Explain the difference between the income statements of a merchandiser & a manufacturer

Q: 3. If a company has more than one revenue source, how would it reports revenue and cost of goods…

A: Revenue is the proceeds received from the delivery of goods and services by the business. Revenue…

Q: Required: a. Compute the goods available for sale, and the cost of goods sold and gross profit for…

A: Goods Available for Sale = Beginning Inventory + Net Purchases Cost of Goods Sold = Goods Available…

Q: How is total cost of goods sold and the total amount billed to customers calculated?

A: A job cost sheet is a sheet which is used to record the manufacturing costs .

Q: 1.a. In what ways are the inventory accounts of a merchandising company different from those of a…

A: We have to provide difference between inventory accounts of merchandising company and manufacturing…

Q: rchases = Cost of goods available for sale – Ending inventory = Cost of goods sold   (A) How does…

A: Cost of goods sold is the cost incurred in producing or purchasing the goods sold in the current…

Q: What is the revenue account for a merchandising business called? Group of answer choices gross…

A: Solution: Merchandise business is a type of trading business that involves purchase and sales of…

Q: Calculate the gross profit and the sales figures using the income statement approach.

A: Income statement approach refers to the approach which is used to determine the gross profit and it…

Q: Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the…

A: A)Revenue is recognized at the time of shipment when goods are shipped FOB destination-The given…

Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: Determine the total selling and administrative expenses

A: Formula: Total selling and administrative expense = Beginning selling and administrative expense +…

Q: How is Income from Operations determined? A) Net Sales - Selling Expenses - Administrative Expenses…

A: Net sales - Cost of goods sold = Gross profit

Q: Define cost of goods sold. How is it computed? What two financial reports does it impact and how?

A: Cost of goods sold or COGS is the direct cost of the products sold/manufactured by the entity. It…

Q: Assuming that Merchandise business use multiple step income statement. Which of the following will…

A: The financial statement prepared to show the income earned and expenses incurred is known as income…

Q: How to calculate sales revenue from Cost of Goods Sold, inventory, or cost of goods available for…

A: Without selling price per unit, calculation of sales revenue is not possible with the given details.…

Q: se the following information to prepare the cost of goods sold section of the income statement for…

A: Cost of goods sold represents the amount incurred in selling the product by the company.

Q: In a contribution format income statement for a merchandising company, the cost of goods sold…

A: The contribution income lists all the costs in a particular period by their behavior i.e. whether…

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: The difference between sales and cost of goods sold for a retail business is: a.net sales. b.gross…

A:

Q: Which financial statement will allow you to determine the gross margin for a ?retailer or…

A: Solution: Gross profit of a company is gross margin earned on sales before deducting operating…

Q: The dollar amount paid by a retailer to acquire a product from a wholesaler is known as the…

A: Goods Purchase Cost: The cost of the products that were bought is the same as the merchandise's net…

Q: During the costing process, to arrive at the gross profit of a trading business, which one of the…

A: Gross profit = Net sales - Cost of goods sold  where, Net sales = Gross sales - sales return and…

Q: wo accounts that appear on the financial statements of a merchandising company but are not needed by…

A: Cost of goods sold is the expense which are directly related to the goods. Purchase of inventory,…

Q: Briefly explain the similarity and difference between the merchandise inventory of a retailer and…

A: Inventory or stock are goods which can be in the form of raw materials, after processing the raw…

Q: 1. Explain the effect of each inventory cost flow method on the company's net income 2. Recommed one…

A: There are primarily four type of inventory cost method- 1. First in first out method2. Last in first…

Q: QUESTION 3 Which of the following financial statement line items would be found on a manufacturer's…

A: Cost of goods sold and finished goods inventory could be found in merchandiser financial statements

Q: The cost of goods purchased line on the income statement of a retailer is the equivalent to which…

A: Income statement An organization's financial performance over a specific time period is shown on the…

Q: What are the differences between accounting for service companies and accounting for merchandise…

A: The Answer :

Q: Which of the following would appear on the balance sheet of a merchandiser but not on the balance…

A: The goods that a wholesaler, retailer or distributor obtains from manufacturers that are intended…

Q: In the income statement of a merchandising business, why do you think we have to categorize expenses…

A: Income Statement Income Statement shows company's revenues and expenses during a particular period

Q: The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross…

A: Gross profit is calculated by deducting the cost of goods sold from the sales. The percentage of…

Q: Which of the following represents the components of the income statement for a merchandising…

A: Merchandising business is that form of business in which readymade goods are being purchased from…

Q: What does it mean that product costs fl ow through inventory on their way to the income statement?

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the…

Q: You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below:…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: Merchandise inventory is O Reported on the balance sheet under plant and equipment O Products a…

A: Income statement and balance sheet are the financial statements of a company, prepared at the end of…

Q: . Which of the following would not be considered as a component of the "cost" of Goods Sold? a.…

A: Cost of goods sold means the difference between the sale and gross profit .It means the cost of…

Q: In what ways are the inventory accounts of a retailing companydifferent from those of a…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Identify each of the following items relating to sections of an income statement as Revenue from…

A: Income Statement: The income statement reports the financial performance in terms of profit or loss…

Q: Which of the following represents the components of the income statement for a merchandising…

A: Merchandising business means those business in which purchased goods are sold to end consumers and…

Q: Which of the following statement is False for Multi-step income statement of a merchandise business?…

A: Net income is referred to the income earned by an organization or an individual proprietor after…

Q: Which of the following statements are true regarding Costof Goods Sold?(i) Cost of Goods Sold…

A: The cost of goods sold is deducted from the sales revenue to calculate the amount of gross profits.

Q: SLO-5.1. for a merchandising business is determined by subtracting the Cost of Goods Sold from the…

A: Operating Income: Operating Income is the income earned from Operating activities or Core activities…