General Accounting Artisan Creations, Inc. is a merchandiser of handcraftedpottery. The company sold 10,000 units during the year. Thecompany has provided the following information:InformationAmount ($)Sales Revenue750,000Purchases (excluding Freight In)400,000Selling and Administrative Expenses80,000Freight In18,000Beginning Merchandise Inventory50,000Ending Merchandise Inventory45,000What is the operating income for the year? (Round the answerto the nearest whole dollar.)A. $358,000B. $242,000C. $250,000D. $247,000

Step 1: Define Operating IncomeOperating income is the profit realized from a company's core…

Answered: Artisan Creations, Inc. is a…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 3MAD: The general merchandise retail industry has a number of segments represented by the following...

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The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies: a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place. b. Determine the number of days sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place. c. Interpret these results based on each companys merchandising concept.
Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and sales for the year are as follows: Purchases: Sales: The president of the company, Connie Kilmer, has asked for your advice on which inventory cost flow method should be used for the 32,000-unit physical inventory that was taken on December 31. The company plans to expand its product line in the future and uses the periodic inventory system. Write a brief memo to Ms. Kilmer comparing and contrasting the LIFO and FIFO inventory cost flow methods and their potential impacts on the companys financial statements.
Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 7,500 units during the year. The company has provided the following information: Sales Revenue Purchases (excluding Freight In) Selling and Administrative Expenses Freight In Beginning Merchandise Inventory Ending Merchandise Inventory $599,000 301,000 69,000 14,000 45,000 42,000 What is the operating income for the year? (Round your answer to the nearest whole dollar.) OA. $318,000 OB. $281,000 OC. $530,000 OD. $212,000
Stone Beauty, Inc. is a merchandiser of stone omaments. The company sold 7,000 units during the year. The company has provided the following information: Sales Revenue Purchases (excluding freight in) $591,000 302,000 Selling and Administrative Expenses 69,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 Ending Merchandise Inventory 43,000 What is the cost of goods available for sale for the year?
Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. The company has provided the following information: Sales Revenue Purchases (excluding Freight In) Selling and Administrative Expenses Freight In Beginning Merchandise Inventory Ending Merchandise Inventory What is the operating income for the year? (Round your answer to the nearest whole dollar.) OA. $320,000 OB. $247,000 OC. $178,000 OD. $498,000 $567,000 305,000 69,000 15,000 43,000 43,000 C
Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 8,000 units during the year. The company has provided the following information: Sales Revenue Purchases (excluding Freight In) $593,000 304,000 Selling and Administrative Expenses 68,000 Freight In 14,000 Beginning Merchandise Inventory 46,000 42,000 Ending Merchandise Inventory What is the operating income for the year? (Round the answer to the nearest whole dollar.) A. $322,000 B. $525,000 C. $203,000 D. $271,000
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Shown here are annual financial data taken from two different companies. Beginning inventory: Merchandise Music World Retail Wave-Board Manufacturing $1,35,000 Finished goods $ 2,30,000 Cost of purchases $ 3,40,000 Cost of goods $ 5,71,000 manufactured Ending inventory: Merchandise Finished goods Required: $1,90,000 $ 2,20,000 Prepare the cost of goods sold section of the income statement for the year for each company in Merchandising Business and Manufacturing Business.

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