1. A company had expenses other than cost of goods sold of $262,000. Determine s
ID: 2503756 • Letter: 1
Question
1. A company had expenses other than cost of goods sold of $262,000. Determine sales and gross profit given cost of goods sold was $106,000 and net income was $162,000.
3.A company has sales of $1,570,000, sales discounts of $109,000, sales returns and allowances of $130,000, shipping charges of $22,000, sales commissions of $41,000, net income totaled $270,500, and cost of goods sold of $427,000. What is the net sales amount for the period?
4. Acme-Jones Corporation uses a LIFO perpetual inventory system.
August 2, 25 units were purchased at $12 per unit.
August 5, 10 units were purchased at $13 per unit.
August 15, 12 units were sold at $25 per unit.
August 18, 15 units were purchased at $14 per unit.
What was the amount of the cost of goods sold?
5. Managers are able to make important decisions correctly using erroneous inventory balances because inventory errors are self-correcting and, as a result, are less serious. True or False?
6. In a perpetual inventory system, the merchandise inventory account reflects the cost of goods available for sale. True or False?
Explanation / Answer
a) Net Income= 162,000
Other Expenses=262,00
Gross Income= Net Income + Other Expenses=162000+262000=$424,000
Sales=Gross Income + COGS=424,000+106,000=$530,000
b) Net Sales = Gross sales, - sales discounts - sales returns and allowances =$1,570,000-$109,000-$130,000=$1,331,000
c) LIFO system,
12 units were sold on Aug 15, So 10 units came from inventory on Aug 5 and 2 on Aug 2
COGS= 10*13+2*12= $154
d) False, bcoz in many case trackign inventory accurately is required..For example, food products with low shelf life, high value items like diamond
e) True, as it tracks inventory consitnuously
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.