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    Various accounting Problems

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    Attached are four spreadsheets (in one excel file) - please answer all questions contained therein. Thanks.

    Example (Question 1):

    Presented below (see attachment) is financial information for two different companies. Determine the missing amounts.

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    https://brainmass.com/business/inventory/various-accounting-problems-41127

    Attachments

    Solution Preview

    All the answers are in the attached file.

    Net Sales=Sales-Sales Returns
    a=7000 90000-83000
    d=100000 95000+5000

    Gross Profit = Net Sales -Cost of Goods Sold
    b=83000-56000=27000
    e=95000-38000=57000

    Net Income=Gross Profit - Operating Expenses
    c=27000-15000=12000
    f=38000-15000=23000

    The financial information is as below

    Amoruso Tamburri
    Company Company

    Sales 90000 100000
    Sales Return 7000 5000
    Net Sales 83000 95000
    Cost of Good Sold 56000 57000
    Gross Profit 27000 38000
    Operating Expenses 15000 23000
    Net Income 12000 15000

    1. FIFO - In FIFO goods purchased earlier are sold first. The closing inventory will consist of
    goods purchased last.
    The ending inventory is 150 units and these would have been purchased on June 23
    The ending inventory value is 1050

    2. LIFO - In LIFO goods purchased last are sold first. The closing inventory will consist of
    goods purchased earliest.
    The ending inventory is 150 units and these would have been the opening inventory
    The ending inventory value is 750

    Cost of Goods Sold

    1. FIFO
    Opening Inventory 1000 Given
    Purchases 5300 Addition of 2 purchases
    Goods Available for Sale 6300 sum
    Closing Inventory 1050 As calculated earlier

    Cost of Goods Sold 5250 difference between C28 and C29

    2. LIFO
    Opening Inventory 1000
    Purchases 5300
    Goods Available for Sale 6300
    Closing Inventory 750

    Cost of Goods Sold 5550

    b. FIFO gives higher ending inventory value. This is because the unit ...

    Solution Summary

    The solution has various accounting problems dealing with missing amounts, LIFO and FIFI calculation and preparation of Income Statement

    $2.49

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