Answer:
a. Gross Profit = $200 and Ending Inventory = $280
b. Gross Profit = $160 and Ending Inventory = $220
c. Gross Profit = $180 and Ending Inventory = $240
Explanation:
<u>FIFO</u>
FIFO method assumes that the first goods received by the business will be the first ones to be delivered to the final customer.
<u>Gross Profit</u>
Sales ( 1 × $300) $300
Less Cost of Sales ( 1 × $100) ($100)
Gross Profit $200
Inventory = Units left × earliest price
= 2 × $140
= $280
<u>LIFO</u>
LIFO method assumes that the last goods purchased are the first ones to be issued to the final customer.
<u>Gross Profit</u>
Sales ( 1 × $300) $300
Less Cost of Sales ( 1 × $140) ($140)
Gross Profit $160
Inventory : (1 × $100 + 1 × $120) = $220
<u>Weighted Average Cost (AVCO)</u>
The average cost of goods held is recalculated each time a new delivery of goods is received . Issues are then priced at this weighted average cost.
<u>Gross Profit</u>
Sales ( 1 × $300) $300
Less Cost of Sales ( 1 × $120) ($120)
Gross Profit $180
Inventory = Units left × average price
= 2 × $120
= $240
Answer:
B. False
Explanation:
Even with the use of computers, <em>ethics also vary from one company to the other. </em>For example, some of the major IT organizations that are professional in nature have their own set of Code of Ethics. So, this means that they are expecting their members to follow their own Code of Ethics in achieving their mission.
Not everyone is subscribe to the ethical codes online, thus this makes the statement above as "false." Ethics are considered non-universal even online because of<em> </em><em>people's different education backgrounds.</em>
So, this explains the answer.
Answer:
31 March Supplies Expense 1500 Dr
Supplies Account 1500 Cr
Explanation:
We prepare the adjusting entry at the end of the period. Here the adjusting is done at the end of the month.
Fost, we calculate the value of supplies we have.
Supplies = Opening balance + purchases
Thus, supplies account has a balance of = 500 + 1200 = $1700
During the month, we used supplies of $1500. Thus the remaining balance in supplies account at the end of the month is = 1700 - 1500 = 200
To reduce the supplies account balance and charge the value of used supplies, We debit the supplies expense account by $1500 and credit the supplies account by $1500.
Answer:
<h2>For an investment to be considered as current asset,it has to be convertible into cash and within one year of business operation or current operating cycle,whichever is longer.Hence,the correct answer is option C.</h2>
Explanation:
In Business Studies or Accounting,current assets are identified as those assets which are normally convertible into cash value usually within 1 year of business operation and used to pay any current liability.Therefore,any short term investment in business which can be used or utilized during the regular business operation and converted into cash value within one year of operation can be termed as current assets.Therefore,to satisfy the conditions to qualify as current asset,any business investment has to be cash convertible which has to be conducted within one year of operation or the operating cycle,depending on their duration.