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What is a purchase order in accounts payable?

Purchase order is a formal request to vendor for purchase of units of items or inventory.


Merchandise inventory has a normal debit balance?

Mechandise inventory is a current asset which is used in manufacturing of units of products or resale purpose that's why it is asset of business and has debit balance as normal balance.


When preparing a merchandise purchase budget the required purchase in units equals?

budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.


Digitex Inc had sales of 6000 units in March A 50 percent increase is expected in April The company will maintain 5 percent of expected unit sales for April in ending inventory Beinning inventory fo?

Digitex, Inc. Projected sales 9000(6000x1.5) +desired ending inventory 450(5%of 9000) -Beginning inventory..... 200units Units to be produced.... 9,250 units


Lorie Nursery plans to sell 160 potted plants during April and 120 units in May Lorie Nursery keeps 15 of the next months sales as ending inventory How many units should Lorie Nursery produce duri?

Lorie Nursery should produce 205 units in April and 135 units in May to meet the sales demand. This calculation accounts for the sales target, ending inventory, and the required production levels.


Is ending inventory asset or liability?

asset Inventory is a current asset so when the required inventory is utilized the remaining inventory still remain as asset and not become liability. For example inventory of $100 purchase to use for production which is our current asset. when inventory of $90 utilized the remaining $10 is still our current asset while $90 become expense for production of units.


Managing inventory is?

Managing inventory is the process by which you efficiently oversee the constant flow of the units into and out of an existing inventory.


What is the cost of goods sold under a periodic system if beginning inventory is 500 cost of goods purchases is 200 and ending inventory is 100?

Cost of goods sold = Beginning inventory + purchases - closing balance Cost of goods sold = 500 + 200 -100 Cost of goods sold = 600 units


What was the value of the inventory on November 8 after the sale?

A company had inventory on November 1 of 5 units at a cost of $17 each. On November 2, they purchased 12 units at $19 each. On November 6 they purchased 8 units at $22 each. On November 8, 12 units were sold for $52 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?


What is the inventory method that considers the inventory to be composed of the units of merchandise acquired earliest?

LIFO - last in first out.


How many units of the product are available for purchase in a pack of 60 units?

There are 60 units available for purchase in a pack.


In order to estimate production requirements you do what?

add projected sales in units to desired ending inventory and subtract beginning inventory