A company is preparing its financial statements and needs to complete the following calculations using the given data: Beginning Inventory: $60,000 Ending Inventory: $90,000 Purchases during the year: $400,000 Sales Revenue: $600,000 Sales Returns and Allowances: $30,000 Operating Expenses: $150,000 Interest Expense: $20,000 Income Tax Rate: 25% The company uses the periodic inventory system. Calculate the Cost of Goods Sold (COGS), Gross Profit, Operating Income, and Net Income. S A S

A company is preparing its financial statements and needs to complete the following calculations using the given data: Beginning Inventory: $60,000 Ending Inventory: $90,000 Purchases during the year: $400,000 Sales Revenue: $600,000 Sales Returns and Allowances: $30,000 Operating Expenses: $150,000 Interest Expense: $20,000 Income Tax Rate: 25% The company uses the periodic inventory system. Calculate the Cost of Goods Sold (COGS), Gross Profit, Operating Income, and Net Income. S A S

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Under the periodic inventory system, what account is debited when an estimate is made for the cost of merchandise inventory sold this year, but expected to be returned next year? (a) Estimated Returns Inventory (b) Sales Returns and Allowances (c) Merchandise Inventory (d) Customer Refunds Payable
Under the periodic inventory system, what account is debited when an estimate is made for sales made this year, but expected to be returned next year? (a) Sales Returns and Allowances (b) Merchandise Inventory (c) Customer Refunds Payable (d) Sales
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Under the periodic inventory system, what account is credited when an estimate is made for sales made this year, but expected to be returned next year? (a) Merchandise Inventory (b) Customer Refunds Payable (c) Sales (d) Sales Returns and Allowances
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The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B. Instructions 1. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the first-in, first-out method and the periodic inventory system. 2. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the last-in, first-out method and the periodic inventory system. 3. Determine the inventory on June 30 and the cost of merchandise sold for the three-month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar. 4. Compare the gross profit and June 30 inventories using the following column headings:
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