Com plc bought 500 items of inventory at the price of $20 per item on 1...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another 200 items at the price of $25 per item on 1 July 20x2. On 31 December 20X2, the replacement cost was $30 per item. On that date, Com plc sold 600 items and reported a profit of $11,500 using the first-in-first-out (FIFO) method to calculate the cost of sales. What would the profit be under replacement cost accounting? Select one: O a. $11,500 O b. $18,000 O c. $6,000 O d. $5,500 O e. $3,000 O f. $12,500 Com plc bought 500 items of inventory at the price of $20 per item on 1 January 20X2, and another 200 items at the price of $25 per item on 1 July 20x2. On 31 December 20X2, the replacement cost was $30 per item. On that date, Com plc sold 600 items and reported a profit of $11,500 using the first-in-first-out (FIFO) method to calculate the cost of sales. What would the profit be under replacement cost accounting? Select one: O a. $11,500 O b. $18,000 O c. $6,000 O d. $5,500 O e. $3,000 O f. $12,500
Expert Answer:
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
Students also viewed these accounting questions
-
The balance in the office supplies account on January 1 was $10,000, supplies purchased during January were $3,000, and the supplies on hand at January 31 were $2,000. Identify how the accounting...
-
For a given amount of energy to be used for its propulsion, a spacecraft must have much larger tanks than an airplane. Why?
-
The following dimensions are for thin-walled steel tubes to be used for collecting samples of soil for geotechnical purposes: Calculate the area ratio for each case and determine which sampler would...
-
Some managers and union officials also refer to the collective agreement as what? Multiple Choice The real boss The rule book The bible The guiding framework Strategic doctrine
-
The Capricorn Company is launching a new venture in a field related to but separate from its present business. Management is proposing that financing for the new enterprise be supplied by a local...
-
The following transactions involve investments in marketable securities and are accounted for using the equity method. (1) Purchased 12,000 common shares of Barth Co. at $9 cash per share; the shares...
-
Suppose $X_{1} \sim N(10,25)$ and $X_{2} \sim N(5,4)$ in a population. You randomly select 100 samples from the population and assign treatment $A$ to half of the sample and $B$ to the rest. Simulate...
-
In general, how in your opinion did Netflix manage to put itself in the enviable position that it occupied at the outset of fiscal 2010? More specifically, how would you account for the suddenand...
-
On January 1, 2021, Company borrows $30,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $8,857, consisting of accrued interest and principal on December...
-
The evening manager of a restaurant was very concerned about the length of time some customers were waiting in line to be seated. She also had some concern about the seating times that is, the length...
-
HCI's growth to date has been financed by its profits. When the company had sufficient capital, it would open a new store. Other than scouting locations, relatively little formal analysis has been...
-
The systolic blood pressure of adults in the USA is nearly normally distributed with a mean of 117 and standard deviation of 15. Someone qualifies as having Stage 2 high blood pressure if their...
-
Ratios Using the firm's data provided below explain why the firm's ROA is less than the industry average of 43% given that the industry average asset turnover is 1.16. Sales $ 170 (mill) EBIT $ 60...
-
Question two Great-Deals Ltd (Great Deals) a company incorporated on 1 January 2018 decided to change from First-in-First out to weighted average method. The company's financial year ends on 31...
-
What is the M 2 of the fund? Use the following data: ret st.deviation beta Managed fund 23% 56% 1.3 Market 12% 22% 1 Risk free rate 1%
-
Tiko is a real estate professional representing a client who owns an aging low-rise office tower. The client would like to sell the property in 3 years but is worried he will not get the price he...
-
High Desert Pottery works makes a variety of ceramic products that it sells to retailers such as Home Depot. The company uses a job costing system in which predetermined overhead rates are used to...
-
The company manufactures three products: wooden chairs, tables and dressers. AFC started off as a 'Mom & Pop' shop but has grown rapidly. AFC uses one assembly line to build all three products,...
-
Compute the 2017 AMT exemption for the following taxpayers. a. Bristol, who is single, reports AMTI of $149,500. b. Marley and Naila are married and file a joint tax return. Their AMTI is $498,000.
-
The KL Partnership is owned equally by Kayla and Lisa. Kaylas basis is $20,000 at the beginning of the tax year. Lisas basis is $16,000 at the beginning of the year. Assume partnership debt did not...
-
A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a...
-
Enter the following transactions of an antiques shop in the accounts and extract a trial balance as at 31 March 2017. 2017 March 1 Started in business with 8,000 in the bank. 2 Bought goods on time...
-
Record the following details relating to a carpet retailer for the month of November 2017 and extract a trial balance as at 30 November 2017. 2017 Nov 1 Started in business with 15,000 in the bank. 3...
-
Record the following transactions for the month of January of a small finishing retailer, balance-off all the accounts, and then extract a trial balance as at 31 January 2016. 2016 Jan 1 Started in...
Study smarter with the SolutionInn App