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f. Cost of Fuel Sales: This account should reflect the cost of fuel sold to private pilots (See item c above). Fuel expense should reflect
f. Cost of Fuel Sales: This account should reflect the cost of fuel sold to private pilots (See item c above). Fuel expense should reflect the amount of fuel used and not the amount of fuel purchased. Inventory should be reduced when the fuel is expensed as Cost of Fuel Sales. Remember that the average cost per gallon is $.78/gallon (see item d above). g. As a result of layoffs, Salary and Wage expenses were reduced to $253,962 during 1976. The number of employees was reduced from 15 to 13. Assume that all salaries and wages are paid in cash
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