KeepaExport-2024-01-30-ProductFinder (1)
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Income Statements under Absorption Costing and Variable Costing
Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during the first ma
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
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Aug.1 Inventory on hand-2,000 units; cost $5.30 each.
8 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand-7,000 units.
Required:
Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow
methods.
Complete this question by entering your answers in the tabs below.
FIFO
LIF
P
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Determine the inventory balance…
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Access Pascodeentries of the following
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1) Sep1 Business sold $2400 inventory to ACE Inc., the cost is $600, Terms 2/5, n/15 FOB
2)
Sep1 Business purchased $3600 of inventory from Westelm, Terms 1/10, n/20 FOB
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Center Company makes collections on sales according to the following schedule:
30% in the month of sale
60 in the month following sale
8% in the second month following sale
The following sales are expected:
Expected Sales
$135,000
$153,000
$140,000
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February
March
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Feb. 10 Purchased merchandise for $6,800 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $380 that was returned; the goods were
purchased on Invoice 1980, dated February 10.
19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and 1less the cash
discount, Check 2010.
Schmidt, Inc.
DATE
TRANSACTIONS
20X1
Feb. 10 Sold merchandise for $6, 800 on account to Bushard Company, Invoice 1980, terms 1/10, n/30. The cost of merchandise sold was
$3,900.
13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $380 that was returned; the goods were
purchased on Invoice 1980, dated February 10.…
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Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales data for portable game players are as follows:
24
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Chapter 9
Quantity
Inventory
O Search
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Unit
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180 units at $40
140 units
210 units at $42
170 units
60 units
240 units at $46
The business maintains a perpetual inventory system, costing by the first-in, first-out method.
Print Item
a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form
illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the
Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.
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Determining Cost of Goods Sold
For a recent year, Best Buy (BBY) reported sales of $39,528 million. Its gross profit was $9,191 million. What was the amount of Best Buy's cost of
goods sold? (Enter answer in millions.)
million
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Suppose Easton Company reported net receivables of $2,582 million and $2,260 million at January 31,
2019, and 2018, respectively, after subtraction allowances of $72 million and $67 million respectively.
Easton earned total revenue of $43,333 million (all on account) and recorded uncollectible account
expense of $13 million for the year ended January 31, 2019. Use the following T accounts to sort out
your answer.
1. Use this information to measure the following amounts for the year ended January 31, 2019.
a. Write-off of uncollectible receivables.
b. Collection from customers
Allowance for Uncollectible Accounts
D Focus
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1. PE.07-01B
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Cost Flow Methods
The following three identical units of Item Beta are purchased during June:
Item Beta
Units
Cost
June 2
Purchase
$50
12
Purchase
60
23
Purchase
70
Total
$180
Average cost per unit
$60 ($180 + 3 units)
Assume that one unit is sold on June 27 for $110.
Determine the gross profit for June and ending inventory on June 30 using the (a) first-in,
first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost methods.
Gross Profit
Ending Inventory
a. First-in, first-out (FIFO)
24
b. Last-in, first-out (LIFO)
%24
c. Weighted average cost
2. PE.07-02B
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Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales for Item Delta are as follows:
July 1
Inventory
50 units at $15
Sale
44 units
15
Purchase
90 units at $18
24
Sale
40 units
Assuming a perpetual…
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Gross Profit
During the current year, merchandise is sold for $118,700 cash and $454,300 on account. The cost of the goods sold is $383,900. What is the amount
of the gross profit?
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
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Aug.1 Inventory on hand-2,000 units; cost $5.30 each.
18 Purchased 8,000 units for $5.50 each.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 each.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand-7,000 units.
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 income statement using last-in, first-out (LIFO).
Cost of Goods Available for Sale
Cost of Goods Sold -August 14
Cost of Goods Sold - August 25
Inventory Balance
Cost of
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Sale
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Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
units at $11
29
Proud
Sale
Help
Inventory
Sale
Purchase
190 units
370 units at $12
200 units
5
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a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your
answer to two decimal places.
S
per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost to
two decimal places.
All work saved.
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two
decimal places.
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Computing Gross Profit
The following data were taken from the accounts of Burnside Bedknobs, a retail business.
Sales
$119,600
Sales returns and allowances
1,160
Sales discounts
360
Merchandise Iinventory, January 1
28,100
Purchases during the period
93,900
Purchases returns and allowances during the period
1,900
Purchases discounts taken during the period
2,820
Freight-in on merchandise purchased during the period
1,480
Merchandise inventory, December 31
50,000
Determine the gross profit.
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QUESTION 7
Use the following information to answer the next 5 questions.
Purchases
Sales
May
#
Cost
May
#
Sales Price
4
1,300
@ $4.10
3
200
@ $7.00
8
800
@ $4.30
6
1,000
@ $7.00
14
700
@ $4.40
12
900
@ $7.50
22
1,200
@ $4.50
18
400
@ $7.50
29
500
@ $4.55
25
1,400
@ $8.00
Determine Huston’s Goods AVAILABLE for sale in dollars.
Huston has a beginning balance in inventory of 400 units at @ $4.20 per unit. A record of transactions for the month of May was as follows:
QUESTION 8
Determine Huston’s ending inventory in dollars using Periodic Average. Round to the nearest dollar.
QUESTION 9
Determine Huston’s ending inventory in dollars using Periodic LIFO.
QUESTION 10
Determine Huston’s ending inventory in dollars using Perpetual FIFO.
QUESTION 11
Determine Huston’s ending inventory in dollars using Perpetual LIFO.
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Winnebago corporation currently sells 28800 motor homes
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Purchases Transactions
Rolfes Company purchased merchandise on account from Springhill Company for $6,300, terms 1/10, n/30. Rolfes returned merchandise with an invoice
amount of $1,600 and received full credit.
a. If Rolfes Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer
to the nearest dollar.
b. What account is debited by Rolfes Company to record the return?
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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the
manufacture of 78,000 units of product were as follows:
Standard Costs
Actual Costs
Direct materials
195,000 lbs. at $5.00
193,100 Ibs. at $4.80
Direct labor
19,500 hrs. at $18.00
19,950 hrs. at $18.40
Factory overhead.
Rates per direct labor hr.,
based on 100% of normal
capacity of 20,350 direct
labor hrs.:
Variable cost, $3.80
$73,360 variable cost
Fixed cost, $6.00
$122,100 fixed cost
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance,…
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Cash Paid for Merchandise Purchases
The cost of merchandise sold for Patterson Corporation for a recent year was $8,629 million. The balance sheet showed the following current account balances (in millions
Balance, End of Year
Balance, Beginning of Year
Merchandise inventories
$2,261
$1,950
Accounts payable
811
725
Determine the amount of cash payments for merchandise.
million
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Required information
Aug. 28 Purchases.
Aug. 30 Sales
Totals
*********
Cost of the units sold
************
10 units@ $119-$ 1,190
55 units
$5,990
=
Units available for sale Goods available for sale
23 units @ $150
43 units
4
Units sold
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WEN
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Cost Flow Methods
The following three identical units of Item LO3V are purchased during April:
Units Cost
$118
121
April 2
April 15
April 20
Total
Show Me How
Feedback
Item Beta
a. First-in, first-out (FIFO)
b. Last-in, first-out (LIFO)
c. Weighted average cost
Check My Work
Purchase
Purchase
Purchase
$363
Average cost per unit
$121 ($363 ÷ 3 units)
Assume that one unit is sold on April 27 for $175. Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average cost method.
1
1
1
Gross Profit
6A
69
3
000
Aut
124
Ending Inventory
Check My Work
a. Sales - cost of goods sold = gross profit. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is made up of the most recent purchases.
b. Sales - cost of goods sold = gross profit. LIFO means the last units purchased are assumed to be the first to be sold. Therefore, ending…
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Perpetual Inventory Using LIFO
Beginning inventory, purchases, and sales for Item Foxtrot are as follows:
Mar. 1
Inventory
270 units at $18
Sale
225 units
15
Purchase
375 units at $20
27
Sale
240 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method,
determine (a) the cost of merchandise sold on March 27 and (b) the inventory on March 31.
a. Cost of merchandise sold on March 27
%24
b. Inventory on March 31
4. PE.07-04B
O eBook
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Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
Oct. 1
Inventory
300 units at $8
13
Sale
175 units
22
Purchase
375 units at $10
29
Sale
280 units
a. Assuming a perpetual inventory system and using the weighted average method,
determine the weighted average unit cost after the October 22 purchase. Round your answer…
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emonstration Problems i
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Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Saved
Help
Aug.1 Inventory on hand-2,000 units; cost $5.30 each.
B Purchased 8,000 units for $5.50 cach.
14 Sold 6,000 units for $12.00 each.
18 Purchased 6,000 units for $5.60 cach.
25 Sold 7,000 units for $11.00 each.
28 Purchased 4,000 units for $5.80 each.
31 Inventory on hand-7,000 units.
Save & Exit
Su
Required:
Using calculations based on a periodic inventory system, determine the inventory balance Altira would report in its August 31, 2021,
balance sheet and the cost of goods sold it would report in its August 2021 income statement using each of the following cost flow
methods.
Complete this question by entering your answers in the tabs below.
FIFO
LIFO…
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a. $390,000
b. $370,000
c. $330,000
d. $420,000
Pomostwww.ww
4. If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending
inventory is $50,000, what is cost of goods sold?
Cost-Volume-Profit Analysis
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3 Common, Inc. has just issued a 10% stock dividend. The following information was
available just prior to issuing the dividend.
Market value of common shares
Number of common shares outstanding
Par value of common shares
Retained earings
b. $2,600,000
$2.500.000
d. $2,400,000
e $2,750,000
$25 each
100.000
What is the proper balance in Retained Earnings immediately after issuing the stock
dividend?
COOCO COPRI
$10 per share
$2.500.000
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Cost of Goods Sold
Accounts Payable Turnover
Average Accounts Payable
Company Is paylng suppllers
In a timely manner
0.38
High accounts payable ratio
polnts
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Knowledge Check 01
Roberts Company reported the following information:
References
Accounts Payable:
Beginning of year
End of year
Net sales
75,000
125,000
1,600,000
800,000
Cost of goods sold
What is the company's accounts payable turnover ratio? (Round your answer to 1 decimal place.)
Accounts payable turnover ratio
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Perpetual Inventory Using FIFO
Beginning inventory, purchases, and sales for Item Zeta9 are as follows:
Oct. 1
Inventory
76 units @ $17
7
Sale
51 units
15
Purchase
69 units @ $18
24
Sale
32 units
Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24 and (b) the
inventory on October 31.
a. Cost of goods sold on October 24
1,418 X
b. Inventory on October 31
1,116 V
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a. When the FIFO method is used, costs are included in cost of goods sold in the order in which they were purchased. Think of your inventory in terms of "layers".
Determine how much inventory remains from each layer after each sale.
b. The ending inventory is made up of the most recent purchases
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