Cost of goods sold

elasticity of demand between all Nike shoes sold in Canada and all breads sold in Canada. I argue that all Nike shoes sold in Canada have a higher price elasticity of demand than all breads sold in Canada due to three factors: the availability of substitute goods, necessity and percentage of income. The first factor is the availability of substitute goods, which are goods that can be utilized instead of the original good. If there is a substitute good available, the demand is likely to change more

sheet? Morrissey Forgings, Inc. Balance Sheet 1983  b. What is your estimate of Return on Assets in 1983? (Assume a 40% tax rate.) How is the company doing in 1983? For simplicity, you may assume that individual price and cost components have not changed 1983 and 1985. From the Income statement we have that profit before taxes equals to $1,790,000.00. $1,790,000.00 * 40% (tax rate) = $716,000.00 Net income = Profit before taxes – Taxes = $1,790,000 - $716,000 =

INVENTORY – PERIODIC INVENTORY SYSTEM In a Periodic Inventory System, no effort is made to keep up – to – date records of either the inventory or the cost of goods sold. Instead, these amounts are determined only periodically __ usually at the end of each year. It is used by very small businesses having manual accounting systems. Questions 1 – 3 (Meigns & Meigns), Question 4 (Fess & Warren) Question 1:- Mach IV Audio uses periodic inventory system. One of the

Introduction Inventories are those asset items which are either used for the production of goods to be sold or used directly for the purpose of sales. It is a major portion of current assets and thus there is need to do careful investment in the same. Different kind of companies has different forms of inventory. For example; a company that is into direct selling of readymade goods will have only merchandise inventory in their accounts while the manufacturing companies will have inventory in three

INVENTORIES: A COST-BASIS APPROACH IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer T F F F T T F T F T T F F T T F F T F T No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Description Work-in-process inventory. Merchandising and manufacturing inventory accounts. Perpetual inventory system. Determining when title passes. Inventory errors. Overstatement of purchases and ending inventory. Period vs. product costs. Reporting Purchase

Revenue Recognition & Matching Concept Part I Revenue recognition is a significant issue in accounting because of integrity and fairness in the financial statements that are depended upon by investors, creditors, and other financial statement users. When revenue is not properly recognized in financial statements, material misstatements can occur, which misleads users. Even though the matching principle is not the same as revenue recognition, it is related in the sense of matching expenses spent

goodwill be reported for 2009? A.$150,000 B.$200,000 C.$50,000 D.$0 E.$135,000 Chapter 5 3. On January 1, 2009, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $450,000 goods which cost $330,000. Gallow still owned 15% of the goods at year-end. Gallow 's reported net income was $204,000 and Race 's net income was $806,000. Race decided to use the equity method to account for this investment. What was the non-controlling

large company. Actual costs Static Incurred budget Activity level (in units) 800 750 Variable costs: Indirect materials $6,850 $6,600 Electricity $1,312 $1,275 Fixed costs: Administration $3,570

FN: Reporting LO: 1 Level: Easy 3. Normally a job cost sheet is not prepared for a job until after the job has been completed. Ans: False AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 2 Level: Medium 4. Job cost

relationships Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. How many patient days does the hospital need to break even? 4,320,000/180.00=24,000 What level of revenue is needed to earn a target income of $540,000? 180+45=225*24,000=540,000 If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break-even point as determined in part (a)? $45-$36=$9