please read details - involves accounting questions?
please read details - involves accounting questions?
could anybody help me to figure out these two questions it would be greatly appreciated:
93. Cal Farms reported supplies expense of $2,000,000 this year. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. What was the cost of supplies the Cal Farms purchased during the year?
and
94. Dave's Duds reported cost of goods sold for $2,000,000 this year. The inventory account increased by $200,000 during the year to an ending balance of $400,000. What was the costof merchandise that Dave purchased during the year?
Answers:
Chosen Answer
Sandy: Qn 93 Beginning supplies $600,000 Add purchases ?? Less supplies used up ($2,000,000) = Ending supplies $400,000 Arranged like this, it's quite easy to see that purchases of supplies were $1,800,000 Qn 94 Beginning inventory $200,000 Add purchases ?? Less COGS ($2,000,000) = Ending inventory $400,000 Purchases were $2,200,000. The formula is - Beginning inventory + Purchases - COGS = Ending inventory or put another way - Beginning inventory + Purchases - Ending inventory = COGS
2007-10-10 20:49:00
Sandy: Qn 93 Beginning supplies $600,000 Add purchases ?? Less supplies used up ($2,000,000) = Ending supplies $400,000 Arranged like this, it's quite easy to see that purchases of supplies were $1,800,000 Qn 94 Beginning inventory $200,000 Add purchases ?? Less COGS ($2,000,000) = Ending inventory $400,000 Purchases were $2,200,000. The formula is - Beginning inventory + Purchases - COGS = Ending inventory or put another way - Beginning inventory + Purchases - Ending inventory = COGS
2007-10-10 20:49:00