2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost $7000 $7100 $28,000 May 2 May 20 May 25 4 2. 14,200 8. $7250 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:
Q: Crane Company began the year with 8 units of marine floats at a cost of $10 each. During the year,…
A: FIFO method:Under this method, the inventory which is purchased first will sold first and the…
Q: A car dealer acquires a used car for $16,000, with terms FOB shipping point. Compute total inventory…
A: Advertising, Sales staff salaries and trimming shrubs are the indirect cost that should not form…
Q: Topsy Company started a new promotional program. For every 10 box tops returned, customers receive a…
A: Estimated no. of box tops returned = (Sale of product /10) x 60% = (100000 / 10) x 60% = 6,000
Q: A car dealer acquires a used car for $14,000, with terms FOB shipping point. Compute total inventory…
A:
Q: On January 2018, school bags for Tk. 1,00,000 and sold it to Arif Ltd for Tk. 1,20,000. Using these…
A: Needs to Calculated the Vat on the chain of transaction. Concept of Vat is to be use that value…
Q: Art Company started a new promotional program. For every 10 box tops returned, customers receive a…
A: Premium (Gift) means the product given free of cost to the customer on fulfilling the certain…
Q: A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory…
A: Formula: Total Inventory cost = Car cost + Transportation + shipping insurance + import duties…
Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of…
A: Value of closing inventory includes all the expenses (fixed or variable) excluding Selling and…
Q: 1. A used machine with a purchase price of $33,533, requiring an overhaul costing $8,904,…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A distributor of artistic iron-based fixtures acquires a piece for $1,000, terms FOB shipping point.…
A: Cost of Inventory: It can be defined as the cost of buying the merchandise, deducting any discount…
Q: A car dealer acquires a used car for $ 14,000, with term FOB shipping point. Compute total inventory…
A: Under FOB shipping point sales, all transport charges are paid by buyer only. So buyer should…
Q: U-Save Automotive Group purchased 10 vehicles during the current month. Two trucks were purchased…
A: Specific identification method can be applied in situations where different purchases can be…
Q: Martin Company uses 625 units of a part each year. The cost of placing one order is $8; the cost of…
A: Q=EOQ units D=Demand in units (typically on an annual basis) S=Order cost (per purchase order)…
Q: Win Company consigned 10 refrigerators to Baek Sales Company. Each refrigerator has manufacturing…
A: The question is related to Consignment Sales. In the question it is given that 10 refrigerators to…
Q: A car dealer acquires a used car for $12,000, with terms FOB shipping point. Compute total inventory…
A: The inventory cost is the cost incurred in bringing a product to sale and making it available for…
Q: Bulldogs Inc. sells the following products. The following were obtained from the records: 2022 Cost…
A: Given, Data for Dog Food Units sold in 2022 of Dog Food = 500, Units sold in 2021 of Dog Food = 250,…
Q: Hartley Auto Supply delivers parts to area auto ser-vice centers and is replacing its fleet of…
A: Given information is: Vehicle purchase cost = $25000 Operating cost per mile = $0.13 Useful life =…
Q: Page 378 Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed…
A: Part a1:
Q: 2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the…
A: Please find the answers to the above questions below:
Q: Prepare journal entries, including adjustments to record the above transactions assuming the company…
A: Journal entry under both system as well as calculation of cost of goods sold are as follows.
Q: Printer Supply Company sells computer printers and printer supplies. One of its products is a toner…
A: For each purchase and sales transaction, Inventory account must be used to record the entry using…
Q: SOUND CORE WIRELESS sells a variety of mobile telephone accessories including several brands of…
A: A perpetual inventory system is a program that continuously estimates your inventory based on your…
Q: Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the…
A: Note: No inventory valuation method is specified therefore the question is solved with First in…
Q: Your Company sells exercise bikes for $675 each. The following cost formula relates to last year's…
A: Net income is the amount remaining after reducing all the costs and expenses from the sales revenue.…
Q: Page 378 Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed…
A: We are supposed to solve the first three subparts. Since the question is time taking I solve the…
Q: Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a…
A: The correct answer calculation is given in the following steps for your reference.
Q: During 2009, Accent Toys Plc., which began business in October of that year, purchased 10,000 units…
A: FIFO (First in First out) method is the method in which units which are coming first in the business…
Q: Determine the cost of goods sold under LIFO:
A: Answer Cost flow statement using LIFO Cost of Goods Available for Sale Cost of Goods Sold…
Q: 2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the…
A: Unit Cost under Average COst Method = Total Cost/Total Units Purchased = 98,500/12 = $8208.33…
Q: Bramble Corp. began the year with 10 units of marine floats at a cost of $12 each. During the year,…
A: First in first out: It refers to the method of inventory valuation that calculates the balance of…
Q: A solar panel dealer acquires a used panel for $9,000, with terms FOB shipping point. Compute total…
A: Inventory: Inventories are the primary materials which are used in the production process to get…
Q: A car dealer acquires a used car for $11,000, with terms FOB shipping point. Compute total inventory…
A: Inventory means the stock of goods in which the businessmen deals. All cost related with purchase of…
Q: During 2009, Accent Toys Plc., which began business in October of that year, purchased 10,000 units…
A: First in first out: Under this method stocks issued on the basis of the first in means if any stocks…
Q: 6) Lucy's Spa and Salon Services Company estimates that it costs $38,000 annually to carry their…
A: Given that: Total cost = $38000 Storage and Handling Costs = 10% Interest = 15% Taxes and Insurance…
Q: 2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the…
A: Under Average cost method, average cost per unit of inventory will be calculated to calculate cost…
Q: . Prepare summary journal entries to record the purchases, sales, and return of inventory. Assume…
A: Whenever a Company Perpetual method of inventory then the inventory records are maintained…
Q: Hartley Auto Supply delivers parts to a rea autoservice centers and is replacing its fleet of…
A: Given information is: Vehicle purchase cost = $25000 Operating cost per mile = $0.13 Useful life =…
Q: A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory…
A: The cost related to inventory are categorised in two ways - one as to include in the cost of…
Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…
A: As per IFRS 2, Inventories, Cost of inventory includes purchase price,transportation costs,…
Q: uds are sold in cases, with each case containing a pair of earbuds. SOUND CORE began the last…
A: The journal entries of the perpetual and periodic inventory system are as follows:
Q: 13. Lucy's Spa and Salon Services Company estimates that it costs $38,000 annually to carry their…
A: Handling costs: It refers to the expenses incurred related to the shipment, transportation, and…
Q: Tops Company started a new promotional program. For every 10 box tops returned to Tops, customers…
A: ESTIMATED LIABILITIES REPRESENT KNOWN OBLIGATIONS THAT HAVE AN INDEFINITE DUE DATE AND AMOUNT .
Q: During 2009, Accent Toys Plc., which began business in October of that year, purchased 10,000 units…
A: Introduction: In FIFO method, the merchandise or inventory which was purchased 1st must be sold…
Q: year, the following events occurred: Summer Company is a wholesaler of car seatcovers. At the…
A: Inventory is the raw materials used in production as well as the goods that are available for sale.…
Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…
A: Advertising, Sales staff salaries and Trimming shrubs expenses are not included in the cost of…
Q: A car dealer acquires a used car for $20,000, with terms FOB shipping point. Compute total inventory…
A: In the given situation, all costs except advertising, sales staff salaries and trimming shrubs…
Q: Summer Company is a wholesaler of car seatcovers. At the beginning of the current year, the entity's…
A: Inventory:- Inventory is defined as the goods or materials which is held by particular company in…
Q: A solar panel dealer acquires is used panel for $9,000, with terms FOB shipping point. Compute total…
A: The cost of an asset or inventory includes all the cost that is required to bring the asset to its…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the current year, Sea Travel purchased 15 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost May 2 4 $7000 $28,000 May 20 2 $7100 14,200 May 25 8 $7250 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute LIFO COGS: Ending inventory: Date Debit Credit Db Cr2) Sea Travel sells motor boats. One of Sea Travel’s most popular models is the Wing. During the current year, Sea Travel purchased 15 Wings at the following costs. Purchase Date Units Purchased Unit Cost Total cost May 2 4 $7000 $28,000 May 20 2 $7100 14,200 May 25 8 $7250 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a)the cost of goods sold on May 28 and b)The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c)Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the: Show Calculation. a. Average cost COGS: Ending inventory: Date Debit Credit Db Cr b.FIFO COGS: Ending inventory: Date Debit Credit Db Cr…2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Total cost Unit Cost $7000 $7100 $7250 Purchase Date Units Purchased May 2 May 20 May 25 $28,000 14,200 4 8 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:
- Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World Cycles purchased eight of these bikes at the following costs. Purchase Date July 1 July 22 Aug. 3 Units Purchased Unit Cost 2 3 3 8 $4,950 5,000 5,100 Total Cost $ 9,900 15,000 15,300 $ 40,200 On July 28, Speed World Cycles sold four Kazomma 900 dirt bikes to the Vince Wilson racing team. The remaining four bikes remained in inventory at September 30, the end of Speed World's fiscal year. Assume that Speed World Cycles uses a perpetual inventory system. (See the data provided.) Required: a-1. Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using Average cost. a-2. Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using FIFO method. a-3. Compute…Bashful Ltd. began business on January 1 and sells high performance motor scooters. The company purchased nine high speed scooters at the following dates and acquisition costs: Purchase Date Units Unit Cost Total Cost Jan 1 3 $4,150 $12,450 Jan 22 3. 4,650 13,950 Mar 3 4,850 14,550 6. $40,950 On April 23, Bashful sold four of these scooters to Snow White Inc. for $7,500 each. No other sales have been made. Bashful uses a periodic inventory system. Required: 1. Compute the ending inventory value at April 30, 2022 and the cost of goods sold through this date under each of the periodic costing procedures 1. Average cost 2. FIFO 2. Calculate the gross profit and the gross profit percentage under each of the costing methods.Jefferson Print Supplies, Inc., sells laser printers and supplies. Assume Jefferson started the year with 100 containers of ink (average cost of $9.10 each, FIFO cost of $8.40 each, LIFO cost of $7.90 each). During the year, the company purchased 800 containers of ink at $10.00 and sold 600 units for $20.00 each. Jefferson paid operating expenses throughout the year, a total of $3,900. Ignore income taxes for this exercise. Prepare Jefferson's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.) Sales revenue Cost of goods sold Gross profit Operating expenses Net income Jefferson Print Supplies, Inc.…
- Carson Print Supplies, Inc., sells laser printers and supplies. Assume Carson started the year with 100 containers of ink (average cost of $8.90 each, FIFO cost of $9.00 each, LIFO cost of $7.80 each). During the year, the company purchased 800 containers of ink at $9.80 and sold 600 units for $21.50 each. Carson paid operating expenses throughout the year, a total of $4,000. Ignore income taxes for this exercise. Prepare Carson’s income statement for the current year ended December 31 using the aver-age-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading.6. Rosas Company started a promotional program in which for every 15 box tops returned, customers received a special mug. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information for the current year: Units Amount Product Sales 10,000 20,000,000 150,000 Mugs purchased 500 Mugs distributed 350 What amount should be recorded by Rosas Company as Estimated Liability for the current year?Watson Print Supplies, Inc., sells laser printers and supplies. Assume Watson started the year with 90 containers of ink (average cost of $8.50 each, FIFO cost of $8.90 each, LIFO cost of $7.80 each). During the year, the company purchased 720 containers of ink at $10.30 and sold 580 units for $19.75 each. Watson paid operating expenses throughout the year, a total of $4,050. Ignore income taxes for this exercise. Prepare Watson's income statement for the current year ended December 31 using the average-cost, FIFO, and LIFO inventory costing methods. Include a complete statement heading. Complete the income statement by selecting the appropriate heading and income statement labels, and then calculating the amounts for each of the three required inventory methods. (Calculate unit costs to the nearest cent. Round all other calculations to the nearest whole dollar.) Sales revenue Cost of goods sold Gross profit Operating expenses Net income ▼ Watson Print Supplies, Inc. Income Statement…
- Crankshaft Company manufactures equipment. Crankshaft products range....unit selling prices range from $200,000 to $1,500,000....Crankshaft has the arrangement with Winkerbean....Winkerbean purchases equipment from Crankshaft for a price of $1,000,000. Crankshaft determines installation to be $50,000. Cost of equipment is $600,000. Crankshaft delivers equipment of June 1, 2020 and completes installation on Sept. 30, 2020. Equipment has useful life of 10 years. How should the transaction of $1,000,000 be allocated among the service obligation? Prepare journal entries for this revenue arrangement on June 1 and Sept. 30,Toys Co. started a new promotional program. For every 10 box tops returned, customers receive a basketball. The entity estimated that only 60% of the box tops reaching the market would be redeemed. Sales of products 100,000 units for P 30,000,000 Basketballs purchased 5,500 units for P 4,125,000 Basketballs distributed 4,000 units . What is the premium expense for the year? ______ What is the amount of year -end estimated liability associated with this promotion? ________ respectively * A.4,125,000 and 3,000,000 B.7,500,000 and 4,500,000 C.4,500,000 and 1,500,000 D.1,500,000 and 1,500,000 E.4,500,000 and 4,125,000Crane Company began the year with 8 units of marine floats at a cost of $10 each. During the year, it made the following purchases: May 5, 32 unit at $15; July 16, 15 units at $19; and December 7, 20 units at $23. Assume there are 25 units on hand at the end of the period. Crane uses the periodic approach. Determine the cost of goods sold under FIFO. FIFO Cost of good sold $ eTextbook and Media Determine the cost of goods sold under LIFO. LIFO Cost of good sold $ eTextbook and Media Calculate average unit cost. (Round answer to 2 decimal places, e.g. 5.12.) Average unit cost $ eTextbook and Media Determine the cost of goods sold under average-cost. Average-Cost Cost of good sold $