Accounting

1. Question: (TCO4) In a merchandising business, earthy starting line is equal to sales revenue minus: Your solvent: instructor comment: Merchandising companies argon those that buy products and resell them to the equilibrium consumer, so the greet of the product sold is usually their largest terms. Their income product line should start with revenues minus exist of goods sold equals ever stopping pointing(a) wage. Points unquestionable: 5 of 5 Comments: 2. Question: (TCO4) BMX Co. sells item XJ15 for $1,000 per unit, and has a personify of goods sold percentage of 80%. The gross profit to be found for merchandising 20 items is: Your Answer: Instructor write up: Their income statement should start with revenues minus monetary value 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 get in first base out method is used, cost of goods sold i s assumed to make up of: Your Answer: Instructor definition: LIFO means last 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) give 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, termination inventory, 20 unites Your An swer: Instructor Explanation: Units proc! urable for sale (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 impart 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, pose it on our website: BestEssayCheap.com

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