11. Fill in the blanks. If costs are rising, then...... a) LIFO COGS is b) LIFO ending inventory is inventory (greater or less than) FIFO COGS (greater or less than) FIFO ending (greater or less c) Net Income for a company using LIFO will be than) a company that uses FIFO If COGS is understated: (Fill in with overstated or understated): d) Ending inventory is e) Net Income is f) Ending Retained Earnings are g) Stockholder's Equity is h) Assets are

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Part 3:
10. Calculate the five critical subtotals in the multistep income statement
based on the information provided in this table:
Sales
Sales returns
Sales discounts
Cost of Goods Sold
Total Operating
Expenses
Interest Income
Interest Expense
Income Tax Expense
a. Net Sales
b. Gross Profit
c. Income From Operations
d. Income Before Taxes
e. Net Income
11. Fill in the blanks.
If costs are rising, then......
a) LIFO COGS is_
b) LIFO ending inventory is
inventory
780,000
15,000
2,000
325,000
215,000
d) Ending inventory is
e) Net Income is
f) Ending Retained Earnings are
g) Stockholder's Equity is
h) Assets are
11,000
20,000
40,000
Amount:
(greater or less than) FIFO COGS
(greater or less than) FIFO ending
(greater or less
c) Net Income for a company using LIFO will be
than) a company that uses FIFO
If COGS is understated: (Fill in with overstated or understated):
Transcribed Image Text:Part 3: 10. Calculate the five critical subtotals in the multistep income statement based on the information provided in this table: Sales Sales returns Sales discounts Cost of Goods Sold Total Operating Expenses Interest Income Interest Expense Income Tax Expense a. Net Sales b. Gross Profit c. Income From Operations d. Income Before Taxes e. Net Income 11. Fill in the blanks. If costs are rising, then...... a) LIFO COGS is_ b) LIFO ending inventory is inventory 780,000 15,000 2,000 325,000 215,000 d) Ending inventory is e) Net Income is f) Ending Retained Earnings are g) Stockholder's Equity is h) Assets are 11,000 20,000 40,000 Amount: (greater or less than) FIFO COGS (greater or less than) FIFO ending (greater or less c) Net Income for a company using LIFO will be than) a company that uses FIFO If COGS is understated: (Fill in with overstated or understated):
8:36
Chegg Home Expert Q&A
Chapter Summary Assignment #3 (Ch 5 & 6) D2L quiz questions will be asked in
class based on your completion of this preparation guide. Example in class question: What is
the debit account in Question 2? You will not have time to complete this guide in class! You
are required to handwrite your answers to this assignment.
My answers
Part 1: Prepare Bluth Co.'s journal entries for each of the following transactions. Assume that
a perpetual inventory method is used.
Recording Purchases of Merchandise
1. Bluth Co. purchases $75,000 of inventory on account, terms 2/10 net
30 from Sitwell Enterprise.
2. Bluth Co. returns $5,000 of inventory to Sitwell Enterprise from the
initial purchase.
3
3. Bluth Co. pays the balance owed to Sitwell Enterprise, taking the
discount.
Recording Sales of Merchandise (new scenario)
4. Bluth Co. sells merchandise on account for $29,000 (terms 3/10 net
30) to Franklin Inc. The merchandise had cost Bluth Co. $15,500.
Show Transcribed Text
Ć
Beginning inventory (1/1/2023)
Purchase # 1: (3/2/23)
Purchase #2: (7/15/23)
Purchase #3: (11/31/23)
5. Franklin Inc. returns $5,500 of the merchandise to Bluth Co. Assume
this returned merchandise had cost Bluth Co. $2,200.
6. Franklin Inc. pays Bluth Co. the balance owed within 10 days of the
sale.
Skip question
Part 2: During 2023, Waystar Royco sold 31,000 units of its product. The following units were
on hand or purchased during the year:
Total Available for Sale
Less Sold
Ending Inventory
Average Cost per unit =
Ending Inventory:
0.06 VOD
KB/S LTE2
Units
7,000
12,000
20,000
11,000
50,000
Start answering
|||
Required: In the table above, fill in the number of units sold and the number of units in Ending
Inventory. Calculate ending inventory and cost of goods sold for the next 3 questions.
7. If the company used the FIFO method, what is the value of ending
inventory and cost of goods sold?
Ending Inventory:
Cost of Goods Sold:
Cost per Total Cost
$14.50
$14.90
$14.00
$13.75
8. If the company used the LIFO method, what is the value of ending
inventory and cost of goods sold?
Ending Inventory:
Cost of Goods Sold:
9. If the company used the average cost method, what is the value of ending
inventory and cost of goods sold?
Please round your calculated average cost per unit to 4 decimals (example -
$18.7910)
$101,500
$178,800
$280,000
$151,250
$711,550
Exit
Cost of Goods Sold:
4G
33
Transcribed Image Text:8:36 Chegg Home Expert Q&A Chapter Summary Assignment #3 (Ch 5 & 6) D2L quiz questions will be asked in class based on your completion of this preparation guide. Example in class question: What is the debit account in Question 2? You will not have time to complete this guide in class! You are required to handwrite your answers to this assignment. My answers Part 1: Prepare Bluth Co.'s journal entries for each of the following transactions. Assume that a perpetual inventory method is used. Recording Purchases of Merchandise 1. Bluth Co. purchases $75,000 of inventory on account, terms 2/10 net 30 from Sitwell Enterprise. 2. Bluth Co. returns $5,000 of inventory to Sitwell Enterprise from the initial purchase. 3 3. Bluth Co. pays the balance owed to Sitwell Enterprise, taking the discount. Recording Sales of Merchandise (new scenario) 4. Bluth Co. sells merchandise on account for $29,000 (terms 3/10 net 30) to Franklin Inc. The merchandise had cost Bluth Co. $15,500. Show Transcribed Text Ć Beginning inventory (1/1/2023) Purchase # 1: (3/2/23) Purchase #2: (7/15/23) Purchase #3: (11/31/23) 5. Franklin Inc. returns $5,500 of the merchandise to Bluth Co. Assume this returned merchandise had cost Bluth Co. $2,200. 6. Franklin Inc. pays Bluth Co. the balance owed within 10 days of the sale. Skip question Part 2: During 2023, Waystar Royco sold 31,000 units of its product. The following units were on hand or purchased during the year: Total Available for Sale Less Sold Ending Inventory Average Cost per unit = Ending Inventory: 0.06 VOD KB/S LTE2 Units 7,000 12,000 20,000 11,000 50,000 Start answering ||| Required: In the table above, fill in the number of units sold and the number of units in Ending Inventory. Calculate ending inventory and cost of goods sold for the next 3 questions. 7. If the company used the FIFO method, what is the value of ending inventory and cost of goods sold? Ending Inventory: Cost of Goods Sold: Cost per Total Cost $14.50 $14.90 $14.00 $13.75 8. If the company used the LIFO method, what is the value of ending inventory and cost of goods sold? Ending Inventory: Cost of Goods Sold: 9. If the company used the average cost method, what is the value of ending inventory and cost of goods sold? Please round your calculated average cost per unit to 4 decimals (example - $18.7910) $101,500 $178,800 $280,000 $151,250 $711,550 Exit Cost of Goods Sold: 4G 33
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