shop.
b. State the effect of the error on the income statement of Boss Motorcycle Shop for
the year ended December 31, 2010.
Answered!
1. Differentiate between rational expectation and adaptive expectations?
2. What is the central tenet of the policy ineffectiveness hypothesis of the new classical proposition?
3. How changes in wealth shifts the consumption function?
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A farmer grows a bushel of wheat and sells it to a miller for $1,the miller turns the wheat into floar and sells it to a baker for 3$.
The baker uses the floar to make a floar and sells it to consumer for 6$.
FIND
1.Value added in each stage of production?
2.GDP?
NOTE; The value of the finished goods already includes the value of the intermediate goods.So, including intermediate goods in GDP would be 'double counting'
Answered!
Assume that the short-run cost curves are drawn for the long-run efficient plant size and that all firms in the industry are identical. Are any of the market prices from part (d) a long-run equilibrium price? Explain why.
Answered!
What are the comparisons between the Neoclassical Synthesis and Keynesian theories? Aren't they similar to an extent?
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Since firms operating in a perfectly competitive market can sell as much as they produce at the market price, they should produce as much as they can. True or false.
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Assume a perfectly competitive industry where the firms are identical, each with U-shaped short run and long  run  average  cost  curves.    In  the  short  run,  consumers  bear  none  of  the  burden  of  a  “per  firm”  tax,   while in the long run, consumers bear the entire burden. True or false.
Answered!
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