what is an average cost method?
what is an average cost method?
Homework Answers
Average cost method is a method used to value inventory at a rate which is calculated by dividing total purchase cost with number of units purchased. This method is also known as weighted average cost method. For example, if an entity purchase 10 units @ $ 5 each on 5th January and again purchases another 15 units @ $ 7 each on 8th January, then the average rate per unit would be : [(10 units x $ 5) + (15 units x $ 7)] / (10 units + 15 units) = $ 6.2 per unit
Cost of Production Report: Average cost Method Use the average cost method with the following data:...
Cost of Production Report: Average cost Method Use the average cost method with the following data: Work in process, January 1, 3,400 units, 75% completed $ 23,000 Materials added during January from Weaving Department, 64,000 units 366,200 Direct labor for January 105,100 Factory overhead for January 80,710 Goods finished during January (includes goods in process, January 1), 63,500 units — Work in process, January 31, 3,900 units, 10% completed — Prepare a cost of production report for the Cutting Department...
Calculator Cost of Production Report: Average Cost Method Use the average cost method with the following...
Calculator Cost of Production Report: Average Cost Method Use the average cost method with the following data: work in process, January 1, 3,400 units, 75% completed Materials added during January from Weaving Department, 64,000 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 63,500 units work in process, January 31, 3,900 units, 10% completed Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January...
Cest of Production Report Average Cost Method Use the average cost method with the following in...
Cest of Production Report Average Cost Method Use the average cost method with the following in procesy Materials added during 1.4.2001 ary from weg Department 1.400 Dret labor for January Factory overhead forary Goodshed dur i ndades work in process, January 31, 2,000 units, for completed equivalent unit answer to two decal places Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost Da Carpet Company Cost of production Reporting...
QUESTION 13 Under the weighted-average cost flow method, the average cost per unit equals the cost...
QUESTION 13 Under the weighted-average cost flow method, the average cost per unit equals the cost of goods available for sale divided by the number of units available for sale. True OFalse QUESTION 14 A company's gross margin reported on the income statement is not affected by the inventory cost flow method it uses. OTrue eFalse QUESTION 15 A company uses a cost flow method (such as LIFO or FIFO) to allocate product costs between cost of goods sold and...
Please help, Periodic average cost method Cornerstone Exercise 6-32 (Algorithmic) Inventory Costing Methods: Periodic Average Cost...
Please help, Periodic average cost method
Cornerstone Exercise 6-32 (Algorithmic) Inventory Costing Methods: Periodic Average Cost (Appendix 6B) Filimonov Inc. has the following information related to purchases and sales of one of its inventory items Date Description Units Purchased at Cost 150 units$14$2,100 200 units$12$2,400 Units Sold at Retail June 1 Beginning Inventory 9 Purchase 1 14 Sale 1 22 Purchase 2 29 Sale 2 300 units $25 250 units@$14 $3,500 225 units @ $25 Assume that Filimonov uses a...
Given the following data, calculate the cost of goods sold using the average−cost method. Round average...
Given the following data, calculate the cost of goods sold using the average−cost method. Round average cost per unit calculations to two decimal places. Round final answer to the nearest dollar. Date Item Unit 1/1 Beginning inventory 70 units at $20 per unit 5/10 Purchase of inventory 10 units at $20 per unit 10/9 Purchase of inventory 10 units at $ 32 per unit 12/31 Ending inventory 38 units
The weighted average cost method uses the cost for cost of goods sold on the income...
The weighted average cost method uses the cost for cost of goods sold on the income statement and the cost for inventory on the balance sheet. average, averege average, newest newest average oldest averege averege, oldest Samberg Inc. had the following transactions. a. Oct. 1- Sold $23,500 of merchandise on account, 1/10, n/30 to McCormick Industries. b. Nov. 1- Received a $23,500, 90-day, 10% note from McCormick Industries to settle its $23,500 unpaid balance. c. Dec. 31 - Accrued interest...
1. Explain the weighted average inventory cost method and give an example?
1. Explain the weighted average inventory cost method and give an example?
Cost of Proton Report: Avenge Cost Mathed Use the average cow method with the following was...
Cost of Proton Report: Avenge Cost Mathed Use the average cow method with the following was preces, December 1,000, 70 completed Materials and during December tom Weaving Department, 100,600 wits 618,144 Direct labor for December 152.543 Factory overhead for December 92.628 Goods inched during December (inates good in process, December 1). 107.300 unts work in process, December 31,8,100 units, 10 completed Prepare a cost of production report for the Cutting Department of the Carpet Company for December 2016 using the...
Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost...
Gerald Co. decided to switch from the FIFO method of costing inventories to the average cost method at the beginning of 2016. At December 31, 2015, Gerald’s inventory using FIFO was $20,780. Gerald inventory using average cost would have been $42,520. Gerald’s tax rate is 30%. What is the change to Retained Earnings? Indicate the amount and whether Retained Earnings would be debited (D) or Credited (C). Answer with the amount and either a D or C right beside the...
Calculator Cost of Production Report: Average Cost Method Use the average cost method with the following data: work in process, January 1, 3,400 units, 75% completed Materials added during January from Weaving Department, 64,000 units Direct labor for January Factory overhead for January Goods finished during January (includes goods in process, January 1), 63,500 units work in process, January 31, 3,900 units, 10% completed Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January...
Cest of Production Report Average Cost Method Use the average cost method with the following in procesy Materials added during 1.4.2001 ary from weg Department 1.400 Dret labor for January Factory overhead forary Goodshed dur i ndades work in process, January 31, 2,000 units, for completed equivalent unit answer to two decal places Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost Da Carpet Company Cost of production Reporting...
QUESTION 13 Under the weighted-average cost flow method, the average cost per unit equals the cost of goods available for sale divided by the number of units available for sale. True OFalse QUESTION 14 A company's gross margin reported on the income statement is not affected by the inventory cost flow method it uses. OTrue eFalse QUESTION 15 A company uses a cost flow method (such as LIFO or FIFO) to allocate product costs between cost of goods sold and...
Please help, Periodic average cost method
Cornerstone Exercise 6-32 (Algorithmic) Inventory Costing Methods: Periodic Average Cost (Appendix 6B) Filimonov Inc. has the following information related to purchases and sales of one of its inventory items Date Description Units Purchased at Cost 150 units$14$2,100 200 units$12$2,400 Units Sold at Retail June 1 Beginning Inventory 9 Purchase 1 14 Sale 1 22 Purchase 2 29 Sale 2 300 units $25 250 units@$14 $3,500 225 units @ $25 Assume that Filimonov uses a...
The weighted average cost method uses the cost for cost of goods sold on the income statement and the cost for inventory on the balance sheet. average, averege average, newest newest average oldest averege averege, oldest Samberg Inc. had the following transactions. a. Oct. 1- Sold $23,500 of merchandise on account, 1/10, n/30 to McCormick Industries. b. Nov. 1- Received a $23,500, 90-day, 10% note from McCormick Industries to settle its $23,500 unpaid balance. c. Dec. 31 - Accrued interest...
Cost of Proton Report: Avenge Cost Mathed Use the average cow method with the following was preces, December 1,000, 70 completed Materials and during December tom Weaving Department, 100,600 wits 618,144 Direct labor for December 152.543 Factory overhead for December 92.628 Goods inched during December (inates good in process, December 1). 107.300 unts work in process, December 31,8,100 units, 10 completed Prepare a cost of production report for the Cutting Department of the Carpet Company for December 2016 using the...
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