treamturos.comB PROBLEMSPS-1B (Various Inventory Issues) The following independent situations relate to inventory accounting.1. Hammer Co. purchased goods with a list price of $260,000, subject to trade discounts of 25% and10%, with no cash discounts allowable. How much should Hammer Co. record as the cost of thesegoods?2. Pine Company's inventory of $1,761,000 at December 31, 2014, was based on a physical count ofgoods priced at cost and before any year-end adjustments relating to the following items.(a) Goods shipped from a vendor f.o.b. shipping point on December 28, 2014, at an invoice cost of$85,500 to Pine Company were received on January 2, 2015.(b) The physical count included $61,000 of goods billed to Douglas Corp. f.o.b. shipping point onDecember 31, 2014. The carrier picked up these goods on January 1, 2015.What amount should Pine report as inventory on its balance sheet?Potter Corp. had 1,000 units of part Z65 on hand July 1, 2014, costing $62 each. Purchases of part Z65during July were as follows8.UnitsUnits CostJuly 3$63.000o 0 027A physical count on July 31, 2014, shows 1,500 units of part Z65 on hand. Using the FIFO method,what is the cost of part Z65 inventory at July 31, 2014? Using the LIFO method, what is the inventorycost? Using the average cost method, what is the inventory cost?4. Hsieh Company adopted the dollar-value LIFO method on January 1, 2014 (using internal price in-dexes and multiple pools). The following data are available for inventory pool A for the 2 years fol-lowing adoption of LIFO.At Base-At Current-InventoryYear CostYear Cost$334,000375,440449,0801/1/2014$334,00012/31/201412/31/2015412,000Computing an internal price index and using the dollar-value LIFO method, at what amount shouldthe inventory be reported at December 31, 2014?5. White Inc., a mega retail store, had the following information in its general ledger for the year 2014.Merchandise purchased for resaleInterest on notes payable to vendorsPurchase returns$2,684,10012,800121,60056,10031,10024,850Freight-inFreight-outCash discounts on purchasesWhat is White's inventoriable cost for 2014?InstructionsAnswer each of the preceding questions about inventories, and explain your answers.

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8-1B (Various Inventory Issues) The following independent situations relate to inventory accounting 1. Hammer Co. purchased goods with a list price of $260,000, subject to trade discounts of 25% and 10%, with no cash discounts allowable. How much should Hammer Co. record as the cost of these goods? 2. Pine Company's inventory of $1,761,000 at December 31, 2014, was base

8-1B (Various Inventory Issues) The following independent situations relate to inventory accounting 1. Hammer Co. purchased goods with a list price of $260,000, subject to trade discounts of 25% and 10%, with no cash discounts allowable. How much should Hammer Co. record as the cost of these goods? 2. Pine Company's inventory of $1,761,000 at December 31, 2014, was base

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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Assume the perpetual inventory system is used unless stated otherwise.Accounting principles for inventory and applying the lower-of-cost-or-market rule Some of M and C Electronics’s merchandise is gathering dust. It is now December 31, 2018, and the current replacement cost of the ending merchandise inventory is $24,000 below the business’s cost of the goods, which was $97,000. Before any adjustments at the end of the period, the company’s Cost of Goods Sold account has a balance of $380,000. Requirements Journalize any required entries. At what amount should the company report merchandise inventory on the balance sheet? At what amount should the company report cost of goods sold on the income statement? Which accounting principle or concept is most relevant to this situation?
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12/Ibri company has an Inventory of RO 68,000 and RO 134,000 of Cost of goods sold in its unadjusted trial balance during the year 2018. The physical inventory count came to RO 61,000. What is the adjusting journal entry to be used to record the above? a. Merchandise inventory RO 7,000 Dr/ Cost of goods sold RO 7,000 Cr b. Cost of goods sold RO 7,000 Dr / Merchandise inventory RO 7,000 Cr c. Cost of goods sold RO 68,000 Dr / Merchandise inventory RO 68,000 Cr d. Merchandise inventory RO 61,000 Dr/ Cost of goods sold RO 61,000 Cr
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Q.17 From the following calculate the earnings of workers A,B,C under Halsey plan and Rowan scheme of payment: Worker Standard time (Hours): Actual (Hours) 3. 4 :5 .. 1.... .... Basić wages per hour 2 2. May 2017
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28) A company uses the conventional retail inventory method to account for inventory. The following information relates to current year's operations: Beginning inventory and purchases. Net markups Net markdowns Net sales What amount should be reported as cost of goods sold for the year? 300235 299884 301400 none Cost $ 319,0001 Retail $ 534,000 46,000 36,000 512,000
7. Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company’s records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition): 17,500 units @ $15 $ 262,500 22,500 units @ $20 450,000 Beginning inventory $ 712,500 During 2021, 45,000 units were purchased for $25 per unit. Due to unexpected demand for the company's product, 2021 sales totaled 55,000 units at various prices, leaving 30,000 units in ending inventory. Required:1. Calculate the amount to report for cost of goods sold for 2021.2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2021 financial statements. Assume an income tax rate of 25%.3. If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?
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2. Assume that Breakthrough Company uses a periodic inventory system and has these account balances: Freight-In $19,000; Purchase Discounts $11,000; Net Sales of $750,000; inventory,4/1 of $45,000; Operating Expenses $39,500; Purchase Returns and Allowances $25,000; Freight-Out $ 24,000; inventory,4/30 of $55,000; and Purchases $630,000. Required: Using the appropriate account titles and subtotals prepare in proper format the detailed cost of goods sold section for the month ended Aoril 30, 2021