Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 12000 b. None of the options c. OMR 10000 d. OMR 20000

Dhofar Company has the following information: Total Fixed cost OMR 8000 Selling price per unit OMR 20 Variable cost per unit OMR 12, What will be the correct amount of Profit when 2500 Units have been sold? Select one: a. OMR 12000 b. None of the options c. OMR 10000 d. OMR 20000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 2RE: Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Dhofar Company has the following information:

Total Fixed cost OMR 8000

Selling price per unit OMR 20

Variable cost per unit OMR 12,

What will be the correct amount of Profit when 2500 Units have been sold?

Select one:

a. OMR 12000

b. None of the options

c. OMR 10000

d. OMR 20000

Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)?

Sales	75,000
-COGS	55,000
Gross Profit	20,000
-Operating Expenses	8,000
Operating Profit	12,000
-Interest Expense	2,000
Profit before Tax	10,000
-Tax	3,000
Net Profit	7,000

Select one:

a. 54000

b. 56000

c. 59000

d. 63000

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