All categories

3 years ago

Cost of Goods Sold Section, Multiple-Step Income Statement

Business

1 answer:

Katen [24]3 years ago

8 0

Answer and Explanation:

The preparation of the cost of goods sold section of a multiple-step income statement is presented below:

<u>Cost of goods section</u>

<u>Multiple-income statement</u>

Opening inventory $37,000

Estimated return inventory $1,000

Purchase $102,000

Less purchase returns -$4,200

Less: Purchase discount -$2,040

Add: Freight in $800

Less: closing inventory -$30,500

Less: estimated return inventory -$1,500

Cost of goods sold $102,560

You might be interested in

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot...........................

Gnoma [55]

Answer:

The Wall Street Journal Reports

a. The Swiss franc was selling at a premium in the forward market.

b. The 30-day forward premium was: $0.0049.

c. The 90-day forward premium was: $0.0099.

d. Dollars to receive from a 90-day forward contract is $95,310.

Explanation:

a) Data and Calculations:

Spot and forward rates for the Swiss franc ($/SF):

Spot............................................ $0.9432

30-day forward.......................... $0.9481

90-day forward.......................... $0.9531

180-day forward........................ $0.9594

Premium:

30-day forward.......................... $0.9481

Spot............................................ $0.9432

Premium = $0.0049

90-day forward.......................... $0.9531

Spot............................................ $0.9432

Premium = $0.0099

180-day forward........................ $0.9594

Spot............................................ $0.9432

Premium = $0.0162

Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)

6 0

3 years ago

A company has two different products that are sold in different markets. Financial data are as follows: Product A Product B Tot

svet-max [94.6K]

Answer:

Effect on income= $400 increase

Explanation:

Giving the following information:

Product A Product B Total

Revenue $ 9,400

Variable cost (9,800)

Fixed cost (allocated) (2,100)

Operating income (loss) $(2,500)

Effect on income= operating income - fixed costs

Effect on income= -2,500 + 2,500= 400 increase

3 0

4 years ago

Why was hop frog a triplicate treasure to the kink how did the gesture get his name

Elden [556K]

Answer:Because of his physical deformity, which prevents him from walking upright, the King nicknames him "Hop-Frog".

5 0

3 years ago

A former advertising campaign for GEICO Insurance used the slogan "So easy, even a caveman could do it" to emphasize the ease of

alex41 [277]

Answer:

positioning strategy.

Explanation:

Developing a marketing strategy aimed at influencing how product is perceived in comparison to competiton. It includes four steps which are:

1. Analyse

2. Competitive advantage

3. Marketing mix

4. Evaluate

8 0

3 years ago

Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead

Oxana [17]

Answer:

(a) Plant wide predetermined overhead rate:

$=\frac{Total\ manufacturing\ overhead}{Total\ direct\ labor\ hours}$

$=\frac{23,400,000}{780,000}$

= 30

Manufacturing overhead applied Job A:

= Total direct labor hours × Plant wide predetermined overhead rate

= 15 × 30

= 450

Manufacturing overhead applied Job A:

= Total direct labor hours × Plant wide predetermined overhead rate

= 9 × 30

= 270

(b) Departmental predetermined overhead rates:

$Machining =\frac{Manufacturing\ overhead}{Machine\ hours}$

$Machining =\frac{22,500,000}{750,000}$

= 30

$Assembly =\frac{Manufacturing\ overhead}{Labor\ hours}$

$Assembly =\frac{900,000}{750,000}$

= 1.2

Manufacturing overhead applied Job A:

= (Machining machine hours × 30) + (Assembly direct labor hours × 1.2)

= (11 × 30) + (10 × 1.2)

= 330 + 12

= 342

Manufacturing overhead applied Job B:

= (Machining machine hours × 30) + (Assembly direct labor hours × 1.2)

= (12 × 30) + (5 × 1.2)

= 360 + 6

= 366

4 0

3 years ago