What is the cost of raw liquid plastic

Assignment Help Financial Accounting
Reference no: EM132941641

Problem 1: Your company manufactures plastic pails and uses raw liquid plastic in bulk form (which it stores in a single large tank) to make the pails. On December 31, 2019 the tank held 590 gallons of liquid plastic valued at $18,000. On January 28, 2020 it bought 10,000 gallons of raw liquid plastic for $300,000, and on September 12, 2020 it bought a further 12,000 gallons for $408,000. Note: all of these 2020 deliveries were stored in the aforementioned tank, and the company uses average costs to value inventory. On December 31st, 2020 there remained 19,000 gallons of raw liquid plastic left over in the tank. Given the above information what is the cost of raw liquid plastic that should be charged to the 2020 (Jan to Dec) Income Statement?

Option 1: $392,000

Option 2: $392.508

Option 3: $115,376

Option 4: $436,630

Reference no: EM132941641

Questions Cloud

Reflect on the role of a business analyst : MIS610 Advanced Professional Practice - Research and reflect on the role of a Business Analyst (or chosen career path) in the contemporary business environment
What are the open-to-buys at retail and at cost : What are their open-to-buys at retail and at cost if the initial markup% is 55%? Umberto's merchandising plan for October has a planned
What is the expected dividend in year five : What is the expected dividend in year five when the earnings and dividends are expected to decline at an annual rate of 2% indefinitely?
What is cost of raw liquid plastic that should be charged : Given the above information what is the cost of raw liquid plastic that should be charged to the 2020 (Jan to Dec) Income Statement?
What is the cost of raw liquid plastic : Your company manufactures plastic pails, What is the cost of raw liquid plastic that should be charged to the 2020 (Jan to Dec) Income Statement?
How much interest expense will purifier record on december : Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How much interest expense will Purifier record on December 31?
How much principal payment in the second month : The note entailed equal monthly payments of $2,500. The interest rate is 1% per month. How much principal payment in the second month?
Which will result in the highest collection of cash : Which would rather have, or which will result in the highest collection of cash? Assume an 8% annual interest rate and compounding interest.
Find which entry to record the warranty liability includes : Estimated warranty costs are 1% of sales. Work performed under warranties during period actually cost $8,750. The entry to record the warranty liability include

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much inventory did the company purchase

A company reports its 20B cost of good sold at $20.0 billion. its ending inventory for 20B is $1.8 billion and for 20A, ending was $1.5 billion. How much inventory did the company purchase during 20A?

  Calculate the amount of money need at the beginning of years

Calculate the amount of money he need at the beginning of year 65 (his retirement date) so that he can achieve his plan of retirement.

  Maturity interest paid stated rate effective rate

Determine the price of a $200,000 bond issue under each of the following independent assumptions: Maturity Interest paid Stated Rate Effective rate.

  What is the company current stock price

Dividend is expected to grow at a constant rate of 6 percent a year. The stock's required rate of return is 22.5%. What is the company's current stock price?

  What the investment proceeds from the initial investment is

What the investment proceeds from the initial investment is? In 2005, the Malaysian government allowed the currency to float against several major currencies.

  What is the present value of each of these three investments

Question - Present value of an uneven stream of payments - What is the present value of each of these three investments

  What is the net present value of the project

The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, What is the net present value of project

  Provide an example of a real-life seemingly small mistake

Provide an example of a real-life seemingly small mistake with large consequences. By real-life, mean a situation that actually happened, not a theoretical one.

  What would recommend to do if investment has percent

What would you recommend him to do if this investment has an 11.5 percent rate of return, risk-free rate is 5.5 percent, and the rate of return

  What type of financial information is reported in footnotes

Which of the topics discussed in the notes involve the time value of money calculations?What type of financial information is reported in the related footnotes?

  What effects does leasing have on a firm balance sheet

What effects does leasing have on a firm's balance sheet and capital structure? Explain these effects with your own created example.

  What is total corporate value

It is financed with $200 million of debt, $50 million of preferred stock, and $210 million of book equity. What is the value of operations? What is the total corporate value?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd