Answer:
correct answer is A. $320,000
Explanation:
given data
sold = 7,500 units
Sales Revenue = $566,000
Purchases= 305,000
Selling and Administrative Expense = 68,000
Freight In = 13,000
Beginning Merchandise Inventory = 45,000
Ending Merchandise Inventory = 42,000
solution
we know that gross profit is equal to Sales minus Cost of goods sold .......1
so first we get here gross profit that is
gross profit = ( sales revenue + ending inventory ) - ( beginning inventory + purchase + freight in ) .........1
gross profit = ( $566,000 + $42000 ) - ( $45000 + 305000 + $13000 )
gross profit = $245000
so cost of good sold will be from equation 1
cost of good sold = $566,000 - $245000 = 321000 so approx
so correct answer is A. $320,000
The land was purchased for $300,000.00; however, after back taxes the total was $308,500.00.
The cost of demolishing an existing building, clearing the land and paving the parking lot had a grand total of $42,100.00.
<u>Answer:</u> The cost of land is $308,500 and the cost of land improvements is $42,100.
Answer:
The statement is: True.
Explanation:
The periodic review system is a method to keep track of the inventory of a company by reviewing the ledger after specific intervals. On the other hand, the continuous review system requires to take a look at the inventory stock every time part of it leaves or gets into the firm. The periodic review system is more practical because it does not imply having the information of the stock at all times.
Answer:
Check the explanation
Explanation:
Kindly check the attached image below to see the step by step explanation to the question above.
Answer:
Explanation:
There are primarily two types of costs, i.e. variable costs and the fixed costs. The variable cost is the cost which changes when the level of production changes, whereas the fixed cost is the cost which remains constant whether the level of output changes or not.
The variable costs also include indirect products, indirect labor and manufacturing equipment, and the fixed costs include taxes and depreciation costs.
The period cost is that cost which is related to the selling and admin expenses plus it is not capitalized.
Whereas the product cost is a mix of direct labor, direct material and the manufacturing overhead
So, the categorization is shown below:
1. Hamburger buns in a Wendy's outlet. = variable and product cost
2. Advertising by a dental office. = Fixed and period cost
3. Apples processed and canned by Del Monte. = variable and product cost
4. Shipping canned apples from a Del Monte plant to customers. = variable and period cost
5. Insurance on a Bausch & Lomb factory producing contact lenses. = fixed and product cost
6. Insurance on IBM's corporate headquarters.= fixed and period cost
