Accounting

1. Question: (TCO4) In a merchandising business, earthy lucre is equal to sales revenue minus: Your solvent: teacher comment: Merchandising companies argon those that buy products and resell them to the rest period consumer, so the greet of the product sold is usually their largest terms. Their income bank line should start with revenues minus exist of goods sold equals glaring wage. Points trustworthy: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a monetary value of goods sold percentage of 80%. The gross profit to be found for change 20 items is: Your Answer: Instructor comment: Their income statement should start with revenues minus follow of goods sold equals gross profit. (20*$1,000) – [20($1,000.80) ] = Gross Profit. Points Received: 0 of 5 Comments: 3. Question: (TCO4) When the suffer in first base out method is used, cost of goods sold is assumed to rest of: Your Answer: I nstructor account: LIFO means wear in, first out, so the last units purchased are sold and the remaining units are assumed to consist of the first units. Points Received: 0 of 5 Comments: 4. Question: (TCO4) prone the following data, calculate the gross profit using the average-cost method, if the selling price was $20 per unit.

Date, Item, Unit 1/1, Beginning inventory, 40 units at $12 per unit 3/5, Purchase of inventory, 18 units at $14 per unit 5/30, Purchase of inventory, 24 units at $18 per unit 12/31, destination inventory, 20 unites Your Answer: Instructor Explanation: Units procurable for s ale (40+18+24) =82, less ending inventory of! 20 units tells us that 62 units were sold. To determine the average cost per unit, we pauperisation the value of the join units gettable for sale, (40*$12) +(18$14) +(24$18) =$1,164. Total Value available divided by total units available equals average cost per unit, $1,164/82=$14.20 per unit. Ending inventory value is 20units at $14.20 and the cost of goods sold is 62 units at $14.20....If you want to get a full essay, articulate it on our website: OrderCustomPaper.com

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