|
06-27-2007, 05:52 PM
|
|||
|
|||
Principles of Accounting: Inventory Question
In the official study guide, question 40 is as follows:
Net purchases for the year amounted to $80,000. The merchandise inventory at the beginning of the year was $19,000. On sales of $120,000, a 30 percent gross profit on the selling price was realized. The inventory at the end of the year was ($15,000) I don't know how or why it's $15,000.
__________________
Excelsior, BS Finance, pursuing degree Studying: Completed: CLEP: Hum. (67), Hist. of U.S. I (74), Hist. of U.S. II (71), Intro. Psych. (69), Intro. Soc. (72), Soc. Sci. and Hist. (74), Western Civ I (72), Western Civ II (70), Am. Lit. (60), Intro. to Educ. Psych. (62), P. of Management (74), P. of Market. (74), Intro. Bus. Law (67), P. of Accounting (60), AmGov (68) DSST: Ethics in Am. (76), P. of Super.(67), HRM (65), Intro to Bus. (70), MIS (65), P. of Fin (62), M&B (65), P. of Stat. (68) ECE: OB (B) Total Credits: 108     
|
|
06-27-2007, 06:04 PM
|
|||
|
|||
|
Quote:
Beginning inventory $ 19,000 Purchases made during year $ 80,000 TOTAL INVENTORY $ 99,000 Sales $120,000 Profit amount (30% of $120K) - 36,000 INVENTORY SOLD $ 84,000 TOTAL INVENTORY $ 99,000 Inventory amount sold - 84,000 INVENTORY ON HAND $ 15,000
__________________
JoAnne G. BS-Business, Excelsior College, 2007
|
|
06-27-2007, 06:11 PM
|
|||
|
|||
|
K, thanks, I understand now. Tripped up on the 30 percent gross profit on the selling price part.
__________________
Excelsior, BS Finance, pursuing degree Studying: Completed: CLEP: Hum. (67), Hist. of U.S. I (74), Hist. of U.S. II (71), Intro. Psych. (69), Intro. Soc. (72), Soc. Sci. and Hist. (74), Western Civ I (72), Western Civ II (70), Am. Lit. (60), Intro. to Educ. Psych. (62), P. of Management (74), P. of Market. (74), Intro. Bus. Law (67), P. of Accounting (60), AmGov (68) DSST: Ethics in Am. (76), P. of Super.(67), HRM (65), Intro to Bus. (70), MIS (65), P. of Fin (62), M&B (65), P. of Stat. (68) ECE: OB (B) Total Credits: 108
|
Linear Mode
