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

An employee’s ability to perform his or her job effectively is referred to as

Zigmanuir [339]

Answer:

Option B is your answer ☺️☺️☺️

6 0

3 years ago

During the year a donor pledged $1,000,000 in funds to a not-for-profit private charter school. The school will receive the pled

KonstantinChe [14]

Answer:

D) It would not be recorded.

Explanation:

FASB means Financial Accounting Standards Board.

Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US.

No matter what kind of restriction a donor might impose, FASB standards require nonprofits to report finances in a way that makes it clear which funds have donor restrictions and which funds come without donor restrictions. FASB standards are in three categories: “unrestricted,” “temporarily restricted,” and “permanently restricted.”

Unrestricted are those items that have no donor-imposed restrictions

Temporarily Restricted are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year)

Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched.

Since the school will recieve the pledge ONLY if it is able to raise $500,000 in funds over the next year, then the pledge would not be recorded

3 0

3 years ago

_____ represent the interests of union members in their relations with their immediate supervisor and other members of managemen

Pavel [41]

Union stewards is what they call the one who represent the interest of the union members in their immediate supervisor and other members of the management. Union stewards are full-time employees at the workplace and generally are not paid by the union.

6 0

2 years ago

Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Ch

Vera_Pavlovna [14]

Answer:

D. Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss

Explanation:

6 0

3 years ago

has excess cash of $15,000 at the end of the harvesting season. will need this cash in four months for normal operations. Requi

kolezko [41]

Answer:

Some of the major reasons why Garden Haven might to choose to either invest in debt or equity securities are as follows;

They want to generate earnings. It is better to earn money from excess cash than keep it idle.
They invest in debt or securities because they provide liquidity. Investments in debt or securities can be sold through exchange the day decision is taken to see and convert it cash .
To meet cyclical cash needs.

They may have policies as regard to quantum of cash that can be kept .

In terms of classification, Garden Haven's investment falls in short term investments.

Investments made for a period less than a year are classified as short term investments. Investments made for longer than one year are classified as long term investments. Since Garden Haven is making this investment for four months, this is be classified as short term investment.

8 0

3 years ago