ABC Company sold selected merchandise on consignment basis during 2021. ABC's 2021 accounting records show the following information: Inventory, January 1- P244,000 Purchases- P2,080,000 Freight-in-P20,000 Freight-out to customers- P70,000 Freight-out to consignees- P10,000 Inventory on hand, December 31- P290,000 Inventory on consignment, December 31- P40,000 What amount should ABC report as cost of goods sold in its 2021 statement of comprehensive income?

ABC Company sold selected merchandise on consignment basis during 2021. ABC's 2021 accounting records show the following information: Inventory, January 1- P244,000 Purchases- P2,080,000 Freight-in-P20,000 Freight-out to customers- P70,000 Freight-out to consignees- P10,000 Inventory on hand, December 31- P290,000 Inventory on consignment, December 31- P40,000 What amount should ABC report as cost of goods sold in its 2021 statement of comprehensive income?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The inventory and purchases data of Illumina Company for the last quarter of 2023 are as follows Beginning Inventory: At cost - P650,000; At retail - P1,075,000 Purchases during the period: At cost - P2,450,000; At retail - P3,025,000 Freight in - P50,000; Net markup - P400,000; Net markdown - P300,000 Net sales during the period - P3,880,000 Question:If Illumina uses the first-in, first-out basis and ignores the lower of cost and net realizable value rule, what is the ending inventory at estimated cost? a. P320,000 b. P256,000c. P240,000d. P224,000
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022. Available information follows: a. The inventory at January 1, 2022, had a retail value of $49,000 and a cost of $34,380 based on the conventional retail method. b. Transactions during 2022 were as follows: Gross purchases Purchase returns Purchase discounts Sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost $ 323,040 6,300 5,400 Beginning inventory 28,500 Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost Retail $530,000 14,000 Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2023, inventory was $85,330, the cost-to-retail percentage for 2023 under the LIFO retail method was 69%, and the appropriate price index was 106% of the January 1, 2023, price level. d. The retail value of the December 31, 2024, inventory was $52,320, the cost-to-retail percentage for…
Yellow Corporation sold selected merchandise on a consignment basis during 2020. Yellow's accounting records show the following information: Inventory, January 1 = 244, 000 Inventory on hand, December 31 = 290,000 Inventory out on consignment, December 31 = 40,000 Purchases = 1,080,000 Freight-in = 20,000 Freight-out to customers = 70,000 Freight-out to consignees = 10,000 What amount should YELLOW report as cost of goods sold in its 2020 income statement? a. 1,014,000 b. 1,354,000 c. 1,024,000 d. 1,094,000
What is the correct amount of inventory on December 31, 2024?
During 2021, a company sells 280 units of inventory for $86 each. The company has the following inventory purchase transactions for 2021: Date Transaction Numberof Units UnitCost Total Cost Jan. 1 Beginning inventory 68 $ 68 $ 4,624 May 5 Purchase 166 69 11,454 Nov. 3 Purchase 190 71 13,490 424 $ 29,568 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory: __________ Cost of goods sold: ___________
PROBLEM: Based on its general ledger/records, Alfonso Co. reported inventory of P356,400 at the end of 2021. The following items were included in the inventory total: P31,500 worth of goods shipped by "Free Along Side" on December 31, 2021, and received by Alfonso Co. on January 5, 2022. а. Goods worth P12,400 ordered from a supplier on December 26, 2021, were shipped on December 28 "Cost, Insurance, and Freight" but had not arrived by December 31. b. P14,800 worth of goods ordered on December 25, 2021, were shipped to Alfonso Co. FOB "Ex-ship" on December 28, 2021, and received on January 2, С. 2022. d. A client ordered P21,600 worth of goods on December 27, 2021, which were dispatched FOB Seller on December 29, 2021, and received by the customer on January 5, 2022. On December 29, 2021, goods worth P12,500 were shipped FOB Buyer to a client. The goods are still on their way, and the customer anticipates receiving them on January 6, 2022. е. What is the correct inventory amount to…
During 2021, a company sells 356 units of inventory for $93 each. The company has the following inventory purchase transactions for 2021: Number of Units 61 Unit Cost Total Cost $61 63 Date Transaction Jan. 1 Beginning inventory May 5 Purchase Nov. 3 Purchase $ 3,721 10,269 12,078 $26,068 163 183 66 407 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO. Ending inventory Cost of goods sold
Total merchandise inventory as of January 1, 2019 amounted to PBlank 1.
On January 15, 2021, Marimar Company shipped 100 cellphone units to Sergio Company. The related data: The list price per unit P5,200 Trade discount per unit 200 Freight charges paid in cash 3,500 FOB destination Tem of payments 2/10, n/30 The invoice price is 60% based on sales. On January 25, 2021, Sergio Company paid 50% of the total shipment. The entity uses the perpetual inventory system. Requirements: What are the related journal entries under the gross method and the net method? At month-end, how much is the entity's accounts receivable under the gross method? At month-end, how much is the entity's accounts receivable under the net method?
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in…
Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in merchandise was purchased on account with credit terms 1/15, n/45. All discounts were taken. Purchases were all made FOB Origin. Ayo paid freight charges of P7,500. Merchandise with an invoice amount of P5,000 was returned for credit. Cost of goods sold for the year was P380,000. Ayo uses the perpetual inventory system. What is the ending inventory assuming Ayo uses the gross method to record purchases?
Maroon Company’s inventory at December 31, 2021 amounts to P555,000 based on physical count of goods priced at cost and before any year-end adjustments relating to the following:a. Goods with a selling price of P30,000 were in transit to a customer as of December 31, 2021. Terms 2/10, 2/30, FOB shipping point. The freight cost of P1,400 was prepaid by Maroon. These goods cost P24,000.b. Goods shipped FOB shipping point on December 28,2021 from a supplier to Maroon Company were received on January 5, 2022. The invoice amount is P 25,000.c. Goods shipped from Maroon to Pink , a customer, terms FOB destination, are still in transit at December 31, 2021. The goods with a selling price of P120,500, were received by Pink on January 3, 2022 The company sells goods at a mark up of 25% of cost.d. Goods purchased FOB destination were in transit at December 31,2021. The goods with invoice price of P16,500 were received on January 7, 2022. What amount should Maroon report as inventory in…