What is a cost-flow assumption? Why is a cost-flow assumption necessary in accounting for inventory?
Answer to relevant QuestionsIf a company had two units that cost $1 each in its beginning inventory and purchased two more units for $2 each, what would be the cost of goods sold associated with a sale of three units under each of the following ...Bonsai Board’s income statement data for the year ended December 31, 2014, follow. Sales Revenue ....... $237,500 Cost of Goods Sold .... 142,800 Gross Profit ........ $ 94,700 Assume that the ending inventory was ...Mike’s Powersports uses the (perpetual) average cost inventory method. Mike’s Powersports started August with 10 helmets that cost $54 each. On August 19, Mike’s Powersports bought 15 helmets at $56 each. On August 28, ...Kimco’s sales for the year 2014 were $575,000 ($230/unit). On January 1, 2014, Kimco’s beginning inventory showed 450 units, costing $40,500. During 2014, Kimco purchased 2,650 units at $95 each. Kimco’s income ...Healthy Bite Mart reported the following comparative income statement for the years ended November 30, 2014 and 2013. During 2014, Healthy Bite Mart discovered that the 2013 ending inventory, as previously reported, was ...
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