ACC 290 Week 5 Individual Assignment Week Five Exercises

BE5-1A.        Sales: $181,500
B.        Cost of goods sold: $41,200
C.        Gross profit: $38,000
D.        Operating expenses: $17,900
E.         Operating expenses: $8,500
F.         Net income: $63,400
 
BE5-2
Pocras Company
            Inventory                                900
                                                                        900
 
Wedell Company
            Accounts Rec.                         900
                                                                        900
 
            Cost of Goods Sold                590
                                                                        590
 
BE6-5
 




 


LIFO


 


FIFO




 


 


 


 




Purchases:


6 X 100  


 


6 X 100   




 


7 X 200  


 


7 X 200   




 


8 X 140  


 


8 X 140   




Cost of goods available forsale


    3,120 


 


       3,120   




Ending inventory


       1,160


 


         1,400




COGS


$    1,960  


 


   $    1,720   




 
            
Using FIFO, COGS would be $240 less under this method. The COGS being $240 less under the FIFO method would be the phantom profit as well.
 
 
BE6-7
 
                                                                      Cost                    Market            LCM   
Cameras                                                               12,500         13,400         12,500
Camcorders                                                            9,000           9,500           9,000
DVDs                                                                     13,000         12,200        12,200
        LCM value is $33,700                                                                         $33,700
 
 
BE7-4
 
A.        Physical controls
B.        Human resource controls
C.        Independent internal verification
D.        Segregation of duties
E.         Establishment of responsibility
 
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