to one accounting period. The Trading A/c - the purpose of the trading A/c is to calculate the Gross Profit (π) or Gross Loss. The Gross Profit (π) - is the revenue remaining after the cost of sales or the cost of goods sold has been deducted from the sales figure. The Gross Loss - is when the cost of goods sold exceeds the sales revenue. The Profit and Loss A/c - is to calculate the net profit (π) of the business. The Net Profit (π) - is basically revenue remaining after the business operating
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Q1: Assume Amazon .com began June with 10 units of inventory that cost a total of $190. During June‚ Amazon purchased and sold goods as follows: June 8 Purchase 30 units @ $20 June 14 Sale 25 units @ $40 June 22 purchase 20 unit @ $22 June 27 Sale 30 unit @ $40 Requirements: Under the FIFO and LIFO method 1. How much is Amazon’s cost of goods sold 2. How much is Amazon’s gross profit or loss 3. Journalize all Amazon’s inventory transactions for June. 4. Which method maximizes gross profit? Q2:
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sales that would normally have occurred in 1998 were recorded in 1997. Assuming a positive gross profit on these sales‚ earnings in 1997 is inflated. Requirement 2 A customer would probably not be expected to pay for goods purchased using this bill and hold strategy until the goods were actually received. Receivables would therefore increase. Requirement 3 Sales that would normally have been recorded in 1998 were recorded in 1997. This bill and hold strategy shifted sales revenue and therefore
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goals of the organization and developed a clear vision of exactly how operations will help achieve them. It involved translating the goals into implications for the operation’s performance‚ objectives‚ quality‚ speed‚ dependability‚ flexibility and cost especially at their distribution centers. Management knew inventories are considered an important asset and are critical for business success. Arrow used a lot of technology and inventory data at Arrow were extremely accurate. In order to keep inventory
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Year Ended December 31 Ending Inventory at Year-End Costs Cost Index (Relative to Base Year) 2010 $56‚160 1.04 2011 $62‚700 1.10 2012 $58‚800 1.20 2013 $76‚230 1.21 Required: Compute XYZ’s ending inventory for each of the years ended December 31‚ 2010‚ 2011‚ 2012 and 2013. Dollar Value LIFO Date of dollar-value calculation Inventory stated in current year costs Price Index Inventory stated in base-year costs Increase (decrease) Adjusted Layers Reported Ending
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2 A. What was Topps’ inventory turnover ratio and average days to sell inventory for 2006 and 2005? In order for one to completely understand what inventory turnover ratio is‚ it is important to define it. Inventory turnover ratio is the cost of goods sold divided by inventory (Edmonds‚ et al.‚ 2007). In 2006‚ Topps company had a turnover ratio of 5.38‚ compared to 5.74 in 2005. These figures show that Topps had a better year in 2005. 2006 was the turning year for Topps’‚ it was a restructured
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Shuman $1‚594. Assume that all sales personnel are on salary (no commission) and that general overhead costs are fixed. What is the dealership incremental gross profit on the total transaction (i.e.‚ new and repaired-used car sold)? For New-sales Sales of new car $14‚400 less: Cost of a new car sales $12‚240 Net new-car gross profit $2‚160 For used-car Sales of used car $7‚100 less: Cost of used car $6‚500 Service work on $1‚594 reconditioning Net used-car gross profit $(994) Dealership
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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|probably has access|in and out. It also |and internet | | | |perform tasks and sync up |to this system and |Calculates the Cost of | | | | |totals for sales and |it is mainly used |Goods Sold | | | | |inventory |for sales totals | |
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business. A manual inventory system relies heavily on the actions of people‚ which increases the possibility of human error. People might forget to record a transaction or simply miscount the number of goods. This results in needless additional orders that increase the business inventory carrying costs and use up precious storage space. Inaccurate physical counts could also result in not ordering enough of a product‚ meaning the business could run out of a crucial item at the wrong time. Keeping track
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