All categories

3 years ago

The Breeze trading company discloses the following information for the month of August 2016.

Business

1 answer:

s344n2d4d5 [400]3 years ago

3 0

Answer:

Periodic system: FIFO ; COGS= $11400, closing inventory = $7700, gross profit=$14000. LIFO = closing stock= 6600, COGS=$12500, gross profit=12900.

perpetual system: FIFO ;COGS=11400, closing stock= $7700, gross profit= $11400. LIFO ; COGS=$12500, closing stock= $6600, gross profit = $12900

Reason for a higher gross profit in FIFO than LIFO is some of the stock ends up not being sold as they are maybe old, out-fashioned, and obviously new trend come about everyday.

Explanation:

PERIODIC

DR purchases account CR

11-Aug bank 9600 inventory 16100

20-Aug bank 6500

16100 16100

FIFA cost of sales

opening balance 3000

purchases 16100

closing 7700

cost of sales 11400

gross profit 14000

sales 25400

cost of sales 11400

closing inventory 7700

200 units from 11 aug 1200

1000 units from 20 aug 6500

LIFO

closing balance 6600

600 units from 01 aug 3000

600 units from 11 aug 3600

Cost of sales

opening stock 3000

purchases 16100

closing stock 6600

cost of sales 12500

gross profit 12900

sales 25400

cost of sales 12500

perpetual inventory system

FIFA

cost of sales 11400

10-Aug 2000

15-Aug 5800

27-Aug 3600

You might be interested in

Organizations refers to _____. demographics communication competition possible customers

ivolga24 [154]

Answer:

Organizations refers to demographics

Explanation:

8 0

2 years ago

Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your m

luda_lava [24]

Answer:

All the options written are the steps involved in solving the problem. The formula that would be used is compounding formula because we have future value which is $150,000 and rate of return which is 10.25%. Furthermore, here n is 10 years time.

The formula is:

Future Value = Present Value * (1 + r)^n

$150,000 = Present Value * (1.1025)^10

$150,000 = Present Value * 2.6524

$150,000 / 2.6524 = Present Value

Present Value = $56553

So the amount that we should deposit in mutual funds today to buy Ferrari is $56553. The difference is due to rounding off.

3 0

2 years ago

Firm ML, a noncorporate taxpayer, exchanged residential rental property for 20 acres of investment land with a $200,000 FMV. ML

wlad13 [49]

Answer:

a. $222,000

b. $22,000

c. $158,000

Explanation:

a. FMV of rental property = FMV of land received + Received cash

= $200,000 + $22,000

= $222,000

b. FMV of land received $200,000

Cash boot received $22,000

Less: Basis of rental property $158,000

Realized gain $64,000

Recognized gain (Boot) $22,000

this transaction qualify for a like-kind exchange under section 1031 When no gain or loss is recognized on an exchange but on Boot received. But recognized gain will be lower of boot amount of realized gain.

c. Carryover basis of original assets = FMV of rental property - Realized gain

= $222,000 - $64,000

= $158,000

8 0

2 years ago

A computer company has $3,000,000 in research and development costs. Before accounting for these costs, the net income of the co

AfilCa [17]

Answer:

D : $600,000 loss

Explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

So,The net income or net loss would be

= Net income - research and development costs

= $2,400,000 - $3,000,000

= $600,000 loss

6 0

2 years ago

Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few

guajiro [1.7K]

Answer:

Bias

Explanation:

Bias is a preference towards something do to ignorance. he is being biased becuase he never goes to other stores to see if they are better

3 0

3 years ago