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mojhsa [17]
2 years ago
10

Powers Corporation has provided the following information for its most recent month of operation: sales $16,000; ending inventor

y $4,000, purchases $8,000 and gross profit $10,000. How much was Powers' beginning inventory
Business
1 answer:
Elza [17]2 years ago
7 0

Answer:

The beginning inventory was  $2000.

Explanation:

First, we need to calculate the Cost of Goods sold. The cost of Goods sold is the difference between the Sales and the gross profit. Thus, the cost of goods sold is 16000 - 10000  =  $6000

The value of the beginning inventory for the period can be calculated by using the Cost of Goods sold formula. The cost of goods sold is calculated as:

Cost of goods sold = Beginning inventory + Purchases - Closing Inventory

Plugging in the available figures in the formula,

6000  =  Beginning Inventory  +  8000  -  4000

6000 = Beginning inventory + 4000

6000 - 4000 = Beginning Inventory

Beginning Inventory = $2000

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1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipmen
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Answer:

1 Depreciation expeense (Debit) $4,200

Accumulated depreciation (Credit) $4,200

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Notes Payable (Cr.) $1,200

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Bill is creating a flowchart to simulate a simple game of picking between two cards. In which box will he place the sentence "Wh
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Perine, Inc., has balance sheet equity of $6 million. At the same time, the income statement shows net income of $906,000. The c
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