Homework Help is Here – Start Your Trial Now!
Business
Accounting
An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in transportation cost, $2,000 in labor and parts to upgrade the computers and $300 to advertise them. What is the total cost of the inventory to the electronics retailer that would be included in the value of inventory? Multiple Choice C $22,800 $20,000 $20,500 $22,500

An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in transportation cost, $2,000 in labor and parts to upgrade the computers and $300 to advertise them. What is the total cost of the inventory to the electronics retailer that would be included in the value of inventory? Multiple Choice C $22,800 $20,000 $20,500 $22,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Thank you
An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in transportation cost, $2,000 in labor and parts to upgrade the computers and $300 to advertise them. What is the total cost of the inventory to the electronics retailer that would be included in the value of inventory? Multiple Choice $22,800 $20,000 $20,500 $22,500 < Prev 7 of 8 ⠀ Next
Transcribed Image Text:An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in transportation cost, $2,000 in labor and parts to upgrade the computers and $300 to advertise them. What is the total cost of the inventory to the electronics retailer that would be included in the value of inventory? Multiple Choice $22,800 $20,000 $20,500 $22,500 < Prev 7 of 8 ⠀ Next
Zorro Company buys from wholesalers and resells a single product that costs $10 each unit. All purchases are paid in cash. There is a sales commission paid of 20% on each unit sold. Sales commissions and sales proceeds are also all in cash. Each unit sells for $30. In year 1 the firm purchased 20,000 units and sold 15,000 units. In year 2 it purchased 20,000 units and sold 20,400 units. The firm uses FIFO inventory method for inventory costing. Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $1
Transcribed Image Text:Zorro Company buys from wholesalers and resells a single product that costs $10 each unit. All purchases are paid in cash. There is a sales commission paid of 20% on each unit sold. Sales commissions and sales proceeds are also all in cash. Each unit sells for $30. In year 1 the firm purchased 20,000 units and sold 15,000 units. In year 2 it purchased 20,000 units and sold 20,400 units. The firm uses FIFO inventory method for inventory costing. Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $1
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS