Questions from Financial Accounting

Q: Mason Company purchased items of inventory as follows. Dec.

Mason Company purchased items of inventory as follows. Dec. 2 50 units @ $20 Dec. 12 12 units @ $21 Mason sold 15 units on December 20. Determine the cost of goods sold for the month under the LIFO...

Q: Fox Company purchased items of inventory as follows. May 3

Fox Company purchased items of inventory as follows. May 3 100 units @ $3.05 May 10 150 units @ $3.10 May 15 120 units @ $3.15 By the end of the month of May, Fox had sold 125 units. If the company...

Q: Explain why businesses normally can reduce unit costs by utilizing their facilities

Explain why businesses normally can reduce unit costs by utilizing their facilities more intensively.

Q: Murphy, Inc., purchased a new inventory item two times during

Murphy, Inc., purchased a new inventory item two times during the month of April, as follows. a. What is the amount of the ending inventory of this item on April 30 if the company has sold 75 units a...

Q: Franklin Co. had 10 units of an inventory item on hand

Franklin Co. had 10 units of an inventory item on hand at the beginning of the current year, each of which had a per-unit cost of $10. During the year, 20 additional units were purchased at $11, and 2...

Q: Three events pertaining to Lean Machine Co. are described as follows

Three events pertaining to Lean Machine Co. are described as follows. a. Issued common stock for cash. b. The market value of the corporation’s stock increased. c. Declared and pa...

Q: Bring Company’s inventory is subject to shrinkage via evaporation. At the

Bring Company’s inventory is subject to shrinkage via evaporation. At the end of the current financial reporting period, the company’s inventory had a cost of $100,000. Management estimates that evapo...

Q: Marengo is a popular restaurant located in Chilton Resort. Management feels

Marengo is a popular restaurant located in Chilton Resort. Management feels that enlarging the facility to incorporate a large outdoor seating area will enable Marengo to continue to attract existing...

Q: Due to ineffective controls while counting its inventory, Walker & Comer

Due to ineffective controls while counting its inventory, Walker & Comer, Inc., double-counted $50,000 of inventory at the end of the current year. Before discovering this error, the company’s ending...

Q: Alamo Company has sales, cost of goods sold, and average

Alamo Company has sales, cost of goods sold, and average ending inventory for the current year in the following amounts: $650,000, $500,000, and $128,000, respectively. Calculate the amount of the com...