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. Starting inventory and net cost of purchases?
Hanlon's start inventory (USD 24000) plus net cost of purchases (USD 166000) is equivalent to cost of goods available for sale (USD 190000). The firm subtract the ending inventory cost (USD 31000) from cost of goods available for sale to arrive at cost of goods sold (USD 159000).
Another method of looking at this relationship is the following diagram Starting inventory and net cost of purchases combine to form cost of goods available for sale. Hanlon divides the cost of goods obtainable for sale into ending inventory which is the cost of goods not sold and cost of goods sold.
To continue the computation appearing in Exhibit 38 net cost of purchases (USD 166000) is equal to purchases (USD 167000) less purchase discounts (USD 3000) and purchase returns and allowances (USD 8000) plus transportation-in (USD 10000).
Companies use periodic inventory procedure for the reason that of its simplicity and relatively low cost. But periodic inventory procedure provides little control over inventory. Firms suppose any items not included in the physical count of inventory at the end of the period have been sold. Therefore they mistakenly assume items that have been stolen have been sold and include their cost in cost of goods sold.
To exemplify suppose that the cost of goods available for sale was USD 200000 as well as ending inventory was USD 60000. These figures propose that the cost of goods sold was USD 140000. Now assume that USD 2000 of goods were actually shoplifted during the year.
If such goods hadn't been stolen the ending inventory would have been USD 62000 and the cost of goods sold only USD 138000. Therefore the USD 140000 cost of goods sold computed under periodic inventory procedure includes both the cost of the merchandise delivered to customers and the cost of merchandise stolen.
O B JECTIVES OF FINANCIAL STATEMENTS The fundamental purpose of financial statements according to AICPA is 'to offer qualitative financial information concerning to the busi
An accounting is a service function. The main accounting executive through whatever name he is termed as holds a staff position except inside his own department where he exerts aut
Two techniques of accounting for inventory are perpetual inventory procedure and periodic inventory procedure. Under perpetual inventory procedure the inventory account is constant
Amounts paid on June 30 for a 1-year insurance policy. Is this a pre¬paid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing.
Q. Underlying assumptions or concepts of accounting? The major underlying assumptions or concepts of accounting are (a) business entity (b) going concern (continuity) (c) money
twhat is debit?
Why to and by using in journal, trading a/c, p&l a/c and ledger?
implication of applying accounting concepts
matt schmidt company''s ledger shows the amount of
Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long term investment for $900,000. During the year, Paxton Corporation reported net income of $300,
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd