WHAT IS THE COST OF SALES?
Q: What is Day's-sales-outstanding ratio?
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Why does Sales discounts are variable consideration?
A: Variable considerations: Variable consideration refers to the amount that the corporation is…
Q: What is a transfer price? What are the three main approaches to setting transfer prices?
A: Transfer pricing: Transfer pricing refers to the setting of prices for goods and services that are…
Q: Define the term sales mix.
A: The sales mix is a calculation that determines the proportion of each product a business sells…
Q: What is Dollar-Value LIFO Retail Method ?
A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…
Q: What is the formulae to find New sales level?
A: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. or
Q: Define the term profit Margin on Sales?
A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…
Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…
A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…
Q: Define return on sales ( or profit margin).
A: Financial ratios represent the accounting ratios computed by the management by using elements of…
Q: What is the percentage of sales approach
A: Percentage of Sales Approach This is an important tool in which the management are using for the…
Q: what is profitability ratio?
A: Financial ratios provide information related to the company. There are various types of ratios like…
Q: What is the Price Earnings Ratio?
A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…
Q: culate sales
A: Current month Ending Inventory Will be the next month beginning inventory.
Q: What are the optimal prices and profits for selling the goods seperately?
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: How is the profit margin on sales calculated?
A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…
Q: ferent between Informal and formal cost of sales
A: Step 1 The cost of sales is the amount of all expenses incurred in the production of a product or…
Q: What would be the sales value or turnover corresponding to the threshold of profitability
A: Sales turnover: It is the company's total amount of services / products sold over a given period of…
Q: What is the market value of goods
A:
Q: What is operating profit margin?
A: The operating profit is the profit earned during the year after deducting all the operating expenses…
Q: Is the cost of sales under weighted average always greater than the cost of sales in FIFO?
A: as FIFO method of inventory valuation goods purchased first will be used first or sold first. The…
Q: What is the consolidated cost of goods sold?
A: On 30.06.2021, ABC acquired EFG = 70% Financial statement of 2022 states that : 1. In 2021, EFG sold…
Q: What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP…
A: Sales mix of a product is the proportion of a product sales in overall sales of the company. A…
Q: Define what net sales?
A: Net sales means the amount of revenue earned from selling the goods or services in which business…
Q: How to calculate gross margin and gross sales
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
Q: What is meant by the term sales mix?
A: Sales Mix: Sales mix is the relative proportion or ratio of a business's products that are sold.…
Q: Gross profit from sales is the difference between
A: Gross profit means the excess of revenue against the cost of good sold from the operating activity…
Q: What is sales revenue? How will you calculate it?
A: Answer 1) The amount received by the business entity by offering and selling the goods &…
Q: What is target profit?
A: Target costing: Target costing is a business procedure that targets the cost at the earliest…
Q: Explain profit margin on sales
A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…
Q: What is net profit margin?
A: The margin of net profit is equal to the amount of income produced by the net sales or gains. For a…
Q: What is cost-efficiency according to profit projection?
A: Cost-effective usually means to reduce the expenses and excel in what you are doing or maintaining…
Q: Sales return is a?
A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…
Q: Explain how negotiation between the supplying and buying units may be used to set transfer prices.…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: How is cost-volume-profit analysis useful?
A:
Q: What is gross profit margin?
A: The method to analyze the performance of a company through its profitability is term as the…
Q: What are trade margins? How do they relate to thepricing for a produce, of goods?
A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…
Q: e selling price per unit?
A: Total sales revenue = Fixed expenses + Total variable expenses + Profit Given that, Fixed expenses =…
Q: How can the expected sales for a product group be converted into ex
A: A product group is a collection of various products, classes of products, segments, etc which are…
Q: What is the value of Sales?
A: Sales: Sales represent the amount of goods sold during the year. Sales comprise of all the costs…
Q: What is a cost-volume-profit analysis?
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: what is the cost of sales?
A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to…
Q: What does the term sales mix mean? How is a weighted-average unit contribution margin computed?
A: Contribution Margin is defined as the difference between the sales and the variable cost. In other…
Q: Define Profit margin on sales.
A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…
WHAT IS THE COST OF SALES?
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- Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance: Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2019 multiple-step income statement. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 statement of comprehensive income.Cost of Goods Sold and Income Statement Schuch Company presents you with the following account balances taken from its December 31 adjusted trial balance: Additional data: 1. A physical count reveals an ending-inventory of 22,500 on December 31. 2. Twenty-five thousand shares of common stock have been outstanding the entire year. 3. The income tax rate is 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Schuchs cost of goods sold. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement.Multiple-Step and Single-Step In coin Statements The following items were derived from Gold Companys December 31 adjusted trial balance: Additional data: 1. Screen thousand share of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a multiple-st income statement. 2. Prepare a single step income statement. 3. Next Level Discuss how Gold Companys income statement in Requirement I might be different if it used IFRS
- The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.The summarized revenues and expenses information for Canadian Travel Inc. for the year 2018 states:1cost of goods sold CAD180,000, sales revenue CAD400,000, other (non-operating) revenues and gainsCAD30,000, sales general and administration expenses of CAD100,000. Net interest income is (+)CAD10,000 and the corporate income tax rate is 26,50%: Prepare the Income (i.e. Pro t & Loss) Statement of Holiday Inc., showing Gross Pro t, OperatingPro t, Other gains/(losses), Earnings before Interest and Tax (EBIT), Pro t before Tax and NetIncome i.e. Net Pro t. Point out and explain which of all these revenue and expense items may imply/include non-cashtransactions or accounting records. If the ending balance in Retained Earnings on Canadian Travel Inc.s 31. Dec 2017 balance sheetwas $1,000,000 and a cash dividend of $10,000 was paid in 2018, using the above information showthe balance sheet entries of Retained Earnings as of 31. Dec 2018.In addition to the above, assume that Canadian…
- The following is the trial balance for Amelina Sdn. Bhd. as at 31 December 2020 Additional information: Inventory at 31 December 2020 amounted to $52,360. Rates owing $280, office expenses owing $190. Dividend of 10 per cent proposed. Transfers to reserves: General $1,000; Foreign exchange $800. Depreciation on cost: Buildings 5 per cent; Equipment 20 per cent. Required: Prepare the Statement of Comprehensive Income for the year to and the Statement of Financial Position for Amelina Sdn. Bhd. as at 31 December 2020 for INTERNAL USE. DR CR $ $ Bank 6723 Trade Receiveables 18910 Trade Payables 12304 Inventory at 31/12/19 40360 Buildings at cost 100000 Equipment at cost 45000 Accumulated profits as at 31/12/19 15286 General Reserve 8000 Foreign exchange reserve 4200 Authorized and issued share capital 100000 Purchases 72360 Sales 135486 Carriage inwards 1570 Carriage outwards 1390 Salaries 18310 Rates…Below is a trial balance of Ali Mamat Enterprise, extracted after one year’s trading. Ali Mamat EnterpriseTrial Balance as at 31 December 2019Particulars Debit (RM) Credit (RM)Sales 190,576Purchases 119,832Salaries 56,527Motor expenses 2,416Rent 1,894Insurance 372General expenses 85Premises 95,420Motor vehicles 16,594Account receivables 26,740Account payable 16,524Cash at bank 16,519Cash in hand 342Drawings 8,425Capital 138,066TOTAL 345,166 345,166 Required:i. Statement of Profit or Loss and Others Comprehensive Income for the yearended 31 December 2019.ii. Statement of Financial Position as at 31 December 2019.Sprite Company had the following liabilities at December 31, 2019:Trade accounts payable, net of debit balances totaling P65,000 in supplier’saccounts P1,125,000Accrued expenses 136,000Interest payable 96,000Income tax payable 150,000Mortgage payable due in equal annual instalments until October 31, 2024 750,000Share dividends declared but not yet issued 300,000Notes payable (due on January 1, 2021) 250,000 How much is the total current liabilities of Sprite to be shown on its December 31, 2019 statement of financial position?a. P1,722,000 c. P2,207,000b. P1,272,000 d. P2,022,000
- 1. Below is a trial balance of Ali Mamat Enterprise, extracted after one year’s trading.Ali Mamat EnterpriseTrial Balance as at 31 December 2019Particulars Debit (RM) Credit (RM)Sales 190,576Purchases 119,832Salaries 56,527Motor expenses 2,416Rent 1,894Insurance 372General expenses 85Premises 95,420Motor vehicles 16,594Account receivables 26,740Account payable 16,524Cash at bank 16,519Cash in hand 342Drawings 8,425Capital 138,066TOTAL 345,166 345,166Required: i. Statement of Profit or Loss and Others Comprehensive Income for the year ended 31 December 2019.ii. Statement of Financial Position as at 31 December 2019.The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…Please try to answer accurately and accordance with requirements.Thank you!The general ledger of Emerates Traders Ltd includes the following accounts as at 30 June 2018:$000Sales Revenue 8,280Dividend Received 126Interest Received 65Cost of Sales 1,105Selling and Distribution expenses 450Administration expenses 1,550Finance costs 16Valuation loss on trading investments (considered a material item) 250Income tax expense charged to profit and loss 1,500Expenses classified by nature include:Auditors Remuneration:Audit of accounts 20Information technology controls advice 5 25Depreciation expense:Buildings 120Plant and Equipment 225 345Additional InformationThe valuation loss on investments held for trading is not tax deductible.Task 4a. Complete a Statement of Comprehensive Income showing expenses classified byfunction on the face of the Income Statement together with notes to the incomestatement including the material item.- Note that Emerates Traders Ltd discloses material items on the…