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A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec

gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

= $65

3 0

3 years ago

A _____ negotiates with users who might have conflicting requirements or want changes that would require additional time or expe

viktelen [127]

I believe that the correct answer is b project manager<span />

7 0

3 years ago

Enterprises buys a warehouse for $ 570 comma 000$570,000 to use for its East Coast distribution operations. On the date of theâp

Nitella [24]

Answer:

$570,000

Explanation:

At the time of recording of the fixed assets, the fixed assets should be reported at purchase cost or historical price or originally cost or acquiring cost, whether all other values are given i.e appraisal value, the seller purchased value, similar warehouse book value, etc

So, in the given case, it would be recorded at $570,000 as the buyer purchase the building at this cost only.

7 0

3 years ago

As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories genera

yanalaym [24]

Answer: True

Explanation:

Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.

It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.

6 0

3 years ago

Panther Company's bookkeeper debited supplies expense for the cost of goods sold during that month. The bookkeeper discovered th

MakcuM [25]

Answer:

Cost of Goods Sold Dr.

To Supplies Expense

Explanation:

The journal entry for cost of goods sold should've been:

Cost of goods sold A/C Dr.

To Purchases A/C

(Being cost of goods sold expense recorded)

The wrong entry passed has been:

Supplies expenses A/C Dr.

To Purchases A/C

The rectifying (correcting) journal entry should be:

Cost of Goods Sold A/c Dr.

To Supplies Expenses A/C

(Being rectification entry for cost of goods sold recorded)

Cost of goods sold is an expense and expenses should be debited.

At the same time, purchase being a nominal account, crediting it would reduce the purchases balance.

Supplies expense was wrongly debited so it has been credited to cancel out the effect.

7 0

3 years ago