Bold Stapler Sales Company (BSS) began 2021 with cash of $80,000, inventory of $7,200 (400 staplers that cost $18 each), $2,000 of common stock, and $2,000 of retained earnings. The following events occurred in 2021. 1. BSS purchased additional inventory twice during 2021. The first purchase consisted of 1,600 staplers that cost $21 each, and the second consisted of 2,400 staplers that cost $25 each. The purchases were on account. 2. The company sold 4,220 staplers for cash at a selling price of $45 each. Required Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average. SHOW ALL WORK.

Bold Stapler Sales Company (BSS) began 2021 with cash of $80,000, inventory of $7,200 (400 staplers that cost $18 each), $2,000 of common stock, and $2,000 of retained earnings. The following events occurred in 2021. 1. BSS purchased additional inventory twice during 2021. The first purchase consisted of 1,600 staplers that cost $21 each, and the second consisted of 2,400 staplers that cost $25 each. The purchases were on account. 2. The company sold 4,220 staplers for cash at a selling price of $45 each. Required Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average. SHOW ALL WORK.

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

Collins corporation, operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2019 second-quarter report, the company reported Cost of Goods Sold of $7,900 million, ending inventory for the second quarter of $9,100 million, and ending inventory for the previous quarter of $9,100 million. Determine the amount of merchandise purchases for the second quarter. (Enter your answer in millions.) Merchandise Purchases million
Can you please give answer?
ABC Merchandising Corporation has beginning inventory at the start of 2018 of $ 679,000, duringthe year company purchased $999,000 of goods. Th inventory balance at the end of the year is$211,000.• What is the cost of goods sold for the year?
Krater and maper Corp. reported sales for 2018 of $45 million. Tater and Pepper listed $7.4 million of inventory on its balance sheet. Enter question How many days did Tater nd Pepper's inventory stay on the premises? (Use 365 days a year) Day's sales inventory How many times per year did Tater and Pepper's inventory turn over? Inventory turnover
Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $50,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $55,000 for $110,000 cash. May 10 Collected $20,000 cash on an account receivable. May 15 Paid $22,000 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 50,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $80,000 cash by signing a long-term secured note. May 29 Used the $ 180,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's (1) current ratio, (2)…
Excerpts from Stealth Company's December 31, 2021 and 2020, financial statements are presented below: 2021 2020 Accounts receivable $ 45,000 $ 42,000 Inventory 18,000 43,000 Net sales 193,000 188,000 Cost of goods sold 121,000 114,000 Total assets 435,000 417,000 Total stockholders' equity 247,000 227,000 Net income 38,000 36,000 Stealth Company's 2021 inventory turnover is:
Northwest Fur Company started 2024 with $102,000 of inventory on hand. During 2024, $520,000 in inventory was purchased on account with credit terms of 315/315 , n45/�45 . All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,100. Inventory with an invoice amount of $4,100 was returned for credit. Cost of goods sold for the year was $362,000. Northwest uses a perpetual inventory system. Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?
The following are selected ledger accounts of Spock Corporation at December 31, 2020. Cash $ 185,000 Salaries and wages expense (sales) $284,000 Inventory 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,275,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowances 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses 69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000 Insurance expense (office) 24,000 Miscellaneous office expenses 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Casualty loss (before tax) 70,000 Depreciation expense (office equipment) 48,000 Interest expense 176,000 Depreciation expense (sales equipment)…
On January 1, The Parts Store had a $370.000 Inventory at cost. During the first quarter of the year, It purchased $1,510,000 of merchandise, returned $19,100, and pald frelght charges on purchased merchandise totalling $33,600. During the past several years, the store's gross profit on sales has averaged 30%. Under the assumption the store had $1,920,000 of sales during the first quarter of the year, use the gross profit method to estimate its Inventory at the end of the first quarter. Ending inventory
Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was purchased on account with credit terms of 3/15, n/45. Purchases were all made f.o.b. shipping point. All discounts were taken. Cost of goods sold for the year was $366,000. Inventory with an invoice amount of $3,200 was returned for credit. Bevo Corp. paid freight charges of $9,300. Bevo Corp. uses a perpetual inventory system. Calculate the cost of goods available for sale, assuming Bevo Corp. uses the gross method to record purchases. a) 592,100 b) 592,196 c) 607,100 d) 606,700
Causwell Company began 2021 with 10,000 units of inventory on hand. The cost of each unit was $5.00. During 2021 an additional 30,000 units were purchased at a single unit cost, and 20,000 units remained on hand at the end of 2021 (20,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $115,000. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used. 2. Determine the cost of goods sold for 2021 using the LIFO method. (Do not round intermediate calculations.)
The Westmoreland Corporation uses a periodic system for its inventory. The company starts the current year with inventory costing $177,000. During the year, an additional $387,000 is paid for inventory purchases and $17,000 for transportation costs to get those items. A physical count at the end of the year finds $145,000 of ending inventory. How was each of these numbers derived? What is the company's cost of goods sold?