When Sterling uses FIFO, all of the $50 units are sold first, followed by the items at $54. The newer units with a cost of $54 remaining in ending inventory, https://www.kelleysbookkeeping.com/temporary-accounts/ which has a balance of (130 units X $54), or $7,020. The sum of $6,080 cost of goods sold and $7,020 ending inventory is… Seguir leyendo How to calculate fifo and lifo: Lifo and Fifo Calculator to calculate ending Inventory
Categoría: Bookkeeping
Marginal Costing Characteristics, Utility Merits, Limitations
If your main competitor is selling similar loaves for $10, then you might be able to sell a lot more loaves if you price yours below that level. On the other hand, you would be limiting your profit per loaf sold, and you would need to sell for more than your Marginal Cost of $5… Seguir leyendo Marginal Costing Characteristics, Utility Merits, Limitations
What Is the Debt Ratio?
As it considers intangible assets, it is difficult to prove an intangible asset such as the goodwill of a company. Financial analysts record and interpret the debt-to-asset ratio data with time series. This phenomenon is referred to as a trend line, and a gradual upward trend in the trend line indicates that the company is… Seguir leyendo What Is the Debt Ratio?
Net sales: Definition, calculation & formula with examples
Sellers don’t account for a discount unless a customer pays early so notations must be retroactive. This requires a company to make additional notations to account for the item as inventory. If you’re good at math and have all the required information readily available, you can calculate your net sales in a few minutes. Supercharge… Seguir leyendo Net sales: Definition, calculation & formula with examples
Accounts Receivable Aging Report: Importance, How to Create and Use It?
One option is to calculate for the entire year, while another is to calculate for each month, as illustrated in the example below. Access and download collection of http://www.stroy-z.ru/news/news_333.html free Templates to help power your productivity and performance. See our overall favorites, or choose a specific type of software to find the best options for… Seguir leyendo Accounts Receivable Aging Report: Importance, How to Create and Use It?
Accrual vs Deferral Accounting in Financial Reporting
On the other hand, if the company has incurred expenses but has not yet paid them, it would make a journal entry to record the expenses as an accrual. This would involve debiting the «expenses» account on the income statement and crediting the «accounts payable» account. When the product has already been delivered, i.e. business… Seguir leyendo Accrual vs Deferral Accounting in Financial Reporting