A firm had two departments, cloth and ready-made clothes. The clothes were made by the firm itself out of cloth supplied by the cloth department at its usual selling price. From the following figures prepare departmental Trading and Profit & Loss Account for the year 1998. Cloth ready-made Clothes Dept. Dept., $ $ Opening stock on January 1, 1998 3,00,000 50,000 Purchases 20,00,000 15,000 Sales 22,00,000 4,50,000 Transfer to ready-made clothes dept., 3,00,000 Expenses - Manufacturing 60,000 Selling 20,000 6,000 Stock on December 31, 1998 2,90,000 60,000 The stocks in the ready-made clothes department may be considered as consisting of 75% cloth and 25% other expenses. The Cloth Dept. earned gross profit at the rate of 18% in 1997. General expenses of the business as a whole came to $. 1,10,000.

A firm had two departments, cloth and ready-made clothes. The clothes were made by the firm itself out of cloth supplied by the cloth department at its usual selling price. From the following figures prepare departmental Trading and Profit & Loss Account for the year 1998. Cloth ready-made Clothes Dept. Dept., $ $ Opening stock on January 1, 1998 3,00,000 50,000 Purchases 20,00,000 15,000 Sales 22,00,000 4,50,000 Transfer to ready-made clothes dept., 3,00,000 Expenses - Manufacturing 60,000 Selling 20,000 6,000 Stock on December 31, 1998 2,90,000 60,000 The stocks in the ready-made clothes department may be considered as consisting of 75% cloth and 25% other expenses. The Cloth Dept. earned gross profit at the rate of 18% in 1997. General expenses of the business as a whole came to $. 1,10,000.

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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The problem is stated in the picture. Here is the question: 1. How much is the gross profit for the year?
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2. A gift store reported the following records for its operation during the month of February. @Cost $280,000 @Retail Inventory on Feb. 1 $435,000 $440,000 $88,000 $20,000 Net sales Markdowns Returns to vendors $15,000 $15,000 $498,000 Employee discounts Purchases $320,000 What was the book value of the closing inventory at retail in February? a. b. What was the cumulative markup% of total merchandise handled in February? (Hint: Cumulative MU% is the MU% for Total Merchandise Handled (TMH), and TMH = Opening inventory + Purchases – RTV) Cost Retail c. What was the book inventory at cost on February 28 when the store closed?
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When you undertook the preparation of the financial statements for ABC Company at January 31, 20X1, the following data were available: At Cost At Retail Inventory, February 1, 20X0 P70,800 P 98,500 Markdowns 35,000 Markups 63,000 Markdown cancellations 20,000 Markup cancellations 10,000 Purchases 219,500 294,000 Sales 345,000 Purchases returns and allowances 4,300 5,500 Sales returns and allowances 10,000 Compute the ending…
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[The following information applies to the questions displayed below.] Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $ 14,000 $ 40,000 Inventory (ending) 8,000 50,000 Purchases 120,000 150,000 Purchase returns 5,000 50,000 4. Which company appears to be managing its inventory more efficiently? multiple choice Lewis Incorporated Clark Enterprises
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