Chapter 15, Problem 29DQ

Suppose that Ivanhoe Depot Inc. has the following inventory data: July 1 Beginning inventory 24 units at $19 $456 7 Purchases 84 units at $20 1680 22 Purchases 12 units at $22 264 $2400 The company uses a periodic inventory system. A physical count of merchandise inventory on July 31 reveals that there are 40 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for July is ○ $824. 000 $800. ○ $880. ○ $776.

A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of50%?

Accurate Answer

Standard quantity.

Quick answer of this accounting

Solve both questions properly.

1.1.3 accounting .

Assume the following information

The addition of the cost of goods sold (COGS) and gross profit is the main way that a merchandising company's income statement differs from that of a service organization.  Since a merchandising business makes their money by selling material goods, sales revenue, COGS, and gross profit before operating expenditures are subtracted which are all included in its income statement.  A service company, on the other hand, does not have a COGS section because they have no inventory involved but instead generates their income through the delivery of services (Weygandt, Kimmel, & Kieso, 2022). The income statement of a merchandising company will usually have only a single-step or could have a multi-step style, with the multi-step clearly separating the net income from the operational income and gross profit.  This difference is important because COGS is a major part of financial reporting for merchandising organizations, because it has a direct impact on profitability and financial analysis…