A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include • $290 for transportation-in. • $190 for shipping insurance. $1,000 for car import duties. • $200 for advertising. $1,400 for sales staff salaries. • $190 for trimming shrubs. Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total $ $ Cost 7,000 290 1,000 190 200 1,400 190 10,270 Included in Expensed as Inventory Cost incurred

A car dealer acquires a used car for $7,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include • $290 for transportation-in. • $190 for shipping insurance. $1,000 for car import duties. • $200 for advertising. $1,400 for sales staff salaries. • $190 for trimming shrubs. Cost Transportation-in Import duties Insurance during shipment Advertising Sales staff salaries Trimming shrubs Total $ $ Cost 7,000 290 1,000 190 200 1,400 190 10,270 Included in Expensed as Inventory Cost incurred

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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A car dealer acquires a used car for $17,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $200 for transportation-in. $180 for shipping insurance. $750 for car import duties. . $170 for advertising. $2,000 for sales staff salaries. $100 for trimming shrubs. Cost Included in Inventory Cost Expensed as incurred Cost Transportation-in $ 17,000 200 Import duties 750 Insurance during shipment 180 Advertising 170 Sales staff salaries Trimming shrubs 2.000 100 Total $ 20,400
Goods have been sold that cost $3.000 to make. Provide the journal entry to record the costs associated with the sale.
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Required information [The following information applies to the questions displayed below.] Sylvester has a bird shop that sells canaries. Sylvester maintains accurate records on the number of birds purchased from its suppliers and the number sold to customers. The records show the following purchases and sales during 2021. Cost per Unit Date Transactions Units Total Cost Beginning inventory Purchase $ 28 $1,036 January 1 April 14 August 22 October 29 37 2,040 3,776 2,822 68 30 Purchase Purchase 118 32 83 34 306 $9,674 Jan. 1-Dec. 31 Sales ($48 each) 272 Sylvester uses a periodic inventory system and believes there are 34 birds remaining in ending inventory. However, Sylvester neglects to make a final inventory count at the end of the year. An employee accidentally left one of the cages open one night and 10 birds flew away, leaving only 24 birds in ending inventory. Sylvester is not aware of the lost canaries 3. What effect will the inventory error have on and (d) net income (ignoring…
Page 4 of 9 Keiler Motorcycle Shop completed the following transactions during the month of October. Keiler uses a perpetual inventory system. Any freight paid was paid with cash. Oct. 3 Purchased 20 bikes at a cost of $1,150 each from the Lyons Bike Company, under credit terms 1/30, n/45. FOB shipping point. 4 The correct company paid $150 cash freight for above shipment 6 Sold 10 bikes to Doug's Bicycle for $1,500 each, terms 1/15, n/30. Terms FOB destination. 7 Received credit from the Lyons Bike Company for the return of 2 defective bikes. 13 Issued a credit to Doug's Bicycle for the return of one bike from Oct 6 sale. 17 Purchased with cash Office Supplies from the Office Depot in the amount of $200. 20 Doug's Bicycle paid their account in full 24 Paid Lyons Bike Company. Required: Part A: Journalize the above transactions Part B: Calculate the balance of inventory at October 31, assuming the opening balance is $5,000 Part C: dentify one transaction that would be recorded…
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Bonita's Used Cars uses the specific identification method of costing inventory. During March, Indrisano purchased three cars for $11500, $14700, and $19100, respectively. During March, two cars are sold for a total of $35000. Bonita determines that on March 31, the $14700 car is still on hand. What is Bonita's gross profit for March? $5200 Ⓒ$1200 $8800 $4400
Use the following information for The Tinted View, a retail merchandiser of auto windshields, to compute the cost of goods sold (Click the icon to view the information.) = Cost of Goods Sold Data table Web Site Maintenance Delivery Expense $ 7,600 1,000 Freight In 2,400 Purchases 50,000 Ending Merchandise Inventory 4,700 Revenues 68,000 Marketing Expenses 10,300 Beginning Merchandise Inventory 8,600 Print Done - X