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MAXImum [283]
2 years ago
10

Assume that we use a perpetual inventory system and that five identical units are purchased separately at the following four dat

es and costs: April 5 at $10, April 10 at $12, April 15 at $14, and April 20 at $16 April 20 $17. One unit is then sold on April 25. The company uses the first-in, first-out (FIFO) inventory costing method. Identify whether each of the items purchased will be sent to cost of goods sold on the income statement or reported in inventory on the balance sheet using the drop-down list.
Business
1 answer:
swat322 years ago
5 0

Answer:

The cost of goods sold (income statement) should include 1 unit purchased on April 5 at $10.

The merchandise inventory account (balance sheet) should include the 4 units purchased later including their purchase date and specific cost:

  • 1 unit purchased on April 10 at $12
  • 1 unit purchased on April 15 at $14
  • 1 unit purchased on April 20 at $16  
  • 1 unit purchased on April 20 at $17
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quester [9]
8000-7200=800

800 gain
3 0
1 year ago
Capital structures vary among firms in the United States and around the world. Relationships, attitudes, tax codes, and accounti
Rufina [12.5K]

Answer:

a. True

b. False

c. True

d. True

Explanation:

a. True, The least-leveraged industries have the highest TIE ratios.

b. False, U.S. firms have more debt and less equity than Germany or Japan.

c. True, Italy and Japan use more debt than the United States and Canada.

d. True, Management attitude influences the amount of debt that a firm takes on.

7 0
2 years ago
Novak provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation $2,400 pe
Olin [163]

Answer: 100 lawns

Explanation:

The Break-Even Point is the point where expenses/costs equal revenue.

First calculate the costs starting with the fixed costs which are Depreciation, advertising and insurance

= 2,400 + 400 + 2,400

= $5,200

Then the Variable costs per units which are, Weed and feed materials, Direct labor and Fuel.

= 15 + 31 + 2

= $48

Now calculate the Contribution Margin ratio which is,

= (Sales - Variable Cost ) / Sales

= (100 - 48) / 100

= 52%

With Contribution Margin, Break-Even sales can be calculated as,

Breakeven sales = fixed costs / contribution margin ratio

Breakeven sales = 5,200/52%

Breakeven sales in cash = $10,000

Breakeven sales in lawns = breakeven sales / sales per unit

Breakeven sales in lawns = 10,000/100

Breakeven sales in lawns = 100 lawns

Novak breaks even at servicing 100 lawns.

6 0
2 years ago
Skysong Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e
liubo4ka [24]

Answer:

Explanation:

First of all, to make it easy, "Debit" will be written as "Dr" and "Credit" as "Cr"                  

                                       General journal

April 2

Dr Cash $27 070  

Dr Equipment $12 900

   Cr Owner's Capital      $39 970

April 2 No transaction has occurred

April 3

Dr Supplies $833  

   Cr Accounts Payable $833

April 7

Dr Rent Expense $546  

    Cr Cash          $546

April 11

Dr Accounts Receivable $1160

   Cr Revenue             $1160

April 12

Dr Cash $2,589

    Cr Unearned Revenue $2,589

April 17

Dr Cash $2,201  

    Cr Revenue  $2,201

April 21

Dr Insurance Expense $100.30

     Cr Cash                $100.30

April 30

Dr Salaries Expense $1,020

     Cr Cash                $1,020

April 30

Dr Supplies Expense $122

     Cr Supplies         $122

April 30

Dr Equipment $5,266

    Cr Capital  $5,266

8 0
3 years ago
Jenna is the accounting clerk for an organization. She records a single journal entry for the overall compensation expenses the
bija089 [108]

Answer

Payroll Journal Entry

Explanation

A payroll entry is used to record the compensations paid to employees by the company. Payroll journal entries can be initial recordation, accrued wages or manual payments. This entry is prepared from the payroll register and it includes debits for labor, salaries and the firm’s fraction of payroll taxes.

8 0
3 years ago
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