Answer:
$66,700
b. LIFO = $70800
67807.81
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
(8130 x 8) + [(9090 - 8130) x 6) = 70800
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
(3010 x 6) + [(9090 - 3010) x $8] = 66,700
Average cost = [(3010 x 6) + (8130 x 8)] /
18060
48640
b 65040
5760
Answer: d. All of the answers describe adjustments that must be made to the unadjusted book balance in order to determine the true cash balance.
Explanation:
Options A to C all need to be done to ascertain the True cash balance.
The bank collections from accounts needs to be added to reflect that money was received.
Bank charges need to be subtracted to reflect that the Bank has taken away some money for their administrative roles.
Interest earned from the bank as an income needs to reflect as well.
Answer:
$56400
Explanation:
The value of ending inventory is $56400 as we sales are 25% above the actual cost of goods sold therefore first we find Cost of goods sold.
Gross profit = Sales - Cost of Goods Sold
G.P = $225000 - CGS
0.25% of CGS = $225000 - CGS
0.25 CGS + 1 CGS = $225000
1.25 CGS = $225000
CGS = $225000/1.25
CGS = $180000
We know that
Opening inventory $75000
Add purchases $161400
Total goods Available for sale $236400
Less: Cost of Good Sold $ 180000
Ending inventory = $56400
Answer:
$44,300
Explanation:
The account payable had a beginning balance of $11,400
The company purchased $52,000 worth of supplies
The ending balance is $19,100
Therefore the amount in which the company paid to the creditors can be calculated as follows
= $11,400+$52,000-$19,100
= $6,400-$19,100
= $44,300
