Cost of goods sold equals: Beginning inventory - net purchases + ending inventor
ID: 2481260 • Letter: C
Question
Cost of goods sold equals: Beginning inventory - net purchases + ending inventory. Beginning inventory + accounts payable - met purchases. Net purchases + ending inventory - beginning inventory. Beginning inventory + net purchases - ending inventory. The distinction between operating and nonoperating income relates to: Continuity of income. Principal activities of the reporting entity. Consistency of income stream. Reliability of measurements. Inventory records for Dunbar Incorporated revealed the following: Dumbar sold 700 units of inventory during the month. Cost of goods sold assuming LIFO would be: $1,730. $1,700. $1,720. $1,710. Inventory records for Dunbar Incorporated revealed the following: Dumbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO would be: $500. $490. $470. $480. Inventory records for Dunbar Incorporated revealed the following Dunbar sold 700 units of inventory during the month. Ending inventory assuming weighted-average of would be (round weighted-average unit cost of four decimals if necessary) $502 $490 $489 $480 Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash, They also incurred a shipping cost of $400 to get the equipment to its factory. The fair value of this equipment is $7,000. For what amount should Bad Brads BBQ record the equipment? $5,000 $5,400 $7,000 $7,400.Explanation / Answer
Answer:-
1) Beg Inventory + Net purchase - Ending Inventory
2) Continuity of income
3) 1720 ( 400*2.5+ 300*2.4)
4) 500 (500+400-700)= 200*2.5
5) 489 ( 500*2.4+400*2.5)/900 = 2.44444
( 500+400-700)= 200 * 2.44444 = 489
6) 5400 ( 5000+ 400). To record the Equipment cost incurred till put to use shall be taken.