0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Beginning inventory plus net purchases minus ending inventory equals?
Consumption of goods for the period, aka cost of sales
A company's COGS was 4000 Determine net purchases and ending inventory given goods available for sale were 11000 and beginning inventory was 5000?
goods available for sales = beginning inventory + net purchases. So net purchases = 6000 Goods available for sale - ending inventory = COGS So ending inventory = 7000
If merchandise inventory is bing valued at cost and the purchase price is steadily failing which method of costing will yield the largest net income?
LIFO
What happens to net income if inventory is understated?
If inventory is understated, net income is also understated because cost of goods sold will be overstated
How do you calculate net purchases?
Purchase Return and Allowance- Discount From purchase = Net Purchase
Beginning inventory plus net purchases minus ending inventory equals?
Consumption of goods for the period, aka cost of sales
A company's COGS was 4000 Determine net purchases and ending inventory given goods available for sale were 11000 and beginning inventory was 5000?
goods available for sales = beginning inventory + net purchases. So net purchases = 6000 Goods available for sale - ending inventory = COGS So ending inventory = 7000
Given:gross sales, $170,000; sales returns and allowances, $9,000; beginning inventory, $8,000; net purchases, $18,000; ending inventory, $5,000; and operating expenses, $56,000?
r7ftg
If merchandise inventory is bing valued at cost and the purchase price is steadily failing which method of costing will yield the largest net income?
LIFO
What does net of something mean?
It means that you either substracted or added all relevant costs: gross inventory: 100,000 discount of 10% net inventory: 100,000 * (0.9) =90,000 The new inventory is net of the discount.
When preparing the statement of owners equity the beginning balance should be followed by what?
Plus investments plus net income (loss) less withdrawals.
What happens to net income if inventory is understated?
If inventory is understated, net income is also understated because cost of goods sold will be overstated
What is net trading?
Net Trading Assets = Accounts Recievable + Inventory - Accounts Payable
How do you calculate net purchases?
Purchase Return and Allowance- Discount From purchase = Net Purchase
What is net trading assets?
Net Trading Assets = Accounts Recievable + Inventory - Accounts Payable
What does is mean by cost of goods sold?
COGS. An income statement figure which reflects the cost of obtaining raw materials and producing finished goods that are sold to consumers. Cost of Goods Sold = Beginning Merchandise Inventory + Net Purchases of Merchandise - Ending Merchandise Inventory.
If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
