Problem:
ABC Company pays for purchases 40% in the month of purchase, and the balance in the following month. Recent purchases have been: August, $2,500; September, $5,000; October, $4,000; November, $5,000. What is the amount of cash disbursed to suppliers in October?
A company produces a single product, with a selling price of $10 and a variable cost of $6. Fixed costs are $100,000 per period. What volume of sales in units is needed to earn a profit of $60,000 per period?
ABC Company had retained earnings of $45,000 at the start of the year, and $57,000 at the end of the year. If dividends of $7,000 were paid, what was amount of net income?
Beginning inventory is 200 units @ $10/unit. During the year, the following purchases are made (in chronological order): 800 units @ $12/unit; 700 units @ $13/unit; and 100 units @ $15/unit. Ending inventory is 300 units. Compute the cost of ending inventory under the LIFO method.
A company has beginning work in process of $94,000. Prime costs committed to production during the period are $700,000. Manufacturing overhead is applied at 60% of prime cost. Ending work in process is $80,000. What is cost of goods manufactured for the period?