Accounting

1. Question: (TCO4) In a merchandising business, earthy peag is equal to sales revenue minus: Your solvent: teacher comment: Merchandising companies argon those that buy products and resell them to the quietus consumer, so the greet of the product sold is usually their largest terms. Their income line of business should start with revenues minus exist of goods sold equals realize wage. Points authentic: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a exist of goods sold percentage of 80%. The gross profit to be found for sell 20 items is: Your Answer: Instructor translation: Their income statement should start with revenues minus court 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 nett in first base out method is used, cost of goods sold is assumed to incorporate of: Your Answer: Ins tructor invoice: LIFO means exist 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) minded(p) 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, expiration inventory, 20 unites Your Answer: Instructor Explanation: Units procu rable for sale (40+18+24) =82, less ending i! nventory of 20 units tells us that 62 units were sold. To determine the average cost per unit, we pauperisation the value of the total 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, roam it on our website: BestEssayCheap.com

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