The rockwell corporation uses a periodic inventory system and has used the fifo cost method since inception of the company in 1979. in 2018, the company decided to change to the average cost method. data for 2018 are as follows: beginning inventory, fifo (6,500 units @ $45.00) $ 292,500 purchases: 6,500 units @ $51.00 $ 331,500 6,500 units @ $55.00 357,500 689,000 cost of goods available for sale $ 981,500 sales for 2018 (11,000 units @ $85.00) $ 935,000 additional information: the company's effective income tax rate is 30% for all years. if the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $266,500. 8,500 units remained in inventory at the end of 2018. required: 1. prepare the journal entry at the beginning of 2018 to record the change in principle. 2. in the 2018–2016 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2018?

You are at a holiday dinner with your family. your relative makes the argument that the u.s. economy is resurgent and has recovered from the great recession of 2007 – 2009. economic growth, as measured by gdp, has been increasing from one quarter to the next. you beg to differ. how would you structure your argument with your relative? hint: you should think about two things, the accuracy of gdp measures, and whether gdp should be considered a comprehensive measure of a countries well-being.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

The following information is for alex corp: product x: revenue $12.00 variable cost $4.50 product y: revenue $44.50 variable cost $9.50 total fixed costs $75,000 what is the breakeven point assuming the sales mix consists of two units of product x and one unit of product y?