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EleoNora [17]
3 years ago
9

Tetra Co. uses the perpetual inventory system and a FIFO cost flow method. On January 1, the company purchased 2,000 units of in

ventory that cost $4.00 each. On January 12, the company purchased an additional 3,000 units of inventory at a cost of $4.20 each. On January 20, Tetra Company sold 4,000 units of inventory. Assuming that Tetra Co. uses the perpetual inventory method and a FIFO cost flow method, how would the entry to recognize the cost of goods sold affect the financial statements?A. Increase inventory and increase cost of goods sold by $16,400B. Decrease cost of goods sold and increase inventory by $16,600C. Increase cost of goods sold and decrease inventory by $16,400D. Increase inventory and increase cost of goods sold by $16,600
Business
2 answers:
TEA [102]3 years ago
6 0

Answer:

C. Increase cost of goods sold and decrease inventory by $16,400

Explanation:

FIFO method Sales the Older Inventory Acquired first followed by the Recent Acquired Inventory.

<u>Cost of Sales Calculation</u>

January 20 : 2000 units × $4.00 = $8,000

                     2000 units × $4.20 = $8,400

Total                                               = $16,400

<u>Journal</u>

Cost of Sales $16,400 (debit)

Inventory $16,400 (credit)

love history [14]3 years ago
4 0

Answer:

C. Increase cost of goods sold and decrease inventory by $16,400

Explanation:

When Inventory is purchased, Debit Inventory and credit Cash/Accounts payable. As Inventories are sold, debit (increase) cost of goods sold (with the cost of the items sold) and Credit (decrease) Inventory account.

Using the first in first out method, the 4,000 units sold must have consisted of the following purchases;

  • 2000 units on January 1
  • 2000 units from the 3000 on January 13

Hence the cost of goods sold

= 2000 * $4 + 2000 * $4.20

= $16,400

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faltersainse [42]

4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.

The 4 year college degree is tantamount to the Bachelor degree achieved from University, college etc.

Usually, the position of forestry and related job requires the minimum of Bachelor degree from related course in the field of soil and forest conservation.

Hence, the 4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.

Therefore, the Option C is correct.

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6 0
2 years ago
Individuals who want to work and have searched for work in the prior​ year, but are not currently looking for work because they
Makovka662 [10]

Answer:

Discouraged; are not

Marginally attached; are not

Employed; are

Explanation:

Those workers who have had a job in past but are currently unemployed and are not currently looking for work because they were not able to find job are called discouraged workers.

They believe they will not find a job now so have stopped looking. These workers are not included in the labor force.

Marginally attached workers are those workers who are not employed but are not looking for work because of a number of reasons such as illness, school, responsibility, etc. These workers are also not included in labor force.

Those workers who would like to have full-time job but are employed part-time are considered employed. These workers are included in the labor force.

8 0
3 years ago
Multiple-step income statements show
devlian [24]

Answer:

both income from operations and gross profit.

Explanation:

As we know that

The income statement recognized the revenues earned and the expenses incurred for a particular period

And the multiple-step income statement refers to the classification of expenses like

The format is shown below:

Sales                                   XXXXX

Less: Cost of goods sold  XXXXX

Gross profit                        XXXXX

Less: Operating expenses

Administrative expenses     XXXXX

Selling expenses                  XXXXX

Operating income                 XXXXX

Non operating income or others

Less: Interest expense           XXXXX

Rent revenue                          XXXXX

Net income                             XXXXX

Therefore, the third option is correct

4 0
3 years ago
On January 1, 20X7, Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash. Shove
maria [59]

Answer:

$18,750

Explanation:

Income from investment = 25% * $75,000

Income from investment = 0.25 * $75,000

Income from investment = $18,750

The amount that will be reported by Poke as income from its investment in Shove for 20X8, if it used the equity method of accounting is $18,750

4 0
2 years ago
1. Which resource management task determines the type, quantity, receiving location, and users of resources? A. Track and Report
Rasek [7]

Answer:

C. Identify Requirements

Explanation:

Individuals who are assigned the responsibility of resource management should first of all identify resource requirements.

Identification of requirements relates to the quantum of resources required, the place where they are required and the recipient of those resources.

Resource needs and requirements change from time to time as per the situation. Resource requirements mean the quantity and the kind of resources that would be required for completion of a project.

Thus, Identify Requirements determines the type, quantity, receiving location and the users of those resources.

8 0
3 years ago
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