Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Example on gross margin method?
To demonstrate the gross margin method of computing inventory assumes that for several Years Field Company has maintained a 30 per cent gross margin on net sales. The subsequent data for 2010 are available The January 1 inventory was USD 40000 net cost of purchases of merchandise was USD 480000 and net sales of merchandise were USD 700000. As display in Exhibit 63 Field is able to estimate the inventory for 2010 December 31 by deducting the estimated cost of goods sold from the actual cost of goods available for sale.
An alternative format for computing estimated ending inventory uses the standard income statement format and solves for the one unknown (ending inventory)
We recognize that Costs of goods available for sale-Ending inventory=Cost of goods sold
Therefore (let X = Ending inventory) USD 520000 - X = USD 490000
X = USD 30000
The gross margin method isn't precise enough to be used for year-end financial statements. At year-end a physical inventory should be taken and valued by either the FIFO, LIFO, specific identification or weighted-average methods.
CALCULATIONS VARIOUS QUESTIONS
Q. Example of Adjustments for accrued items? For instance assume Micro Train Company has some money in a savings account. On 2010 December 31 the cash on deposit has earned one
Q. Illustrate a sales cycle of company? When exploratory a company's management, sales cycle and users of financial data must be aware of any seasonal changes that may affect i
1) A) Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assu
The injection molding department of a company uses an average of 30 gallons of special lubricant a day. The supply of the lubricant is replenished when the amount on hand is 170 ga
How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.
decrease in owners equity decrease in owener''s equity
A(n) _______ loss occurs when the reduced price is below the actual cost. A. net B. operating C. absolute D. incurred
Q. What is Intangible Assets? Intangible assets consist of the nonmonetary, noncurrent, nonphysical assets of a business. Companies should charge the costs of intangible assets
A career in taxation is by no signifies limited to public accounting. for the reason that there are so many types of taxes impacting so many aspects of our lives tax specialists ac
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd