A. Presented below is information related to Waveland Inc.CostRetailInventory, 1/1/19412,500585,000Purchases1,446,7502,190,000Purchase returns82,500105,000Purchase discounts12,000Gross sales2,115,000Sales returns176,250Markups180,000Markup cancellations60,000Markdowns67,500Markdown cancellations30,000Freight-in46,500Employee discounts granted27,000Loss from breakage (abnormal)7,50015,000Loss from breakage (normal)6,750Assuming that Waveland Inc. uses the conventional retail inventory method, computethe cost of its ending inventory at December 31, 2019.

Name: A. Presented below is information related to Waveland Inc.CostRetailI
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: A. Presented below is information related to Waveland Inc.CostRetailInventory, 1/1/19412,500585,000Purchases1,446,7502,190,000Purchase returns82,500105,000Purchase discounts12,000Gross sales2,115,000Sales returns176,250Markups180,000Markup cancellat

Computation of ending inventory is as follows: Result:

Answered: Assuming that Waveland Inc. uses the…

Business

Accounting

Assuming that Waveland Inc. uses the conventional retail inventory method, compute the cost of its ending inventory at December 31, 2019.

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

Williams maintains its records of inventory on a perpetual basis using the first-in, first-out (FIFO) method. Calculate the amount of ending Merchandise Inventory on December 31, 2020 using the lower-of-cost-or-market rule.
Campbell Corporation uses the retsil method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 Purchases Freight-in Net markups Net narkdowns Net sales $248, 0ee 562, 5e0 18,0e0 $330, e00 890, e00 30, 800 14, 880 850, e00 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratlo calculation to 2 decimal places (1.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a mlnus sign.) Cost-to-Retall Ratio Cost Retall Beginning inventory 240,000 330,000 Purchases 562,500 890,000 Freight-in 10,000 Net markups 30,000 1,250,000 Net markdowns (14,000) Goods available for sale 812,500 1,236,000 Cast-to-retail percentage Net sales (850,000) Estimated ending inventory at retail 386.000 Estimated ending inventory at cost
Panther, Inc. wishes to estimate its ending inventory using a retail method. Information for the year ended December 31, 2020 is as follows: Beginning Inventory (at cost) Beginning inventory (at retail) Purchases (at cost) Purchase Returns (at cost) Purchase Returns (at retail) REQUIRED: $ 20,000 $ 30,000 $110,000 $ 10,000 $ 15,000 Sales (net) Net Mark-Downs Freight-In Purchases (at retail) Net Mark-Ups $240,000 $ 15,000 $ 15,000 $ 230,000 $ 25,000 Assuming Panther wishes to use the LIFO retail method, calculate the estimated ending inventory at December 31, 2020.
Keller Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,100 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Inventory, Jan. 1, 2020 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost $38,100 (b) Ending inventory LIFO retail method 130,900 Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and…
On January 1, 2019, Lexor Company adopted the dollar-value-LIFO method of inventory costing. Lexor's ending inventory records appear as follows: Year Current cost Index 2019 $ 42,000 100 (1.00) 2020 58,000 110 (1.10) 2021 60,100 120 (1.20) 2022 68,200 130 (1.30) Compute the ending inventory for the years 2019, 2020, 2021, and 2022, using the dollar-value LIFO method. Round to the nearest dollar. Show all work. You can use the previous homework template that you used for
Sunland Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $1109000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date December 31, 2020 December 31, 2021 December 31, 2022 Inventory at Current Prices $1285000 1460000 1625000 Current Price Index 106 124 129 What is the cost of the ending inventory at December 31, 2021 under dollar-value LIFO?
Goddard Company has used the FIFO method of inventory valuation since it began operations in 2018. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2021. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2018 $45,100 2019 78,300 2020 83,400 $54,200 71,100 78,300 Required: 1. Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. 2. How much higher or lower would cost of goods sold be in the 2020 revised income statement? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, prepare the 2021 journal entry to adjust the accounts to reflect the average cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjustment…
Problem: On December 31, 2019, the ending inventory was overstated by P6,000. What is the adjusting entry at the end of 2019? What is the adjusting entry for 2020 if not adjusted during 2019? What are the accounts affected?
Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company’s interim income statements as originally reported under the LIFO method follow: 2019 2020 1stQ 2ndQ 3rdQ 4thQ 1stQ Sales $ 14,000 $ 16,000 $ 18,000 $ 20,000 $ 22,000 Cost of goods sold (LIFO) 4,400 5,400 6,200 7,400 8,900 Operating expenses 2,400 2,600 3,000 3,400 3,600 Income before income taxes $ 7,200 $ 8,000 $ 8,800 $ 9,200 $ 9,500 Income taxes (25%) 1,800 2,000 2,200 2,300 2,375 Net income $ 5,400 $ 6,000 $ 6,600 $ 6,900 $ 7,125 If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows: 2019 2020 1stQ 2ndQ 3rdQ 4thQ…
Richardson’s Flower Depot uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2020, the following information was obtained from the inventory records: 2018 2019 2020 Ending inventory, FIFO $78,650 $82,785 $93,678 Ending inventory, LIFO 68,500 75,640 84,675 Beginning inventory, FIFO 67,535 78,650 82,785 Beginning inventory, LIFO 74,565 68,500 75,640 Required: 1. Prepare the necessary entry to convert to LIFO at the end of 2020. 2. How much would Richardson’s cost of goods sold differ in 2020 if it used FIFO for external reporting?
Bonita Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 12/31/26 Cost $312,750 393,920 Date Net Realizable Value $286,430 371,370 (a) Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit