Answer:
1. Drawings A/c. dr. 15,000
To Cash A/c. 15,000
2. Cash A/c. Dr. 63,000
To Sales A/c. 63,000
3. Drawings A/c. Dr. 12,000
To Cash A/c. 12,000
4. Purchases A/c. Dr. 31,000
To Creditors A/c. 31,000
5. Drawings A/c. Dr. 16,000
To Purchases A/c. 16,000
6. Dalip Singh A/c. Dr.35,000
To Sales A/c. 35,000
7. Rent A/c. Dr. 22,000
To Bank A/c. 22,000
8. Purchases A/c. Dr. 19,000
To Cash A/c. 19,000
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Answer:
The year end closing inventory is $1256
Explanation:
The LIFO or Last In First Out method of inventory valuation follows that the latest or last purchased inventory will be the one that is sold first. Thus, under this method, the inventory that is purchased at start will be the one that will be left at the end and will form up the ending inventory.
The ending inventory of 24 units means that these units will comprise of inventory from the beginning of the period.
Thus, out of these 24 units, 8 units will be from the beginning inventory and the remaining from the first purchase (24 - 8 = 16).
The cost of ending inventory will be,
8 units at $49 per unit = $392
16 units at $54 per unit = $864
The total amount of closing inventory is = 392 + 864 = $1256
Answer:
Income statement for Shannon Company that uses the contribution format and is segmented by divisions is attached with this answer please find it.
Explanation:
Contribution margin income statement is determines the contribution margin and Net income. Contribution margin is calculated after deducting variable costs from the revenue and the net income after deducting fixed expense from the contribution margin.
Overall
Sales Value is the sum of the sales of both North and South Segment.
Sales = $960,000
Contribution margin ratio = 34%
Net operating income = $19,200
North Divisions
Contribution margin $121,600
Contribution margin ratio 38%
As we know:
Contribution Margin ratio = Contribution margin / Sales
38% = $121,600 / Sales
Sales = $121,600 / 38% = $320,000
South Division
Margin $140,800.
Common fixed cost of $211,200 is deducted to calculate the net income.
