1- Hani has an inventory at 1/1/2020 of €60,000 and purchases during 2020 of €280,000, both at cost. Sales at selling priceamount to €200,000. Compute the estimated inventory at 31/12/2020, assuming that the gross profit is 25% of sales b va-200UU- 2300001500002- Which of the following is a product cost as it relates to inventory?a Selling costs.b. Interest costs.C.Raw materials.d. Abnormal spoilage.

Hi student Since there are multiple questions, we will answer only first question.

Answered: 2- Which of the following is a product…

2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b. Interest costs. C. Raw materials. d. Abnormal spoilage.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

1- Hani has an inventory at 1/1/2020 of €60,000 and purchases during 2020 of €280,000, both at cost. Sales at selling price
amount to €200,000. Compute the estimated inventory at 31/12/2020, assuming that the gross profit is 25% of sales b v
a-200UU
- 230000
150000
2- Which of the following is a product cost as it relates to inventory?
a Selling costs.
b. Interest costs.
C.
Raw materials.
d. Abnormal spoilage.

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