PROBLEM #5 SOLUTION

 

In this case, the family would have an asset called INVENTORY in the amount of $40 because these are the costs that go into making the product.

Ten packs of lemonade concentrate x $3 each = $30 total + One package of small plastic cups for $10 = $40 in Inventory

The sign wasn't included because it doesn't go into making the product. It will simply be expensed as a selling, general & administrative cost.

 

Feel free to email me with more questions...we're just warming up!

Best Regards,

Jameson Galey, CPA

 


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