Answer the following:1. How much is the net purchases?2. How much is the "change in inventory" in 20x1?3. How much is the cost of goods sold?4. How much is the total selling expense?5. How much is the total general and administrative expense? Problem #1Use the following information for the next five questions:The nominal accounts of Rommel SP Corp. on December 31, 20x1 have the following balances:AccountsSalesInterest IncomeGainsInventory, begPurchasesFreight-inPurchase returnsPurchase discountsFreight-outSales commissionAdvertising expenseSalaries expenseRent expenseDepreciation expenseUtilities expenseSupplies expenseHILIPPINETransportation and travel expenseInsurance expenseTaxes and licensesInterest expenseMiscellaneous expenseLoss on sale of equipmentDr.65,000180,000CHTH CH 20,000 CTER30,00045,00025,000240,00030,00050,00025,00015,00015,00010,00060,0005,000Cr.739,00045,00015,000STIAN3,0005,0005,0009,000ERVICEAdditional information:a. Ending inventory is 90,000.b. One-fourth of the salaries, rent, and depreciation expenses pertain to the non-sales departmdepartment does not share in the other expenses.

Solution 1) Calculated the Net Purchase Net Purchase = Gross purchase + Freight in - Purchase…

Answer the following: 1. How much is the net purchases? 2. How much is the "change in inventory" in 20x1? 3. How much is the cost of goods sold? 4. How much is the total selling expense? 5. How much is the total general and administrative expense?

Answer the following: 1. How much is the net purchases? 2. How much is the "change in inventory" in 20x1? 3. How much is the cost of goods sold? 4. How much is the total selling expense? 5. How much is the total general and administrative expense?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 1. Cost of goods sold + ending inventory equals?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: How is Day Sales in Inventory calculated?

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: How are days’ sales in inventory calculated, and what does it measure?

A: Numbers of days to sell inventory: This ratio is determined as the number of days a particular…

Q: Which of the following is classified as general and administrative expenses? a. Salaries of admin…

A: Option d is correct.

Q: ost per unit of purchases over a period r decrease in purchases in relation to the

A: Data is unprocessed facts or figures that are not organzied.Information is processed and organized…

Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…

A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…

Q: (True or False) Cost of sales, under the periodic system, is calculated as inventory at start (plus…

A: Periodic Inventory System - Under periodic inventory system cost of goods sold will be calculated at…

Q: Net sales minus cost of good sold is equal to cost of ending inventory. T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: 12.Gross profit will result if: a. Sales revenue are greater than cost of goods sold. b. Operating…

A: Sales revenue is the amount received for the sale of goods (inventory) Cost of goods sold is cost…

Q: Gross profit isA) Cost of goods sold + Opening stockB) Sales cost of goods soldC) Sales PurchasesD)…

A: Gross profit is a financial metric used to assess a company's financial health and business model by…

Q: Which of the following statements is correct in the context of the Income Statement prepared by a…

A: The Income Statement is prepared in order to show the result of operating a business for a period of…

Q: 31. Gross Sales - Sales Discount - Sales Returns and Allowances is equal to?

A: Gross Sales : Grand total of sales transaction during a particular time period. Net Sales : Net…

Q: Total goods available for sale is equal to a. the sum of ending inventory and net purchases. b.…

A: Beginning inventory + Net purchases = Cost of goods sold + Ending inventory Total cost of goods…

Q: For each of the following formulas, select the correct name of the formula: Sales Revenue - Sales…

A: The given formulas are matched below:

Q: Which one of the following is incorrect? O a. Goods Available for Sale Opening Inventory + Net…

A: Cost of Goods Sold - Cost of Goods Sold is the cost incurred by the company to sell the goods to the…

Q: Which of the following is the correct computation for the cost of goods available for sale? a.Net…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: If the dollar amount in ending accounts payable is greater than the dollar amount in beginning…

A: Solution- Accounts payable are amounts due to vendors or suppliers for goods or services received…

Q: Which income statement account(s) would be affected by a policy choice at the same time as the…

A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…

Q: Inventory turnover is computed by dividing cost of goods sold by O 2x (ending inventory + beginning…

Q: 34. Cost of Goods Sold + Ending Inventory = _____________ Gross Profit Cost of Goods…

A: Introduction: The carrying value of items sold during a certain time period is referred to as the…

Q: HOW DO YOU GET THE REMAING TOTAL BALANCE OF INVENTORY COST?

A: The question deals with inventory valuation at LIFO method. LIFO means Last in First out. In this…

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The inventory turnover ratio compares: A. current assets to inventory. B. cost of goods sold to…

A: INVENTORY TURNOVER RATIOInventory Turnover Ratio indicates whether the investment in inventory is…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: (b) How much did the client capitalize into inventory on a per-unit basis? Inventory cost per unit $

A: Answer:- Standard costing method:- The cost of products sold is used to correct the differences in…

Q: 8- Which of the following is the formula to compute inventory turnover? 50% a) The formula is cost…

A: Inventory turnover ratio is a efficiency ratio which measures how efficiently inventory is managed.…

Q: . Inventory turnover is calculated as __________ divided by __________. cost of goods sold;…

A: Ratios are used to measure the financial position of the organization with different kinds of ratios…

Q: Using the following letters to represent items: P = purchases (net) C = cost of good sold B =…

A: We know, Ending inventory = Begining inventory + Purchases - Cost of good sold E = B + P - C

Q: How are errors in inventory between physical counts and the perpetual impact the income statement? O…

A: The practice of physically counting and confirming the precise amount of items or materials on hand…

Q: 17. Cost of goods sold: A. Is another term for merchandise sales. B. Is the term used for the cost…

A: Cost of goods sold is the total cost of units sold during the period. It is the difference between…

Q: The balance of the Cost of Goods Sold account: O a. increases when there is a sale. O b. increases…

A: When there is a sale then unit of goods would be sold more and which will increase the cost of…

Q: For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement…

Q: net income

A: Net income is stated in the income statement of the company that is calculated by deducting the…

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…

Q: Showing 1-6 of 6 items. 1. Which of the following statements is true? Gross margin = Net sales -…

A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Q: Johnson would like to know the inventory turnover ratio. You may tell Johnson to a. Divide cost of…

A: Inventory turnover ratio provide the number of times inventory comes and is sold in a year.

Q: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of…

A: Inventory management refers to the valuation of inventory in three ways FIFO, LIFO and weighted…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: How do you use FIFO and LIFO to calculate the cost of inventory?

A: Lets understand the meaning of LIFO and FIFO method. In First In First Out (FIFO) method company…

Q: Total Goods Available for Sale = Beg. Inventory + Net Purchases + ___________ Gross Profit…

A: Goods available for sale is the term that indicates the value of goods that are finished and ready…

Q: In accounting what is meant by the term 'purchases'? Select one: OA. All good purchased and paid…

A: INTRODUCTION: The recorded transaction must be gathered, categorized, and summarised. Accounting is…

Q: s the cost of goods sold from the income statement part include the cost of goods in inventory?

A: Cost of Goods Sold=Beginning Inventory+Purchases for the period-Ending Inventory

Q: What is Return on Assets? How do you calculate Inventory Turnover and The Number of Days' Sales in…

A: P

Q: PA3. 10.2 Trini Company had the following transactions for the month. Number of Units Cost per Unit…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: 11 - Which of the following is the formula to compute inventory turnover? a) The formula is cost of…

A: The inventory turnover ratio measures how efficiently inventory is managed in the organization…

Question

100%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following are several figures reported for Poyer and Sutter as of December 31, 2024: Sutter $ 280,000 760,000 Items Inventory Sales Investment income Cost of goods sold Operating expenses Poyer $ 480,000 960,000 480,000 220,000 380,000 290,000 Poyer acquired 90 percent of Sutter in January 2023. In allocating the newly acquired subsidiary's fair value at the acquisition date, Poyer noted that Sutter had developed a unpatented technology worth $74,000 that was unrecorded on its accounting records and had a five-year remaining life. Any-temaining excess fair value over Sutter's book value was attributed to an indefinite-lived trademark. During 2024, Sutter sells inventory costing $128,000 to Poyer for $176,000. Of this amount, 15 percent remains unsold in Poyer's warehouse at year-end. Required: Determine balances for the following items that would appear on Poyer's consolidated financial statements for 2024: Note: Input all amounts as positive values.
1. At the end of a period, the inventory account is _______. 2. Gross sales less sales discounts and sales returns and allowances equals____. 3. When an unearned, The revenue will go____. 4. Sales returns and allowances are used in calculating _______. 5. Ending inventory represents goods not yet ________. 6. Inventory is increased by a _______.
When inventory is sold on account, which of the following is true? Operating cash flows are increased at the time of sale. Total assets are increased by the amount of the gross profit. Net income is increased by the amount of the sales price. Revenue is not increased until the cash is received. Both net income and liabilities are increased by the amount of the sales price.
Prepare a detailed Statement of Comprehensive Income. Arrange the title of the following account in its proper position. a. How much is the total net revenue? b. How much is the total net profit from the operation? c. How much is the total gross profit? d. How much is ?the total cost of goods sold
8/ Which of the following term is referred as the inventory cost to the seller of the goods sold to customers? a. Income statement b. Inventory c. Balance sheet d. Cost of goods sold
7. Consider the following: Code: A= Gross Profit to Net Sales Ratio B= Gross Profit to Cost of Goods Sold Ratio Which equation is correct? B = A a. 1 - A b. B = 1 + A A с. B = 1 - A A d. B = A 1 + A
Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expenses
10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV
The cost of goods sold is based on the oldest purchases under which method of calculating inventory cost? O A. weighted average method O B. first in, first out (FIFO) O C. gross profit method O D. last in, first out (LIFO)
How would the following transactions affect the current ratio and the acid-test ratio? (a) Purchase of inventory with cash; and (b) sale of inventory for more than its cost. Assume that prior to these transactions the current ratio and acid-test ratio are both less than one.
how do I find the amount of inventory under the dollar value using the LIFO method?