true or false to complete a 20 person-month project in 10 months, a team should have 4 full-time staff members assigned to the project

If a credit sale is made, the seller can either debit Cash or Account Receivable at the time of the sale, depending on the type of credit card. The given statement is False.

What is Account Receivable?

Accounts receivable (AR) refer to the money owed to a company by its customers for goods or services that have been sold but not yet paid for. It is a current asset on a company's balance sheet, representing the amount of money that is expected to be received from customers within a specified period.

When a company sells goods or services to a customer on credit, it creates an account receivable. The customer is expected to pay the amount owed within a certain period of time, which is usually specified in the invoice or purchase agreement. The accounts receivable balance increases when the company sells more products or services on credit and decreases when customers make payments on their outstanding balances.

Accounts receivable are an important part of a company's cash flow and working capital management. If customers do not pay their debts on time, it can negatively impact a company's cash flow and profitability. As a result, companies often have credit and collection policies in place to manage their accounts receivable and ensure timely payments from customers.

When a credit sale is made, the seller can either debit Account Receivable (if they want to keep track of how much each customer owes) or debit Sales (if they want to keep track of how much they sold). Debiting Cash makes no sense because the seller is not receiving any money right now.

When a credit sale is made, cash will eventually be received, but that happens when the customer pays the invoice, which is a different event entirely. So, the seller should debit either the Account Receivable or Sales account at the time of the sale.

Learn more about Accounting here:-

https://brainly.com/question/1033546

#SPJ11

The most commonly used economic system in the world today is a mixed economy. A mixed economy combines elements of both a free market economy and a command economy.

In a mixed economy, some industries are controlled by the government, while others are left to the private sector. Most developed countries today have mixed economies, including the United States, Canada, Japan, and most European countries.

In these economies, private enterprise is allowed to operate freely, but the government also plays a role in regulating markets, providing public goods and services, and redistributing wealth through taxation and social programs.

The goal of a mixed economy is to balance the benefits of a free market economy, such as innovation and efficiency, with the benefits of a command economy, such as social welfare and economic stability. While the exact mix of government and private enterprise varies between countries, the mixed economy is the dominant economic system in the world today.

To learn more about mixed economy

https://brainly.com/question/28793850

#SPJ4

Lack of capital, the retention of an inadequate management team, a deficient infrastructure or business model, and inefficient marketing techniques are among the most common reasons for small business failure.

The fact that the action aspects are not implemented, regularly reviewed, or modified as required is the primary reason for their failure. Because of this, there is a lack of focus and direction. Moreover, it results in an energy loss. If no action is done, nothing can be achieved.

A growth in output, which encompasses both the creation of commodities and the delivery of services, as is widely known, results in the development of businesses. If people buy this goods, sales go up. When price is constant, sales will increase and sales income will increase as a result.

Learn more about management team: https://brainly.com/question/10502294

#SPJ1

The advantage of mobile research demonstrated in this example is the ability to collect rich and diverse data from a large and geographically dispersed sample of respondents.

By using mobile surveys, the Nature Company can easily engage with potential customers in a personalized and interactive manner, allowing them to share their opinions, preferences, and feedback in real-time.

Mobile surveys also enable the collection of multimedia content, such as photos, videos, and voice recordings, which can provide valuable insights into respondents' experiences and emotions.

Read more about mobile research here:

https://brainly.com/question/1695490

#SPJ1

The stage of product development in which a company estimates costs, identifies pricing, and evaluates demand for the product in order to determine profitability is Business Analysis.

Business Analysis is a process in which companies assess the viability of their product by studying its costs, pricing and potential customer base. This analysis helps them make decisions about whether to move forward with the product launch. It involves researching the market, competition, potential customers and financial costs.

Companies must also create realistic expectations for how the product will perform once it is launched. This includes estimating potential sales, customer feedback and profitability. All of these factors help companies decide if the product is worth developing.

By researching the market, competition, potential customers and financial costs, companies can get a better understanding of the viability of their product. This helps them determine the pricing, production costs and potential profits. Companies can then use this information to make a more informed decision about whether to launch their product. This analysis allows them to create realistic expectations for the product launch and helps them manage risks.

To learn more about Business Analysis. here:

https://brainly.com/question/26299461#

#SPJ11

Otto Inc. is retiring old equipment with a book value of $2,400. The options available to Otto should "be discussed, so the best course of action can be determined."

Since the cost is a sunk cost, it is no longer relevant to the decision. Continue reading to learn more about what Otto Inc. should do when retiring old equipment with a book value of $2,400.What should Otto Inc. do when retiring old equipment with a book value of $2,400?When Otto Inc. retires old equipment with a book value of $2,400, it should decide whether or not it should be sold for scrap or whether it should be donated or discarded if it is no longer operational.

A company must act ethically and socially responsible when disposing of waste, scrap, and unused equipment. If the equipment can be sold for scrap, the company may be able to recover some of the cost of the equipment. As a result, scrapping the equipment is the best option. Donating or recycling the equipment is the best option if it can be refurbished or if it can be recycled into other products.

It's critical to understand that the cost of the equipment is a sunk cost, which means that it cannot be recovered. As a result, it's irrelevant to the decision-making process. The equipment's cost should be removed from the company's books when it is retired from service.

Otto Inc. is retiring old equipment with a book value of $2,400.  Otto should "be discussed, so the best course of action can be determined."

For more such questions on the value

brainly.com/question/7924898

#SPJ11


An expense ratio serves as a gauge for the expenses incurred in running and administering an investment vehicle.

It is the yearly charge a fund levies to pay its operational costs, which include management fees, administrative expenditures, and other expenses. This charge is calculated as a proportion of the assets managed by the fund. Because they may significantly affect an investor's results, expense ratios are crucial. The net return on investment decreases as expenditure ratio rises. For instance, an investor would pay $10 in fees for every $1,000 invested in a fund with a 1% cost ratio.

As bonds often provide lesser returns than equities do, cost ratios are particularly significant. Therefore, a bond fund's exposure to fees may be greater. Furthermore, a lot of bond funds provide lower yields than individual bonds, which implies that a greater cost ratio might take a bigger bite out of the overall return of the fund. To reduce the impact of fees on their investment results, investors should seek bond funds with low-cost ratios.

Read more about expense ratio on:

https://brainly.com/question/29739175

#SPJ4

C) Better understanding of home country culture

Diversity in multinationals brings many benefits, such as a better understanding of local staff and customers, greater openness to new ideas, and expanded perspectives and interpretations. However, a better understanding of home country's culture would not be considered a potential benefit of diversity for multinationals.

Multinational companies are enterprises that operate in various countries and have assets and operations in more than one nation. A multinational corporation's activities are regulated by both national and international law. Multinational corporations are frequently huge corporations with a high degree of autonomy in their international operations.

Multinational corporations may have several benefits of diversity such as: Better understanding of local staff and customers; Greater openness to new ideas; Expanded perspectives and interpretations; Better understanding of the culture of the host country. However, understanding the home country's culture would not be considered a potential benefit of diversity for multinationals.

Multinationals, on the other hand, are more likely to have employees from different cultures who are well-versed in their own country's culture. These employees may provide important context and insight into the various local customs and practices. Furthermore, having a diverse workforce can assist the company in better understanding the nuances of local and global business environments.

For more info about the topic Multinational Corporations check the below link:

https://brainly.com/question/494475

#SPJ11

The client should negotiate a service-level agreement to complete the work of digitizing documents.

What is SLA?

A service-level agreement (SLA) outlines the amount of service individuals must anticipate from a supplier, the metrics used to measure service, and any penalties or solutions that may be imposed if the agreed-upon service standards are not fulfilled. Any deal with a technology vendor must include it.

A contract with an IT vendor must include SLAs. An SLA compiles details about each contractual service and also the expected reliability of those services into a unified document. They express measurements, duties, and expectations in explicit terms so that neither side may claim ignorance if there are problems with the service.

It guarantees that the criteria are understood by both parties.

Learn more SLA here:

brainly.com/question/16015646

#SPJ11

Television advertising is: Desirable but relatively inexpensive; Desirable but expensive to buy time; and Desirable but costly to produce the ads. The correct selections would be A, C and D.

Television advertising typically involves the creation and broadcasting of short advertisements or commercials during commercial breaks within TV programs. These commercials are designed to capture the attention of viewers and persuade them to take a specific action, such as purchasing a product, visiting a website, or supporting a cause.

Thus, the ideal selection is option A, C and D.

Learn more about television advertising here:

https://brainly.com/question/14456389

#SPJ12

Holding large amounts of bank capital helps prevent bank failures because it can be used to absorb the losses resulting from bad loans.

By having large amounts of capital, banks are able to take on more risk and are less likely to experience losses in the event of a bad loan. Capital can also be used to cover any costs associated with bad loans, such as closing costs, legal fees, and other expenses. This helps to ensure that banks remain stable and are not forced to declare bankruptcy due to bad loans. In addition, banks with large amounts of capital can call in loans quickly, making it easier to manage their portfolios. All of this helps to reduce the chance of failure and protect customers from the losses associated with bank failures.

For more questions on bank capital

https://brainly.com/question/16627237

#SPJ11

Bourgeoisie  group sells its labor to the bourgeoisie to receive wages. The answer is OPTION D.

A person who belongs to this class is a proletariat. Marxist theory holds that capitalism exploits the proletariat by requiring them to accept low wages in exchange for using the means of production that belong to the bourgeoisie, a class of landowners.

According to this theory, there are two social classes in a capitalist society: the proletariat, who are the workers in a capitalist system and who produce goods, and the bourgeoisie, who control the means of production and receive the majority of the profits from the labor of their workers while contributing little to it. The answer is OPTION D.

To learn more about Bourgeoisie, click here.

https://brainly.com/question/8780580

#SPJ4

The sale of merchandise for cash is not an investing activity. An investing activity is defined as the act of utilizing funds to acquire assets with the purpose of earning a profit on them over time. The process of investing can take many forms, from buying stocks and bonds to purchasing real estate or starting a small business.

Some types of investing activities are as follows:

However, the sale of merchandise for cash is not an investing activity. It is an operating activity. Operating activities are the main revenue-generating activities of a company's core business operations. The company generates cash by selling its goods and services, and this cash is used to pay expenses such as salaries, rent, and utilities.

Know more about investing activity here:

https://brainly.com/question/27418185

#SPJ11

If the car market in China can be analyzed using supply and demand curves, a decrease in car sales can be depicted by a shift in the curve to the left. This led to a decline in demand for cars, and the demand curve shifted leftward.

A graph that shows the quantity demanded of a particular good or service at each price point is known as the demand curve. The demand curve is a visual representation of the relationship between price and quantity demanded. The quantity demanded is represented on the x-axis, whereas the price is represented on the y-axis.

In conclusion, if the car market in China is analyzed using supply and demand curves, the best representation of the change in the market is that there was a decrease in car sales, leading to a shift in the demand curve to the left.

For more information regarding supply demand curve, you can check the below link

brainly.com/question/13353440

#SPJ11

A conglomerate merger is one in which the businesses involved neither compete nor are related as customer and supplier in any given line of commerce. The correct answer is option d.

A conglomerate merger is a type of merger between companies that operate in unrelated industries or have different lines of business. In other words, it's a merger between two companies that are engaged in completely different types of business activities.

For example, if a company that produces electronic goods merges with a company that manufactures furniture, it would be considered a conglomerate merger. The purpose of a conglomerate merger is usually to diversify the operations of the combined company and reduce the risk associated with a single industry or business line.

Conglomerate mergers can be either pure or mixed. A pure conglomerate merger is when two companies that have no common business interests or markets merge. A mixed conglomerate merger, on the other hand, is when two companies with some common business interests or markets merge, but also have significant differences in their operations.

Learn more about conglomerate merger here: https://brainly.com/question/25816657

#SPJ11

Of the following common contingencies, (D) "Cleanliness of work area" is not usually included with a permanent financing agreement.

A permanent financing agreement is a type of loan that is designed to finance the long-term acquisition or development of real estate assets.

Permanent financing agreements are long-term financial arrangements that provide borrowers with a more stable and sustainable source of funding than short-term financing solutions.

Permanent financing arrangements are typically used to fund the acquisition, development, or construction of real estate assets, including office buildings, hotels, retail centers, and industrial facilities.

Permanent financing arrangements are used to provide borrowers with the long-term funding needed to pay for these types of projects over a period of many years.

These financing agreements often contain common contingencies, which are provisions that are included to help protect the lender and the borrower from unforeseen circumstances.

These contingencies often include expected percentage of occupancy, completion date for construction phase, and materials used in construction phase.

However, cleanliness of work area is not typically included with a permanent financing agreement.

To know more about financing agreement, refer here:

https://brainly.com/question/10651480#

#SPJ11

A court is most likely to pierce the corporate veil when the "poor financial condition of the company has been correctly represented to creditors." Thus, the correct answer is D.

When a company is formed as a separate legal entity, it is generally considered to be a separate entity from its owners or shareholders, and the owners are not personally liable for the company's debts. However, in certain situations, a court may "pierce the corporate veil" and hold the owners or shareholders personally liable for the company's debts or actions.

One of the most common situations where this occurs is when the company's poor financial condition has been misrepresented to creditors, leading them to believe that the company is financially sound and able to repay its debts. When this occurs, a court may find that the owners or shareholders are responsible for the debts and may allow creditors to go after their personal assets.

Learn more about veil of corporations https://brainly.com/question/3632641

#SPJ11

Coca-Cola brought back Surge, its answer to PepsiCo's Mountain Dew. It had first offered Surge for sale in 1996 but had stopped production in 2002. Surge was marketed as a novelty, limited-production item quickly in order to show it off to friends, the company also featured next-day delivery, exclusively from Amazon. The most likely price level that was associated with the Surge revival is the prestige item level.

What is a prestige item level? A prestige item is a product that is sold at a premium price to signify its exclusivity or luxury status. When companies release such items, they typically price them at a premium, which can be difficult to justify based on the raw materials or production costs associated with the product. Surge was brought back in 2014 as a novelty, a revival of the brand for nostalgic consumers, according to the question. As a result, the company assumed that buyers would want this specialty, a limited-production item quickly in order to show it off to friends. This would have boosted the demand for the product and allowed Coca-Cola to charge a premium price for it, thus making it a prestige item level. Furthermore, the company offered next-day delivery exclusively from Amazon to ensure that buyers received the product quickly.

For more such questions on Coca-cola

https://brainly.com/question/14949323

#SPJ11


As of December 31, the amount of salary expense that needs to be accrued is $3,575. The account that is debited in the adjusting entry is Salary Expense account. The account that is credited in the adjusting entry is Salaries Payable account.

An adjusting entry is a journal entry made at the end of an accounting period to allocate income and expenditure to the period in which it occurred. These entries are created to modify the account balances so that the financial statements reflect accurate amounts. Adjusting entries are used to track revenues and expenses over the accounting period that they are incurred. They are also used to report on financial activities in the future.

In the given scenario, the total amount of salary expenses that need to be accrued as of December 31 is $3,575. The Salaries Payable account had no previous balance before this. Therefore, the Salary Expense account needs to be debited in the adjusting entry. Salaries Payable account needs to be credited in the adjusting entry.

Hence, based on the information provided, $3,575 needs to be accrued as of December 31 as salary expense. The account to be debited in the adjusting entry is Salaries Expense and the account to be credited in the adjusting entry is Salaries Payable.

Learn more about Adjusting entry:

https://brainly.com/question/13035559

#SPJ11

Marketers will use secondary data, such as that obtained from the U.S. Census, when possible because of the time and cost savings it provides.

Secondary data is gathered and utilized by anyone other than the researcher or marketer. The researcher may have no control over how the data was generated or what issues may have arisen when collecting it, but it may still be useful in understanding certain market characteristics.

Secondary data is cost-effective because it may have been collected for purposes other than the research question at hand, yet it is frequently helpful and easy to obtain. Marketers may use secondary data because it helps save time and money.

Learn more about Secondary data here:

https://brainly.com/question/29750618

#SPJ11

Employed people plus unemployed people make up the labor force, and the unemployment rate is calculated as the number of jobless people divided by the total labor force.

This measure excludes those who have not looked for employment in the previous four weeks. It's critical to remember that the rate, which totals employed and unemployed people, does not represent the complete population but rather the percentage of job seekers who are jobless.

The percentage of civilian non-institutional residents 16 years of age and older who are employed or actively seeking employment is known as the labor force participation rate.

To know more about labor force  visit:-

https://brainly.com/question/30010267

#SPJ1

The complete question is:

To be counted as employed in the u.s. labor force statistics, a person

A) does not have to be working for pay if they are working for a family business and does not have to be working full time.

B) people who are temporarily absent from their job and people who work without pay in a family member's business

Investing in infrastructure has a significant impact on the standard of living in a country. The construction and maintenance of roads, bridges, airports, seaports, and other facilities, as well as power and water supplies, are all included in infrastructure investment. Here's a brief overview of how investing in infrastructure affects the standard of living in a country:

Better transportation- Transportation infrastructure is critical for economic growth and development. Improved transportation links not only benefit businesses but also make travel and commuting more convenient, lowering transport costs and making it simpler for people to access goods, services, and job opportunities. Improves Healthcare and Education Investing in healthcare and education infrastructure can help to improve the standard of living. If health and education infrastructure is in place, people's lives will be improved. As a result, life expectancy and literacy rates improve. People have better access to medical care and education facilities due to these improvements.

Improves access to water and energy sources Clean drinking water and reliable energy supply are critical for a country's development. Investing in water and energy infrastructure can increase the standard of living. A safe and dependable water supply and electricity supply are necessary for industrial, commercial, and residential purposes. Increases the Overall Economic Growth Infrastructure investment has a direct impact on the economic growth of a country.

Infrastructure investment creates job opportunities and provides better facilities to businesses. This, in turn, helps to improve productivity and economic growth of a country, and also raises the living standards of the people. Conclusion: Therefore, investing in infrastructure is critical to a country's development and can have a significant impact on the standard of living.

For more such questions on infrastructure

https://brainly.com/question/28033600

#SPJ11

Other things being equal, relatively poor countries tend to grow slower than relatively rich countries. This is referred to as the poverty trap.

There are various reasons why poor nations experience this phenomenon. The primary explanation is that these nations lack the necessary infrastructure and resources to invest in capital goods, education, and technology. As a result, they cannot compete with wealthy nations in terms of productivity and growth.

A poverty trap is a scenario in which poor countries remain in a state of poverty because they lack the capital, technology, and knowledge necessary to break out of it. Relatively poor countries often have low levels of education, poor infrastructure, inadequate health care, and high rates of population growth. Furthermore, they may lack access to international markets, resulting in a lack of opportunities to sell their goods and services abroad.

Another factor that contributes to the poverty trap is the fact that poor countries often have high levels of corruption, which makes it difficult to attract foreign investment. Corruption also undermines the rule of law, making it more difficult for entrepreneurs to start and expand their businesses. Additionally, poor countries often have weak institutions that are unable to enforce contracts, protect property rights, and maintain social order.

These factors combine to create an environment that is hostile to economic growth and development.Therefore, it can be concluded that relatively poor countries tend to grow slower than relatively rich countries. This is called the poverty trap, which is caused by a combination of factors such as inadequate infrastructure, low levels of education, high levels of corruption, and weak institutions. These factors make it difficult for poor countries to attract investment and compete with wealthier nations.

For similar questions on "Poverty Trap" :

https://brainly.com/question/15079355

#SPJ11

In the following question, among the given options and various parts to solve on journal entries, the statement is said to be 1) Debit: Cash $194,000  2) Debit: Cash $194,000

the record journal entries for Company Z and Company A if Company Z factors $200,000 of accounts receivable with Company A, with a finance charge of 2% and Company A retains an amount equal to 3%  
1) Without Recourse Basis:
Company Z
Debit: Accounts Receivable $200,000
Credit: Cash $194,000
Credit: Finance Charge $6,000
Company A
Debit: Cash $194,000
Credit: Factor's Receivable $200,000

2) With Recourse Basis:
Company Z
Debit: Accounts Receivable $200,000
Credit: Cash $194,000
Credit: Finance Charge $6,000
Company A
Debit: Cash $194,000
Debit: Reserve for Recourse Obligations $2,000
Credit: Factor's Receivable $200,000

For more such questions on entries

https://brainly.com/question/28390337

#SPJ11

TowerMotors Inc., an automotive company, engages in an unethical practice if it asks for detailed research proposals from various competing research providers with no intention of actually choosing a firm to conduct the research.

By not selecting a firm to conduct research after reviewing their proposals, TowerMotors is wasting the time and resources of the competing research providers. The ethical issue involved in this scenario is the obligation to act fairly, honestly, and with integrity towards the research providers.

It is vital for TowerMotors to select the firm to conduct the research if it makes a request for detailed research proposals from different research providers. This will enable the company to establish trust and integrity in its business relationships with its suppliers. Additionally, by selecting a research firm, TowerMotors will have access to the valuable information needed to make informed decisions and maintain its competitive edge.

Therefore, TowerMotors Inc. engages in an unethical practice if it asks for detailed research proposals from various competing research providers with no intention of actually choosing a firm to conduct the research.

Learn more about Ethical issue:

https://brainly.com/question/14701937

#SPJ11

What is the service auditor’s report?

The service auditor’s report is a report provided by an external auditor who has evaluated the internal controls of a service organization. It is performed under the SOC 1 framework, which assesses the internal controls over financial reporting that are in place to prevent or detect material misstatements that could affect the financial statements of a company. It also includes an assessment of the suitability of the design and the operating effectiveness of those controls.

What is an auditor's use of the service auditor's report on internal controls placed in operation?

An auditor can use the service auditor’s report as audit evidence for the client’s internal controls. An auditor may use the SOC 1 report to obtain audit evidence about the client's internal control. It also aids the client's auditor in determining whether to perform an audit of the internal control and provides information about the design and effectiveness of the client's internal controls.

The client’s auditor can utilize the service auditor’s report as an audit piece of evidence when auditing the financial statements. This is beneficial since the service organization has already been evaluated for its internal control effectiveness.

Auditors use the service auditor's report on internal controls placed in operation to assess the client's internal controls. They use this report to gain an understanding of the service organization's internal control policies and procedures, as well as to evaluate the effectiveness of the client's internal control policies and procedures. Therefore, the client’s auditor can use the service auditor’s report as audit evidence for the client’s internal controls. Therefore, Option B is correct.

Learn more about auditor at https://brainly.com/question/28103559

#SPJ11

The five leadership powers are decision-making, reward and punishment, information control, charm, and coercion.

Leadership power refers to the ability of a leader to influence the behavior and decisions of their subordinates. There are five types of leadership power, which are as follows:

Decision-making power is the authority to make decisions that are binding on the organization.

Reward and punishment power is the ability to reward or punish members of the organization for their performance.

Information control is the authority to control information in order to influence behavior and outcomes.

Charm power is the ability to influence others through charm or charisma.

Finally, coercion power is the authority to use force or the threat of force to make people comply.

Learn more about Leadership power here:

https://brainly.com/question/24540659

#SPJ11

Social norms supply the standards and models for acceptable behavior in a society.

A social norm is defined as a set of unwritten rules or principles that govern how people behave in society. Social norms are unwritten, which means that they are not formal laws or rules enacted by the government or any other regulatory authority. They emerge from everyday social interactions and are learned through socialization.

There are two types of social norms: descriptive and prescriptive.

Descriptive norms describe what people typically do in a particular circumstance, while prescriptive norms prescribe what people should do or not do in a particular circumstance.

Social norms have a significant impact on our behavior, influencing everything from what we wear to how we speak to how we treat others. Social norms can be enforced through social disapproval, criticism, and ostracism for those who violate them.

Thus, social norms supply the standards and models for acceptable behavior in a society.

Learn more about social norm here: https://brainly.com/question/13446613

#SPJ11

The given information is analyzed using three methods: the First-In, First-Out (FIFO), the Last-In, First-Out (LIFO), and the Weighted Average Cost (WAC) method. The inventory cost by the first-in, first-out method is $17,400.b. The inventory cost by the last-in, first-out method is $10,100.c. The inventory cost by the weighted average cost method is $14,811.

The three methods are explained below:

First-In, First-Out (FIFO) Method: This method assumes that the items sold are the oldest items in stock, and those remaining are the newest items. As a result, the cost of the newest items in inventory remains on the balance sheet. The first item received in inventory is the first to be sold. This is how it works: Jan. 1 Inventory 2,500 units at $5Feb. 17 Purchase 2,900 units at $6Jul. 21 Purchase 3,400 units at $7Nov. 23 Purchase 1,200 units at $8. The cost of the first 2,500 units was $5, therefore the cost of the next 2,900 units was $6, and the cost of the last 4,600 units was $7. The cost of goods sold is calculated as follows: 2,500 × $5 + 2,900 × $6 + 1,200 × $8 = $47,500, while the cost of inventory on hand on December 31, 2017, is calculated as follows: (1,700 × $7) + (900 × $8) = $17,400.

First-Out (LIFO) Method: This method is the reverse of the FIFO method. It assumes that the most recent inventory is sold first, and the oldest inventory is left in stock. Therefore, the cost of the oldest inventory remains on the balance sheet. This is how it works: Jan. 1 Inventory 2,500 units at $5Feb. 17 Purchase 2,900 units at $6Jul. 21 Purchase 3,400 units at $7Nov. 23 Purchase 1,200 units at $8. The cost of the first 1,200 units was $8, therefore the cost of the next 3,400 units was $7, and the cost of the last 2,500 units was $5. The cost of goods sold is calculated as follows: 1,200 × $8 + 3,400 × $7 + 1000 × $6 = $50,800, while the cost of inventory on hand on December 31, 2017, is calculated as follows: (500 × $7) + (1,200 × $8) = $10,100.

Weighed Average Cost (WAC) Method: The total cost of the available items is divided by the total number of units to arrive at the weighted average cost of each item. The Weighted Average Cost method is used when there is no clear pattern for the cost of goods sold, unlike the FIFO and LIFO methods. This is how it works:Jan. 1 Inventory 2,500 units at $5Feb. 17 Purchase 2,900 units at $6Jul. 21 Purchase 3,400 units at $7Nov. 23 Purchase 1,200 units at $8Total units = 10,000Total cost = $87,300Weighted average cost per unit = Total cost / Total units = $8.73Therefore, the cost of goods sold is calculated as follows: 10,000 – 1,700 = 8,300 units sold at $8.73 each = $72,309. While the cost of inventory on hand on December 31, 2017, is calculated as follows: 1,700 × $8.73 = $14,811.

For more questions on inventory cost

https://brainly.com/question/11493725

#SPJ11