Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blackout Company buys transformers from manufacturers and sells them to utility companies. The costly and the company keeps track of them by using serial

image text in transcribedimage text in transcribedimage text in transcribed

Blackout Company buys transformers from manufacturers and sells them to utility companies. The costly and the company keeps track of them by using serial numbers. On April 1, the company had two transformers in sock Serial Number Requirement 1. Backout Company uses the spentod for congenity Why d the company prefer to use this method? Companies that have of income wil often use the specfo-unt-cost method it is the loventory with the revenue it generates accate messure of matching the cost of 2010001 2010005 During the month, the company purchased the following two transformers Serial Number 20101001 20101002 Unit Cost 1 17.000 75.000 Unit Cost $ 57.000 60,000 Blackout Company sold two transformers-serial numbers 2010005 and 20101002-during the month of Apri The sefing price of the transformers was 504,000 per unt Required 1. Backout Company uses the specific-und-cost method for costing inventory. Why would the company prefer to use the method? 2. Compute the gross marge for Backout Company for the month of April Requirement 2. Compute the gross margin for Blackout Company for the month of Apr What is the gross margin for Apri Blackout Company buys transformers from manufacturers and sells them to utility companies. The units are costly and the company keeps track of them by using serial numbers. On April 1, the company had two transformers in stock. Serial Number 2010901 2010905 Unit Cost $ 67,000 $ 75,000 Unit Cost $ 57,000 $ 60,000 During the month, the company purchased the following two transformers. Serial Number 20101001 20101002 Blackout Company sold two transformers-serial numbers 2010905 and 20101002-during the month of April. The selling price of the transformers was $94,000 per unit. Required 1. Blackout Company uses the specific-unit-cost method for costing inventory. Why would the company prefer to use this method? 2. Compute the gross margin for Blackout Company for the month of April. anies. April 1, uring Requirement 1. Blackout Company uses the specific-unit-cost method for costing inventory. Why would the company prefer to use this method? Companies that have value inventory items and levels of income will often use the specific-unit-cost method. It is the measure of matching the cost of inventory with the revenue it generates. accurate Requirement 2. Compute the gross margin for Blackout Company for the month of April. What is the gross margin for April?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S. Warren

7th edition

1285974360, 1285183487, 9781285974361, 978-1285183480

More Books

Students also viewed these Accounting questions

Question

Use T accounts to analyze transactions.

Answered: 1 week ago

Question

13. Let X be exponential with mean 1/; that is, fX (x) = ex , 0 1].

Answered: 1 week ago

Question

2 Explain the impact of culture on consumption.

Answered: 1 week ago

Question

1 What are the characteristics of culture?

Answered: 1 week ago