Connie Robin the boy wonder Gibson
June being unfaithful, 2013
A. $181, 500
N. $41, two hundred
C. $38, 000
D. $17, nine hundred
E. $8, 500
Farreneheit. $63, four hundred
BE5-2: Pocras Company buys merchandise about account coming from Wedell Organization. The selling price of the products is $900 and the cost of the goods distributed is $590. Both companies use never ending inventory devices. Journalize the transactions on the books of both firms. Pocras Business:
Accounts Receivable: Debit = $900, Credit rating = $900.
Cost of Merchandise Sold: Charge = $590, Credit sama dengan $590.
BE6-5: In its initial month of operation, Moraine Company purchased 100 products of inventory for $6, then 200 units intended for $7, and lastly 140 units for $8. At the end with the month, one hundred and eighty units continued to be. Compute the quantity of phantom profit that would result if the organization used FIFO rather than LIFO. Explain for what reason this quantity is referred to as phantom profit. The organization uses the periodic technique. The cost of goods sold can be $240 fewer when FIFO is used when LIFO is utilized. This is the volume that is the phantom profit. It really is considered to be the " phantom profitвЂќ since when using FIFO it has the exact current prices to the old inventory costs. In order for the company to replace the units they will sold, they are going to have to pay the larger current price of $8 per device.
BE6-7: Olsson Video Center accumulates the subsequent cost and market info at January 31.
Products on hand Categories Price Data Market Data Video cameras $12, five-hundred $13, 400 Camcorders being unfaithful, 000 on the lookout for, 500 Digital video disks 13, 500 12, 2 hundred Compute the lower-of-cost-or-market valuation for Olsson inventory. Solution: The lower benefit for each products on hand type is: cameras $12, 500, video cameras $9, 500, and Dvd videos $12, two hundred. The...